I’ve gone over this a little before, but the volume of questions I receive on this topic make it clear to me that I need to revisit the question of how to make a lot of money.  I guess because this site’s title has the word “rich” in it, it attracts all sorts of people on the internet, and that’s fine.  I don’t have the hangups about money that some others do, and I don’t think that having a lot of money is inherently evil.  As long as your growth as a person is accelerating at the same rate as your bank account, then you’re A-OK in my book.  After all, it’s what you do with your wealth that really matters.

The problem, though, with attracting all types of cash-seekers to this site is that many of them seem to be looking for that quick hit that requires a minimal amount of effort.  Lots of people want to know how to get rich quickly or easily, but as those of us who have been around the block a time or two will attest, achieving wealth is almost never quick or easy.  There’s a reason why only a small percentage of people on this planet are absolutely loaded, and it’s that only a small percentage of us have both the desire and the enduring drive necessary to get there.  Newsflash: If you want to make a lot of money you have to work your butt off!  There is no easy way unless your last name is Hilton or Walton, and even those families spent decades and massive amounts of energy to get to ultra-wealth status.  Anybody that tells you otherwise is selling you something, and that something is a big, heaping, steaming pile of BS.

This is not to suggest that your contracting or service business will necessarily require decades to make you rich.  I’ve seen situations where a young small business owner worked extremely hard and became a millionaire within 5-6 years, but if you’re expecting to earn a six-figure income right off the bat remodeling kitchens and bathrooms then you’re in for some disappointment.  It will take time.  It will take sweat.  It will take sacrifice.  If you really want to learn how to make a lot of money then you better be prepared for battle.

There’s a Lance Armstrong quote that goes something like this: “Pain is temporary; losing is forever”.  Apologies to Lance if I got that wrong but I think the gist is evident.  There have been days in my business when everything that could go wrong did go wrong, when the deck seemed stacked against me, when all signals seemed to be that I needed to give up and go ask my old boss for my job back.  But, so far at least, in each of these instances I’ve been able to pull back from that edge by reminding myself that pain is temporary and losing is forever.  It is the decisions we make in these instances of doubt and confusion that ultimately separate the winners that make money from the losers that make excuses.  When the stuff hits the fan 95% of us will wither and retreat.  The other 5% will fight on with the knowledge that no matter how bad today is it will be a better tomorrow, not only because things are never as disastrous as they seem in the moment, but also because they know that the other 95% will have thrown in the towel.  The 5% consists of some ornery and stubborn folks, and if you want to make a lot of money with your own business you’ll have to be that way, too.

Okay, so let’s say you’ve got the work ethic and you understand that in order to make a ton of money you’re going to have to put in the time.  Next step: what kind of business to devote yourself to for the next several years or more.  I’ve gone over this in previous posts so I won’t rehash.  I suggest reading about making money with a simple service, getting rich via replication, and finding a profitable niche, just for starters.  Just know that unless you’re ready to scrap and bust your butt the rest is a moot point.  A tenacious business owner can make a go of it in the worst of industries while a limp noodle will have trouble growing a business even in the hottest fields.

Oh and, by the way, if you think that you can grow exponentially without spending at least a little money on the exploding opportunities that are available right now in small business web marketing then you are sorely mistaken.  Familiarize yourself with the leverage that the internet can offer or risk losing out on the huge percentage of consumers who no longer even use their phone book.  And gaining these skills will serve you in other capacities as well, because there are plenty of ways to make money online as a side-hustle to your full-time, remodeling business.

This post has sort of rambled on and I apologize to my regular readers for the sermon, as this is intended not so much for you but for the new folks who stumble in here expecting that I’m going to show them the “secrets” to making a lot of money without doing much work.  It was time for some brutal honesty.

So, a fair and kind heads-up to the newbies out there.  Send me an email demanding to know “how to make a lot of money fast” and expect that I will reply with a link to this post and probably nothing more.

