When business is struggling, what should a contractor consider before bidding on jobs?

Bidding on jobs only if you can make a profit is crucial for a contractor, especially during challenging times. It emphasizes the importance of maintaining financial health and sustainability in a business. Even when the economy is tough and competition is high, it's vital for contractors to assess the profitability of each job. Accepting jobs that do not meet profit margins can lead to greater financial difficulties, affect cash flow, and ultimately jeopardize the viability of the business.

Contractors should conduct thorough cost assessments, including labor, materials, overhead, and any unforeseen expenses, to ensure that their bids reflect a return on investment. This approach not only protects the contractor's financial interests but also contributes positively to the overall integrity of their work and reputation.

On the contrary, bidding on every job available can lead to overextending resources, compromising quality, and resulting in unsustainable practices. Lowering prices excessively to attract work may lead to a perception of diminished quality and can harm the long-term profitability of the business. Focusing solely on high-value contracts might overlook smaller projects that could provide steady cash flow and build relationships with clients. Thus, targeting profitable jobs reflects a balanced strategy conducive to long-term success.