Financial Tips
1. Know Your True Costs
Most contractors undercharge because they don't know their real costs. Your true labor cost includes base wages + payroll taxes (7.65% FICA) + workers comp (5-15%) + unemployment (3-6%) + benefits + non-billable time.
2. Bill for EVERYTHING
Revenue leaks that add up: quick change orders never documented, extra materials picked up, callbacks and return trips, time on client calls/meetings, drive time between jobs.
3. Track Job Profitability
Know which jobs make money by tracking actual time, actual materials, and calculating profit at completion vs. your estimate. Which job types are most profitable? Which clients? Which are you losing money on?
4. Collect Faster
💰 Collection Practices
| Deposits (25-50%) | Cash on hand before work |
| Progress payments | Cash flow during job |
| Invoice same day | Faster payment |
| Follow up day 31 | Reduces late payments |
| Accept cards | Faster than checks |
5. Separate Business and Personal
Separate bank account, separate credit card, pay yourself regularly. This protects you legally and makes tax time easier.
Operations Tips
6. Create Systems
The difference between a job and a business: a job means you do everything and can't take time off. A business means systems run and you manage.
Systems to create: Estimating process, client onboarding, daily operations, invoicing/collections, and project close-out.
7. Document Everything
Daily logs, photos with timestamps, change order approvals in writing, client decisions documented. The 60-second rule: if it takes less than 60 seconds to document, do it now.
8. Build a Crew You Can Trust
Hiring: Hire slow (multiple interviews, reference checks). Skills can be taught; attitude can't.
Firing: Fire fast when it's not working. One bad apple affects the whole crew.
9. Use Technology That Works
Don't chase every new app. Minimum tech stack: Accounting (QuickBooks), Communication (WhatsApp groups), Scheduling (Google Calendar), Documentation (phone camera + cloud storage).
Sales & Marketing Tips
10. Get More Referrals
Ask at project completion and again 3-6 months later. Make it easy — provide cards, text to share. Script: "If you know anyone who might need similar work, I'd appreciate the referral."
11. Collect Reviews
Ask immediately after positive feedback. Send the Google/Yelp link. Respond to all reviews. Reviews win new clients.
12. Stay in Front of Past Clients
Annual check-in, seasonal reminders, first to know about openings. Past clients are 5x more likely to hire you than new leads.
13. Price for Profit, Not Market
Don't race to the bottom. Know your true costs. Add real profit margin (15-25%). Be willing to lose cheap clients. If you're winning every bid, you're too cheap.
Growth Tips
14. Work ON the Business
Schedule time to: review financials (weekly), analyze job profitability (monthly), plan improvements (quarterly), set goals and review progress.
15. Avoid Common Mistakes
🚫 Mistakes to Avoid
| Underpricing | Know true costs first |
| No deposits | Require 25-50% upfront |
| Verbal agreements | Everything in writing |
| Growing too fast | Controlled growth only |
| One big client | Diversify your base |
| Doing everything yourself | Delegate, systemize |
Build systems that run without you
Job Hammers automates time tracking, daily logs, and invoicing through WhatsApp — so you can work ON your business, not just IN it.
See How It Works →