External factors, such as economic changes or technological advances, can significantly impact whether a business will thrive or fail. The rise of sharing and gig economy apps is an excellent example. These apps gave consumers more affordable options for daily tasks and errands and provided individuals with a new way to earn money on their schedules.
Running a business is a fascinating journey. But it's essential to thoroughly evaluate your company before moving further to ensure you're creating a sustainable and successful venture.
Costs may be high, requiring careful planning. You may need to educate your customers and convince them to adapt to your business before they're ready to use it or hire you. And let's remember the competition that already exists in the market.
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Topics:
Outsourced Accounting For Contractors,
Construction Accounting,
MAP vs. PAM,
Contractor Marketing,
Outsourced Bookkeeping Services,
Contractor,
Contractor Tips,
Contractor Operating Tips,
sole proprietor
Does this sound like you? Maybe you started your company with a few friends and relatives as your earliest clients, and you thought your overhead expenses would be low since you worked out of your home. You made a decent living for yourself, hired a few sub-contractors per project, paid your suppliers, and earned a profit—at least that is what your tax preparer said.
Things begin to change, and the reality of the construction industry begins to dawn on you. Those early customers who were your friends because you could get faucets, fixtures, and materials at wholesale prices now tell you they were happy with your work. They want your construction company to do all their future work (and refer you to their closest neighborhood friends) as long as your price is lower than the other bids they are getting.
Yes, this kind of business builds your integrity, but at the same time, you are dirt-poor. Why? Because as a construction company owner, you now have overhead no matter what business entity you operate. It's not just office overhead; you have field overhead, too.
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Topics:
Outsourced Accounting For Contractors,
Construction Accounting,
MAP vs. PAM,
Contractor Marketing,
Outsourced Bookkeeping Services,
Outsourced Accounting,
Contractor,
Contractor Tips,
Contractor Operating Tips,
sole proprietor
