How to Start (and Run) a Construction Company: The Complete Guide

Starting a construction company can be one of the most profitable and rewarding moves for any skilled tradesperson.

Whether you're looking to start a general contracting business, launch an electrical, plumbing, HVAC, or concrete company, or become a full-time handyman, this complete guide will walk you through exactly how to start and run a construction company from the ground up.

With rising demand and low competition for reliable contractors, there has never been a better time to build your own construction business—and do it the right way.

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Owner - Landers Electrical Contracting Inc.

📘 Full Guide: How to Start and Run a Construction Company

📍 Table of Contents

Introduction: Why You Need This Guide to Start a Construction Company

Chapter 1: Why Most Construction Companies Fail (And How to Start a Construction Company That Doesn't)

Chapter 2: How to Legally Start a Construction Company – Business Entity & Setup

Chapter 3: Licenses, Permits, Insurance & Bonding for Starting a Construction Company

Chapter 4: Tools, Equipment, Vehicles & Field Setup for Your Construction Business

Chapter 5: Estimating, Pricing & Profit Margins in a Construction Company

Chapter 6: Marketing & Lead Generation to Grow Your Construction Company

Chapter 7: Sales, Contracts & Payment Systems for Construction Companies

Chapter 8: Job Costing, Accounting, and Cash Flow for a Construction Business

Chapter 9: Hiring & Scaling a Team for Your Construction Company

Chapter 10: Project Management & Operations in a Construction Company

Bonus: One Job Can Pay for Your Entire Investment to Start a Construction Company

Frequently Asked Questions About Starting a Construction Company

🔰 Introduction: Why You Need This Guide to Start a Construction Company

Starting your own construction company is one of the most powerful ways to control your income, time, and future. But most skilled tradespeople never cross the threshold from technician to entrepreneur.

Why? Because the trades teach you how to do the work—not how to run a business.

In this guide, we’ll bridge that gap.

Whether you’re a journeyman electrician wanting to go solo, a concrete finisher tired of working for someone else, or a handyman ready to get licensed and grow, this is your blueprint.

What you’ll get:

• A real-world roadmap—not fluff

• Best practices from multiple trades: electrical, plumbing, HVAC, general contracting, concrete, carpentry, and more

• Systems you can use whether you want to stay solo or scale to 7 figures

I’m Stephan Landers, owner of Landers Electrical Contracting Inc. in Southern California. I have been in the construction industry for over 2 decades and teach others how to build contracting businesses that are profitable, organized, and built to last.

This guide is comprehensive, but it’s not a substitute for mentorship. For those ready to get serious, we offer an 8-hour live intensive webinar limited to just 5 people per session. You can learn more and BOOK A SEAT HERE.

Ready to go from tradesman to business owner? Let’s build.

📉 Chapter 1: Why Most Construction Companies Fail (And How to Start a Construction Company That Doesn’t)

If you're reading this, you're already ahead of 90% of the people who start construction businesses. Most tradespeople jump in with a truck, some tools, and a license—or sometimes not even that. The intention is solid: freedom, more money, and control over their own schedule. But what happens next is a predictable downward spiral for those who aren’t prepared.

Here’s the reality: more than half of all new construction businesses fail within the first five years, and many of those that survive are barely scraping by. Why? Because they make the same foundational mistakes over and over again:

Mistake #1: Pricing Work Too Low

Most contractors price based on what they think customers are willing to pay or what competitors are charging. But unless you know your true costs—labor burden, overhead, materials, and profit—you could be losing money on every job.

A $10,000 job with poor estimating could cost you $11,000 to complete. Do that ten times and you’re out of business.

Mistake #2: Poor Cash Flow Management

Even profitable businesses can fail if they don’t manage cash flow. You might complete a $20,000 remodel, but if you’re waiting 60 days to get paid and payroll is due Friday, you’re in trouble. It’s not about how much you make—it’s about how much stays in the bank.

Mistake #3: No Marketing System

Referrals are great, but they’re unreliable. Many contractors rely entirely on word of mouth and end up with empty schedules or feast-and-famine cycles. A real business has predictable lead flow.

Mistake #4: No Repeatable Systems

Without systems, every project is chaos. You forget parts, you’re constantly answering the same questions, and you're the only person who can put out fires. Systems reduce mistakes, delegate tasks, and give you time back.

Mistake #5: Wearing All the Hats—Forever

Most contractors never hire help or delegate responsibility. They stay stuck in the field, handling every estimate, permit, invoice, customer call, and complaint themselves. That leads to burnout and bottlenecks.

What Makes a Construction Company Succeed?

Here’s what separates the 7-figure firms from the part-time operators:

• Clear business structure (LLC or S-Corp, contracts, insurance)

• Accurate pricing system (job costing + profit margin)

• Lead generation machine (SEO, Google reviews, website, YouTube)

• Operational systems (templates, checklists, workflows)

• Delegation and team-building (starting with one helper or apprentice)

• Owner mindset (working on the business, not just in it)

It doesn’t matter whether you do electrical, HVAC, plumbing, framing, or drywall. These rules apply to every trade.

That’s what this guide—and the accompanying 8-hour webinar—is designed to teach you: not just how to work harder, but how to build smarter.

🏢 Chapter 2: How to Legally Start a Construction Company – Business Entity & Setup

Starting a construction company the right way means laying a strong legal and structural foundation. This isn’t the glamorous part of business—but it’s absolutely essential if you want to operate legally, get insured, open accounts, and get paid without delays.

In this chapter, we’ll walk through how to legally start a construction company in any state, regardless of your trade. While exact paperwork varies by location, the framework below applies across the board.

Step 1: Choose a Legal Business Structure

Your first big decision is choosing a business entity. The most common options for construction company owners are:

Sole Proprietorship

• Easiest to set up—just start working under your name.

• No liability protection: if something goes wrong, your personal assets are at risk.

• Harder to get commercial insurance and financing.

Limited Liability Company (LLC)

• Offers liability protection by separating personal and business assets.

