6 Things To Know About Starting a Contracting Business

There are several things to know before embarking on a business in some type of construction field. Whether it be plumbing, electrician, or a roofing contractor, starting out right will increase your chance of success. Most new businesses fail due to lack of capital and improper planning.

Licence and Insurance 

You will need to obtain the proper licence for the field of work that you will be performing in. To obtain such a licence, you will be required to take a test to show you have the proper training and knowledge. The licence is usually good for a limited number of years and you will have to renew it. You should also be bonded and have adequate insurance to cover any potential mistakes you might make.

Tools 

Each profession will require specialty tools especially made for different types of jobs. If you are a plumber, you will need pipe wrenches, PCP glue, and several other things. A roofing contractor will need tools to install shingles, metal panels, clay tile, and a variety of other roofing products.

Transportation 

You will need a good vehicle to work out of, no matter what type of contracting work you will do. It must be large enough to haul your tools and the materials needed for the job. It will need to be dependable and you need to spend money on it to keep it properly maintained. Any time your vehicle is not running, you will have downtime instead of being on the job site.

Finding Work 

Besides doing your current job, you will have to line up work for the future. This will require advertising on radio and television, social sites, and perhaps maintaining a website. Great references are also a good source of future jobs as long as you maintain quality work on all your jobs. A lot of times you will have competition bidding on the same job, so you will also need to learn how to estimate material and labor costs.

Bookkeeping 

Taking care of records needs to be done for tax purposes and also to see if you are making a profit. This an be time consuming yet it needs to be done right. Outsourcing this work is an option, but you still need to collect and save all receipts of all job related costs.

Enough Capital 

Starting a contracting business will require a big initial investment. There will always be hidden expenses come up that was not in the original budget. Having enough capital will help ensure your success.

Doing any type of contracting work should be what you want to do. Work that makes you unhappy will affect the job you do and relationships with customers.

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