# Story time: What is your contractor business journey?



## SmallTownJoe (Apr 11, 2017)

What is everyone's story?

Backstory: I recently helped my friend move from under management to on his own in East TN. It is interesting to hear how people made the journey from individual contributor/subcontractor to the business owner.

Props to the best story that involves rags to riches :thumbup:


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## sparehair (Nov 21, 2008)

Had a desk job. Quit and became a contractor. Dream of having a desk job.

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## SmallTownJoe (Apr 11, 2017)

@spacehair

A contractor desk job or unrelated?


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## Inner10 (Mar 12, 2009)

I was thinking about writing a book about the life of being a contractor. I'm trying to decide on a name "Rags to Rags", "A Lifetime of Regret", "Work Hard, Die Young"...


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## SmallTownJoe (Apr 11, 2017)

@ Inner10,

"broken pipes to broken back"


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## NJ Contractor (Nov 12, 2016)

Tradecraft_joe said:


> What is everyone's story?
> 
> Backstory: I recently helped my friend move from under management to on his own in East TN. It is interesting to hear how people made the journey from individual contributor/subcontractor to the business owner.
> 
> Props to the best story that involves rags to riches :thumbup:


You first Joe...what's your story? What is your actual business?


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## SmallTownJoe (Apr 11, 2017)

NJ Contractor said:


> You first Joe...what's your story? What is your actual business?


Short bullet pointed version.

Born in small town in east TN. Just outside of Knoxville.
Did contracting and demolition work in the summers.
Didn't go to college when I graduated. Taught myself sales, marketing, and programming.
Worked with my buddy doing small Jobs. Mostly plumbing related.
Did most of our own sales, marketing, and web design.
Moved to Nashville TN, started doing web design full time but kept a side biz of contracting.
Moved to SF, CA. Extension of what Nashville was plus some tech related things.
My buddy from east TN is now going at it alone with a couple of employees. I help him do the biz side of it.
Mostly my side jobs (about once a week) are kitchen related.


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## SectorSecurity (Nov 26, 2013)

Worked for a major bank for several years then one morning I just had enough and knew I wanted to work for myself quit and went out on my own.

I don't recommend most people just quit on a whim and go into business for themselves it hasn't been all sun shine and rainbows on the journey

As for the book title call it a day late and a dollar short

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## SmallTownJoe (Apr 11, 2017)

SectorSecurity said:


> Worked for a major bank for several years then one morning I just had enough and knew I wanted to work for myself quit and went out on my own.
> 
> I don't recommend most people just quit on a whim and go into business for themselves it hasn't been all sun shine and rainbows on the journey
> 
> ...


from what I understand, It never is.


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## Jaws (Dec 20, 2010)

Third generation builder, grew up in construction. Went into boat dock construction right out of high school for a couple years, 17-19. Then went to work for a custom builder as a carpenter for several years, went commercial for a few ending as a project superintendent. 

My dad was a PM for a big custom builder running a few supers and quit to start a small company in 2008, about the same time I was gearing up to go on my own. We teamed up, initially I was just running field operations and within a year and a half I was bringing in projects and bidding and selling them. No one gave us a chance to make it as partners, figured we were both too autocratic. more than 8 years later, sales are up about 800% last year from our first year, definitely an even better year this year, and we have had few arguments and none that were threatening our partnership. 

Definitely not sunshine and roses and the trip aint over but just going after sunshine and roses is not going to get you anywhere id want to go in life. Money and security not being as important to me as freedom and control of my life, what I build and what are company is. If I wanted easy Id get a job and go home at 330.

