general contracting business plan

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General Contractor Business Plan

Your constructional expertise, contractual knowledge, and project management skills are enough for you to start a general contracting business. However, you need something more to succeed—a well-thought-out business plan.

Having a business plan can help you secure funding, set priorities, make informed decisions, and steer your business in the right direction.

Need help writing a business plan for your general contractor business? You’re at the right place. Our general contractor business plan template will help you get started.

Free Business Plan Template

Download our free general contractor business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a General Contractor Business Plan?

Writing a general contractor business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

• Introduce Your Business: Start your executive summary section by briefly introducing your business to your readers.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and Services: Highlight the general contracting services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, construction services, project management, construction consulting, and maintenance & repair can be included as services, and specialized expertise and competitive pricing can be part of your USPs.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Residential construction
• Commercial Construction
• Civil construction
• Industrial construction
• Green building and sustainable construction
• Company structure: Describe the legal structure of your contracting company, whether it is a sole proprietorship, LLC, partnership, or others.
• Location: Explain where your business is located and why you selected the place.
• Ownership: List the names of your general contracting company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established general contracting service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the construction industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target Market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, homeowners, property owners, real estate developers, and insurance companies can be a target audience for a general contracting company focusing on residential projects.
• Market Size and Growth Potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• You may include statistics and information like the number of ongoing and upcoming residential or commercial projects, the value of construction spending, etc.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your general contracting services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, there is a growing demand for eco-friendly and sustainable construction practices; explain how you plan on dealing with this potential opportunity in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your general contracting company, such as business registration, insurance, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your construct contractor business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Construction project management
• Renovation services
• Budgeting or cost estimation services
• Project coordination
• Maintenance and repair
• Service Process: Provide a detailed description of your service process, from initial consultation and planning to project completion. Include any unique or proprietary processes you follow to ensure quality and efficiency.
• Case studies: Provide case studies and testimonials from your satisfied customers. Showcasing successful projects and client testimonials will bring credibility to your business plan.
• Additional services: Mention if your general contracting company offers any additional services. You may include services like regulatory compliance, permit acquisition, design-build services, etc.

In short, this section of your general contractor plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve and the unique services you provide. Identifying USPs will help you to plan your marketing strategies.
• For instance, timely project delivery, quality craftsmanship, competitive pricing, and sustainable practices can be some of the great USPs for a general contracting company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan to attract new customers to your contracting service.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with real estate developers, proposal planning, negotiation tactics, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, offering excellent customer service, etc.

Overall, this section of your construction contractor business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your general contractor business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees, construction workers or subcontractors (e.g. electrical contractor, roofing contractor, painting contractor, etc.) needed.
• Include their qualifications, relevant experience, the training required, and the duties they will perform.
• Operational Policies and Procedures: Outline the operational policies and procedures you will follow to run your general contractor business. These procedures may include standard operating procedures(SOPs), quality control measures, safety protocols, etc.
• Equipment & Technologies: Include the list of equipment and technology required in a general contractor business, such as construction tools, project management software, safety equipment, green building technology, survey equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.
• Contingency Plans: Provide emergency plans for potential emergencies or disasters, such as natural disasters, accidents, equipment failures, and other unanticipated events.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your general contractor business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your general contracting company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities. You will need to provide this information depending on the size of your company and the number of employees you have.
• It should include key executives, general contractors, and other department managers (e.g. project manager, safety manager.) involved in the business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your general contracting services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: This section should estimate and describe the cash flow for the first few years of your operation. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your general contractor business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting a general contractor business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the construction industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your general contractor business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This general contractor business plan sample will provide an idea for writing a successful general contractor plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our general contractor business plan pdf.

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Frequently asked questions, why do you need a general contractor business plan.

A business plan is an essential tool for anyone looking to start or run a successful general contractor business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your general contractor company.

How to get funding for your general contractor business?

There are several ways to get funding for your general contractor business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your general contractor business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your general contractor business plan and outline your vision as you have in your mind.

What is the easiest way to write your general contractor business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any general contractor business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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General Contracting Business

Back to All Business Ideas

How to Start a General Contracting Business in 13 Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 21, 2021 Updated on July 7, 2024

Investment range

$6,550 - $19,100

Revenue potential

$180,000 - $375,000 p.a.

Time to build

0 – 3 Months

Profit potential

$144,000 - $190,000 p.a.

Industry trend

Pay attention to these important factors as you establish your general contracting business:

• Choose a niche or specialization — Specializing in areas such as green building, historical restoration, luxury home construction, or commercial renovations allows you to target specific customer segments and develop deep expertise in those areas.
• Get certifications — Certifications such as a general contractor’s license, OSHA safety certification , and specific trade certifications (e.g., electrical, plumbing) demonstrate your qualifications and commitment to professional excellence.
• Licenses and permits — Get the necessary contractor’s license required by your state or local government. This typically involves passing an exam and meeting experience requirements. Ensure you have all the necessary permits for the specific types of construction work you will be doing.
• Partnerships — Build a network of reliable subcontractors (e.g., electricians, plumbers, carpenters) to handle specialized tasks. Ensure they are licensed and insured.
• Equipment — Invest in high-quality tools and equipment necessary for your projects. This may include trucks, trailers, power tools, and safety gear. Establish relationships with reliable suppliers to ensure a steady supply of quality materials.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .

Interactive Checklist at your fingertips—begin your general contracting business today!

You May Also Wonder:

Is a general contracting business profitable?

A general contracting business can be very profitable. Profit margins are high, especially if you do most of the work yourself. The average kitchen remodel price is about $20,000, so even if you do just five a year, you’re still making a healthy profit.

Do I need an LLC for my general contracting business?

You can choose any kind of business structure for your general contracting business, but an LLC has many benefits including personal liability protection. If your business is ever sued, your personal assets are not at risk.

How can I get customers for my general contracting business?

Eventually, you will get referral business, but to start, you should sign up on LinkedIn and start connecting with people locally. Connect with realtors who may be able to give you referrals, and post pictures of your work.

What is the difference between general contractor and subcontractor?

A general contractor is responsible for overseeing the entire construction project, managing all aspects, coordinating subcontractors, procuring materials, and ensuring compliance with regulations. Subcontractors are specialists hired by the general contractor to perform specific tasks or trades within the project.

What is the difference between construction management and general contracting?

Construction management involves coordinating and managing all aspects of a construction project on behalf of the client, working closely with architects, engineers, and contractors. General contracting encompasses the overall management and execution of the project, including managing subcontractors and ensuring compliance.

Who is the biggest general contractor in the US?

The biggest general contractor in the US can vary depending on factors like revenue and projects. Some of the largest general contractors in the US include Bechtel, Turner Construction, Fluor Corporation, AECOM, and Kiewit Corporation. Rankings can change based on industry factors and specific evaluation criteria.

Step 1: Decide if the Business Is Right for You

Pros and cons.

A general contracting business has pros and cons that you need to weigh before you decide if it’s the right path for you.

• Profit Potential – High profit margins will put cash in your pocket
• High Demand – The industry is booming
• Specialization – Focus on flooring, cabinetry, decks, kitchens, etc.
• Backbreaking Work – Lots of physical labor!
• Finding Help – It can be challenging to find reliable subcontractors
• Difficult Customers – Many people are sensitive about work done to their home

General contracting industry trends

Remodeling and home improvement projects are on the rise. The US remodeling industry has expanded by more than half over the past decade. Home improvement spending, which includes contracting as well as DIY spending, totaled $457 billion in 2020 and is expected to reach $510 billion by 2024, according to research firm Statista. This suggests that the main competition of contractors is homeowners who decide to do the job themselves.(( https://www.statista.com/topics/1732/home-improvement/#dossierKeyfigures ))

Kitchen, bathroom, and basement remodels are the most prevalent jobs, although, since the start of the pandemic, home office remodeling has spiked, according to a Google Trends analysis.(( https://www.rocketmortgage.com/learn/renovation-and-remodeling )) This is likely to continue as remote and hybrid work environments become the norm. One study by remote working site Upwork found that nearly one in four Americans will be working remotely by 2025.(( https://www.businesswire.com/news/home/20201215005287/en/Upwork-Study-Finds-22-of-American-Workforce-Will-Be-Remote-by-2025 ))

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the US remodeling industry at more than $131 billion, after growing more than 4% annually over the past five years.(( https://www.ibisworld.com/industry-statistics/market-size/remodeling-united-states/ ))  
• Growth forecast – Demand for construction managers is expected to grow 11% from 2020 to 2030, according to the Bureau of Labor Statistics.(( https://www.bls.gov/ooh/management/construction-managers.htm )). 
• Number of businesses – There are more than 36,000 general contractors in the US.(( https://www.zippia.com/general-contractor-jobs/demographics/ )) 

Trends and challenges

General contracting trends include:

• Remote and hybrid work arrangements drive demand for general contracting work
• Green renovations are in demand, including large projects like solar panels, and smaller changes like insulation or HVAC updates
• Eco-friendly materials are also trending, such as paper-based or recycled glass countertops, and bamboo plywood

Challenges in general contracting include:

• Competition from other contractors and homeowners who undertake DIY home improvement projects
• High cost of construction materials might dampen demand

Consumer spending

• Average consumer spend – US homeowners spent an average of $7,560 on home improvement in 2018.(( https://www.statista.com/statistics/809304/average-annual-home-improvement-spend-us/ ))
• Potential customer base – There are around 90 million owner-occupied housing units in the US as of 2020.(( https://www.census.gov/quickfacts/fact/table/US/VET605220 ))

What kind of people work in general contracting?

• Gender – 91% of general contractors in the US are male, while 9% are female.(( https://www.zippia.com/general-contractor-jobs/demographics/#gender-statisticsg ))
• Average level of education – 45% of general contractors hold a bachelor’s degree.(( https://www.zippia.com/general-contractor-jobs/demographics/#degree-level-types ))
• Average age – The average age of a general contractor is 46 years old.(( https://www.zippia.com/general-contractor-jobs/demographics/#age-statistics ))

How much does it cost to start a general contracting business?

Startup costs for a general contracting business range from $6,500 to $20,000. One of the main costs is tools and equipment such as saws, drills, and ladders. The other large expense could be a down payment on a vehicle to transport materials, though often contractors require customers to provide all materials themselves. Generally, suppliers will deliver materials, such as cabinets and tiling, directly to the customers, reducing the contractor’s need for a vehicle.

You’ll need a handful of items to successfully launch your general contracting business. Here’s a list to get you started:

• Hammers, screwdrivers, wrenches, etc.
• Saws, drills, ladders, etc.

How much can you earn from a general contracting business?

When you first start, you can work by yourself, and with a single laborer for bigger jobs, and have a profit margin of 80%. The average cost of a bathroom remodel is $10,000 and the average cost of a kitchen remodel is about $20,000, putting the average remodel at $15,000.

In your first year or two, you could work from home and remodel 12 rooms in a year, bringing in $180,000 in annual revenue. This would mean $144,000 in profit, assuming that 80% margin. As your brand gains recognition, sales could climb to 25 rooms a year. At this stage, you’d rent out an office and hire staff, reducing your margin to around 50%. With expected annual revenue of $375,000, you would make close to $190,000.

What barriers to entry are there?

There are a few barriers to entry for a general contracting business. Your biggest challenges will be:

• Skills – You’ll need remodeling skills and experience
• Competition – General contractors are plentiful so you’ll need to stand out

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Step 2: hone your idea.

Now that you know what’s involved in starting a general contracting business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research general contractors in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a general contractor that specializes in tile flooring or turning dingy basements into cozy man caves.

It’s often a good idea to go niche and specialize in a certain aspect of your industry, like luxury kitchens or wooden decks.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You need a list of services that you can offer your customers based on your skills or subcontractors that you can hire. These might include:

• Custom cabinets
• Tile floors, backsplashes, showers
• Hardwood flooring
• Countertop installation
• Electrical work
• General handyman services

How much should you charge for general contracting services?

Jobs will be priced according to the services and costs involved. Some estimates would be:

• Cabinet installation – $300 – $500 per cabinet
• Tile flooring – $13 – $21 per square foot
• Tile backsplash – $25 – $30 per square foot
• Wall painting – $4 – $8 per square foot

Your customers will pay for materials, so your costs will be for hired labor, tools, and your transportation to and from the job. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is going to be more established people that own homes. The best places to reach those people will be Facebook and particularly LinkedIn. For a contractor, being on LinkedIn will establish your credibility as a professional. You could connect with local realtors to get referrals.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “contracting” or “remodeling”, boosts SEO
• Choose a name that allows for expansion: “Signature Contracting Solutions” over “Outdoor Living Builders” or “Commercial Contracting Solutions”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 200 unique general contracting business name ideas here. If you want your business name to include specific keywords, you can also use our general contracting business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise summary highlighting the core aspects of your general contracting business plan, including mission, goals, and key financial projections.
• Business Overview: An introduction to your general contracting business, covering its history, mission, vision, and legal structure.
• Product and Services: Detailed information about the construction services your business offers, emphasizing specialization and unique selling points.
• Market Analysis: A thorough examination of the construction industry, including trends, target market demographics, and potential growth opportunities.
• Competitive Analysis: Evaluation of competitors in the general contracting sector, identifying strengths, weaknesses, and areas for differentiation.
• Sales and Marketing: Strategies for promoting your general contracting services, outlining sales tactics, advertising, and customer acquisition plans.
• Management Team: Profiles of key team members, emphasizing relevant skills and experience in construction and business management.
• Operations Plan: Details on the day-to-day operations of your general contracting business, including project management, logistics, and equipment.
• Financial Plan: A comprehensive overview of your general contracting business’s financial health, including startup costs, revenue projections, and break-even analysis.
• Appendix: Supplementary materials such as resumes, permits, contracts, and additional documentation supporting the information presented in the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to general contracting.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your general contracting business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a general contracting business.

Step 8: Apply for Licenses/Permits

Starting a general contracting business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your general contracting business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You can use industry-specific software, such as HCSS , PROCORE , or FieldWire , to help manage your projects, costs, billing, and scheduling.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Establish a brand identity that conveys reliability, expertise, and professionalism through your logo, business cards, uniforms, and the appearance of your vehicles and equipment.
• Website & SEO — Create a professional website featuring your portfolio, client testimonials, and detailed service descriptions. Utilize SEO techniques to improve visibility for searches related to general contracting and home renovations.
• Social Media Engagement — Use LinkedIn for professional networking and platforms like Instagram and Facebook to showcase projects, share testimonials, and provide construction tips.
• Content Marketing — Maintain a construction blog with articles on home renovation tips, industry trends, and project management. Produce video content that includes project showcases and process explainers.
• Direct Outreach and Partnerships — Network with local architects, real estate agents, and suppliers to forge relationships that can lead to referrals and collaborative opportunities.
• Email Marketing — Send regular newsletters to keep your audience informed about recent projects, company updates, and special offers.
• Experiential Marketing — Host open houses or project tours after completing significant projects to attract potential clients and demonstrate your capabilities.
• Participation in Local Events — Engage in home shows, trade fairs, and business expos to network with potential clients and exhibit your expertise.
• Community Engagement and Collaborations — Participate in community construction projects and collaborate with local businesses for mutual benefits, enhancing local visibility and goodwill.
• Customer Loyalty and Referral Programs — Implement a referral program that rewards clients for new business introductions. Offer follow-up services to reinforce long-term customer relationships.
• Targeted Advertising — Advertise in local media with compelling content like before-and-after project photos to attract local clientele.
• Visibility Through Signage — Ensure your signage is prominent on job sites and that vehicles and equipment are well-branded to serve as mobile advertisements.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your general contracting business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your general contracting business could be:

• Master tiling services for bathrooms, kitchens, and more
• Enjoy the outdoors with your brand new wood deck
• The ideal home office for your new work-at-home lifestyle

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a general contracting business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working as a contractor for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in construction . You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from home, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a general contracting business would include:

• Laborers – Assist with jobs, clean up
• General Manager – Scheduling, staff management, accounting
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Start Making Money!

As a general contractor, it’s to your advantage if you’re a skilled builder and have experience in project management. You could be a master of all trades, or just one. The possibilities are endless, from focusing on woodworking to building entire home additions. The US remodeling industry is worth more than $131 billion and growing fast, so now is a great time to start building your general contracting business.

You’ve got knowledge in your tool belt now, so it’s time to roll up your sleeves. You’re ready to start your entrepreneurial journey and hammer your way to success!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Start Making Money!

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How To Write a Winning General Contractor Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for a general contractor who wants to refine their strategy.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every general contractor should include in their business plan.

Download the Ultimate Business Plan Template

What is a general contractor business plan.

A general contractor business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a General Contractor Business Plan?

A general contractor business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective General Contractor Business Plan

The following are the key components of a successful general contractor business plan:

Executive Summary

The executive summary of a general contractor business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your general contractor company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

If you are just starting your general contractor business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your general contractor firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a general contractor business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the general contractor industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a general contractor’s customers may include:

Your target customer segments may change as your business grows. As such, you should revisit this section of your business plan periodically and update it as needed.

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or general contractor services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your general contractor business via word-of-mouth or referrals . 

Operations Plan

This part of your general contractor business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a general contractor business include reaching $X in sales. Other examples include expanding to a new location, adding a new service, or increasing the number of employees.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific general contractor industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup General Contractor Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup General Contractor Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup general contractor business.

Sample Cash Flow Statement for a Startup General Contractor Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your general contractor company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any general contractor company. The tips we’ve provided in this article should help you write a winning business plan for your general contractor business.  

Finish Your General Contractor Business Plan in 1 Day!

Wish there was a faster, easier way to finish your general contractor business plan?

With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Construction Contractor Business Plan PDF Example

• May 10, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful construction contractor business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your construction contractor business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a construction contractor business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your construction contractor business concept into reality. Let’s dive in!

Our construction contractor business plan is meticulously structured to include all essential aspects necessary for a robust strategy. It outlines the company’s operations, marketing strategy , market environment, competitors, management team, and financial projections.

• Executive Summary : Presents an overview of your construction contractor business concept, including market analysis , management structure, and financial strategies.
• Company Information: Describes the company’s foundation, areas of expertise in the construction industry, and the operational standards that define the business.
• Services : Details the comprehensive range of construction services offered, from residential building to commercial projects, including any specialized services such as eco-friendly constructions or renovations.
• Target Market : Outlines the specific demographic and geographic segments the company aims to serve, emphasizing any particular needs of these markets like affordability, durability, or luxury finishes.
• Key Stats: Provides statistics on the construction industry’s size and growth trends relevant to your market area.
• Key Trends: Identifies significant trends affecting the construction sector.
• Key Competitors : Evaluates primary competitors in the area and outlines your competitive advantages.
• SWOT : Conducts a Strengths, Weaknesses, Opportunities, and Threats analysis.
• Marketing Plan : Outlines effective strategies for attracting and retaining clients.
• Timeline : Lists key milestones and objectives from the start-up through the initial years of operation.
• Management: Shares information about the management team, detailing who manages the company and their respective roles.
• Financial Plan: Forecasts the company’s 5-year financial performance, including revenue, profits, and significant expenses.

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Construction Contractor Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

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Executive Summary

The Executive Summary introduces your construction contractor’s business plan, offering a concise overview of your company and its services. It should detail your market positioning, the range of construction and remodeling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your construction business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your company’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your construction business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a construction contractor, the Business Overview section can be concisely divided into 3 main slides:

Company Information & Location

Our construction company specializes in handling diverse projects, including residential, commercial, and industrial builds. Located strategically near major transport hubs, our headquarters offer easy access to key construction sites, providing logistical benefits and enhanced service delivery to our clientele.

Services & Specialization

We offer a comprehensive range of services from general contracting to specialized projects like energy-efficient constructions. Our expertise in custom designs and turnkey solutions sets us apart in the industry, ensuring high-quality project management and client satisfaction.

Target Market

Our target market includes homeowners, real estate developers, and public sector contracts. We cater to clients seeking reliable, high-quality construction services, with a focus on innovation and efficiency to meet the unique needs of each segment, ensuring we are the go-to contractor for diverse construction demands.

Make sure to cover here _ Company Information & Information _ Services & Specialization _ Target Market

Market Overview

Industry size & growth.

