Tips On Getting Started as a Subcontractor

Posted March 3rd, 2020

How Do I Get Started as a Subcontractor?

Our clients at American Spray Technologies are primarily drywall spray contractors. In terms of a business model, that means most of them work as subcontractors.

Working as a subcontractor has both advantages and drawbacks. You are, technically, your own boss, but on jobs you work under the direction of the general contractor. You can take on projects at your discretion, but it can be easy to take on too much. You can do very well financially, but you usually must incur costs initially then get reimbursed upon job completion.

In this post, we’d like to offer tips for people who are new to subcontracting and looking to get started as a spray contractor. These are general tips that will help leverage the advantages of this business model and avoid some of the pitfalls that might get you in trouble.

#1. Develop a Business Plan

Most people starting as a subcontractor begin without even thinking about – much less formally writing out – a formal business plan. This is an oversight.

A business plan is a document you develop and use internally to help guide you, particularly in the first year you’re in business. If you need to get loans to finance your business you may need to present a business plan to the bank.

A good place to start is the Small Business Association, which has templates small business owners can use to create a plan of their own. This will provide you with an outline to structure your ideas. They have two main templates, one for a traditional business plan and one for a lean startup.

Within these, here are some of the main points to consider.

Company Description. Are you going to be a sole proprietor working alone or do you plan to hire a crew? What volume of work do you plan to take on? What locations will you work in?
Market Analysis. What’s the market like for spray contractors in your area? What type of competition will you be up against? Will you be able to win a viable amount of work?
Services. Are you going to exclusively be a texture sprayer, or do you want to offer other spraying or drywall services? Do you want to work primarily on commercial or residential projects?
Organization and Management. What will the legal structure of your business be? Will you have management personnel or will you do that work yourself?
Marketing and Sales. How will you market yourself and make valuable connections with general contractors? Can you handle sales calls in person and on the phone? What marketing assets do you need?
Funding. How will you get the necessary capital to buy equipment, market your business, and pay yourself as you get started?
Financial Projections. What are your revenue goals for your first 6, 12, and 18 month benchmarks? Does the plan you have in place make these goals seem realistic?

You don’t need to spend weeks formalizing your business plan, but if you organize these points it will give you a competitive advantage.

#2. Have Clear Contracts In Place

The main disputes that happen between contractors and subcontractors occur around what was “agreed on” when the project began. The best way to avoid this is to have contracts in place with unambiguous details about the work being done.

If the general contractor has a contract in place you’re comfortable with, you can use it. If not, you may need a document of your own to use.

It’s likely you’ll meet contractors you get to know and trust. You may consider them friends and feel you can trust them to pay you when your work is done.

But professionals get the details in writing. Construction projects often veer off course in terms of budget, timeframes, and scope of work. Make sure you have recourse if you suddenly find yourself doing something very different than what you initially agreed to do.

Additionally, never go around the general contractor by talking directly to the project owner about any issues with the job. The first step is always to speak to the general contractor.

#3. Don’t Over-Commit

If you enter a strong market and make the right connections with general contractors, you may find yourself with an abundance of work. That’s great, but it can be problematic.

New spray contractors are usually anxious to take on work, but don’t take on so much that the quality of your work starts to suffer.

Reputation is a big factor in how your business will grow, and early on it’s critical that you earn a reputation for being reliable, professional, and efficient. Deliver impeccable work and finish jobs on time. That will get word of mouth working for you.

Your business plan will help here. Consider how many hours you can work and how far you’re willing to travel for jobs. Make sure you can sustain the workload physically and mentally.

Also, make sure the equipment you’re using is reliable and built to help you complete jobs faster. The texture machines sold by American Spray Technologies are well-known for their bullet-proof reliability, low-maintenance requirements, and easy clean up. All this saves you time and allows you complete jobs efficiently.

#4. Market Your Business

A lot of subcontractors don’t think they really need to market, but that’s rarely true, particularly in the digital economy we now work in.

Having some marketing tactics in place is always a good idea, including:

A business website. Today, you can set up a website on a template for a minimal cost. Use it as your online “business card”.
A brand logo. Create a logo and maybe a tagline you can use on your website, business cards, clothes/hats, and vehicle wraps.
Social media. If you use Facebook or Instagram personally, create a business presence. Use LinkedIn to develop B2B relationships. You don’t have to spend a lot of time on social media, but it’s free and can drive you some leads.
Network. Make sure all the contractors, property managers, home builders and other relevant people you need to work with know who you are. Connect with them on LinkedIn. Go to local networking events or maybe even hit a bar you know a contractor goes to and introduce yourself. A little assertive but friendly networking can go a long way.

In busy times, it’s easy to think you don’t need to market yourself. But it’s the subcontractors who do market who survive the lean times when construction nosedives and work isn’t so easy to come by.

#5. Estimate and Budget Accurately

As a subcontractor you will have to estimate project costs then incur those costs until after the project is complete, when you’ll be reimbursed.

Make sure your estimates are accurate and that you have the budget to cover costs until the job is complete. This includes materials, travel, and labor.

If you’re an indepent spray contractor, project estimates will be fairly straightforward. If you’re doing additional work and employ a crew, you may want to use some type of project management software to plan and track all your expenses.

#6. Get the Right Texture Machine

This last tip is where American Spray Technologies becomes your invaluable ally. We’ll equip you with the right texture machine so you can effectively complete the work you have outlined in your business plan and become consistently profitable..

For example, our Kodiak M2 portable texture sprayer is hands-down the best machine on the market for new spray contractors just building their business with commercial and residential jobs. It’s inexpensive enough to fit into a new business’ budget but has the reliability and capacity to let you take substantial jobs.

The Kodiak is small enough that you don’t have to invest in an additional vehicle to transport it and portable enough for one man to handle on the job site. It’s high capacity hopper and powerful output results in superb work. Its low-maintenance, easy to clean features save you time so you can take on more work without overextending yourself.

As you grow, we have the big rig trailers and skids you’ll need to take on higher volume jobs. Keep planning, growing, and investing in the right texture sprayers, and you’ll earn the reputation that will keep you busy and profitable.

Always keep American Spray Technologies in mind as a resource. We’re happy to answer your questions and use our experience to help you turn your texture spraying subcontractor work into an excellent career.