The early days of any business can be financially rough. You’re trying to make your initial profit not just so you can get paid, but so that you can keep the lights on once your initial funding runs out. If you’re running a construction company, you might want to pay attention to some of these cost-saving tips.
Work with Big Teams
This one is a little counter-intuitive, but it does work. Most new construction firms have smaller teams because they’re looking to pay fewer people per job. If you work with a bigger team, though, you’ll have your crew working for fewer hours and thus pay less over the life of the job. This also has the benefit of getting you access to bonuses for finishing ahead of schedule and helps you to get a great reputation among the laborers and tradespeople with whom you’ll need to work on bigger projects.
Use Recycled Materials
Recycled materials can be a great alternative to buying new. These materials are still in great shape, but they simply didn’t get used by the crews who sold them off. While you absolutely should never use sub-par or ‘cheap’ materials, saving some money by using recycled materials is both environmentally friendly and a great way to save a fair bit of money on your next project.
Those recycled materials had to come from somewhere, and it’s fairly easy to become a provider as well as a user. Sell off your scrap after your jobs so that it can get recycled and you can get reimbursed. It’s a great idea to make sure you scrap custom pieces that you don’t end up using, as you’ll rarely be able to use them for future projects and you can get back at least a bit of what you spent on the pieces.
Rent, Don’t Buy
A major mistake made by new construction business owners is sinking too much money into buying equipment. Instead of buying, why not consider equipment rental as an alternative? Renting will save you money upfront and will stop you from getting stuck with equipment that is outdated or that you’ll rarely use. If you feel like you are repeatedly renting the same equipment, you can always buy it once you know that it’s going to see regular use.
It’s entirely possible to cut your costs and still be an efficient and effective construction business owner. Be smart with how you use your time and your materials, consider equipment rental, and don’t be afraid to sell off what you don’t need. If you can make the best use of your capital and labor, you’ll get off to a very strong start.