In the Market Overview of your construction contractor business plan, start by examining the size of the construction industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable building practices, energy-efficient homes, and smart technology integration in construction. For example, highlight the demand for green building certifications and the rising popularity of renovations that focus on improving energy efficiency.

Key Competitors

Then, consider the competitive landscape, which includes a range of construction firms from large-scale contractors to local small businesses, as well as the trend toward DIY home improvements. For example, emphasize what makes your company distinctive, whether it’s through advanced project management techniques, specialization in sustainable construction, or exceptional client relations.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the construction contractor , highlighting Strengths (such as advanced project management skills and a wide array of building services), Weaknesses (including dependency on the economic cycle and market competition), Opportunities (for example, growing trends in sustainable construction and smart home technologies), and Threats (such as potential economic recessions that may reduce investment in new construction projects).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, strong online presence, and community involvement. Focus on showcasing your company’s unique capabilities and successful project completions to build trust and credibility in the market.

Finally, create a detailed timeline that outlines critical milestones for the construction business’s project completions, marketing initiatives, client relationship building, and expansion objectives, ensuring the business progresses with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the construction contractor business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the construction contractor business toward its financial and operational goals.

For your construction contractor business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your construction contractor business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your construction contractor business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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BUSINESS STRATEGIES

How to create a contractor business plan

• Jeremy Greenbaum
• Oct 30, 2023
• 12 min read

When launching a contracting business, it's essential to craft a detailed and precise business blueprint tailored to your industry. A contractor business plan is a meticulously crafted document that delineates your company's objectives, tactics and financial forecasts within the contracting sector. This blueprint serves as your guiding compass when starting a business , charting the course to success and offering solutions to potential hurdles. It spells out the specific strategies needed to efficiently operate a contracting enterprise.

Keep reading for tips on how to get started with your own business plan when starting a contractor business .

Looking to open up the doors to your business online by making a website ? Try Wix’s website builder today.

Creating a business plan for your contractor business is vital in order to establish a clear direction and ensure the success of your venture. Here are the six primary sections of a business plan to get you started:

Executive summary

Company and domain names, market analysis and research, operations plan, marketing and advertising plan, financial plan, 01. executive summary.

The executive summary is a concise overview of your entire contractor business plan. It should provide a snapshot of your business's mission, goals, products or services, target market, competitive advantage, financial projections and funding requirements. A clear executive summary succinctly communicates your business's essence and potential, serving as a compelling introduction to captivate the reader's interest.

Example of an executive summary: "GreenBuild Contractors is a dynamic and innovative construction company specializing in sustainable residential and commercial projects. With a commitment to quality craftsmanship and environmental stewardship, we aim to revolutionize the construction industry. Our team of experienced professionals combines expertise in green building practices with a passion for creating spaces that resonate with both clients and the environment. By leveraging our unique expertise, GreenBuild Contractors is poised to tap into the growing demand for eco-friendly construction solutions. We are seeking funding to scale our operations, enhance market presence and position ourselves as a leader in sustainable construction."

02. Company and domain names

Choosing the right business name is pivotal for building brand awareness and trust in your contractor business. It should resonate with your services, reflect professionalism and be memorable. To find inspiration, consider using business name generators that offer creative suggestions tailored to your industry.

Be inspired:

Contractor business name ideas

Painting business name ideas

Plumbing business name ideas

Selecting a domain name is equally crucial in today's digital age. It should be aligned with your company name, easy to remember and relevant to your services. Before finalizing your choice, ensure the domain name is also available and not already in use.

Once you’ve decided on your company name and legal structure, make sure to register your business with your state.

03. Market analysis and research

Incorporating a market analysis and research section in your contractor business plan helps you understand the competitive landscape and devise an effective business strategy. Conduct market research to identify your target audience's needs, preferences and pain points. Analyze your competitors' strengths and weaknesses to uncover opportunities for differentiation. This insight will guide your marketing efforts and positioning strategy.

Find your niche:

Handyman business plan

Painting business plan

04. Operations plan

An operations plan within your contractor business plan outlines the practical aspects of your business, including its location, premises, equipment and staffing needs. Describe your business's physical setup, such as office or construction site locations. Detail the types of equipment required for your services and address staffing requirements, roles and responsibilities. A comprehensive operations plan ensures a smooth workflow and efficient resource allocation.

05. Marketing and advertising plan

Your business plan should lay out a detailed marketing and advertising strategy to promote your contractor business. Identify the most relevant marketing channels for your industry, such as a business website , social media, local advertising and trade shows. Highlight specific campaigns—such as showcasing completed projects, offering promotions or educational content about construction trends.

Don’t forget to think about your branding. No matter where you choose to promote your business, you’ll want to make sure that your branding is consistent. Start by using a logo maker to brainstorm construction logo ideas . Shape your visual identity around it, plus articulate your brand’s values, mission and vision (among other essential aspects).

06. Financial plan

The financial plan is a cornerstone of your contractor business plan, detailing how your business will be funded initially and outlining a timeline for achieving profitability. It includes projected revenue, expenses and cash flow statements. Specify the initial investment required for equipment, staffing and other startup costs. Outline your funding sources and clearly define your business's financial trajectory, demonstrating its sustainability and growth potential. Lay out how you plan to make money as a contractor.

Contractor business plan example: UrbanRenovate Builders

Below is a business plan example of a hypothetical contractor business, UrbanRenovate Builders. Feel free to use this as a guide for when you’re creating your own contractor business plan.

UrbanRenovate Builders is a forward-thinking contractor business poised to redefine urban spaces through innovative renovation solutions. With a focus on delivering exceptional craftsmanship and modern design, we aim to become a trusted partner for clients seeking transformative renovation projects. Our team of skilled professionals combines expertise in architectural design, construction and project management to create living spaces that reflect our clients' unique lifestyles. By leveraging our expertise and commitment to quality, UrbanRenovate Builders aims to establish a prominent presence in the competitive renovation market.

Company name : UrbanRenovate Builders

Domain name : www.urbanrenovatebuilders.com

The name "UrbanRenovate Builders" captures our emphasis on urban revitalization and renovation expertise. The corresponding domain name aligns with our brand identity and offers easy access to our online presence, enabling potential clients to learn about our services and portfolio.

Market analysis : UrbanRenovate Builders operates in the bustling urban renovation sector, targeting homeowners and commercial property owners seeking modernization and transformation. Our research indicates a growing demand for sustainable and aesthetically appealing renovation solutions, reflecting a shift towards environmentally-conscious living.

Competitive landscape : We have identified key competitors offering similar renovation services, emphasizing the importance of differentiation through innovation, superior customer service and sustainability.

Location : UrbanRenovate Builders will be headquartered in a central urban location, facilitating easy access to our target market.

Premises : Our office space will accommodate project management, design consultations and administrative tasks.

Equipment : We will invest in state-of-the-art construction and design tools to ensure precise execution of projects.

Staffing : Our team will consist of experienced architects, designers, project managers and skilled construction professionals.

Marketing channels : Our marketing strategy involves a mix of digital platforms (website, social media), local advertising (flyers, community events) and participation in home renovation expos.

Campaigns : We will launch a "Before & After" campaign showcasing successful transformations. We’ll additionally launch a "Sustainability Spotlight" campaign highlighting eco-friendly practices, and "Client Stories" sharing positive experiences.

Startup costs : Initial investment of $150,000 will cover equipment, office setup, marketing efforts and staff salaries.

Funding : Funding will come from personal savings ($50,000) and a bank loan ($100,000).

Financial projections (first year) : revenue: $300,000, expenses: $220,000, profit: $80,000

Financial projections (second year) : revenue: $500,000, expenses: $350,000, profit: $150,000

Profitability timeline : UrbanRenovate Builders aims to achieve profitability within the first year of operation, supported by strategic marketing efforts and excellent project execution.

Benefits of creating a contractor business plan

No matter what type of business you’re starting, a business plan offers several key advantages that can significantly contribute to your company’s success.

Funding : A well-written business plan can be instrumental in attracting investors and raising money for your business . Investors want to see a clear roadmap that outlines your business's potential for growth and profitability. A robust plan demonstrates your commitment, knowledge of the industry and strategies to mitigate risks, making it more likely for investors to feel confident in providing financial support.

Resources : A detailed business plan helps you understand the precise resources, supplies and staff required to launch your contractor business. By conducting a thorough analysis of the equipment, tools, materials and personnel needed, the plan ensures that all essential aspects are considered and allocated appropriately. This proactive approach minimizes the risk of resource shortages or mismanagement, allowing for a smoother business launch.

Operational efficiency : A business plan provides a structured outline of your business's operations. It outlines the step-by-step processes involved in executing projects, managing tasks and meeting client expectations. This clarity improves operational efficiency, reduces confusion among staff and enhances overall project management. Additionally, having a well-defined plan in place helps business owners respond effectively to unexpected challenges, ensuring that projects stay on track.

Risk mitigation : Starting a contractor business involves inherent risks, from market fluctuations to unforeseen project delays. A business plan allows you to identify potential risks and develop corresponding mitigation strategies. By addressing challenges proactively, the business is better equipped to navigate uncertainties and disruptions, maintaining its resilience and reputation.

Competitive edge : A well-researched business plan includes a thorough analysis of the market landscape and competitors. This insight will enable you to identify gaps in the market, recognize emerging trends and position your contractor business strategically to stand out. By tailoring your services to meet specific client needs, your business can gain a competitive edge and establish a unique value proposition.

Financial projections : A crucial aspect of any business plan is its financial projections and growth strategy. By outlining revenue forecasts, expense estimates and profit margins, the plan provides a clear picture of the contractor business's financial health. You can set realistic financial goals and create actionable plans to achieve them, guiding your growth trajectory in a sustainable manner.

How profitable can a contractor business be?

Contractor businesses can be very profitable. According to a report by IBISWorld, the average profit margin for contractor businesses is 10%. This means that for every $100 in revenue, contractor businesses generate $10 in profit.

Of course, not all contractor businesses are equally profitable. Some contractors are able to charge higher fees and generate more profit than others. However, even contractors with a lower profit margin can still be successful if they have a steady stream of clients.

Here are some factors that can contribute to the profitability of a contractor business:

Specialization: Contractors who specialize in a particular area of construction or remodeling can charge higher fees and attract more clients.

Experience: Contractors with more experience tend to be more efficient and can complete projects more quickly. This can lead to higher profits.

Reputation: Contractors with a good reputation are more likely to attract repeat clients and referrals. This can lead to increased business and profits.

Marketing: Contractors who effectively market their business are more likely to generate leads and close more deals. This can lead to increased revenue and profits.

If you are considering starting a contractor business, it's important to do your research and develop a plan to make your business as profitable as possible.

Here are some additional tips for increasing the profitability of your contractor business:

Invest in quality tools and equipment. This will help you complete projects more efficiently and reduce costs.

Track your expenses carefully. This will help you identify areas where you can cut costs and improve your profitability.

Negotiate favorable terms with your suppliers. This can save you money on materials and other costs.

Outsource non-essential tasks. This can free up your time so that you can focus on the most important aspects of your business.

Invest in training and development for your team. This will help your team to be more productive and efficient.

By following these tips, you can increase the profitability of your contractor business and build a successful enterprise.

How to market your contractor business

There are a number of ways to market your contractor business. Here are a few tips:

Create a strong online presence. This includes having a professional website and being active on social media. Your website should be well-designed and easy to navigate, and it should include information about your services, experience and contact information. Your social media pages should be updated regularly with interesting content and photos of your work.

Use local search engine optimization (SEO). This means optimizing your website and online content so that it ranks higher in search engine results pages (SERPs) for relevant keywords. When people search for contractors in your area, you want your website to be one of the first results they see.

Run paid advertising campaigns. You can run paid ads on search engines and social media platforms to reach a wider audience. When creating your ads, be sure to target your ideal customers and use relevant keywords.

Network with other businesses in your area. Attend industry events and join trade associations. This is a great way to meet potential clients and partners.

Offer discounts and promotions. This is a great way to attract new customers and encourage repeat business. You can offer discounts for first-time customers, bulk orders or referrals.

Get involved in your community. Sponsor local events or donate to charities. This is a great way to build relationships and generate goodwill.

Focus on your unique selling points. What makes your business different from other contractors in your area? Highlight your unique selling points in your marketing materials and online content.

Use high-quality photos and videos. Show potential customers the quality of your work by using high-quality photos and videos in your marketing materials.

Make it easy for customers to contact you. Include your contact information prominently on your website and social media pages. Make sure to respond to inquiries promptly and professionally.

Provide excellent customer service. This is essential for building a successful contractor business. Make sure to communicate regularly with your customers, keep them updated on the progress of their project and resolve any issues promptly.

Strategies to launch your contractor business plan

Here are some strategies to launch your contractor business plan:

Define your target market and services. Who are your ideal customers? What services will you offer? What are your unique selling points? Once you have a clear understanding of your target market and services, you can develop a business plan that is tailored to their needs.

Create a strong brand identity. Your brand is what will set you apart from other contractors in your area. Develop a logo, tagline and website that are professional and reflect your business values.

Market your business effectively. There are many different ways to market your contracting business. You can use online and offline marketing channels, such as search engine optimization (SEO), social media and networking events.

Get licensed and insured. In most states, contractors are required to be licensed and insured. This shows potential customers that you are a legitimate business and that you are qualified to perform the services you offer.

Build a team of reliable subcontractors. If you're unable to perform all of the services yourself, you will need to build a team of reliable subcontractors. Make sure to check their references and licenses before hiring them.

Provide excellent customer service. Customer service is key to success in the contracting business. Make sure to communicate regularly with your customers, keep them updated on the progress of their project and resolve any issues promptly.

Here are some additional tips for launching your contractor business:

Start small and scale up as you grow. Don't try to take on too much work at once. Start with small projects and gradually build up your business as you gain experience and a good reputation.

Offer competitive pricing. When setting your prices, be sure to research what other contractors in your area are charging. You want to offer competitive pricing without sacrificing quality.

Get involved in your community. Sponsor local events, donate to charities and get to know other businesses in your area. This will help you to build relationships and generate leads.

Network with other contractors. Join a trade association or attend networking events for contractors. This is a great way to learn from other professionals, get referrals and find new opportunities.

Launching a contractor business can be challenging, but it's also very rewarding. By following these tips, you can increase your chances of success.

Contractor business plan FAQ

How do you build a successful contracting business.

To build a successful contracting business, you need to focus on the following:

Provide excellent customer service. This means communicating regularly with your clients, keeping them updated on the progress of their project and resolving any issues promptly.

Deliver high-quality work. This is essential for building a good reputation and attracting repeat clients.

Be reliable and trustworthy. Show up on time and complete your projects on schedule.

Be professional and courteous. Dress appropriately and treat your clients with respect.

Market your business effectively. Let potential clients know about your services and how you can help them.

What type of construction is most profitable?

Can a contractor be a millionaire, want to create another type of business plan.

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Contractor Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their contractor businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a contractor business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Contractor Business Plan?

A business plan provides a snapshot of your contractor business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Contractor Business

If you’re looking to start a contractor business, or grow your existing contractor business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your contractor business in order to improve your chances of success. Your contractor business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for contractors

With regards to funding, the main sources of funding for a contractor business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for contractors.

Finish Your Business Plan Today!

If you want to start a contractor business or expand your current one, you need a business plan. Below are links to each section of your contractor business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of contractor business you are operating and the status. For example, are you a startup, do you have a contractor business that you would like to grow, or are you operating in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the contractor industry. Discuss the type of contractor business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of contractor business you are operating.

For example, you might operate one of the following types of contractors:

• Residential Contractor : this type of contractor business focuses on building new homes or renovating existing homes.
• Specialty Contractor: this type of contractor specializes in one of a variety of construction services, such as site preparation, electrician, finish carpentry, flooring, etc.
• Heavy Construction Contractors: this type of contractor specializes in non-building construction such as roads and bridges or other infrastructure.

In addition to explaining the type of contractor business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the contractor industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the contractor industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your general contractor business plan:

• How big is the contractor industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your contractor business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your general contractor business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, real estate developers, governments, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of contractor business you operate. Clearly, governments would respond to different marketing promotions than help homeowners, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other contractors.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. For example, this includes homeowners who prefer to install their own flooring, or paint their own walls. You need to mention such competition as well.

With regards to direct competition, you want to describe the other contractors with which you compete. Most likely, your direct competitors will be contractors located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of contractor are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior craftsmanship?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a contractor business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of contractor company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to residential building, will you provide office building construction?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your contractor company. Document your location and mention how the location will impact your success. For example, is your contractor business located in a booming housing market, or in a city devoted to upgrading infrastructure, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your contractor marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your contractor business, including preparing and submitting bids, coordinating crews, finding solutions to supply issues, scheduling inspections, billing and other administrative tasks.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to build your Xth home, or when you hope to reach $X in revenue. It could also be when you expect to expand your contractor business to a new city.  

Management Team

To demonstrate your contractor business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing contractors. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in construction or successfully managing projects.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you work on one home at a time, or will you have crews on multiple projects? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your contractor business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a contractor business:

• Cost of computer software.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or blueprints of projects you are working on.  

Putting together a business plan for your contractor business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the contractor industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful contractor business.  

Don’t you wish there was a faster, easier way to finish your Contractor business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.

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How to Draft a General Contractor Business Plan

If you’re starting out on your own as a general contractor, you likely have skills and knowledge in many specialized areas related to your trade. But crafting a general contractor business plan might still feel challenging. So, why do you need one—and where should you start?

In 2021, 5.4 million businesses launched in the U.S. A strong business plan can help you develop a strategy for business success, attract investors, create successful relationships with potential clients in your target market, and begin to make your dream a reality. Best of all, writing one can prove simpler than you think once you learn the purpose of a general contractor business plan—and how to break it down into simple, manageable steps. 

With an effective business plan at your side, your general contractor business could be one of many success stories. 

Advantages of having a business plan as a general contractor

Creating a general contractor business plan can help you clarify your strategy for your business, as well as help you explain your plan to others. 

More specifically, the benefits of having a general contractor business plan include:

• Internal planning – When crafting their business plan, many general contractors consult with other teammates and partners, such as their accountant. Creating a business plan together can provide a natural opportunity to brainstorm, clarify, and make sure everyone’s on the same page as you launch your company.
• Financial planning – A business plan can help keep you on track when it comes time to make important financial decisions and evaluate what makes the most sense for your business in both the long and short term.
• Persuading potential funders – New businesses often need funding in the form of loans or investors to help them get started. A business plan can help you win over potential funders and clearly explain your vision for your business.

What to include in a general contractor business plan

Your business plan may vary depending on your specific vision for your general contracting business. But as you begin shaping that plan, your business plan should focus on these key sections :

• Cover page – Including a cover page with your contact info can make it easier for potential funders to contact you if they like your business or marketing plan. 
• Executive summary – This section quickly and simply describes what your business will do (general contracting), what problem you’ll solve for customers in your community, and five reasons your business will succeed. You can also include how much funding you’re hoping to acquire and your high-level financial projects for your company.
• Company overview – In this section, describe your company location and your legal classification—individual, partnership, or corporation. You can also highlight any successes you’ve achieved or other aspects that will help people better understand—and believe in—your company.
• Analysis of your industry, customers, and competitive advantage – In these three sections, you can break down information about the market you’re competing in, the customers you hope to reach, and why you’ll have a competitive advantage over any other businesses offering similar services. For example, do you have more experience? More existing customer connections? A more cost-effective approach? A higher quality of service? This section lets you show off how well you know your business and how you can improve your customers’ lives.
• Management team – A strong management team with in-depth business planning experience can help guide a business through the first few years. In this section, you can show off your existing team, along with noting any other roles you’re hoping to fill soon. 
• Operations and financial plan – An operations plan focuses on the day-to-day work and goals of your contractor business, along with some important milestones you plan to accomplish in the next few years. The financial plan gives you an opportunity to dive into the numbers, showing your funding goals, your revenue goals, and your expected costs. You can also include an appendix with more detailed financial projections, such as balance sheets, cash flow statements, and income statements.
• Marketing strategy – This section can explain how you’ll present your company and services to customers, and any contractor marketing strategies you plan on using to reach new and existing customers.

