# trying to start a general contracting company



## rjw3189 (Feb 19, 2009)

i was wondering what steps i would need to take in order to get a fully legit company going. i'm only 20 and trying to do this with a friend.
all input will be greatly appreciated
thanks


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## Gus Dering (Oct 14, 2008)

Just duck young man.
Look out!

Maybe you guys should go easy on this kid


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## XanadooLTD (Oct 6, 2007)

INput is great! I would say start out by working for a contractor first and learn some things. Then maybe after a few years star one up. Without knowing anyone who will sub you will be stuck.


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## rjw3189 (Feb 19, 2009)

i worked with a company for a year but my boss had to go overseas with the marines.
he did teach us a lot but we dont really know how to get things off the ground.
the work we will be doing has already been learned


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## dubz (Sep 8, 2008)

rjw3189 said:


> i worked with a company for a year but my boss had to go overseas with the marines.
> he did teach us a lot but we dont really know how to get things off the ground.
> the work we will be doing has already been learned



this may be problematic


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## XanadooLTD (Oct 6, 2007)

Next step would be to have a lot of cash to put up for insurance, tools, down time, materials, etc.


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## ChainsawCharlie (Jan 16, 2008)

XanadooLTD said:


> Next step would be to have a lot of cash to put up for insurance, tools, down time, materials, etc.


 and 55 gallon drums of Maalox and Advil


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## simplejack (Jan 15, 2009)

Are you working with a contractor now? if not you should...start framing, electrical or any other specialty trade so you can properly learn the ropes, hands on is the best way to prepare your self, become a master in at least one area and become very familiar with the other trades. 

and in the mean time save as much money as you can, sign up for exam classes and begin to prepare...for the exam, you'd still be far from ready but at least this will get you on the right track.

Consider that you _might_ be ready after 5 years on the job, sorry guy but it takes a while before you can manage things on yer own. I was licensed by the time I was 28 but I already had 10 years experience.

You sound like you might be rushing things a bit... it's good to be ambitious, it's not good to be unrealistic... (but if your a millionare...forget what i said, and stock up on insurance and good experienced people you might have a chance)

Good luck!

:notworthy


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## mnjconstruction (Oct 5, 2008)

Just a little advise, and I think some other veterans will agree. Being in the trade for a year or two is not that long. I've been in it for over 13 years now and still don't know ****! Seriously though I would definently try to get a few more years under your belt. Being a contractor is hard. Prepare to be broke for a long long time until you establish yourself. Running a buisness is alot different then pounding a few nails! But good luck to you my friend!


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## Wolfgang (Nov 16, 2008)

mnjconstruction said:


> Just a little advise, and I think some other veterans will agree. Being in the trade for a year or two is not that long. I've been in it for over 13 years now and still don't know ****! Seriously though I would definently try to get a few more years under your belt. Being a contractor is hard. Prepare to be broke for a long long time until you establish yourself. Running a buisness is alot different then pounding a few nails! But good luck to you my friend!


Truer words were never spoken. When I started my company, I bartended 6 nites a week/7-8 hours a nite. During the day I hustled for business. I lived off of my bartender earnings and put every dime I made otherwise into savings to start my business. I always tell people I've seen a lot of mistakes and most of them I made. 

Be patient, give yourself some time to learn as much as you can, cultivate relationships with other trades, and be prepared to do that for the rest of your career. Best of luck.


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## bwalley (Jan 7, 2009)

rjw3189 said:


> i was wondering what steps i would need to take in order to get a fully legit company going. i'm only 20 and trying to do this with a friend.
> all input will be greatly appreciated
> thanks


Posting a location so that people giving you advice would know where you work would be a start.

2 years doesn't make you a very knowledgable helper, let alone qualified to be a GC, when I was 20 I thought I knew everything too.


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## RayGoerdt (Nov 13, 2008)

I would have to agree with the others, hook up with an experienced GC and learn his end of it too. most of the failed outfits will be around a few years then fold......or run, it does take several years to be exposed to the many things you need to learn in order to pull it off.

Good Luck


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## greg24k (May 19, 2007)

ChainsawCharlie said:


> and 55 gallon drums of Maalox and Advil


Sleeping pill and a laxative be allot cheaper and it will take up less space :laughing:


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## Blast&Coat (Jan 15, 2009)

I say go for it, Thats the best way to learn. Are you gonna F up? Yes and lots of it, and it will cost you money to F up. But you will leanr and you will learn even better because it will be your own money your losing and your own customers your pissing off. But you'll be fully responsible and you'll have to man up and figure out what to do yourself. I agree you shoul dbe friends with a good GC to help you with questions (what this board is for). Dont get me wrong everyone on here is right, in 10 years you still wont know everything. But you never know unless you try, none of us on here know what you are capable of. If you fail then so what your young, then get on with someone else till you feel your ready. If anything you'll only learn valuble lessons for the future either way. Your young, go for it if you mess up so what learn, move on, and try again differently.


