Running a successful contracting business isn’t just about quality craftsmanship. It’s about creating efficient systems, building a reliable team, managing finances smartly, and marketing effectively. Without structured processes, contractors often face unpredictable workflows, pricing issues, and inconsistent lead generation. This guide covers six key areas every contractor must optimize to build a scalable, profitable, and sustainable business.

1. Systems: The Backbone of Efficiency

A contracting business thrives on consistency and efficiency. Without documented processes, contractors risk costly errors, delays, and miscommunications. Implementing structured systems allows your business to operate predictably, whether you’re on-site or away.

Key Areas to Systemize:

1.1 Job & Project Management

• Use job management software like Jobber, Buildertrend, or Procore to streamline scheduling, tracking, and client communications.
• Implement project timelines to ensure every job is completed on schedule.

1.2 Standard Operating Procedures (SOPs)

• Develop an operations manual covering everything from material procurement to job site safety.
• Usequality assurance checklists to maintain workmanship standards.

1.3 Pricing & Estimations

• Invest in pricing and takeoff software like STACK or Clear Estimates to standardize your cost calculations.
• Keep pricing transparent with clear service packages.

Industry Example: A roofing contractor using RoofSnap for digital measurements can create accurate quotes quickly, reducing client back-and-forth and closing deals faster.

2. Team: Hiring and Managing for Success

2.1 Hiring & Onboarding

• Develop a step-by-step hiring process with structured interviews and skill assessments.
• Implement a new hire induction program covering safety protocols, company values, and job expectations.

2.2 Performance & Accountability

• Establish Key Performance Indicators (KPIs) for job performance and efficiency.
• Conduct regular one-on-one check-ins to provide feedback and recognize achievements.

2.3 Culture & Team Retention

• Organize team-building events to boost morale and loyalty.
• Implement an incentive program for top performers (e.g., bonuses, extra paid time off, or tool allowances).

Industry Example: An electrical contractor who introduces a quarterly bonus based on project completion rates sees a 20% improvement in on-time delivery.

3. Numbers & Pricing: Maximizing Profitability

3.1 Understanding Pricing & Margins

• Know the difference between markup (adding a percentage to costs) and margin (profit percentage of sales price).
• Set minimum service fees to eliminate low-profit jobs.

3.2 Financial Tracking & Cash Flow

• Use accounting software like QuickBooks or Xero to track expenses, revenue, and profit margins.
• Implement a cash flow forecast to prepare for slow seasons.

3.3 Managing Accounts & Payments

• Have strict payment terms (e.g., deposits, milestone payments, and final payments upon completion).
• Use an accounts receivable system to follow up on late payments professionally.

Industry Example: A painting contractor who raises rates after analyzing profit per project discovers that 30% of their jobs were unprofitable. Adjusting pricing increases profits without extra work.

4. Marketing: Generating Consistent Leads

Marketing is the fuel that keeps your business growing, but many contractors waste money on paid ads before fully leveraging free and organic lead-generation tactics. Before investing in paid campaigns, it’s essential to build a strong organic marketing foundation that consistently brings in high-quality leads. Below are the steps to track, optimize, and scale your marketing efforts effectively.

4.1 Track Where Your Leads Come From

Before you can improve your marketing strategy, you need to know which sources bring in the best leads. Tracking this information allows you to double down on what works and eliminate wasted effort.

Actionable Steps:

1. Use a Simple Lead Tracking System:
   • Ask every new lead, “How did you hear about us?” and log the response.
   • Use a basic spreadsheet or free CRM like HubSpot to categorize leads by source (Google, referrals, social media, flyers, etc.).
   • Track how many leads turn into actual paying jobs from each source.
2. Set Up Google Business Profile Insights:
   • Go to your Google Business Profile dashboard.
   • Check insights to see how many calls, messages, and website clicks come from your listing.
   • Compare these numbers to other lead sources.
3. Monitor Website Traffic with Google Analytics:
   • Set up a free Google Analytics account.
   • Track which pages bring in the most visitors and how many request a quote.

Example: A roofing contractor notices 60% of their inquiries come from referrals, so they implement a structured referral program to maximize this source.

4.2 Calculate Cost Per Lead (Even for Free Marketing!)

Many contractors only calculate cost per lead for paid ads, but even organic marketing efforts have a cost—whether it’s your time, printing flyers, or maintaining a website. Knowing your cost per lead ensures you invest in the highest ROI strategies.

Actionable Steps:

1. Determine Your Marketing Effort Costs:
   • Track the hours you spend on SEO, social media, and networking.
   • Include expenses like website hosting, email marketing tools, and print materials.
2. Calculate Cost Per Lead:
   • Formula: Marketing Spend ÷ Number of Leads = Cost Per Lead
   • If you spend $500 per month on marketing efforts and get 50 leads, your cost per lead is $10.
3. Compare Cost Per Lead by Source:
   • If Google SEO brings in leads at $5 each but flyers cost $20 per lead, invest more into online marketing.

Example: A general contractor tracks their efforts and realizes their Google Business Profile brings in leads at a lower cost than paid Facebook ads, so they optimize their profile instead of increasing ad spend.

5. Sales: Converting More Quotes into Jobs

Generating leads is only half the battle—converting those leads into paying customers is where the real business growth happens. Without a structured sales approach, contractors often waste time on unqualified leads and miss opportunities to close high-value projects. Below are actionable steps to streamline your sales process and boost conversion rates.

5.1 Develop Structured Sales Scripts to Handle Inquiries Professionally

First impressions matter. A potential client’s first call or email inquiry sets the tone for the entire sales process. Using a structured script ensures consistency, professionalism, and a higher likelihood of closing deals.

