You have put in your time on countless jobs and now it is time to branch out. You are ready to put your name out there and provide people with quality workmanship. Even after you think you have everything in order, there are some things to consider before becoming an independent building contractor.

Independent contractors, regardless of the industry, will be faced with some of the same choices any small business owner will be faced with. First and foremost, you need to gather up all your ideas and needs regarding the business and organize them into a neat package. You need a business plan. 

Business Plan

There is no way around it. At the very least, this provides others (i.e., lenders and/or potential investors) with an overview of the business and your goals. There are many business plan templates out there, but here are the main sections to include in your plan.

Title Page  

This includes the title and other pertinent identifying information, such as your business name and contact information. This is where you will introduce yourself and your business to potential stakeholders. 

Executive Summary

This is a brief, professional summary of what your business is all about. It can include such things as a quick mention of the product and/or service information, potential customers, and your vision for the company.

Company Description 

This page will include the mission statement, operating officers, and a brief market analysis.

Organization and Management

This is where you describe the company’s organizational and legal structure. In other words, this is who will be running the show and who is going to keep it on the up and up. 

Market Analysis  

Knowledge of the market and how your business will add to it will show through, so do the research.

Service or Product Line

Tell the reader what you will offer, whether it is a service or a specific product.

Marketing and Sales

Describe how you will let your consumers know your service is available and how it will be ‘packaged’ and sold. This will help show potential stakeholders what sets you apart from the competition. Even though marketing might seem simple, make sure you get proper advice before executing a plan.

Funding Requests 

Describe what funds you will need over the next five years. It is impossible to know how the market will be in the future, so allow for such contingencies as inflation and deflation. 

Financial Projections

By projecting a detailed financial picture, you will help convince lenders and possible investors that you have an understanding of the business and industry. Don’t be afraid to go monthly or even seasonally with your projections, as your specific industry could very well depend on the changes in the seasons. This is also a good place to include charts and graphs. 

You will want to pay attention to employees, both in your operations and your business plan. Frankly, you will not be able to be a contractor without them.There will come a time when you need to put your trust in others to get the job done. No one person can deliver the service you provide. In other words what is going to make your business a desirable place to work? What is your compensation package? What benefits are you going to provide? Are you familiar with what benefits are required? What is bereavement leave? Are you required to provide it?

Appendix

This is where you provide supplemental material not available in the aforementioned sections. Such items include resumes, individual credit scores, and product pictures. Don’t skimp on this section as it is your last chance to get the people who make up your company in front of your potential stakeholders. 

Conclusion

Even though no business is the same, make sure you make your business plan stand out. The more resources you can provide makes it more likely for potential stakeholders to put your business plan at the top of their pile.