5 Thoughts Before Becoming a Contractor

So you want to become a contractor.  Maybe you went through a trade school or spent your youth on construction sites working through apprenticeships and now you think it’s time to become your own boss. First off: Congratulations on your ambition! Taking the step to business ownership can be highly rewarding and, eventually, pay off in great dividends. However, there are a few things to keep in mind before you pay money for a school and license. If you think you can move past these 5 hurdles, then you will probably be a great success as a contractor!

• Long hours– As an owner, you will be spending the next few years working 20-30 hours a week promoting your business on top of the already 40 hour workweek. Whenever you aren’t actually working(and even while you are), you’ll be trying to come up with new ways to advertise or network with other professionals for more contracts. Even as a simple handyman, you’ll need to connect with realtors, insurance agents, associations, and other contractors for more work.
• People Person– When you were just a working schlub, the only people you had to schmooze was your boss. As an owner, you now need to be able to speak to clients, customers, suppliers, and other contacts in a professional manner. In addition to being a contractor, you are now a salesman. If this isn’t one of your strengths, there are classes and groups out there that can help you improve your speaking skills. Try looking for a local Toastmaster’s International club.
• Money matters– This is where the employment of a reputable accountant would be the best way to go, however you still need to have a firm handle on your budgeting skills. You’ll need to set aside certain percentages of your incoming cash for advertising, equipment, continuing education, repair, and, above all else, don’t forget to pay yourself a decent wage. Most new entrepreneurs tend to throw everything back into the business at the expense of their own home life. You and your family need to live too so make sure that you, the worker, get paid by you, the owner. If your business goes under, at least you’ll have been making the house payments.
• Network– You’ll need to set aside time and money for trade shows and conferences where you can meet other professionals. While this might seem a waste of time at first, keep in mind that if you specialize in plumbing, you might meet a large company executive that needs someone of your talents for side jobs or extra work. Some of these contract can keep you busy for months and are usually pretty profitable.
• Home Life– The hours and energy you are going to spend on promoting your business are going to eat into your home life. Weekends may become a thing of the past and, if you are not careful, you might miss a kid’s game or two. However, if you stay aware of the possibility, you should be able to find ways to balance home and work, especially if you have the support of your spouse. Remember that they want to see you succeed, but they also want to be with you so find ways to stay connected.

These are the 5 biggest hurdles that a new contractor will have to face when starting out. Fortunately, they can be easy to work around as long as you understand that they need to be addressed. They will be difficult at times, but the rewards of overcoming them will be amazing once you have established yourself and your business takes off.