Contractormag 2327 Plumberhands
Contractormag 2327 Plumberhands
Contractormag 2327 Plumberhands
Contractormag 2327 Plumberhands
Contractormag 2327 Plumberhands

Make the switch from construction to service work

April 6, 2015
As a subcontractor you are at the mercy of whoever has the prime contract. As a service provider you have the prime contract (usually spelled out on your invoice), and all the control necessary. Are you capable of, or do you even want to, switch to business owner rather than stay a simple subcontracting drone?

Recently I've focused on subcontracting as opposed to prime contracting. You are licensed for both and can choose to do both if you want to have a bright future. The difference between the two is control.

As a subcontractor you are at the mercy of whoever has the prime contract. To be fair, this type of work can be fun, prosperous, and the business end is not all that difficult — but it's definitely for the young. You will wear out. My counsel is to you is to prepare for the future by developing a high margin service business on the back of your subcontracting.

As a sub, you labor all day, sometimes six or seven days a week, working pretty much at the whim of general contractors and home builders, incurring all the responsibilities, liabilities, stress, back-office drudgery (unless you've enslaved a family member), and frustration without gettin' many of the rewards. You make a fair amount of money, but ... is yours and your family's financial safety covered if something happens to you? Forget about vacations and the kids' schooling, how about a long-term disability policy in case you break a leg?

If your answers are no, you just might be better off getting a job with someone else! Seriously. There's such a shortage of trained expert workers out there you can easily get a job making $70,000, $80,000, even a $100,000 or more a year!

Let's look at the service side now. As a service provider you have the prime contract (usually spelled out on your invoice), and all the control necessary to make life what you want it to be rather than reacting to what others say it will be.

What's your dream? Now check to see if you're fulfilling that dream. Are you muckin' along doing the same thing over-'n-over expecting different results? Believe me, the results will never be different if you do the same things over and over. I've been there, done that, but then I managed to get out of the rut. You can too. Better yet, avoid the rut to begin with.

Are you capable of, or do you even want to, switch to business owner rather than stay a simple subcontracting drone? To answer this question I highly recommend reading “The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do about It,” by Michael Gerber.

Here's the way out: S-L-O-W-L-Y develop your service business as you continue working as a subcontractor. Every remodeling job or new construction project completed should supply you with built-in future clients — something every service contractor in the world wishes they could get as easily. By the time you decide to get out of the truck, let go of the tools, and employ others, you could have one big customer base. But only if you start now.

This is not rocket science. Most anyone who applies himself can learn, but you're probably going to need a mentor, a coach (shameless self-promoting here), or be part of a best practices group. If you attempt to do it all by thyself, you'll burn out faster than a Fourth of July Roman Candle.

Developing your service business on the back of your contracting business can actually be enjoyable if you have the motivation, the sense to plan further than next weekend, are teachable, and have a little humility. Good coaches, mentors, best practices groups, etc. know how to motivate, educate, and plan; it's up to you to have the humility to learn, follow some established procedures, and realize you don't know it all.

What will you do now? You can repeat the same thing, expect different results, and be sorely disappointed; or you can take your first different step towards a bright future and realize the dream of wealthy independence. Start by giving me a free call. The few who have taken me up on that offer have begun lift-off. It’s your choice.

Next time: Want to hear about a certain topic or challenge? E-mail me and I'll write about it. Enjoy.

Best,

Ol’ Ed

Ed O'Connell is the founder emeritus of O'Connell Plumbing Inc. He is the subcontracting business coach for smaller contractors and a Service Round Table Coach. He can be reached in Auburn, California, at home/office: 530/878-5273 or at [email protected].

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