• Easy to set up with your Secretary of State.

• Most flexible for solo contractors and partnerships.

• Can choose to be taxed as a sole prop, partnership, or S-Corp.

S-Corporation (S-Corp)

• Tax benefits: you can pay yourself a salary and take profit distributions to reduce self-employment taxes.

• Better for construction companies expecting $80K+/yr in profit.

• Requires more paperwork, payroll setup, and tax filings.

✅ Pro Tip: If you’re just getting started, start with an LLC. You can elect S-Corp taxation later once you’re profitable.

Step 2: Register with Your State and Get an EIN

After choosing your entity, you’ll need to:

• File your business with the Secretary of State (you can do this online in most states).

• Get an Employer Identification Number (EIN) from the IRS—it’s like a Social Security Number for your business.

• Register with your state’s Department of Revenue for sales and use tax (if applicable).

These steps allow you to:

• Hire employees legally

• Open business bank accounts

• File taxes correctly

Visit the

Step 3: Choose a Business Name (That You Can Actually Use)

Pick a name that’s:

• Not already in use in your state

• Available as a .com domain

• Simple, trade-relevant, and easy to spell

Check:

• Your state’s business name database

• GoDaddy or Google Domains for the URL

Avoid names like “Top Dog Construction 2025 LLC.” Keep it clean, timeless, and brandable.

Step 4: Set Up Your Business Bank Accounts

You should never mix personal and business finances. Open:

• A business checking account

• A business credit or debit card

• Set up QuickBooks Online or similar accounting software

This keeps your books clean and makes tax time easier—and more defensible if you’re ever audited.

Step 5: Set Up Your Online Presence

Even at day one, you should:

• Buy your domain name (e.g., smithplumbing.com)

• Create a basic Squarespace website or Google Business Profile

• Get a branded email (like info@smithplumbing.com)

This adds instant legitimacy. When clients look you up, you want them to find something real—not your personal Facebook profile.

Step 6: Understand Local Licensing Requirements

While Chapter 3 goes deeper into licensing, you should research this early. Some states allow you to form a business before you’re licensed; others require passing trade and business exams first.

Search “[your state] contractor license board” to get started.

🛠️ If you don’t meet licensing requirements yet, you can still build the business shell (LLC, EIN, name, bank, brand) and take the next steps while you prepare for exams. Visit the Small Business Administration’s website for more information.

🧾 Chapter 3: Licenses, Permits, Insurance & Bonding for Starting a Construction Company

To legally operate a construction company, you’ll need more than just a logo and a truck. Most states require a professional license, permits for specific types of work, contractor bonding, and general liability insurance. Skipping any of these steps can delay your projects, invalidate contracts, or leave you exposed to lawsuits.

This chapter breaks down everything you need to know about licensing, permitting, bonding, and insurance when you start a construction company—whether you’re working in electrical, plumbing, HVAC, general contracting, concrete, or carpentry.

Step 1: Understand Your State’s Contractor Licensing Requirements

Each state has different rules for licensing contractors. Some require you to take a trade exam, others require business law or safety exams, and nearly all require proof of experience.

Here’s how to start:

• Visit your state’s Contractor License Board website (e.g., CSLB in California, TDLR in Texas).

• Look up license classifications by trade (Class B for general contracting, C-10 for electrical, etc.).

• Check requirements for years of experience, background checks, fingerprinting, and fees.

✅ Pro Tip: Even if your state allows unlicensed handyman work under a certain dollar amount, you’ll earn far more—and build more trust—when licensed.

Many licenses also require a Qualifying Individual (QI), meaning someone who has taken the test and represents the company. If you don’t yet qualify, you can:

• Work under another contractor as an employee until you qualify.

• Partner with someone who holds the license.

• Use your business time to prepare and pass the test yourself.

Step 2: Pulling Permits – When You Need Them and Why It Matters

Permits are issued by local cities or counties and are required for most structural, electrical, plumbing, and mechanical work. Failure to pull a permit can result in fines, stop work orders, and problems with inspections.

You’ll typically need permits for:

• New construction

• Service panel upgrades

• Electrical rewires

• Plumbing repipes

• Water heater and HVAC replacement

• Any structural framing or foundation work

Start by contacting your city’s Building Department or checking their website. Some cities now offer online permit portals.

Why permits matter:

• You stay compliant with local building codes

• Your work gets inspected (and signed off)

• You protect yourself legally if something goes wrong later

💡 If you plan to build a reputation as a high-quality contractor, never skip permits. Customers notice, inspectors respect it, and your reputation grows.

Step 3: Contractor Bonding – What It Is and Why It’s Required

A contractor bond is a type of financial guarantee that protects your clients. If you violate your contract, perform poor work, or fail to complete a job, the bond can pay out damages.

Most states require:

• A $10,000–$25,000 contractor bond to get licensed

• Ongoing bond coverage to maintain your license

You can buy a bond from a surety company or your insurance agent. Rates range from $100–$1,000/year depending on your credit and business history.

🔒 Many clients will ask for proof of bonding before awarding a job. It’s an essential trust builder.

Step 4: General Liability Insurance for Contractors

This protects you from lawsuits and claims that arise from:

• Property damage (e.g., a burst pipe floods a room)

• Bodily injury (e.g., a customer trips over your tools)

• Accidents involving subcontractors

Policies should include:

• $1M per occurrence / $2M aggregate minimum coverage

• Products/completed operations coverage

• Certificate of insurance (COI) you can give clients

At Landers Electrical Contracting Inc., our policy also sets limits on what voltage we can legally work on (up to 480V). You must understand the scope of your own policy—don’t assume it covers everything your license does.

Premiums vary based on your trade and claims history but expect to pay $500–$2,500 per year for solid coverage.

Step 5: Workers’ Compensation Insurance

Once you hire employees, most states require workers’ comp insurance. This covers medical expenses and lost wages if someone gets hurt on the job.

