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  • Starting a new Construction company help

    Hello im on my way for working on my own. I just quit my job last week and now im going to start my own company. I guess im looking for hints for a new Renovation company.
    I did work for a company that was a large millwork company, we install doors,kitchens and a lot of custom work both commercial and some Residential
    I know the first thing that i should get is a Business Licence and second thing is insurance

    Has any one ever used hd contract services? is there any beneficial on the contractor side? ( do you get any discounts?)

    any info/advice would be great.
    ________
    trichomes
    Last edited by RODDY; 01-22-2011, 11:33 AM.

  • #2
    Re: Starting a new Construction company help

    Roddy I tried to respond to your question twice, each time I deleted them.

    Theres a whole lot more to it then License and Insurance.

    H.D., buddy your barking up the wrong tree, right off the bat.

    I know nothing about you, how many years of experience, any business courses you had taken, the amount of tools, this list can go on and on.

    But if you are going ahead and do this, the main thing is to stay positive, even when that phone isn't ringing.

    I think it goes something like, the first year, 80% fails as a business, the 2nd yr, look at the same percentage of the remainder. Its a tough gig to get into and stay alive.

    But as long as your smart in business, have all the knowledge to perform the work, have your License and Insurance, all the tools, stay positive, you should survive.

    By all means, theres a whole lot more to all of this, but I'd be typing all night long, and my fingers are already hurting.

    But seriously, H.D., Menards, Lowes, stay away from performing sub jobs from them. They pay so dang low, its not even funny.

    Ledger everything you do, you need to keep a detailed book, money wise and work wise. This helps in future bidding.

    Good luck........
    Last edited by garager; 03-10-2008, 04:52 PM.
    Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

    http://www.contractorspub.com

    A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

    Comment


    • #3
      Re: Starting a new Construction company help

      Hint #1, NEVER start a contracting business in the middle of a housing recession.

      Better to break bad news to you than tell you what you'd like to hear.

      Comment


      • #4
        Re: Starting a new Construction company help

        Originally posted by DuckButter View Post
        Hint #1, NEVER start a contracting business in the middle of a housing recession.

        Better to break bad news to you than tell you what you'd like to hear.
        Thank you for that one, I said it twice and deleted it. Bush followers might of, jumped all over my ars, now they can do it to you.

        Bush does say, theres no declining going on. Yep, hes trying to make it look like he knows more then we do.
        Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

        http://www.contractorspub.com

        A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

        Comment


        • #5
          Re: Starting a new Construction company help

          well I dont live in the usa.. i live in canada (regina saskatchewan) right now there is about 2-3 year wait for a new house......so i dont think we are in a middle of a housing recession

          any way I own a lot of tools..I have bin a cabnet install for the last 6 years (we had to supply all our own tools)
          the shop i did work for started out with 2 ppl in 2000 and only made furniture and now it has about 35-45 employess and makes furniture to custom everything kitchens to you name it.
          I never thought about keeping a diary for work or money...

          thanks for the heads up on the box stores......but can i still sign up to get a contractor rate on tools and products or is that just a Fancey credit card?

          any other hints would be great
          ________
          vaporizer shop
          Last edited by RODDY; 01-22-2011, 11:33 AM.

          Comment


          • #6
            Re: Starting a new Construction company help

            hi
            my flame suit is on .
            1 you are here asking for help ,and you are going to run your own business?
            back to the real world , most people will ask you for referances ,"jobs you have done " .be honest , if you lie you are just another stupid contractor that everbody hates.
            how much money do you need to live each week 1,000-1500 should be correct. when you bid your jobs bid then matials and then labour rate extra.
            do not charge above what the matials cost you ,again be honest with your clients ,word of mouth and quality of workmanship will build you a strong business.
            use a discount newspaper to get the word out ,you can call some of your local general contrators and tell them your hourly rate and do not be afraid to lean a property to get paid .remember you are in business for your self ,you desreve to get paid when the job is complete if the general says 30 days for cash then on 31 day lean him if no pay .
            you live in canada get a goods and service tax number and "quick books " good accounting software.

            Comment


            • #7
              Re: Starting a new Construction company help

              Roddy5,
              Yes, you can get a discount from the HD is you have an account with them. A revolving business account at our local depot results in an automatic 10% discount on all orders. If you spend $2000 or more on your order, it doubles to 20%. I recommend doing side jobs at night while you work doing the day.

              Comment


              • #8
                Re: Starting a new Construction company help

                A few things that I would tell anyone in your position of attempting to go out on your own is:

                (1) Realize the difference between "knowledge of your trade" and "knowing how to operate a BUSINESS"...many people (including myself) have made this mistake!

                (2) (I believe this was already mentioned but) Look into taking a Construction Management course (or two) in your leisure...so that you can sharpen your "business-sense".

                (3) Invest in a PDA phone that allows you to receive your important emails while on the go!

                (4) Invest in a good copy of "Contractor Business Forms" software...oh...and a copy of Quickbooks for Contractors!

                (5) Try and keep your overhead down by working from home for the first year...don't even think about getting an office front until your workload demands it.

                (6) This one actually should have been at the top but I just assumed that it was a given. Make certain that your licensure is up to par and that your insurance is the "correct" insurance for the services that you plan to offer.

