The Biggest Mistake I See Contractors Make
Too many contractors believe that because they know their craft, the business will take care of itself.
That mindset works for a little while, referrals come in and jobs get done.
However, eventually that mindset will create bottlenecks, stall growth, and in some cases, kill your company.
The reality is: running a contracting business takes more than being great on the tools. You need to understand the areas listed below at a high level and then hire professionals to help you execute them well.
Here’s a Contractor Business Fundamentals Checklist
- Legal & Financial Foundations
- Proper legal structure (LLC, S-Corp, etc.)
- Clean, organized bookkeeping & financial reporting
- TAXES! (Enough said)
- Insurance, bonding, and risk management tools
- Growth & Money Management
- Cash flow vs. profit (understanding the difference)
- Vertical vs. horizontal growth strategies
- Leveraging business lending, lines of credit, loans, and investors
- Pricing jobs for profit, not just to win bids
- Sales, Marketing & Customer Experience
- Marketing vs. sales (they’re related, but not the same)
- Having a repeatable sales process
- Professional website & online presence (Google Business Profile, reviews, SEO)
- Professional internal and external communication
- People & Operations
- Hiring, onboarding, and retaining the right team
- Employee compliance & HR basics
- Systems & processes (estimating, job costing, scheduling, project management)
- Leadership development—learning to lead, not just manage
- Strategy & Long-Term Thinking
- Setting clear business goals & tracking KPIs
- Networking & partnerships with referral sources and subs
- Technology & automation (CRMs, project management tools, etc.)
- Exit strategy & succession planning
Craftsmanship builds your reputation.
Business fundamentals keep your company alive and allow it to scale.
And that’s where Contractors of Colorado comes in. We’re a trusted local resource dedicated to helping contractors not only sharpen their craft, but master the business side too. From marketing and lead generation to strategy, systems, and growth—we’re here to walk alongside you every step of the way.