Seriously there are a lot of growing pains and stress but for me trying to be middle of the road and doing whats comfortable isn't in my DNA :no: Try to get better everyday, and when I'm older I will key it back if that's what we want to do

Book would be Cowboy the $$$$ Up :thumbsup:


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## SmallTownJoe (Apr 11, 2017)

Jaws said:


> Third generation builder, grew up in construction. Went into boat dock construction right out of high school for a couple years, 17-19. Then went to work for a custom builder as a carpenter for several years, went commercial for a few ending as a project superintendent.
> 
> My dad was a PM for a big custom builder running a few supers and quit to start a small company in 2008, about the same time I was gearing up to go on my own. We teamed up, initially I was just running field operations and within a year and a half I was bringing in projects and bidding and selling them. No one gave us a chance to make it as partners, figured we were both too autocratic. more than 8 years later, sales are up about 800% last year from our first year, definitely an even better year this year, and we have had few arguments and none that were threatening our partnership.
> 
> ...


Wow.

That's awesome.

Really impressive.

Any tips for us pee-ons. hahaha.


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## Jaws (Dec 20, 2010)

Tradecraft_joe said:


> Wow.
> 
> That's awesome.
> 
> ...


We aren't big time, learning everyday from anyone I can :thumbsup:


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## NJ Contractor (Nov 12, 2016)

1st generation contractor here. Started as an electrical apprentice at 15. Worked my way through high school and college doing electrical work and when I graduated decided to continue on in the trade. I couldn't see being a cog in a mega-corp or sitting at a desk behind a computer all day. 

I got my Electrical license at 22 and started doing side work for a local GC. At 24, I opened my own electrical shop and after subcontracting for GC's who didn't have a clue, I hired a carpenter and started doing GC work. Early on, I hooked up with some good architects and designers who took a liking to our work and helped us land some good high-end residential remodels. Subprime mortgages and the real estate craze also definitely helped fuel the fire. Along with various real estate investments and some house flipping.

After several years of grinding it out and growing to 15-20 employees, I went through a divorce while the real estate market was collapsing. I then decided to simplify and sold off a lot of trucks & equipment and laid off everyone except 4 good men. 

Nowadays, we specialize in high-end residential remodeling and design/build. I have 4 employees in the field and 2 in the office. It's the perfect size for how I want to live my life. :thumbsup:

Book would be titled _'Little Big Business'_


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## SmallTownJoe (Apr 11, 2017)

NJ Contractor said:


> 1st generation contractor here. Started as an electrical apprentice at 15. Worked my way through high school and college doing electrical work and when I graduated decided to continue on in the trade. I couldn't see being a cog in a mega-corp or sitting at a desk behind a computer all day.
> 
> I got my Electrical license at 22 and started doing side work for a local GC. At 24, I opened my own electrical shop and after subcontracting for GC's who didn't have a clue, I hired a carpenter and started doing GC work. Early on, I hooked up with some good architects and designers who took a liking to our work and helped us land some good high-end residential remodels. Subprime mortgages and the real estate craze also definitely helped fuel the fire. Along with various real estate investments and some house flipping.
> 
> ...


Awesome story.

There is a book on Amazon called Small Giants: Companies who choose to be Great instead of big.

You pretty much summed it up with your story.

and what would your book title be?


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## NJ Contractor (Nov 12, 2016)

Tradecraft_joe said:


> Awesome story.
> 
> There is a book on Amazon called Small Giants: Companies who choose to be Great instead of big.
> 
> ...


Book would be titled _'Little Big Business'_


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## sparehair (Nov 21, 2008)

Tradecraft_joe said:


> @spacehair
> 
> A contractor desk job or unrelated?


Makes no difference to me, as long I stop having to push my intestines back where they belong.

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## TxElectrician (May 21, 2008)

My story is different than most. At 18 I inherited a substantial amount of money. 

I tried every way I could think of to spend it, but no matter what I did the balance just continued to grow.

Finally, in despair, I opened an electrical business. Problem solved, been broke ever since.


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## griz (Nov 26, 2009)

There is a sure fire method for a Contractor to retire with $10 million dollars....:thumbsup:

First you must start with $25 million dollars or more.....

Then when you get close to the $10 million mark you must retire...:whistling


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## SectorSecurity (Nov 26, 2013)

As inner said before what's the difference between a medium pizza and a low voltage tech? The pizza can feed a family of 4.

