The U.S. census bureau valued 2013 construction spending at $ 930,500,000,000.00
Big companies like Betchel construction based in California have received 38 billion in revenue this last year. Even small contractors as sole proprietors can double or triple their hourly wage by setting off on their own.
So, lets talk turkey…
I can give you exact dollar amount but that wouldn’t really apply to your situation. Instead let me take you through the train of thought in understanding why some people can charge so much for their services.
As a small contractor you have a big advantage over other larger companies on small jobs. You have zero overhead, zero workers compensation insurance and an expert employee(yourself) who is properly motivated to work as fast and professionally as possible.
In essence, you can charge what a large company charges per job without any of those extra expenses and get the work done twice as fast as the competitions unmotivated salary employee.
I have seen many construction employee quit their day job and start a competing business with their former employer. They simply tackle small jobs in half the time and either work 4 hour days for the same pay or 8 hour days for double pay. Speaking from experience I have worked weekends where I earned my old monthly salary in two days.
So yes, it’s very possible to make a good living as a small contractor if you are properly motivated.
So maybe your asking? How can bigger contractors compete with all these little guys running around?
Simple, imagine someone asks you to do a project worth $15 million dollars. You would need business credit, employees, office staff, construction equipment, trucks, a huge bank account etc.
The customer can’t pay you up front because it’s illegal. So you, the contractor, are required to put your derriere on the line by leveraging all your resources to start this big project. There is great risk on your part and in return their is great reward.
Imagine a $1,000,000.00 profit! Even better imagine if this 6 month project is completed two weeks early and you earn an extra $750,000.00 for just being that good at what you do. But remember there is two sides too everything. Because you could end up being two weeks behind schedule and that profit may be whittled down too $250,000.00
So to answer your question, yes. There is large profit potential for those who are properly motivated.
The real hurdle is for you as a contractor is to accept risk. Things can go wrong and people wan’t you to take responsibility for the situation. You also have to leverage your own mental, physical and financial capabilities. The more you do this the bigger reward you will receive. Its a constant cycle of reinvesting in yourself and your company to create an organization that people will pay big money to rely on.