How to Start a Building Contractor Business

Building contractors are essentially planners. Commercial contractors handle office buildings, schools, shopping centers and other large projects; residential contractors work on private homes, either building them from the ground up, or constructing an addition or making home improvements. Contracting requires knowledge of excavation, framing, roofing, insulating and finish carpentry. The contractor depends on subcontractors for many of these steps, but must understand each phase and how to coordinate them all into a smooth-flowing sequence of events.

Things You'll Need

• Tools
• Truck
• Business Cards

Suggestions

1. Obtain a business license and a builder registration number if one is required by the state in which you live. Also make sure you (and the subcontractors you hire) are covered by liability insurance.
2. Compile a portfolio of your work that you can show prospective clients. You can present prospective clients photographs of your work--including work you have done on your own house, for friends, or work as a subcontractor or general contractor--or actually take them on a tour. Convincing someone of your ability to construct the building they have in mind is the first step in acquiring a job.
3. Produce a building plan. Most municipalities require a plan to be prepared by a registered architect, due to the building codes involved. An architect is trained in building design and will foresee and resolve potential problems, and come up with a pleasing, practical and creative use of the space. The contractor usually cannot provide this dimension, since his job is building execution.
4. Prepare a written estimate for the job, broken down by labor and materials costs. Typically, subcontractors are used for excavating, roofing, framing, electrical work, and plumbing and heating. Each subcontractor provides an estimate for his phase of work, and that amount is factored into the total. The cost of all materials used must be estimated, including everything from roofing to items as simple as switch plates. Labor for each worker should also be included. A well-prepared estimate will include an itemized breakdown of all the costs, with a total job cost tallied at the end.
5. Meet with the prospective clients and try to win the job. The clients may have received other bids for the job. While some compromise might be possible, a basic rule for a contractor, is "don't lower your price simply to get a job." If a job is bid too tightly and one phase takes longer than expected or the weather doesn't cooperate, the contractor can end up paying the extra costs. By providing a detailed estimate and explaining charges to clients clearly, a fair and accurate cost for the job can be reached and a contract can be signed.
6. Start the job. It's now up to you to coordinate all the aspects of the project so that work does not overlap. The sequence starts at the ground and works it way up: excavation, foundation, framing, mechancials (HVAC, plumbing, electric), shell plus windows, doors, siding, and roof. The interior work comes last. Each of these steps must be scheduled with individual subcontractors and integrated into the work flow. Managing your first job well will become an important resource and reference for gaining other jobs on your continuing journey in the business of building contractor.

___________________________

Custom Business Cards

 

How to Start a Welding Contractor Business

If you are a welder and a self-starter, opening your own welding business could prove to be extremely satisfying and lucrative. There will always be a demand for welding because most homeowners aren't capable of doing it on their own. Being your own boss isn't without its challenges. To be successful, you must establish a name for yourself by providing excellent customer service and competitive prices. You must also stay on top of the financial aspects of your business, such as accounting, financing, hiring and firing of contractors, payroll and finding ways to cut costs.

Things You'll Need

• License
• Equipment
• Tools
• Insurance

Suggestions

1. Get certified as a welder. Sign up for training with an accredited school (see Resources) if you are not already experienced with welding.
2. Apply for your welder's license and take the exam. Requirements vary by state, but you may be required to have on-the-job experience. An exam and license fees will be about $300 to $400. Contact your state license board to see if you need to acquire any additional licenses.
3.  Consider starting out as a mobile welder. This will save you thousands in overhead. Plus, because most of your jobs will be on-site anyways such as at bowling alleys, farms, restaurants, mobile home dealers, truck stops, it makes sense. Once you've gotten a feel for owning your own business, you can open a physical location.
4. Purchase welder's insurance. You will need liability (at least $300,000) and worker's compensation insurance if you will have employees. Contact Traveler's Insurance (see Resources).
5. Purchase must have tools and safety supplies such as a tig welder, mig welder, cylinders, stick welders, plasma cutters, fume extractor, welding helmets, respirator helmets, protective clothing, welding blankets, welding goggles, welding clamps, turntables, ground clamps, cable connectors, power tools, abrasives and hoists from Weldingmart.com or Djvmerchandise.com (see Resources).
6. Purchase a van. Then advertise your business on your van using vinyl lettering or custom signage from Customonlinesigns.com. Check out Craigslist.com for deals on vans.
7. Contact other contractors such as plumbers, electricians, carpenters and HVAC repairmen about exchanging services. Give them your business card.

