Welcome to the Rich Contractor, the ultimate business resource for contractors, service professionals, and those who dream of jumping into the wild world of small business ownership.  Consider yourself lucky, because you’ve just found the playbook that I wish had been available to me when I was getting started.

Tight on time and want to skip the introductions?  That’s fine.  Here are links to great content that you can jump into right away:

Just getting started with your business?  Read How To Become A Contractor.

Need more jobs?  Read How To Start A Blog for beginners and learn how to make your phone ring off the hook.

Have plenty of work but still not making the income you desire?  Read How To Price Your Services For Maximum Profit.

Want to learn more about me and my blog?  Read on…

MY ROUGH START

Around the time of my 30th birthday I decided that it was time to rock the boat, so to speak.  My day job was not providing the opportunities for advancement and growth that I wanted, and the idea of starting my own business began to take root.  Finally, after lots of dreaming about it, I got off my butt and did it.  I started my own home services business.  But it wasn’t a walk in the park.  I was tackling an industry in which I had little experience, and I was clueless about how to get started and how to run the operation.  Searching the internet for answers, I realized that there wasn’t much in the way of helpful information on the web for people like me.  I also noticed that many of the other contractors in my city were just as “lost” as I was when it came to running and marketing a business.

I PERSEVERED

Well, I forged ahead with my new business anyway.  I learned a lot during those first few years and devoted myself to consistent improvement whether it came to marketing, customer service skills, or simply running a more streamlined operation.  As time went on my tenacity and willingness to learn began to pay dividends, and I eventually became one of the most highly-regarded professionals in my chosen niche.

But it still nagged at me that so many of my new-found friends and peers in the contracting industry were having a difficult time with their business.  I realized that many of them were still as lost as they had been years earlier, and would always struggle financially unless they learned a new way.  I knew that it was time for somebody to step up and develop an online resource that was truly helpful and comprehensive, and since I had some basic web publishing knowledge and the work ethic to see it through I decided that person would be me.

THE RICH CONTRACTOR IS BORN

So I started RichContractor.com towards the end of 2007, my primary goal being to educate, inspire, and empower other contractors and would-be contractors who were eager to succeed but lacked basic business know-how, just as I did years before.  The rest, as they say, is history.  It’s now one of the most authoritative sites in the world on the subject of starting and running a successful contracting or home improvement business.  So how can it help you?

Well, let me point you toward a few different entry doors:

Door #1:  If you want to become a professional contractor but haven’t started yet, first read my epic post about how to become a contractor.

Door #2:  If you’ve already started your business and need help with marketing or getting new business, I would suggest you begin by reading my posts about starting a blog, getting free construction leads, and choosing construction business cards.  You should also check out how to get projects through realtors, which is a fantastic tutorial by Jonah from Canter Construction in Charleston.

Door #3:  Other popular points of entry include my rant about how to make a lot of money and my comprehensive introduction to nailing contractor leads.

Then just keep working your way through the site.  There’s a mountain of information available to you here, so you’d be wise to bookmark the site for later reference.  Well, that’s all for now, folks.  Now go grab a cup of coffee and start reading…it’s time to turn that dream of entrepreneurship into a reality!

These days, nearly any business in operation needs to have some type of liability insurance coverage to protect itself from being sued.  Building contractors are no exception to this insurance rule.  Plus, this is true for both big construction companies that take on huge projects as well as small business contractors, regardless of the types of projects that are being completed.  This means that even if your contracting business is small and you only do minimal home improvement projects, you will still need to purchase contractor liability insurance to protect yourself.

We have all heard about liability insurance before, particularly when choosing an automobile insurance policy.  In this case, we have the option to purchase full coverage or just liability coverage, which only covers damage that your car may cause to other people or property.  Contractor’s liability insurance is actually quite similar.  For contractors, the liability insurance covers damage that is caused to both property or individuals as a result of the work that is being completed.  This type of insurance policy is appropriate for all facets of construction or building from home building, to home remodeling and even road construction crews.

When starting a new contracting business, we often focus on the planning, financing and marketing aspects that go into a successful company but we often forget about purchasing the required insurance.  It may seem like a hassle or an unnecessary expense; however, when the need for it arises, you will certainly be glad that you took the time to get it before something disastrous occurred.  Without the appropriate insurance, you can risk your business and your livelihood by leaving yourself or your company open to costly lawsuits.