I’ve put together a ton of information on this website to try to help the average guy (or gal) get his (or her) own contracting or service business going and thriving, but occasionally I’m asked basic questions that demonstrate to me that I need to go over more of the basics.  One question I get over and over again: “What exact steps do I have to take to actually become a contractor?”  These questions come from folks who usually already have a skill but have never owned a business before and are afraid that starting one would be too complicated or too risky.  It doesn’t have to be either.  Learning how to become a contractor is actually a rather straight-forward process.  Here’s a basic list for turning that dream into a reality (note that this list could be slightly different for your state):

1. Have the guts to go for it.  Either you can make excuses all day long not to start your own business or you can grow some courage and take the leap.  As for me, I worked at a dead-end job for years that offered no opportunities for advancement or growth.  I reached a point however, around my 30th birthday, when I realized that life was passing me by and I wanted something more.  I wanted to take a risk.  I wanted to be in a leadership role.  I wanted to experience the ups and downs of the American entrepreneurial experience by becoming a professional contractor.  Above all, I wanted to build something that was tangible and that I could be proud of.  So I went for it, and I’ve never once regretted the decision.  There have been highs and lows, good days and bad, but overall it’s been a terrific experience, and my only real regret is that I didn’t start sooner.  (Please make this transition in a smart and calculating way, my friends.  Unless you have mass cash reserves set aside, it’s a good idea to keep the day job and work your biz on the side until things really start rolling.  For more on this subject, please see my post about knowing when to quit your day job.)
2. Decide what kind of service to offer.  I think the most important part of this decision is making sure it’s something that you have at least some level of interest in.  Don’t become a contractor in a trade that you hate just because you “heard” that there’s good money in it, because you’ll burn out before the big money even starts to roll in.  You don’t have to love it, either, but it should be something you can tolerate long enough to get to that point when you can hire on laborers.  Ideally, your business should also involve something that you’re already skilled in.  Learning the ins and outs of a new trade is extremely time consuming, and time is money (you’ll have your hands full with administrative tasks, anyway).  If you still don’t know what to do, ask your family and friends for advice.  Often times those closest to us know our talents better than we do.  If you’re more of an organizer and a leader then you might want to focus your efforts on learning how to become a general contractor.
   
   

   Learning how to become a contractor is not difficult, but few people take all the necessary steps to ensure legitimacy and, ultimately, success.

