When To Become A General Contractor?
As soon as you can pass the damned test and pay the ins.

When to become a basketball/football/baseball player? Or a golfer?
As soon as you can pick up the ball.

Tiger Woods I think was 3.

This I am going to tell you is factual: The first time you do a lot of things in this business you are going to fck up. And that will happen whether you are 20 or 30 or 40.

So, the sooner you get the fck-ups out of the way, the sooner you can start practicing your good game.

All I got. cya

 

Okay good points and I appreciate the input. However would you not complete 4 years of apprenticeship? How did you get into the business? Thanks

 

Like I said. All I got. My path is not yours. If you don't feel you are ready, then you aren't.

If you wait for someone else to tell you that you are ready, you never will be ready.

And that is true for everything in life.

 

Well thats probably the best advice I could get. Changed my thought process and view point. Thank you

 

Just saying but a GC should be well beyond any apprenticeship with many years experience in interacting with and knowledge of all trades, able to read carpentry, electrical, and plumbing blueprints, not to forget a thorough knowledge of business and codes. Along with a sizable bond in the bank and insurances.

A GC should be able to spot at a glance any mistake by any trade, simply because he or she is running the show, and signing their checks.

 

I'd wait 5 years at least.
Homeowners wont trust a 20 yr old even if you are the best.
Fill up on the knowledge you dont know.. way to start early :thumbsup:
I didnt realize my calling until I was 1 semester away from a bio degree (grew up in home renos as well). So happy I'm not in a lab or behind a desk.

 

You may be able to do a lot of different tasks.

There are tasks you have probably not done that come with owning a construction company:

Marketing.

Negotiation.

Accounting.

Business law, employee law, tax law, local codes etc...

If you want to succeed I would recommend you dont do an apprenticeship. That will only teach you how to be a worker. You want to be the BAWS.

So, if youre serious you might take business accounting 101, maybe 102. A business marketing class. Have six months reserves. Have a product you're going to sell (ie roofs or bathrooms or whatever. If you do everything youre a handyman and that isnt usually great for the pocketbook). Have a website. Have an seo and ppc strategy. Have stellar credit and access to capital through a bank or credit cards.

And last thing: its very difficult to by a home when you are self employed. You might want to have your first home purchased before you strike out on your own.




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No reason to mention your ability to hang cabinets twice. Getting past that, you can get into business at any age. You develop the business model. Ocne you have done that it is up to you when you have spent enough time observing the inner workings of other companies and developing your skills. A business model is only worth while when there is a business person behind it determond to see it through.

In other words as long as you are asking, its too soon.

 

No reason to mention your ability to hang cabinets twice. .

Today, I got to dig a hole for a fence post twice. [emoji35]




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Define being a General Contractor. Do you want to build houses? Do you want to do commercial work? Do you want to build hospitals?

I went to college and got a Civil Engineering degree. Because I knew how to take a test, I passed the Florida GC exam with one year of experience. The State said I was qualified to build anything!

Most big, commercial GC's don't really care if you know how to hang a door. They want to know if you know how to use a computer, read prints, etc.

If you want to do "big" projects (and that's really flexible), you almost have to have a degree today.

 

Define being a General Contractor. Do you want to build houses? Do you want to do commercial work? Do you want to build hospitals?

I like your take which pretty much aligns with what I said above.

The term General Contractor can be used too loosely. In short there should be separate categories as you mention - ie homebuilder, malls,
skyscrapers, hospitals, etc. A paving contractor would only be a GC as regards paving.

And you're never an expert in any without constant research. :no:

 

Some good advice from the guys. Let me throw my .02 in. When you have a bank roll to be able to write checks on the hood of your truck when a sub has completed his work up too the first draw. That is the sure fire quickest way to command respect and capture a subs attention. Don't be the GC who strings your subs out using every excuse in the book why you can't pay up.

 

That's the difference between residential and commercial. 99.999% of the GC's have a "pay when paid" clause in their contract. As discussed here several times, you don't get paid rapidly in commercial. That's why, as a sub, you ALSO need some cash in the bank and a line of credit.

Especially here in Florida, there are lots of pieces of paper that have to be processed. Lien releases, including from suppliers.

 

I'm well aware of that non-sense. It started about 25 years ago. I refuse to sign such a silly one sided contract. Who would want to place themselves so far from the money ? If your agreement is with the GC,why allow him to misbehave with the owner and get into a pushing match for your money ?

