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As contractors evolve they tend to fall into one of these two buckets and they both cost money. One bucket is where the strugglers are, the ones who won’t make it for the long haul. The other is where the rainmakers & long-term market apex predators are. Which one costs more to be in?
Let’s think about it how much it costs to be in one or the other over the course of a year:
The cost of being a reactive contractor:
- Getting directed by the client as to how the scope and price ought to be (Losing margin $$)
- The opportunity cost of a won an account ($100K)
- Actually losing an account altogether ($25K – $500K easily)
- Reputation damaged in the marketplace (Almost immeasurable)
- Total in one year for the avg. commercial contractor: Easily $3-5MM
The cost of being a proactive contractor:
- Investing in the training of personnel ($5K – $100K depending on how much and with who)
- Time to run effective and consistent meetings (Marginal $$)
- Investing in the right personnel to support bandwidth ($100K – $500K)
- Technology to execute ($10K – $100K)
- Est. total in one year for avg. commercial contractor: $750K – $1MM
You’ve heard it said, “don’t trip over dollars to pick up pennies”.
If you’d like help beginning the transition from reactive to proactive. Schedule your strategy session with me now and we can dive deeper into your current situation.
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