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New Contractor Looking for advice...where's the profit hidden??
Hey all, I just shut down my crew for the winter up here in northern Canada (no one works in the winter up these parts unless a really huge project comes to town which is once in a blue moon) and as I look back over this last season I have to wonder where all my profit went or if it was even there at all! lol
This summer I did a lot of work for family and friends, my crew and I have built 2 new garages, did some decks, a bathroom reno and expansion and a couple of roofing jobs.
I was hired really based on my reputation as a hard worker and producing quality work. The guys that work for me were specifically asked to join me because of their same attitude towards producing quality work. All of our clients over this past summer have been extremely satisfied with our work. I didn't bid on the jobs i did as they were handed to me. I didnt do a contract price or anything, I just billed the clients for materials and labour.
I made sure to only work for people that I know have money or are known to pay their bills on time and everything went smoothly. This year was my "tester" as a first time contractor and I have learned a LOT.
Next year I plan on taking many more jobs as my reputation is starting off right and I aim to keep it that way, I am wondering where I should be charging my profits as I want my company to grow. I would like to buy a company truck, a trailer for all my tools, some new tools and more scaffolding. I want the company to make money and have some money sitting in the bank.
How do or how did the big outfits get to be that way? I have a good reputation and my guys and myself pride ourselves on our work, I dont want to be the most expensive guy in town but I want this company to grow in a going concern that can provide a good income for my employees. Seeing as I have chance to do this right from the start, I am looking for advice and some heads up for pitfalls that might common to someone starting out.
I appreciate and welcome any advice or suggestions that anyone might have! :)