How Staying Licensed, Insured, And Bonded Can Help You Grow Your Business
All contractors need protection for themselves, as well as protection for their clients. You can achieve all of these things through licensure, insurance, and bonding. You don't always require all three, but it's important that you maintain all three anyway if you want to grow your business.
People Will Tend to Choose a Licensed Professional Over an Unlicensed One
Even when people want to spend the least amount of money as possible, they still tend to stick to contractors with licensing. It's usually illegal to perform contract work without a license. Even in cases where it isn't, licensing puts people at ease.
Licensing means you have done the training to reach a level beyond a novice or dabbler. It means you're serious about what you do. It also means the state or municipality sanctions your work. Licensing is one of the first things people look for when considering contractors for any project.
Your licensed status will automatically set you apart from others in your field who ply their trade without it. In addition, licensing shows your accountability. That's because once you're licensed, potential clients can use your license number to look up your business and find out relevant information about your operations.
Insured Contractors Make People Feel More Confident about Hiring You over Others
Having insurance means you care about your business enough to cover it for eventualities. For your clients, they will know they're not liable for anything that happens on their property due to the negligence of the contractor.
Insurance is another way to put clients at ease, while making your services far more attractive to them. It also makes your business more appealing to subcontractors, potential employees, and others you may need to hire.
Bonded Contractors Show People You Guarantee Your Work
A bonded contractor is one people can trust to finish the work their contracted to do. Bonding creates a guarantee potential clients can view as something akin to a "money back guarantee." If a bonded contractor doesn't fulfill their contract, the client can make a claim to receive the money back from the bonding company.
The client may instead make a claim for the funds needed to finish the project adequately. As there's different types of contractor bonds, you'll have to choose the right ones for your particular services. When a business has the surety of a bond, it makes them even more attractive to potential clients.
Depending on your location and the nature of your services, you may need all three of these things by law. Even if you don't, it can still help your business a great deal to obtain them. Gaining and maintaining licensing, insurance, and a contractor bond can go a long way towards keeping your business looking good to potential clients.