If you believe musicians, then “more money” almost always equals “more problems.” But, as your licensed California contractor business grows, does that always have to be the case… does earning more have to mean more headaches, too?
The answer all depends on the way you manage your company and take care of the details. To see what we mean, take the following seven pieces of tried-and-true advice:
1. Managing money is as important as managing your work. You can be one of the best contractors in the world, but if you can’t manage your business finances, you ultimately aren’t going to be very successful.
2. You don’t ever want to get behind on your taxes. IRS problems aren’t just a hassle, but an expensive one. Take care to ensure that you are up to date with your filings, quarterly taxes, and other details. Hire an accountant or attorney to help you keep things straight if necessary.
3. A strong business savings account is a big asset. Having some business savings can help you make it through lean times or afford important repairs, pieces of new equipment, or even additional employees when you need them most.
4. Learning to bid correctly is a money-management skill. One of the easiest ways to be more profitable and take better care of your money is by making a bit more on each project. For that to happen, you have to become skilled at bidding and estimating new construction projects.