3. Name your business.  Keep it short and memorable, but not hokey.  People shouldn’t laugh when you tell them the name of your business, nor should it be so convoluted that you have to repeat it five times before they get it.  Remember, your business is a brand, and you’ll be identified with it for the foreseeable future.  Make it a name to be proud of, and include the type of service you offer in the name if possible.  Check the website of your state’s Secretary of State to make sure the name is still available, then register it as a sole proprietorship, LLC, or corporation (among others).  My business is set up as an LLC but check with a lawyer to decide what’s best for your situation.  I’ve added a post that discusses setting up as an LLC versus an S Corp.
4. Apply for an EIN (Employer Identification Number).  If you are set up as a corporation or LLC then you need to do this even if you have no employees, and you can apply online here for free.  You’ll need this for things like opening a bank account, applying for a license, and filing a tax return.  If you are a sole proprietor then you are usually not required to have an EIN, but it may benefit you to have one anyway as it helps to protect your personal information and shape your image as a real pro with a legitimate business.
5. Apply for a service vendor’s license from your state.  This one came as a surprise to me back in the day when I was in the process of learning how to become a contractor, but it’s one of those red-tape steps that shouldn’t be overlooked.  Depending on your business and state this may or may not be necessary but it was for me.  Again, a simple google search should point you in the right direction on this one.  Most states now have a business gateway website that will walk you through a lot of this kind of stuff.
6. Open a business bank account.  This is easy.  I walked into my local bank, met with someone for about 15 minutes and it was done.  I walked out with a booklet of checks and received a debit card in the mail a week or two later.
7. Get insured.  Nothing says “amateur” like an uninsured contractor.  This will be a significant expense for you but well worth the cost when you consider how many potential customers will turn you away if you don’t have it.  Talk with a local agent to go over your particular situation and to make sure you’re fully covered for your services, vehicles, and equipment.  If you plan on hiring employees right off the bat, you’ll also need workers compensation coverage and probably an unemployment compensation tax account with your state’s department of job & family services(check with your state for more information).
8. Register with your state’s department of taxation if you’ll be collecting sales tax.  This is usually a pretty straight-forward process, and I pay collected sales taxes to my state on the internet once a month.
9. Make sure you take the necessary steps to become a licensed contractor, if the law requires it. My business did not require any sort of trade license, but obviously for people like electricians and plumbers this is a must-have.  In some states you’ll need a license even if you’re trying to learn how to become a general contractor.  Starting a legitimate contracting business means playing by the rules, and avoiding them will burn you eventually so take this one seriously.  It’s hard for me to be more specific about getting a license because every state handles it differently, but just Google it and you should have your answer.
10. Find a location.  Obviously it would be wise to start your business from home and then if growth justifies it look for an industrial space to rent or buy.  Many states also offer a department of development website with an online database of available commercial space.
11. Set up a business phone number.  Setting up a dedicated line for your business not only comes across as more professional but also usually gets you a complimentary listing in the phone book.  Try also to get a number which translates into an easy-to-remember “vanity” number.  For example, if you’re starting a roofing business see if they’ll find a number for you that ends in 7663 (which coordinates with the letters R-O-O-F).  It’s easier for a potential customer to remember 999-ROOF than 999-1928.  When I set ours up the rep at the phone company was very helpful with this and it was done in a matter of minutes.
12. Prepare for the accounting.  You can either hire this out or use software like Quickbooks.  I use Quickbooks and it’s a huge timesaver once you get the hang of it.  I know, I know, you want to become a contractor, not an accountant, but sometimes in the early stages you have to wear several hats.  It comes with the territory.  If you would rather just hand this stuff off to a pro then I recommend Randal DeHart at Fast Easy Accounting.
13. Learn about how to price your work.  This is a biggie.  The most common mistake I see with new contractors is that they don’t know what to charge their customers.  Usually this means that they don’t understand their cost structure, they don’t understand buyer psychology, and they don’t place a high enough value on their own time.  Result?  Epic failure.  Well, the good news is that there’s an easy button for that.  Check out my buddy Dan Perry’s guide to becoming a $100k Handyman (it’s applicable to any home services or remodeling business).  He’ll show you EXACTLY how to price your work for maximum profits.  Follow along as he shows you how he went from making $25 an hour to over $90 an hour with his business.
14. Get the word out.  Time to tell every person you know and meet about your cool new contracting business.  Have professionally designed construction business cards on you at all times.  Order postcards and have them direct mailed to wealthy suburbs in your city.  Most importantly, start a blog using my complete, step-by-step guide.  Our web efforts have been, by far, the single biggest factor in providing us with free construction leads and growing our business.  Web marketing is far more cost-effective than TV, radio, or print ads.  It’s still shocking to me just how few contractors bother to utilize the internet, but that’s a good thing for you because if you go that route you’ll have very little competition.  Also, start networking with other professionals in your city who are even remotely connected to the home improvement industry.  Check out Jonah’s great tutorial on how to get no-cost leads through realtors.

Now sit back and watch the money roll in.  Yeah, right!  Now the real work begins, but if you’ve made it this far you’re already ahead of the 99% of people out there who talk a good game but will never do what it really takes to get a business off the ground and running.  Please keep in mind that this is a generic list and that there could be additional steps and procedures in becoming a contractor that you’ll need to take depending on what state you live in, what your legal structure is, and how many other owners are involved.  Though I set up my business without the help of a lawyer, you’d be wise to consult one just to make sure all your bases are covered.

So now you know how to become a truly self-employed contractor.  It’s not hard.  You just need to do it.  Do you have it in you?  If you’ve read this far then I’m willing to bet that you do.

Technology continues to shape the way we work. From smart devices to cloud computing, technology changes workflows, teams, and outcomes for companies in a wide range of industries.

Regardless of whether it’s in a large corporation or a startup, digital tools can help teams complete tasks more efficiently.

By successfully implementing digital technology into work, many industries are able to reap the time-saving and productivity-boosting benefits allowed by modernizing the way they work.

However, in construction, many teams still aren’t using technology. This effectively hinders them from attaining higher levels of productivity.

With the numerous capabilities of modern digital tools, there’s no question as to whether they can help construction teams perform better. If teams can use them on-site, in planning projects and communicating with clients and subcontractors, they can accomplish more in shorter amounts of time, as well as produce better work for clients.

