Starting a business

[J&MFloorCare]

I have worked for others in the construction industry since I was legally able to do so.
I have experience in rough framing, finish carpentry, Steel Framing, and Construction management.
I have ran a semi-successful flooring company for the past few years, but I find that I have more then a fleeting interest in becoming a building contractor.

I would like to do the rough framing and flooring myself and contract the rest of the work.

Any advice from anyone on how I can get this started?
What are the costs associated with start-up of a sole proprietorship in this industry?

What software is most recommended for Estimating, CAD, accounting, etc..?

Is there anyone in Oklahoma that would be willing to help?

[Carl Sperry]

Re: Starting a business

Any advice from anyone on how I can get this started?

What are the costs associated with start-up of a sole proprietorship in this industry?

What software is most recommended for Estimating, CAD, accounting, etc..?

Sole Proprietorship is a bad idea. Too much room for lawsuits. Form a Corporation (Subchapter S not C). Your costs would be your attorney fees, state fees, license fees, accountant fees, ect. Hard to put a dollar amount on it.

UDA Technologies has relatively good software http://udatechnologies.com. I would outsource your CAD work. Accounting software is open for discussion. Most people use Quickbooks Pro or Peachtree.

[Mark Parlee]

Re: Starting a business

Good advice Carl

I second it.

[J&MFloorCare]

Re: Starting a business

Is the S Corp feasible for a one man operation? In my state it costs around $400 to form a corporation.
Is it wise to include an arbitration clause in the contract?



I have experience with CAD and would be comfortable doing it myself, but if it took too much of my time I would consider outsourcing.
I worked with a company that designed wood store fixtures, and we used a CAD program to do the designs, but I don't remember which program it was.

[m beezo]

Re: Starting a business

you sure this is a good time to start a business?

You stated a few of your past experiences for us. How about a couple of things to think about.

You got any money saved up? you are going to need something to live on while you get going. And buy tools. And buy business cards and insurance and job sign and letterheads and get a logo made.....

You got any work already lined up? How much?

Where you going to get your jobs from? Advertising, Yellow Pages, newspapers.....

Can you stay with your employer while you work a few more details out before you start on your own?

[philthegreek]

Re: Starting a business

Single member LLC.
m beezo has some good points. unless you can design you own logo, set up files and design your cards, letterhead and associated products, web site and other advertising, you are going to need some real coin. It will also take time to develop relationships with credible subs. Also, you will have to master more than just framing and flooring because timetables will have to be met and you need to know what those skills and trades need for the job to go smoothly. The economic climate is really tough right now. Are you prepared to compete with at least 15 other guys for the same work? Good luck. I have found the guys on JLC forums to be quite open and willing to help out, but you will be up against them as well.

phil the greek

[m beezo]

Re: Starting a business

ONe other thing that gets mentioned here from time to time is education. That can come in the form of these forums, magazines, books, videos, actual school.
Probably one of the best things is to take some business and financial classes. I wish I was better on the computer and found it easier to do spread sheets and keep track of things that way. Anything you can do to make you job easier is worth it.

You company that you work with now. They ever let you look at things like their books, the estimates, how they sell things and come up with their numbers. You will be doing the same thing once you go on your own.

Just like any job there is to be done, you can pick up a lot of information by watching or asking the right questions. And that is a lot of how we can learn things. For some of us the problem comes when we have to explain it to others or work with others. When you are framing a house is not the time to try to remember how to read a blueprint, do a layout, tell someone else how to do it if you are unsure yourself. At the learning stage is not the time to be debating with your next sub why you think they should be putting in blocking for kitchen cabinets before they drywall when they say it should be your job.

If I had to do it over again, and the circumstances were different about how I got into this line of work, I would be looking at a lot more business information. You can build the best house ever but if you do not price it right you are not going to be building very many of them before they move you out of the house you own.

[Carl Sperry]

Re: Starting a business

Is the S Corp feasible for a one man operation? In my state it costs around $400 to form a corporation.
Is it wise to include an arbitration clause in the contract?



I have experience with CAD and would be comfortable doing it myself, but if it took too much of my time I would consider outsourcing.
I worked with a company that designed wood store fixtures, and we used a CAD program to do the designs, but I don't remember which program it was.

