Starting a new construction company

[noral]

Well i had a new business idea and i wanted to share with with the YE website. Well im about to turn 20 and may dad does construction asphalt etc.... Well what i seen him do sometimes when he cant do a job is hire another company to do the work for him and still come off with a good profit. For example he has a asphalt job worth 20,000. It cost 4000 for the asphalt and the company that does the work for you Chargeds you 4 to maybe 5,000. now thats 10 to 11,000 Profit and i havent did anything bout get the job. I was wondering would this be a good business for me to go into by just getting good jobs and hiring someone else to do them for me

[fishingeye]

It's sounds very good.I hope you will make successful.

[vivida]

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[Entre104]

Sounds like a good business, stick with it

[canadascoffee]

that's called being a contractor. nothing new, but you can certainly still become one...

[sk8ramp]

Yup, you'd be a general contractor instead of a sub contractor. There is good money to be made doing that.

If you want to make even more though, become a vertical monopoly of sorts. Be the general contractor and do your own sub contracting.

Contract = $50,000

Sub contract = $40,000

Cost = $30,000

General contractors profit = $10,000

Sub contractors profit = 10,000

If you are both general and sub you make $20,000

There's a lot more headaches this way, but most successful contractors do some work in house because it also gives you more leeway when negotiating contracts. In other words to get the work you may take a hit on the general contract, but it is okay because you still make good money on the sub contract.

[Fanatik]

This is a good industry to get into; however, you'll be judged on the quality of work that your hired hands do. If you hire crappy contractors to do the work for you, you'll get a very bad rep, very quickly. You should do a considerable amount of research into who you're hiring before you get into this field.

A buddy of mine owns a welding company and they do a lot of quality work. They also hire some great contractors, but in the past he's hired one or two bad ones and it almost cost him big. If you do some good research, you'll be well on your way.