Most people like the idea of being their own boss and working their own hours. Whether in construction, consultation, or other, becoming an independent contractor is one way of making that dream come true.
With that said, launching an independent contractor service is no simple feat. If your goal is to achieve business success (and of course it is), the following tips will prove essential:
Many states require independent contractors to obtain the necessary licensing before opening. Those planning on working as plumbers, carpenters, and similar trades may need further licenses. Having all the required permits and other credentials will be critical to avoid stiff fines and penalties.
Get bonded and insured
Many potential clients will only work with contractors who are bonded and insured. But what does that mean, exactly? Bonding refers to an agreement that protects the client if the job is unfulfilled or done incorrectly. On the other hand, insurance is a basic protection plan meant to protect your business in the event of property damage or personal injury.
Use a lead service
The hardest part about launching an independent contractor business is finding the clientele. Companies like Networx leads service specialize in helping contractors find the jobs they need to succeed. Consider using an outside lead service at the onset of starting your contractor business. It’s an easy way to hit the ground running rather than spending weeks waiting for leads to come in naturally.
The waiting game is never fun, but it’s an unavoidable part of the business. Even with the help of third-party leads, chances are it’ll take a month or so for business to start taking off. With this in mind, it’s imperative to be patient. Resist the urge to tweak your business plan or alter your service offerings during this time. Allow your lead investment to pay off and keep yourself busy by improving your skills.
Clients love to see the job done fast. With that said, contractors should never rush through a project. Instead, make a point to work diligently. Show up on time, do the job right, and stay until the work is finished. Sometimes things take longer than expected; other times, things happen faster than anticipated. As long as you continue to work diligently, it all evens itself out over time.
A common mistake many beginner contractors make is bidding too low on a project in hopes of winning. Doing so can result in losing lots of money. While it’s tempting to say whatever it takes to secure the job, the ultimate goal is to generate a profit. That can’t happen if you’re paying the difference between the bid price and the actual price. Will you lose out on some jobs because you weren’t the lowest bidder? Probably. But it’s always better to wait for a job you can feasibly pull off versus securing a job you can’t afford.
Working as an independent contractor is an excellent opportunity to be your own boss and work your own hours. However, it’s still a lot of hard work. Those interested in launching an independent contract business will want to follow the tips mentioned above to succeed.