Even one helper or apprentice may trigger this requirement. The penalties for not carrying workers’ comp can be severe, including:

• Daily fines

• License suspension

• Lawsuits

⚠️ If you’re just starting out and using 1099 subcontractors, make sure they carry their own insurance—or you could still be held liable.

Step 6: Vehicle & Tool Insurance

Your personal auto insurance likely doesn’t cover commercial use. If your truck gets into an accident while hauling tools to a job, you could be denied coverage.

Protect yourself by:

• Getting a commercial auto policy

• Listing your business as the named insured

• Adding inland marine coverage to protect tools in transit or on site

Final Thoughts: Compliance Is Credibility

The contractors who cut corners on licensing, permits, and insurance may save a few bucks in the short term—but they rarely build lasting businesses.

When you’re fully licensed, bonded, and insured:

• You can take on higher-paying work

• You gain trust with clients and inspectors

• You protect your business from worst-case scenarios

That’s how professionals operate—and that’s what this guide (and our webinar) is all about.

🧰 Chapter 4: Tools, Equipment, Vehicles & Field Setup for Your Construction Business

Starting a construction company means more than getting your license—it also means equipping your team (even if it’s just you for now) to do the work efficiently, safely, and professionally. This chapter covers what gear you need, how to buy it smart, and how to organize your field setup so your operation runs like a real business from day one.

Whether you’re in electrical, HVAC, plumbing, carpentry, framing, or general contracting, this guide will help you start a construction company that’s well-equipped to impress customers, meet code, and stay profitable.

Step 1: Buy the Right Tools—But Don’t Overbuy

One of the biggest mistakes new construction business owners make is trying to buy every tool they’ve ever seen in a catalog. Don’t do that. Focus on buying:

• Trade-specific tools (e.g., for electricians: fish tape, multimeter, knockout set)

• Job-essential tools (e.g., power drill, impact driver, levels, saws)

• Safety equipment (hard hats, gloves, glasses, fall protection)

• Startup consumables (screws, blades, caulk, PVC glue)

Start with what you use 80% of the time. You can buy the rest as needed when specific jobs come up.

💡 Buy commercial-grade tools, not homeowner-grade. Look at brands like Milwaukee, Makita, Bosch, or DeWalt—tools you can depend on when money is on the line.

Step 2: Organize a Mobile Setup (Van, Truck, or Trailer)

Every construction company needs a reliable mobile setup that holds tools, materials, and paperwork without falling into chaos. Your options:

Option 1: Cargo Van

• Enclosed, weather-protected

• Good for electricians, plumbers, HVAC techs

• Can be fully racked and shelved

Option 2: Pickup Truck + Toolboxes

• Great for framing, concrete, roofing

• More open and flexible

• Less secure than a van

Option 3: Enclosed Trailer

• Adds hauling capacity to any vehicle

• Fully customizable

• Ideal for multi-trade contractors or growing teams

Regardless of vehicle, you’ll want:

• Lockable storage

• Tool drawers or racks

• Material bins for fast inventory

• Power inverter or generator (for corded tools)

✅ Tip: Label EVERYTHING. A disorganized rig loses time and money daily.

Step 3: Create a Daily Load-Out Checklist

Even the best setups fall apart without routines. Build a daily checklist you and your crew follow before every job:

• 🔲 Ladders secured

• 🔲 Extension cords packed

• 🔲 Permit or inspection documents

• 🔲 Safety gear checked

• 🔲 Specialty tools loaded

Printing this out and sticking it in your windshield or tool chest will prevent dozens of forgotten items a year—and frustrated callbacks.

Step 4: Start with the Right Inventory—Not Too Much, Not Too Little

You don’t need to carry everything. But you also don’t want to be making five trips to the supply house per job.

Start by keeping stocked:

• 1–2 sizes of wire or pipe you use constantly

• A basic fitting kit (couplings, connectors, caps)

• Anchors, screws, tapcons, straps

• Common breakers, valves, or outlets (depending on trade)

📦 Bonus: Use a small tote system for specialty job add-ons (e.g., smart switches, emergency shutoffs, thermostats).

If your jobs are repetitive (like service upgrades), build a job-specific inventory list so you always load exactly what’s needed.

Step 5: Get Your Jobsite Game Tight (From Day One)

How you show up to a jobsite sets the tone with clients, inspectors, and subcontractors. Your first impressions should include:

• Branded shirts or vests (even if it’s just you)

• Printed or digital job folder

• Clear scope of work + estimate

• Required materials on hand (no resupply delays)

• Plan for waste and cleanup

💬 Bonus Tip: Walk the site with the customer before and after. Let them know what to expect, and confirm everything before final billing.

Step 6: Optional—but Powerful Upgrades

As you grow, consider investing in:

• A jobsite tablet with estimate software

• A label printer for panels or fixtures

• GPS tracking on tools and vehicles

• A small jobsite trailer for staging repeat gear

• Magnetic company signs or full vehicle wrap

These boost your image and organization—helping you justify higher pricing and win bigger jobs.

Final Thoughts: Your Setup Reflects Your Standards

The way you organize your truck, tools, and jobsite is a direct reflection of how you run your business. If you want to start a construction company that looks and acts professional, start with the basics:

• Buy smart, stay organized, label everything

• Build routines that reduce mistakes and wasted time

• Show up prepared, on time, and equipped

You’ll impress customers, reduce callbacks, and feel way less stressed on every job.

SERIOUS ABOUT STARTING YOUR BUSINESS?
LIVE 8 Hour Webinar - $899
Hosted By Stephan Landers
Owner - Landers Electrical Contracting Inc.

💵 Chapter 5: Estimating, Pricing & Profit Margins in a Construction Company

If you want to start a construction company that’s profitable—not just busy—you need to know how to price your work. Most contractors underprice their services, guessing at what others charge or what they think the customer will pay. That’s how you stay stuck or go broke.

This chapter walks you through how to price construction jobs the right way—using systems, not guesswork. Whether you’re a plumber, HVAC tech, electrician, general contractor, or handyman, these principles apply across all trades.

