Your Customers Are Changing
Saturday, January 06, 2007
It's important to know who your future clients will be so that you can meet their needs. And the demographic of homeowners is rapidly changing in the U.S. Technology is going through major changes which means contractors and service professionals will need to keep up.The Baby Boom generation is aging and moving into retirement years. It doesn't mean they won't want home repair or improvement, but their needs will be changing. The market will still be large but they may want to downsize, to add assisted living capabilities, and to add the latest technologies to make life easier.
The Gen Y population is more technological and many are very interested in green products, energy conservation, and healthy living. They're using the Internet to find professionals and are doing a lot of research online before calling for help. While they might be called more selfish, they are interested in the latest products, technology, and materials that require little maintenance and rare replacement to free up their time. And they don't want to spend very much for it.
Finally, it might not be a bad idea to start lessons in Spanish. According to the Washington Post, "Hispanics accounted for about half the growth in the U.S. population since 2000... the nation's largest minority group is increasing its presence even faster than in the previous decade."
The report also stated, "...Half are under age 27. By comparison, half of non-Hispanic whites are over 40." It will be very important to know how to market and sell to the Hispanic market. They are a major percentage of homeowners and will be looking for your services in the coming decade.
To keep up on the latest trends, bookmark this Contractor Update site and we'll continue to bring you news and information from around the country and from your neighborhood. If you need additional job leads, register - for free - with Construction Deal and we'll show you all the available jobs near you. If you're interested in any of them, you're more than welcome to subscribe to our service!
Labels: Construction Trends, Remodeling Trends, Small Business Advice
LA Times Construction News
Friday, January 05, 2007
From the LA Times: "The current rate of construction should be accepted as a 'new mentality' for builders, who pushed up the pace of building to near-record levels from 2003 to 2005, Nevin said."
"'That type of massive increase bent the industry out of shape,' he said. 'It caused lot and land prices to wildly accelerate, material and labor costs to skyrocket and trade contractors to throw away their standard profit-measurement tools.'"
"'That type of massive increase bent the industry out of shape,' he said. 'It caused lot and land prices to wildly accelerate, material and labor costs to skyrocket and trade contractors to throw away their standard profit-measurement tools.'"
Labels: Construction Industry, Construction News
Construction News from Colorado
Thursday, January 04, 2007
From the Colorado Gazette - "What a difference a year makes. In 2005, home construction in Colorado Springs and El Paso County soared to a second straight record-setting year. In 2006, the pace of home building fell to its lowest level in more than a decade."
"The 2006 slowdown delivered a blow to the construction industry, which employs thousands of carpenters, framers, painters and other workers. Several builders, from local firms Vantage and Classic Cos. to national companies such as Pulte, said they laid off workers when production sagged. The slowdown also was felt among plumbers, electricians and other subcontractors."
"Heidi and Greg Smith, who own Affordable Plumbing and Heat Inc. in Colorado Springs, said they were hit by a one-two punch in 2006. First, prices for copper and other materials skyrocketed. When the company hoped to offset those higher costs by doing more work, home builders cut back on construction. The result: Affordable Plumbing laid off 26 of 47 employees."
"'Instead of the subs being able to recoup the losses, building is down by 25 percent,' Heidi Smith said. 'So now it's a fight to get the work, and you have to bid as low as you possibly can to undercut everybody else to get the work.'"
"The 2006 slowdown delivered a blow to the construction industry, which employs thousands of carpenters, framers, painters and other workers. Several builders, from local firms Vantage and Classic Cos. to national companies such as Pulte, said they laid off workers when production sagged. The slowdown also was felt among plumbers, electricians and other subcontractors."
"Heidi and Greg Smith, who own Affordable Plumbing and Heat Inc. in Colorado Springs, said they were hit by a one-two punch in 2006. First, prices for copper and other materials skyrocketed. When the company hoped to offset those higher costs by doing more work, home builders cut back on construction. The result: Affordable Plumbing laid off 26 of 47 employees."
"'Instead of the subs being able to recoup the losses, building is down by 25 percent,' Heidi Smith said. 'So now it's a fight to get the work, and you have to bid as low as you possibly can to undercut everybody else to get the work.'"
Labels: Construction Hiring, construction jobs, Construction News, Small Business Advice
Guidelines to Help Reduce your Tax Liability
Wednesday, January 03, 2007
Here are some Small Business tax tips from MoreBusiness.com -
"Always Check Your Payroll – This is one of the main areas where you are most likely to get into trouble with the authorities, even if the only employee happens to be you. Being the only employee means that you will have to make the expected tax payments quarterly. It is very difficult for a new business owner to precisely predict income beforehand. However, this is the law and you are still accountable for the estimated quarterly tax payments.
Calculate Estimated Income, Medicare And Social Security Taxes - If Medicare and Social Security tax is not calculated correctly, you will have to deal with tax penalties and interest. If you are willing to spend the required time and energy, then reading up on the subject can help. It is advisable to get tax advice from an accountant in this area.
Seek The Help Of An Expert, Particularly If You Have Employees - Taxes become more complex when employees are involved. This is because you are required to hold back taxes on behalf of each employee and report this to the IRS either on a quarterly or monthly basis. This is where a tax professional comes in. If there are several employees working for you, then a tax professional or a payroll tax service can help by doing the necessary filings on your behalf.
Keep Track Of Your Travel Costs - If you own a vehicle that is used for both business as well as pleasure, it is advisable to buy a pencil and a notebook to keep track of the times when you use the car for business purposes. Record all business calls, business trips to either deliver or pick up material, client entertainment visits or any other use of the car for business purposes. This will allow you to accurately deduct all the operating costs involved in the business use of the car. In case you are audited, you'll have the necessary backup. The IRS is well aware of the fact that hardly anyone keeps records. Keeping good records of travel expenses is one of the best and most important tax tips for small business entrepreneurs. It can result in a profit of thousands of dollars per year."
"Always Check Your Payroll – This is one of the main areas where you are most likely to get into trouble with the authorities, even if the only employee happens to be you. Being the only employee means that you will have to make the expected tax payments quarterly. It is very difficult for a new business owner to precisely predict income beforehand. However, this is the law and you are still accountable for the estimated quarterly tax payments.
Calculate Estimated Income, Medicare And Social Security Taxes - If Medicare and Social Security tax is not calculated correctly, you will have to deal with tax penalties and interest. If you are willing to spend the required time and energy, then reading up on the subject can help. It is advisable to get tax advice from an accountant in this area.
Seek The Help Of An Expert, Particularly If You Have Employees - Taxes become more complex when employees are involved. This is because you are required to hold back taxes on behalf of each employee and report this to the IRS either on a quarterly or monthly basis. This is where a tax professional comes in. If there are several employees working for you, then a tax professional or a payroll tax service can help by doing the necessary filings on your behalf.
Keep Track Of Your Travel Costs - If you own a vehicle that is used for both business as well as pleasure, it is advisable to buy a pencil and a notebook to keep track of the times when you use the car for business purposes. Record all business calls, business trips to either deliver or pick up material, client entertainment visits or any other use of the car for business purposes. This will allow you to accurately deduct all the operating costs involved in the business use of the car. In case you are audited, you'll have the necessary backup. The IRS is well aware of the fact that hardly anyone keeps records. Keeping good records of travel expenses is one of the best and most important tax tips for small business entrepreneurs. It can result in a profit of thousands of dollars per year."
Labels: Contractor Advice, Small Business Advice, Tax Advice
