How To Start A General Contractor Business

The construction industry is booming, and you’ve got the skills and experience required to run a construction project from start to finish — but running a business requires stepping outside of your comfort zone to start developing an understanding of accounting, licensing, marketing, and sales.

Your long-term success relies on attracting customers and earning business, but if you’re a general contractor, your skills and experience are probably more applicable to a job site than a website. 

That’s where Bidmii can help. We provide the basic knowledge and resources you need to start to build your general contracting business and we’ll introduce you to a platform where you can find your first customers.

Below, we outline everything you need to do to launch and grow your business, from your business plan and licensing, to getting your first customers and getting paid.

Table of contents

• Business Plan
• Selecting a Business Structure
• Register Your Business
• Create a Website
• Get Insurance
• Additional Licensing
• Get Your First Customers
• How to Bid on a Project
• Complete the Project and Get Paid
• Build your Profile

Business Plan

So you’ve decided to be a general contractor — congratulations! You’ll also need to be a CEO, CFO, business leader, salesperson, and take on several other responsibilities. Entrepreneurs who are serious about their business will have some semblance of a business plan — it doesn’t have to be pretty or complicated, but it should lay out your path forward.

One of the biggest reasons you should have a business plan is for the purpose of applying for a small business loan. If you need vehicles or equipment for your business, this will be crucial. Your business plan should include a description of your business, the services you will offer, a summary of who is involved and their responsibilities, how you plan to market your services, operate and manage the business, and how much funding you need.

While it may seem extensive, a business plan should be considered as another strategic tool in your belt — helping you set goals for short and long-term objectives.

Selecting a Business Structure

A business structure is one of the first decisions you’ll need to make for your general contracting business. There are four standard types of business structures:

• Sole proprietorship
• Partnership
• Corporation
• Cooperative

Each structure type has different pros, cons, and implications, so you’ll need to choose the one that works best for your business. When selecting your business structure, consider your liability. Businesses with higher liability will want to choose a more protective structure, such as a corporation, which costs more than a sole proprietorship but offers benefits such as limited personal liability. Learn more about choosing your business structure.

Register Your Business

Now that you’ve selected your business structure, you’ll want to get your business registered. Registering your business protects your business name and proves that your company is a legitimate entity — meaning you can hire employees, complete real jobs, and more. 

To register for a business license, you’ll need to provide your business name and structure type, including your address and personal details. You’ll also need to pay for your business registration. Register Your Business in Ontario here.

Create a Website

In the digital age, you're invisible if you’re not online. Most small business owners rely on word of mouth and social media to get customers — but a website is a big check mark that helps show potential customers that you’re a legitimate company. Your website can be as simple as a contact page, which proves you’re a real company. Many website builders offer a free trial to get a basic website up on your own fairly quickly. 

Pro Tip: Your Google business profile will be the largest entry point for your business. Start your website there, and you’ll have an online storefront created quickly for less than $20/year!

Don’t get overwhelmed — just get it launched!

Many business owners will put off launching a website for months because it’s not perfect. You won’t get much traffic in the beginning, so just make a basic website with relevant information and get it online. Name, phone number, and service area are all you need to get started. You don’t need to spend money on a custom-designed website — once you’ve got money coming in consistently, then you can invest more in your website.

Get Business Insurance

Your construction business will need three different types of insurance. In order to purchase the right type of insurance, it’s worth reaching out to several brokers, or agents, for quotes and advice. The types of insurance you may need include:

General Liability insurance: Potential damage you may unintentionally create at a client’s property.

Workers' Compensation: Potential injuries to you or others while on the job.

Equipment insurance: Theft or damage to your tools and equipment.

Additional Licensing for General Contractors in Ontario

It’s important to note that, depending on the municipality you’re operating in, a General Contractor may need licensing in addition to what is required by the Ontario College of Trades. 

For example, according to bylaws in the City of Toronto, additional licensing applies to anyone who advertises or solicits work as a building renovator or building contractor (including altering, repairing, or renovating buildings or structures). If you’re planning to operate your General Contracting business within the City of Toronto, you’ll need a work permit from the city.  

To obtain this permit, you may need to provide additional documentation and submit to project evaluation by city examiners. The local municipal code will detail which trades require city permits, so it’s important to ensure that your subcontractors comply with this rule. If you don’t comply, you may deal with projects being halted if a city representative drops by your job site.

Get Your First Customers

As a General Contractor, it can be hard to focus on everything all at once. To ensure you have new projects coming in, you’ll need to spend time on marketing and sales activities to manage your jobs. Traditional advertising can cost up to $100 per lead — and you’ll quickly realize that not all leads turn into sales. These costs can add up when you’re trying to launch a new business, from lawn signs, to flyers, to print ads, and more. 

That’s why we created Bidmii — a free tool for home service businesses to connect with the homeowners in their community. 

How Bidmii Helps You Earn Your First Customers

Using Bidmii, you won't need to worry about marketing expenses or paying for leads. Creating a free profile allows you to select the types of projects you’re interested in and receive daily notifications through SMS and email messages from customers looking for a quote. You can immediately start bidding on the projects you want, send offers to potential customers, engage in direct conversations, and get paid — all in one app.

Are There Commission Fees? 

No. Bidmii is free for both homeowners and contractors. Payment processing fees vary by card and processor, but Bidmii has set a standard payment processing fee at 4% to account for all possibilities. If you’re interested in avoiding this 4%, talk to us about submitting a wire transfer, and we’re happy to drop this fee to 1%.

How to Bid on a Project

Bidding on a project is easy — and it helps provide upfront insight into your profitability on each project. If you’re just starting out, you may want to seek advice from other tradespeople on how to price projects, but in general, you should always make sure you can account for your costs. 

Example Project Bid: Renovation Job

Ross from Toronto wants his home renovated, so he posts a project on Bidmii. You'll see the email notification on your phone and can decide whether you want to put in a bid. You can post additional questions to dive into the details, then check in with your subcontractors and find out if they can do it for $160,000. You decide to quote the job at $200,000. Ross accepts the bid, and you’re left with a tidy profit on your first job because you only spent money on your contracting business registration, insurance, and subcontractors.

Your Proposed Price: $200,000

Subcontractor Fee: $100,000

Paint & Materials: $60,000

‍Total Profit: $40,000

Complete the Project and Get Paid

This is why you’re here, and it’s why you started your general contracting business in the first place. Using Bidmii, you won’t have to spend your valuable time chasing payments from your customers. You’ll receive compensation directly into your account as soon as a project (or project stage) is marked as complete by both parties. 

Build Your Profile

Congrats, you’ve completed your first project! You’ll receive honest, verified ratings and reviews from your customers about your completed projects directly on Bidmii. As you grow your business with Bidmii, homeowners will feel more and more confident about using your services — this will help you compete for more (and bigger) projects. 

Want to Build Your Business Using Bidmii?

Bidmii is the fastest, easiest, and cheapest way to get customers for your general contracting business. We’ll help you find new clients and build lasting relationships with homeowners in your area. By completing projects, you’ll earn a strong reputation through ratings and reviews.

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