Step 1: Understand What It Really Costs to Do the Job

If your hourly rate only covers what you pay yourself, you’re not running a business—you’re a technician taking all the risk without building long-term wealth.

To start a construction company with lasting profit, your price needs to cover:

• Labor burden (wages, payroll taxes, workers comp)

• Materials & markup (including scrap/waste)

• Overhead (truck, phone, software, insurance)

• Net profit (not just what’s left over)

Here’s a basic example:

• You pay your helper $25/hr

• After taxes and comp, that’s $33/hr cost

• You work 8 hours with him on-site = $264

• Add $150 in gas, tools, software = $414

• Add $200 in materials (with 20% markup) = $240

• Target profit (20% of job total): ~$230

Your total invoice needs to be at least $900–$1,000 just to make real money on that day.

🧠 Pricing isn’t just about math—it’s about confidence. When you know your numbers, you never hesitate to charge what you’re worth.

Step 2: Build a Simple Pricing System

You can price jobs by:

• Time & materials (T&M) – used for unknown scopes

• Flat rate per task – great for service jobs

• Unit pricing – useful for repetitive installs (e.g., per square foot, per outlet)

A good contractor knows how to mix all three, depending on job type. For your own company:

• Create a labor rate sheet based on your loaded hourly rate

• Create a markup guide (e.g., 1.2x for materials, 1.5x for subcontractors)

• Develop a pricing menu for repeat tasks (e.g., panel upgrades, water heater installs, rough plumbing)

This helps you:

• Estimate faster

• Be consistent across jobs

• Train someone else to sell in your company later

🗂️ If you plan to scale, you must price work in a way that others can replicate. That’s how real construction companies grow.

Step 3: Know When to Walk Away from Bad Jobs

Not every lead is worth chasing. You’ll waste time and lose money on jobs that:

• Are too far away

• Are below your minimum job size

• Involve difficult customers or unclear scopes

• Come from price-shoppers who only care about being the cheapest

Create a qualification filter:

• Is this client ready to move?

• Are they in my service area?

• Do they know what the project costs?

• Are they asking professional questions?

The best construction companies turn down bad-fit jobs early, so they can focus on profitable ones. Remember: your time is your most valuable asset.

Step 4: Get Paid the Right Way

Once your price is locked in, protect yourself by:

• Sending a digital quote with terms and signature

• Charging a deposit up front (25–50%)

• Billing by milestone or weekly draws for large projects

• Never releasing your final invoice until the punch list is complete

Use tools like:

• QuickBooks Online

• Jobber

• Square Invoices

• PandaDoc for e-signatures

Make it easy for your customer to say yes—and even easier for them to pay you on time.

📲 Bonus Tip: Always include payment terms in writing. Net 7 or Net 14 is ideal. Don’t leave it up to interpretation.

Step 5: Track Your Numbers Job by Job

You’ll never improve your pricing if you don’t know what’s working.

After every job, fill out a basic job costing sheet:

• Estimated labor vs. actual labor hours

• Materials spent vs. materials quoted

• Overhead items (fuel, dump fees, tools bought)

• Final profit margin

Doing this even 10–15 times will show you which services are most profitable—and which you should stop offering.

🧾 At Landers Electric, we tracked every panel upgrade for 12 months. We learned exactly what parts we always forget to include—and added $300 to our flat rate because of it.

Step 6: Price for Growth, Not Just Survival

You are not just selling labor—you are selling:

• Your expertise

• Your tools and risk

• Your insurance

• Your ability to do it right the first time

Contractors who price too low can’t afford to:

• Hire good help

• Pay themselves well

• Market their business

• Take days off

• Replace tools

You want a business that lets you grow, rest, invest, and lead.

The goal is profit, not just survival.

Final Thoughts: Confident Pricing = Professional Business

If you want to start a construction company that earns what it’s worth:

• Know your numbers

• Build a repeatable system

• Track job profitability

• Set minimums and walk away from bad fits

This is what separates the $50/hr side-hustle from the $500K/year firm.

📣 Chapter 6: Marketing & Lead Generation to Grow Your Construction Company

You can be the best builder, plumber, or electrician in your city—but if nobody knows you exist, you won’t stay in business long. That’s why marketing is a non-negotiable if you want to start a construction company that consistently gets leads, books jobs, and grows year after year.

This chapter is your blueprint for building a marketing system that works—even while you sleep. Whether you’re starting from scratch or trying to scale, these strategies will help you attract qualified customers without relying only on referrals.

Step 1: Set Up Your Google Business Profile (GBP)

Your GBP is your online storefront. It’s what shows up when people Google “electrician near me” or “plumber in [your city].” It’s free, and it can bring in $50K+ in leads per year if you set it up correctly.

Here’s what to do:

• Go to google.com/business and claim your listing.

• Add your business name, address (or service area), hours, phone, and website.

• Upload real jobsite photos (before/after, equipment, vans)

• Write a description that includes your main services + service area

• Add 3–5 services using relevant keywords (e.g., "panel upgrade," "HVAC installation")

📍 Google uses your business profile to rank you in local search. The more reviews, photos, and updates you post, the better your visibility.

Step 2: Get 25+ Five-Star Reviews Fast

Your reviews are the new word-of-mouth. People trust online reviews as much as recommendations from friends.

Here’s how to build them:

• Ask every happy customer the moment you finish a job

• Send a direct Google review link via text or email

• Create a QR code you can print on invoices or business cards

💬 Sample script: “Thanks again for the opportunity. If you’re happy with our work, it would mean a lot if you could leave a quick 5-star review here: [insert link]”

Aim for:

• 25+ reviews in your first 90 days

• Ongoing monthly review collection

• Prompt responses to every review (positive or negative)

⭐️ Review velocity matters—Google rewards businesses with steady, recent reviews over time.

