How to Start a General Contracting Business

Owning your own general contracting business is a wonderful feeling. Yet starting one can be complicated and frustrating. Here are some vital steps and tips to help you get your business off to a good start.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• Tools
• Place to store your tools
• At least one pick up truck
• Workers' compensation Insurance
• Employers
• Office space
• Office supplies and equipment
• Liability insurance
• Business ads announcing your new business
• Business cards

Gather all the tools you will need

1. Tools are vital to your business. You will need many things, including hammers, screwdrivers, drills, saws, edgers, levels, chalk liners, measuring tapes and bits. You may want to go to your nearest hardware store and apply for a line of credit or a credit card to help you purchase some of these tools. You may even want to apply as a business owner. Many times, you can get lower rates and special credit deals as a business owner. Some hardware stores even have special hours (especially early-morning hours) when contractors can shop and save a percentage of their total purchase. Ask a manager at your local hardware store if they have any of these incentives. You will also need a place to store your tools. These means you should purchase some storage boxes and tool boxes. If you happen to have use of a garage or a shed, this would also be an ideal way to store and organize all your tools. You will also need at least one pickup truck in which to haul the supplies and materials you will need on jobs .If you don't have a pickup truck, try to find a used model. Remember that you will be using this truck every day; thus, you will be putting many miles on it, and it will accumulate normal signs of wear and tear, such as scratches and dings.If you need to take out a loan for this truck, you may want to use the name of your business when you apply for the loan. The loan payments can then be used toward your monthly business expenses.

2. Decide how many employees you plan on having (at least in the beginning). You need to make this decision now, because you will have to file for workers' compensation. This is a state insurance for all workers, and you must make sure you have it.Once you decide on the number of employees, apply for your workers' compensation. You can do this over the internet at http://www.workerscompensation.com/.The amount you will pay will depend on such variables as the state in which you live, the number of workers you have and the type of general contracting you do.Once you apply and make an internet payment, the site will automatically allow you to print up a certificate you can display.

3. Set up a place to call your office. This could be a rental office, or it could just be a space in your home.You will need a desk, a place to store your files (filing cabinet or storage box), a calculator, possibly a computer, a phone with an answering machine, a fax machine (optional), a printer, a copier (you could save money by purchasing a machine that acts asall three), a desk calendar, etc. If you decide to rent office space, you may want to start looking for space by checking your local classified ads.

4. Begin the hiring process to get the employees you need. You can do this by placing a help-wanted ad in your local newspaper or on a local job site, and by word of mouth (telling your friends and family that you are now ready to start hiring).Consider doing a back ground check on potential candidates. To allow this, they will have to sign a release. The release will then have to be taken to your local police station, and you may have to pay a small processing charge.Remember, you may want to hire at least a part-time helper to meet your clerical needs. You can follow the same steps to hire a clerical worker.

5. Advertise in your local newspaper.Tell all your friends and associates that you are now taking estimates on upcoming jobs.Consider putting an ad on your local radio station.Have some flyers made up to advertise your business, and have these included in your local newspaper.Have some business cards printed up.Place a business sign on your pickup truck. (Check with your local licensing department to see if you have to switch to commercial tags).

6. As you are waiting for the phone calls to start coming in, be sure to have a list of references handy. Some potential customers may wish to see such a list, as you are starting a new business.Begin gathering quotes for some liability insurance. This insurance should pertain to allof the types of work you plan on doing, and should cover you and each of your workers.

7. Have your calendar ready to start scheduling those upcoming jobs.

Tips & Warnings

• Have patience, for it may take some time for your business to grow.

• Be sure to tell all your friends and family about your new business venture.

• Be sure to have a little bit of savings to keep you afloat as your business grows.