When you’re running a company, it’s important to maintain a budget to maximize profit. Especially if your industry is costly… and construction can be a costly industry. Between vehicles, special equipment, and the cost of skilled workers, you can find yourself with a lot of expenses each month.
If the costs are starting to add up and you’re looking for ways to save on construction, there are options to even things out. You might be worried that cutting back means cutting corners, but don’t worry. You can lower your expenses without lowering your quality.
Here are five tips to help you save money when you’re running a construction company.
1. Rent Your Equipment
You don’t use every piece of equipment every day. You may find yourself only needing specialty pieces once or twice a year, so why spend money to buy them and store them? You can easily rent what you need when you need it and return it when you’re done.
That advice doesn’t only apply to tools. One of the most costly pieces of equipment for construction companies is their fleet of vehicles. Construction requires vehicles, and buying and maintaining them can be very pricey.
Rent ¾ ton pickup trucks for all of your needs right now and eliminate the cost of owning a fleet. Rental truck contracts can be as little as four months, a year, or even longer. So you don’t have to worry about your time running out too quickly.
Check into it now to see how much money you can save by renting your fleet.
2. Apply For Grants
Many states offer grants to construction companies that do work that benefits the public good. This can be anything from building cancer research facilities, to putting in a new pavilion at a local park.
Sometimes, there are also grants available for minorities in the industry. If you’re a woman who owns a construction company, for example, you can register as a Women-Owned Small Business with the Small Business Administration to be eligible to receive more federal contracting opportunities.
Research the federal and local opportunities that may be available to you to help save money.
3. Replace Old Technology
Outdated technology can slow down your business. Review your equipment and procedures regularly to identify areas that need to be updated to improve efficiency. Improved efficiency equals less time spent on a job, which means you can move on to the next sooner.
The more efficient your process, the more jobs you can get done and the more money you can make.
4. Go Sustainable And Efficient
Being sustainable and energy efficient is great for the environment, and it can be great for your budget too. Simple changes like switching to energy-efficient lighting and using leftover materials when it’s safe to do so can add up quickly.
It’s also a great selling point to mention to potential clients. The world is embracing being eco-friendly and getting on board can get you serious business.
Besides clients, you might be able to find grants or investment money that’s geared toward eco-friendly construction companies. Being sustainable and eco-friendly can help offset major costs in the long run.
5. Hire Employees Who Are Skilled In Multiple Areas
It’s one of the oldest tricks in every business: hire employees who are good at more than one job. For example, if you have one employee who can do electrical and general contracting, you save on having to pay two different salaries.
You should, of course, compensate your multi-skilled employees properly, and make it clear that you appreciate them. While working with a small team isn’t always ideal, it can help keep things going when times are tough financially.
Hiring employees who have multiple skillsets also allows you to have them train other employees, or to move people around as necessary. Being able to ask an employee to step in for someone else can speed up efficiency and prevent lost time due to illness or absence.
If you can’t find employees with multiple skillsets, create them. Invest in new training for your talented employees as an investment in their future and your company’s.
If you’re looking for ways to save money while running your construction company, try out these five money-saving tips.