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Contracting and construction are all about planning. From the initial idea to the completion of a job, contractors who are meticulous about planning and adhering to sound business practices are the ones who will come out on top.
We asked fourth-generation masonry expert Matt DiBara, CEO of DiBara Masonry and The Contract Consultants, about the top five key business tips that he would pass along to contractors who work in a heavily competitive and frequently volatile industry landscape.
Understand your industry
Regardless of whether one is an old pro or just getting their feet wet in the industry, an understanding of one’s industry as it currently stands is imperative to success. The construction industry fluctuates wildly with the economy, natural disasters, or even with incidents that may seem to have no bearing on the building trades — such as the pandemic.
According to DiBara, having a finger on the pulse of the industry’s shifts will help one plan, budget, hire, and scale. “There are workshops and courses available to give contractors a ‘crash course’ in the ins and outs of the industry,” he explains, “and other sources of continuing education available that focus specifically on elements such as hiring, marketing, and budgeting. The important factor to keep in mind for all contractors, regardless of their experience, is that they should always be open to learning more.”
Collaboration, not Competition
In the days of old, competition is what spurred contractors to build their businesses bigger, better, and faster than the other guy. These days, however, contractors are likely to see a better return by collaborating with others in the industry.
Contractors can learn best practices from mentors who may very well be their competition in a hot and heavy industry. “By fostering a collaborative environment, the entire industry can be elevated overall,” DiBara says. “If competitors are in a large metro area together, having a more collaborative mindset can even serve to transform areas into places more people want to live, work, and play.”
Pay close attention to your hiring process
There have been times in contracting when just about anyone could get hired onto a contracting crew. The thought process was that more warm bodies would get projects completed faster, but modern contractors are realizing that a more thoughtful hiring process saves them time, money, and frustration in the long run.
As DiBara explains, business owners cannot rely on the old ways of working to attract new talent. “We are currently experiencing a very employee-favored working environment, where talented construction workers have their pick of jobs and can negotiate for better pay and better conditions,” he says. “Leaders in the industry need to redefine their job descriptions to fit this new type of worker and reevaluate pay and benefits to match what workers currently demand.”
Indeed, contractors need to view building a team as an ongoing process that is constantly in flux as they learn more about the current industry landscape.
Remain ethical
It should go without saying, but ethics in business should be a top priority. Contractors can often get a bad reputation, whether warranted or not, for being scammy, unscrupulous, or unreliable. Many “jack of all trades” types have hung out their shingle for contracting work only to produce a shoddy result that gives everyone in the industry a bad name.
“By staying loyal to a code of ethics and producing quality work at a fair price, contractors can combat this negative stereotype,” DiBara says. “This mindset is especially important in areas where there are many contractors competing for work. Having an ethical stance on the work you produce and customer service will set your business above the fray.”
Don’t neglect your marketing
With contractors being consistently busy, it may seem unnecessary to have a marketing plan, but we are currently living in an era of social media dominance. “Having no social media marketing presence can spell certain doom for a business competing against one with a social media-savvy generation behind the wheel,” DiBara notes. “You cannot expect to scale a business without some level of marketing.” By researching and learning to use websites, paid ads, social media marketing, and word of mouth, new businesses can get their names out there and start reaping the benefits.
Whether just getting started or looking to have a new outlook on a long-established business, by heeding these five tips, contractors can breathe new life into a business that has grown stagnant or begin to build an empire that could — like DiBara’s — last for generations.
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This content is brought to you by Scott Bartnick
Photo provided by the author.