The construction industry has taken a big hit during the pandemic, and alongside it are independent contractors and their firms. Surviving during this time can be tough, but it’s crucial to your business’ success in the future. Unfortunately, you’re going to have to take up some loans and shore up whatever assets you have if you want to make it through this year.
The pandemic has taken away $60 billion from the industry, causing millions of Americans to lose their jobs. That’s about four years of gains down the drain. But the most devastating toll goes into every construction firm out there trying to survive. Experts believe that these firms will need some outside help if they want to survive and thrive this year. One of these help comes in the form of the Paycheck Protection Program.
Paycheck Protection Program
There’s no shame in getting outside help, especially if it’s for the betterment of your firm. The Payment Protection Program (PPP) offered by the Small Business Administration is one option you look into if you want to preserve your business and your employees.
The program gives you access to low-interest loans so that you’ll have enough money to operate during the pandemic, albeit at a reduced operational level. In addition, you can get another loan after the first, with the same interest rate, making it a viable option for most firms that are struggling to find their footing during these changing circumstances.
Other programs like the PPP are available in the CARES Act enacted by the U.S. government last year, most of which are still available this year. However, these programs aren’t enough. You’re going to have to apply some business strategies if you want to thrive this year.
Liquidate Unneeded Assets
Assets that aren’t needed in your firm are only going to get in your way to success. For example, some construction jobs are stopped until the pandemic has been stopped, and the assets for those jobs are resources just lying around, waiting to be used. The best option is to liquidate them now to use that money for other projects that you need to finish.
Offer Other Services
Before, contractors mainly relied on home services such as painting, construction, and home expansion. But if you want to survive right now, you’re going to make do with the unique services that clients need from you.
One unique service is inventing safety modifications in homes and businesses. For example, a client might ask you to build touchless fixtures for their doors and system upgrades that’ll accommodate social distancing in homes and offices. All of these are reliable sources of income, and you should get these jobs whenever you can.
Mitigate Infection Risks in Your Firm
Lastly, you’re going to need to decrease the chances of infection in your firm. Right now, you’re relying on business operations and low-paying projects and jobs to get you going. So the moment you get an infection in your firm, and you’re forced to quarantine, that’s game over.
Invest in personal protective equipment for your crew. Ask them to get vaccinated and reward those who have gotten theirs. Do everything in your power to mitigate infection risks in your firm so that you can survive through this pandemic and expand in the future.
The expansion will be a risky strategy, but it will help you thrive in the coming years. Here are some viable expansions strategies you can make during the coming years.
Expansion can create a new need for your company. This need comes in the form of more experienced managers. Once you’ve grown, you should consider letting some of your employees take the contractors’ license board exam in your state. These employees of yours can become the new head of your other offices, making expansion a lot smoother in the future.
Having more offices means having more access to clients, which is essential today. This is how you are going to dominate the market and prepare your company for a post-pandemic world.
Another option is to expand to the modular construction market. This particular sub-sector has a projected increase of 7% between the years 2020 to 2023. It is one of the highest increases in the sub-sectors in the construction industry, especially during that given period.
The main reason why modular construction is becoming so popular is because of how convenient it is for both the client and the contractor. The method is also much faster when compared to traditional construction methods. However, transitioning to modular construction can be tough if you don’t have the expertise, but it is one of the most viable expansion strategies you have right now.
Survival is key right now if you want to thrive in the future. But if you have an opportunity to expand, take it right away. It’s better to take a bit of risk than stay stagnant during this year.