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## rjw3189 (Feb 19, 2009)

thanks for advice
i really dont think i know everything like every other 20 year old hense the reason i am posting on here for help. im just trying to get all the input i can for future referance
thanks again


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## kycontractor (Feb 8, 2009)

Hey buddy I'm 25 and on my own (haven't made it through the first year yet), but I'm making a little money. Just remember it's not going to be 8 hour days anymore, I'm up at 5 and in bed at 1 all week. Hit the streets make some contacts and stand behind what you sell and you should be ok. Helps if your wife has a good job too.

Join a good church, 1st to know Jesus and 2nd because it's great networking. 70% of my work has come from members of my church or their referrals.


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## ModernStyle (May 7, 2007)

kycontractor said:


> Join a good church, 1st to know Jesus and 2nd because it's great networking. 70% of my work has come from members of my church or their referrals.


Oh man, you shouldnt have said that. I said that the other night and someones panties got in a knot.


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## kycontractor (Feb 8, 2009)

Let em get knotted, if he joins a church just to get business and ends up hearing something that saves his soul, then was it worth it?? God has funny ways of reaching us.


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## rbsremodeling (Nov 12, 2007)

kycontractor said:


> Let em get knotted, if he joins a church just to get business and ends up hearing something that saves his soul, then was it worth it?? God has funny ways of reaching us.


Amen and past the Vodka


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## atnas (Jan 22, 2009)

I say go for it! You will learn something one way or another. 

As far as setting up, less is always more as far as over extending your finances. I have seen a lot of start ups with the big new truck, best of every tool, lastest gadgets, etc. but they usually end up with too much overhead fast and it kills the business. 

I would set up the business so if you and your "friend" have a falling out, all is not lost. In fact I have seen many "friend partnerships" go south real fast. 

Form and LLC or Incorporate and start pounding the pavemnet.

I wish you success! :thumbsup:


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## PrecisionCandR (Jan 29, 2009)

Well first off you need a license and you definately need more then 1 years experience for that around here... not sure about where you live... and definately lots of money and connections for a startup GC... by the sound of your question you have done no research yet... start reading everything on here, get some books, and ask contractors around you tons of question and maybe work a few more years


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## heartoftexas (Jul 11, 2008)

I'm still paying for our X partner's cell phone! 1 payment the other 23 months on me. I would nix the partner idea real quick! I had to sign off on a DBA I created .... nevermind I won't get into it!


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## Splinter (Apr 5, 2005)

> I say go for it,... Are you gonna F up? Yes and lots of it, ... and your own customers your pissing off


Now that's the best reason to give up this idea of being the 20 year old GC. You all know he's going to have some really pissed off customers, and that'll make us all look bad.


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## matthewcims (Feb 15, 2009)

let me start of im 20 years old and started when I was 16 during high school. Let me give you a little background as it was a little easier for me then itll be for you just starting with nothing.

My father been in the business for 20+ years so whatever old tools etc came to me. And finding work was hard on my own but he helped me whenever I needed to learn something or be taught how to do something.

1st Don't let the older guys scare you, Learn from them. Ask questions all the time, I ask dumb questions that seem so dumb but I still have ask them.

2. Start small. Do simple things, small decks, repairs, small drywall/painting, punch out work. Your going to mess up but dont take on things you cant do just to make money.

3. Don't buy a bunch of new tools. Older stuff works just as fine if it takes a little longer O well just eat the time intill you can afford newer stuff.

4. Being general contactor I do pretty much everything and thats a lot of tools A LOT of differant tools. Try to focus on a few things and move on as you can.

5. Insurance, Licenses, Business all take time to get/grow things wont happen over night. When I started I cleaned trash at jobs site's and was the labor, slowly I learned a little from all the subs.

6. WORK WORK WORK - Everyday work not just 8-5 Do what it takes to get the job done. I work everyday sometimes for 12+ hours, All my friends and most kids in general these days are lazy and dont have work ethic but I really don't make tons of money (bills, house, business) I just love construction work 

Im 20 years old and in no way say I know it all like some the vets say you never will. Itll take time, and youll hopefully learn from mistakes. Everyone starts somewhere, as far as having employees and a full pay roll company. Good luck Im no wear close to that stage.


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## skyhook (Mar 17, 2007)

rjw3189 said:


> i was wondering what steps i would need to take in order to get a fully legit company going. i'm only 20 and trying to do this with a friend.
> all input will be greatly appreciated
> thanks


As a 20 yo drywall contractor, you could probably do well. 
If you have money, becoming an owner/builder is a great way to learn as you go. Expect some hard knox from the cutthroats, eventually you will toughen up or die from starvation.


