From Hard Hats to High Profits: Unleash Your Potential as a Contractor in Tennessee

If you work in construction or contracting, then you know that becoming a successful contractor is about more than just wearing the right safety gear and knowing how to use power tools. Contracting is hard work, and running a business isn’t any easier. Combine the two, and you’ve got quite the challenge in front of you.

But you’re not alone. Decades of contractors have forged the path, and decades more will come behind you. So to add to a legacy of success in Tennessee’s ever-growing construction industry, let’s take a look at what you need to know to get started.

Have a Plan

You can’t just wake up one day and start a business. Building a successful business takes time and experience. To start a company, you need to come up with a business plan to help you get off the ground. Some of this planning will be for you— logo, branding, licensing, pricing out insurance. The rest will be to present to potential investors— potential revenue streams, marketing plans, and fundamentals like early budgeting and expenses. You can use traditional funding, such as through a bank or investment group; crowdfunding, where you convince members of the public to donate to your cause; or have pre-established wealth to pay for everything, whether through previous ventures and investments or family money.

Cover The Basics

First and foremost, you need training and experience. Everyone has to start somewhere, and expecting to run your company straight out of licensing exams will be a tough sell. Most contractors start by working for other contractors so they can get a feel for the business while working their way up the ladder. If you have a good relationship with your management, then you’ll have firm allies in the contracting industry when you “graduate” to starting your own company. You’ll also have years of experience behind you, so clients are more likely to trust your work.

Next, you need a contractors license. If you want to start small, a Home Improvement License will prepare you you for projects valued at around $3000; however, you need a contractor’s license for projects valued at $25K or more. To make sure you get it right the first time, take one of the Tennessee contractors license prep courses and ace the test when time comes.

Know the Law

Part of your contractor licensing exam will cover the legal aspects of working as a contractor, but you need to stay up to date after you’ve passed. Building codes are constantly updated, and insurance policies change. You need to keep track of your industry so that you can avoid legal headaches.

One great idea is to find a lawyer in your area. You might not want to retain a lawyer right away since you need to have enough income to pay them. But having a lawyer on your side who can check over business contracts, keep an eye on your insurance requirements, and ensure you are staying above board will be far cheaper than having to answer to a lawsuit.

Have Solid Insurance

You need to have liability insurance to start. Construction is rough and dangerous work; no matter how safe you keep worksites, accidents can happen. A wise homeowner won’t hire a contractor who doesn’t have insurance for those accidents.

If you bring on employees, then you will also need to invest in worker’s compensation. This insurance ensures that you and your employees are protected if they get hurt or become ill when working for you. It also lets employees know you have their best interest in mind.

Know Your Paperwork

Building code varies by city, district, and region, but they all must adhere to Tennessee’s state-level requirements. Before taking on any projects, you need to have the right paperwork. While your Tennessee contractors license prep will help you understand the importance of being up to code and getting your permit, most districts have their own way of doing things; Knoxville will not be the same as Chattanooga.

Get to know the building permit departments around where you plan to work and learn their processes. Find out what you need to apply for permits in their areas and how to make the process as easy as possible for you both. You can also work up a sheet with current permit costs and check in from time to time to see if the cost has changed. This will help you budget for projects and prevent you from having to scramble for unexpected funds mid-project.

Having the right permits for your project is essential. For one, improper paperwork could land you with heavy fines or court appearances. These issues are more than just time-consuming and expensive— they can harm your reputation. As a contractor, your reputation is almost as important as being properly licensed and insured. You need a good background to pull in new clients and continue to grow.

The Highlights of a Solid Contractor

Getting your business off the ground is the hardest part, but you can get there faster by following these key processes:

• Deliver on Time and Budget
• Embrace Technology
• Offer Solid Warranties
• Continue to learn and develop
• Be transparent and communicative
• Have a solid web presence
• Thoroughly vet employees

Clients appreciate a contractor who will consistently deliver while minimising delays and cost issues. When those issues arise, however, clients are more willing to be patient when they understand what is going on and how it’s out of your hands. Be clear and communicative when working with someone, and always warn of common delays when laying out their project plan.

For your employees, remember that these workers won’t just be representing themselves. Anything they do reflects on you and your company. Poor workers can lead to fewer clients, and any criminal activity will be under your name. Protect yourself and your clients by ensuring you only hire ethical workers. Use background check services, and take a look at their social media profiles. If you aren’t comfortable vetting a potential worker, outsource the task to a recruiting agency. Recruiting agencies take every job seriously, as their reputation and future prospects depend on good results. They have the resources to look into potential hires for you thoroughly.

Don’t be afraid to outsource tasks you aren’t comfortable with. From accounting to taxes to recruiting, many agencies specialise in their fields to help all businesses, including individually-owned. Just keep good track of your finances and don’t overinvest, and you’ll soon have a network of professionals to help.

As a contractor in Tennessee, you have the potential for success if you follow these basic guidelines. Stand out in the industry, and reap the rewards.