Kitsap Peninsula Business Journal
11-7-2002
So You Want To Be A Contractor...
By Bill Hoke

One of the joys — and sometimes sorrows — of my business is to work with people who want to be in business on their own. Whether they are suited to be self-employed is another subject for another column, but in this case my client had inherited a family contracting business.

Denny (not his real name) has been working as a carpenter for the family business for five years. He’d moved up to lead and was supervising crews and sub contractors. Now the business is his. All of it.

Give Denny credit for acknowledging his lack of experience in some areas so he had no trouble asking me, “What do you think I should do now?”

So, I made my “top ten” list of suggestions for his new business. I suspect it is true for most any business anyone starts these days.

1) Get on top of your current customers’ jobs; take care of them and make sure they understand your transition process, how you intend to finish their jobs. Get clear on the money on every job, every time. Issue written progress reports.

2) Get professional help in place before you take on any additional work. Find a banker who understands contractors. Same with a CPA who will talk straight and who will work with you so that you never miss a tax payment. Find a lawyer who understands liens and liability. And get the proper licenses, bonds and insurance coverage. Now that you are in business, do business.

3) Form a business “advisory board” of 8-10 people you know who know about contracting and business and ask them to meet every 90 days for the first two years to help you stay on track. Listen to their advice. Buy them a nice dinner for their help. Everyone knows 250 people and your ten advisory board members will know 2,000 or more people.

4) Pledge that you will keep track (see below) of every person you meet in business, every estimate you write, every job you do. This database of key contacts will become your most precious business asset. From Day One, Job #1 is to take care of customers and keep track of them.

5) Find the best contracting software you can find and learn to use it. In this day and age you cannot turn the business and money management over to a “bookkeeper,” or, worse, a spouse who already has enough to do. Get good, integrated, software to manage your business, provide estimates, track work in progress, keep track of appointments, subs, and even your PTA meetings. It will be the best business tool you’ll ever buy. You can take that to the bank.

6) Follow up every estimate you write. (See above).

7) Send a personal thank you card after you write an estimate, after you complete a job, for every referral every single time. Make this a habit and don’t even begin to think it is unmanly to send out a thank you card. Watch what happens when you do send one! Send flowers when you complete a remodel.

8) Now you are ready for additional business. Promise you will do business ethically (no “under the table work” — it only creates trouble). Be business like. No cigarette breath. Wear slacks for first visits. Return phone calls and no cell calls in the middle of business with others. No loud radios on job sites, no smoking without permission, be respectful of neighbors.

9) Find one place to advertise your business and continue to advertise as long as you are in business. What is the ONE advertising medium your clients have in common? A business newspaper? A weekly newspaper? Buy it consistently and keep your advertisement interesting. Use customer testimonials!

10) Take time for your family (this should properly be #1 on this list) and give something back to your community.

And, congratulations, Denny, there’s nothing better than owning your own business and seeing it grow and succeed.

(Editor’s Note: Bill Hoke is a marketing and sales consultant with offices in Manette. Hoke is the author of “The 90 Minute Marketing Plan.” He can be reached at hoke@hokeconsulting.com.).