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## dirt diggler (May 14, 2006)

rjw3189 said:


> i was wondering what steps i would need to take in order to get a fully legit company going. i'm only 20 and trying to do this with a friend.
> all input will be greatly appreciated
> thanks


first thing to do is to get your head examined :laughing::laughing:


I was about 22 when I got going. Everyone told me to "work another 10 years" blah blah blah


I didn't listen ...


Granted (and I am not bragging here) - I am and was VERY responsible and mature for a 22 year old. I simply had ambition, that was about it really. Now - I really mean that too, without exxageration. I might come off obnoxious and unruly on here --- and I am like that "off the clock" ... but I am an entirely different person at work. I take very very good care of my clients and am good to work with

Another 10 years of working wouldn't have done anything for me ... so I do not regret going the direction that I did. It's just where I "had" to go.



this business is really, more or less, about _people_ - and juggling their bullsh*t. You'll see alot though. When you're not making friends, you're making enemies. When you're not making enemies, you're getting sued. If you're not getting sued -- you're being liened.

It's all about management and knowing how to run a business. Your knowledge of construction will help --- but it is NOT the end all solution to any of your problems. Production issues are typically cream cheese compared to problems you'll encounter in learning how to actually operate a business.


and - you'll earn your money three times over before you see it. There is light at the end of the tunnel. I think:laughing: 




and that's just when times are good ...


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## dubz (Sep 8, 2008)

dirt diggler said:


> this business is really, more or less, about _people_ - and juggling their bullsh*t.
> 
> 
> 
> It's all about management and knowing how to run a business. Your knowledge of construction will help --- but it is NOT the end all solution to any of your problems.


Great advice.


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## TBFGhost (Oct 9, 2008)

dirt diggler said:


> this business is really, more or less, about _people_


 
:thumbsup:

I just started my LLC, and that is EXACTLY what keeps me going...that is what sets me apart from some of the others around and why I am getting call backs for more work and word of mouth is spreading my name...I honestly have only gotten a few calls from ads...:thumbsup:

People skills is what drives the business...couple that with good work and locating your market...your good to go.


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## wellbuilthome (Feb 5, 2008)

Now really what is the rush . 
I have taught 100s of guy over the years . It takes years to figure this stuff out . 
At 20 years old you should work with some one that will teach you the trade + sales / business side of the game .
The way the economy is now it will be hard to make any real money working for your self . For example say you started working for your self tomorrow doing small jobs . how many different jobs can you do in a year ? Not many . When i was your age i worked for a company that would build 30 additions a year , at the end of my first year I had big time experience and could build a addition from start to finish with a apprentice and a helper with out any outside help. (BOSS) 
I stayed with the company for 7 years and wound up running my own show . My boss was a true SOB . To this day the old bastard stops at the end of my drive way and flips me the bird if I'm out side . He lives a few houses away. 
If i were you i would hook up with a lead man and don't leave his side for 3 years . The owner of my company taught me to sell , the lead carpenter taught me to frame and work trim The masons taught me to block and pour concrete brick tile etc . The business sense has come from 30 years of experience . Once you hit 25 years old no one will want to teach you , you will cost to much . 20 is the perfect age . good luck John


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## Titodbuilder (Feb 6, 2009)

All the fellaz suggest BUT might I suggest you take off a few years and go to business school so you can learn about marketing, finance and general business administration....if you are trying to create a business that is. If you are simply trying to buy yourself a job then learn how to pound nails straight and you can still do OK. If you go to business school your skills become a lot more transferable to another type of business if you get tired of pounding nails or managing others do the same. After spending 5, 10, 15 or even 20 years in the business and you are an old, old man of 40yo you can migrate to whatever else you might want to do....man, to be 20yo again. What would I do different.........

Seriously, at your age there is NOTHING that will pay you back in dividend as much as a good education. Even if you are not the college type try to concentrate more on learning how business works more than learning how concrete pours and you'll be OK.


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## JackRipper (Mar 29, 2008)

matthewcims said:


> let me start of im 20 years old and started when I was 16 during high school. Let me give you a little background as it was a little easier for me then itll be for you just starting with nothing.
> 
> My father been in the business for 20+ years so whatever old tools etc came to me. And finding work was hard on my own but he helped me whenever I needed to learn something or be taught how to do something.
> 
> ...


Great advice!

I started about 3 years ago and went this similar route.

I used my honda accord to carry all of my tools. (Gutted the trunk) Believe it or not it carried a lot of things (lol 13 bags of 80lb quickcrete distributed as evenly as I could). I rented a truck at the big box stores whenever I had lots of large materials to carry. 

