As a trade contractor, it’s challenging to secure contracts. You can be a plumber, an electrician, a carpenter, an HVAC specialist, or even a general contractor. But it’s not about how many jobs you can take at a time. It is about creating a sustainable business venture that can tackle any changes in the market and set you apart from the competition.
Seven important tips will be stated below that are based on real-world practical strategies with case studies and examples. It will be a useful guide for trade contractors who want to scale their trade business for a profitable venture.
[divi_library_layout id=”16468″]
1. Strategize and document your specialization
Trying to scale your contractor business without a clear-cut plan is like building a house without any blueprints. Make it methodical by:
- Documenting every strategy by noting down the current needs of the market and the consumer base
- Focusing solely on the niche of work you provide
- Creating actionable plans that work
- Being an authority in the field
- Creating a growth strategy with market analysis, resource allocation, competitive analysis, and KPI (Key Performance Indicator)
It’s important to note that all of the abovementioned points need to be reviewed from time to time to make room for improvements. This makes the process adaptable to change.
Example: An electrician who was able to document their specialization made considerable progress in getting leads and contracts. By ensuring their expertise in the field with well-defined work ethics, credibility was built.
2. Implement technology and automation
To counter human-based error, labour shortages, security risks, operational inefficiencies, and budget overruns. Using technology reduces time, increases worker safety, increases accuracy, and lessens workload. Adopt technological solutions like :
- Job management/ field management software (FSM) that helps you out with assigning jobs to the technicians and looks after the status of a job from start to completion
- CRM (Customer Relationship Management) that stores customer-based information and tracks orders from service agreements
- An inventory management system that tracks materials and provides workers with whatever resources they might require
- Using mobile apps to provide user convenience for availing services with a single click
3. Build A Strong Team
Having a team full of skilled professionals who are certified and know their trade very well is an important asset to have. It ensures quality services and customer satisfaction. Here are a few tips on how you can build one too:
- Provide training and workshops with industry-certified, experienced individuals
- Keep them updated with the latest developments in technology by providing them with demos and brochures
- Upskill them by giving them practical on-field work that requires expertise and problem-solving skills
- Recruit qualified people who are fit for the job
- Retain them by constantly offering them job proposals through trusted contracts
Example: An HVAC business that trained their workers for a leadership training programmer enabled them to run a group of contractors for faster and efficient installation times.
4. Prioritize Marketing To Boost Brand Visibility
To scale means to spread the word. Don’t rely on traditional methods like word of mouth or contact sharing to get contracts. Effective marketing builds a brand and attracts long-term projects that are sustainable in the long run. To boost brand visibility, keep in mind the following points:
- Create a customer and mobile-friendly website that is easy to read and convenient for users.
- Leverage the use of local SEO by claiming your Google Business Profile so that your reviews appear to people.
- Make maximum use of social media to share posts, customer satisfaction feedback, reviews, project photos, and educational content
- Use Paid Advertising to promote your brand with the help of Google Ads
- Offer Referral Programs that allow old customers to get attractive deals and discounts by referring new and potential customers
Example: A carpentry business was able to get 40% of the deals and contracts from the market by just investing in SEO. This led to a large number of inquiries and requests.
5. Track finances and key metrics
By measuring every aspect of your contractor business, you can get an idea of what’s wrong and what’s right. This involves tracking finances and other key metrics that affect your business, negatively or positively. Here are some points to gain a better understanding of it :
- Monitor gross margin to track revenue on direct jobs
- Analyze conversion rates to see which leads got converted into proper jobs
- Do customer retention tactics to repeat services and maintenance
- Forecast the market with the help of experts to understand prospects
- Hold meetings for financial settlements and reviewing actual vs projected costs
Example: A roofing contractor who zeroed in on service repairs and maintenance saw that minor installation errors were leading to recurring costs from the current customer base. By just focusing on installation time and quality, profits increased by up to 20%
6. Branch out by collaborating with related businesses
It is important to diversify in this market as it protects from markets that are downtrending. Hence, new sources of income open up. Adopt the following strategies :
- Form partnerships with businesses that complement your business; for example, electricians can collaborate with HVAC contractors
- Expand in areas that need services like yours
- Network effectively by joining trade associations, participating in trade expos, and building relationships with builders, contractors, and suppliers.
- Offer new services that roll out additional new features, AMC (Annual Maintenance Contracts), and energy efficiency installations
Example: Plumbers that formed partnerships with local sanitary stores and bathroom fitting showrooms saw an increase in contracts
7. Improvise, Adapt, Overcome
Staying ahead of the competition requires not only foresight. But it also needs to have a learning curve. This includes learning from your mistakes and gaining insight into what top-ranked competitors do. Here are certain points you can integrate for scaling your trade business:
- Understand the basics from the top to the bottom, so that you can tweak the rules
- Stay updated with the latest developments in the trade
- Create a performance tracker for measuring growth
- Diversify your trade by catering to different businesses, not only in domestic areas
Example: HVAC contractors that positioned themselves as a franchise for electrical items and created a collaboration with different brands allowed them to create a sustainable business model
Key Takeaways
Integrating these seven growth tips, you can now comfortably upscale your trade business. Most successful trade contractors roughly rely on these points and make necessary adjustments to scale according to requirements. However, you can get more out of this if you follow Trade MasterMind UK’s comprehensive 12-point strategy to increase revenue and convert it into a profitable trade business!