 

I think I mentioned this quite awhile back in another thread. Many,many moons ago.I was subing the masonry work from a GC building schools and banks. I remember the first time I approached Bob N. for a draw. He said let me see what I can do. The next morning,he hands me an envelope with a check. Not being rude,I wait until he turns the corner before tearing open the envelope. Much to my surprise,the check was for a substantial amount more than I billed. later that day,I bump into Bob on the site. He said don't expect that all the time,I just got a big draw. Well,bottom line,Bob would say something similar every time he handed me a check. However,he never failed to hand over the money the very next morning,like clockwork. As you can imagine,if Bob said jump,I'd ask,how high. I almost cried when that long standing Construction company closed their doors. There were three brothers with 11 kids,and not a single one wanted to take over the well established family business.

 

yes

 

Yeah I heard it for years from buddies who bought nice houses while we lived in a hovel. My best friend did the same thing, both of us learned well from our dad's. He lived in a 600 sq ft rental actually while building capital and just built his first personal house this year as am I.

I'm starting a little 1200 sq ft block and steel industrial building next week and won't get my second draw until I'm basically done 6 weeks later and all my subs and suppliers will be paid when they submit draws.

My salary i draw a lot higher now but we still live simply and will continue to, I can live on a lot less it would just suck. Lol. In this business you have to have your bills setup for a pauper or that's what you'll end ul being.

**** owing the IRS money. I ain't scared of much but I am of the IRS. Lmao

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Some people are very comfortable living beyond their means. I'm kinda the opposite to a fault.

 

It's not a fault imo. I'd be a nervous wreck if I couldn't cover my bills for months in a dry spell with no income.

One of my friends kids go to school with mine and he doesn't know where the money will come from to pay the tuition month to month he was telling me at a bbq recently..... not because he doesn't make enough but because he has a **** load of payment from an rv, boat, house, time share, golf course ect.... My buddy I mentioned above and I were both shaking our heads. Doesn't have a month of bills saved up according to him.... :laughing:

Financing toys. That is not my bag :no:

I can't imagine. Nervous wreck. :laughing:

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I would bet some people don't even know how much they owe month to month or understand their true circumstances. Blinders.

That is not a good thing in a cyclical business.

 

What I don't get is why be a GC? There is so many specialty contracting fields that make really good money and you can run it solo or with a small crew and possibly a shop. I'd rather run a small manufacturing business than be a GC, I think most would. You don't have steady work as a GC, you will have to rely on subs, hit and miss on bids...mistakes will be costly.

You're going to have to work in the office of a bigger GC company for years before you have the experience needed to properly run a company. It will be far easier and pay good to go into a specialty field and run a small business in my opinion. You can start and moonlight something small on the side and just continue to grow. Go get your contracting license in something basic and get a business license and start taking on projects and add specialty fields as needed. Keep your rates low to get your name out there and build.

 

I agree specialized businesses are attractive, but:

Why does anyone do anything? Because it appeals to them. Personally I don't have the right mentality to be successful as a sub, I am a bit of a control freak and like to be in charge, am good at organizing and bidding, dom t mind being the one held accountable or taking those financial risks vs reward ..... that spells GC :whistling

Work is not hit or miss for us or most established GCs I know, in a downturn it's hit or miss for specialists as well and they dont have the flexibility in what they do the way a general with large stable of diversified subs do. Relying on subs sucks sometimes but part of it, it also creates more flexibility in what you can take on having those subs. Good planning helps alleviate some of those problems.

I wouldn't suggest trying to keep rates low, I would suggest educating yourself to the full extent possible from every source possible in your chosen profession and charge as much as you can for those services and how established you are. In the beginning that wouldn't be as much as later but I wouldn't concentrate on keeping my rates low, just overhead.

I think you can do well doing most anything if you like it, are good at it, and create great value to people doing it.

As an aside: I'm in my air conditioned office meeting with subs almost all
day checking the forum and getting my mind ready for a 10 day vacation, all day today and all 10 days I'll be making a nice healthy percentage on those subcontractors and specialists working on my jobs. :thumbsup:

 

Thank you to everyone for the advice and banter. My goal is to become a well rounded carpenter as my day job, eventually become a general contractor focusing on residential projects, and begin to buy rental properties by the time I am 22 or 23 to generate passive income while continuing to build a small company. I am in the process of generating larger side jobs and wrapping my head around the business license, llc etc. Any other thoughts? Thanks

 

Any other tips from you guys? Thread dried up.

 

It's been a month, we figured you took what you learned and were there by now.

 

As Griz says Marry a Rich woman. Cash flow is a *****.

 

Well Im Irish, short and chubby. Looks like I'm sh*t out of luck and have to work instead.

 

I tend toward the gut too. I got one i think is a looker but no money. Lol

Look for a mentor. If a young guy who wanted to learn the business came to me and said he'd work his ass off for me for 5-7 years for great pay I'd teach him what little I know. I'd also help set him up when it was time to leave. More guys like than you realize.

Order Running A successful Construction Company by David Gerstal. Great for beginners. Follow his path to going on your own.

