Is Your Contracting Business Wasting Money?

When you run a contracting business, you work hard to earn money. But you might also be wasting it, as well. Sloppy business practices can cost you more than you know, including the future success of your company. Here are a few things to watch for, and how you can avoid them.

Avoid Wasting Time
As a small business, one of your biggest expenses is labor. The longer it takes for you to complete a task, the more money you spend on it. You can’t rush quality, but there are probably plenty of things you do throughout the day that waste time unnecessarily. Evaluate your practices at least every year or two, and do research into new innovations and concepts that may make you more efficient. You might be surprised how much time you save by making a few slight changes. The best part is that you might be able to get work done more quickly without compromising quality, which allows you to take more projects.

Be Wise About Purchases
When you start a business, it is really easy to break your budget by investing in a comprehensive line of equipment and supplies. There are a few things that you will need to have for your business, but that list is probably nowhere near as long as it could be. Before you start shopping, ask yourself these questions:

  • Do I need it for my business the way it is right now?
  • Will I use this all the time?
  • Are there ways to get this purchase for less?

Sometimes, there’s no alternative to paying full retail price. In many cases, you may discover that there are opportunities to rent equipment you don’t use frequently, buy equipment used or refurbished, or delay purchases until you really need them.

Pay for Quality
As with a lot of things in life, quality tends to cost more. When you are thinking about things that you need to buy or pay for, make quality an important factor in your decision. Buying low-quality equipment and materials may cost less, but they could also give you a low-quality result. When it matters, be ready to invest in something that will last longer and work better. And do your research so that you know the difference between a fair price for a quality item and an unreasonable markup on something cheap.

Minimize Material Waste
The construction industry produces a massive amount of waste. If you learn how to cut down on the waste you produce for your contracting business, you may save money at the same time. You can minimize waste by:

Keeping track of all of your purchases, so you know what you have spent

Maintaining an inventory of your supplies, so you don’t overbuy

Making plans to use excess materials instead of disposing of them

Be prepared to try out different strategies and see which ones work best.

Evaluate Business Strategies
For your business, you will probably employ a variety of strategies. For example, you may invest money into various marketing opportunities so that potential clients are aware of your business. Although it is common to outsource services like these, it’s important to pay attention to the return that they provide for you. If your marketing strategy isn’t getting you new customers, you may need to change it. Changing your strategies on occasion lets you experiment to learn what works and helps you avoid spending too much money on strategies that don’t work.

Earning money is one of the most important things that you do for your contracting business, but avoiding wasting money is also crucial. To learn more about starting your construction career, visit CSLS today!

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About CSLS

Contractors State License Service (CSLS) is the largest school in California devoted to the Construction professional. For over 23 years, CSLS has helped its students pass the exam to become licensed contractors in the State of California, licensing more students than any other school. From our main offices in Southern California, CSLS operates over 25 locations with full-service support and classrooms. We have grown to this extent by providing quality, professional services. In comparison, this provides 7 times the number of convenient locations than the second largest contractor school. Contractors State License Services is one of the only contractor schools in the state that is run by educators, not lawyers or people mostly interested in the bonding and insurance business. Contractors State License Services formerly operated under the oversight of the State of California's Bureau for Private Post Secondary and Vocational Education. As of January 1 2010, the new Bureau for Private Postsecondary Education (BPPE) came into existence replacing the BPPVE. CSLS now operates under the provisions of the California Private Postsecondary Education Act of 2009 (CPPEA), Article 4 Section 94874(f). Our Mission is simple; We can help you pass your California Contractors License Exam. Celebrating our 25th year, CSLS has helped over 120,000 students pass the California contractor licensing exam to become licensed contractors in the State of California. Additionally, we offer complete home study and online contractor’s license programs to help you pass your California contractors license exam. CSLS offers licensing classes for all types of contractor licenses, including General Engineering Contractor, General Building Contractor, Specialty Contractor, Insulation and Acoustical Contractor, Framing and Rough Carpentry Contractor, Cabinet, Millwork and Finish Carpentry Contractor, Concrete Contractor, Drywall Contractor, Electrical Contractor, Elevator Contractor, Landscaping Contractor, Warm-Air Heating, Ventilating and Air-Conditioning Contractor, and many others. For a complete list of contractor licenses, visit and tuned for more informative posts.