Times are pretty darn lean in the remodeling and construction trades right now. Unfortunately for many contractors, it’s time to cinch that proverbial belt a few notches tighter. But the only way to tighten a belt is to let some fat go. This can be a harder choice than you might think when it comes down to it. In the interest of relieving stress, here are five suggestions for things that can go…at least for now.

1. Advertisements. If the money is there, then advertisements are an excellent way to get the word out, but recessions are more about intimacy and word of mouth. Many homeowners want to remodel but are tentative about spending the money. In such cases, a handshake and some expert conversation are more likely to yield trust and a contract than the flash and flare of an advert. Start with recent or other past clients. Maintaining a relationship with one client often extends to others by association. Then, when cutting down your advertising budget, test out which outlets work best for you before deciding what to slash off the budget.
2. That Extra Truck or Trailer. There’s no need to go out and pawn tools, but that other heavy duty truck you bought during the boom that costs $500 per month could probably go. A contractor needs his truck, but two? The same goes for trailers and other superfluous equipment. It’s all part of trimming the fat and balancing a budget.
3. Office Space. It’s probably getting hard on a lot of contractors to pay for separate office space. As much as we all hate to see empty buildings lining city streets, is an office really necessary for your company? Perhaps it is, but many contractors could just as easily handle paperwork at home, especially since most meetings are held on job sites anyway.

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As a small business owner, you don’t even have to turn on the dismal financial news to know that the economy is lousy. You are already feeling the pinch, and then when you hear of your tax dollars being used to bail-out the big banks and corporations that helped to create this mess, you begin to get bitter. After all, I haven’t heard much mention of any help for the little guy.

Well, you have two options right now. You can either sit there and wait out the storm and possibly go under as many of your competitors are, or take advantage of a slower time to revamp your business.

I spoke with a few construction companies recently. Operating in California, they are struggling with the new laws that require all plans to be inspected by an architect. One family company decided to send one of the younger brothers to college to become an architect. Another company is using this time to branch out and to explore new avenues. They invested in heavy equipment and training for some crew members so that they can now offer excavation services. One older construction owner made the decision to take this opportunity to scale back his operation and pursue a lifelong dream to build custom furniture and cabinetry. He enrolled in the appropriate classes to learn the trade, and is now happily remodeling his shop to accommodate his new direction. (more…)