I purchased a decent set of used tools from craigslist & pawnshops. 

As I made money, I set aside some (part of Overhead/Profits) to purchase time saving & good quality specialty tools that last. It was kind of like a reward for me to purchase my first Hilti cordless drill.

Eventually I hired other laborers to help me with the work that needed to be done. Hire only the best and weed out the shoddy ones as soon as you can.

Many times I had to take a loss because I did not have the experience to factor in ghost time (shopping for materials, lunch, driving to & fro, etc), factor in weather conditions, downtime, advertising, etc. The biggest thing was that the loss was always in favor of the customer... We had to stand behind what we did and take pride in everything that we do.

Soon I realize the importance of Overhead/Profits... and adjusted my bids accordingly to the workforce that I have.

Also... this business (as stated before) is hugely dependent upon your people skills. Respect fellow contractors; you can learn a lot from them. Respect your clients; the bring food to the table. 

The hard work really pays off!

-JR


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## PA woodbutcher (Mar 29, 2007)

JackRipper said:


> I used my honda accord to carry all of my tools. (Gutted the trunk) Believe it or not it carried a lot of things (lol 13 bags of 80lb quickcrete distributed as evenly as I could).


Hey didn't I see pictures of you on the internet?:laughing:

All good advice given. I'm a much better carpenter than a business man. The only thing that gets me through is my people skills. When I lose money on a job, I can at least sell the same custmer a job that I can at least break even on.:laughing: 3 years in busness and I don't have to that as much anymore..usually make money the first time around.

Leave your customers smiling when you leave, call them back when they call you and word of mouth will travel.:thumbup:

Spend some time on here reading posts with people crying whoa is me and learn from them. That will keep you out of trouble for a few days in itself and you'll learn a ton.


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## Straight_Up! (Feb 6, 2014)

dirt diggler said:


> It's all about management and knowing how to run a business. Your knowledge of construction will help --- but it is NOT the end all solution to any of your problems. Production issues are typically cream cheese compared to problems you'll encounter in learning how to actually operate a business



That's our biggest problem. 9 yrs work experience but 0 yrs of admin. 

Side note/question: Any ideas where best to research or is Trade school the best way to learn the admin side of the business?

Thanks,
Eric and Suzie, Owners.


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## aaron_a (Dec 18, 2013)

I started out at 22. I had about 2 years of experience. I worked for a roofing siding company for a few months, decided I hated that, and got a job with a remodeler that lasted about a year. He started running out of work, so I partnered up with a friend of mine who was doing work for a real estate guy. Most maintenance work, and some rehab stuff. My friend turned out to be a total slob, completely unreliable, and a dangerous hack. 

I didn't want to be like that, so we split ways. I started picking up small jobs from craigslist and some word of mouth from friends. Slowly started getting more jobs, and bigger jobs. Every week I was putting money aside and buying tools and equipment. Eventually I got licensed and insured. Now I keep getting referrals, ands it's finally starting to get into high end areas too. 

My "friend" is still making a mess of rental properties, my old boss is out of business. And I'm building staircases and cabinets. 

If it's some thing you want to do, just be dedicated and committed and you can make it work. But like others have said, you're gonna make a lot of mistakes.


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## Kowboy (May 7, 2009)

rjw3189:

Don't get discouraged and do not listen to family, friends, and internet friends telling you it can't/shouldn't be done. 

Remember, no one is going to pay you as much as you are going to pay yourself.

Joe


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## caldoconsal (Jan 9, 2014)

when i was 20 or 21 i used to think i knew alot ..... im 27 and i see i dont know ....ALOT .... where on the same boat i want to start on my own .... i working on the saving $$$$ 
then will see.
sorry i have no advice im learning things the hard way(avoid that if you can or as much as possible)


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## caldoconsal (Jan 9, 2014)

Straight_Up! said:


> That's our biggest problem. 9 yrs work experience but 0 yrs of admin.
> 
> Side note/question: Any ideas where best to research or is Trade school the best way to learn the admin side of the business?
> 
> ...


thats me too my business skills suck i got to work on that.

and i due have advice now that i think about it 

demolition cost more that you think 
overhead :blink: i dont have a number yet for my self$$
dont work with/for family 
get to know # from many trades for you subs (you will never beat a man at his trade :whistling) 
have a six pack at home for some stress full day (i know this from small side job my employers dint want ) ill post more later when i remember


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## huggytree (Nov 3, 2013)

at age 20 you will have a very hard time being taken seriously....I wouldn't hire anyone as young as you......at age 20 most guys are apprentices, not business owners

good luck to you, but I think it will be extra difficult for you to succeed

maybe you could hire someone age 40+ to do your sales


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