Thoughts on this?

[ChrisGav]

I've recently been thinking about getting into the construction industry and getting into general contracting.

The reason this crosses my mind, no one wants to work hard anymore! My parents were trying to remodel their home recently and were telling me how every contractor they called is booked out for at least 2 months. I spoke with my neighbor the other day who is a real estate investor, and he was telling me how he no longer invests in residential properties because good contractors are so difficult to find.

I'm seeing a huge need for this everywhere. However, I'm not mechanically inclined in the slightest.... I'm sure I could learn it though?

What do you think about an industry like this? Would entail dealing with a lot of employees which could be a headache.
Is it scalable, realistically?
Most competition would suck, evidently. Most people struggle with contractors who either rip them off/untrustworthy, or simply have poor communication skills.

 

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[ChrisGav]

You make a lot of (incorrect) assumptions in this post...

Just because contractors are booked out a couple months doesn't mean they don't work hard. And just because investors are having trouble finding good contractors doesn't mean they don't exist.

Good contractors are booked out because there is a lot of demand for good contractors. And the reason that investors have trouble finding good contractors is because investors don't like to pay the prices that good contractors command these days -- if you aren't willing to pay for good quality, you're likely not going to get it.

There are absolutely a lot of bad contractors out there, but that's simply because it's a low-barrier-to-entry business, and people tend to congregate towards these types of industries. But that doesn't mean there aren't lots of great contractors out there as well -- they just charge a lot of money and most people would rather bargain shop...and end up stuck with the bad ones.

As for a construction business being scalable -- absolutely. Just like any service business. But, just like any business, you need to know how to scale. You have to be good at hiring, managing employees, marketing, sales, customer service, operations, scheduling, budgeting, cashflow management, etc. Most people aren't good at these things, which is why most business owners don't do well.

As for not knowing about construction, you don't need to be a contractor to start a construction business. But, if you're not, you will want to:

1. Know how to start, build, operate and scale a business;
2. Know how to vet and hire people who DO know the construction business and can run operations for you.

If you go this route, plan to have a good bit of startup cash, as you'll need to bring in all the people who will manage your business for you before you actually get any clients. When you're bootstrapping (and doing a lot of the operations yourself), things are cheaper; but if you can't operate the business yourself, the trade-off is a lot of startup capital and very strong management.

The other thing to consider is that construction is a tremendously cyclical industry -- you should think about where you believe the economy and the housing sector is headed, and how long it will take you to scale your business. You don't want to be in the middle of scaling a construction business when a downturn hits, especially if you don't have a strong reputation and can run your business highly efficiently.

Thank you for the feedback.

I should have worded it differently, but what I meant when I said "people don't want to work hard" I meant that many people aren't growing up wanting to be in these sort of industries, thus making them in high demand.

I currently run a pressure washing business. I'm 21 years old, but am wanting to find something to set my sights on for a long-term business venture. Essentially, I'm wanting to find something that I can be learning at night when I'm not working that could be another business venture down the road as pressure washing is not my long-term aim. Any ideas?

Thanks!

 

[SPENCER C]

Just started pressure washing too, loving it so far, profited almost instantly

 

[ChrisGav]

Just started pressure washing too, loving it so far, profited almost instantly

It's great. Cheap start-up, no overhead, and it's a service people want. How have you been getting most of your customers thus far?

 

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[SPENCER C]

That's usually the only issue, but so far I haven't had much trouble by printing flyers and going door to door. Started yesterday and have done two jobs so far for 580 total.

 

[ChrisGav]

That's usually the only issue, but so far I haven't had much trouble by printing flyers and going door to door. Started yesterday and have done two jobs so far for 580 total.

That's awesome 580 from just flyers and door to door? Congrats man! Let me know if you need any pointers. I've been doing it about 7 months now and it has been a great learning experience thus far.

 

[SPENCER C]

Thanks man! how about you? I ran a facebook campaign today but I despise facebook, never had much success with it.

 

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[ChrisGav]

Thanks man! how about you? I ran a facebook campaign today but I despise facebook, never had much success with it.

I actually started a facebook ad about a week back. Have gotten a few likes on it, but no one actually converting or interested.

Most of my customers have come through networking. I joined a BNI group, and have been trying to get in touch with as many realtors as possible. My thought process is finding people who already have your customers. This could include: Realtors (perfect because a lot of them like pressure washing the house before listing it), possibly partnering with HVAC companies, handymen, roofers, landscapers, or anyone who is constantly around homes and homeowners.

The main issue with this industry is that it's the type of service people need maybe once every 6 months tops. So you want to find people who could consistently refer you.

The best part about this industry however: most of your competition is not going to networking events, typically doesn't have strong communication skills, and is not offering a personable level of experience. My main selling point has been allowing my customers to feel like they can trust me. Think about it, you're going to someone's home. They want to know it's a guy that isn't shady, isn't going to break in their home especially if they aren't home while you are working. Customers are willing to pay extra for this.

I have landed a few commercial clients as well. My local YMCA, a technical college nearby, an oral surgeon (actually went to get my wisdom teeth out and he had dirty sidewalks. Ended up selling him on cleaning his sidewalks before he took my wisdom teeth out!).

This service is the sort of thing that isn't NEEDED, but is desired. Thus, most people don't think about pressure washing their home all the time. This is why networking is powerful in this industry as well as EVERY industry. When you talk with people and you say you pressure wash, they automatically think of their own home. Guess what a lot of them say "Man, I've actually been thinking about having someone do that for me, just never got around to it". Most homeowners won't think about this regularly, but when you mention that you pressure wash it's convenient for them. They don't have to search for someone to do it, and they get to know you. Most of them will setup a meeting for you to give them a quote.

Got caught rambling again... hope it makes sense!

 

[SPENCER C]

You're good man!
Spot on.

Yeah, i'm in the Navy Reserves and ill wear my navy sweats, definitely helps with the trust factor.

But yeah for sure, it's not really a constant thought people have about getting their driveways done until someone asks.

One guy said "nah i dont need it" but saw me do his next door neighbor and called me back a few hours later.

I'll keep the networking in mind, good to know I'm not the only person struggling with fb ads.

I'll probably keep up with the door to door for the time being, like you said, being personable and just a friendly guy goes a long way.

 

[ChrisGav]

You're good man!
Spot on.

Yeah, i'm in the Navy Reserves and ill wear my navy sweats, definitely helps with the trust factor.

But yeah for sure, it's not really a constant thought people have about getting their driveways done until someone asks.

One guy said "nah i dont need it" but saw me do his next door neighbor and called me back a few hours later.

I'll keep the networking in mind, good to know I'm not the only person struggling with fb ads.

I'll probably keep up with the door to door for the time being, like you said, being personable and just a friendly guy goes a long way.

Keep it up! Feel free to message me directly in the future if you have any other questions regarding it.

 

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[hawktoy85]

In most states, you need specific trade experience to be a contractor. I believe South Carolina is only 1 year. But you have to have another contractor fill out an affidavit of your experience. Pressure washing isn't going to count.