Let’s have a look at the different technologies that can be of great use to construction teams.

Time and location tracking apps for easier team management

Due to the nature of the work in construction, time and location tracking go hand-in-hand. The two features combine to produce unquestionable proof of work and make the managers’ jobs easier.

Tracking each hour worked by team members

Monitoring the hours worked by each crew member has been one of the biggest management problems for contractors. Finding ways to accurately track where and when crews are working is a challenge that team leaders have been dealing with for a long time.

A lot of teams are still using paper-based timesheets. While they can provide project managers with a general idea of how long the team members have worked for the day, they can be easily manipulated.

This leads to time wasted on investigating discrepancies in the recorded hours.

Accurate time tracking software eliminates this problem. With time tracking apps for mobile devices, every minute worked by the team is automatically recorded and stored. Both managers and business owners can access this information at any time.

Know where the team has worked throughout the day

Keeping an eye on each crew member in a construction team is inefficient, not to mention physically impossible. It’s important to make sure that everyone is doing their job, but the more relevant tasks should always be the priority.

GPS location monitoring makes an otherwise impractical task simple. With location monitoring features, team leaders can get insight into what the crew has accomplished for the day. The data gathered also serves as proof that the work has been done, for both contractors and clients.

The latest update to GPS tracking is geofencing, which automatically starts and stops time tracking as someone enters a job site. It’s a simpler way to keep track of team hours so that estimates and invoices are easier to generate and more accurate.

Building information modeling: seamless project planning

Project failure can be caused by many factors, but poor planning has always been one of the leading culprits. Proper planning provides the best foundation to a successful project. It should be executed very carefully, and all factors surrounding the project should be considered. Otherwise, future complications like reworks and additional costs are inevitable.

Building information modeling software is excellent for construction projects. BIM apps make sure that team members are in-sync so they can plan and work together effectively. Other benefits of BIM software include risk mitigation, reduced errors, and prefabrication.

The main feature of BIM software is 3D modeling. It is used to detect structural problems in the early stages of the project. However, BIM software comes with other useful features like cost estimation and scheduling, as well. These features can be integrated into the 3D models to make sure that plans are as detailed and accurate as possible.

Virtual reality: Improve training quality and client communications

When talking virtual reality, entertainment and media are often the first applications to come to mind. However, VR’s impressive capabilities make it a valuable asset to have in a construction team.

Better training, better output

Providing in-depth training to crew members is crucial in a time when a large part of the workforce approaches retirement. Stepping in will be the newer and less experienced generation.

Virtual reality allows the crew members to understand and navigate around the site better than floor plans and blueprints. It gives them a clearer understanding of the project and helps them operate on-site more effectively.

Communicate with clients more clearly

In addition to being excellent for training purposes, virtual reality also helps client and contractor communicate better. Ineffective communications, per Coreworx, is the primary contributor to project failure a third of the time.

With virtual reality, clients can see the projected output early on so they can inform the contractors of misunderstandings, and if any adjustments are necessary. This greatly decreases the possibility of reworks—and in the worst case scenario—project failure.

Artificial intelligence: the next frontier

Significant leaps in artificial intelligence have been made in recent years. With the wide range of capabilities AI has, it has the potential to be a fully reliable support system for construction teams.

AI can affect construction in a variety of ways. When fed with information about the project, AI can aid architects and engineers in creating construction plans. Robotics can help crew members perform physically demanding tasks easier.

Further, AI also has administrative capabilities to assist team managers. When workers input absences into the system, the AI can automatically assign the task to another crew member to keep the flow of work going.

The future of construction

New and more advanced technologies are being developed by the day. Despite being slow in adopting technology, a change in the way construction teams work is inevitable.

Construction teams can look forward to a more streamlined work process, with support from the latest digital tools. Technology moves improvements forward, and if teams can take advantage of this, they can discover more efficient ways to perform their jobs.

Author’s bio:

Dave Nevogt has created several million-dollar companies, and is the co-founder and the current CEO of Hubstaff, a time tracking software for on-site work crews with online timesheets, scheduling, billing and invoicing.

Dave Nevogt

Co-founder, Hubstaff

https://hubstaff.com

@hubstaff