If you’re a new construction firm then it can be difficult to make ends meet. You haven’t yet managed to build up a trusting clientele and therefore have to offer very competitive prices that don’t leave a whole lot of margin for profit. If you’re not careful then this can end up leaving you with very little money to continue your business, but thanks to these tips you’ll have lots more cash to play with:
Re-Hire Your Equipment
Funnily enough those lighting towers, welders and other heavy duty equipment that you paid out the nose for could be a goldmine! If you rehire lighting towers you can earn a hefty sum each week, which is ideal for when you aren’t planning on using them. Instead of having them sitting around and collecting dust, hire them out and earn yourself a pretty penny – do this successfully and they’ll pay for themselves and then some!
There are some companies out there that will list your details for free, helping you to generate more money without having to spend more to do so. If you have the equipment then make it work for you!
People are always looking for ways to save money – you’re hear after all – and often they will try to be a bit cheeky with others to save a couple quid. Don’t get taken in by your customers not paying, ask for half the payment up front and the other half on completion. Contracts are also important here, as without them you are essentially relying on the other person being a decent and sticking to your initial quotes. Another way of ensuring that you get paid well is to provide daily rates rather than a fixed quote that way if the project runs on for longer than expected, you won’t be the one out of pocket.
Cut Running Costs
This can be easier said than done, but lots of little things can add up together to make one big expense. Try to eliminate needless spending, like printing things that don’t need to be in physical copies, ensuring you’ve got the best lease deal on equipment and property and that your suppliers are giving you their best rates. When buying wholesale remember that 1p on a bulk order of 100,000 items will save you £1,000 each time – that’s a lot of money when you consider how much you order in on a daily basis!
People will pay through the nose for honest, professional advice and considering you own a construction firm that puts you in the hot seat! Go and give you opinion and advice on potential and existing projects and get paid for it. If you build up your name here then chances are more people will come to you for the actual construction, generating even more income. It really is a win, win situation.
There may be some more ways to generate extra revenue or save cash out there, but any of these listed above should help keep you out of the red. Just remember when rehiring your lighting towers or welders ensure they are insured so that if they are damaged or stolen you don’t lose out.