STARTING BUSINESS (Res. General Contracting)

Wildbillcody

I live in Southern Indiana and I am wanting to start a gereral contracting business for new home construction. $150k and up. I know I can manage subs/employees however/business, however I need to supplement the income I make know. My biggest fear is the transition from my current job to a new business building homes. I love residential construction, however all my experience is on the Commercial side. What would you suggest I do to assure myself that there is going to be enough work to suppliment my income. Also how would you advertise? Yellow pages, flyers, parade of homes etc. etc..... Any suggestions would be appreciated!

Thanks,
BC

Bob Kovacs

Are you talking about building spec homes, or building direct for a client on their lot? If you're not talking about specs, I'd say you're going to have a tough time convincing people to hand their cash over to you so you can experiment building their homes to "supplement your income". Before most folks part ways with $150k plus, they want to see a builder's past work- whether it was for themselves or for a previous employer (preferably the first).

Your best bet would be to buy a lot and put up a spec home as advertising. Of course, that'll cost you quite a bit of cash, but that may be what it'll take to get a name started for yourself. Other than that, 3, 4, or 5 years working for a builder would get you a track record, reputation with the subs, etc., and may make it possible for you to start doing your own thing.

Bob

Wildbillcody

I'm primarly want to do custom homes. I understand about jumping in head first. Everyone want's track records. My wife and I are wanting to start on our new home. We have the parade of homes in our town. If your not familiar with this, it is a contest in different home divisions. Example: 100k lower, 150k and lower etc. etc.. Anyone can go into the homes, inspect ask questions and look around. Pretty much just advertizing. What would you think about Myself building our home in the parade to start? Thanks Bob for your input!!!

Grumpy

Have you considered that all indicators.. indicate... that the new constuction market is drying up? This market will continue to dry as the interest rates rise. Yes people the bubble has burst.