So, you’re a veritable Jack of all trades. And if you’ve been doing handyman work for a considerable amount of time, perhaps your next step is to start your own contractor business and turn your side-hustle into a moneymaker.
But, where do you start and how much will this new venture cost?
The good news is that if you play your cards right, you can begin your contractor business with little money, and you might even be able to fund your endeavor through up-front payments from your clients.
In the world of contracting, you have to spend a good amount of money on tools and materials. Because without these, you won’t be able to work or finish jobs. But what you’ll have to spend on startup costs will pale in comparison to your earnings.
Here, we’ll outline a few tips and tricks to help you start a contracting business from scratch.
It might be a nice thought to go out and buy brand new equipment for you to use on the job site. But some of this equipment is costly, and could run you thousands of dollars just for one large piece of machinery.
When it comes to starting out, it’s perfectly fine with buying used equipment. In fact, many companies purchase refurbished or used equipment at the outset just in order to get their business up and running. The customer may choose to purchase supplies personally on occasion, but most of the time they will delegate the work to the contractor. Please examine pricing before purchasing any materials; even a $20 price difference can make a significant impact in the long run. While comparing prices takes time, you might save thousands of dollars.
For example, maybe you need a backhoe or an excavator, or even a skid steer. Instead of forking over thousands of dollars for brand new machinery, you can buy used Caterpillar equipment and save a ton of money on startup costs.
Used equipment might not be as bright and shiny, or have that new backhoe smell, but it will get the job done and get you on to your next payday.
Running a successful business has a great deal to do with hiring the right staff. And hiring the right staff might be a difficult task, financially speaking, right when you’re starting out in your contracting business.
To begin, consider how you want your team to manage business property both on and off-site. Is it true that you pay them for breaks, and if so, how long should they last? You can avoid schedule delays or crucial blunders due to team members misusing their powers if these standards are stated and maintained.
Contractors and experienced labor can be costly. And this is because of the fact that anyone who has significant experience in a particular field wants to get paid what they’re worth. The customer may choose to purchase supplies personally on occasion, but most of the time they will delegate the work to the contractor. Please examine pricing before purchasing any materials; even a $20 price difference can make a significant impact in the long run. While comparing prices takes time, you might save thousands of dollars.
If you find yourself having more work than you can handle on your own while your contracting business is still in its infancy, instead of hiring experienced personnel, consider taking on an apprentice who is eager to learn and will do the work for less pay.
You’ll not only be able to teach your apprentice the finer skills that you’ve learned along the way, but you’ll also be able to save money in the place of hiring seasoned workers who demand higher hourly wages.
If you’re going to be serious about being in business for yourself, then you’ll have to get serious about marketing. And while marketing typically requires an investment, there are several ways you can market your business for pennies instead of dollars.
While marketing agencies can charge hundreds, if not thousands, of dollars for a marketing program detailed to your business goals and needs, you can also handle a large portion of marketing on your own. And you can do this in the form of incentives and word of mouth.
For example, if you’ve just done a job for a client, offer them a small cash award for landing you a referral. This doesn’t have to be anything big. In fact, you can offer $50 for each referral that takes you on as a contractor.
Running a business takes a lot of time, patience, and a whole lot of love. Once you’ve begun making moves forward and start gaining traction within the contracting world, you’ll be able to afford those bigger expenses that you’ll ultimately need to make to have a successful business. But remember, you might have to start out small before you can reach your business goals.