Step 3: Build a Simple, Professional Website

Your website doesn’t need to be fancy. It needs to:

• Load fast

• Explain what you do, where you work, and why you’re the best choice

• Make it easy to contact you

Use Squarespace, Wix, or WordPress. Include:

• Clear headline with trade + location (e.g., “San Diego Electrical Contractor”)

• Call-to-action button (“Request Estimate”)

• Embedded Google reviews or testimonial section

• Contact form and clickable phone number

Bonus points:

• Add a gallery of past jobs

• Publish blog posts for SEO (e.g., “How to Install a 200 Amp Panel in California”)

• Embed your YouTube videos if you have them

🔧 Your website is your digital business card. Make sure it earns you jobs, not just visits.

Step 4: Set Up a Local SEO Blog (Even If You Hate Writing)

Blogging helps you rank on Google for the keywords customers actually search.

Great topics include:

• “Cost to Rewire a House in [City]”

• “Signs Your Water Heater Is About to Fail”

• “Best Electrical Panels for 2025”

• “How to Get a Building Permit in [City]”

Use these posts to:

• Build trust

• Show your expertise

• Rank for long-tail search terms

• Increase time on site (which boosts SEO)

Don’t want to write? Use AI (like ChatGPT) to draft articles, then edit them with your real-world experience.

📈 Most contractors skip this step—which is exactly why doing it will set you apart.

Step 5: Use Social Media—But Use It Smart

You don’t need to dance on TikTok to market your construction business. Use social the way real tradespeople use tools: with purpose.

Start with Instagram and Facebook:

• Post photos of before/after jobs

• Share stories of satisfied customers

• Answer FAQs in video form (“What size panel do I need?”)

• Tag your location and services

YouTube (if you’re comfortable on camera):

• Film job walkthroughs

• Share tips and code breakdowns

• Document big projects start-to-finish

Social builds brand trust—even if it doesn’t generate leads immediately.

🔄 Repost content across platforms. One video can be used on Facebook, IG Reels, YouTube Shorts, and TikTok.

Step 6: Run Paid Ads (Only When Your Organic Is Strong)

Once your Google profile, website, and reviews are dialed in, consider:

• Google Local Services Ads (LSAs)

• Facebook lead ads

• Google search ads for specific services (e.g., “mini split install near me”)

Start small. Track results. Only scale ads that produce a positive ROI.

Never run ads if:

• Your Google Business profile has <10 reviews

• Your website isn’t converting

• You don’t answer your phone reliably

💸 Marketing with a weak foundation burns money. Build organic first.

Step 7: Track Your Leads Like a Pro

You can’t improve what you don’t measure.

Use a simple CRM (Customer Relationship Management) tool—or a spreadsheet—to log:

• Lead source

• Contact info

• Service requested

• Quote sent

• Outcome (won/lost)

This helps you:

• Double down on what’s working

• Follow up with old quotes

• Stop wasting time on low-quality leads

🧰 Tools like Jobber, ServiceTitan, or even Google Sheets can work for this.

Final Thoughts: Marketing Is Your #1 Growth Lever

When you start a construction company, your job is no longer just to do the work—it’s to get the work.

Dial in your Google presence. Build your reviews. Share your wins. And always keep learning what works for your trade and your market.

That’s how you go from unknown to unstoppable.

🧾 Chapter 7: Sales, Contracts & Payment Systems for Construction Companies

Once your marketing is working and the leads are coming in, the next step is closing those leads—professionally and profitably. This chapter shows you how to create a simple, scalable sales system that turns leads into jobs, avoids miscommunication, and ensures you get paid every time.

Whether you’re closing $500 service calls or $50,000 remodels, your ability to sell and document work clearly is what separates the amateurs from the pros.

Step 1: Build a Simple Sales Process

You don’t need a full-time salesperson—but you do need a repeatable process. A good sales workflow looks like this:

1. Inbound lead received (phone, website, referral)

2. Initial call or text qualification

3. In-person estimate (if needed)

4. Send formal proposal with scope, price, timeline

5. Follow up within 24–48 hours

6. Get a signed agreement + deposit

🧠 The key is consistency. Every customer gets the same clear steps, which builds trust and reduces confusion.

Step 2: Qualify Every Lead

Not every lead is a good one. Before you drive 45 minutes across town to look at a $200 job, qualify your prospect:

Ask:

• What service are they looking for?

• When are they hoping to get it done?

• Have they worked with a contractor before?

• What budget are they expecting?

Red flags:

• “Just looking for the cheapest quote”

• “My last contractor ghosted me—again”

• “I can buy the materials, you just supply the labor”

Green flags:

• They ask smart questions

• They respect your time

• They seem more interested in results than discounts

🚦 A 10-minute call can save you 2 hours of driving and frustration.

Step 3: Write a Clear, Professional Estimate

Every estimate you send should include:

• Company name, license #, and contact info

• Client name and property address

• Detailed scope of work

• Timeline (start date, estimated duration)

• Total cost, deposit due, and payment milestones

• Terms & conditions (warranty, change order policy, etc.)

Use estimating software like:

• Jobber

• Housecall Pro

• Joist

• QuickBooks Online + PandaDoc

Send all quotes digitally and require e-signatures.

📑 Bonus: Include photos or diagrams when applicable. Visuals reduce misunderstandings and boost close rates.

Step 4: Use Contracts—Even on Small Jobs

Verbal agreements will get you burned. Every job should have a written contract—even if it’s a $500 panel swap.

Benefits:

• Prevents “he said, she said” issues

• Clarifies what's included—and what's not

• Protects both you and your client legally

A simple one-page contract can:

• Be reused over and over

• Be edited for each job

• Include space for scope, payment terms, and signatures

🛡️ We give you a customizable contract template in our 8-hour live webinar.

Step 5: Take Deposits Every Time

Never start a job without a deposit. It covers upfront costs, secures the job in your schedule, and shows the client is serious.

Typical structure:

• 50% deposit on jobs under $2,500

• 30–40% deposit on larger projects

• Additional payments at milestones (e.g., rough-in complete, finish installed)

Make deposit terms crystal clear in writing.

