How to Run a Successful Contracting Business

how to run a successful contracting business contractor company

Being a contractor has added responsibilities that the average brick and mortar business does not experience. A contracting business often relies on word-of-mouth recommendations to gain new customers. The services provided don't always mean repeat visits. 

Despite this, being a contractor is a very profitable business and there are many small and medium-sized businesses earning six to seven-figure incomes. 

Are you considering taking your craft and starting a general contracting business? Keep reading for tips on how to become a successful contracting business owner. 

There are Various Contracting Businesses 

There are numerous types of contractors. The most common is a general contractor. This is someone licensed to do work in the construction industry. A general contractor doesn't have to do the actual work. Instead, the GC will hire subcontractors. 

If you have a specialty skill, it is best to start a business in that area to become a successful contractor. 

Get Licensed and Insured 

If you're serious about running a successful contracting business, you'll study your craft and get licensed. A licensed contractor can pull permits with local governments. They can also bid on government contracts.

Once licensed, get your general liability and workers comp insurance policies. For commercial projects will require a certificate of insurance. Check it out here. 

Build a Strong Team 

Building a strong team is the biggest challenge contractors face. When work isn't readily available workers explore other opportunities. Pay your workers fair wages. Pay them on time, and provide on-the-job-training so they can improve their craft. 

If you treat them fairly, your team becomes family, and with that comes loyalty. 

Invest in Marketing 

Once you start your contracting business, how will people find you? As with any business, you'll need a marketing budget. Lucky for you, there are several home services websites that connect customers with the right contractor. 

Google also offers marketing tools to help you get noticed and grow your clientele. 

Honor Your Agreements 

Contractors should provide potential clients with a detailed estimate of the services they will provide. Apps like Quickbooks are great because they allow you to submit estimates and invoices online. 

Plus, you can connect the app to your bank account. This allows your business to accept online payments directly from the customer's invoices sent electronically. Imagine the time you'll save not having to ride around collecting payments, and making trips to the bank. 

Always honor your contracting financial and building agreements, you certainly don't want to end up Catch A Contractor or a local news story!

Use the Latest Business Software 

There are many customer relationship management tools on the market to ensure contracting business success. These tools allow you to operate the administrative end of your business online. Instead of paying for a full-time administrative assistant and office space, invest in a virtual assistant for a fraction of the cost. 

Build the Brand of Your Dream 

A contracting business is a smart opportunity. Follow these tips, and you're well on your way to creating a contractor company you can pass down for generations. 

Are you looking for more contractor business tidbits and ideas? Keep checking back for the articles in our Startups section for more contracting business tips.

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