5 Helpful Ways to Grow and Manage Your Construction Business Part 1
Construction business owners must delicately sidestep many obstacles in order to successfully grow and maintain their business. Whether it’s the rising price of materials, a labor shortage problem, or keeping pace with an ever-increasing demand for new homes, contractors need to consider how they can successfully take on more and more projects while also being mindful of their cash flow.
In this two-part article, the South FL contractor lawyers at Cotney Construction Law will discuss five challenges contractors face while growing their businesses and how they can manage these issues. In this section, we will discuss expansion issues and building professional relationships. In the next section, we will cover several financial issues when growing your business. Remember, for any of your construction project legal needs, an experienced and knowledgeable South FL contractor lawyer is only a phone call away.
Knowing Your Challenges
If you’ve established a successful operation in one location, but you feel it’s time to expand your opportunities in another location, this is a big decision for your company. When you start up your business in a new market, there will be many challenges including:
- Expenses: When investing in a new location, you’re significantly increasing your overhead. This means paying more in rent, buying or leasing more equipment, and making more purchasing orders for materials, equipment, and tools. Moreover, you will need to spend more money marketing your company and investing in staff and administrative positions.
- Quality control: As you produce more, the quality of your typically outstanding work can be compromised. As your business grows, you must delegate more tasks, which means spending less time focusing on the quality of the craftsmanship and more time thinking over business management decisions.
- Other factors: It takes a great deal of time to expand your business. With extra work, the extra revenue generated may not be worth the effort. Another issue is venturing into a region you are not familiar with.
As you enter a new market, you must establish key relationships with local vendors. The first step in this time-consuming process is showcasing that you are a credible and reliable professional that local vendors should be excited to work with. It’s best to partner with a trusted professional that understands the local construction market and can offer you valuable advice that is also in compliance with federal, state, and local laws. At Cotney Construction Law, we have represented hundreds of contractors across the United States. As a nationally recognized law firm, we are knowledgeable and experienced in practice areas that assist our construction clientele with growing and maintaining their business.
If you would like to speak with one of our South FL contractor lawyers, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.