Use tools like:

• Square

• QuickBooks

• Zelle

• Paper check (if you must, but digital is easier to track)

💰 Tip: Never let your accounts receivable (A/R) get out of control. You’re a contractor—not a bank.

Step 6: Set Up a Reliable Payment System

Accept multiple forms of payment, including:

• ACH bank transfer

• Credit/debit card

• Zelle/Venmo (for smaller service work)

Avoid:

• Cash (no paper trail)

• Barter (unless strategic)

• Net 30+ terms without a contract and late fees

Get paid faster with:

• Emailed invoices

• Click-to-pay links

• Due dates on every bill

If you want to start a construction company that lasts, cash flow is king.

Step 7: Handle Change Orders Like a Pro

Every contractor runs into customers who say:

• “While you’re here, can you just add…”

• “Let’s go ahead and move that too.”

That’s fine—as long as you document it.

Change order system:

1. Pause work

2. Write a short scope + price

3. Get a signature before proceeding

This avoids:

• Scope creep

• Payment disputes

• Unbilled hours eating your margin

🔁 Track change orders in your job folder and update the project total accordingly.

Final Thoughts: Sales Isn’t Sleazy—It’s Service

Most tradespeople feel weird about selling. But sales is simply:

• Listening well

• Offering solutions

• Communicating clearly

• Following up professionally

When you combine great marketing with great sales systems, you’ll never be short on work—and you’ll close more of the jobs you actually want.

📊 Chapter 8: Job Costing, Accounting, and Cash Flow for a Construction Business

One of the fastest ways to kill a construction company is to ignore the numbers. You can have leads rolling in, crews in the field, and a calendar full of jobs—and still lose money. This chapter will teach you how to build the financial foundation your business needs to stay healthy, profitable, and scalable.

Whether you're a solo electrician or a multi-crew general contractor, understanding job costing, accounting, and cash flow is the difference between owning a business… and being owned by one.

Step 1: Learn the Language of Construction Finance

You don’t have to be an accountant—but you do need to understand these five concepts:

• Revenue: All the money that comes in.

• COGS (Cost of Goods Sold): Direct labor, materials, and subs tied to each job.

• Gross Profit: Revenue minus COGS.

• Overhead: Ongoing costs like insurance, gas, office supplies, admin tools.

• Net Profit: What’s left after paying for everything.

📌 If you're doing $500K in revenue but only keeping $50K, you don't have a sales problem—you have a margin problem.

Step 2: Use a Job Costing System

Job costing means tracking exactly how much each project costs—and how much it earns.

Set up a system that captures:

• Estimated labor hours vs. actual

• Material quotes vs. receipts

• Subcontractor bids vs. invoices

• Profit per job

Use tools like:

• QuickBooks Projects

• Jobber (for service jobs)

• Google Sheets (if you're just starting out)

After every job, ask:

• Did I make or lose money?

• If I lost money, why?

• Was it labor, materials, time, or underpricing?

🔍 Most construction companies don’t track job performance—and bleed out $10K+ per year without realizing it.

Step 3: Set Up a Real Bookkeeping System

You need to know where your money is going.

Options:

• DIY with QuickBooks Online (link bank accounts and credit cards)

• Hire a part-time bookkeeper (even 2–4 hours/month helps)

• Use a construction-specific CPA if you’re earning over $250K/year

Track:

• Income and expense by job

• Labor costs and tax liabilities

• Equipment purchases (for depreciation)

• Owner draws vs. business expenses

🧮 Don’t use your personal account. Get a business checking and keep everything separate.

Step 4: Use Cash Flow Forecasting

Cash flow is about timing: when you get paid vs. when you pay others. Even profitable businesses die from poor cash flow.

Common pitfalls:

• Front-loading labor and materials before the first draw

• Clients delaying final payment

• Running payroll before collecting on invoices

Your fix:

• Always collect a deposit

• Bill regularly on large jobs

• Keep a rolling 30-day cash flow projection

• Know what’s due IN vs. what’s due OUT

Tools:

• QuickBooks Online cash flow tool

• FloatApp or Pulse

• Manual spreadsheet with upcoming AR & AP

💡 Cash is like oxygen—don’t run out.

Step 5: Budget Your Overhead and Know Your Breakeven

Overhead includes:

• Your truck lease

• Insurance policies

• Tools and tool replacement

• Phone and software

• Business meals, fuel, office rent

Your breakeven point is how much revenue you must earn each month to cover all these costs. Knowing this helps you:

• Set smart sales goals

• Decide when to hire

• Know when it’s time to raise prices

Example:

• Monthly overhead: $6,000

• Target gross margin: 40%

• Required monthly revenue: $15,000 just to break even

📊 Use breakeven math to work backward from your income goals. Want to net $150K? You’ll need to earn more than double that in top-line revenue.

Step 6: Prepare for Taxes—All Year Long

If you wait until April to think about taxes, you’ve already lost.

What to do:

• Set aside 25–30% of every payment into a tax savings account

• Pay quarterly estimated taxes (required by IRS if profitable)

• Track mileage, materials, tools, meals, and home office deductions

Use tools like:

• QuickBooks Self-Employed or Online

• Keeper Tax (for tracking write-offs)

• Mileage IQ

🚨 Missing your quarterly taxes can result in penalties. Set calendar reminders or get a tax pro.

Final Thoughts: Numbers Are Your Navigational System

Most contractors fly blind financially. They don’t know where they’re making money—or where they’re bleeding it.

But the ones who succeed long-term?

• Know their numbers

• Adjust based on job reports

• Plan cash flow 30–90 days out

If you want to start a construction company that grows and lasts, you need more than hustle. You need to master your money.

SERIOUS ABOUT STARTING YOUR BUSINESS?
LIVE 8 Hour Webinar - $899
Hosted By Stephan Landers
Owner - Landers Electrical Contracting Inc.

