Every business seeks to be number one. The biggest question is – how to do it. Whilst there are numerous books on how to build an empire with a variety of strategies and thoughts, sometimes it all can seem too difficult. Therefore, we want to make it easier for you and that is why we bring you a short list of 6 common mistakes in subcontracting business together with the solutions on how to solve them.
No communication plan
We bet there is no strategy existing that would not involve the magical word – „communication “. This list is no different as consistent communication is key in the subcontracting business sector. Without it, wrong assumptions and ideas can interfere with the process. It is necessary to schedule regular meetings and calls to share the process with your clients. This method allows you to avoid or address any potential issues or apprehension. Controlled and planned communication will also build a better business relationship with your partners, as that shows how serious you are about your work.
Incorrectly assessing time and budget
We all know the saying – time is money. That is a literal term to describe the subcontracting business. The mistake that usually can be made is overestimating your possibilities. Therefore, to succeed you must set realistic goals. Make sure that all parties involved agree with commitments and plans and everyone would be counted accountable so the project could be completed as close to deadlines and on budget.
Assuming all closeout documents are the same
As boring as it may sound, documentation is crucial to the business. Doing it right avoids any legal misconduct and shows the client the professionalism of your company. It is a must to carefully read and understand what is required. As papers can differ depending on the project, we suggest obtaining a legal advisor for such matters.
Not having an effective sales process
The sales process is combined from several key points, which must be operated correctly. First of all, know who your „Top Tier“ customer is. It means that you have to define the qualities of your client and determine how this definition will affect your profit plan. Then even if it seems obvious – you must sell effectively. Knowing the market and its pricing is crucial, you have to be ready to explain what benefits you are giving and how it affects your pricing. Further, keep your promises. Building relationship in a subcontracting business is a long-term commitment. You don‘t want to ruin it, by giving false pledges to the client.
Avoiding scheduling issues
As you read it on the subline – do not avoid schedule issues. Ignoring such issues can give you a snowball effect – it starts with a small snow roll and grows out into a mountain avalanche. Such a manner can outgrow into problems within your work process as well as cause doubts about your reliability for the client. Collaborative and integrated management is necessary to avoid such troubles.
Overestimating or underestimating costs
Projects are like living organisms, which means their development can be impacted by a variety of environmental causes. That is why it is necessary to make a detailed costing plan. If you underestimate it, you will lose money on already coveted jobs. Make sure to gather detailed information to get as close as possible to the circumstantial finance plan.