An important part of running a successful business is learning how to minimize risk, and getting contractor liability insurance is a good step in the right direction.

One of the most important reasons to procure liability insurance is purely as a safeguard for both yourself and your business.  Without insurance, any type of accident that causes damage to another individual’s property or to another person can potentially cost you a large amount of money, along with exhausting court dates, and not to mention, it could possibly force you out of business. You cannot plan accidents, which is exactly why they are labeled ‘accidents’.  Obviously, we do not wake up in the morning and intend for any accidental damage to occur at our current project site.  They happen at any time and seemingly at the times during which we are least prepared.  But if we prepare in advance by purchasing liability insurance, we can make dealing with accidents as seamless as possible.  While we do not wish for them to happen, it certainly does not hurt to have a financial plan set in place before a disaster occurs.

In addition, depending on where you live, contractor’s liability insurance may not be an option; instead, it could be a requirement.  Some states require all contractors to purchase insurance before the appropriate governing board will issue a contractor’s license.  In addition, individuals or companies seeking to hire contractors may require proof of liability insurance and proof of a contractor’s license before you are awarded or physically begin a project, regardless of the state laws.  It is actually best to obtain the insurance policy and have an original certificate of insurance in your hand before you even think about bidding on projects, even though many states may allow you to bid prior to purchasing insurance.  Depending on how quick your insurance company works, it may take several days or weeks to physically obtain your certificate and copies are typically not acceptable.  Usually, construction projects have set contracts with predetermined start and finish dates.  Obviously, if you have to wait for your certificate of insurance to come in the mail, you may miss crucial deadlines and as a result, break your contract. So it follows that obtaining the appropriate insurance policy can either make or break your small business construction projects.

When it comes to finding a policy, the liability you choose will be dependent upon a number of things.  First, you will need to research the dollar amount of coverage that your state requires you to have based on your line of work.  These requirements, if applicable, are simply a minimum baseline that you should follow.  However, keep in mind that accidents may occur that could cost well over that minimum coverage requirement and you may have to pay for the excess out of your own pocket when a claim is filed.  So you will need to consider the type of work you do and how much your yearly contracts are worth.  If you are building commercially, you will probably want a policy worth a couple of million dollars or more, depending on the types of commercial buildings you intend to build or work on.  However, if your business is smaller and procures approximately $200,000 in yearly contracts, your policy should probably cover up to three times that amount.

Of course, the dollar amount of liability coverage you need will play a huge role in determining the price you will pay for the insurance policy.  Likewise, similar to the rules on car insurance, construction liability insurance policies will vary in price depending on the danger that the business experiences throughout the duration of the project.  For example, roofing companies should expect a higher rate than other trades, such as painting, simply because of the danger associated with working on roofs.  Other factors that go into policy pricing include the overall risk of damage based on the line of work and the number of employees that the company employs.

Smaller businesses often have a more difficult time in paying for construction liability insurance, which is why finding the best deals can be essential.  The best way to get a discount on your liability policy is to use the same insurance company for each of the insurance policies that you hold.  Often, companies will offer a discount for each policy that you bundle.  Another important factor in getting the best deal is to make sure you are dealing with an honest insurance agent.  Some agents are only looking out for themselves and will sell you any policy, whether you need it or not, just so they can make money.  However, not all agents are like this and many will actually help you determine what coverage you do need and what you do not need.  So before choosing a company or working with one single agent, be sure to perform a quick judge of character before signing any paperwork.  You should also be sure to do your own research before discussing policies with an agent, just to make sure the agent is not being deceptive.

Another option is to use the internet to research small business contractor insurance policy quotes.  Doing research, in general, is always a good idea anyway.  However, these days you can actually get multiple quotes from multiple insurance companies before you ever talk to anyone, as well as overall suggestions for the policies you may or may not need. This can really help you compare and save when it comes to business insurance policies.  The downside is that you will need to determine what you need and do not need on your own.  But if you are not quite ready to search and save on your own, you can also enlist the help of an insurance broker.  These people do not work for insurance companies.  Instead, they work for you to help you get the coverage you need and nothing more.  These insurance specialists are typically professionally licensed themselves and can usually steer you in the right direction without being biased.  The downside is that premiums are usually a little higher when purchasing through a broker.  However, you may rest more comfortably knowing that a professional in the insurance industry is looking out for your best interests.