If you’re finding a particular section challenging, it might be a sign for you to take a step back and do some more planning or research before trying to write that portion of your contractor plan. You can also consult an expert like small business accountant Amanecer Accounting in New Jersey, or a digital marketing consultant at Agency Partner Interactive in Texas.

Lastly, consider joining a local small business owners group. It’s often a useful and energizing opportunity to receive advice and forge connections with others in your city’s small business community. 

Strategies to launch your business plan from paper to prosperity

Once you’ve crafted a business plan, the next step is to act on it. And if you’re just starting out, one of the most important steps you can take is to make your business known in the community. 

Many years ago, people often found out about new businesses through ads in magazines, newspapers, and the radio, or through word of mouth in the community. Businesses often connected with a customer through the mail or through an in-person conversation. 

Today, many potential customers discover, connect, and talk about customers online. About 3.8 million Google searches happen every minute, and that’s not including all the searches that happen on other search engines. When a potential customer needs a contractor for a home repair or renovation, there’s a good chance they’ll type “General contractor + [City name]” into a search bar. When that happens, you want your business to be one they find. Creating a strategy for how you’ll build an online presence can help improve the odds of customers finding you online. 

Here are some key ways to help your general contractor business stand out from the crowd using your online presence.

Make your business searchable

Some of the factors that can help your web content appear higher in search engine results include: 

• High quality content, including reliable and accurate business information
• Keywords, meta data, complete links, and other internal details that improve search engine optimization (also known as SEO)
• Backlinks, aka other websites that share links to yours
• Easily navigable websites optimized for both abled and disabled users
• A fast loading speed
• Responsive web design, or a website that displays well on both cell phones and desktops

Create a well-rounded digital presence

A digital presence often starts with a website, but it can also include much more. To reach customers through a well-rounded digital presence, consider the following options: 

• Website – A website can help potential customers learn what services you offer, as well as learn about successful work you’ve done in the past and how to contact you. You can build your own website using a template model like Wix or Squarespace, or you can hire a local web design company like Oregon-based business Gray’s Web Design for a more personalized touch.
• Social media – Social media can provide another opportunity to connect with customers, but that doesn’t mean you have to produce content for every possible platform. Instead, try to focus on building a presence on platforms where your customers already hang out, and on platforms that make sense for the type of content you want to produce. For example, if you want to show off “Before and After” photos of completed jobs, you probably want to pick a social media platform where people like to share photos and talk about home and business renovations. 
• Paid advertising campaigns – You can also reach potential customers by running a paid digital advertising campaign. This might involve running digital banner ads on a specific website, social media platform, or simple text ads for specific search engine results. Depending on where you’re advertising, you can often target your ad to a specific geographic location so that you’re not wasting resources advertising to someone on the other side of the country. 
• Nextdoor business account – Nextdoor lets businesses connect specifically with potential customers in the geographic area your general contractor business serves. Through Nextdoor, you can create a free Business Page to connect with customers and establish an online presence. You can also gather recommendations from members to build your reputation as a trustworthy, competent business. Lastly, you can use Nextdoor Ads to promote deals and interact individually with potential customers.

Build your community presence with Nextdoor

Ultimately, you want to ensure that your general contractor business plan includes not just the vision for what your business may one day be—but also the steps you will take to get there. By outlining your funding needs, laying out your key steps, and spreading the word with marketing components, you can build vital connections and gain support within the community you plan to serve.

But you don’t have to do all of this without help. Used by nearly 1 in 3 households across the U.S., Nextdoor helps connect neighbors, organizations, and businesses to build a better community. 

Nextdoor offers key features to help local businesses connect with the customers in their neighborhoods. Creating a free Business Page can make it easier for your customers to find you and for you to build an online presence. Business Posts can help you share information about your services, as well as start conversations with potential customers. Nextdoor Ads can help you run promotions and provide additional exposure for your business. 

Whether you’re taking the first steps toward founding your business or looking for a way to take an established business to the next level, we offer a way for small businesses to connect with their customers. 

NPR. New businesses soared to record highs in 2021. Here's a taste of one of them. https://www.npr.org/2022/01/12/1072057249/new-business-applications-record-high-great-resignation-pandemic-entrepreneur#:~:text=That's%20the%20takeaway%20from%20new,in%202020%20of%204.4%20million . 

National Funding. Why a Construction Business Plan Is Essential and How to Build One. https://www.nationalfunding.com/blog/construction-business-plan/

Forbes. Business Plan Template: What To Include. https://www.forbes.com/sites/davelavinsky/2013/07/18/business-plan-template-what-to-include/?sh=9f26b417fc63  

Forbes. Building A Brand: Why A Strong Digital Presence Matters. https://www.forbes.com/sites/forbesagencycouncil/2020/07/02/building-a-brand-why-a-strong-digital-presence-matters/?sh=16b186db49f2  

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How to Develop a Business Plan for a General Contractor Company

A business plan outlines the goals and objectives of a business, including details about how those goals will be achieved. It’s an important part of your overall plan for success.

Ashley Martin

Managing Editor

Strategic Planning

Being a successful general contractor requires a robust skill set. Obviously, you need construction expertise. You also need strong organizational and management skills.

Plus, a lot of business owners handle their own marketing. There’s a whole other area of knowledge.

But there’s one critical thing two-thirds of business leaders don’t have—a business plan. That’s like going on an unfamiliar road trip without a map or GPS app.

In this article, we break down the basics a general contractor should know about creating a business plan . We’ll explain what a business plan is, as well as the advantages of having one.

Whether your business is brand new or well-established, a solid business plan will help you but as much as 16% more successful.

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What is a business plan.

We’ll start with the official definition.

A business plan outlines the goals and objectives of a business. It should also include details about how those goals will be achieved. It’s an important part of your overall plan for success.

Granted, that sounds impressive. But what does it mean?

Our favorite metaphor for a business plan is one we’ve already mentioned in this article. Your business plan is a GPS system for your business.

If it’s well written, your business plan will clearly indicate where your business is, where it’s going, and how you plan to get there. The strategies in your business plan are like turn-by-turn directions.

Why You Should Have a General Contractor Business Plan

While it’s possible to run a successful small business without a business plan, it’s far easier when you know where you’re going.

That alone is enough reason to write a business plan. You and your staff can refer back to it often to ensure you’re on track and focused. But there are more advantages.

Here are three more reasons to develop a business plan.

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1. create a competitive advantage.

When the economy is booming, general contractors are often overloaded. It’s possible to have a backlog of projects. For many, that happened in 2021 and 2022 .

But what about when there’s a slowdown? How will your business stand out when demand dips?

In 2023, the markets for both residential construction and commercial construction are expected to taper off. Experts predict the economy will rebound toward the end of 2023 and early in 2024 . In the meantime, your construction business will need clear, unique selling points to help it stand out.

That’s where a business plan comes into play.

You need a market analysis detailing your competitors, their unique value, and your target audience. With that, you can define your business’s unique value proposition.

A unique value proposition highlights the one-of-a-kind benefit of doing business with you. It’s what makes you special. Sure, there may be dozens of other contractors in your area, but there are things that make you different from the rest.

Identify your unique value proposition and include it in your business plan. That gives you a serious competitive advantage. You’ll know what you can do that no one else can do in quite the same way.

2. Keep Your Business on Track

Your business plan should also showcase the vision you have for your construction company.

Let’s say, for example, you’ve worked as a contractor for the past five years. In that time, you’ve seen a demand for high-end renovations. You’ve even done a fair number of them. You’ve even fixed the poor-quality work of other contractors who didn’t have your expertise. 

As a result, you aim to put together a team of employees and subcontractors who specialize in catering to high-end clients. That’s your vision for your general contracting company. You want to be the go-to resource for top-tier remodeling work.

A condensed version of your company story lives in your business plan, serving as a reminder of your vision. This provides focus for your team. It will help them know which jobs to bid on, for example. Or which subcontractors to work with. Or how to select materials.

Said another way, your vision defines your business. It helps you avoid taking on a construction project that’s not a good fit. It serves as a way to navigate, providing guidelines for the choices you make day in, day out.

It also shows lenders, investors, and other stakeholders why your construction business might be a good investment for them. (What a convenient lead in to the next section.)

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3. attract business funding.

In addition to your company vision, your business plan should outline your expected financial future.

That includes key pieces of information like:

• Projected operational costs for your construction business
• Forecasted timeline to profitability
• Current capital and funding
• Growth projections

For example, you might need $30,000 in startup funds. That will cover initial supplies, your business insurance policy, and a small marketing budget. Furthermore, operational costs might be $10,000 each month. And you might project that you can start seeing a profit margin in 18-24 months.

You should detail all of these costs and financial projections in your construction business plan.

These numbers show lenders, angel investors, and other funding sources how much you need and why. They also demonstrate that you expect to be profitable after a specific time period. That’s presumably when you’ll be able to repay your loans and when investors can expect a return on their investment.

Few investors will want to back a construction company without a plan. Including all of this in your business plan shows them you have a solid strategy for creating a successful business.

What a Business Plan Should Include

All the information in your business plan will fall into one of two categories:

• The Foundation – The core parts of your business plan, including things like market research, organizational management, and services offered. Think of this as an overview of your business.
• The Future – The plans you’re laying out for taking your business from where it is present-day to where it could be. These include your marketing plan, financial outlook, and long-term growth plan.

Ready to get started? Let’s dive into the details.

Executive Summary

An executive summary is like a detailed outline of the rest of the business plan. It sums up all the other sections, providing a brief preview of what’s in each section.

This section should be short.

As this section includes key data from the rest of your business plan, you may want to write it last.

Company Overview

A company overview is an introduction to your business. Think elevator pitch. It states what your business is all about. It should cover:

• Who you serve
• The services you offer
• Information about the management team

Like the executive summary, it should be concise. You don’t need to tell your complete company story here. Instead, just cover the basic bases.

Service Offering

The service offering section is an opportunity to outline the specific kinds of work you specialize in. After all, “contracting” is a broad category. There are dozens of potential areas of specialization.

Use this section to detail the scope of your services.

Remember, too, that you can add to or subtract from this section when you revise your business plan in the future. It’s okay if the plan changes.

Market Analysis

The market analysis (or market research) section is where you lay out the current state of the construction industry in your area.

• Your target audience
• Your main competitors
• Any other relevant factors, like gaps in the market

Market analysis is critical for your marketing plan (covered below). It provides important information for homing in on effective marketing strategies.

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Organization & management.

The organization & management section is where you share your construction company’s leadership structure.

Include things like:

• Your company org chart and business structure
• The roles and responsibilities of key staff
• Reporting lines and management relationships
• Who’s accountable for making decisions

This is the place to document how you’ll function day-to-day. Without a clearly documented organization & management section, it will be hard to lead employees or work with partners.

Marketing & Sales

The marketing & sales section should give potential investors an idea of how the business will turn a profit. The section has two components. Each of these should be focused on how you’ll generate leads, close business, and create ROI.

Unique Value Proposition

This is your chance to differentiate your small business from the competition.

Provide detailed info about who your target clients are and how your services will stand out within the market.

How will you determine pricing for your services?

Outline your pricing strategy, including how you’ll ensure costs are covered while still turning a profit. The goal here is balance. You want to make money without overcharging your customers.

Avoid the temptation to price your services either too high or too low.

Marketing Plan

This is where you outline your small business’s growth strategy.

For a local construction business, this section might include things like local advertising, community involvement, and local partnerships.

You’ll also need a digital marketing strategy, which could include a professional website, a presence on social media, and digital advertising.

Marketing Budget

You’ll also need to include how much you’re budgeting for marketing costs.

While there are free DIY marketing options out there, they often fall short. It’s best to have at least a modest marketing budget right from the start.

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Financial projections.

The financial projections section provides a peek into potential future revenue and expenses. Consider creating projections for the next three to five years.

This will help potential investors understand where you are and where you’re headed. They’ll definitely want an idea of potential profitability.

Here are some key projections you might include in your business plan.

Sales Projections

Based on your marketing plan, how much do you plan to sell each month? What’s the estimated profitability per sale?

Break this information down into weeks, months, quarters, and years. And be sure to take seasonality into account. Some contractors see steady business all year round, but most see dips during specific seasons.

Expense Projections

Detail your expected costs each month, including fixed costs like payroll and rent, if applicable.

You can also include a specific number to account for unexpected business expenses. This can be really handy if you’re just starting out. That way, something like a vehicle repair doesn’t derail your whole projection of expenses.

Balance Sheet Projections

A balance sheet lists your construction company’s assets and liabilities. You’ll want to show your current assets and liabilities as well as what you expect in the future—say three to five years from now.

Cash Flow Projections

Cash flow refers to how much money is coming into and out of your company over time. This could be a large number.

Cash flow includes expenses, like the cost of supplies. It also includes gross revenue. You’ll want to take some time to really think through your cash flow rather than making a quick guess at the number.

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Laying the foundation for your business plan now.

Creating a business plan is no small thing. It can take some time to pull together all the necessary information. Plus, you’ll likely want to give yourself plenty of time to think through your strategic approach to things like marketing and financial projections.

But there are things you can do to jump-start the process. If you’re ready to get going right away, here are some things you could do right now to begin.

• Write out your vision for your company. There’s a good chance you already know what you’d like your construction company to be known for. Write a short paragraph detailing what you have in mind.
• Look at 5 competitors’ websites. See if you can tell what their unique value proposition is from their homepage—if they have one. Also, pay attention to how they present themselves.
• Take stock of your current assets and liabilities. What do you have in your business account right now? What equipment do you already own? How much debt is your construction company carrying today?
• Assess your current marketing efforts. Do you have a marketing budget right now? If so, how are you spending it? If not, how are you getting new customers? Is there a specific kind of marketing that brings in most of your customers?

About the Author

Ashley’s professional experience includes content creation of all kinds, from articles and infographics to websites and whitepapers. When she’s not working, she enjoys dark coffee, dad jokes, and fiction—mostly horror and urban fantasy.

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General Contractor Business Plan Template

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To help general contractors succeed in their business endeavors, ClickUp’s General Contractor Business Plan Template includes:

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Crafting a solid business plan for your general contracting company is crucial for success. follow these four steps using the general contractor business plan template in clickup:, 1. define your business vision.

Start by outlining your company's mission, vision, and values. Clearly define what sets your general contracting business apart from competitors and establish your long-term goals. This will serve as the foundation for your business plan.

Utilize the Goals feature in ClickUp to set specific, measurable objectives for your contracting business.

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Create a comprehensive financial plan that includes budget projections, revenue forecasts, expected expenses, and cash flow analysis. This will help you understand the financial health of your general contracting business and make informed decisions.

Utilize custom fields in ClickUp to input financial data and calculate key metrics for your business plan.

4. Outline your marketing and operational strategies

Define your marketing strategies to reach your target audience effectively. Additionally, detail your operational plan, including project management processes, team structure, and resource allocation. This will ensure that your general contracting business runs smoothly and efficiently.

Use Automations in ClickUp to streamline your marketing efforts and automate repetitive tasks for operational efficiency.

Get Started with ClickUp’s General Contractor Business Plan Template

General contractors can leverage the General Contractor Business Plan Template in ClickUp to streamline the process of outlining their company's goals and strategies for success.

To get started, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Ensure you specify the Space or location in your Workspace where you want this template applied.

Next, invite relevant team members or partners to your Workspace to begin collaborating.

Now, maximize the potential of this template to create a comprehensive business plan:

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Commercial Contractor Business Plan

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Twin Brothers Construction

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Twin Brothers Construction (TBC) plans to become a leading provider of construction and renovation services in the local area. The company’s overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress.

TBC is a company, with principal offices located in the local area. The company’s management is highly experienced and qualified: the brothers who will lead the management team have each accumulated over twenty five years of experience in the construction industry.

Products/Services Through their years of experience, TBC’s owners have developed sophisticated bidding, scheduling and materials solutions for some of the most complex construction projects being done today. The company will use versatile and completely adaptable methods for a variety of building configurations.

Owners, developers, construction managers, general contractors, and sub-contractors are expected to realize substantial savings in labor and material costs by using the company’s construction methods and systems. Applications include commercial and residential structures.

The Market The housing industry has been growing at a fast pace for several years. An all-time record was set in 1998, when 886,000 new-site single family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 1997. Although there was a slight drop in the number from 2003, this makes for an excellent opportunity for future expansion of the industry.

Twin Brothers Construction plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The marketing strategy will focus on securing city, county, and state and federal government contracts.

TBC plans to use a direct sales force, relationship selling, and sub-contractors to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

Financial Considerations We expect to pass the break-even point in the second half of the first year. Despite initial large outlays in cash to promote sales, the company’s cash account is expected to remain healthy. The company expects approximately $772,000 in sales revenue and reasonable net profits by Year 3.

1.1 Mission

Our mission is to be the best partner for our customers, suppliers and employees. To realize our vision, we will strive for profitable growth, operational excellence, customer satisfaction and strong brand positioning.

1.2 Objectives

• To have up to three construction projects established within the first year.
• To have two building renovation projects in progress by the end of the first year.
• To locate and purchase our first rental building by the end of the first year.
• To achieve at least 7% profit by the second year.

1.3 Keys to Success

We believe our keys to success will be:

• Using the most updated materials and equipment to assure quality construction projects for ourselves and our customers.
• Educating the customers and providing valuable advice during the construction planning stages.
• Helping to confirm customer’s research about targeting markets and specific sectors.
• Overseeing the logistics associated with a project, which can include arranging local transportation, booking meetings etc.
• Assigning the actual work to an experienced and qualified third-party contractors and sub-contractors.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The brothers will invest a total of $90,000 combined ($55,000 and $35,000) in the start-up of the company. Initial cash requirements will total $50,000. Start-up assets total $55,000.

2.1 Start-up Summary

The following table describes our start-up requirements. One of our biggest start-up expenses involves the creation of a website. Ongoing maintenance expenses for the website are included in our Profit and Loss expenses section.

2.2 Company Ownership

The company ownership will be shared by the Chairman and Chief Executive Officer in the following percentage amounts:

Chairman = 60%

Chief Executive Officer = 40%

Both owners are veterans in the building industry, each with over 25 years experience.

Products and Services

TBC will sell its services to clients in the area of commercial construction and renovation. The company’s staff will design specialized construction drawings that outline the schedule, work sequence and the materials needed for building and renovation construction projects. Owners, developers and general contractors will realize substantial savings in labor and material costs by using TBC’s customized performance methods. TBC’s methods will offer complete adaptability at cost-effective prices. The drawings that the company will furnish to the contractor will specify the order of assembly and erection, including the location of the strongbacks and joists, the location and actual loading of the ties, location of accessories and advise clients of the maximum allowable rate of concrete placement.

A longer-term service will be commercial building rental management. This will include the purchase of commercial building sites or existing buildings that need renovation, coordinating the construction/renovation, then managing the rental of the property. The company will also be looking for existing property owners whose properties need renovation to update and increase its income potential, with TBC eventually taking over the management of these properties on behalf of the owner. 

To enter the market with minimum overhead costs, TBC plans to utilize in the first year of operation mainly sub-contractors and independent experts for its building and renovation projects.

Accident prevention will be the cornerstone of TBC’s safety commitment. The company will strive to eliminate foreseeable hazards which could result in personal injury or illness; at TBC, health and safety will not be compromised. 

Market Analysis Summary how to do a market analysis for your business plan.">

There were about 792,000 construction companies in the United States in 2002: 237,000 were building construction contractors; 60,000 were heavy and civil engineering construction or highway contractors; and 496,000 were specialty trade contractors. Most of these establishments tend to be small, the majority employing fewer than 10 workers. About 4 out of 5 workers are employed by small contractors.

Construction offers more opportunities than most other industries for individuals who want to own and run their own business. The 1.6 million self-employed and unpaid family workers in 2002 performed work directly for property owners or acted as contractors on small jobs, such as additions, remodeling, and maintenance projects. The rate of self-employment varies greatly by individual occupation in the construction trades.

