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In this video tutorial I explain what is a general contractor, how to become a general contractor, how to get clients for this business, and how to write a business plan for a general contractor. That is quite a bit of information. Let's start with the basics by taking a look at what this type of business entails.
A general contractor is the company or individual hired to oversee an entire construction or home improvement project. That means that this individual or company is responsible for managing every skill and task needed, managing the budget, and making sure that everything is completed on time. This sounds pretty stressful, doesn't it?
It sounds complicated, and this is why this kind of a business is something you should grow into as you gain experience in this industry, and with completing smaller projects. As you complete smaller projects, you will also grow your business relationships within your industry. That will help you in the future when you will need recommendations for good services and to leverage those relationships when you look into hiring different companies and individuals to complete parts of the projects on which you will be working on.
A part of the business plan for a general contractor business should have in it how you will do marketing and get clients. It should also explain the size of projects you want to target, and your financial structure. The financial structure would involve your cash flow statement and your balance sheet. For other kinds of businesses I don't always urge to focus on finances immediately because their finances may be quite simple. But for this business you will need to be very careful and detail focused when it comes to figuring out how much to charge for various contracts and how to manage your own cost structure.
If you are already a general contractor, please comment in the comments of this video and post your experiences so that we can all learn from you and carry the discussion of how to start a general contractor forward.
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