When seeking out insurance companies, you may quickly be overwhelmed by all of the options.  My favorite way of picking out the good, the average, and the terrible companies is through word of mouth reviews and experiences.  The best way to get a sense of how good an insurance company is, is to ask some fellow contractors about their policies and the companies they use.  Ask for the good experiences as well as the bad and you can make some decisions from there.  Another great source is the Better Business Bureau, which grades companies based on performance, complaints and resolutions.  A quick search on the BBB’s website for the insurance companies you are contemplating to use will give you a general status of their business practices and an overall letter grade between A+ and F, with A+ being the best rating.

Even after doing a lot of research about contractor liability insurance coverage, everything can still be rather confusing.  If you still have doubts about requirements or how to get an affordable policy, you can also check with your state’s contractor license board to get more information.  Even if your state does not require the purchase of insurance, it is still a good idea to obtain a policy anyway to protect yourself and your small business.  You will certainly be happy that you incurred the monthly or yearly expense of a liability policy the next time something unexpected happens during a project.

Most smart contractors and service business owners know that pursuing construction sales leads is crucial to success, but in general they tend to lean towards more traditional strategies that have been used for decades.  Sure, cold-calling, flyers, mailers, and networking groups have their place, and should be part of a larger marketing plan.  But far too many contractors dismiss online-based job leads as a viable complement to their real world strategies.  The reasons for this are many, but none of them hold water.

To be blunt, there are two reasons why fellow contractors or service professionals might try to tell you that chasing internet leads is a waste of time.  Reason one is that they are ignorant and clueless.  Reason two is that they know full well just how powerful online marketing is and don’t want to create any more competition for themselves in their local market.  While the first reason is inexcusable, the second is more understandable.  After all, what sane entrepreneur would willingly share the secrets of customer acquisition that he has discovered with his local competitors?

There are many methods for generating construction sales leads online, but some are more effective than others.

Consider yourself fortunate, however, because I’m going to reveal a few secrets right now.  I’m going to give you some, but not all of my strategies, just in case you happen to be one of my local competitors.  I have to keep a few tricks up my sleeve in order to maintain my competitive edge.  Hopefully you all can understand that.

I should start by saying that generating construction sales leads online could very well catapult your business to a whole new level, so you need to be ready for the increase in the volume of work.  If you’re not prepared then you could quickly get buried by estimate requests and new projects.  Best to start slow and work your way up as your equipment, systems, and personnel adjust.  Ready for the challenge?  Alright then, let’s get on with it.  Here are some tips to start scoring online contractor leads on the cheap:

Tip #1:  Create a blog and start writing.  I see you rolling your eyes but if you ignore this one then your are a straight-up fool.  Building online content that is tailored to your local audience is just smart business because it gets you in front of the millions of people who no longer use their phone book and who need to Google every single problem and question that they encounter.  If starting a site scares you or you can’t write to save your life then hire somebody to do it for you.  The investment will pay off a hundred fold over the long run.  Example: A homeowner in your city (let’s say Dallas) has a clogged drain and doesn’t know what to do.  He goes to Google and searches “plumbing help Dallas”.  The first result shows a blog post (written by you) titled “Helpful Tips For Dallas Plumbing Issues”, in which you laid out a few suggestions for DIY enthusiasts whose particular plumbing issues are geo-specific (due to the city water content, the extreme temperature swings, or what have you).  Keep in mind that most people who think they can take on a project on their own end up calling a professional because they don’t have the tools, time, or skills to finish things up.  So take a big guess which local plumber they’re going to call when it’s time for help.  They’re going to call you, of course (the net savvy pro who must be qualified because he has his own fancy blog and website).  Check out my comprehensive series on how to start a blog that will blow the doors off your business.

Tip #2:  Learn as much as you can about ethical, white hat search engine optimization and apply this knowledge to your blog and/or website.  This relates to secret #1 but is the extra component that can really take your blog and brand to the next level.  This topic deserves several dedicated posts, but for now I’ll give you a few tips to get started.

