Turn Your Skills into Success: Start Your Contracting Business and Explore Opportunities with Umoja Marketplace
Why Becoming a General Contracting is a Great Business Opportunity
Do you enjoy home improvement projects and have good business sense or a knack for problem-solving? If so, have you ever thought about transforming your skills in into a thriving contracting business?
Contracting offers some amazing benefits; it’s a flexible and potentially lucrative way to build your career OR supplement your income. Whether you interested in pursuing general contracting as a full-time gig or just as a side hustle, now is a great time to take the leap and start your contracting business and start to work on construction jobs near you.
In this comprehensive guide, we’ll walk you through everything you need to know about starting your contracting business, from planning and registration to marketing and growth.
Additionally, we’re excited to share our plans for the Umoja Marketplace, an advance search tool designed to connect contractors with homeowners in need of well defined services and other construction jobs. Umoja Marketplace is a big part of our vision to streamline the way homeowners and contractors collaborate on home improvement projects, by removing friction for your customers and ultimately helping you to focus on growing your business by landing more gigs.
Before we get started, let’s understand what contractors actually do.
What Does a General Contractor Actually Do?
General contractors are project managers. They oversee construction projects from start to finish. This includes scheduling the project, hiring contractors as subcontractors, obtaining permits, purchasing materials and communicating progress to the client. General contractors can oversee a variety of construction projects— from residential homes to commercial office buildings and are usually capable of managing multiple projects at once.
Step-by-Step Guide to Starting a Contracting Business
It’s important to understand, especially just when starting, that you are making a long term investment in your future. It will take time to acquire new skills, build your business and establish a network of partners and customers.
1. Assess Your Skills and Research the Requirements
Contracting is a skills-based business, so start by gaining hands on experience and honestly evaluating your skillset. Are you a plumber, a carpenter, electrician or are you handy at multiple things? For those just starting out:
- Enroll in training programs if you need to brush up on specialized skills. Local trade schools and community colleges are excellent resources. If you prefer online programs, platforms like Coursera and Udemy are excellent training resources.
- Research state-specific licensing requirements for general contractors. Some states require exams to prove your knowledge of building codes, safety regulations, and construction management, while other states (e.g. Pennsylvania) have fewer requirements. For instance, in the state of Pennsylvania, pretty much anyone who submits an application can become a licensed General Contractor.
- Obtain your licenses and make a concerted effort to stay compliant with OSHA safety certifications to protect yourself and your clients from amateur mistakes.
Pro Tip: Having strong reviews from past projects can be as valuable as certifications. Start small to build a portfolio of happy customers.
2. Develop a Business Plan
A clear business plan will set the foundation for success. Here’s what to include:
- Services Offered: Define whether you’ll handle residential or commercial projects or specialize in niche areas like kitchen remodeling or roofing.
- Target Market: Identify who your clients are and where they live. Urban homeowners? Rural businesses?
- Budget and Funding: Estimate startup costs for tools, materials, and licensing fees. Seek small business loans or grants if necessary.
- Operations Plan: Create a system for managing schedules, client communication, and payments.
- Pricing Strategy: Research local competitors and set rates that are competitive but profitable.
3. Register and Insure Your Business
Legitimacy and protection are critical. Here’s how:
- Business Structure: Decide if you’ll operate as a sole proprietorship, LLC, or corporation. LLCs are popular for their blend of simplicity and liability protection.
- Permits and Licenses: Obtain necessary permits based on your services and location. Use platforms like your state’s Small Business Administration (SBA) website for guidance.
- Insurance: At minimum, get liability insurance to cover property damage or injuries. Consider additional coverage for equipment and vehicles.
4. Gather Tools and Resources
You can’t get started without the right tools.
- Basic Equipment: Invest in quality tools like drills, hammers, ladders, and protective gear.
- Rent vs. Buy: For costly items like scaffolding or concrete mixers, renting may be more practical until your business grows.
- Software Tools: Use apps like QuickBooks for bookkeeping, Trello for project management, and Thumbtack for lead generation.
5. Build Your Brand and Market Your Services
Getting your name out there is key to landing your first clients.
- Create a Brand Identity: Design a logo and choose a business name that reflects your services and professionalism.
- Online Presence: Build a website with examples of your work, client testimonials, and a clear call to action. Social media platforms like Instagram can showcase visual projects beautifully.
- Local Marketing: Place flyers in community centers, home improvement stores, and libraries. Consider sponsoring local events to build goodwill.
- Join Contractor Networks: Platforms like Angi, Houzz, or the upcoming Umoja Marketplace can connect you with homeowners in need of your skills.
6. Network, Scale, and Stay Organized
As you gain clients, focus on building strong relationships and scaling your business.
- Networking: Attend trade shows or join contractor associations to meet others in your field.
- Customer Service: Great customer experiences lead to referrals and repeat business. Always communicate clearly and set realistic expectations.
- Invest in Tools and Training: Reinvest profits into better tools and advanced training to expand your capabilities.
Introducing Umoja Marketplace: A Vision for the Future
At UmojaHomes.com, we understand the challenges contractors face in finding clients and homeowners experience when seeking reliable professionals. That’s why we’re developing the Umoja Marketplace—a tool designed to bridge that gap.
What We’re Building
The Umoja Marketplace will launch as a contractor lookup tool, allowing homeowners to find skilled professionals based on zip code and service type. For contractors, this means increased visibility to potential clients who are already searching for your expertise.
Our Long-Term Vision
As we grow, we envision the Umoja Marketplace evolving into a full-fledged ecosystem where:
- Contractors can bid on projects and showcase their portfolios.
- Homeowners can post reviews and build trust within the community.
- Training resources are available to help contractors expand their skills and grow their businesses.
We’re excited to create a space that fosters collaboration, trust, and growth for everyone involved.
Take the Leap and Build Your Future
Starting your own contracting business is more than just a career move—it’s a way to take control of your time, income, and expertise. With dedication, smart planning, and tools like Umoja Marketplace, the possibilities are endless.
We want to hear from you! Are you a contractor with insights to share? Do you have ideas about what features would make Umoja Marketplace even better? Let us know in the comments or contact us directly.
Together, let’s build a stronger community where skills meet opportunity.