A general contractor earns between $84,000 and $150,000 a year. It’s a great step forward if you’ve been in the construction industry for several years.
If you get licensed as a general contractor, you’ll be the one in charge. You’re running a new business and managing projects to completion.
It’s a challenging prospect, but one that’s well worth the effort.
What does becoming a general contractor take?
Keep reading because you’re going to learn how to become a general contractor in five steps.
1. Choose Your Career Path
Being a general contractor opens many doors of opportunities. You can choose to become a general contractor who works for a large construction company as a project manager.
Most people who become a general contractor do so to start their own business.
You’ll join the millions of other people who decided to start their own business.
Being a self-employed general contractor isn’t a simple task. You need to write a business plan and create a vision for the business. Decide what types of construction projects you want to work on.
You could specialize in commercial projects, residential remodels, or something else. Be sure to understand the costs of starting and running the business. You’ll be able to set your prices accordingly and stay profitable.
2. Get Licensed
The general contractor process starts with getting your license. The requirements vary between states. Learn what the exact requirements are in your state before proceeding.
You can expect to prove that you have between four and six years of experience in construction. You’ll need to pass a business exam and a general contractor’s exam.
You’ll need to fill out an application and pay a processing fee. Most states require that you already have a bond and insurance before you submit the application.
3. Register the Business
If you’re going the self-employed route, you’ll need to register your business. Consult with a business attorney before you file the registration.
The registration asks that you declare a business entity. You can be a sole proprietor, LLC, or C-Corporation. There are legal and tax implications with each option.
A qualified business or tax attorney can advise you on the best option for your business.
4. Invest in Equipment
The most expensive step in becoming a self-employed general contractor is investing in equipment. You might be able to rent tools to start out, but you’ll want to purchase what you need at some point.
Once you are ready to buy, look for great deals at different supply shops like the power tool supply found here.
5. Market the Business
Marketing the business is overwhelming because there are so many options. You can start by forming alliances with architects and engineers to get your first projects.
You’ll need a website and can invest in search advertising to get a steady flow of clients to your business.
Becoming a General Contractor
If you dream of earning six figures in the construction industry, becoming a general contractor is a great first step. This guide told you how to become a general contractor and start your own business.
Now that you know how to start the business, you need more marketing tips to grow. Check out the Digital Marketing section for more insights.