Having spent over 15 years in the construction industry, I have seen many contractors come and go over the years. Some appeared out of nowhere to grow some impressive businesses. Others again made an impressive splash and then literally disappeared overnight leaving very few traces
I have been trying to distil the key reasons why contractors go out of business. These are the key reasons that I have identified
1) They don’t know their numbers
Contractors may be very good at their craft and putting together complex projects but they severely lack good book-keeping skills. They forget to track ever single expense to understand if they actually made a profit on their project. Even worse many contractors forget to calculate overheads when pricing projects.
If you want to build any sort of serious contracting business you will have significant overheads. Whether this is the administrative staff required to operate the business and man the phones, or the upkeep of your...