New Year, New Career: How to Become a Contractor in 2022
Did you know many people change their careers at least twice in a lifetime? If you want to become a general contractor and learn about different contractor jobs, we can help.
This guide will go over the types of contractors you can become.
Want to learn more? Keep reading.
Why Do You Want to Become a Contractor?
First, before you make any major job changes, think about your goals. Why do you want to become a contractor? Are you making a major life change? Do you have experience in the industry?
Think about how your career goal matches up with your life goals. If you have a new family, consider maintaining your current job. On the side, start getting experience in construction.
Ask your family or friends for recommendations on local contractors. You could meet with a contractor to find out their daily life tasks.
What Kind of Contracting Job Will You Pursue?
First, you should spend time researching the different kinds of contractor roles. What type of work would you like to complete? The standard categories of contract work include specialty and general contractors.
Research what specialists homeowners seek or business owners hire. You want to consider if this is a vocation you would imagine doing for a long time.
If you want to focus on kitchens or bathrooms, become a specialist. Work in the kitchen remodeling business.
What Is a General Contractor?
General contractors will work on commercial or residential construction projects. The contractor might work on renovations, remodeling, or even complete construction work.
State and local authorities have rules on how a person can become a general contractor. State authorities offer license types for commercial or residential contractors.
Undergo the Proper Training and Educational Requirements
Construction specialists complete a master’s or undergraduate degree. You could get a degree in project planning, architecture, or construction management.
In certain states, there are rules regarding the education level needed.
Some people don’t have a completed degree or enough experience. You could always look at attending a contractor school program.
You’ll learn how to become a general contractor or pursue a specialty trade. Finish a specialty training course to become a plumber or electrician.
Contractor training provides you with budgeting, financing, and construction materials. You will become familiar with building codes and critical construction regulations.
You’ll learn how to handle hazardous materials. Prioritize workplace safety, and maintain energy-efficient standards.
Get Experience as Soon as Possible
Get construction experience by working as an apprentice or at a construction-related job. You’ll learn hands-on experience as a building contractor.
Do you want to pursue a specific trade? Try working under a specialist. You can gain business and practical parts of the job.
Look at Passing the State Exam
A lot of licensing authorities will ask you to pass a test. The test will prove whether you are suitable to run a contracting company.
You might need to take a specialty test. Learn the general points of your trade during your training or apprenticeship.
You’ll Have to Register Your New Business
Once you pass the licensing exam, you will need to apply for a contractor license in your state. Then you will need to register your new company.
Pick a memorable name and choose a specific business entity.
What Is Your Business Structure?
There are common kinds of business structures to consider. Choose a partnership, sole proprietor, a limited liability company (LLC), or a corporation.
Register your business name with the proper authority in your state right away.
You’ll Need an Employer ID Number
Will you hire workers for your business? If you plan to hire contractors, you will need an Employer Identification Number (EIN) from the IRS.
Make sure you don’t delay. You don’t want to get in trouble as a new employer.
What Is Your Business Plan?
You should set up a business plan to help direct your goals and get funding from investors if possible.
Your business plan should outline information about your business operations, goals, and structure. It should know about intended services. Also, complete an analysis of the market.
What is your marketing and financing plan? What are your competitive advantages?
What Makes Your Business Different?
Research the market that you hope to enter. How many others specialize in your particular area?
What do they offer, and how does it differ from your business? You should outline the skills that make you different from the others.
Draft an Example Contract
You’ll need different documents as a contractor. Prep some of these templates early on to have everything prepared for customers.
Make sure you include payment terms, contractual agreements, and pricing details.
Maintain Your State License
Remain a reputable and licensed contractor. Find out the rules surrounding your particular state. The authority of monitoring and licensing contractors is a contractor’s license board.
Find the body in charge of the contractor licensing process in your state.
Work Toward Your Dreams and Become a Contractor
We hope this guide on how to become a contractor was helpful. You should get the proper license for your state and the right training. Consider drafting up a few template forms, so you’re ready for clients.
Are you in need of business tips to make your new contracting company a success? We have plenty of helpful resources on the blog to help you today so stick around.