Buy mark up and profit and read it. I disagree with a lot of what he says at this point but it is excellent for newbies.

Become a really proficient carpenter and brush up heavily on MEP and related codes. Take any codes classes you can.

Learn Quick Books.

Take some classes toward a CGR or CGB through NAHB. Great business, risk management, accounting , sales and estimating courses there. Among others

 

Take some classes toward a CGR or CGB through NAHB. Great business, risk management, accounting , sales and estimating courses there. Among others

"CGB through NAHB":thumbup:

 

I will order the books and start crossing that stuff off my to do list.

Over the last month I found another company and have been working for them. Small crew, good company, and getting paid a bit more than I was.

Definitely need to get to know the codes more.

Funny you mentioned the courses, I have also been looking at some and have been confused on which would be best to go to. Any course I got to is better than none though.

Im getting pretty good in terms of the carpentry work.

I want my own side jobs so I can make a bit more and learn a little bit at my own expense.

Would you guys get your HIC and general liability policy yet or should I still wait? I just want some small jobs on the weeks maybe two weekends of the month. It would help a lot.

Currently working full time for another company learning and doing whatever they need.

 

Currently working full time for another company learning and doing whatever they need.

This is your answer, keep working for another company, I spent well over ten years working for different people before going out on my own.

Don't be in a hurry to go out on your own.

If you serious about going out on your own, pay attention to details, get involved in the big picture with the company you are working for.

How does you boss treat employees and subs?

Do employees and subs like working for your boss, do they get paid on time?

How you treat people will be your key to success. Respect is a two way street.

Talk to the plumbers and electricians, find out what they are doing and why.

Educating yourself is the key to success.

 

"Learn Quick Books."

Sorry, not happening. Took the class at community college and still can't reconcile. I pay a lady to do it. I hire out my math.

Keep more coming in than is going out. That's all the math you need.

 

I have two people in the office full time. I can read P&Ls and follow what's going on though. Any business person should understand business accounting.

Never done the books myself.

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Do something that involves dealing with the general public the least. People suck, not a fan.

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how you fellas doing. I thought I'd chime in because I'm basically him in a few years(different trade). I was a tile helper for about 5 years and have been setting for about three. I have had my own jobs here in there but always worked under another guy even currently. I now own every tool I will ever need. And have never been more confident in my work. We do a lot of high-end homes that range from about 500 to1.5 million my boss has now hired a helper for me. my pay is extremely low for what I'm doing I have pictures of my work and would like suggestions on what I should do about branching off on my own. I feel more than ready to do so but I fear work not being consistent, only reason I haven't pulled the trigger. Inbox or email me if interested in job pics can't figure out to upload here. I would like to get feedback on my ridiculously low pay as well but don't want to make it public. thank you for your time

 

how you fellas doing. I thought I'd chime in because I'm basically him in a few years(different trade). I was a tile helper for about 5 years and have been setting for about three. I have had my own jobs here in there but always worked under another guy even currently. I now own every tool I will ever need. And have never been more confident in my work. We do a lot of high-end homes that range from about 500 to1.5 million my boss has now hired a helper for me. my pay is extremely low for what I'm doing I have pictures of my work and would like suggestions on what I should do about branching off on my own. I feel more than ready to do so but I fear work not being consistent, only reason I haven't pulled the trigger. Inbox or email me if interested in job pics can't figure out to upload here. I would like to get feedback on my ridiculously low pay as well but don't want to make it public. thank you for your time

Sounds like you will be fine... Heed the advice previously posted and bid accordingly.
When I started I found that I was making about 50% of what I was as an employee but working 1/5 as much. Now I'm making the same at about 40%. Its a headache but worth it (you will think about it 100% of the time, its a life style thing).
I didnt heed the advice in this thread, I'm sure you can do as well as me or better if you go in with a good idea about it!:clap:

 

One of the problems with being a small company is you can't do everything. You can't spend 8 hours a day in the field (plus travel time), then go home and estimate jobs, write checks, make sales calls, order materials, etc. Sleep is nice, as is eating and some family time.

Key is to figure out what you are good at and hire someone else to do the other things. You may be the best carpenter/painter/tile setter/electrician in the world, but do you know how to estimate? Do you understand depreciation? Taxes?

The problem here is finding someone you can trust. Your accountant/salesman/estimator can put you out of business in a minute without even meaning to.

After you get some experience, you start to get enough knowledge to have an idea of whats going on. While I do detailed takeoffs, I can usually tell after a few minutes on the plans where I think the price needs to be. Same thing with my job cost. You should have an idea of what your burdened hourly rate is and how many crew hours you have on the job. Not to the penny (that's the accountant's job), but enough to know about how you are doing as far as cash flow/profitability.