PAPER CONTRACTOR Versus BAGS ON CONTRACTOR

skyhook

He's the one with the white pleather shoes and Hawaiian shirt.
Takes the biggest chunk of money and hires the flakes in front of THD and calls them tradesman.

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nadonailer

I've been the bags on guy for almost forty years, and due to a recent illness, am going to experience being the desk guy now. I've always done both of course, but my paperwork always suffered because I love swingin the hammer,, or pullin the wires or whatever... But in my little area, most of the successful GC's are paper guys and they put out the best products. A couple wouldn't know which end of the hammer to hold, but they obviously know how to put a several million dollar home together. So we'll see, so far it's been difficult to not just grab the tools and do something instead of watching someone fumble around. Hopefully if I focus on the paperwork and marketing more, I will realize even more profits - that's the theory anyway

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Willie T

When I was quite young in the business, an older supervisor gave me some wise words about that. He said, "No matter what position you are in or to what level you advance, you can only be successful if you learn to use well the tools at your disposal in that position or level."

A man who aspires to be a top level contractor (and unfortunately, this usually means learning to understand paper pushing) will likely fail at that goal if he continues to desire to be primarily a woodworker.

I love working with my hands, and I love running a crew, first hand, but I've learned that that part of me needs to seek satisfaction in my home workshop.

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Bill Everett - St. Petersburg, FL

carolinahandyma

Some wise sage told me that as a business owner, it is important to work on the business rather than work in the business.

Meaning you need to be looking at the bigger picture (business plan, business goals, marketing, public relations, client relations, problem solving etc.) and have others (staff, subs, etc.) handle the bulk of the day to day work. Businesses don't survive unless someone is looking at (and doing something about) the bigger picture.

plazaman

agree! 100%

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Hartsdale Remodeling Contractor
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SelfContract

In this tough (cut-throat) economy, we need both skills to survive & compete:

So, Paper (book/theory/business) + Bag (practiccal/hands-on/experienced) = Good/successful/know-all contractor!

Heritage

It varies with the branch of the industry you're tackling. Paper guys would probably do just fine in the service call industries (electrical,plumbing,hvac, etc.) where you're running field guys from job to job. Focus on the business and keep the phones ringing. Guys in the field are qualified, supply them, have them run. Relatively quick turnaround, few unknowns.

Once you start getting into renovations, additions, new builds, custom work etc.etc., where you can anticipate being on a job for 1 month-2 years I think you're playing russian roulette with your bankroll. Sure, you might get out alive but there's always that one bullet.

Experience is paramount in any game. Put the time in, fall on your face enough times, keep getting up, learning, pay attention, love what you do and pray.

But hey, it's not my bankroll on the line!

All the "paper contractors" I know are snot rags that charge too much, pay too little, and have no actual attachment to their work. They just see it as a business plan. Right or wrong...I didn't get into this line of work because I DON'T love what I do. Right up there with the money is the satisfaction I get from putting out a great product and putting the hard gained knowledge and education I received over the years to good use for people that trust me enough with their biggest investments.

Personally, If I was a HO hiring a contractor for any significant project, I could give a flying squirrel puss how shiny your logo is, how flashy your website is, how nice your trucks are, how impressive of a business plan you mustered or how many jobs you have on the go. I want to know WHO I'm hiring and what their qualifications for the job are. Recent grads and paper pushers can take the long walk home.

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Merbs

At some point, if you want to grow your company you will have to give up swinging a hammer. It is impossible to do everything from design, sales, construction, marketing, and the books. You are gonna burn yourself out!! The sooner you realize this the better off you will be. If you look at the big remodeling companies out there, the owners are not swinging a hammer. They are salesmen!! If you think that working 70 hrs. a week handling everything in your business is the key to success then you are surely mistaken.

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Kitchen Design and Remodeling in Boston
Bathroom Design and Remodeling in Boston
Finished Basement Design and Remodeling in Boston

OGStilts

Gee, I haven't worn a tool belt since I was in college so I guess that means many of you are going around and cleaning up after me. I didn't realize that. I guess I owe all of you a big thanks.

