Info On Starting Business

bryank1202

I've been framing for six years, been a lead carpenter for 3 years, and been running jobs with lots of success the past year. Since the market is slow, I'm once again working under a idiot foreman who has worked at my company longer than me and I can't stand it. We got about equal knowledge, but I'm way faster and more productive than him and it seems like he tries to stroke jobs out a lot and it makes for a very stressful day. I've been trying to find a new job but no decent companies around here have work or need help at my level.

I've really been considering starting my own construction company doing mainly new construction, some roofing, decks, and additions. I have some experience bidding, but know I would have to do some studying. I don't mind working my ass off to get rolling, and since I work for a general contractor who subs framing out I could probably get some homes from them. I know I could make a lot of $ doing my own thing.

I was just wondering the steps I have to take and how much $ I will need to get rolling. How are the loans for this? Are there any banks that specialize in this? Should I get a business license asap before getting licensed in indiana to be a contractor? Is it even worth it with how the economy is right now?

GregS

If 'decent' companies do not have any work, then what is going to make you different?

Sure you can run a job, but you need to know how to run a business and make the sales to keep business coming.

I wouldn't quit unless I actually had a bunch of money in the bank that I could live off of until I find my first three jobs.. and even then you will probably need to wait a bit to get paid.

mark the coach

A good place to start is spend time on this site learning as much as you can by reading the threads on your trade, marketing, business ect.
Also many contractors have suggested reading The E-Myth by Michael Gerber. He has a short version specifically for contractors.
Also if you have a job now stay with it until you have a plan in place, jobs lined up and cash to ride out the start up costs.
Many contractors don't make it due to lack of planning and business training. Taking the time to develop a complete thorough business plan will save you alot of headaches and money.
Also speak to professionals for industry related advice. Seek out a professional team which includes a CPA (who works with contractors), Insurance agent, lawyer for proper contracts and maybe even a bank for credit.
Someimes there are local colleges that offer free business advice and planning for new entrepeneurs. In Mass an example is Clark University Business Department. They help many small start ups with the basics of business planning. It is also helpful to seek out a mentor.
If you do your homework and plan carefully you may avoid the costly mistakes many contractors make.
I recommend some basic steps to get started.
1. Goals; what do you want and need from your business?
2. Business plan; those who plan tend to stay on course
3. Marketing plan; who, where, how, lead generation
4. Sales process; how will I sell my services?
5. Production process; forms and checklists
6. Administration; bookkeeping, records, office filing system

The above is only some of the things you may want to consider.

A book that I recommend for goal setting is "Think and Grow Rich" by Napoleon Hill.

I wish you the best of luck.

mark the coach

Remodel Bud

Have you tried Score. That is professional advice for people starting a business. Highly recommend it.

http://www.score.org/index.html

Meetre

listen to the other posters...you don't sound ready yet. Maybe take a business class, get a mentor or involved in SCORE. don't get me wrong, if you want it bad enough you can make it work. just do some homework and make sure you are ready before you quit your job. you did say that you couldn't find another right now. So, let's say you don't take off right away and decide to get a job to hold you over untill you are busy. Where are you going to get that job? McDonald's? MOST SMALL BUSINESSES WILL FAIL!! Smarter people than you have fallen flat on their faces. Not being prepared will ruin you. Take your time getting going, maybe just start out on the evenings and weekends, take vacation time for a longer project, but make sure you have a backup plan incase you run into troubles.

And, go to the new members area and say hello. Guys around here like that.

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rsss396375

Now is the perfect time to start working on your business. I'm not saying to leave, because you may have a steady income right now, with insurance and benefits. Start studying for your contractors license and gathering testimony to your experience (if you need that in Indiana) You can get a business license in a day, so don't worry about that.
Now this is the key when you venture out on your own. Start cultivating the best helpers/framers for your business right now. Guys (or girls) that respect your work and ethics and that you can trust to carry out your orders will be the ones you want to take with you when you leave. You will need someone with equal or better skills in framing then you, because when they're hammer nails, you need to go out and get jobs.
DO NOT get a loan.....with the status of the market, you won't get one anyway right now.

rsss396375

thing...Someone you can trust with your money. Your accountant or book keeper will save your a** from sure bankruptcy. If you are married, have your wife take a basic accounting class and then have her take 5 more classes after that.
A good Enrolled Agent is better then a CPA any day. They are more knowledgable then a CPA in tax law. Sorry for those that know a CPA, but you know its true too, and so do they.
Anyway, tracking your money is really a challenge and you can grow old fast without one. I've seen too many contractors get killed through embezzlement.
You can do it Bud......

mark@hometowngc

I am new to this site and I have to tell you I am very impressed with the quality of advice given out. I am in my first year with my General Contracting firm, but I ran a subcontracting firm for 10 years. I am the business manager. My partner has all the expertice (20 years)for Project management. Something to consider would be 1.maybe taking on a partner, someone you trust, to run the business mngmnt side, including the sales. If you are working on the jobs you sell, it is very difficult to keep the pipeline going. 2. Go to the SBA site, they have a little quiz which may help you determine if you are ready to run a business. And they will tell you what you need to learn more about. 3. understand the difference between markup

mark@hometowngc

hmm...my post got cut off...like I said I am new here. understand the difference between mark up and profit margin!!!