November 20, 2020 Homebuilding 101

How to start your residential contracting business.

One of the surest things in life is continued human development. And with that is the growing need for building and improving new structures to fit the ever-changing needs of mankind. So it’s not surprising to find out just how relevant a contracting business is despite all the innovations presented to us by the modern world.

So in this article, we’ll be exploring how exactly you can start this new business and how you can maximize what you have to be the next best home builder in your area.

Figure out your base of operations

The first thing you need to determine before you begin your home building journey is where to start. The area where you will build your business is vital for the next steps, including legal and marketing concerns. Oftentimes, home builders focus on residential lots and go from there, but that’s not always the best case.

Figure out where you can tap a market for your services and where best to establish a reputation before even thinking about how much to charge by the hour.

Brush up on laws and other regulations within your area

After choosing your service area, you should then review all construction laws and other pertinent regulations vital to managing your business successfully and legally. While you can technically hire someone to do this research work for you, it pays to know these important pieces of information personally so you can avoid unwanted problems with the law. You wouldn’t want any legal trouble before you can even start accepting clients, right?

Become a certified contractor

Now that you have probably pinpointed where you want to be a home builder and how to be a home builder in your location of choice,  you must then actually become one.

The truth is, you do not just become a contractor after taking an interest in this particular profession or even after having a few experiences with home improvement. General contractors need to be licensed to be able to offer such services. So you must find where you can get that license ASAP.

Remember how your service area is relevant to your next steps? Well, this applies to getting your contractor’s license, too! So if you’re someone living in Maryland, you should go search for a company that allows you to renew your home improvement license within Maryland itself.

Settle all necessary requirements and dues

Your contractor’s license is obviously not the last thing on the list of things you need to accomplish before you can start offering your services. You need to do a bit of legwork to secure permits, hire people, pay taxes, determine your business name, and all those nitty-gritty requirements that businesses need in order to start.

Trust me, you don’t want this disturbing the flow of your work once you get clients and laborers onboard.

Use your network for clients and marketing

Here’s the thing, you won’t obviously get organic clients right from the get-go. If you’re just starting your contracting business, the best way to make a living out of it is through your existing connections. It will take a while before you can translate the website views to actual clientele so ask your friends and families if they need to make improvements to their home. Or better yet, ask them about their dream home and how you can help them turn this into a reality.

If you don’t start hustling, your business will never take flight regardless of your skills and qualifications.

After a few months of working for someone who knows you on some level and learn from those experiences, you can branch out and take on other projects and possibly pitch to bigger clients.

Be prepared for any eventuality

While you may think that it’s too early to be thinking about crisis management, I have to disagree. Crises and disasters may come at any given time, regardless of whether or not you’re a newbie in the industry. So never skimp on insurance coverage for your work and workers. At the same time, keep an emergency fund for your business just in case something goes awry.

It takes guts to even attempt to start a new business and it takes certainly a big amount of courage and self-confidence to begin venturing out to the construction industry. So take these good qualities with you and be sure to keep them if you fully intend to succeed in this game.

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