subject: Make a Lot of Money With Your Own General Contracting Business [print this page] Make a Lot of Money With Your Own General Contracting Business
It's true that small business ownership is one of the most common and time-tested routes to earning a great living in this country, but it's worth pointing out that the type of business you start plays a large role in your ultimate ability to generate wealth. A general contracting business is one kind of venture that tends to be very profitable if operated wisely.
One advantage to becoming a general contractor is that your pool of potential customers is much larger than it is for a more specialized, niche-based service. There are only so many homeowners in your community that will require new windows in any given year, but add to that number the people who are looking for a new roof, new siding, new doors, or a new kitchen, and you're looking at a much wider array of potential new jobs. By starting a general contracting business you can address all of these home improvement needs for people in your community, and your potential to grow faster and make a lot of money is much greater.
Another benefit of owning a general contracting service is that it lowers your marketing costs, relatively speaking. A specialist contractor must spend great amounts of time and money on advertising because most potential customers in his city will not have heard of him and his ability to get repeat work will be greatly compromised. After all, how often will an individual require the services of a contractor who only builds decks, or only refinishes bathtubs, or only installs ceramic tile? The answer is hardly ever. Compare this with a general contractor who can do all these things and more. Odds are good that he'll have clients who consistently come back to him for all their home improvement projects, so the cost of acquisition for each of these subsequent jobs is literally zero! In addition, these repeat customers are more likely to spread the word about your business because you are fresh on their minds and because you can solve a home-related problem of one kind or another for almost everyone they know. Less money spent on marketing is more money that can be spent on expansion and a quicker road to massive profits.
Finally, becoming a general contractor is quite often a very lucrative move because it allows you to provide services that the vast majority of the population simply cannot or will not do on their own. When homeowners or consumers are limited in what they can pull off due to a lack of tools or expertise it creates a sense of scarcity which will always work in a contractor's favor. Similarly, most people have absolutely no desire to paint their whole house or finish their basement, preferring instead to make whatever financial sacrifices are necessary to hire the work out to a qualified professional. It's one of those industries that will always be in high demand, so setting yourself up as a general contractor virtually guarantees that you'll be in business for as long as you wish to be and will have ample opportunities to grow and expand. With growth and expansion comes the ability to make scary amounts of money if you're the guy in charge and have some management skills.
Scott W. is the man behind The Rich Contractor blog, where you can learn more about how to make a lot of money with your own service business. His site also has a detailed post about how to become a general contractor.
