For the most part, contractors set out on their own after learning a trade and skill. That means that they have sole responsibility for the running of their business, including the duties that will help protect them against financial ruin. This article isn’t just about protecting against the worst possibilities that you can face as a contractor, but also about seizing opportunities to grow. Read on to learn how to handle both sides of the stick so that you’re steadily growing while protecting all that you’ve built so far.
Coverage
When you first set out as a contractor, it’s imperative that you cover yourself with some form of insurance. Ordinarily, these should include insurance that covers your life and health and insurance that covers your business and its assets. The former insurance package is all about keeping you financially secure should you injure yourself at work, or should you find yourself unable to work for a prolonged period due to illness or injury.
The latter insurance – often rolled together into contractors insurance – is crucial for businesses that are slowly building assets and employees. It’s something that can give you peace of mind as well as coverage of all the important assets that help you keep your business running effectively over time. Make sure you’re updating this insurance after a new hire or a new purchase for your contracting business.
Market Share
Most contractors work on a local basis, either servicing the needs of a local neighborhood, town, district, or state. In these cases, workers will have a certain share of the market, and that’ll give them access to customers who give them jobs. The more they target their share of the market, the more likely they are to turn a higher profit and hire extra workers to help them tackle more jobs. The lower the market share, the more likely it is that you’ll miss out on important jobs.
The lesson here is to try to grow your market share, both in order to protect the market position that you currently have, and also to expand your reach and give you the chance to hire more people into your contracting business. Use marketing and referral bonuses as simple ways to expand your reach, visibility, and market share.
Personnel
When you begin growing your contracting business, you’ll look to build up a reputation within your area. You will be key to establishing that reputation but as you hire more people onto your team, you’ll find that their efforts will also affect your reputation. It’s because of this that hiring the best staff is so important when you’re running your own contracting firm.
In order to bring in the best personnel to help you further build your contracting business, you should ensure that you’re conducting thorough interviews that take into account an individual’s previous work history and the references they received from certain jobs. This is crucial if you’re to find workers you can trust to build on all of your good work to date.
These tips are important for businesses looking to protect their assets and build toward greater success in the future.
