Construction Business 101: How to Manage Your Expenses During the Winter
With unreliable weather and frozen ground conditions, many construction business may experience a decrease in business during the winter. This can make managing expenses without a guaranteed steady income difficult for companies that still need to covers costs during the colder months. Here are a few tricks that many use to help with these winter costs.
Many companies that experience an influx and outflow of business seasonally may benefit from keeping part of their workforce flexible. This could mean hiring seasonal, temporary or contract workers during the busy summer months. These workers then move on to other work during the winter months, while the construction company keeps a smaller group of full time employees for winter jobs. This way a construction company can maintain the labor they need as they need it without maintaining a full staff when there’s little or no work to be completed. Many people such as students seek out such work schedules and may even want to return in future years.
In the case of a growing construction business it might be better to keep a full time staff all year. In this case the company will need to find an alternate source of income during the off season. Consider the needs of the area when choosing alternate services the company could offer. They could include anything from snow or leaf removal, gutter cleaning, or even holiday decorating services. In some cases a business may own equipment they don’t use in winter months that they may be able to rent out. These may not be the constructions services a company is used to offering, but they could be a source of extra income when business is naturally slow.
Unfortunately not every solution is a guaranteed stopgap when it comes to financing during winter months. Unexpected expenses could occur leaving a company without funds they may normally have had. In cases like these a small business loan may be a solution. Loans can cover everything from payroll to equipment repair depending on the loan type a terms. If this is a solution currently in consideration for your business, a professional can help answer any questions.
Expanding services or keeping a temporary staff are only a few of the ways a construction business can increase their winter income and cut costs. Using these tricks can help cover the gap the winter months leave. They can also help a company stay ready for more business come spring. Remember, if necessary it may be possible to get a small business loan to help cover winter expenses.