It is no secret that many contractors fail in their small businesses because of their lack of experience.  There is great value in experience as it teaches people how to do things, just as education does, but what experience does better is that it gives owners an actual reaction that remains with them through their journey of owning a business.

Failure in business can happen to the best of us, but you can escape the potential pitfalls of business by avoiding the 5 mistakes contractors make in their business….

1. They Don’t Know Their Numbers

Your numbers, or financials, are vital to understanding the well-being of your business because from there you have the power to adjust and control the actions you need to take to keep growing. Some key areas to focus on are cashflow, profitability and expenses.

2. They don’t understand that Saving a Wage will Cost a Fortune

Many contractors go into business hoping to create freedom from a regular job, but once they start their business they treat it as just another job.  This results in them working too many hours, don’t get the time to build their business, which ultimately stunts the growth of their business.

Too many times owners think about how much it will cost to pay an employee ,but instead you should determine how much more money you could make with assistance. 

3. They Hire the Wrong Team

Every contractor needs to have the best possible team to keep their business moving forward.  They are the first contact with your customers, and they are your brand ambassadors in the community.  Create a hiring process that has been tested and proven to give results

4. They Forget What Business They Are Really In

All businesses are in the customer acquisition and customer service business, irrespective of what industry they are in.  Too many business owners lose sight of this fact.  Your business will only thrive through marketing smarts that focuses on customer relationships.  Do not make the mistake of just focusing on marketing campaigns that are price driven because you will end up getting only “discount” customers.  You want to attract customers that see value in what you sell, and are willing to pay for that value. 

5. They Don’t Use Targeted Marketing

Do not make the mistake of selling to everyone, because that is an impossible task!  Choose a niche market, and only create marketing for your ideal customers. Once you have chosen your target market make sure you create a few campaigns, so that you can test and measure.  A failure to locate a niche, and market to that niche, is a major reason why many small businesses fail.

Take the time to follow the steps outlined in the article because you will see better results in your business!

Cheers to your Success!