                (7) Invest in a fax machine or simply get an online fax number that forwards your faxes to your email, which you will retrieve via email in a PDF file and respond. Customers will periodically ask if its okay to fax you something and when your response is, "I'm sorry but I don't have a fax number"...........well........I think you already know the rest!

                (8) Last, but not least...get in the habit of making just as many follow-up calls as you do with new leads! Customer Service is going to be the ONLY leverage that you have against the larger joes...especially in the beginning!

                These are just a few things that came to mind when I saw the post but as others read this...I am certain that I left off...maybe 1,000,000,000 others......so, that being said...some things you are gonna have to learn the hard way Buddy...like I did!

                P.S. Oh and like someone else mentioned above...don't even think about subbing for any of the big box stores when you're starting off, unless you wanna end up living in their parking lot!!!
                Last edited by C3DesignBuild; 04-17-2008, 02:24 AM. Reason: Would much rather offer constructive advice rather than PERSONAL...
                (Lookin' through a family photo album with a friend)

                "....yeah...so...there's my mom, and next to her is my baby brother Jason...and the guy right there holding Jason...yeah...him...the one with only one hand is my uncle Tony "Tablesaw" Thomas.....guess why we call him "Tablesaw"....

                Comment


                • #9
                  Re: Starting a new Construction company help

                  I have been watching this post since its inception and have wanted to post but for some reason have hesitated.* I have been in a number of business and there is nothing like it in the world.* I absolutely love it.* I could list the things I like about it but the post would be far too long.* A few things I have learned along the way are:
                  As soon as you go into business what do you have in common with General Electric, General Motors, Ridgid etc?* Making money.* There is only one legitimate function of business and that is to make money.* The old saying that, "Business is business"* always applies.* You would do well to remember it.
                  When you work under the table don't tell anyone about it, no one, not even your wife.* Because she is your wife now but who knows...* And if no one knows well...
                  When you do work under the table try to keep it to a minimum.* I owned a fleet of garbage trucks (if you can call five a fleet.)* One of my competitors, at the time it was all friendly competition, was stealing from the IRS big time.* This was in the 70s when we had to go into everyones backyard or garage to pick up the garbage.* Many people left money on top of their garbage cans each week to pay for the service.* Some of it never was reported as income. On-street, curbside pick up was unheard of then.* The IRS tailed him and he knew it.* He told me their estimate of his earnings were within* $500.00 a week of what he actually took in.* At the time I had about 4,000 residential customers and he had about the same.* The problem with under the table work is it can get out of hand.* Very few bank robbers would get caught if they only robbed one bank.* What happens is they turn into pigs.* They get a little taste of the swill and want the whole thing for themselves.
                  I mentioned I had five garbage trucks. I started with one. Within two years I had five. That rate of expansion is way too fast. Controlled growth is the answer. Listen to your paid advisors, accountants, lawyers etc. You don't always have to heed their advice because you know your business best, but listen. And don't lie to them. If your truck is worth $5,000 and you need a loan don't list your truck as worth $10,000 of collatteral. Tactics like that will, sooner or later, come back and bite you in the butt. Hard!

                  Banks can be your best friend. Present financial crisis in the US housing market not withstanding, if a bank will loan you money they are pretty sure they will get their money back and you can be pretty sure your business will be on sound financial footing.

                  Another thing you may wish to remember is, "Partnerships are damn poor ships to sail."* I suspect there will be the inevitible down times when a cash infusion would seem like a good thing.* Think long and hard before you accept a partner.* I have been there.* It is a stinky place to be.* Make it or break it on your own.*

                  I have been up and down the ladder of financial success so many times I have the rungs worn to the size of toothpicks. I am currently up, working for company, and ready to chuck it all and start another business of my own. From a purely financial standpoint it makes absolutely no sense. But there is a high that can't be reached working for someone else. There is an indescribable satisfaction that derives from identifying, and solving problems by yourself.

                  Keep enthusiastic and you will do well.

                  Comment


                  • #10
                    Re: Starting a new Construction company help

                    Again with those damn astericks.* Must be something with this laptop because my PC doesn't do it.* Sorry.Tom

                    Comment


                    • #11
                      Re: Starting a new Construction company help

                      As Tom mentioned, Lawyers....

                      Its sad, but we need them, so when starting out, have at least $2000.00 just for a Business Lawyer. He/She will set you up, thus you will be separated from your business and you will be personally protected. That Lawyer will also have all the proper forms (proposals, contracts, lien wavers, and so on) thats right for your type of company. Actually, get more then $2000.00 to start out with a Lawyer. Its a must these days, me I want to keep my house, my bank account and so forth.

                      Your business must be separated from your personal belongings. Meaning, don't go out there and buy a wrench to keep at home but to use it as a write off, don't mix together bank accounts. Have you work vehicle just as that, not as personal and work.

                      You need a CPA, thats a must. And run your business as a business, stay away from friends and family until your up and running and doing fantastic. Theres so much to running your own business, but if you jump with out a game plan and knowledge, I'm afraid it won't work. But so far, just in here, the tools that are given to you, will help you right along...
                      Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

                      http://www.contractorspub.com

                      A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

                      Comment

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