One longer-term field of operation for the company will be the selling of building material and components to contractors. By slowly establishing itself as a first-rate material provider, the company expects to broaden and strengthen its stance in the local building industry. Initially it will focus on purchasing supplies for its own construction and renovation projects, then use those completed projects as marketing examples to showcase the quality of materials used and the customized approach used to design and construct them.

The company plans to develop marketing alliances with industry leaders and pursue new sales of its services to commercial builders. The market strategy is to capitalize on the company’s future alliances by securing city, county, and state government contracts.

TBC also plans to use a direct sales force, relationship selling, and sub-contractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

4.1 Market Segmentation

The overall Construction Industry was segmented in 2002 as follows (employment in thousands):

Source: U.S. Department of Labor, Bureau of Labor Statistics (March 9, 2004)

For the purpose of this paper we shall segment our initial targeted market as follows:

• Office Building Construction
• Building Facilities Renovation
• General Construction

4.2 Service Business Analysis

The construction industry is divided into three major segments. Construction of buildings contractors, or general contractors , who build residential, industrial, commercial, and other buildings. Heavy and civil engineering construction contractors who build sewers, roads, highways, bridges, tunnels, and other projects. Specialty trade contractors who are engaged in specialized activities such as carpentry, painting, plumbing, and electrical work.

Construction usually is done or coordinated by general contractors, who specialize in one type of construction, such as residential or commercial building. They take full responsibility for the complete job, except for specified portions of the work that may be omitted from the general contract. Although general contractors may do a portion of the work with their own crews, they often sub-contract most of the work to heavy construction or specialty trade contractors.

Specialty trade contractors usually do the work of only one trade, such as painting, carpentry, or electrical work, or of two or more closely-related trades, such as plumbing and heating. Beyond fitting their work to that of the other trades, specialty trade contractors have no responsibility for the structure as a whole. They obtain orders for their work from general contractors, architects, or property owners. Repair work is almost always done on direct order from owners, occupants, architects, or rental agents.

Twin Brothers Construction will concentrate its activity in the following areas:

• Commercial Building Construction
• Commercial Building Renovation
• Buildings Management and Rental
• Building Materials Supplies

Strategy and Implementation Summary

TBC plans to use a direct sales force, relationship selling, and sub-contractors to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels. The owners of TBC want to emphasize to their potential customers that they are more than general contractors, they are complete construction coordinators.

TBC plans to advertise in magazines, newspapers, and radio. Initially a website with information on the company owners, their construction background, and contact information will be available online. References to the website will be mentioned in all other forms of advertising. Channels used to reach market segments include: sales associates, the Internet and direct mail.

In addition, The table and chart below outline the company’s sales forecast for FY2005-2007. In our sales forecasts, the cost of sales includes only direct labor costs.

5.1 Competitive Edge

The company plans to become a leading provider of construction services in the local area. To achieve this, TBC will invest in many ways that will pay off in competitive advantages for its customers, for example:

• Pre-job conferencing upon request
• Assist in technical or conceptual design
• Assist in supervision when other contractors are employed
• Organize project supervision facilities and staff
• Organize delivery of purchased materials
• Furnishing after-market products

5.2 Marketing Strategy

Our marketing strategy is the key to our success:

• Emphasize our name and unique services through advertising, including a Web page of contact information. An amount of $10,000 for the design of the website has been included in the Start-up expenses with ongoing maintenance costs estimated monthly.
• Focus on commercial building and renovation projects as our initial and primary target markets.
• Use completed projects to showcase our customized construction project management to prospective clients.  

5.3 Sales Strategy

Sales success requires planning. The company will formulate its sales strategy and tactics to achieve sales success by following these steps: 

Step 1 – Analyzing The Company’s Potential: Step through a structured process to help us develop a sales strategy.

Step 2 – Strategize Around Strengths: The description of sales activity will be analyzed to produce a report on factors impacting sales potential and ways to strengthen this potential.

Step 3 – Develop Tactics: Receive guidance to develop a comprehensive tactical plan to achieve success.

Step 4 – Measure Our Past Success: Develop key measurements that mark the progress of financial estimates that guide our growth.

Final Step – Employ An Action Plan for Success: Provide sales force with a tactical plan that is aligned with management’s strategic objectives.

5.3.1 Sales Forecast

The company will start its operation in the first year by focusing on two areas:

• Direct construction work
• Renovation of existing buildings

Starting later in the second year and continuing into the third year the following areas of operation will be added:

• Renting of Industrial Spaces
• Sale of components and other building materials and components

The following table details the forecasts.

5.4 Milestones

The milestones table describes the steps required for the beginning of operations. Steps might take longer than estimated, however the owners and the staff will do their utmost to adhere to this timetable.

Web Plan Summary

The cost to create a website has been included in start-up costs, with website maintenance costs included in our ongoing expenses. The initial website will have basic contact information and background about the company owners. Later, it will show information about current projects as well as completed projects as examples of what the company can do. Once the building materials portion of the business is well established, the website will expand to include an online store. At this point in the business plan, there are no estimates for the cost of this expansion and it will need to be researched and planned for more thoroughly at a later point.

It will take time before the initial cost outlay for the website will pay for itself in potential customers, but once established, it will provide a cost-effective way to communicate to new and existing customers.

We will mention our website address as part of our other advertising media.

6.1 Website Marketing Strategy

We hope to be able to secure links to our website from the local city and chamber of commerce websites as well as local construction-related websites that we can affiliate with.

6.2 Development Requirements

We will contract with a Website developer to initially design the look and information provided on the website. Our initial cost for this design also includes the first six months of website maintenance by the website developer. In October, we plan to hire a technician with experience in website maintenance to troubleshoot and maintain the Website internally.

Once the business has progressed, we will either increase this person’s hours from temporary to a full-time position, or we will hire a second temporary technical position to assist in the re-design and expansion of the website. Our long-term goal is to have an online store for the sale of building materials and components.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The company’s management philosophy will be based on responsibility and mutual respect. Twin Brothers Construction will maintain an environment and structure that will encourage productivity and respect for customers and fellow employees.

TBC will be responsible to its employees and sub-contractors, the men and women who will work with the company throughout the state. At TBC everyone will be considered as an individual and the company will respect their dignity and recognize their merit. Employees will be encouraged to have a sense of security and pride in their jobs. Additionally, employees will be free to make suggestions and complaints. The company will afford equal opportunity for employment, development, and advancement for those qualified.

TBC employees will be committed to:

• Providing a safe work environment to protect employees, the employees of customers and sub-contractors, and the public.
• Supplying safe products for customers.
• Continuously improving the company’s safety program to reduce the risk of accidents and occupational illness in a changing work environment.
• Encouraging employees to participate in accident prevention programs and take personal responsibility for their own and their co-workers’ health and safety.
• Regulatory compliance and contribution to high safety standards for our industry.
• Monitoring workplaces, enforcing safe work practices, and communicating the company’s safety performance to employees and other stakeholders.
• Making safety a value-added service that the company provides to its customers.

The company is planning to expand its personnel to add more job superintendents as soon as the number of projects increases. These superintendents will have the following duties:

Direct supervision of all work at the job sites:

• Quality Control
• Scheduling sub-contractors and material deliveries  
• Verifying and insuring that all work is done in accordance with plans
• Insuring that all work is performed in accordance with all OSHA guidelines

7.1 Personnel Plan

The personnel plan is based on the two owners to guide and oversee the operations that will be managed by themselves. Having been in business for over 25 years, they have agreed to draw very low salaries for the first two years to offset some of the initial expenses in starting the business. 

For the first year, the company will hire temporary and part-time employees and sub-contract with consultants and construction professionals to perform the variety of tasks needed. Also, our contracted construction personnel expenses are reflected in our Sales Forecast as cost of sales, not part of our personnel table, since they will not be regular employees of the business.

TBC will be committed to conducting business in a manner that protects the health and safety of all employees, customers, and persons living in the community where it operates. To accomplish this, the company will ensure that it complies with current Health Administration and Occupational Health and Safety laws and will maintain its operations, procedures, technologies, and policies accordingly.

Each employee will have the responsibility to fully comply with established safety rules and to perform work in such a manner as to prevent injuries to themselves and others. TBC will be very concerned about job-site safety and plans to set up a comprehensive safety program.

Financial Plan investor-ready personnel plan .">

The brothers have long-term experience in the local construction industry. They are willing to invest heavily in this new company and their accumulated experience will insure success for the new venture. It will be important to watch closely the salaries and regular expenses to assure that the company will not suffer from lack of sufficient cash to fund its operations.

• We assume a conservative entrance and steady growth in the market.
• We assume a slow financial progress based on initially conservative sales against highest expenses.
• We assume there will not be an economic crash that would greatly hinder our target market’s access to their personal luxury finds.

The following sections describe the financials for TBC:

8.1 Projected Profit and Loss

Twin Brothers Construction is in the early stage of development, thus initial projections have only been made based on the sales projections and efficient cost control measures in place. Our first year monthly net profits will become positive by October, but we will still close the year with negative profit. This is primarily because of personnel expenses, which include salaries and the cost of sales for sub-contractors.

8.2 Break-even Analysis

During the first year of operations, the break-even monthly sales volume is estimated as shown below. Our average percent variable reflects our cost of sales which covers contracted construction payroll costs.

8.3 Projected Cash Flow

8.4 Projected Balance Sheet

The following table outlines our Balance Sheet.

8.5 Business Ratios

The following Ratios table includes industry profile comparison ratios for Commercial and Office Building Contractors (Standard Industry Code #1542).

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How to Start a General Contractor Business in 14 Steps (In-Depth Guide)

Updated:   February 22, 2024

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The construction industry is booming, with the overall market expected to reach $12.7 trillion globally by 2027. In the US alone, over 712,000 contracting firms brought in $1.4 trillion in revenue in 2021. This massive industry presents a major opportunity for aspiring business owners looking to tap into steady demand.

Launching a successful general contracting firm requires more than just construction know-how. You need to understand bidding, project management, HR, financing, and legal compliance. Building up a solid reputation and network of repeat clients is also essential.

This guide will walk you through how to start a general contractor business. Topics include market research to build a business plan, competitive analysis to learn about market trends, customer focuses to improve brand loyalty, registering your EIN, and more.

1. Conduct General Contractor Market Research

Market research is essential to open a general contracting business. Research offers insight into market trends, your target audience, the right type of business license, where to source materials, and more.

Some details you’ll learn through a general contractor business structure include:

• Residential building leads the construction industry.
• With high demand and low housing inventory, residential contractors should continue seeing steady business.
• Office, healthcare, educational, and public safety structures also offer lucrative opportunities.
• As the economy recovers post-pandemic, commercial construction will ramp up.
• Infrastructure spending by government agencies supports public works projects too.
• Securing government contracts can provide general contractors with major revenue.
• Specialty trades within construction are growing faster than the overall industry.
• Focusing on higher-growth niche markets can thus boost success.
• Becoming an established general contractor still poses challenges.
• Startup costs, licensing requirements, skilled labor shortages, supply chain issues, rising material prices, and intense competition all create barriers.

With proper planning, expertise, and grit, the expansive construction industry can offer financial freedom. Analyzing local market conditions, developing a sound business plan, securing financing, building up operations, and delivering superb service quality are key.

2. Analyze the Competition

Understanding the competitive landscape is critical for any new contractor in their local area. Taking time to thoroughly evaluate established rivals can reveal key opportunities for positioning your firm and going after less saturated markets.

• For brick-and-mortar contractor businesses, drive around town and identify competitors’ signage on active job sites.
• Take notes on the locations, types of projects, size of homes or buildings, and anything that gives hints about their target clientele.
• Search online to find their websites as well, looking for how they market their services.
• Compile a spreadsheet with competitor details like years in business, photos of past projects, number of reviews, services offered, certifications claimed, and any unique selling points touted.
• Evaluating online presence also matters today.
• Search yourself as a customer to see ratings and feedback left for competitors.
• Identify who dominates first-page search rankings for relevant keywords like “home remodels” too, signaling their digital marketing strengths.
• Analyze permit data from sources like Construction Monitor to gauge each firm’s contracting activity over time.

Combining online intel, public data, job site observations, and insider opinions lets you map the competitive landscape surrounding general contractors in your area. Identify potential gaps in the market or subpar players you can improve upon. Also, note the strengths of top firms that you may want to emulate.

3. Costs to Start a General Contractor Business

Starting a contracting company requires significant upfront capital and responsible financial planning to cover ongoing overhead while slowly building up your clientele.

Here is a realistic breakdown of typical expenses aspiring contractors face:

Start-Up Costs

• Licensing & Registration Fees – $200 to $500 You’ll need to pay licensing and permit bonds with your state contractor’s board. Costs vary but typically start around $200.
• Insurance – $3,000 per year A standard general liability policy runs $50k to $100k a year. Product liability and other coverage may be extra.
• Equipment & Tools – $15,000 to $75,000 Expect a major investment in equipment like trucks ( box trucks , semis, hot shot trucks , etc.), trailers, loaders, generators, and all the power/hand tools required for your trade and distribution services .
• Office Lease Deposit – $3,000 to $5,000 Unless working from home initially, put at least a few thousand down for the first/last month’s rent on basic office space.
• Legal & Professional Fees – $2,000 Lawyers and accountants cost money when starting a business. Budget accordingly.
• Marketing Collateral – $1,500 Website, graphic design services, printed marketing materials. This gets your branding and name out there.
• Miscellaneous Supplies – $1,000 Office furniture, computers, phone/internet, inventory prep, and other random needs add up.

Ongoing Costs

• Insurance Premiums – $250 to $830 Paying monthly premiums towards your annual liability insurance costs.
• Office Rent – $1,200 to $1,800 Modest commercial unit rents range from $1 to $1.50/square foot monthly.
• Salaries & Wages – $4,000+ per employee. Expect to hire administrative help and laborers to grow. These costs add up quickly.
• Gasoline & Vehicle Maintenance – $750+ Fuel and keeping your fleet running well has ongoing costs.
• Tools/Equipment Maintenance – $500 Construction equipment requires proper upkeep and replacements as things wear out.
• Office Supplies – $250 Misc supplies like paper, pens, postage, cleaning items.
• Utilities – $350 Electricity, water, phone, internet, and other utilities.
• Accounting & Payroll Services – $150+ per month. Outsourcing payroll, quarterly taxes, and accounting tasks costs but saves headaches.
• Insurance Annual Premiums – $3,000+ per year. Some premiums may only require annual instead of monthly payments.
• License Renewals – $100 to $250 per year Stay compliant with all state and local licensing maintenance fees.
• Continued Education – $500 per year Many states require contractors to earn continuing education credits yearly through courses. Budget for class costs and time off.
• Taxes – 30% of taxable income Plan for quarterly estimated income tax payments. You may owe 30% or more of taxable earnings.

As you can see, running a properly equipped, licensed, and staffed contracting business has hefty start-up and ongoing costs. Conservatively project your cash flow needs and secure financing before leaping. Once established, a well-built construction services firm can deliver long-term profitability.

4. Form a Legal Business Entity

To form your own general contractor business, you must first form a legal business entity. The business structure you choose impacts everything from ownership decision-making to liability. The four most common entities include:

Sole Proprietorship

Simplest structure with no formal registration needed beyond licenses. However, no legal separation exists between you and the business. General contractors face substantial liability risks that can bankrupt you personally without protection.

Partnership

Allows sharing ownership and liabilities with a partner. May access greater funding by combining assets and credit. However, any partner’s negligence leaves the other exposed legally and financially. Messy to dissolve if disagreements occur. Rarely suitable for contractors considering hazards.

Limited Liability Company (LLC)

Provides liability protections for members while limiting personal risk only to your investment as an owner. Taxes as a pass-through entity. No double taxation on corporate earnings. Overall best option for shielding contractors from debts and legal claims arising from projects while operating flexibly as a small business. Easy to add members/investors too as you grow.

Corporation

Establishes the contracting firm as a legal entity entirely separate from owners. However double taxation occurs on corporate profits and earnings distributed to shareholders. Significant legal paperwork is needed for formation/dissolution. Works for larger contractor businesses wanting to raise funds via share offerings and have a perpetual enterprise beyond current ownership. But cumbersome for small operators.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) serves as a unique tax ID number for your business to identify it specifically to the IRS. Similar to how your SSN identifies you as an individual for tax purposes, an EIN does the same for a business entity.

As a contractor, legally you must obtain an EIN if you do any of the following:

• Have employees
• Operate your contracting business as a corporation or partnership
• File retirement or excise tax returns
• Have a Keogh retirement plan

If you run your business as anything beyond a sole proprietorship, you likely require an EIN. Some states may also need you to have one before issuing state tax IDs or business licenses.

Applying for an EIN with the IRS only takes a few minutes online. Simply:

• Go to the IRS EIN Assistant
• Answer questions about your business and ownership structure
• Provide basic contact details
• Get your EIN immediately upon submitting the form

The entire application to obtain your federal EIN is free directly from the IRS and gives you an essential tax identifier for operating legally.

You’ll also want to visit your state’s business tax website afterward to register for sales tax reporting needs, which vary by location. Handling both federal and state requirements upfront ensures full legal compliance as a contractor.

6. Setup Your Accounting

Proper financial record-keeping is crucial in the contracting field given large purchase volumes, payroll needs, tax liabilities, and complex project budgets. Getting set up correctly with accounting software streamlines tracking all transactions and expenses.

Hire an Accountant

While programs help organize finances, partnering with an accountant uniquely qualified in contractor operations brings further value through customized bookkeeping, job costing analysis, quarterly sales tax filings, and identifying all allowable deductions you may miss out on. Expect to invest around $200 per month for full reconciliation services up to assistance in preparing year-end returns.

Open a Business Bank Account

Separating business and personal finances also remains critical. Keep expenses clear and compliant by using a dedicated business checking account and credit card solely for company purposes.

Apply for a Business Credit Card

Applying for contractor business cards looks at your company’s financials rather than your credit score. Provide your EIN, time in business, revenue, and other key details. Expect a lower credit limit initially but responsible use builds your business credit.

Accounting Software

With intricate projects, payroll runs, equipment purchases, and material costs, construction accounting gets complex fast. Using the right accounting software streamlines services. QuickBooks is the leading accounting software product to simplify invoicing, payroll, and more.

7. Obtain Licenses and Permits

Operating legally as a contractor requires more than just technical skills – proper credentials mandated by law matter too. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Failing to comply with any required permitting and licenses can lead to tens of thousands of dollars in fines, inability to pull local permits, legal action from injured parties, revocation of your state contractor registration, or worse. Doing things by the book protects your business just as much as your clients.

Common licenses include:

• Contractor’s License – Issued by a state licensing board after proving technical competence, financial stability, and knowledge of building codes/regulations. Usually requires both a written exam and practical demonstration of skills.
• Home Improvement Contractor Registration – Over a dozen states mandate that contractors specifically doing remodeling projects like kitchens, baths, and additions formally register with state authorities.
• Lead Certification – Federal EPA rules require contractors disturbing paint in pre-1978 homes to obtain Lead-Safe certification for minimizing hazards and safely containing contamination. Mandatory despite costly classes and fees.
• Trade-Specific Licenses – Electrical, plumbing, and HVAC work needs licensed professionals under state laws. Subcontract specialty services until holding these credentials (or don’t provide them illegally).

Secure all mandatory licenses before marketing services, pulling permits, or signing contracts. Renew registrations punctually too and save all credential documents on projects. Skilled trades may require ongoing education as well to uphold licenses over time. Streamline compliance by using tools like LicenseSuite to confirm specific requirements based on your locations and specialties.

8. Get Business Insurance

Securing proper business insurance protects contracting companies from financial ruin when the unpredictable occurs on job sites:

General liability insurance handles 3rd party property damage and bodily injury claims. It shelters you from expenses should a site accident or failure like a collapsed wall hurt someone or destroy belongings. Policies start around $1,000 annually.

Going uninsured threatens your company’s survival through:

• Customer Injury Lawsuits – Say faulty scaffolding collapses and shatters a client’s leg. Their medical bills and lost wages could easily exceed $100k, bankrupting you.
• Employee Injury Claims – You pay worker’s compensation but if lapsed, even one worker falling off a ladder could bring a six-figure liability.
• Client Property Damage – Something as basic as a damaged driveway from a cement truck mix-up could run $50k+ to fix.

