Lessons Every General Contractor Should Know Before Starting
Starting a career as a general contractor can be both exciting and challenging.
While the rewards of running your own business are significant, there are also many potential pitfalls that can derail your success. In this blog, we’ll explore practical lessons learned from experienced contractors, focusing on actionable advice to help you avoid mistakes, build a strong reputation, and grow your business sustainably.
1. Don’t Be Afraid to Start Small
Build Your Client Base With Subcontracting Work
Starting with subcontracting (1099 work) allows you to gain experience, earn income, and build valuable connections in the industry. Experienced contractors emphasize that this step can be crucial for developing your skills and establishing a network of professionals who might refer work to you in the future.
2. Know Your Limits
Don’t Overbid Beyond Your Capabilities
Many new contractors dream of taking on custom builds or large projects right away. However, bidding on jobs beyond your current expertise can lead to costly mistakes and financial trouble. Focus on projects you fully understand, and gradually expand your scope as your confidence and capabilities grow.
3. Network With Other Local Contractors
Build Relationships That Lead to Referrals
Networking with other contractors in your area is one of the best ways to grow your business. By collaborating with professionals in complementary trades, you can establish a network of trusted peers who may refer clients to you for work outside their scope. Similarly, you can send leads to others and even earn revenue in the process.
Leverage Tools Like RevLink
RevLink is an excellent platform for connecting with other contractors and tradespeople. It simplifies the process of exchanging referrals and comes with the added benefit of getting paid for leads you send to others. By building strong relationships within your community, you not only expand your reach but also create new revenue opportunities.
4. Vet Your Clients
Interview Your Clients as Much as They Interview You
Not every client is worth taking on. Look out for red flags such as unrealistic budgets or overly demanding attitudes. Taking on “Ferrari taste on a Chevy budget” clients can lead to endless headaches. Prioritize working with clients who respect your expertise and value quality workmanship.
5. Avoid Undervaluing Yourself
Price Your Work Fairly
Undervaluing your services may seem like an easy way to win jobs, but it often leads to rushed work, strained finances, and a loss of confidence. Experienced contractors recommend pricing jobs with enough margin for unexpected costs and ensuring you’re compensated for your time and expertise.
6. Treat Your Customers With Integrity
Build Trust Through Transparency and Honesty
Contractors have a reputation to uphold. By treating customers with respect, maintaining open communication, and delivering on promises, you can earn their trust. Satisfied customers often become your best marketers, providing valuable word-of-mouth referrals.
7. Always Use Detailed Contracts
Manage Expectations With Clear Scopes of Work
A detailed contract is your best defense against misunderstandings. Clearly outline what is and isn’t included in the project scope. This prevents disputes and ensures that clients understand additional requests will require change orders.
8. Learn From Every Job
Reflect on Mistakes to Improve
No contractor is perfect, and mistakes will happen. Use each project as an opportunity to refine your processes, improve your skills, and learn valuable lessons that will benefit your business in the long run.
Conclusion
The journey of a general contractor is filled with opportunities and challenges. By applying the lessons shared by seasoned professionals, you can avoid common mistakes, grow your reputation, and create a sustainable business. Focus on building strong relationships, pricing your services fairly, and maintaining transparency, and you’ll set yourself up for long-term success.