For many workers in the construction industry, there will be a point in your career when you decide to make the switch from being an employee to a subcontractor.
If you’re looking for a change, becoming a subcontractor can help open the door to other types of projects or simply larger-scale projects that you aren’t typically able to land as an independent contractor. However, taking the best path right from the beginning is the best way to secure the lucrative job you want at the end of the day.
So, how do you position yourself to win quality projects consistently as a new subcontractor? Check out the four strategies below if you’re looking for strategic business practices to help you propel your subcontractor career forward.
1. Develop a business structure
Whether you are a sole proprietor or own an entire firm, you can consider developing or assessing your business structure. Especially as an independent contractor, this is often forgotten, but it is a necessary step. You can easily lose control without developing a structure. However, with some orders in place, you can ease business operations and generate profit for your business down the line. Therefore, each branch of your business must be accounted for.
To ensure that operations are managed properly, delegate employees to execute tasks in specific departments. Consider hiring fresh talent to bring new perspectives to your company and motivate your team. Work together to improve sales efficiencies and generate more leads through digital and local marketing campaigns.
2. Create a robust financial plan
As a newcomer to the industry, can create an in-depth and effective budget plan in order to stay afloat amongst the competition. It is essential to look at some key aspects of running a business in order to create a holistic financial plan. Being well-versed in potential overhead costs, fixed and variable expenses, and market fluctuations can help you plan ahead and make the best strategic decisions for your career.
One specific financial step to consider is an alternative way to finance materials. Because of the long payment cycles common to the construction industry, paying for materials upfront can be difficult, especially for newer contractors. To give yourself more flexibility and the space to bid on larger projects, you can try a Project Financing option like IFCA’s ContractX. It is a project cost control solution for construction. ContractX makes it easy to estimate labor, equipment, and material costs for project managers and project control officers to ensure that projects do not exceed the budget.
With a well-thought-out plan, you can set yourself up for more financial freedom, which ultimately equates to more opportunities in the future.
3. Adopt technology
Technology can certainly help improve processes within your company and save you time and money. One type of software that can boost efficiencies is the subcontractor bidding solution. The software is conveniently cloud-based and can be beneficial for your business in many ways. Subcontractor bidding software allows you to stay ahead of the competition by helping you make more bids in less time. Other benefits include an opportunity for consistent work, better team alignment, and improved communication.
In addition, you can help further improve efficiencies and organization through a site management solution. Leveraging a site management solution can help streamline a variety of processes such as daily reports, time, and production tracking. This tool can help you prevent communication silos by keeping all of your important documents, details, and correspondences integrated. Whatever your specialty, being proficient in the latest platforms can help you gain more time and ultimately more bids.
4. Join a contracting network
Finding success within the contracting community is often about who you know. For a start-up subcontractor, it’s critical to expand your network quickly to provide you with greater opportunities in the future. Joining a contracting network is a great way to broaden your skill sets. Take advantage of your community network by paying close attention to what fellow professional subcontractors are up to. Keep up with their most recent tips, techniques, and best practices that you can use in your own firm.
You may be surprised by how many great resources are already surrounding you and are at your disposal. The community can help you improve your ability to make more accurate pricing decisions, locating the best general contractors, and discover tools that will help you succeed.
Starting an independent contractor or subcontractor firm is no easy task. Thankfully, however, with a commitment to quality work, a developed business structure, a strong financial plan, appropriate technology usage, and industry connections, you can avoid many pitfalls.
Whether you own an entire firm or an individual subcontractor, your process can benefit from the integration of cloud-based construction solution. Your project management, costs, and communication can all be dramatically improved by using a reputable construction project management software. Don’t be left behind the rest of the industry. See what an AI-powered construction solution like ContractX can do for you. Visit our website to learn how our AI-powered ContractX can help you position yourself to take on consistent and high-paying projects despite being a start-up subcontractor.
Resources and Further Reading
How to Run a Successful Self-Employed Contracting Business