Thank God there is only 3 of us

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## AllanE (Apr 25, 2010)

Here's my "journey":

I went to work for a framing crew in 1966 at age 15 making $1.25/hr trying to make spending money. I worked after school, weekends, summers for 4-5 years for a framer, graduated from high school in 1969 and then went to college for 1 year as a math major. 

Shortly after I turned 19, I went to work for Missouri Pacific Railroad in engine service, started as a fireman and hostler, at 19 I became the youngest ever fully promoted engineer for the MoPac RR. At 19 I was making a grown man's wage and said the heck with college. 

In a few years at age 23, based on the framing I did as a teenager, I decided to start a home building company. I wanted to build 2 spec homes, but with no partners, no family help, no track record, and $7,000 in savings I was turned down by 15 banks. I finally found an S&L that loaned me money for 2 houses. I built and sold those 2, then a friend asked me to build a custom house for him, then another, then another. For 2-3 years I both drove a train and built houses, but at age 26 I quit my railroad job to concentrate on building houses full time. In the late 70's and early 80's I did well, building 15-20 homes a year. I built thru the rough Carter years of 19% interest rates, then the oil industry turned down and deep recession in Texas around 1984 basically broke me. It took a few years but I eventually crawled out of that hole and built my business back up, gradually getting into the high-end custom market in the 90's.

Today I routinely build houses (custom and spec) in the $4-$5 million (or higher) price range, a far cry from those $70,000 homes I started with. I do $12-$14 million a year in sales with very low overhead. I always thought I wanted to make a lot of money and retire early, but honestly I enjoy building houses as much today as I ever did and have no plans to retire, even though I could. I might slow down but not retire. In the 4+ decades I've built houses I've experienced bad markets, bad national economies, high interest rates, labor shortages, screwed up banking system, those were really tough years. Many years were just very mediocre where I barely eeked out a living wage. But I've also had a fair number of years with an income higher than I could have ever dreamed of, especially the last 15 or so.

Home building is a tough, tough industry, especially if you build specs like I always have. I see very few builders who survive as long as I have, that does give me some satisfaction.

Allan


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## NYgutterguy (Mar 3, 2014)

Started doing roofing, siding, gutters full time in 92' after my dad died. Brother and I started at 13 working for him. After few years my brother and i split up and he continued doing roofing and siding. I liked the speed at which you could make money doing gutters and I got to see two different job sites every day so never got bored looking at same house everyday like when i did siding. 

Was just me and usually one of my friends that I used as a helper. Just needed an additional pair of hands. I Was able to make good money without busting my ass doing new construction and subbing from different roofing and siding guys. Had no clue how to sell so didn't do much homeowner work. A clueless 24 year old competing against professional salesman was an impossible task for me. 

Worked cheaper as a sub but didn't care. $1200 a week as a 24 year old was walk around with a boner type of money to me. Worked all week and partied all weekend. At 28 I purchased a 6" machine and was looking to expand and hire someone else to help keep up with the demand. My brother in law had started with me full time about a year before. After years of not speaking, I offered my brother a job as an installer since he struggled with his business due to the influx of Mexicans who could side full houses in one day. 

During the boom we were doing more gutters in a month than my dad did in a year. We were cranking jobs out. The housing crash was rough but we survived and I decided to focus more on the homeowner market since then. We are about 50/50 homeowner /sub now and have a pretty good gig going. We are able to do Jobs quickly and keep a full schedule for the most part at all times. I can be picky with what we take on and am able to get more per foot than the others most of the time. 

My brother runs the crew and does all the ordering as well as looks at some jobs for me and many other things that makes my job even easier. I make sure the entire operation runs like a Well oiled machine. I sell, look at jobs ahead of time, deal with the website and any other way to get leads, and help out in any way I can to speed things up even by just being a laborer who cuts up old gutter and cleans up the job site. Also help install when really busy. What we do works well for now but in a few years might move in a different direction. I've been saving for years in preparation for that time. 


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## SmallTownJoe (Apr 11, 2017)

I love hearing where everyone comes from and where they are today. I am kinda surprised with having 1500+ views and only 40 responses.


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