My Surety Bond Program is Growing!
As your construction company grows and you need more surety bonds, you will find more project opportunities. With more projects and work you will take on more risk. Here are give keys to manage your construction company’s growth.
- Mind the job size and job growth. Generally you want to start off by taking on smaller projects and grow 1.5 to 2 times your largest job completed. Bigger projects doesn’t always mean more profit.
- Save your money! You want to retain money in the company and start to build equity for a rainy day fund, this is very important for your surety bond program. If you get in trouble on a project and need money then having a new truck wont help you in that moment.
- Know your numbers and the details. Track every expense and know where your money is going. Ideally you should bid a project with cost and profit in mind. When you win the project and finish the work, you should review your numbers and see how different everything was compared to your original bid.
- Make sure you are working with a construction CPA and have them review your numbers and question any expenses or losses. This will help you become more successful and make more money, they are on your side!
- Get a bank line of credit. When you don’t need a line of credit you will be able to obtain one from your bank. However when the day comes that you need a line of credit often at that time the banks wont be willing to give you the line. It’s always good to have a line and not need it.