Small custom home building company

Private landowners and families building a new home, often on their own lot, a rural property or a rebuild site.

A fixed price contract or a cost-plus fee with a margin on each build. Revenue arrives in stages as the build progresses, so income is lumpy and you must manage cash flow carefully.

• Reading plans and understanding building codes
• Estimating and budgeting
• Managing subcontractors and schedules
• Clear communication with clients

• Many provinces require builders to be licensed or registered and to offer a new home warranty, so check your provincial regulator (for example in Ontario, BC, Alberta and Quebec)
• Startup costs depend on your province: licensing and warranty enrolment fees, insurance premiums, any bonding or security required, plus working capital to cover deposits, permits and early trade payments before stage payments arrive
• Commercial general liability, builder's risk and WCB/WSIB coverage once you hire, with rules varying by province
• Cash flow gaps, cost overruns and weather delays, so use clear written contracts with change-order terms
• Building code, zoning and permit requirements set by your municipality
• Winter slows or stops some work in many regions, so plan your schedule around it
• Holdbacks and lien rules differ by province, so check how they apply to your contracts

Startup costs are typically estimated at around $60,000 to $250,000, depending on your province. That covers licensing and warranty enrolment fees, insurance, any bonding or security required, and working capital for deposits, permits and early trade payments.

Monthly revenue is typically estimated at around $30,000 to $150,000, depending on the homes you build and when stage payments arrive. Cash flow gaps, cost overruns and weather delays can affect results, so use clear written contracts with change-order terms.

Many provinces require builders to be licensed or registered and to offer a new home warranty, so check your provincial regulator. Also check municipal building code, zoning and permit rules, insurance and WCB/WSIB coverage, and local holdback and lien rules.