• The title tag of your blog should include your service and city name.  “Kitchen Remodeling in Miami, FL” is a good example.  This should be an accurate representation of what you do and where you work.  It’s a helpful piece of information that will not only pull in search traffic but will signal to the search engines that your site is relevant.

• Each post and page should have at least 500 words of quality content, and should be as relevant as possible in terms of the services you offer and the city or state you live in.  The more useful information you can provide the more favorably you’ll be viewed by the search engines.  The more posts the better.  The more frequent your posts the better.  The search engines like big sites that are updated frequently with great information.  In simple terms, show your blog some love and Google will probably love your site.  This tends to result in higher rankings, greater traffic, and more business.

• Your blog’s domain name (URL) should include your main service and city name.  An example of a good domain name would be ChicagoRoofingPros.com.  An example of a poorly chosen domain name would be JackTheShingleHopper.com.  Jack might be the most experienced roofer in the Windy City but if the words “Chicago” and “roof” are not in his domain name then he is making it harder for the engines to know what his blog about, which makes it harder to get a high natural ranking.

Tip #3:  Collect potential customers’ email addresses through a box on your blog or website.  Think most people are afraid to give up their email to complete strangers?  Think again.  If given the right incentive, many people will happily join your email marketing list.  Offer them $25 off their first service in exchange for their email and phone number.  In no time you’ll have a huge list that you can go back to again and again whenever sales are slow or you’re running a new promotion.

Tip #4: Expand your presence on the internet with viral marketing and social networking.  This could be as simple as creating funny YouTube videos about your company.  Or it could mean that you devote 15 minutes each day updating your company’s Facebook and Twitter accounts with fresh information and enticing promotions.  Widen your net on as many different platforms as possible and once in awhile you will catch a monster fish.  Even if these tactics only gain you one extra kitchen remodel per month isn’t that time well spent?  The best part is that these are free construction leads, and only put a small ding on your time.

Tip #5:  Utilize Google AdWords.  We’ve used this program for years and it is one of the biggest drivers of new business for our company.  Ignore it at your own peril.  Some contractors are afraid of the pay-per-click system, but I have no idea why because Google has this stuff down to a science and if done correctly it can be one of the most cost-effective methods for pulling in serious leads day after day after day.  If it makes you nervous for some reason then put a daily cap on your spend and slowly work up from there as the effectiveness of the system reveals itself to you.  Perhaps the coolest element of the system is that you can create multiple ads to run in your campaign.  This is useful because Google tracks which ads perform better from a click-through perspective, and you can use this data to further sculpt your ad copy and promotional materials.

In addition to trying out these tactics, you should also consider a few internet-based contractor lead services.  This will result in more expensive leads than the ones you can generate on your own with the above methods, but it will likely save you some time.  If you decide to go this route I recommend picking out three or four reputable services to test out in the beginning.  Start with a small budget for each one and keep meticulous notes on how things progress and  which one or two companies give you the biggest bang for your buck.  Make a spreadsheet and track things like average cost per lead, average leads per week, average conversion rate per lead, etc.  You should quickly figure which services are worthwhile and which ones are a complete waste of time.  Testing is imperative because lead services that work well for one industry may not be the best option for other ones.

That should be enough information to get you going.  The importance of construction sales leads cannot be overstated because it is one of those few factors that can literally turn a struggling small business into a market-dominating monster in a relatively short amount of time.  Aggressively pursuing new customers is the hallmark of a successful business, and I encourage you to educate yourself as much as possible on the subject of job leads going forward.

As you’re starting up your contracting or service business one of the first things you’ll need to purchase are construction business cards.  If this comes as a surprise to you then you probably need to back up a few steps and reflect on how big of a role professionalism plays in your ability to get work and move your business forward.  If you don’t even have a business card to hand out to prospective customers then I can almost guarantee that most of them will cross your name off their list without thinking twice about it.  This goes back to putting your best foot forward and working on your image.  If you’re not willing to spend the piddly amount that is required to buy a box of cards then you can probably forget about ever having a successful business.

