Small remodeling contractor with a crew

Homeowners, landlords and small property investors in your county.

Fixed-price or cost-plus contracts, usually paid in stages (deposit, progress payments, final payment). You earn the margin between what you charge and your labor and material costs.

• Hands-on building experience
• Estimating and quoting
• Scheduling crews and ordering materials
• Clear communication with homeowners

• Contractor license requirements and dollar thresholds differ a lot by state and sometimes by city, so check before you take paid work
• General liability insurance, plus workers' compensation once you hire employees, and a bond if your state requires one
• Building permits and inspections, which are usually your responsibility as the contractor
• Lead-safe work rules for homes built before 1978, so check EPA requirements and any training needed
• Cash flow: material and labor costs come before final payment, so use written contracts with a clear payment schedule
• Worker misclassification: check how your state and the IRS treat subcontractors versus employees

Startup costs are typically around $8,000 to $40,000, depending on tools, vehicles, insurance and any license or bond your state requires. Material and labor costs come before final payment, so written contracts with a clear payment schedule matter.

Monthly revenue is typically estimated at around $10,000 to $50,000, depending on the size and number of jobs and the crew you run. That is revenue before materials, labor and other costs. Plan for at least 30 hours a week.

Check contractor license requirements and dollar thresholds in your state and city, plus insurance, bonding and permits. Also check EPA lead-safe work rules for homes built before 1978, and how your state and the IRS treat subcontractors versus employees.