10 Mistakes Contractors Make
I'm not suggesting that every contractor makes every one
of these mistakes, but I would imagine that most contractors have made
them in the past. If you're starting out as a home building or
remodeling contractor, I would like to share at least 10 mistakes
contractors make with you, so that you can avoid them in the future.
1. You shouldn't run your business without some sort of business plan.
2. You should know exactly how much you can charge clients in your area.
3. You shouldn't work with people that you don't get along with.
4. Avoid signing contracts that you don't feel comfortable signing or don't understand.
5. You shouldn't undersell or oversell your services.
6. Don't do any work that you don't know how to do or that you don't have a contractor’s license for.
7. Make sure that you put a certain amount of money aside from each job for future advertising.
8. Make sure that you pay all of your federal, state and local taxes.
9. Make sure that you have workers compensation insurance and don't ever hire an employee with out it.
10. Last but not least, one of the biggest mistakes that contractors make is spending all of their money. Sometimes the money they spend this money that they need for building materials, taxes and payroll, yet choose to spend it anyway.
Some of these mistakes I made on my own and some of them I didn't. I watched other contractors lose their construction companies because they weren't paying their taxes or an employee got hurt on the job and they didn't have enough insurance to cover that particular incident.
If you're planning on staying in business and would like to be a contractor for a long time, make sure that you understand each and every one of the mistakes that I listed on this page.