Four hundred dollars is dirt cheap. Yes, it most certainly is feasible. An LLC isn't meant to be a permenent entity. Some states don't even allow that type of corporation. You'll have to decide what will work best for your situation, as only you will know that.

Some free advise for you. If you can find someone to do a task cheaper than you could do it, then let them do it. CAD programs often have a steep learning curve. What's your time worth? Have you figured that out yet? Finding out what you need to make to break even is a crucial point. Figuring your correct markup on your work is also important.

I would suggest looking at the following sites for ideas on your new venture:
http://score.org/business_tools.html
http://markupandprofit.com

[J&MFloorCare]

Re: Starting a business

I have had moderate success since 2005 as a flooring contractor.
I make my overhead, pay my subs, and still manage to feed my four growing children. My wife hasn't had to work in 10 years. We live a decent conservative life.

I have many contacts for Framing, electrical, plumbing, excavation, concrete, windows and doors, and more. I have a good rapport with several suppliers, and I have a decent understanding of how to run a business.
The marketing that I use could be redirected to include not just flooring but entire remodeling projects, as the customers that I get are often remodeling anyways. I have just aimed for the flooring work.
I have wanted to be a GC since i can't remember how long. At this point I am researching the feasibility of expanding my flooring company, or starting fresh with a whole new directive.

I have been working with a mentor from score that has helped me with the research and planning stage.
I have taken your advice and the advice of the counselors, and together my wife and I will decide our next step.


Thank you for the fine points that you have made above. If there is anything else that would help me i would appreciate hearing it.

I realize that the economy is rough at best right now, but I believe the old Chinese addage "The best time to start a business is 20 years ago, the next best time is now."
If I can expand into the remodeling industry now facing the challenges that are ahead will be much easier.
Strength comes from struggle, struggle comes from trials, and trials come from hard times.

[Ted S.]

Re: Starting a business

Strength comes from struggle, struggle comes from trials, and trials come from hard times.

That's a good one

[gman396]

Re: Starting a business

This is a good time to start a business. You have nowhere to go but up. Unless you try to start it in Michigan.

[kawendtco]

Re: Starting a business

i started 20 almost 21 yrs ago. keep saying its time to quit, then all at once a new job comes along that is really fun and makes good money. best wishes to you and keep your wife at the fore front of every decision you make. your family is far more important than any trade.

[davenorthup]

Re: Starting a business

I realize that the economy is rough at best right now, but I believe the old Chinese addage "The best time to start a business is 20 years ago, the next best time is now."
If I can expand into the remodeling industry now facing the challenges that are ahead will be much easier.

Josh - Welcome and good luck. I am a recovering floor guy as well. :)

If you can keep your core business going and slowly up sell those jobs to incorporate more aspects of the remodeling you should be in good shape.

I went from floors, to paint (as it makes sense before new floors) and soon we were selling paint jobs with every floor job. Then came more trim installs and that turned into bath and kitchen remodels. And the snowball grows.

You can see where I am going. Scale it up as fast as your comfort level allows. Luckily you have an established platform to start from, which is much more appealing than someone starting from scratch in today's reality...

[J&MFloorCare]

Re: Starting a business

Ted S.
That is an original. You are welcome to use it for a fee.


Davenorthup
I think I will follow suit and build from my existing business. I already do trim work, and have most of the tools needed for painting. The entire remodeling projects come to me often I have just taken the flooring and passed the rest to others.

kawendtco
God, Country, Family, Business, everyone else. The first 4 are set in stone the rest is negotiable.


I have just contracted with a mid cap GC to do warranty work and touch-ups. I think this will be a good opportunity to get my feet wet in other areas of building without much risk.

[Mark Parlee]

Re: Starting a business

God, Country, Family, Business, everyone else. The first 4 are set in stone the rest is negotiable.

Josh

I agree absolutely

I have just contracted with a mid cap GC to do warranty work and touch-ups. I think this will be a good opportunity to get my feet wet in other areas of building without much risk.

This is probably the best way to get into this along with those remodels you have been turning down.