Actionable Steps:

1. Create a Simple Inquiry Script:
   • Answer calls with a professional greeting: “Thank you for calling [Your Business Name], this is [Your Name]. How can I assist you today?”
   • Ask qualifying questions: “What type of project are you looking to complete?” “What is your timeline?” “Have you worked with a contractor before?”
   • Show confidence: “We specialize in [specific service]. Based on what you’ve described, I’d love to schedule a quick consultation to discuss your project in more detail.”
2. Standardize Responses to Common Objections:
   • “Your price is too high.” → “We focus on quality and long-term durability. Unlike budget options, our work ensures fewer repairs and higher property value.”
   • “I need to think about it.” → “That’s completely understandable. If I may, what specific concerns do you have? I’d love to address them.”
   • “I’m getting other quotes.” → “That’s a smart approach! I’d be happy to highlight what makes our work stand out so you can make the best decision.”
3. Use a CRM or Call Tracking System:
   • Log every inquiry with details about the conversation.
   • Tag leads based on urgency: “Hot” (ready to buy), “Warm” (interested but needs nurturing), “Cold” (not a priority now).

Example: A roofing contractor who scripts a consistent follow-up call for storm damage inquiries sees a 30% increase in booked inspections.

5.2 Use a Follow-Up System for Pending Quotes

Most deals are lost because contractors don’t follow up. Homeowners often get multiple quotes and delay decisions. A strategic follow-up system helps you stay top-of-mind without being pushy.

Actionable Steps:

1. Send a Follow-Up Email 24 Hours After the Quote:
   • Subject: “Your Project Quote – Next Steps”
   • Message: “Hi [Client Name], I wanted to check in to see if you had any questions about the proposal we sent over. We’d love the opportunity to work with you and can answer any concerns you may have. Let me know how we can assist. – [Your Name]”
2. Make a Follow-Up Call 3 Days Later:
   • “Hi [Client Name], I just wanted to follow up on the proposal we discussed. I know these decisions take time, and I’m happy to walk through any details with you.”
3. Use a Text Reminder 7 Days Later:
   • “Hi [Client Name], just checking in to see if you have any questions about your project. We’d love to get started when you’re ready. Let us know how we can help!”
4. Leverage a “Last Call” Offer (If Applicable):
   • “We’re scheduling our next round of projects, and I wanted to check if you’d like to secure your spot. Let me know by [date] if you’d like to proceed.”

Example: A general contractor who implements a structured email and call follow-up system sees a 25% increase in signed contracts within two weeks of sending quotes.

6. Time & Leadership: Working Smarter, Not Harder

Effective time management and leadership are crucial for sustainable business growth. Many contractors find themselves overwhelmed by daily tasks, leaving little time to focus on strategic improvements. By optimizing time management and leadership practices, you can increase productivity, reduce stress, and create a business that thrives with or without you.

6.1 Structuring Your Week with a Default Calendar

A well-structured calendar ensures that your time is spent on high-impact activities rather than reactive, last-minute tasks. A default calendar sets specific time blocks for key business functions, helping you maintain focus and efficiency.

Steps to Create a Default Calendar:

1. Identify Core Activities: List out essential weekly tasks such as project management, client meetings, administrative work, marketing, and financial reviews.
2. Block Time for High-Value Tasks: Dedicate specific time slots for activities that drive business growth, like sales calls, strategy planning, and networking.
3. Schedule Admin Work Efficiently: Reserve fixed periods for invoicing, emails, and paperwork to prevent them from consuming your entire day.
4. Prioritize Personal Time: Include time for breaks, exercise, and family to maintain work-life balance and prevent burnout.
5. Review and Adjust Weekly: At the end of each week, assess how well your schedule worked and refine it for the following week.

Example: A roofing contractor sets aside Mondays and Thursdays for client meetings, Wednesdays for job site visits, and Fridays for financial tracking and team management.

6.2 Working ON Your Business, Not Just IN It

Many contractors get caught up in the daily grind of running jobs, handling customer inquiries, and putting out fires. However, to scale your business, you must dedicate time to strategic planning and long-term improvements.

How to Spend Four Hours a Week Working ON Your Business:

• Business Strategy Sessions: Set aside time each week to evaluate progress, set goals, and adjust strategies for growth.
• Process Improvement: Identify inefficiencies in your workflow and implement systems to streamline operations.
• Marketing & Lead Generation: Regularly update your website, refine your online presence, and analyze lead sources to optimize your marketing strategy.
• Training & Team Development: Invest in training programs, conduct performance reviews, and ensure your team aligns with company goals.
• Networking & Industry Engagement: Build relationships with suppliers, subcontractors, and industry peers to create new opportunities.

Example: A general contractor dedicates Friday mornings to reviewing financials, checking marketing performance, and developing new client outreach strategies.

By intentionally structuring your time and focusing on high-value activities, you can grow a contracting business that operates smoothly, increases profitability, and ultimately gives you more control over your time.

Final Thoughts

Improving these six areas—systems, team, pricing, marketing, sales, and leadership—will help contractors build a business that is not only profitable but also sustainable and enjoyable to run.

Next Steps

Want to take your business to the next level? Sign up for a free listing on RoofRoof and access expert resources to help you grow your contracting business today!

Final Thoughts

Improving these six areas—systems, team, pricing, marketing, sales, and leadership—will help contractors build a business that is not only profitable but also sustainable and enjoyable to run.

Next Steps

Want to take your business to the next level? Sign up for a free listing on RoofRoof and access expert resources to help you grow your contracting business today!