Obtain quotes tailored to your trade services and risk profile from providers like Next Insurance and Hiscox . Expect at a minimum:

• General Liability – Covers 3rd party injury/damage
• Workers Compensation Insurance – Shelters payroll workers if injured
• Tools & Equipment – Reimburses stolen/damaged assets

In just minutes you can apply online and secure coverage necessary for operating safely at scale. Don’t gamble everything on avoiding mistakes – get insured properly first.

9. Create an Office Space

An office provides contractors with centralized space for meeting clients, storing documents, managing staff, and housing equipment securely. While starting home-based saves costs, location-based offices prove useful as you grow.

Coworking Space

Shared spaces like WeWork offer cost efficiency with amenities (conference rooms, printing, front desk staff, etc.) he, helpful when meetings arise. Typically $200 to $500 monthly for flexible access. Limitations on storage and noise may interfere with workflow.

Retail Office

Rarely suitable unless also operating a showroom. Customers won’t regularly visit offices when projects happen on-location. Significant overheads like long leases and retail buildouts cut into margins with little upside.

Commercial Office

Leasing basic office space in a business park optimizes professionalism when clients visit to sign agreements and access files. Expect small units (2-5 rooms) to start at around $1,000 monthly plus utilities and telecom costs. Allows room for admin staff and dedicated conference space to showcase your operations best when growth allows for the sizable rent investment.

10. Source Your Equipment

From power tools to heavy machinery, properly equipping a new construction business means encountering major costs. Balancing quality and value when acquiring assets saves money long-term.

Shiny finishings may impress but modern tools and fleet vehicles lose significant value immediately. Local dealers offer convenience but high prices compared to discounts online. Use Amazon Business for up to 45% off name brands on large orders.

Buying Used

Previous owners mean wear and tear, but used equipment costs a fraction of new while still performing for years. Scout deals on marketplaces like Craigslist , OfferUp , and Facebook Marketplace . Traveling to inspect the condition first is worth avoiding online scams.

Long-term rentals make little financial sense but meet temporary spikes in project demands. National chains like Herc Rentals offer contractor rates while mom and pops provide better customer service. Using rentals strategically when buying extra machinery seems wasteful.

Pay recurring fees over 3-5 years in exchange for maintenance/repair inclusion from dealers. Ideal for complex machinery like bulldozers or cranes. Credit checks determine rates, so smaller operators may not qualify. Leasing simplifies upgrading later without major out-of-pocket expenses.

11. Establish Your Brand Assets

Crafting a distinctive brand presence fuels recognition and trust in an increasingly crowded contractor marketplace. Investing in professional branding signals operational legitimacy and a commitment to quality to prospective clients from the outset.

Getting a Business Phone Number

Toll-free numbers make far-flung jobs reachable for customers. Cloud-based systems like RingCentral provide customizable greetings, extensions, voicemail, and analytics revealing call volumes and peak times. Expect around $30 monthly for robust features and reliability vital for never missing project inquiries.

Creating a Logo and Brand Assets

Consistent logos, typefaces, color schemes and messaging visually unite websites, trucks, apparel, signs, and other surfaces. Looka’s AI logo maker delivers multiple on-brand concept drafts matching your vision affordably. Opt for icon-driven designs that symbolize your specialty trade for memorable impact.

Business Cards and Signage

Professionally printed cards establish credible first impressions when meeting homeowners and subcontractors. Highlight beautiful past project photos and key contact info concisely. Pair with job site signage so passersby can instantly recall your brand later. Vistaprint offers 500 basic cards affordably.

Purchasing a Domain Name

Domains with your business name instill consumer confidence in search standing out vs rivals. Use .com over alternatives and check trademark conflicts. Namecheap features affordable registration and hosting bundles to then build out your online presence.

Building a Website

Well-designed websites demonstrate technical competence through visual portfolios and client testimonials. DIY site builders like Wix offer template-based simplicity for under $15 monthly. Or hire a web developer on Fiverr for a more robust custom site if budget allows.

12. Join Associations and Groups

Joining regional construction associations, events and online communities accelerates professional growth through sharing best practices and forming partnerships. Surrounding yourself with fellow trade experts ensures you never stop progressing.

Local Associations

Area chapters of the Associated General Contractors of America offer member contractors exclusive leads, discounts, and access to continuing education/certification programs. Expect annual local dues of around $500.

Local Meetups

Attend nearby networking happy hours, tradeshows, and seminars listed on Meetup to connect face-to-face with fellow contractors and clients alike. The platform helps easily pinpoint frequent regional construction events to regularly keep your network thriving.

Facebook Groups

Industry-related Facebook communities enable asking questions and getting feedback from contractors across your state or country. Join targeted groups like Contractors & Subcontractors and Companies and people who need Contractors to access crowdsourced insights 24/7.

13. How to Market a General Contractor Business

Implementing ongoing marketing expands a contractor’s reach and jobs won far beyond relying solely on word-of-mouth referrals. As no two clients discover services identically, utilizing diverse digital and traditional channels proves necessary, especially early on.

Tap Your Network

Satisfied homeowners become vocal advocates to their peers. Offer referral bonuses or gift cards in return for introductions to new clients. Simple incentives give previous customers that extra nudge to connect you with their inner circles actively.

Digital Marketing Ideas

• Run Google/Facebook ads touting your specialty trade and targeting homeowners within 10 miles. Geo-fencing around affluent neighborhoods boosts exposure. Expect to invest at least $500 monthly to optimize conversions.
• Launch a contractor-advice YouTube channel or podcast covering remodeling processes. Embedding how-to videos onto your site raises viewership and search visibility.
• Write blog posts about recent projects to attract localized web traffic. Optimize content for keywords like “kitchen remodels” and “bathroom contractor.”
• Post before/after photos and customer testimonials consistently on social channels. Audiences connect with the journey.
• List your services on marketplaces like HomeAdvisor and Porch to get hired for leads in your area.

Traditional Marketing Ideas

• Print full-color flyers and mailers showcasing your services for residents in higher-income ZIP codes. Include limited-time percent-off coupons or free design consultations.
• Sponsor booths at home shows and food festivals – they attract engaged attendees. Distribute merchandise for additional impressions.
• Run radio spots on local stations describing offerings. Tailor messaging to programming formats.
• Place targeted billboards along frequently trafficked routes near construction hotspots. Highlight a specialty like kitchen remodels.
• Advertise discounted services on community boards at libraries, rec centers, and churches.

Mix both digital and traditional campaigns while analyzing returns. Doubly focus efforts on referral, social, and localized lead generation for efficiently reaching neighborhood project decision-makers.

14. Focus on the Customer

Providing five-star service ensures every client becomes a vocal advocate who refers dozens more neighborhood projects your way. Home construction and renovations represent highly personal, complex, and costly endeavors for customers.

Consider a kitchen remodel contracted for $35,000 taking two months to complete. By sending weekly email updates with photos documenting progress, resolving any concerns promptly, and leaving the family delighted with their forever home upgrade, you gain a halo client.

The homeowner then enthusiastically shares their experience at neighborhood gatherings, with extended family members looking to also refresh their outdated kitchens, and across social media tagging your company directly. Thanks to going above and beyond you quickly become an in-demand area contractor.

Now imagine this same scenario but multiple delays occur, blunders force changes mid-project and dust/noise disrupt the homeowners’ lives significantly for weeks. Your reputation gets tarnished plus repeat/referral business dries up fast.

Construction competency keeps client costs reasonable but hospitality makes or breaks reputations driving repeat requests. Bond with customers through superior service accelerating profitable growth for years.

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How to Write a Business Plan for a General Contractor: A Quick Guide

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Are you a general contractor looking to take your business to the next level? In the rapidly growing construction industry, it's essential to have a solid business plan in place to stand out from the competition. According to recent statistics, the construction industry is projected to grow at a CAGR of 4.9% from 2021 to 2028. This means there's tremendous potential for success if you have a clear roadmap in place. In this blog post, we'll guide you through the nine essential steps to writing a business plan that will revolutionize your general contracting business and help you achieve your goals.

Conduct Market Research

Conducting thorough market research is an essential first step in developing a successful business plan for a general contractor. Market research allows you to gain a comprehensive understanding of the construction industry, identify potential customers, and assess the demand for your services. Here are some key steps to guide you through the market research process:

• Identify your target market: Determine the specific market segments you want to serve as a general contractor. This could be residential, commercial, or industrial construction, or a combination of these. Understand the needs, preferences, and purchasing behaviors of your target market to tailor your services accordingly.
• Analyze the competitive landscape: Identify your competitors, both direct and indirect, and analyze their strengths and weaknesses. This analysis will help you identify gaps in the market and find opportunities to differentiate your business.
• Assess market demand: Determine the current and future demand for general contractor services in your target market. Look for trends, such as increasing investment in construction projects or shifts in customer preferences, that could impact the demand for your services.
• Study industry regulations and standards: Research and understand the regulatory requirements and industry standards that apply to general contractors in your area. This will help you ensure compliance and enhance the credibility of your business.

Tips for conducting market research:

• Utilize online resources, industry publications, and databases to gather data and insights about the construction industry.
• Conduct surveys, interviews, or focus groups with potential customers to gather firsthand information about their needs and expectations.
• Consider partnering with industry associations or seeking guidance from professionals with expertise in market research to enhance the quality of your research.
• Regularly revisit and update your market research to stay informed about industry trends and changing customer preferences.

By conducting thorough market research, you can lay a solid foundation for the rest of your business plan. It provides the insights necessary to make informed decisions, tailor your services to fit market demands, and position your general contracting business for success.

Identify Target Market And Competitors

Identifying your target market is crucial for a successful business plan as it helps you determine who your ideal customers are and how to reach them effectively. Conducting thorough market research is essential in this step to gather relevant data and insights about your potential customers.

Start by analyzing the demographics, psychographics, and buying behaviors of your target audience. Determine their age, gender, income level, location, and other relevant factors that may influence their decision-making process. This will enable you to tailor your marketing and sales strategies to meet their specific needs and preferences.

Additionally, consider conducting surveys or interviews with prospective customers to understand their pain points and how your services can provide solutions for them. This will help you refine your unique selling proposition and differentiate your business from competitors.

• Research your competitors
• Identify their strengths and weaknesses
• Review their marketing and pricing strategies

Tips for Identifying Target Market and Competitors

• Utilize online tools and resources to gather market data and insights
• Attend industry trade shows and events to network with potential customers and competitors
• Join industry forums and online communities to learn from experienced professionals
• Stay updated with industry trends and developments to adapt your business strategy accordingly

By understanding your target market and studying your competitors, you can develop effective marketing strategies and positioning that will help your general contracting business stand out in the industry.

Define The Business's Unique Selling Proposition

Defining the unique selling proposition (USP) of your general contracting business is crucial in setting it apart from the competition and capturing the attention of potential clients. The USP is the key factor that differentiates your business from others in the market and communicates the value you bring to your customers. It is the reason why customers should choose your services over those of your competitors.

When defining your USP, it is important to consider what sets your business apart in terms of the services you provide, the quality of your work, and the overall customer experience. This will help you position your business as the go-to option for clients seeking a one-stop-shop for all their building needs.

Here are some tips to help you define your business's unique selling proposition:

• Identify your specialization: Determine the specific type of construction projects or services that your general contracting business excels in. Whether it's commercial construction, residential renovations, or sustainable building, emphasizing your expertise in a particular area can make your USP more compelling.
• Highlight your value proposition: Identify the unique benefits and advantages that your business offers to clients. This could be faster project completion, superior craftsmanship, cost-effectiveness, or exceptional customer service. Clearly articulating these benefits in your USP will help potential clients understand why they should choose your business.
• Showcase past successes: Provide examples or case studies of previous projects that demonstrate your skill and success in delivering outstanding results. Highlighting these achievements can build credibility and further establish your USP.
• Emphasize innovation: If your general contracting business incorporates innovative construction techniques, technologies, or sustainable practices, make sure to highlight these aspects in your USP. By positioning your business as a leader in adopting modern practices, you can attract clients who value cutting-edge solutions.
• Evaluate the competition: Conduct a thorough analysis of your competitors to identify gaps in the market that you can capitalize on. Differentiating your business from competitors by offering unique services, a more personalized approach, or better pricing will make your USP more compelling.

Defining your business's unique selling proposition is an essential step in creating a strong and effective business plan for a general contractor. By clearly identifying what sets your business apart and communicating this to potential clients, you can position your business for success in the competitive construction industry.

Determine The Legal Structure Of The Business

When starting a general contracting business, it is crucial to determine the legal structure of your business. The legal structure you choose will impact various aspects of your business, including liability, taxes, and governance.

• Sole Proprietorship: This is the simplest and most common form of business ownership. As a sole proprietor, you are the sole owner of the business and personally responsible for all liabilities. You report business income and losses on your personal tax return.
• Partnership: If you plan to start the business with one or more partners, a partnership may be the appropriate legal structure. In a partnership, each partner contributes to the business and shares in its profits and losses. Each partner is also personally liable for the business's debts and liabilities.
• Limited Liability Company (LLC): An LLC offers a combination of the simplicity of a sole proprietorship or partnership with the limited liability protection of a corporation. As an LLC owner, you have limited personal liability for the business's debts and obligations.
• Corporation: A corporation is a separate legal entity from its owners. It offers the highest level of liability protection. However, corporations require more formalities, such as filing articles of incorporation, holding board meetings, and issuing stock. There are two types of corporations: C-corporation and S-corporation, each with different tax implications.

Tips for determining the legal structure:

• Consider consulting with a business attorney or tax advisor to determine the best legal structure for your general contracting business.
• Research the specific requirements and regulations for each legal structure in your state or country.
• Consider the long-term goals and growth plans for your business, as different legal structures may be more suitable depending on your expansion plans.
• Think about the level of liability protection you need and how you want to separate your personal assets from your business assets.

Choosing the right legal structure for your general contracting business is an important decision that requires careful consideration. It is advisable to seek professional advice to ensure compliance with the legal and tax requirements of your jurisdiction, and to protect your personal assets.

Perform A SWOT Analysis

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a crucial step in creating a business plan for a general contractor. It helps you gain a comprehensive understanding of your business's internal and external factors that can impact its success.

During the SWOT analysis, carefully evaluate your business's:

• Strengths: Identify the areas where your general contractor business excels. These could be your experienced team members, exceptional project management skills, or strong relationships with suppliers and subcontractors.
• Weaknesses: Recognize the aspects that need improvement or can hinder your business's growth. This may include limited financial resources, a lack of marketing expertise, or a small client base.
• Opportunities: Identify potential opportunities in the market that your general contractor business can capitalize on. This could be the increasing demand for sustainable construction practices, emerging markets, or new technological advancements in the industry.
• Threats: Assess the external factors that pose risks to your business. These may include intense competition, economic downturns affecting construction spending, or changing government regulations.

Tips for Conducting a SWOT Analysis:

• Be honest and objective when evaluating your business's strengths and weaknesses. This will help you identify areas for improvement.
• Collaborate with key stakeholders, such as your management team or industry experts, to gain diverse perspectives on the analysis.
• Stay updated on industry trends, market conditions, and potential threats to ensure the SWOT analysis reflects the current landscape.
• Use the insights gained from the SWOT analysis to inform your decision-making process and develop strategies to leverage your strengths and opportunities while mitigating weaknesses and threats.

Performing a thorough SWOT analysis will enable you to make informed strategic decisions and devise a robust business plan that positions your general contractor business for success in the dynamic construction industry.

Create A Financial Plan And Set Budget Goals

Creating a comprehensive financial plan is essential for the success of your general contracting business. It allows you to forecast your revenue, expenses, and cash flow, ensuring that you have a clear understanding of your financial position.

To start, identify your sources of funding , whether it’s through personal savings, loans, investors, or a combination of these. Determine how much capital you will need to launch and sustain your business, as well as any additional funds required for growth and expansion.

Next, create a projected income statement , detailing your anticipated revenue and expenses over a specific period. This will help you determine your profitability and assess if your business model is financially viable. Include both one-time and recurring costs, such as equipment purchases, employee salaries, insurance, marketing expenses, and any overhead costs.

Set budget goals that align with your financial projections. Determine how much you can allocate for each aspect of your business, such as marketing, operations, and staffing. This will guide your decision-making process and ensure that you allocate resources effectively.

• Consider seeking advice from a financial advisor or accountant to ensure your financial plan is accurate and realistic.
• Regularly monitor and update your financial plan as your business progresses to adapt to any changes in the market or your operations.
• Identify key performance indicators (KPIs) to track your financial performance, such as gross profit margin, net profit margin, and return on investment. These metrics will help you assess your business's overall health and identify areas for improvement.

Remember, a well-defined financial plan and budget goals are crucial for managing your finances, attracting investors, and making informed business decisions. It provides a roadmap for your financial success and helps ensure the long-term sustainability of your general contracting business.

Develop A Marketing And Sales Strategy

In order to successfully market and sell your services as a general contractor, it is essential to develop a comprehensive marketing and sales strategy. This strategy will help you reach your target market, attract potential clients, and ultimately grow your business. Here are some important steps to consider when developing your marketing and sales strategy:

• Define your target market: Identify the specific group of customers who are most likely to need your services. This could include homeowners, real estate developers, or commercial property managers. Understanding your target market will help you tailor your marketing efforts accordingly.
• Identify your unique selling proposition: Determine what sets your general contracting services apart from your competitors. Highlighting your strengths and specialties will help differentiate your business in a crowded market.
• Create a professional brand: Develop a strong and professional brand identity that reflects the quality of your work and the values of your business. This includes designing a logo, choosing a color scheme, and creating a visually appealing website and marketing materials.
• Establish an online presence: In today's digital age, having a strong online presence is crucial for any business. Create a user-friendly website that showcases your previous projects, client testimonials, and contact information. Utilize social media platforms, such as Facebook and Instagram, to engage with your audience and share informative content.
• Utilize various marketing channels: Consider using a mix of traditional and digital marketing tactics to reach your target market. This can include print advertisements, direct mail campaigns, email marketing, search engine optimization (SEO), and pay-per-click (PPC) advertising.
• Build relationships with industry professionals: Networking and building relationships with architects, interior designers, and other professionals in the construction industry can be valuable for generating referrals and establishing credibility.
• Track and measure your marketing efforts: Implement tools and analytics to track the success of your marketing campaigns and adjust your strategy accordingly. This could include monitoring website traffic, lead generation, and conversion rates.
• Consider offering promotional discounts or incentives for new clients to attract their attention.
• Participate in local trade shows and industry events to showcase your expertise and connect with potential clients.
• Regularly update your website and social media platforms with project updates and industry insights to keep your audience engaged.
• Ask satisfied clients for testimonials and showcase them on your website and marketing materials to build trust and credibility.

Identify The Necessary Licenses And Permits

Before starting a general contracting business, it is crucial to identify and obtain the necessary licenses and permits to operate legally and efficiently. Failure to do so can result in legal issues, fines, and potential disruption of business operations.

First and foremost, it is important to research the licensing requirements specific to the construction industry in your location. Different states and municipalities may have varying regulations and requirements. Contact the relevant government agencies or consult an attorney to ensure you have a comprehensive understanding of the necessary licenses and permits.

Here are some of the common licenses and permits that general contractors may need to obtain:

• General Contractor's License: This license allows you to legally operate as a general contractor. The requirements for obtaining this license vary by jurisdiction, but typically involve meeting certain experience and education requirements, passing an examination, and providing proof of insurance and financial stability.
• Business License: In addition to a general contractor's license, you may need to obtain a business license, which grants permission to operate a business within a specific city or county. This license often requires completing an application, paying a fee, and providing relevant business information.
• Specialty Trade Licenses: Depending on the nature of your construction services, you may also need to obtain specialty trade licenses. These licenses are specific to particular trades or skills, such as electrical, plumbing, or HVAC. Research the requirements for each trade license applicable to your business and ensure compliance.
• Building Permits: Before starting any construction project, it is essential to obtain building permits. These permits are issued by local government authorities and ensure that the construction plans comply with safety regulations and building codes. Building permits may involve submitting detailed plans, paying fees, and scheduling inspections throughout the construction process.
• Research the licensing requirements well in advance to allow sufficient time for the application process.
• Consult with local government agencies or an attorney to confirm the specific licenses and permits required for your construction business.
• Ensure that your business and all employees comply with the required licensing regulations at all times.
• Stay up to date with any changes or updates to licensing regulations to maintain compliance.

