As Construction Recovers, Look at Business Operation Tools

The construction industry that drives so much of the contracting business is steadily gaining throughout the nation. U.S. News & World Report reports that new home construction grew almost 22 percent in 2014. Moreover, builders themselves are optimistic, according to the National Association of Home Builders, which reports its members have seen an increase in "serious buyers."
This is great news for the contracting business. But with the recovery still a bit fragile and lenders reluctant to release loans, smart contractors need to be able to respond to work requests quickly. This means working smarter, including the work that runs the business. Luckily, there are tools that can let them focus on their craft and leave the business end in responsible hands, too.
Outsource Complex Financial Tasks
Lots of small businesses, including many contractors, outsource accounting services like payroll and tax preparation. This is a smart move; tools like QuickBooks and NetSuite are constantly improving their services and lowering their costs. Even better, they are hosted online—in the cloud—so they can be accessed from any secure Internet site, reports Forbes. Online accounting services are very good choices for new firms and small ones that do not have a large enough accounting infrastructure to handle all functions and future growth. They're also heavily focused on security and maintaining backups of their own clients' data.
What about revenue management? This is not part of standard accounting services like QuickBooks. But managing your revenue is how your company stays afloat and can perform tasks like payroll and paying your own suppliers.
Customer management firms like Chargify have filled this important gap, providing clients from businesses of all sizes with online, cloud-based services that include:
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Accepting payments from several sources, including ACE, eChecks, PayPal, and credit cards.
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Issuing refunds.
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Emails to customers that handle electronic invoices and receipts, payment reminders, and upcoming credit card expiration dates.
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Coupons and discount redemption.
Best of all, these online services guarantee their accuracy and post solid customer ratings.
Go Online for Business and Legal Filings

Most contractors are small businesses but still have to file the same paperwork as the big guys. Unlike the big guys, they don't have in house attorneys and generally don't have time to run downtown to talk to a lawyer about filing for a business license or how to get a federal EIN.
Online legal services can help with the routine legal issues that don't involve the courts. Services like Legal Zoom and RocketLawyer provide small business owners with information and assistance that can help them understand how to address common legal topics that often arise in the course of business, such as:
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Whether to file as an LLC, partnership, or S-corporation.
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Steps to take to ensure corporate compliance.
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Debt collection advice.
Subscribers also get access to common legal forms like employment contracts, cease-and-desist templates, and nondisclosure agreements. On call lawyers are available to answer general questions around the clock.
Go Online for Office Software
Perhaps the biggest online industry is office products like word processing and spreadsheets.
Small businesses used to shell out a lot of money for office software and then spend more on antivirus software, backup systems, and of course upgrades. They don't have to do this anymore with online services from well-known companies like Google and Microsoft.
To get Google's free online office products, just open a free Google account which includes the famous Gmail email service and more free services:
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Online drive that stores virtually any kind of document uploaded to it.
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Word processing.
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Spreadsheet.
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Presentation slide.
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Forms.
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Drawing tool.
If you or your office staff can't live without Microsoft Office, the online Office 365 delivers the full suite of Microsoft products, including online meeting services, upgrades, and security. Prices start at $12.50/month.

Guest Blogger: Ruth Ann Monti is the founder of TimeStorm Communications, which provides original content, copywriting, social media and marketing services for entrepreneurs and small business. She lives with her son and two dogs in sunny Scottsdale, AZ.