Since everyone here is so good at throwing around stereotypes, I will say that most of my clients wouldn't even open the door for one of you tobacco spitting, butt crack showing, haven't shaved or bathed in 4 days contractors when you show up for a consultation. Is that fair for me to say about any of you?

I have never considered myself a "paper contractor" before but I know I'm not a tool belt wearing contractor so I guess that makes me a paper contractor. I thought we all have a lot of paper shuffling to do no matter how we run our companies. I just know that I can manage many more jobs at the same time without that tool belt getting in my way so I guess that means I have more paper to deal with.

Well, I need to get my pleather shoes and hawaiian shirt on so I can head down to HD to pick up my day laborers. Maybe one of them will teach me the difference between window casing and hip rafters. I will send all of you tool belt wearing contractors my next job address so you can come in and clean up after me again.

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Chicago Home Remodeling-
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buddy110

Agreed, as the owner of a company, you better b e able to do everything you ask others to do, from setting an appointment to installing a product

Absoulutely. Work on your business rather than in it

Ohmy

IMO, you are not a contractor if you wear a tools, your a foreman.

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Electrician in Alpharetta, Roswell, Atlanta

modterry

What do you want your business to be ?
Most of the comments here are by the person who is a trades person.
The focus is on the how well they make a product.

If you want a business that reaches maturity where , as the owner, you can take a vacation and it runs with out you - then that business has to be developed and grown with systems, organization and goals.

I have statistics, and can provide them to you. Go Look at Remodeling Magazine - March of 2009 - Article is about various sized construction firms in terms of sales , expenses, owner take home etc.

Most owners of companies below $ 1.5 Mil in sales wear many hats, Sales, Bidding, Admin, Purchasing, Job Supervision and Production. The survey showed that Most Owners in this group are really only making wages. Nothing wrong with that - it's just a business model that doesn't have the best margins.

The Companies that have grown beyond the $ 1.5 Mil start acting like a business and even had the highest gross profit margins. They have learned to duplicate, systemize, and figured out how to make a profit.

I do agree it is very helpful to have technical knowledge in the field, but a company never becomes more than the owner's ability.
I have a friend who runs a remodel company doing $ 3 - 5 Mil , does very well. He wouldn't know a hammer if he had one in his hand.

He is great at customer relations, subcontractor relations, knows his numbers inside out and is a good project manager. He makes 6 figures every year.

I have always liked the tool bag, can do just about anything ( usually far better than the subs I have hired ) and it has taken me until a couple of years ago to realize that without developing a systemized business I would never get sales above a certain level that would provide for me without busting my butt all the time.

Terry

dvon104

It seems alot of the responses are from "sub-contractors".....I guess all G.C's would be paper contractors ...because I do not know a "GC" who wears a tool belt and pounds nails ...They hold the license and hire the subs (bag contractors)....its 2 totally different types of work ...

JumboJack

I do.

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in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

Mike Finley

I think this is the article.

Thanks, it's a good read!

http://www.remodeling.hw.net/facts-a...hmarks-survey/

Winchester

I'm not a carpenter, I'm a businessman.

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Ryan

bconley

Any of you bags on guys need work? I've got to push more paper!
I've found that there is not enough time in a day to be both effectively.
I agree that having background in the trades is beneficial but for me that was easy part, compared to learning all there is to know on the business side of things.
In life and business you have to be constantly learning and pushing your boundaries, "bags off" is the next step in the progression if you want to grow as a business. Besides we don't get any younger.

Randall Murray

I know some "Contractors" make a very good living and they have Never put on a belt and I know some who will never take it off. I think if you love what you do and try to learn as much as you can about the business you are in everything will work out. I have been called a "paper contractor" because I don't have any employees, I only use trade contractors, Does this make me a "paper contractor"?

skyhook

And authorities hand out Contractor Licenses and building permits with welfare and UI checks.

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Ohmy

Yup, permits to the right UI to the left.

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Electrician in Alpharetta, Roswell, Atlanta