👷‍♂️ Chapter 9: Hiring & Scaling a Team for Your Construction Company

If you want to grow beyond being a one-man show, you need to build a team. That doesn’t mean hiring a huge crew right away—it means learning how to bring on the right people, train them effectively, and build systems that allow you to scale without burning out.

Whether you're hiring your first apprentice or adding your fifth field crew, this chapter outlines exactly how to hire, train, and manage employees in your construction company.

Step 1: Know When to Hire (and When to Wait)

Before you start hiring, ask yourself:

• Are you booked out consistently?

• Are you turning down good jobs due to lack of bandwidth?

• Are you doing $100/hour tasks that a $25/hour helper could do?

Hiring before you're ready can tank your cash flow. Hiring too late can lead to burnout. Aim to hire when your calendar is consistently full and you can afford to pay a helper even if a job cancels.

Step 2: Start With a Helper or Apprentice

Your first hire should not be a journeyman making top dollar—it should be someone who can:

• Load the truck

• Clean up the jobsite

• Hand you tools

• Learn your systems

Pay them hourly with clear expectations. Think of this person as your multiplier: they increase your productivity and give you time back to run the business.

📈 Most contractors double their jobsite speed by simply having a competent helper.

Step 3: Document Your Systems Early

Before you bring on more people, create basic documentation for how you do things. This can include:

• Jobsite setup checklist

• Materials ordering protocol

• Labeling and storage system in your van or trailer

• Customer communication scripts

• Photo documentation process

Use Google Docs or printed checklists. The goal is to make your business less dependent on YOU.

Step 4: Build a Simple Hiring Funnel

You don’t need to put out a giant Indeed ad. Start by:

• Asking around in local trade schools

• Posting on Facebook and Nextdoor

• Asking your vendors (supply houses often know who’s looking)

When you find a candidate:

• Interview them in person

• Ask them to show up on a job for a trial day (paid)

• Evaluate attitude more than skill—skills can be taught

🚧 Avoid red flags: late arrivals, phone scrolling, bad-mouthing past employers, etc.

Step 5: Train With Intent (Not Just Repetition)

Don’t just throw someone into the field and hope they pick it up. Build a 2–4 week training path:

• Week 1: Tool names, van layout, basic safety

• Week 2: Task support, materials list building, demo work

• Week 3–4: Supervised simple installs (outlets, pipe runs, assembly)

Use real job photos to teach. Make it visual and hands-on.

🧰 The better you train, the more time you get back—and the less you re-do mistakes.

Step 6: Set Clear Roles and Growth Paths

Your team should know:

• What their daily responsibilities are

• Who they report to

• What "winning" looks like on the job

• How they can earn raises or take on more responsibility

Create roles like:

• Helper

• Lead installer

• Foreman

• Estimator/project manager

Set KPIs (key performance indicators) like:

• On-time arrivals

• Jobsite cleanliness

• Customer satisfaction

• Materials correctly staged

📊 Reward consistency, not just speed. Your best employee is usually the most dependable one.

Step 7: Delegate Without Abdicating

Delegation doesn't mean dumping your problems on someone else. It means:

• Setting clear expectations

• Giving them tools to succeed

• Checking in with job walks, photos, and reviews

Use tools like:

• Google Drive for shared docs

• Slack or GroupMe for team comms

• Company calendar for scheduling

Always inspect what you expect.

Step 8: Build a Company Culture (Even If It’s Just You + One Guy)

Culture matters. People don’t just want a paycheck—they want to feel part of something.

Create a culture where:

• People show up on time

• Jobs are done with pride

• Everyone communicates clearly

• Wins are shared and mistakes are used for training

This starts with you. The way you talk, act, and show up sets the tone.

🛠️ You can’t build a $1M company with a $10/hour mindset. Lead like a business owner.

Final Thoughts: Build the Team You’d Want to Work For

Scaling a construction company doesn’t mean hiring dozens of people. It means building a small, tight crew that you can rely on—and who can help grow your reputation.

Hire slow. Train well. Lead by example.

🏗️ Chapter 10: Project Management & Operations in a Construction Company

Running a construction company isn't just about winning jobs—it's about delivering them efficiently, profitably, and with as few headaches as possible. Great operations and project management are what separate stressed-out contractors from the ones who seem to have everything dialed in.

Whether you're managing small service calls or multi-week builds, this chapter outlines how to run field operations like a pro.

Step 1: Know What Project Management Means for a Small Construction Company

You don’t need a formal project manager to run good ops—you just need clear systems and a reliable workflow.

Project management in construction means:

• Planning the job before you step on-site

• Scheduling labor, materials, inspections

• Communicating with the customer clearly

• Staying ahead of problems

✅ Every day your crew doesn't have a clear plan is a day you lose money.

Step 2: Create a Pre-Job Checklist

Before any job starts, answer these questions:

• Do we have a signed contract and deposit?

• Do we have permits, if needed?

• Is all material ordered or in stock?

• Do we have a staging area for tools?

• Is the customer prepped and aware of timeline?

Create a template checklist you use for every job—big or small.

Tools: Google Docs, Jobber, Notion, paper clipboard. Doesn’t matter. What matters is that it’s done every time.

Step 3: Build a Realistic Job Schedule

Use a job calendar to track:

• Crew assignments

• Equipment delivery

• Subcontractor timelines

• Inspection appointments

Keep it simple:

• Use Google Calendar, or

• A whiteboard in your shop/van

Always buffer your timelines. Something will get delayed—account for it up front.

🕒 "Underpromise, overdeliver" works better than rushing to please and blowing the deadline.

Step 4: Use Job Folders (Digital or Physical)

Every job should have a folder with:

• Signed contract

• Scope of work

• Jobsite photos

• Material invoices

• Customer notes

• Change orders

Digital folder tools:

• Google Drive

• Dropbox

• Company server

📁 Bonus: Use job folders as training tools for new hires.

Step 5: Build In Daily Jobsite Communication

Clear daily communication prevents 90% of your future problems.

Have a 10-minute check-in every morning:

• What are we doing today?

• What are the risks or roadblocks?

