Posts Tagged ‘small business contractors’
Thursday, August 20th, 2009
The final part of the BuilderScrap.com Draft Strategy for Sustainable Construction.
There were no consultation questions relating specifically to innovation, however, several comments were made by respondents regarding the Innovation chapter and these are summarised below:
1. The main points made on innovation were:
Support for R&D or Knowledge Transfer Some suggested that sustainable construction might not act as a direct driver for change within the industry since its economic benefits might be long-term or hidden. The industry was unlikely to fund research into sustainability or sustainable construction on its own; Government support and / or additional fiscal incentives for R&D might be needed. Some attached importance to the testing, demonstration and independent third party certification of new products or services. Greater certainty on funding streams for developers and end-users would assist product development.
Innovation Measurement The consultation document suggested using the BERR Community Innovation Survey to track a target of increasing the numbers of “innovation active” companies in the sector. Respondents felt that some work was needed to clarify “innovation active” in the context of the sector and develop challenging benchmarks and targets recognised and
accepted by the industry.
Learning from overseas Some respondents said the UK construction industry could benefit from greater awareness of overseas experience.
Regulation and standards Some suggested that Building Regulations should aim to be more outcome based and non-prescriptive to assist innovation.
Thanks for reading.
Tags: builderscrap.com, Construction, Environmental, recycled building materials, small business contractors, supply chain Posted in environment, industry, legislation | No Comments »
Thursday, June 4th, 2009
Finishing the BuilderScrap series on helping small business contractors, today we’re discussing marketing.
One reason it’s so hard for some contractors to say no is that they have no plan for generating business except to take whatever comes along. In other words, they don’t market their services. For companies that started in the 00′s, marketing may be a completely foreign concept. After all, the phones started ringing at the end of the 1991 recession, and, in most parts of the country, they only stopped ringing six months ago. Unless you actively do something to keep customers interested they will stop. Don’t take your reputation for granted. Even satisfied customers will forget about the wonderful job you did for them if you don’t keep in touch with them two or three times each year. It doesn’t take much — free maintenance check-ups in the spring and Autum, a card at the holidays, a phone call after a big storm to ask about damage — but you have to make the effort. Some business happens by itself, but it’s not always the right kind of business.
If you know what kind of work is most profitable for you, market to prospects who are most likely to hire you to do it. Begin with past clients, then ask for referrals. It won’t hurt to spend a little money on a brochure and postage for a mailing, or a spot at the local home show, or sponsorship of a football team. Spending 2% to 3% of total revenues on marketing will pay for itself many times over in new and repeat business.
Sage advice yet again!
Tags: builderscrap, Marketing, small business contractors Posted in Business Help, general, industry | 1 Comment »
Wednesday, June 3rd, 2009
The fourth post in our series on helping small business contractors, BuilderScrap makes a very quick but important point!
We understand that it’s almost impossible it today’s economic climate to turn down a contract. But sound accounting and estimating practices won’t save you if you’re taking on jobs that you shouldn’t be doing. Early on, it may make sense to take every job that comes along. But don’t be fooled into thinking that all projects are equally profitable and all customers worth working for. Nobody is good at everything. By comparing profit figures for different types of jobs — and then comparing job size — you’ll begin to see a pattern. Focus on the types of work and the project size that nets you the most profit. Remember, bigger isn’t always better — it’s the percentage you put in your pocket when it’s over that counts.
Focus on what you do well, encompass all the other aspects detailed in this series. Balance these factors to help with the decision making process.
Good Luck
Tags: builderscrap.com, small business contractors Posted in Business Help, general, industry | No Comments »
Thursday, May 28th, 2009
Legal guides that can help you explore subcontractor status. Here at BuilderScrap we love to help out or small independent contractors and we’ve found a resource that may help you decided if going independent is for you.
Two new handbooks by attorney Stephen Fishman, from the legal self-help publisher Nolo Press, explain the rules of independent contracting from both angles: Wage Slave No More is aimed at workers who want to become self-employed, while Hiring Independent Contractors helps employers stay legal in their dealings with self-employed contractors. Independent contractor status has advantages, but simplicity isn’t one of them. And whether you hire employees or subs, you have to deal with rules and a sea of paperwork. In fact, it’s this very complexity that makes these books worth reading.
It’s worth a look if you’re considering changing business status.
Tags: Independent Contractors, legal, small business contractors Posted in general, legislation | 1 Comment »
Monday, May 18th, 2009
Correcting your markup math won’t help you if you don’t know what your gross profit should be in the first place. The biggest errors occur when figuring overhead for labour. Contractors hiring employees for the first time often forget to add employment taxes to the base wage they use in estimates — that costs them about 8% right out of the gate. Forget insurance premiums, and it can cost you another 10%. Established companies avoid these elementary mistakes but often miscalculate what it costs to support holiday pay, sick pay and other benefits for “non-productive” time.
These costs should be built in to wage rates, but many contractors incorrectly base their calculations on the assumption that their employees work a full day every day all year long. The fact is that full-time employees are productive for between 1,750 and 1,850 hours per year. For another 150 to 250 hours, they’re getting paid for tasks you’re probably not charging for — Van runs for materials, setting up and breaking down tools and equipment at the start and end of each day, supervising subs, or just standing around trying to figure out what to do next. One way to ensure that your true labour costs are covered is to calculate the cost of all taxes and benefits for each employee.
Or you can use this shortcut: The rule of thumb is that employees in companies with insurance and Holiday benefits cost between 45% and 55% more than what you pay them. If that’s not what you’re charging for them — plus adding your markup on top — you’re losing thousands of pounds for each employee every year.
More help on the way soon!
Tags: Help, Labour Costs, small business contractors Posted in general, Uncategorized | No Comments »
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