I was wonderin’…
Ive been thinkin bout openin a small time contractin company next year and I was wondering if any of you have advice. I intended on partnering up with my former second. We only have 16 yrs. experience; combined. I have lined up subs that i have worked well with. Have bid side projects well in the past . Read quite a few “for idiots” books on starting your own company. Lined up my insurance and accountant. And, finally, have plans to saturate the county with fliers 3 months before leaving my current boss.
am i missin’ somethin’??
Replies
It may be hard to line up enough work for your own clients to stay busy in the beginning. You may want to sub work from other contractors, maybe even your current boss. If you go on your own will he give you some work?
I tried lining up sub work for other carpenters and got favorable results.
The only problem is a year is a long way off and having enough work volume is what bothers me most...
do good work and you will have plenty of it!
take good care of people who get you work.
put your name on the side of your truck.
never give a break for cash payment, claim every cent made and make your bottom line from tax deductions.
put everything in writing, especially when working for friends or relatives.
At first you will work long hours. after a few years in business you will find a lot more free time.
good luck.
Edited 3/9/2004 10:05 pm ET by maverick
Subscribe to the Journal of Light Construction. They have great business articles in every issue. You'll get a contractor's rate on the subscription.
Ask anyone you have worked for to write you a letter of reference. Put them all in a three ring binder. Carry it with you at all times. Offer to show it to anyone who will look. Be sure to not just put out fliers, but to personally introduce yourself to business people and anyone else you run into. Be sure to hit the real estate offices. Offer to do the smallest of jobs on the tighest of time frames. That is often a need in the real estate biz.
Good luck!
Something is what it does.
thanx i hadnt thought about real estate offices and how they always need work for co's
Just a friendly hint...
Realtors hate spending money - as do property managers. Every cent they can squeeze you for makes them look good. You really need to know your overheads and profit requirements.
Quality repairs for your home.
Aaron the HandymanVancouver, Canada
Hearing about real estate offices reminds me, my grandfather was an electrical contractor. Much of his work was for banks. When they foreclosed they'd bring in a crew and renovate a place to make it sellable. Foreclosure properties often needed work.
Back then most of his work was converting from gas lighting to electric lighting. Not much call for that now, but foreclosures are still going strong.
Welcome to the board. Always glad to have a new face around.
About once a month there's someone here asking about starting out on their own as a contractor. If you want to dig through the archives, you can find dozens of threads on the subject.
One of the common themes I've picked up on from those threads is that it's more important to be a good businessman than a good caprenter. I'm sure you'll see that in the threads too.
Hang around here and you're bound to pick up a lot. There's a lot of B.S. mixed in with some really intelligent advice. You'll learn more here than you ever will reading books.
A terrible thing happened to me last night again.
Nothing. [Phyllis Diller]
Interesting article on that in FineHomebuilding Magazine in the March 1996 issue #100.
Titled "My First Year in Business" by Nicholas Petrie.
Hey Rez, that article isn't available for purchase in the archives (Best of FHB). Is there any other way to get it?
Ebay sells backissues. A lot of good reading for the money.
On the back cover of Issue #1 it tells you how to build a snow igloo from a native american.
So much for that brainwave who accused Taunton awhile back of never putting pics of anyone but caucasians in the mag. :o)
Edited 3/8/2004 7:02:21 PM ET by rez'b&g
"how to build a snow igloo from a native american."
I've usually seen them built with snow and ice<g>
Jon Blakemore
I dig that out every now and then just to re-read it.
It should be on the main page as a constant link.
JeffBuck Construction Pittsburgh,PA
Artistry in Carpentry
Make sure:
1) You know how to manage money and cash flow (or have someone who can).
2) You know how to market yourself (and are willing to take the time to do so).
3) You have a decent record-keeping system (and the will to keep it up to date, even when the excrement is percussing the ventillator).
4) You have enough cash to see you through the lean periods.
5) You have a secure marriage.
Invest and buy tools now before leaving your current job. Especially any extension ladders, and possible staging that you will need for exterior work.
