Small General Contracting Firm

Homeowners doing major renovations or additions, small business owners fitting out shops or offices, and property owners.

Contract price covering subcontractors, materials and your overhead and profit, or a management fee on top of costs. Paid in draws as the project progresses.

• Project management and scheduling
• Estimating and bidding
• Understanding building codes and permits
• Negotiating with subcontractors and suppliers

• General contractor licensing is often stricter than for small remodeling; check exam, experience and bond requirements in your state
• General liability, workers' compensation and possibly builder's risk insurance, and make sure subcontractors carry their own coverage
• You are responsible for permits, inspections and code compliance on the job
• Cash flow risk if clients pay late while you owe subcontractors and suppliers
• Check lien waiver and contract rules in your state
• Cost overruns and change orders, so get changes agreed in writing

Startup costs are typically around $8,000 to $40,000, depending on your licensing, insurance and general setup. These are estimates, so check your state's requirements and get insurance quotes before you commit.

Monthly revenue is typically around $10,000 to $50,000, depending on the size and number of projects you manage. These are revenue estimates, not profit, and the work usually takes about 35 or more hours a week.

General contractor licensing is often stricter than for small remodeling, so check exam, experience and bond requirements in your state. Also check insurance, including subcontractors' own coverage, permits and inspections, and lien waiver and contract rules.