Obtaining the necessary licenses and permits is an essential step in the process of starting a general contracting business. It demonstrates your commitment to operating legally, maintaining industry standards, and providing quality services to clients. By following the required procedures and ensuring compliance, you can position your business for success in the construction industry.

Gather Necessary Documentation And Resources

Once you have completed the previous steps of writing your business plan for a general contractor, it is crucial to gather all the necessary documentation and resources to ensure a smooth and efficient operation. This step involves collecting important paperwork, certifications, licenses, and equipment to support your business.

1. Legal and Regulatory Documents: Begin by collecting all the legal and regulatory documents required to start and operate your general contractor business. This may include business registration papers, insurance policies, contracts, and compliance certificates. It is essential to ensure that you have all the necessary permits and licenses to conduct your business lawfully.

2. Financial Records: Gather all your financial records, including bank statements, tax returns, and financial projections. These documents will provide valuable insights into your business's financial health, help you track your expenses and revenues accurately, and assist in making informed decisions for future growth.

3. Equipment and Resources: Identify the equipment and resources needed to carry out your construction projects effectively. This may include construction tools, machinery, transportation vehicles, and safety gear. Ensure that you have a comprehensive inventory of all necessary resources, and make arrangements for their procurement or rental.

4. Qualified Workforce: Building a successful general contractor business requires a team of skilled and reliable professionals. Gather resumes, certifications, and other relevant documents of potential employees to assess their qualifications. This will help you establish a strong workforce that can deliver high-quality workmanship and customer service.

• Keep all your documentation organized and easily accessible by maintaining both electronic and physical copies.
• Regularly update your paperwork to ensure compliance with any changes in regulations or industry standards.
• Establish relationships with suppliers and vendors to secure resources needed for your construction projects.
• Ensure that your employees receive the necessary training and certifications to perform their roles effectively.
• Consider implementing a document management system to streamline the organization and retrieval of important documents.

By gathering the necessary documentation and resources, you will not only meet legal requirements but also enhance the efficiency and credibility of your general contractor business. It is a crucial step towards establishing a strong foundation for sustainable growth and success in the construction industry.

Writing a business plan is crucial for any general contractor looking to thrive in the construction industry. By following these 9 steps, you can lay the foundation for a successful and profitable business venture.

Start by conducting market research and identifying your target market and competitors. This will help you understand the current trends and demands in the industry.

Your unique selling proposition is what sets your business apart from the competition. Clearly define it to attract customers and stand out in the market.

When determining the legal structure of your business, consider the advantages and disadvantages of each option. Take into account any regulatory requirements and tax implications.

Performing a SWOT analysis will provide insights into your strengths, weaknesses, opportunities, and threats. This information will guide your decision-making and help you mitigate risks.

Creating a financial plan and setting budget goals is crucial for the financial stability and growth of your business. It helps you track resources, forecast expenses, and secure funding.

A solid marketing and sales strategy is essential for attracting and retaining clients. Identify your target audience and develop specific tactics to reach them effectively.

Don't forget to identify the necessary licenses and permits required for your general contracting business. Compliance with regulations is crucial to avoid legal issues and maintain a good reputation.

Gather all necessary documentation and resources to support your business plan. This includes licenses, permits, contracts, and any other relevant documents.

By following these 9 steps and thoroughly planning your business, you are set for success in revolutionizing the construction industry as a general contractor.

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Business Formation

How to Start a General Contracting Business in 9 Steps

Our 9 step guide to building a general contractor business..

By Deborah Sweeney

If you're looking to start a general contractor business, there has never been a better time to enter the market. According to the U.S. Chamber of Commerce , the average backlog of projects for general contractors is a little over 9 months. The need for general contractors is on the rise with construction spending topping over $1 trillion dollars a year. And, thanks to an increase in housing demand, chances are the construction industry won't be slowing down any time soon.

Starting your own general contractor business is a great way to earn a living while leveraging both your construction knowledge and management skills. To take full advantage of these skill sets and maximize your chances for success, it is important that you become as fluent on the business side of things as you are on the construction side. This includes creating a solid business plan, acquiring the proper business licenses and permits, building a team of reliable subcontractors, and more.

As most business owners will tell you, starting your own business isn't easy. Entrepreneurship means investing time, energy, and effort into your contractor business. However, if you follow our guide you'll be able to get your business up and running in no time.

Our guide breaks down the steps you'll need to take to build a strong foundation for your new business and provides links to useful resources that can help you better understand what it means to break into the industry as a general contractor.

Bookmark this page and follow along while you learn how to start a general contracting business. From setting up a basic structure for your business to creating your website, this guide contains everything you need to get your company up and running quickly.

1. Weigh the Pros and Cons of Starting a Business.

2. draft a business plan, 3. get licensed, bonded, and insured., 4. choose a business name.

• 5. Incorporate Your Business

6. Open a Business Bank Account

7. hire subcontractors, 8. develop and define your brand, 9. establish your online presence.

A general contractor is the party responsible for organizing all phases of a construction project. They are typically hired by the property owner. You'll need to be knowledgeable in all stages of construction from start to finish. You'll also be in charge of hiring the necessary subcontractors to complete the work, so networking and making new connections will be vital.

Starting a general contractor company allows you to leverage your skills and experience, while giving you the freedom to set your own hours and choose the projects you want work on. However, this flexibility comes with added responsibilities. You will need to manage your business, your reputation, and your workload.

If you are thinking about venturing out on your own, make sure you meet these 5 basic requirements for success as a general contractor.

• You have the passion and drive required to start a business.
• You understand the ins and outs of the industry and what it means to be a general contractor.
• You have strong managerial experience and/or an equivalent skill set and enjoy overseeing many moving parts.
• You have the equipment you need to operate your business, or you have the means to raise enough capital to acquire professional quality equipment.
• You fully understand the risks associated with starting a business.

If you answered yes to the questions above, starting a general contracting business is the right choice for you.

When starting any business, creating a solid business plan should be among the first steps you take.

A general contractor business is no different; a carefully crafted business plan will help you gain a better understanding your long-term goals and serves as a proof of concept for the future success of your business.

Many people skip this critical all together, don't make this mistake! The process of creating your business plan is straightforward. It is the blueprint for your business that outlines each of your business journey.

Be especially thorough if you intend on applying for any small business loans. Most financial institutions, and interested investors, will need to review your business plan before issuing you a loan or capital for the business.

What details should be included in a business plan?

A business plan is your roadmap to profitability, and in some cases, a tool that can help you uncover gaps or blind spots you may have when starting out. Generally, your business plan should contain the following components:

• The structure/management you intend to create for your business
• Business description, concept, and strategy
• The services you will provide
• The type of work you plan on completing
• Details about your target market
• How many employees you will have starting out, if any
• Estimated startup costs, including equipment expenses, business licenses, etc.
• Financial projections (how much profit do you intend to make in year one, year five, etc.)

Determine the type of services your business will offer.

Some contractors offer highly specialized work, or limit services to a narrow scope of work where they have a competitive edge. Others are full service, bidding on a large variety of projects.

Knowing ahead of time what services your company will offer can help you get a better grasp on the equipment and staff you will need, making it easier to plan your startup costs. It also helps you evaluate your competition by allowing you to find local companies that offer services that overlap with your own.

Follow your passion, not the money. Choosing to focus on areas of construction you are truly passionate about will help motivate you to succeed when times get tough, and they also work to set you apart from the competition. You may develop a reputation for the work you do and retain steady, faithful clients because they trust you to do a great job.

How much does it cost to start a general contractor business?

Starting your own general contractor business can be an expensive endeavor. The initial investment required will depend on your existing assets (if any), the types of projects you intend on completing, the number of employees you will have, and other factors specific to your general contractor position. It's best to start out with just the essentials and grow your business slowly as projects come in and you begin to earn a steady profit.

Most general contractors are going to need professional quality equipment and tools to complete their work. If you intend on hauling materials or materials to certain sites, you will also need reliable transportation. You will have legal expenses and startup costs, including business licenses, insurance, and administrative fees. It is also wise to set aside some funding for advertising and marketing your services, particularly if you are a freelance contractor.

Overall, you can expect to set aside $15,000 - $20,000 to start your general contractor business.

You may seek outside investment or consider taking out a small business loan to help fund your startup costs. Each method of raising capital comes with its own caveats, so keep that in mind when outlining your startup.

If you are planning on working with investors, you will need to set up the proper structure for your business ahead of time. Often this means incorporating your business as a corporation.

If you will be taking out a loan from the bank, make sure you put extra time and care into the details of your business plan concerning your financial projections and cash flow. Be prepared to discuss the reasons you think your business will be successful and what makes it worth the investment. Don't forget to conduct due diligence when comparing loan options, like interest rates and repayment terms.

What are the ongoing costs of operating a contractor business?

Building a strong foundation for your general contractor business can take time, with most of your early earnings being reinvested in the business.

Equipment and building material costs are always going to impact your bottom line, so be sure to focus on building strong relationships with reliable and affordable vendors to cut your expenses wherever you can.

Depending on your line of general contractor work, you may also need to hire sub-contractors. These individuals can handle specific construction-related tasks such as carpenters, electricians, and painters.

Be sure to set aside some budget for your operational costs. You may need to purchase materials and equipment upfront specifically to complete a job. You also should be ready for unexpected equipment repairs or replacement.

Finally, it is important to properly market and advertise your business to grow your client base. Word of mouth referrals, while helpful, sometimes aren't enough to keep the lights on all on their own. Invest in marketing materials and get your name out into the public with the help of social media campaigns, advertising brochures and billboards, and even commercials that run during TV shows or podcasts.

Define your target audience

Your target audience includes potential clients in the area where you operate your business that can afford your services and might hire you for a project.

It's important to consider early on what the demand is for the services you offer, as well as the areas you want to serve. Combining these two metrics can help you make an educated estimate of the potential volume of customers looking to hire you as a general contractor as well as estimate your yearly earnings.

Research your competition

Now that you have identified your target audience, it's wise to look at who you will be competing with for their business. Researching your direct competitors can help drive early business decisions by arming you with the knowledge of what seems to be working for customers, and what does not.

It can also help you determine your value proposition. This is the value that a company promises to deliver to customers should they choose to buy their product or service. Lean into what makes you, as a general contractor, stand out from the rest. Do you have a portfolio of existing work you can share? Are some of your clients big, household names? Are you skilled in a specific area of expertise? Consider the value you can bring to the table and use that to drive your success.

Protect yourself, your clients, and your business by ensuring you have the required licenses and permits, bonds, and insurance to operate your business legally.

Business licenses for a general contractor

In addition to general business licenses, each state has its own licensing requirements for general contractors. Completing work in any state while failing to meet those requirements could spell disaster for your business. Keep in mind you'll need to be licensed in every state you intend on conducting business in. So, if you plan on working across state lines be sure to acquire the proper licenses first.

There are more than 40 different contractor classifications, including general building contractors, general engineering contractors and specialty contractors. A few examples which would fall into the specialty contractor category are:

• Insulation and Acoustical Contractors
• Concrete Contractor
• Drywall Contractor
• Fire Protection Contractors
• Flooring and Floor Covering Contractors
• Building Moving and Demolition Contractors
• Plumbing Contractors
• Earthwork and Paving Contractors
• Fencing Contractors
• Masonry Contractors
• Roofing Contractors
• Structural Steel Contractor

The process for getting your contractor's license will vary from discipline to discipline, but in general, you can expect to:

• Take a written exam to prove your competency in certain contracting fields.
• Prove you have the financial means to start your own business, or the ability to get funding.
• Provide reference letters from your bank, previous employers and past clients and colleagues.
• Prove you have on-the-job expertise, even if that experience is limited to apprenticeships.

MyCorporation's business license compliance package simplifies the of meeting your business licensing requirements by conducting the research on behalf, taking into account your business type and location, and providing you with the necessary forms you need to complete to get the required licenses.

Surety Bonds

Usually, every general contractor business needs construction bonds to operate. The purpose of surety bonds is to provide protection to your client if you do not fulfill your contractual obligations. Much like any other type of insurance, surety bonds are provided by a third party and require you adhere to state regulations, which vary from state to state. You can check out the Small Business Associations Surety Bond Program for help in acquiring these bonds.

The level of insurance coverage your business will need depends on several factors, but in almost every case, you will be required to have some kind of coverage. Aside from general liability insurance, you may also need property insurance, and insurance for company vehicles.

If you plan on hiring your own employees, you will also need workers' compensation, state disability insurance, and unemployment insurance to protect your workers.

Choosing a name for your business is an important part of starting any business. Potential clients should be able to easily read and remember your business name, and understand what it is that your general contractor business specializes in. Pick a professional name that properly represents the services your company plans on providing to the market and avoid names that could cause any confusion about what it is you offer.

How do I know if the business name I want is available?

Conducting a quick Google search for similarly named businesses is a fast way to find out if they are already taken, although it is not very reliable. You can also conduct a domain name search to see if your business name's URL is already taken. Again, while this method is prudent, it's not foolproof.

Get a Domain Name

Register a domain name and create your online identity.

The most reliable way to find out if your business name is available is to conduct a business name search. MyCorporation can conduct a full name search on your behalf. Not only will we search for any potential name conflicts, we can also ensure that your intended name adheres to any business name rules your state may have.

What happens if your business name is already in use? It’s a good idea to brainstorm and jot down one or two alternatives, in case the name you choose is not available when you attempted to register it.

5. Incorporate Your Business (Choose a Business Entity)

Now that you have outlined the basic details of your general contractor business, it's time to choose and form a legal entity for your business.

What is the best legal structure for a general contractor businesses?

When it comes to choosing the right legal entity for your business, you have plenty of options to choose from that may be the best fit. Corporation and limited liability company (LLC) entities allow you to establish your contractor business as a separate legal entity. This protects your personal assets, like your home, vehicles, and other privately-owned property, from being used negatively in an unforeseen circumstance such as settling a debt caused by a lawsuit against your business. That is why business formation is such a critically important step.

Both the LLC and corporation each have their own advantages and disadvantages, depending on the specific details of your business.

In the case that you decide to seek outside investment to help fund your business or have dreams of taking your contractor services worldwide and expanding them exponentially, you may want to form a corporation . A corporation provides features that make it a more attractive investment opportunity, as shares of stock can be offered as a representation of ownership. The entity does, however come with its own caveats, including additional corporate formalities such as holding annual meetings and keeping corporate minutes of those meetings.

An LLC offers a more flexible management structure and far less paperwork. It’s an ideal business structure if you are the sole owner or part of a partnership looking to minimize corporate formalities.

You may also find that each entity offers various tax advantages, depending on the details of your business. It is recommended that you seek the advice of an accountant you trust to help you navigate the potential tax implications of each entity for your unique circumstances.

Identify the entity that is right for the business by comparing the specific benefits of each entity type. Below are a few entity formations that are popular with consultancies and the differences between the structures for basic guidance.

Don't accept your first payment from a client and deposit it into your personal bank account before you first open up a business bank account. Keeping your personal and business finances separate secures the liability protection gained by forming a legal entity.

Opening a bank account for your business allows you to do the following:

Accept and make payments under the name of the business. Billing and invoicing customers from an individual/personal account as opposed to a business account may appear to be unprofessional in the eyes of a client. Chances are, you will also be making quite a few payments to subcontractors you'll need to hire to complete your jobs.

Setting up a bank account for your business allows you to accept checks and payment under the business name. This conveys a high level of professionalism and credibility. It also helps separate your finances, making it easier to assess profits and losses.

Protect your personal assets. When you combine your personal and business assets, especially those of a financial nature, you blur the line of separation between you and your business. This lack of a defined separation puts your home, car, or other valuable possessions at risk in the event of a lawsuit involving your business.

This is known as piercing the corporate veil. Keeping your finances separate also reduces your chance of audit and makes filing your taxes easier.

Establish credit. Building a credit history for your business which can be helpful when seeking outside investment or need to demonstrate buying power for your business. This is especially important for general contractors who will need to make large/expensive equipment purchases.

Most financial institutions will require you to obtain an employer identification number (EIN) for your business before you can create a business account. An EIN, also referred to as a tax ID, is a nine-digit number that is issued by the IRS. It is used to uniquely identify your business for tax purposes. Think of an EIN as a social security number (SSN) for your business only slightly less sensitive.

An EIN is also required by the IRS if you plan on hiring employees. If you plan on expanding your consulting business in the future, an EIN is a must-have and is relatively easy to acquire. MyCorporation can help you complete the necessary paperwork to file for an EIN for your general contractor company. The process is simple and only takes only a few minutes to complete.

It is not uncommon that much of the work completed on your projects will be completed by subcontractors. Hiring the right people with the skills and reputation to get the job done is a job all on its own, and an important part of your general contractor business. After all, your clients will be relying on you and your subcontractors on the finished product.

Whether you choose to hire your own employees, work with independent contractors, or outsource work to various subcontractors, you need to be aware of the tax implications and legal formalities of hiring and paying your employees.

Distinguishing between employees and independent contractors can impact your bottom line, as this affects how you withhold taxes and avoid costly legal consequences . Learn the differences before hiring your first employee.

Independent contractors operate as a separate business, and will invoice clients directly for work completed. Independent contractors can qualify as employees in a legal sense under some circumstances. If your contractor is later determined to meet the legal definition of employee, you may need to pay back taxes and penalties, provide benefits, and reimburse wages.

Creating a strong brand helps distinguish your general contractor business from your competitors. It's also a representation of what your company stands for, values, and goals for client and business success. Depending on the kind of construction business you plan on opening, developing, and defining your brand will involve a few steps.

1. Create Your Logo. Your logo is not only an important part of your company's advertising and marketing efforts, but also often your first impression to potential customers, so make it count! Your logo design should clearly represent your company and who you are as a business.

Conduct some basic research and find out what resonates in your industry for ideas. Most importantly, you know best what vision you have for your business, so trust your instincts.

One option is to use one of the many available free online logo maker tools, which can help you design your own logo online with no software or previous design experience required. This is a great option for your business when you want complete control of your logo at a substantially reduced cost.

You can also choose to hire a professional logo design team with a large portfolio of successful designs. This is a great option if you have a bit of budget to spare and really want a unique, professional design that grabs attention.

2. Promote and Market Your Brand. Now that you have created your brand, it's time to promote it! Stay ahead of your competition by helping people remember your business while also demonstrating professionalism.

Promotional/informational products can be great way to drum up interest in your business and get your name out there. Printing high quality brochures and fliers outlining your services and distributing them to local businesses is a solid method for building local brand awareness.

Professional business cards are a tried and true way of creating brand awareness and are an absolute must for any serious business owner. Business cards are easy to carry everywhere you go; you never know when a marketing opportunity may arise. A savvy business owner is always on the lookout for a new source of potential clients.

Email Marketing is a simple but effective way to provide a huge return on a small budget. Email marketing is a great way to put your business in front of thousands of new potential customers all at once or promote a new service or offer. 

Networking is critical for growing your client base and getting referrals. Joining in-person networking events and online participation in Twitter chats allows you to establish word of mouth about your business. You may connect with and pitch potential new clients during networking nights and using professional connection platforms like LinkedIn. Attending industry events is also key to getting your name out there, establishing yourself as a thought leader, and staying in touch with influential experts in the space.

Looking for more ideas? Check out 6 ways to make your business idea stand out from the rest.

A professional website is an incredibly valuable asset for any general contractor. It is a valuable method for collecting contact information from potential clients, sharing more information about your offerings, pricing, and getting in touch to learn more.

For many new general contractors, the prospect of building a website can seem overwhelming and expensive. This couldn’t be further from the truth. In fact, there are lots of easy and affordable ways to get a custom website for your business without hiring an expensive web design firm or freelance web developers. 

You can use one of many website builder tools that provide you everything you need to build a website out of the box, with no coding skills necessary. This can be a great starting point from which you can build a full site.

