I was considering getting into this as I am a good project manager... mostly expanding existing houses; anyone out there have any stories, good or bad?
Is it profitable?
2007-11-19 02:42:57 · 6 answers · asked by Latin G 5 in Home & Garden ➔ Maintenance & Repairs
There are more failures than successes.
Most small businesses operate at a 'loss' for the first couple of years.
You have to REALLY enjoy the work, for there are a LOT of headaches, hehehe.
I strongly advocate having a good 'working knowledge' of any of the tradeskills you will be in contact with. If not, it would be easy to make mistakes, or to have the less scrupulous take advantage of you.
As with any small business, you have to count the costs.... insurance, taxes, overhead...there is a lot to keep track of. Don't be hesitant to see a lawyer, accountant, or small business association for help... and do it BEFORE you have a problem, hehehe (ounce of prevention vs pound of cure? hehe) Some of the costs may surprise you...insurance is not cheap... taxes ...well, need say no more...heheheh
Profitability depends on a lot of factors... you, how you work, how organized you are, what kind of help youve got, what youve got in the way of resources to work with, what kind of jobs/projects/contracts you want to work on/with...even WHERE you are at can affect it.
A good general approach is to slowly expand on what you are currently doing. Very few of us can simply jump from one career into another and immediately be profitable...when it does happen, there is a good background of education and experience to draw on. Most often it has been a second passion or hobby, before the transition. Become a 'sub-contractor' yourself on projects larger than you are currently working on. This is a good solid approach, and the little things you may learn can go a long way to helping you when you're the one who's being held accountable for the whole shebang, hehehe.
Good Luck
2007-11-19 03:52:38 · answer #1 · answered by thewrangler_sw 7 · 1⤊ 0⤋
I've been a Contractor for 6 years now. It can be profitable but there is also the constant worry of someone not paying me and I'm stuck with all the costs incurred from the project. We did a Gatiland, which was about a $100,000 project. I received the first 4 draws and then wam no final and no retainage even after they opened. I was out about $20,000 in the end and though I'm suing them they are counter-suing and well that lasts forever. Plus the cost of the suit is almost more than the amount we're suing for at this point. It's fun though my advice would be to build up a saftey net for yourself first. Save up some cash, because I'll tell you, someone won't pay you and you'll have to pay your subs and suppliers somehow or they won't do buisness with you later.
2007-11-19 10:52:02 · answer #2 · answered by Sefjoe 2 · 1⤊ 0⤋
I went into business almost 47 years ago. I had a paint brush, two screw drivers and a hammer plus, various tools. I made a lot of promises, kept them, lost money and, made money.
I worked seven days a week, sometimes twenty hours a day, I could never turn down anyone that needed help.
I had a major heart attack, osteo arthritis that's sever and disabling, from all the work. My marriage suffered at times.
It's a good honest trade and you can make money but, not many get rich. When I retired I was in the six figures and wanted by every agent in the city, although seventy, I still get calls that I re-route.
Don't be dissuade but be honest, know what your doing. Get an education or go to a trade school. Don't take in any partners that you have to nurse, they're out there. Good luck.
2007-11-19 15:29:58 · answer #3 · answered by cowboydoc 7 · 1⤊ 0⤋
My dad is a contractor, he has mostly bad stories.
He was talking the other day that he was in charge of a living room addition, but he was helping build it as well. They got about 90% of the way done, and then got booted off of the job. The people screwed him over. He was supposed to get 22grand from the job, and he only got 5grand.
It's not the first time it happened either.
2007-11-19 10:47:07 · answer #4 · answered by Serena T 6 · 1⤊ 0⤋
another headache contractors have is with county and state building officials, I was at a meeting the other night for the new California Building Code updates and there are a ton of new requirements for fire resistant attic venting and other things. the problem is, the products to meet the code aren't available yet, but the new code is in effect on January 2008. their attitude was, if the products aren't available yet, that's your problem, you need to call the manufacturers and tell them to hurry up. the manufacturers will make the stuff available when they make it available, the county/state inspectors don't give a sh!t one way or the other, and the contractor, trying to put food on his table, is the one stuck in the middle
2007-11-19 12:02:46 · answer #5 · answered by ErasmusBDragen 4 · 0⤊ 0⤋
At this point in time, I am suing my contractor. Said I couldn't speak with the inspectors. Got angry when I said I'd pay the final installment when we passed inspection....What did he do? The final installment was three thousand dollars so he jacked it up another six thousand dollars he claims were extras even though so called extras were not in original contract.
Now we are in litigation. Contractors. . find me a good one....
2007-11-19 14:01:03 · answer #6 · answered by Chipmonk 4 · 0⤊ 0⤋