• What materials or tools are missing?

If you're not on-site, call your lead. Ask for:

• 3 progress photos

• A punch list update

• Any customer feedback

🔄 Daily touchpoints eliminate job drift.

Step 6: Manage Change Orders With Zero Confusion

When something changes:

• Stop and write it down

• Explain the change and cost to the client

• Get a signature (digital or in person)

Always update the job total.

This prevents:

• "I thought that was included"

• Free work

• Delays over confusion

🧾 Change orders = paperwork, not just a verbal “yeah, go ahead.”

Step 7: Use Final Walkthroughs to Reduce Callbacks

Before calling the job done:

• Walk the customer through the full project

• Ask if anything looks unfinished

• Take final photos

• Explain your warranty and next steps

Leave behind:

• A thank-you card

• Warranty info

• Your review link

🤝 Great project closeouts create repeat customers—and more referrals.

Step 8: Review Every Job for Lessons Learned

After the job, ask:

• Did we hit or miss our estimated hours?

• What slowed us down?

• What should be added to the scope next time?

• Were materials staged properly?

Use this intel to:

• Improve your estimating

• Adjust your workflow

• Train your team

📊 Every job is a data point. Use it to make the next one smoother.

Final Thoughts: Systems Win, Not Firefighting

If you feel like every job is chaos, it's not because construction is unpredictable—it's because you're winging it.

When you start a construction company with strong operations:

• You know where every project stands

• Your team works more efficiently

• Your customers are impressed

And most importantly—you make more money with less stress.

🎁 Bonus Chapter: One Job Can Pay for Your Entire Investment to Start a Construction Company

If you're on the fence about investing in your business—whether it's for tools, licensing, insurance, or an 8-hour webinar like ours—here’s something you should know:

One solid job can repay that entire investment.

Let’s break it down.

The Real Numbers Behind One Good Job

Say you spend $899 to attend our full-day webinar on how to start and run a construction company. Here's how fast you can earn it back:

• You book a panel upgrade for $2,000 (common for electricians).

• Or a tankless water heater install for $2,800 (plumbers).

• Or a mini split system for $4,000 (HVAC).

• Or a 100 ft fence install for $3,200 (carpenters).

Your profit after materials and labor? Often $1,000 or more, easily.

💡 Most of us in the trades can earn $1,000–$2,000 per day on the right job.

That means one job covers your full investment in starting your business the right way—and leaves you with the knowledge, tools, and systems to repeat that win again and again.

How This Guide (and Our Webinar) Sets You Up for Repeat Wins

What you’ve just read in this guide lays the groundwork. But there’s only so much we can include in a blog post.

When you join our live webinar, you get:

• 💻 Live Q&A with a licensed contractor

• 📈 Real pricing examples

• 🛠️ Field-tested systems you can implement on Monday

• 📞 A 30-minute 1-on-1 follow-up call with Stephan Landers

That’s not just education—that’s actionable traction.

Don't Think of It as a Cost. Think of It as a Multiplier.

The real cost of not investing in your business:

• Mispricing jobs and losing thousands

• Doing work that your insurance doesn’t cover

• Getting undercut by contractors with better systems

• Wasting time chasing bad-fit customers

When you invest once in your structure and systems, you:

• Win better jobs

• Work with better clients

• Grow with confidence

🔁 This isn’t about theory—it’s about building something real that pays you back for years to come.

Final Thoughts: Your First Win Is Waiting

Starting your construction company isn’t easy—but it is simple.

Get your foundation right. Invest in the tools and guidance to do it correctly. Then go out and land the first job that pays for it all.

You’ve got the skill. Now build the business that puts it to work.

→ Ready to go from tradesperson to business owner? Reserve your seat in the Live Webinar now.

❓Frequently Asked Questions About Starting a Construction Company

How much money do I need to start a construction company?

Startup costs vary by trade, but most small construction businesses can get started with $3,000–$15,000. This includes tools, licensing, insurance, and basic marketing like a website and business cards. In the webinar, we break this down by trade with real-world examples.

Do I need a contractor’s license to start a construction company?

Yes — in most states, any project over a certain dollar amount (often $500–$1,000) requires a contractor’s license. Requirements vary by state and trade (general contractor, electrical, plumbing, HVAC, etc.). We’ll show you exactly how to find your state’s licensing board and get legal fast.

Can I start a construction business while working a full-time job?

Yes. Many contractors start part-time—working evenings, weekends, or small jobs—before going full-time. Our webinar covers how to transition from employee to business owner with minimal risk, including how to price weekend jobs to maximize profit.

What’s included in the 8-hour webinar?

You’ll get 8 hours of interactive live teaching (with breaks), Q&A at anytime during the webinar, a replay link, and a 30-minute 1-on-1 follow-up call with Stephan. It’s a step-by-step system built for general contractors, electricians, plumbers, HVAC pros, and other trades.

Is this only for electricians?

Not at all. While it’s hosted by the owner of an electrical contracting company, the strategies in this training apply to all trades, including general contractors, handymen, plumbers, HVAC technicians, framers, and more. You’ll learn how to build a profitable business, no matter the trade.

What if I can’t attend the webinar live?

No problem. All attendees get a full replay link sent to their email within 24 hours. You’ll also receive the option to schedule your 30-minute 1-on-1 call at a time that works for you.

How many spots are available per session?

Only 5 seats per webinar are available to keep it small and personal. This allows for real-time interaction, live Q&A, and a more customized experience for each attendee.

How do I know this will be worth the price?

One solid job—like a panel upgrade, water heater install, or ductless mini-split—can easily pay for the entire webinar. You’ll leave with the tools to land those jobs confidently and profitably. This is an investment in your future.

Where do I sign up?

Click the button below to reserve your seat. You’ll receive a confirmation email and then a Zoom link one week before the event.

SERIOUS ABOUT STARTING YOUR BUSINESS?
LIVE 8 Hour Webinar - $899
Hosted By Stephan Landers
Owner - Landers Electrical Contracting Inc.