Are you working harder for less money?
A common complaint from many contractors is being forced to drop their margins in order to get work from owners who suffer with the low bid mentality.
The result in for the contractor is working harder but being personally grossly underpaid for their efforts and risk.
This raises the valid question; is being the low bidder worth it?
In my forty years as a contractor, one thing, I did learn is this. The only way to be successful as the low bidder is to have complete control and understanding of your financials. And here lies the problem for many owners of small construction businesses.
Too many contractors either judge their financial progress by their checkbook balances, or by their gut feeling. Both methods are the formula for a perfect storm.
As a business coach for contractors, I find in my contractors coaching, many small contractors (those doing under $10 million or more), are operating with bad numbers, poor pricing models and insufficient markup.
I also find in the contractors coaching process that they fail to understand what selling their value really means, and the hidden gold mine of targeting their best type of customers.
Without these two, elements understood perfectly. Marketing and selling suffer dramatically. Costs rise, and profits decline.
The good news is this.
All the above syndromes can be rectified with coaching and guidance. I've worked with some positive contractors who are willing to take the time and put forth the effort to gain control over their businesses, and increase their worth.
In the meantime, if you're working harder, and earning less, maybe it is time you consider getting help and discovering how you can take control over your business. Why? Because no one needs to work for nothing, especially when you own the business!