As a business owner, oftentimes it seems like you're putting money in plenty of other people's pockets, but not your own.
In the construction business, that's especially true as you constantly shell out big bucks, whether it's for supplies, equipment, interest on loans or credit cards and, especially, payroll.
With all the other juggling you have to do just to keep your job sites running, your office staffed and your customers and subcontractors happy, finding more ways to manage costs doesn't easily fit into your 24 hour day. Construction business owners deserve a little help, so here are four cost management tips:
Cloud-based services, which come with monthly fees and little up-front cost, allow you to schedule and dispatch employees with greater efficiency. Dispatchers will know where key employees are and ensure they are at the site where most needed, especially when you have multiple job sites to manage.
The software also allows you to integrate subcontractors into the mix so you can schedule them as needed or, if they are not available, work around their schedules to ensure your employees are kept busy rather than just waiting for that subcontractor to show up.
Your dispatchers will also be able to send messages via text, email or an internal messaging system so workers are kept up-to-date on where and when they need to be on the site.
Monitor Material Prices
The same technology that lets shoppers compare prices between online stores and big-box retailers can work to your advantage to monitor construction material prices, which you know are in constant flux.
Set up a system to receive push notifications from your suppliers when they have good prices on materials you use frequently. Also, when drafting bids you can check prices with all of your suppliers with a click of a mouse and lock in the best prices. Small savings on each job will add up to big savings through the course of a year.
Take the guesswork out of scheduling your jobs. Figuring out the delicate balance between paying your current construction staff overtime or hiring additional staff either requires a lot of pencil pushing or you just throw your hands up and make an educated guess. With modern software, you can run the parameters of the job and learn exactly which option provides you the lower cost.
Outsource Administrative Functions
Managing your human relations, payroll, benefits, safety and risk management, insurance and compliance doesn't have to involve a huge (and costly) HR department. Outsourcing these duties to a professional employment organization (PEO) brings an expert staff to your business for a fraction of the cost of having staff members deal with all of these functions. These experts also find ways to reduce your cost for such vital issues as insurance and bonding. The added bonus is that it frees up a great deal of your time to handle all the other important issues of running a successful construction business.
When you have experts handling all of these administrative and compliance functions, you also greatly reduce the risk of falling out of compliance and being hit with costly fines, which can flip your business from profitable to bankruptcy in a flash.
Harbor America brings all these resources and more to your construction business at a cost that will more than pay for itself each year. If you're ready to put more money into your pocket, contact us today for a free consultation on how you can save money and take a load of tasks off your shoulders.