An accurate estimate sets the tone for the project and ensures that there are no financial or logistical hurdles along the way. With an accurate estimate, contractors can avoid over- or under-buying materials and hire necessary labor. Additionally, having a reliable estimation process means contractors can confidently quote costs to clients and never charge them more in the future. This helps to develop strong client relationships leading to repeat business. For contractors looking to learn the best ways for creating project estimates, this article has you covered.
Obtain a Detailed Scope of the Project
Clients often solicit multiple bids from various contractors to receive the best estimate for their project, as reported by One-Pull Solutions. While quoting a lower price than competitors can help you land clients, if it is not accurate, you may end up paying out of pocket to cover project costs.
Rather than focusing on providing the lowest price, your goal needs to be quoting an accurate price in line with project expectations. This can be easier with new home construction, where the scope of the overall project is relatively small. Larger projects are comparatively more challenging to estimate.
The best way to accurately understand the scope of the project is to meet clients in person. Reviewing the property/site in person will provide a clear idea regarding the amount of material and labor required for the project. Additionally, you can factor in any extra costs associated with transportation, local taxes, etc.
Speaking with clients face-to-face also provides the chance to ask questions and discuss special requests they may have. Moreover, if you ascertain a specialist is required for the project, request to bring them along for a follow-up visit. Only once you have collected ample details regarding the project should you start working on the estimate.
Maintain Your Margins
As a contractor, your goal needs to be to make a profit on all projects. But this is easier said than done. With the competitive nature of the industry, you sometimes may need to provide discounts to make offers attractive to clients, however, the amount of discount will depend on the financial health of the business.
Using cloud construction accounting software will provide a clear picture of your business's financial standing. For instance, within a few clicks on the software, you can create a cash-flow statement, which can be reviewed to understand the rate of inflow and outflow of cash from the business. A negative cash flow will require you to cut costs, improve collections and reduce discounts on projects. Conversely, when the business is healthy, you can be more competitive, afford to bid for numerous projects, and have greater price leeway with clients.
Use an Estimating Software
An estimate needs to include all important aspects of the project such as cost of labor, type and quantity of raw materials, tax calculations, and much more. The best way to tackle this cumbersome task is to use cost estimating software. This kind of software can be useful both during the consultation phase and the construction phase of a project. Based on the type of project, you’ll be able to choose from an array of templates that can be customized depending on your labor and material requirements. Additionally, the software will automatically calculate the various types of taxes you’ll incur and provide a final figure which can then be shared with clients.
Additionally, as reported by Building Advisor, if a payment schedule has been decided with the client, you can include that with the estimate as well for approval. During the course of the project, the software will share automated invoices to ensure that you receive payments on time.
Moreover, you can expect minor modifications to be requested either by you or the client while work is ongoing. Using the software, you can seamlessly make tweaks to the estimate and share a fresh copy with the client for approval. This ensures that all parties are on the same page at all times.
When it comes to consistently creating accurate estimates for projects, using technology will be key. Tools such as accounting software and cost estimating software simplify the process of handling complex calculations, make accepting payments easy and allow you to outperform competitors. Additionally, you can make changes on the fly with little to no disruption in work and ensure that projects are always completed on time and within budget.
Here are a few other great resources for entrepreneurs in the general contracting business:
Connect with other local business owners in the Deerfield, Bannockburn, and Riverwoods areas by joining the DBR Chamber of Commerce.
Image via Pexels
.jpg)
A home-based business can be a great way for seniors to supplement their income or even make a full-time living. If you're a senior citizen who's thinking about starting a home-based business in Deerfield, Illinois, there are a few things you should keep in mind. In this article, we'll cover some tips on how to get started.
There are a number of reasons why home-based businesses are a good option for seniors. First of all, they offer the flexibility to work around your schedule and commitments. If you have grandchildren or other family members that you need to care for, a home-based business can be a great way to do that and still earn an income. Additionally, many seniors have knowledge and experience that they can leverage to start a successful business. And finally, with the advent of the internet, it's easier than ever to start and operate a home-based business.
Once you've decided that starting a home-based business is right for you, the next step is to write a business plan. This document will outline your business goals, strategies, and financial projections. It's important to take the time to write a thorough business plan, as it will be essential for securing funding and attracting potential customers.
If you're starting a home-based business in Deerfield, Illinois, you'll need to choose the right legal structure for your business. One option to consider is forming an LLC (limited liability company). An Illinois LLC offers protection from personal liability for debts and obligations incurred by the business. Additionally, it can help you save on taxes by allowing you to elect how you want your business taxed.
Invoicing is an important part of running any type of business. When you're invoicing customers for products or services rendered, it's important to keep accurate records and track payments received. Fortunately, there are a number of software programs available that can make invoicing easy and efficient. By using invoicing software, you can save time and ensure that your customers are billed correctly.
If you're doing business under a name other than your registered LLC name, then you'll need to file for a DBA (doing business as) with the state of Illinois. This is relatively simple and can usually be done online in just a few minutes. Once your Illinois DBA has been approved, you'll be able to use it on all of your marketing materials (including your website, business cards, etc.).
If you don't have the time or resources to start your home-based business on your own, consider hiring freelancers to help you get things off the ground. There are many talented individuals available who can help with tasks like website design, social media marketing, copywriting, and more. By hiring freelancers, you can focus on other aspects of running your business while still getting the help you need to get started.
Last but not least, once your home-based business is up and running, don't forget to market it. There are many ways to market your business, including online advertising, PR, content marketing, and social media. By taking advantage of these marketing channels, you can reach new customers and grow your business.
Overall, starting a business at home could be extremely beneficial for seniors. They offer flexibility around scheduling, opportunities to share valuable experiences, ease of access with technology, and more. To start a company, there are many steps you’ll need to take (including joining the DBR Chamber of Commerce), but following through on them puts you on the path for smooth sailing now and down the road.
Photo: Unsplash
.jpg)
Monte Cristo - Sliced ham and turkey, and melted jack cheese stacked between 2 slices of Challah French toast, dusted with powdered sugar. Served with fruit, syrup, and jam.
Alpine Scrambler - Three cage-free eggs scrambled with diced ham, cream cheese and green onion. Served with Harbor potatoes and a buttered English muffin with jam.
Smoked Salmon Avocado Toast - Multigrain toast, lightly seasoned mashed avocado, cold smoked salmon, tomato, red onion and dill. Served with two cage-free eggs, any style and fruit.