If your business relies on your website to sell your service, we recommended that you work with a team of web design experts . In many cases, a professional can help you create a more functional website.

Frequently Asked Questions

How can a contracting business effectively market its services to potential clients.

A contracting business can market its services effectively using digital channels and traditional marketing methods.

These include creating a professional website that showcases previous work and client testimonials, implementing SEO strategies to increase online visibility, and utilizing social media to engage with potential customers.

Networking events and partnerships with related businesses can also facilitate referrals. Taking advantage of those partnerships can help create long-lasting business relationships.

Lastly, offering excellent customer service can turn clients into advocates who promote the business through word-of-mouth. Maintaining happy clients increases the likelihood of recommendations from current customers. 

What are some common challenges that contracting businesses face, and how can they overcome them?

Common challenges for contracting businesses include fierce competition. It is essential to stay ahead of the competition to avoid any setbacks. Companies might analyze their target audience and understand them thoroughly to provide better suite services.

Other challenges include fluctuating demand and ensuring compliance with regulations. Overcoming these requires strategic planning, investing in quality workmanship and customer service to differentiate from competitors, and maintaining financial reserves for lean periods. Training all company employees on current regulations and industry standards is crucial to avoid compliance issues, as laws and regulations can change periodically.

What are some best practices for managing a contracting business's finances?

Managing a contracting business's finances requires careful budgeting, tracking expenses, and managing cash flow. Implementing efficient invoicing and payment systems to ensure timely client payments is crucial. Leveraging financial software can streamline these processes.

Rather than inputting information manually and taking up manual labor hours, companies can invest in financial software to expedite the process and eliminate the possibility of human error. Regular financial audits can identify potential inefficiencies, and maintaining a reserve fund can cushion unexpected costs.

Consulting with financial professionals can provide invaluable insights for strategic planning and better budgeting interventions.

How can a contracting business stay up-to-date with industry regulations and changes?

Staying informed about industry regulations and changes is a proactive process requiring regular engagement and professional development commitment. Regular training and development sessions can ensure that all team members are on the same page regarding any modifications or updates in the industry. Subscriptions to industry publications offer timely and relevant insights about trends, new technology, and regulatory updates.

Attending industry-related workshops, webinars, and trade shows are excellent opportunities to network, gain knowledge, and understand current best practices. Joining professional associations can provide additional resources, such as access to exclusive information, educational materials, and advocacy efforts.

From discovering your niche to incorporating your company, your general contractor business now has everything it needs to ensure success and thrive with its audience. Keep that momentum going!

As you continue to build your client base, focus on additional services you can offer. Invest in equipment, tools, and expanding your staff. Over time, you may even make revisions to your business plan once you've hit certain goals and milestones.

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• Governance Requirements: LLC
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• Start a General Contractor Business

General Contractor Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » B2B Industry » General Supply & Contracting

Are you about starting a general contracting business ? If YES, here is a detailed sample general contractor business plan template & feasibility report you can use for FREE .

A general contracting company or general contractor is responsible for providing all of the material, labor, equipment (such as engineering vehicles, construction tools and machines) and other services needed for a construction project. Usually, the general contractor hires specialized sub-contractors to execute all or some portions of the construction project.

You need a general contractor license to be able to operate this type of business, and a Contractor License is a kind of permit or authority that allows a construction tradesman to charge over $500 for their services.

Persons who want to start a business, hire workers, bid on projects, and advertise must become licensed contractors. To get a license, you must have at least 4 years’ journey level experience in a trade, pass an exam and hold an active contractor bond.

A Sample General Contractor Business Plan Template

1. industry overview.

The general contracting business is under the real estate cum construction industry and a general contractor is a manager, and perhaps a tradesman, employed by the client on the advice of the architect, engineer or the architectural technologist or the client him/herself if acting as the manager.

A general contracting company is in charge of the overall coordination of a construction project. It is the norm for a general contracting company to first and foremost assess the project-specific documents (referred to as bid, proposal or tender documents).

If it is a renovation project, a site visit is required to get a better understanding of the project to be carried out. Depending on the project delivery method, the general contracting company will submit a fixed price proposal or bid, cost plus price or an estimate.

The general contracting company considers the cost of home office overhead, general conditions, materials, equipment and logistics as it relates to transporting equipment and manpower to site as well as the cost of labor.

Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for the services of the contractors. So also, the industry is also expected to benefit from the increase in renovation and new construction activities.

Statistics has it that the General Contractors industry in the united states of America is worth over billion, with an estimated growth rate of 4.5 percent between 2014 and 2019. There are about 54,398 registered and licensed general contracting businesses in the United States and they are responsible for employing about 279,527 people. It is important to state that there are no companies with a dominant market share in this industry.

A recent report published by IBISWorld shows that over the five years to 2019, favorable lending rates, improved per capita disposable income and record corporate profit levels have helped bolster construction activity across several sectors, increasing demand for industry services.

The report reveals that housing stats are expected to increase at an annualized 6.2 percent over the five years to 2019. Conversely, unemployment is expected to fall at an annualized 10.7 percent during the same period, boosting the need for new office, industrial and manufacturing space.

The general contractors’ industry will keep on thriving in the coming decade especially if the contractor is committed to providing reliable and quality work its customers. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing.

The good news for would-be entrepreneurs is that there is an estimate of continued annual growth for the general contractor services industry for as high as 20 percent. The general contractor industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business.

2. Executive Summary

Jose McLaurin® General Contracting Company, Inc. is a licensed American general contractor company. We have been able to secure a well – positioned office facility in a central business district in Grand Rapids – Michigan. We are a general contractor company that is set to compete in the highly competitive industry not only in Grand Rapids – Michigan, but also throughout the United States market.

Jose McLaurin® General Contracting Company, Inc. is set to work at new residential construction, new nonresidential construction, additions, alterations and reconstruction and other services. We will provide services that include; providing all of the material, labor, equipment (such as engineering vehicles and construction tools and machines) and other services needed for the construction project.

Our business goal is to become one of the leading general contractor services in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry. Our workers are going to be selected from a pool of certified and highly experienced civil engineers, technicians and tradesmen with different area of expertise as it relates to our service offerings.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading general contractor services  in the United States .

At Jose McLaurin® General Contracting Company, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Jose McLaurin® General Contracting Company, Inc. is a family business that is founded by Engr. Jose McLaurin graduated from A and M University, Texas; B.Engr. in Civil Engineering. He has the required experience that can help build Jose McLaurin® General Contracting Company, Inc. to favorably compete with other leading general contractor businesses in the United States of America.

3. Our Products and Services

Jose McLaurin® General Contracting Company, Inc. is established with the aim of maximizing profits in the industry. We want to compete favorably with leading general contractor services in the United States which is why we have but in place a competent quality assurance team that will ensure that every project carried out meets and even surpass our customers’ expectations.

We will work hard to ensure that Jose McLaurin® General Contracting Company, Inc. is not just accepted in Grand Rapids – Michigan but also in other cities in the United States of America. Our service offerings are listed below;

• Road Construction
• Bridge Construction
• Dam construction
• Airports and Helipads Construction
• Seaports Construction
• Skyscrapers construction
• Estate construction
• Public facility construction (hospitals, schools, shopping malls, office complexes and industrial facilities et al)
• Construction of residential facilities
• Property Makeover Services

4. Our Mission and Vision Statement

• Our vision is to establish a standard general contractor services company whose services will not only be accepted in Grand Rapids – Michigan but also in other cities in the United States of America.
• Our mission is to provide globally accepted general contractor services and to build a general contracting company that can favorably compete with other leading brands in the industry.

Our Business Structure

Jose McLaurin® General Contracting Company, Inc. intends starting small in Grand Rapids – Michigan, but hopes to grow big in order to compete favorably with leading companies both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own, which is why we are committed to only hire the best hands within our area of operation.

We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services (Senior Civil Engineer)
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Civil Engineers

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job result
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services (Senior Civil Engineer):

• Serve as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological, and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Make certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communication between management and handymen
• Ensures that the organization works in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Jose McLaurin® General Contracting Company, Inc.
• Serves as internal auditor for Jose McLaurin® General Contracting Company, Inc.

Civil Engineers (Project Manager)

• Responsible for providing all the material, labor, equipment and other services needed for construction sites
• Handles other related job as instructed by the Head, Technical Services.
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ projects to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Jose McLaurin® General Contracting Company, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured general contractor company that can favorably compete in the industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Jose McLaurin® General Contracting Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jose McLaurin® General Contracting Company, Inc.;

We can boast of having a system that runs on automation. We have been able to select a team of workforce that will keep us at an advantage. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the industry.

As a new general contractor services company in Grand Rapids – Michigan, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients (construction companies) in the already saturated and highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

Acceleration of the housing and nonresidential construction markets in the United States is bound to support growth for our business. In the wake of all the natural disasters in the coastal areas of the United States, owners are looking for structures that will survive hurricanes, fires, and earthquakes. Jose McLaurin® General Contracting Company, Inc. is equipped to answer the call.

While the US construction marketing is currently experiencing remarkable construction growth, it’s only sustainable long-term if builders embrace modern technology and practices. As of now, the labor shortage, lack of digitalization and poor coordination are three major factors that could limit a future flourishment of construction in America and by extension it will pose a threat to our business.

7. MARKET ANALYSIS

• Market Trends

A close watch on industry activities shows that the revenue increase is due to an acceleration in downstream construction markets in the United States. As a result of the increase in demand from downstream construction markets, activities in this industry, registered businesses and of course contracts, job numbers have been trending upward.

Going forward, the construction and real estate industry are expected to continue thriving hence increase in the demand for the services of general contractors. Another notable trend shows that general contractors are moving from using technology solutions for specific tasks to having real-time and accurate information at their fingertips on mobile devices.

Construction productivity is on the brink of a huge leap due to integrated and intuitive software that doesn’t just give you a bunch of numbers but rather provides easy-to-understand information that enables you to make good decisions. The totally connected jobsite is now a reality.

Lastly, while paper is slowly being phased out of construction sites, many companies are still completely reliant on the material to complete jobs. As a result, information is constantly obsolete, and communication is fragmented and unproductive.

If companies are serious about meeting the increasing demands of building in the US, it takes a commitment to full-scale digitalization. That means getting rid of all traces of paper and adopting a collaborative document management system that provides real time access and visibility to all project stakeholders.

8. Our Target Market

Before starting our general contractor company in Grand Rapids – Michigan, we conducted a market survey and feasibility studies and we are certain that there is a wide range of construction companies and other players in the construction industry. We are aware that the industry’s primary markets are the nonresidential and residential building sectors.

Our competitive advantage

There are favorable conditions for growth in the General Contractors Services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably.

More general contractor companies are coming up and they are using the services of existing companies in the business to boost their competitive edge and exposure in the industry. To be highly competitive in the General Contractors Services industry, you should be able to deliver consistent and reliable jobs, and you must be able to meet set targets.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained civil engineers and technicians, a team with excellent qualifications and experience in various niche areas in the general contracting industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jose McLaurin® General Contracting Company, Inc. is established with the aim of maximizing profits in the General Contractors Services industry and we are going to ensure that we do all it takes to meet and surpass the expectations of all our clients. Jose McLaurin® General Contracting Company, Inc. will generate income by providing services that include;

10. Sales Forecast

One thing is certain, there would always be construction and real estate companies, corporate organization, government agencies, households and individual who would need the services of general contractors.

We are well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.

We have been able to examine the general contractor services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Jose McLaurin® General Contracting Company, Inc., it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year:  $350,000
• Second Fiscal Year:  $750,000
• Third Fiscal Year:  $1.2 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions in the General Contractors industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet the overall business goal of Jose McLaurin® General Contracting Company, Inc.

Our corporate goal is to grow Jose McLaurin® General Contracting Company, Inc. to become one of the leading concrete contractor services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Grand Rapids – Michigan but also in other cities in the United States of America.

Jose McLaurin® General Contracting Company, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to public work department, construction and real estate companies, corporate organizations and other key stake holders in and around Grand Rapids – Michigan.
• Promptness in bidding for construction contracts from construction companies, real estate companies, government and other cooperate organizations
• Advertise our business in relevant real estate magazines, newspapers, TV and radio stations
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and households in the whole of Grand Rapids – Michigan and beyond which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise Jose McLaurin® General Contracting Company, Inc.;

• Place adverts on both print (newspapers and real estate related magazines) and electronic media platforms
• Sponsor relevant community – based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our services
• Install our billboards in strategic locations all around Grand Rapids – Michigan
• Distribute our fliers and handbills in target areas
• List our company in local directories / yellow pages
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our company logo.

12. Our Pricing Strategy

We will keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from construction and real estate companies. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Jose McLaurin® General Contracting Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jose McLaurin® General Contracting Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for services rendered without any stress on their part.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard general contracting company in Grand Rapids – Michigan and here are the key areas where we will spend our startup capital;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate our employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $80,000.
• The amount required to purchase the needed concrete mixers, trucks and other related construction equipment – $200,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $5,000
• Amount required to purchase the needed software applications to run our business – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from our market research and feasibility studies, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard general contractor services company in the United States of America.

Generating Funds/Startup Capital for Jose McLaurin® General Contracting Company, Inc.

Jose McLaurin® General Contracting Company, Inc. is a family business that will be owned and managed by Engr. Jose McLaurin and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Jose McLaurin® General Contracting Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Jose McLaurin® General Contracting Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility, renovation and equipping of the facility inclusive: Completed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of concrete mixers, trucks and other related equipment: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of concrete mixers, trucks and other related construction equipment, furniture, office equipment, software applications, electronic appliances and facility facelift : In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business : In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress

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How to Start a General Contractor Business

So, you want to start a general contractor business. Don’t just dive in head first. If you want to build a sustainable business that is set up for growth and long-term success, it’s important to take the time to plan and consider everything. This article will break down the steps for creating and executing a general contractor business plan without making costly mistakes. Keep reading to learn more.

How to Start a General Contractor Business in 9 Steps

Here’s a list of nine steps that will get your business started on a solid foundation for success.

1. Weigh the Pros and Cons of Starting a Business

First, it’s important to consider the pros and cons of having a general contractor business. General contractors hold an immense amount of legal and financial responsibility for their workers as well as their clients. In order to succeed, you’ll need to possess a wealth of skills and have a team of hard-working professionals under you. Some of the pros of running your own company include more freedom to set hours and choose projects, but you’ll need to be sure you have the qualities necessary to responsibly manage clients, employees, and projects on a much larger scale than you may be used to.

2. Draft a Business Plan

Creating a business plan is one of the first steps toward becoming a successful business owner. You should be especially thorough if you need to apply for loans from investors and institutions, as they will want to see that you have considered every minor detail. Here are some of the details you need to include in a general contractor business plan:

• Your plan and structure for management
• A description of your mission and strategy
• A detailed list of the services you will provide
• Your target market
• Your current status, including employees and projects
• A budget, including startup costs and projected earnings

3. Get Licensed, Bonded, and Insured

This step is necessary for your protection, as well as that of your clients and employees. Each state has unique requirements for licenses, so be sure to research general contractor business licenses and insurance near you to include these costs in your business plan. First, determine the classification of your general contracting services , then determine the type of licensing required by your state. Depending on the state, you’ll likely have to take an exam, prove financial responsibility, and prove experience. The licensing body could also require reference letters. In addition to licenses, all general contractor businesses need bonds and/or insurance to begin operations. These exist to protect you, your customers, and other business partners.

4. Choose a Business Name

If this step sounds simple, it mostly is. The important thing is to ensure your business name is straightforward, as in, your client will know exactly what you provide by reading your business name. It’s also important to ensure your business name is available, for legal reasons. You can use Google or an internet database of business names. It’s not necessary to trademark a name, but if someone has been using the name in a commerce market before you, they have a legal right to the name.

5. Incorporate Your Business

When choosing which legal entity is best for your business, it’s important to explore all the options . The five types of entities are as follows:

• Limited Liability Company (LLC)
• Corporation
• S Corporation
• Sole proprietorship

You can choose between these options for your general contractor business depending on your size and business plan.

6. Open a Business Bank Account

When you open a business bank account, you are able to protect your assets, accept payment under your business name, pay your employees under your business name, and build your credit. Speak to an agent at your bank of choice to discuss the options available for your business. Options may vary depending on your personal credit history and the type of business you are endeavoring to start.

7. Hire Subcontractors

As your business grows, you’ll want to develop strong professional relationships with subcontractors who specialize in aspects of your business that you wish to delegate. These could be areas where you lack strength or to complete tasks that you don’t have time to complete. You can choose to go the route of hiring employees, in which case you will be responsible for their taxes and other legal formalities. Otherwise, you can select independent contractors, who operate as separate business entities and will send you an invoice for the work they perform for you.

8. Develop and Define Your Brand

Branding is a crucial part of developing any business. It’s a step that begins when you draft your business plan and design your logo, but it should evolve as your business establishes itself. When you begin interacting with customers, you’ll have a better idea of how you should be presenting yourself.

9. Establish Your Online Presence

As you develop your brand, you can begin to grow your online presence. Begin with a website. If at all possible, pay a professional to design one for you. It could be the first impression you make on potential clients, so be sure that impression is a good one. Once you have a website, consider which social media accounts would benefit you most. You should explore the platforms of your most successful competitors and try to model your online presence after theirs.

How to Market a General Contractor Business

Marketing your general contractor business is very important, as construction is quite a competitive industry. When you’re working on developing your online presence, start with these steps . 1. Define your ideal customer : Create personas of your ideal customers. This way, when you’re writing and creating content for your website and social media, you’ll have a specific voice that is catered to the exact client you want to speak to. 2. Create a visual website : Hire a professional for this. And be sure to include all essential information, social proof such as reviews, and a few portfolio pieces. 3. Set up your GMB profile : Your Google Business Profile will help local customers find you in Google results. 4. Create a profile on customer review sites: Locate the review sites where your competitors are, then set up a branded account with these sites so you can start building social proof. 5. Run a review campaign : The power of social proof cannot be overstated. Your clients will be more likely to trust you if they see real people in their neighborhood who are happy with your services.

Other Ways to Market Your General Contractor Business Online

Here are a few more great strategies for building your online presence.

• Use hoarding signage
• Join major industry associations
• Launch Google local service ads
• Re-engage past customers
• List your business on lead gen sites
• Incentivize referrals
• Sponsor local events and teams
• Leverage video marketing campaigns
• Feature your employees
• Build strategic local partnerships
• Showcase your work on social media
• Promote free quotes
• Use 3D home design software to sell the vision
• Use blog content to answer buyer questions
• Set up conversion tracking

General Contractor Business Mistakes to Avoid

Now that you know what to do, here’s what not to do when starting a general contractor business.

1. Neglecting Safety Measures

The risks posed by accidents at construction sites are massive. They can cause physical injuries, property damage, and a serious risk to public safety. Remember, you are financially and legally responsible for what happens at your job site. Never neglect safety.

2. Hiring or Assigning the Wrong Workers

Getting to know your team’s strengths will pay dividends when it comes to work assignments. If you value your employees and make their jobs as easy as possible, they will produce better work for you. You can start by hiring workers that you see great potential in and assigning them to jobs where you’re confident they’ll thrive.

3. Improperly Estimating Costs and Poorly Planning Projects

This is one of the quickest ways to ruin an otherwise well-done project. Either you won’t land the contract you wanted because you overestimated, or you’ll be stuck choosing between your client and your wallet if you underestimate. Project estimates and planning are essential skills for a general contractor business owner, so be sure to take them very seriously.

4. Relying on Outdated Software

With modern technology, there are tons of innovative ways for general contractors to expedite processes and improve productivity. You may be hesitant to pay subscription fees or upfront costs, but choosing a great construction management platform, HR software, or 3D design software can save you time and money in the long run.

5. Not Modernizing Manual Processes

Modern software also allows you to automate a lot of time-consuming manual tasks, which can take a huge burden off of you or your employees. Again, while there may be upfront costs or subscription fees, these costs will be much lower than the cost of the time spent performing the tasks manually.

