The full impact of the Covid-19 pandemic on the construction industry might not yet be clear. What is clear is that many construction projects have come to a standstill. However, it’s important to stay positive during the shutdown. Use this time to reflect and gain perspective on your contractor business. Focus on what you can do for your business to improve its chances of success, post Covid-19.
In this article, we will look at 4 business tips for contractors to help you stay proactive!
4 Business Tips for Contractors
Conduct a SWOT Analysis
Understanding what your business is capable of is a stepping-stone towards growth. Make a list of your company’s strengths, weaknesses, opportunities and threats. A thorough breakdown of your business operations allows you to:
- Identify the strengths and capitalize on them
- Identify your weaknesses and come up with improvement measures
- Identify opportunities within your industry
- Identify threats to your business
- Set objectives and plan.
Make strategic partnerships
According to The Economist, the global economy is likely to contract by 2.2% due to the Covid-19 pandemic. With many companies currently out of business, cash flows may be constrained in the future. A construction company can limit its scale of operation to limit its expenses for a couple of months.
Identify businesses that are complementary to yours. Propose opportunities for working together. It’s often said that we are better together than alone. What better way to get through this than together?
Identify diversification opportunities to beat the Covid-19 pandemic
Businesses can grow as a result of diversifying. Have an in-depth look at the diversification opportunities within your niche. Remember that the economy may recover slowly. What your business needs are multiple streams of income. For example, you could start a side business that sells construction equipment or material.
To determine what step to take ask yourself the following questions:
- What additional services can I offer?
- What can I sell?
- How can I add value?
- What talents do my employees have that I can harness?
Update your insurance.
Let’s be honest, the Covid-19 pandemic doesn’t exempt you from responsibility. One of our most important business tips for contractors is to keep your insurance updated. This will prevent any financial loss at this critical time.
- General Contractors Liability insurance – Protects your business form claims made by client’s or third parties for any damage that may have been caused by the contractor or their employees. It covers:
- Third-party injury claims
- Advertisement mistakes as a result of your media campaign
- Damage to Premises Rented to You
- Builder’s Risk insurance. This coverage protects financial loss resulting from damage to property under construction. The policy also covers:
- Damage caused by natural weather conditions
- Damage caused by vehicle or aircraft
- Theft and vandalism
- Loss or damage of equipment both onsite and in transit
- Temporary structures e.g. fence
Use the Covid-19 lockdown to safeguard your business.
Just because your business isn’t running to its full capacity now, doesn’t mean it won’t in the future. Our business tips for Contractors will help you take measures to ensure continuity after the pandemic. Let us be part of your efforts to prepare your business post Covid-19. Get in touch with Contractors Liability on 888 676 0923.