Building a Strong Business
October 23, 2023
The SBA Surety Bond Guarantee Program is designed to assist small and emerging contractors, often minority or woman-owned, obtain surety credit. Merchants Bonding Company is invested in this goal as well through our partnership with Peter Gibbs, president of Foundation Surety & Insurance Solutions. As the former director of the SBA's Surety Bond Guarantee Program, Peter's knowledge of the system, and how to navigate it, is invaluable to contractors seeking surety credit.
While obtaining surety credit is an important accomplishment, Peter is also interested in contractors' longevity and helping them build a strong business that will grow and flourish. To that end, he distilled his years of experience into a simple list of best practices:
Gibbs' Top 10 Tips for Contractors
1) Build a strong team to support your business, making a construction accountant a priority.
2) Establish a bank relationship to secure a bank line-of-credit for working capital purposes.
3) Partner with a professional surety agent to assist in the development and growth of your
4) Expand your sales volume through gradual and controlled growth.
5) Concentrate on a specific trade and master that class of business.
6) Do not expand into areas you do not have the experience to perform.
7) A joint-venture structure is not always a viable path to expansion.
8) Know your competition and be familiar with economic cycles.
9) Become familiar with Government Contracts and Operations prior to expanding into this sector.
10) It may be beneficial to perform a mix of public and private contracts.
For more information on working with the SBA Surety Guarantee Program, contact Peter Gibbs.