Many contractors hire for today. By that I mean they hire the help they think they need for the projects they have on the books and the current size of the business. If you plan to grow your business these employees may not have the skills or desire to grow with the business. If you think about how much you want to grow, the organizational charts you will need at different stages of growth, and the job descriptions for each position on the organizational charts, you can make better hiring decisions. And, long term, you will have less employee turnover and therefore lower training related expenses over time as well.
Being the” Jack of All Trades” to everyone who calls your business may work for a self employed handyman or carpenter, but that’s not a good strategy if you want to be a construction business owner with a growing business. Deciding your niches can help you streamline and personalize your business systems so they serve both your business as well as your customers in a consistent and reliable way. For example becoming a Design/Builder may limit who will do business with you, but on the other hand making a commitment to that business delivery method you can develop a marketing and sales process that generates the qualified leads and sales you need and will help your business become known as a Design/Build expert in your desired target market area. My own experience made it obvious to me that consumers are willing to pay more for experts than they typically will pay for a “Jack of all Trades”.
Successfully growing a residential construction business is not easy and takes time. If you go it alone you will likely attend many sessions at the “Lumberyard School of Hard Knocks”. That educational institution can be expensive, frustrating and may require you scrap a lot of what you have done in your business because it will no longer work well enough as you grow the business. With the right professional help and guidance you can reduce the overall long term cost of your path to success and you can get there much faster. Considering the principle of compounded interest, the more profit dollars you earn and keep each year along your path, the bigger your nest egg can be when you are finally ready to exit your business. 
For large ticket, complex projects face to face presentations are generally preferred simply due to the scope of the project. But if I have done my job correctly up to the point of presentation, I should already have the job. I should have already established whether they can afford the project and if they have selected my company. The bid is just a formality. Price is WAY at the bottom of issues, as is the method of delivery. For most projects, we would have already met multiple times up to the point of presentation and that’s where I do my selling. Whether I email the quote or hand deliver it is immaterial in my experience of selling projects for over 15 years. I personally prefer a face to face meeting, but have found it unnecessary in most instances and base that decision on the customer and their personality. I have never been the cheapest bidder and tell people up front that I never intend to be. Yet my closing rate/ratio remains extremely high.
I find that our current speed of living in general is much faster than in the past and people get irritated with too many required face to face meetings. They most often prefer the email method so they can make a decision at 10pm after work is done, the kids are asleep and they can focus. Am I serving them or are they serving me? I always ask what their preferred form of communication is and then I respect that. If I have established myself as the contractor of choice, reflected in our discussions (phone or otherwise) that I have accurately heard them and understand their needs/wants, established a comfortable budget, and minded the details, why waste their time and mine with an unneeded additional meeting? Let’s do this!
If like Milt you disagree with something I post at my blog please feel free to let me know. Milt did a great job explaining his viewpoint in a respectful and thoughtful way. I must admit I agree with his approach as well. When Milt emails his proposal he is doing so to confirm in writing the agreement he has already made with his prospect who has agreed to become a customer. Milt is certainly not an order taker, but rather a great example for other contractors seeking to improve their sales abilities and results. 
It would appear that in the original interview ProSales had with Lowes about the story the fact that Lowes was selling 2x4’s that did not meet the standard accepted size of 1 ½” x 3 ½” was a detail left out of the interview. I say this with a high level of confidence because I find ProSales to be consistently accurate and the magazine editor, Craig Webb, does a great job vetting the information being published.
The concern I am expressing is if these rules apply to retailers will they also apply to contractors? If they do, or eventually will, contractors in California and the rest of the country may also run into challenges not only with the government, but also with their customers. Perhaps trade associations such as NAHB and NARI should proactively seek out the answer to this question to help guide and protect their members and the rest of the construction industry. The RRP Rule came about because our industry didn’t proactively deal with the hazards of lead during construction on its own before the government stepped in and dictated regulations many do not agree with. 
It would appear to anyone who knows and understands how lumber is graded and sold that the state of California is looking for ways to fine legitimate businesses, even if those businesses are conducting business using traditional and industry accepted methods and terminology.
Will you have to describe the actual dimensions of every framing product you specify in your next proposal, including the actual thickness of sheet goods?





Another opportunity to differentiate yourself, your business and your solution and become a trusted advisor.
If you are having challenges selling jobs and or getting the price you need to earn a good living and 
To help your work stand out from other contractors don’t settle for the same old same old when it comes to designing driveways for your clients. You can mix and match materials like asphalt and brick border, or broken concrete and gravel. Instead of a straight path from the street to the garage, consider a rolling driveway layout to add some sensuous curved lines to the property.
Guest Blogger: Heidi Cardenas is a freelance writer with a background in human resources, business administration, technical writing and corporate communications. She specializes in human resources, business and personal finance, small business advice and home improvement.

For many home owners choosing the right contractor to work with is just as important as the quality of the workmanship. Consumers who have already done remodeling and had a bad experience with a contractor are great candidates for this tactic. The purpose of the tactic is to get them talking about what happened last time, how it affected them, and how they will feel if the same thing happens again. With this prospect first ask something like: “Is there a reason you aren’t working with the contractor who did your…?” If this reveals you are on the right track says something like “Why haven’t you already hired one of the other contractors you have met with so far.” Then, depending on their answer and the context, consider saying something like: “Were you hoping I could do something different than the other guys?” Now, at least with this prospect, you’re back in sales mode! Move to tactic #3.

Why not write job descriptions before you seek to hire!
I hope you can see by my examples offered above that if you don’t define what you want in advance you may not get what you really need. If fact, hiring the wrong person can cost you a lot of money due to wasted time and lost opportunities while you seek out and onboard a replacement candidate. 





