Tips for Working with Business Professionals

A good contractor knows the importance of teamwork to project completion. Part of this teamwork includes having skilled and dedicated employees, subcontractors with the same flow and similar expectations, as well as material suppliers with competitive prices and timely delivery frames. Your team may also include office personnel, such as professionals in sales, estimating, accounting, and management, who all collaborate on projects behind the scenes.

When you think of your team, your banker, accountant, attorney, or insurance agent probably aren't the people who immediately come to mind. However, partnering with the right business professionals can help ensure the success of your business. Building long-lasting relationships with these figures over time can play a big part in developing into a successful contractor. Listed below are a few suggestions on choosing the right people to have by your side.

The banker

You want to partner with a bank that understands contractors, knows the construction industry, and has several contractors for clients. Bonus points if they partner with a construction association, which can be a great resource for networking.

Construction companies need capital to pay for many expenses, including some before on-site work even starts. Having to wait for the monthly payout can make capital tight.

Your banker can set up a trust or alternative way to easily access capital by draws without having to fill out an application each time. A banker will assess the risk of a contractor to determine the interest rate that will be charged as well as any collateral that may be required.

Working to make sure the bank feels comfortable with you and your company can be helpful. Make it a point to stop into the bank three or four times a year to update them on the current happenings with you and your business (e.g., projects coming up, projects completed, changes in your company, etc.). Have all your paperwork in order and on time at every renewal. This can help your relationship when your banker goes into committee regarding your account. 

The accountant

Your accountant can help in many ways, such as during the start-up process, putting the best business structure together, assisting with the financial analysis in your business plan, the type of software to use, financial statements, bookkeeping, and closing out your books.

Informing your accountant of the short-term and long-term plans for your company is important to achieving your goals. Forecasting the purchase of equipment, vehicles, and real estate can help determine depreciation and cash flow, and setting up retirement accounts can defer taxable income.

It may be beneficial to meet with your accountant about two months before year end to make any necessary adjustments to offset tax liability.

The legal team

With high risk in the construction industry, contractors should never wait until they are facing a legal problem before seeking legal advice. An attorney who specializes in construction can help you identify unknown risks, so having this type of attorney on your team can help you better protect yourself.

It is important to read and fully understand any contract before signing. It's also helpful to be familiar with legal terms, state laws, and any recent court rulings that can affect contractors and contracts. If you are unsure, you may wish to consult an attorney.

Insurance agent and company

Having an insurance company who specializes in construction is critical, as this allows them to properly evaluate your businesss. The cost of insurance premiums can sometimes determine if a contractor is competitive with other contractors, which is why it is important to work with an insurance company that can help with risk management and controlling your insurance premiums.

Acuity insures over 40,000 contractors and has a 96% claims satisfaction rating. Building lasting relationships with contractors is a high priority. Some of the services offered to contractor customers are loss control services, safety and educational resources, and a 24/7 nurse hotline for nonemergency workers' compensation injuries.