What Your Construction Business Card Shouldn’t Look Like

I don’t mean to suggest, however, that simply having business cards will make a good impression on people.  In fact, I’ve seen some cards that were of such poor quality that they actually reflected negatively on the company’s image.  I can think of one gentleman in particular who was operating a construction-related business and wanted to earn my trust.  He said “Let me give you my card”, then removed from his back pocket a small, rough-edged square that had clearly been cut out from an old cardboard moving box.  Written on his “card” (with a magic marker) were his name and phone number.  It was the most pathetic excuse for a business card I had ever seen.  I’m sure this fellow was simply down on his luck and didn’t feel like he could afford to spend anything on marketing materials but, my goodness, I can’t begin to imagine how much business this guy was losing because he was too cheap to drop just a little money on some decent, printed business cards.  Now I’m all for cutting costs smartly but if your idea for getting free construction business cards involves an old U-Haul moving box and a box cutter then you seriously need to rethink your marketing strategy.

A black background can occasionally be effective for construction business cards, but my personal preference is a white background as it makes the text easier to read.

Here’s another example of what not to do.  I recently traded cards with a local lawn maintenance business operator and had to bite my tongue to keep from laughing because his was a complete joke.  To his credit, the cards had obviously been made by a printing company and were printed on standard white stock (as opposed to a cardboard box), but the graphics and text were totally absurd.  The graphic was of a plain stick-figure just standing there and waving.  It looked like something that a preschooler would draw on a rainy afternoon.  Can someone tell me what that has to do with landscaping or mowing?  At the very least, could he not have found an image of a stick figure that was actually mowing a lawn?  The text was even worse, if that’s even possible.  It was simply his name, phone number, and a brief list of what services he provides.  Let’s just start with the fact that there were at least two misspellings on the card.  Yes, you read that right.  Secondly, there was absolutely no mention of what his qualifications were or if he was even insured.  Finally, he chose a font that was so silly that it really did look like his little kid designed the card for him.  The card as a whole was a complete disaster and I felt bad for him that he was handing it out to prospective customers and thinking that it was actually helping him to grow his business.

How To Design Contractor Business Cards For Maximum Impact

So now that I’ve mercilessly trashed a few of my fellow local contractors you’re waiting for me to get around to actually telling you how business cards for construction should look, right?  Well, let’s start with the graphic (and, yes, I do think it’s a good idea to have one).  Keep it to less than half the size of the card face.  It should be either a high-resolution replication of your business logo (you do have one of these, right?) or an image of a project that you worked on that turned out particularly well.  A before and after photo on the back side couldn’t hurt, either.  If neither of these is a possibility then just leave it blank.  Blank is better than a corny cartoon graphic or, worse yet, a darn stick figure.

Make sure the text is spaced out well and easy to read (white background is best), and choose a font that looks professional and neat.  Skip the bubble font, okay?  Your card should have your name and title, your company’s name, address, and phone number, your cell phone number and personal or business email, and your company’s website address.  It should also tell people what you do and what your qualifications are.  Finally, it should spell out for nervous nellies that you are fully licensed and insured.  If there’s room put any awards on there that you might have earned from Angie’s List or the like.  That’s it!  Try to keep descriptions short and to the point.  You want enough information on the card that it is a helpful resource for potential clients but you don’t want so much that it looks like a darn dictionary.  Remember that a lot of the people that hire you will be older and may have trouble reading very small print.  The bottom line is trust.  Look at your card honestly and ask yourself how it looks to complete strangers.  If it looks like crap then start over.  There’s no shame in admitting that you made a mistake and need to correct it.

Opt For High Quality Materials When Your Contractor Business Card Is Printed

The last piece of this puzzle is the actual card material itself.  When you order your cards they will ask if you want certain upgrades and features.  For the most part you’ll want to say yes down the board.  Extra thick stock?  Say yes.  Glossy face?  Say yes.  Picture on the back?  Say yes.  They may even try to sell you a unique card material like wood, plastic, or metal, and in some cases this makes sense.  For example, if you run a log siding installation company then I think it would be totally appropriate to order wood cards.  True, all these upgrades will cost you a few more bucks but what’s a few bucks when there’s thousands of dollars worth of business on the line?  Do you really want to risk losing a $15,000 roof job because you were so worried about spending an extra five dollars on a business card upgrade?  Think about it, folks.  When you hand someone your card you’re saying that it’s an accurate reflection of who you are and how seriously you take your business.  If your card looks like junk then people will assume your business is junk.  Spend just a little more time and a little more money on those construction business cards and I assure you that they will pay for themselves thousands of times over.