Are you thinking about starting a new business? The right business venture for you will combine your goals and skills with a growing, in-demand industry. For many people, the home services industry fits that bill perfectly. In addition to being less reliant on economic fluctuations to stay profitable, the home services industry’s projected CAGR of 7.1% and valuation of $156.29 billion by 2030 make it an up-and-coming market to enter.

One particularly popular segment of the home services market is general contracting, which is also part of the nearly $2 trillion construction industry. As the owner of a general contractor business, you can establish recurring sources of revenue, create jobs in your community, and do work you find fulfilling. It’s clear to see why so many first-time and seasoned entrepreneurs choose to enter this sector.

Before moving forward with a general contractor business, it’s important to have the information you need to make the best choice for your goals. Explore your contractor business opportunities.

Why Start a Contractor Business?

Simply put, contractor businesses tend to be profitable. Depending on the kind of work you do, contractors usually charge between $50 and $150 an hour, or up to 20% of the construction costs. The services that contractor businesses provide are essential no matter how the economy is doing, making them a recession-resilient venture.

More than most other home service segments, you can customize your contractor business to your skills or interests. Contractor businesses can specialize in:

• Painting
• Plumbing
• Electrical work
• Carpentry
• Plaster and drywall
• Concrete
• Windows, window treatments, and blinds
• Flooring

You could also choose to open a general contractor business, which oversees the entire construction or remodeling process. In some cases, general contractors will focus on a specific area of the home.

Downsides of Independent General Contractor Businesses

Going into business for yourself involves a lot of risk, and it’s crucial to be clear-eyed about the barriers you may encounter.

• Heavy competition: Contractor businesses are very popular, and your community likely has no shortage of them. Without a way to distinguish yourself from the pack, it’s very challenging to attract clients and get your business off the ground. Performing market research and determining which specialty your area needs can help.
• Lack of experience: Many contractors have worked up through their trade, starting as apprentices. It usually takes years to obtain the skills and expertise necessary to strike out as an independent contractor. Although you may be able to learn your new craft by shadowing an experienced tradesperson, that might not be the kind of commitment you’re interested in making at this point in your life.
• High barrier to entry: The most important job a contractor has is doing their work safely and up to code, which is why they must be licensed. Most states ask for proof of industry experience as part of the licensing process, and some may administer tests. Similar to learning the trade itself, getting the experience necessary for your license can extend your preferred timeline considerably.

Choose a Contractor Business Franchise Instead

Franchising gives you a more seamless – and lower risk – path to success than starting an independent contractor business. At Home Franchise Concepts, we offer multiple home improvement and home remodeling brands, including:

• Kitchen Tune-Up
• Bath Tune-Up
• PremierGarage
• The Tailored Closet
• Budget Blinds

Home Franchise Concepts’ franchise opportunities are ideal for entrepreneurs from diverse backgrounds who are ready to step into business ownership. Rather than handling the remodeling work themselves, our franchisees focus on leading teams, managing employees, and uses skilled contractors to bring projects to life. During the franchise process, we’ll help you determine  if a contractor business is right for you.

Unlike starting an independent contractor business, which can become a lengthy process with many regulatory hurdles, franchising with a Home Franchise Concepts brand gives you the tools, resources, and skills you need to get your business up and running. You’ll benefit from a proven, turnkey business model, as well as world-class training and support throughout the life of your franchise. Home Franchise Concepts’ sterling reputation and brand loyalty make it easier to stand out from other area contractors and grow a thriving business.

Franchise with Home Franchise Concepts

Make your mark in the booming home improvement contractor market. To start your franchising journey, submit our franchise inquiry form today.