Think very, very hard about specializing in one aspect rather than doing all jobs.
Be willing to work 12 hour days or longer every day for the next year or two or don't get into this business...period!
Don't lower your bid price for no one. Better to lose a bid, than to work your butt off and wind up losing money or making very little.
Don't bother advertising in newspapers...word of mouth is best way. As for mail flyers...sent out 300 one time, got 2 calls...one actually did pay off, other was a "handy-man" type caller...no dice. Soo, 2 responses out of 300, and only 1 real lead...flyers are hyped too much...not really that effective.
Get signs made up for your vehicles and for jobsite. People tend to call if they see your truck or sign around after awhile.
If you are into roofing or siding or windows or such that is visible from street, do some "cold calling" to neighbors on same street you are working on. Chances are good some sidewalk "superintendent" will want you to do the same kind of work to his/her house next.
Don't do too much work in isolated areas; unless they pay awfully well....isolation will keep you isolated from potential clients. People need to see your work and you doing the work.
Make sure you have a 3 month minimum reserve of money to pay any and all household bills you currently are paying. A 6 month reserve is far better. I personal;ly had a 1 year reserve...and I used it up.
Set up your van or truck to efficiently transport your tools and anticipated materials in all kinds of weather.Again, buy the necessary tool boxes, racks, caps/trailers and such now BEFORE leaving your current job. If you don't have a truck or van, buy one, or don't go into business...period.
Set yourself up with a local lumberyard...get to know the personnel there on a one to one basis. Be able to set up an account with them. Use their expertise whenenever possible for answering trade questions, product concerns, locating additional subs, etc.
Set aside a place for a small office; whether it be in your garage or in your house. You must keep accurate records and need a place to conduct business. A copier and a fax machine is a definate plus. A nearby phone jack, work table ( for researching bid drawings) and calculator is essential.
I could go on and on, but hey, whadda I know? I've only been doing this on my own for 40 months, and only now is my efforts really starting to pay off. People are finally recognizing my truck and name at jobsites and so I am getting calls. Word of mouth can be slow at times, but unfortunately is usually what works. Advertising is usually waste of time...at least it was for me. I'm still thinking of specializing...it would be much less hassel. Thinking of specializing in doors and windows only. Right now I do siding, roofing, decks, plumbing, electrical, cabinetry work, basement conversion remodels, concrete sidewalks and porch work...you name it....even heating and cooling work. Requires a LOT of specialized tools and sometimes a LOT of scaffolding and manpower. Working closer to the ground would eliminate a lot of these headaches.
LOL.
First few years are a tough road to hoe...after that, it gets easier.
Davo
Davo that was excellent and should be forwarded to the web host for permanent posting.
Davo, that was an excellent post, pains me to see people making the same mistakes I made sometimes.
Couple points I'll add, making contact with property managers and real estate firms is a great idea and will yield lots of small jobs to keep you busy in between the larger ones where you'll make money & reputation. Only thing to avoid on these type of situations is doing so many small jobs for realtors that you are running around for them constantly and become an employee of sorts because you depend on them for your earnings since you are doing 90% of your work for the one company. They can then bargain you down on costs and have you running around for 'emergency' repairs for short money.
Also, unless you are a master craftsmen at one discpline(and live in an area that can support you in your niche exclusively) let the market decide for you what your specialty should become. I've done a fair amount of travel in the past few years and have noticed the distinct different needs in areas for different trades; some areas have a surplus of tapers and plaster guys, some are desparate for them. Some areas it is easy to startup a cabinet business, other areas there area surplus of them.
Lastly, hire good help who will create business via existing reputation or impressing clients on jobsites with great personality(far more important than work, a grumpy master trim guy is worthless if he tracks mud all over the house and makes client's uncomfortable with his language/habits). Nothing will sink you quicker than calling clients to reschedule because your help didn't show up.
-Ray
Many thanks for taking the time to put down those thoughts. That was great. I second the permanent posting idea.
Dana
Salmon Falls Housewrights