6. Ignoring Proper Equipment Management

Equipment is an expensive investment that all general contractors make in order to best serve their clients. So not performing the proper management and maintenance can be a costly and dangerous mistake. Be sure to follow all procedures and repair damaged equipment as promptly as possible. Keep a use and maintenance log to monitor the health of your equipment and prevent costly repairs.

7. Not Effectively Scaling Growth

In construction, things can happen rapidly. Sometimes, the feast and famine cycle of owning a business causes general contractors to bite off more than they can chew when it comes to scaling their business. In general, it’s best to always err on the side of caution with construction projects. Overworking yourself and your employees can lead to costly mistakes and legal issues in the case of an accident. Quality over quantity is a great mantra for beginner general contractor business owners.

8. Ignoring Change Management

As technology changes, your business should evolve alongside it. Take the time to sit down and plan for change management every year in order to adapt and embrace everything that new innovations have to offer.

9. Avoiding scheduling issues

Project management is a key skill for general contractors who employ sub-trades or employees. Take the time to address incomplete schedules and miscommunications to avoid project failure or costly and preventable delays.

10. Relying on an ineffective accounting system

Getting an accountant or great accounting software is the ideal solution for financial management, especially if you don’t have much experience in financial management. There are many options to choose from, so one is bound to suit the needs of your business perfectly.

11. Not using home building software to grow your business

No, you don’t need to hire expensive designers, architects, and floorplan drafting professionals to deliver drawings and mock-ups. With the right software, you can draft project-ready floor plans and view changes as you make them in real-time 3D. Cedreo is the best choice for design software, as it combines the precision of professional layout and architecture software with the aesthetic capabilities of designing and decorating software. In just a few minutes, you can have precise project drafts for your team and stunning photorealistic 3D renderings of your project to wow your clients and win the contract.

There are many steps to starting a general contractor business, but if you’ve read this article, you’ve got all of the basics you need to press go. Want a powerful tool to set you up for success? Cedreo can help with your next residential project: start using the free version today.

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10 Things to Do to Start a General Contracting Business

Embarking on the journey of starting and running a general contracting business can be not just profitable, but also immensely rewarding and exciting under the right circumstances. However, there’s much to consider before you take the leap and strike out on your own.

Ultimately, you need to decide if you wish to be in a leadership role, are prepared financially to follow through on your vision, and have a plan to reach your goals. But be practical. Holding onto your day job may be worthwhile and working your startup general contracting business on the side until things get rolling.

Before going solo, here are 10 things you need to do or think about to get your business off the ground and ensure it grows:

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1. Do Your Research

First and foremost, are you truly ready for this? Being an entrepreneur or business owner is a significant responsibility. It means investing time, energy, effort, and money into every aspect of your general contracting business. Thorough research is key to understanding the industry and being prepared for the challenges ahead. 

You need to know everything involved from top to bottom in construction and be responsible for all phases of every project. That includes being your company’s primary salesperson, site project manager, accountant and more. It also means having a business continuity plan .

So, weigh the pros and cons of taking the leap into self-employment and starting your own company. Then, speak to other general contractors who run successful ventures and get their advice and recommendations.

2. Create a Business Plan

A goal without a plan is just a wish. In this case, a comprehensive business plan is your roadmap to success and profitability. It’s a tool that can help you get organized, identify potential challenges, and outline the steps you will take to achieve your goals. It’s also a crucial document when applying for a small business loan, as most financial institutions will want to see your plans before providing funding.

Your business plan should consist of several elements. Include things like the business’s name, description and concept, the types of services you will provide, your target market, your estimated startup costs, and financial projections for how much profit you’ll earn year-over-year.

3. Ensure You Have Financing

Your business plan will help you identify what your startup costs are. Now, you must ensure you have the capital to launch your company, the necessary equipment, and be able to invest in your business. 

Next, you’ll need to open a business bank account (which can help establish credit) and understand your operational costs. That includes equipment and materials expenses and being prepared for unexpected equipment breakdowns and repairs or replacements – which is why tools and equipment insurance for contractors is highly recommended. 

Finally, do a complete review of your finances and estimate your needs now and in the future. After all, even if you have clients lined up, it could be several months before you get paid for the projects you complete, so managing your cash flow is crucial.

4. Register Your Business

Another necessary step is to register your business with the federal government. You’ll need to have a main office address, detail the province or provinces you will operate in, a business name, and select the type of business (sole proprietorship, partnership, corporation, or co-operative).

5. Get Business Permits and Licences

General contractors need to be licensed in their respective provinces to operate legally. You’ll also need to acquire building permits for some projects through the municipality where you’re working, especially if the project involves structural changes to a building.

6. Get Liability Insurance

You must protect yourself, your business, and your customers from unexpected mishaps and accidents. That means getting a contractor’s business insurance policy tailored to your needs. You might require a contractor’s all-risk insurance policy depending on your services and liability risks.

Speak to a licensed broker and ensure you discuss everything to get the coverage you need for your services, vehicles, and equipment. In many instances, a client will require you to have a valid certificate of insurance , or they won’t hire you.

7. Maintain Accurate Bookkeeping

You’ll need to closely monitor all your expenses and income, as well as charge and remit taxes. 

Accounting software such as QuickBooks can help simplify these necessary tasks and is significantly cheaper than hiring an accountant or bookkeeper. 

However, once your business revs up and you’re busy as a bee, hiring a qualified accountant or bookkeeper will ensure you’re profitable and paying your provincial and federal taxes on time while taking advantage of many tax deductions .

8. Promote Your Business

Developing and defining your brand is what will distinguish you from your competitors. Your brand should tell prospective clients who you are, what you do, and your values. Therefore, you’ll need to create a logo that resonates with people (the first thing people will see) and represents who you are as a business.

Once you have an established brand, it’s time to embrace digital marketing online and promote your business offline. For instance, printing high-quality flyers and business cards and distributing them to local businesses and residences can help build brand awareness, as does email marketing , establishing a website and a presence on social media networks . 

These things don’t need to cost a significant amount of money. When starting, you can use a website-building tool such as WordPress or Wix to build a website, and signing up for social media networks such as Instagram and Facebook are free.

9. Establish Supplier Relationships

Developing relationships with your suppliers and vendors can help you secure the raw materials and supplies you need at competitive prices, and may lead to better pricing, service, and reliable delivery.

Based on your services, think about the suppliers you’ll be relying on, such as building materials, electrical, concrete, and landscaping. Prioritize the ones you need most and build resilient and mutually beneficial partnerships with them.

10. Hire Subcontractors

Although you’re the master of your universe as the business owner, you can’t possibly do everything. That means hiring qualified, experienced subcontractors to ensure you deliver high-quality work on time and within budget to your clients. 

For most policies, you will need to ensure your subcontractors have their own insurance . Also, be aware of the taxation and legal requirements involved with hiring and paying an employee or outsourcing work.

Investigating joining a recognized association relevant to your general contracting business may also be worthwhile. For example, if you’re launching a home renovation business in Ontario , you should inquire about becoming a member of the Ontario Home Builders’ Association or the Canadian Home Builders’ Association. Doing so can help you keep abreast of important matters relevant to your industry, provide the opportunity to network and forge partnerships with other contractors, and take advantage of learning resources to grow your venture.

You may need to take several other steps to get your entity off the ground, such as consulting a business lawyer, but now you’re on the cusp of running a contractor business. So, let the real work begin!

– Updated August 9, 2024.

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Unrivaled Construction Work and General Contracting Services—Moscow, Idaho

No matter the scope or specifications of your next building project in Moscow, Idaho, the inputs make all the difference. Materials and techniques are part of it, but so is a dependable general contracting expert like Balustrade Construction Management, LLC. We bring your design goals to life and execute the project flawlessly, whether you're building a brand-new house or renovating a commercial space .

Leverage Superior General Contracting Services in Moscow

At Balustrade Construction Management, LLC, our professionals bring value, quality, and open communication to Moscow residents. We plan all projects meticulously to stay on schedule and within budget without sacrificing our workmanship or superior quality. With our company managing your building project, you can expect:

• Customization: When managing your project, we'll certainly prioritize your goals, visions, and preferences.
• Professionalism: Each staff member exhibits outstanding professionalism, dedication, and support, from the construction manager to our interior designers.
• Safety: Our professionals adhere to the strictest safety guidelines and all local building codes.
• Detailed scheduling: We'll construct a detailed plan with scheduling and expected timelines for each phase of your project, from design to final touches, when you choose our general contracting services.
• Construction industry expertise: We have years of hands-on general contracting training, so we can deal with unexpected situations.

Get Start-To-Finish Construction Project Management in Moscow

At Balustrade Construction Management, LLC, we build projects from the ground up. As a top general contractor servicing Moscow, Lewiston, Clarkson, and other local communities, we have a staff of talented designers, construction professionals, engineers, and architects to deliver outstanding general contracting services.

Our local, family-owned company believes in solving problems quickly and efficiently while seamlessly executing construction and design plans. Thanks to our varied skills and expertise, we manage many tasks in-house instead of relying on outside contractors:

• Architecture
• Building permit submissions
• Plans development

New build projects in Moscow are just one of our specialties.

208-892-4484, our services.

• General Contracting
• New Construction
• Residential Remodeling
• Home Additions
• Commercial Remodeling

2216 S Main St Suite D3 Moscow, ID, 83843

Mon - Fri 8am- 5pm Sat - Sun Closed

Call us for a free consultation 208-892-4484

MOSCOW CONTRACTING

Commercial & Residential, New Construction, Roofing, Additions, Remodels, Kitchen, Bathroom, Flooring, Carpet, Painting, Patios, Windows, Doors, Landscaping, Concrete, Handyman, Construction Management, Facilities Maintenance & More...

Phone : 208-315-9700

WELCOME TO MOSCOW CONTRACTING

A Clearwater Company Division

Looking for a licensed contractor to tackle a large or small-scale general contracting project? Moscow Contracting is the best General Contractor in the Palouse, offering clients professional, reliable and safe contracting services. Whether you need someone to build, remodel, or repair your space, we can do it reliably and effectively. Call us today and give your space the transformation it needs.

A Licensed General Contractor With Years of Experience

As fully-certified professionals, we're ready to tackle anything from the most complex and large scale construction projects to the smallest of repair jobs. We're fueled by our commitment to excellence and go the extra mile to make sure all of our clients are completely satisfied with our work. Call to schedule an initial consultation today.

OUR SERVICES

Strategic Planning and Reliable Contracting

Moscow Contracting is your one-stop-shop for all your construction and repair needs. Whether you’re looking for help with something minor or need an experienced professional to take on a larger scale project — We're your go-to pros and we're ready to handle it all.  Browse through the list of our services below, and get in touch.

Our clients are number one priority, and we'll go the extra mile to make sure they’re completely satisfied with our work. Have a specific project that requires professional attention? Our services are designed to tackle even the most complex projects. Call us today to discover how we can help.

RESIDENTIAL

Whether you are looking for new construction, an addition, remodel, repair or maintenance our team will help get it done on budget with quality and service only professionals can deliver.

We'll take on any project, no matter how large or small. Call today and see what we can do for you.

Small to mid-sized ramps, we'll build the boat ramp you need.

SMALL ROAD & BRIDGE CONSTRUCTION

Do you have a small road or bridge construction project? Call us for a quote.

Small or large space, we can install that carpeting for you when no one else can do it reliably, effectively and when you want it done.

Do you have a commercial or residential painting project? We also do staining. Call on us and we'll get it done.

A patio adds ambiance and make an attractive social gathering place in the outdoors. Don't miss having a great place to BBQ with your family, friends and acquaintances. Reserve your project today. Spring, summer and fall months are short in the Palouse.

WINDOWS & DOORS

Quality doors and windows, when properly installed, are an effective way to reduce heating and cooling costs in addition to adding to the ambience of your home or business.  Call us and see what we can do for you.

LANDSCAPING

The comfort of a home not only depends on it's interior design but also it's landscaping. Increase the attractiveness, ambiance and value of your home with beautiful landscaping. Trees and shrubs take longer to grow so plan them first. Plant in mid-spring and water well through the dry summer months. Look for non-GMO (no patent) plants that adapt well with the environment. Call us and we'll help you plan.

There's always projects or odd-jobs around the home or business. Our handyman services are there for you. We can hang pictures and curtains, repair holes in walls, build or install shelving, etc. We are there for you.

CONSTRUCTION MANAGEMENT

We are strategic, deliberate and responsible in our approach to construction management. We'll help you achieve your goals and objectives with a personalized approach that the competition will find hard to match. We'll operate as a primary or support resource.

FACILITIES MAINTENANCE

Commercial or residential, we'll manage and maintain your facility as a primary or secondary resource.  Let us know your requirements and we'll layout a plan.

NEW CONSTRUCTION

Ready to build a home, commercial building, pole building, garage, shed, outbuilding or other structures? Call us today and see what we can do for you.

An old roof can be a real liability and insurance companies require home owners and businesses to keep and maintain a reliable roof. We can advise you in financing your new roof project. The dry summer months are short so book early to make sure a project can be accepted.

Expanding your home is financially rewarding and provides you the extra space needed. Book early to reserve your job because in the Palouse, the summer is short.

Need to demolish existing structures or build new ones? No matter how small or large, we'll get the job done.

Structures go up. Structures come down. Need that old building removed? We'll be there to take it down.

New construction? Laying down concrete? Building an addition, home, commercial building, pole building, road or parking area? We got the crew.

Fax : 208-315-9700

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IDAHO CORPORATE OFFICES

Clearwater Company | Meridian, Idaho

3597 East Monarch Sky Lane, Suite F-240

WASHINGTON CORPORATE OFFICES

Clearwater Company | Kirkland, Washington

11335 NE 122nd, Suite 105

WE'RE HIRING

JOIN OUR TEAM !

We're always looking for good people.  Are you professional, responsible, friendly, trustworthy, neat, committed and reliable?  Construction/General Labor positions open for framers, roofers, handyman, concrete finisher, etc.  Will Train.

Refund Policy

Cancellations accepted no less than 48 hours before the appointment. Re-schedules accepted anytime. There is a one to four-hour minimum charge for no-shows. There is a 50% cancellation fee on the total invoice amount for a non-contract job plus any time and materials accrued on a job at applicable job rates. Exceptions applied only for a signed Service Agreement provision or agreed through mutual correspondence.  Canceled project reviews have a minimum cancellation charge of 50% of the invoice amount.

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Trudeau mulls name-and-shame policy to curb foreign worker abuse

(Bloomberg) -- Prime Minister Justin Trudeau’s government is mulling a change to help crack down on abuses of temporary foreign workers — publicly naming individual business managers or owners who violate Canada’s labor rules.

The measure would be part of a broader set of reforms to clean up the country’s migrant labor system, according to people familiar with the matter, speaking on condition they not be identified.

The government is facing heavy criticism for a policy that has made it much easier for companies to bring in temporary foreign workers, or TFWs, and for lax enforcement of rules intended to protect them. Trudeau’s administration, responding to concerns about labor shortages, increased the limits on low-wage TFWs in 2022, allowing firms to hire up to 20% of their staff through that program — with a 30% limit in certain sectors, such as construction.

The influx of workers from abroad has made it easier for companies to find staff and given a boost to economic growth. But there are growing concerns about outright fraud in the program — including unscrupulous immigration consultants who scam migrants by charging large, illegal fees to secure jobs for them. Some foreign workers are willing pay the fees because it increases their chances of eventually getting permanent residency.

A government-commissioned investigation completed in May — but not released to the public — found a significant increase in fraud and abuse, with newcomers charged $10,000 (US$7,300) to $180,000 for jobs, according to a summary viewed by Bloomberg News.

A report published this week from a United Nations official called Canada’s temporary foreign worker program a “breeding ground for contemporary forms of slavery.” Canadian business groups strongly object to that description, saying most companies using temporary workers are doing it ethically and following the rules, and are simply trying to fill vacant positions.

Currently, the government posts a database of companies found to be “non-compliant” in how they employ foreign workers. Companies found to be offside can be fined and temporarily banned from hiring foreign workers.

Recent examples include a Domino’s Pizza in Vancouver that was fined $21,000 for failing to provide the pay and working conditions it promised, and a commercial cleaning company in Edmonton, Alberta, that was given a five-year prohibition on hiring TFWs for similar reasons.

Government policymakers believe posting the names of the individual people involved in hiring foreign workers, if their companies are found to be in non-compliance, would provide greater deterrence to misbehavior, one official said.

The government also plans to scale back the low-wage stream of the temporary foreign worker program to bring the numbers more in line with pre-pandemic levels, said the official. That measure was reported first by the Globe and Mail newspaper.

Government data collected by Bloomberg shows the number of foreign workers in food and retail jobs surged 211% between 2019 and 2023.

A reduction in work visas for low-wage jobs would fit into a larger government plan to reduce non-permanent immigration over the next three years. Canada is also cutting back on the number of international students it’s allowing into its colleges and universities.

Earlier this month, Employment Minister Randy Boissonnault met with business groups and pledged stricter oversight in “high-risk” sectors. The government is also considering banning some industries altogether from hiring foreign workers for low-wage jobs, he said.

Still, some business groups have urged the government not to go too far in restricting companies from importing staff from abroad.

Nancy Healey, who holds a government post called the commissioner for employers, sent a letter to Trudeau’s cabinet ministers, arguing the country still faces significant worker shortages and it is “crucial not to reduce the labor pool.” The letter was signed by groups including the Canadian Chamber of Commerce and Canadian Federation of Independent Business.

This week, Healey also slammed the UN report on the foreign worker program. The idea that it leads to modern forms of slavery “is inflammatory and fails to capture the strengthened integrity measures” that were adopted in 2022, she said in a news release.

--With assistance from Erik Hertzberg and Jay Zhao-Murray.

©2024 Bloomberg L.P.

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Government of Canada investing over $1 million in Pickle Lake

From: Federal Economic Development Agency for Northern Ontario - FedNor

News release

The Honourable Patty Hajdu, Minister of Indigenous Services and Minister responsible for FedNor, today announced a FedNor investment of $1,095,819 in the Township of Pickle Lake. The funds will support the construction of a community services and training centre, a key part of Pickle Lake’s comprehensive municipal revitalization plan.

FedNor funds will help support the community’s municipal revitalization plan

August 15, 2024 – Pickle Lake, ON – Federal Economic Development Agency for Northern Ontario – FedNor

The facility, which will be constructed at the entrance to the community’s downtown, will provide space for training, economic development and business support, and rentable space for local and visiting businesses. It will also provide flex space capable of hosting revolving community events, such as the Blackfly Festival.

In addition, the over 370 square metre facility will house the local offices of the Kenora District Services Board (KDSB). The current KDSB location will provide further opportunities in the form of possible community, co-working, or multi-purpose space.

This investment will foster business development, new partnerships, and critical economic infrastructure within the community. This project will help Pickle Lake to better respond to large-scale opportunities available to the community, which represents an important regional hub, and will support sustained local economic development.

“Pickle Lake’s new community service and training centre will provide residents with the tools they need to succeed in their life and career, directly in their community. This centre will create good stable jobs and help grow an economy that works for everyone.”  -       The Honourable Patty Hajdu, Minister of Indigenous Services and Minister Responsible for FedNor

“As Ontario’s last frontier, our community is proud to not only serve our local population, but to provide connection to remote communities and opportunities in the region. This FedNor investment will go a long way toward supporting our municipal revitalization plan, and we are proud to partner with the Government of Canada in turning our planned successes into reality.” -       James Dalzell, Mayor, Township of Pickle Lake

Quick facts

The Township of Pickle Lake is located at the end of Highway 599, the most northerly highway in Ontario. Pickle Lake provides an important service and transportation hub for remote communities in the far north.

The funds announced today are provided through FedNor’s Northern Ontario Development Program (NODP) , through which FedNor invests in projects led by municipalities, First Nations, and other organizations and institutions that support community economic development, diversification, job creation and self-reliant communities in Northern Ontario.

Associated links

• To find out more about our programs and services, please visit: fednor.canada.ca
• Follow us on X (Twitter): @FedNor

Jennifer Kozelj Press Secretary Office of the Minister of Indigenous Services and Minister responsible for FedNor [email protected]

Federal Economic Development Agency for Northern Ontario Media Relations

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