___________________________

Custom Business Cards

 

How to Start a Small Electrical Contractor Business

Electrical contracting is a lucrative career for the skilled professional. As a licensed contractor, you will have taken the first and most important step towards earning significant money in this field. In addition to the salary you will pay yourself as a contractor, you will reap the financial benefits of running a profitable business. As a business owner, you will be in control of determining which projects are most profitable, marketing to this end and controlling expenses, all of which will directly impact your profit margin. In some communities, the competition may be intense, so excellent work quality and good business skills will be important to your success.

Things You'll Need

• Electrical Contractors License
• Business License (sometimes called Occupational License)
• Electrician Tools
• Computer
• Telephone

Suggestions

1. Secure your electrical contractor license in the region or community where you intend to work. Many government entities require licensing in professions that have the potential to cause harm to the public. The license is credible proof of your proficiency, as well as, your ticket to making money (See References).
2. Get your local business license. Your business license is generally a requirement of your local community, enabling you to do business legally. In addition, you may require a zoning ordinance, if you plan to work out of your home.
3. Create a list of potential customers and develop ways to reach them. Determine if you will serve the residential, commercial or industrial markets, or a combination of the three. Visit your local library for business resources, such as ReferenceUSA, a database of residences and businesses in the United States. Use the available data to target your best and most profitable customers.
4. Generate a system for estimating and/or bidding on potential projects. Decide if every residential estimate requires a walk-through of the home, or if some projects, such as ceiling fan installation or recessed lighting installation, can be quoted over the phone.
5. Investigate your ability and cost to secure a surety bond, which is required by many governmental and commercial entities before beginning work. The surety bond guarantees that you will carry out the work, as agreed. In the event that you are not able to complete the job, the homeowner can seek financial restitution up to the amount of the project cost.

Tips

• Once you open your business, give your business card to everyone you know. Tell them what type of work you are specializing in, and ask for referrals.
• Do not attempt to set up shop as an unlicensed electrical contractor. In addition to being illegal in most areas, you may cause irreparable harm to the work sites and the people who live and work in those places.

___________________________

Custom Business Cards

How to Start A Contractor Referral Business

If you are interested in starting a local product/service provider referral service, here's how to get started.

Suggestions

1. There are a few ways to start any local referral business. You can go about it one of two ways. OPTION #1: Offer contractors to join your referral service for a monthly fee, and then post their information on a well advertised website for people in need of their services to review their company information. (Visit Servicemagic.com for an example of contractor information sites).
   OPTION #2: Here you will set up a website where you let project owner's post their projects for Free, and charge contractors to become members to access the posted projects. (Visit bidclerk.com for an example of project posting sites).
2. For the first option you will need several members on your sales staff. You will need to contact many local product and service providers to promote your new business. Explain how the public will find the information, via a telephone number and/or website, as well as how you will advertise to the public to get calls and visits to the website. The important thing here is to keep track of the number of calls/site visits to be able to give an accurate number of potential leads each new member can expect. It's probably a good idea to limit the number of members for each trade heading (no more than 3-4), so that each one has the option to bid each project for their trade, at least until you are getting enough requests to support multiple members.
3. The second option will probably be a bit easier to sell and will be done via a website. I would start advertising for "FREE Project Postings" immediately, as the more posted projects you have available, the more members you will get to purchase a membership to your website. You can get immediate postings by contacting local builders and general contractors to see if they are in need of any sub-contractors. This will help boost the number of listings you have. You could also look in the help-wanted section of your local classified ads and post flyers anywhere you can promoting "FREE Project Postings."

Tip

• Search the internet for other "Referral Services" and get more ideas from these sites. ServiceMagic.com is a great example of posting CONTRACTOR INFORMATION. BidClerk.com is good to reference for posting PROJECTS.

___________________________

Custom Business Cards