Generally speaking, there are two kinds of construction contractors you’ll find in California: generalists, who can build or repair just about anything (or take on lots of different jobs), and specialists, who might focus on a particular type of building or situation. There is an almost endless number of specialties, from solar construction to electrical, industrial, and so on.
If you’re just starting out in the industry, should you specialize your contracting business?
That answer is going to depend a great deal on your own goals and preferences. Here are a few things to keep in mind, though:
Specialty contractors generally earn more money per project. The more known you are for a particular specialty, the higher the fee you can usually charge. That’s because customers (and sometimes other contractors) will seek out specialists to help them with complex problems, or when they want the very best work available.
The more specialized you are, the more ups and downs you see in your business. There is almost always some kind of construction work going on around you. However, the demand for anyone in a particular specialty can fluctuate up and down pretty heavily. So, while specialists can charge more, they are also more vulnerable to being slow when their work is needed.
Generalists have more variety in their work. Are you the kind of person who likes to take on new challenges regularly, or do you like being the very best in a narrow field? While specialists tend to finish the same kinds of jobs again and again, other contractors can work on completely different types of tasks from one day to the next.
You can have more than one specialty. For a lot of contractors, the answer is to balance between the two extremes and have multiple specialties and project types to work on. That way, they can get some of the benefits of specializing in a few things, but without tying themselves to one particular type of project over and over again.
So, what’s the right answer? Only you can decide – every type of contracting work has its own advantages and disadvantages. Think things through and talk to a CSLS instructor to help you find the right answer.
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