Entrepreneur magazine - Construction and Contracting Business: Step-By-Step Startup Guide

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Entrepreneur Press, Publisher

Cover Design: The Staff of Entrepreneur Media, Inc.

Production and Composition: Eliot House Productions

2016 by Entrepreneur Media, Inc.

All rights reserved.

Reproduction or translation of any part of this work beyond that permitted by Section 107 or 108 of the 1976 United States Copyright Act without permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Business Products Division, Entrepreneur Media Inc.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or aother expert assistance is required, the services of a competent professional person should be sought.

Construction and Contracting Business: Entrepreneurs Step-by-Step Startup Guide, 3rd Edition, ISBN: 978-1-61308-350-5

Previously published as

Start Your Own Construction and Contracting Business, 3rd Edition, ISBN: 978-1-59918-591-0, 2016 by Entrepreneur Media, Inc., All rights reserved.

Start Your Own Business, 6th Edition, ISBN: 978-1-59918-556-9, 2015 Entrepreneur Media, Inc., All rights reserved.

Table of Contents

Contents

T heres an old story about two men who drive up to a residential property in an unmarked rusty van, knock on the front door, and inform the homeowner that they can reseal the owners cracked asphalt driveway at only a little more than half the going rate. The homeowner, Mr. Jones, strapped for cash after taking his family on a theme-park vacation, readily agrees to pay cash for the work. The next day, three men arrive bright and early, sweep dirt and leaves off the driveway, and proceed to apply a thin black substance to the driveway. They finish the job quickly and place protective yellow ribbon around the driveway.

After packing their tools in the van, they show Mr. Jones the finished project, telling him not to walk or drive on the asphalt for two days in order to give the sealer plenty of time to harden. You dont wanna track the black stuff into your house, they inform him.

Delighted to have saved money and have the job finished quickly, Mr. Jones readily pays cash for the job. Hes so happy with the results, he forgets to get a receipt. The only thing he knows is that the lead mans name is Joe.

Very early the next morning, while Mr. Jones is dreaming about his golf game scheduled for that day, a wild and thunderous rainstorm awakens him and his wife. Trees bend in the storm, small branches break, and their rain gutters overflow. They give up their sleep and plod to the kitchen for their morning coffee.

Mr. Jones steps outside as dawn is breaking to retrieve the morning newspaper that is usually tossed onto his driveway. He takes a few steps and is dumbstruck by what he sees. His driveway is no longer black. The old cracks are still evident and even more prominent because of the rain. But his lawn is black and the gutter along the street is full of black goo. The light bulb goes on as Mr. Jones realizes that he has been taken. The men did not seal his driveway yesterdaythey just painted it with some sort of black liquid.

Weeks later, after paying more than the going rate for a proper sealing job and additional money to have a portion of his lawn reseeded, Mr. Jones comes to the realization that he will either have to give up his weekly game of golf or tell the family that there will be no vacation next summer.

Youve all heard such stories about inept, incompetent, inefficient, and sometimes downright crooked contractors. There are websites dedicated to contractor horror stories, TV news magazine shows that highlight unscrupulous contractors, and organizations like the Better Business Bureau that monitor the activities of problem companies.

So in these circumstances, why in the world would anyone want to start his or her own contracting business? Fortunately, the vast majority of contractors are honest, hardworking folks who provide valuable services to the general public. They are talented men and women who have a positive vision of the future and a burning desire to use their talents for the betterment of not only themselves and their families but also for their community and fellow citizens.

This book covers many facets of the contracting business: It includes checklists for getting started, ideas on marketing your services, and guidelines on how to price these services to make a reasonable profit. It presents ideas for hiring and managing employees and what to do when something goes wrong, either with those employees or with your customers. Along the way well include valuable tips, statistics, and facts about running your own business.