Reddit reviews Running a Successful Construction Company (For Pros, by Pros)

Off the top, I have to say that I really don't like the tone of your post, it shows a lack of respect and ignorance for how much work and capital the owner of a company has to put in. Being good at business doesn't mean that you're the best technical carpenter or even a carpenter at all. It's like the typical restaurant feud where the kitchen staff doesn't appreciate what the wait staff do and visa-versa, while not realizing that one would not exist without the other.

Sales and dealing with clients is much more difficult than most give credit for. Knowing how to price things to make money, being able to work with all different types of personalities and keeping a level head under very stressful situations are skills we don't learn in the field. Not to mention the financial risk on every project, accounting, advertising, driving all over hells half acre to price jobs you might not get...etc.

All this to say, take a little time to research and learn what goes into the front end of a business that is successful. A few books you might want to check out:

1)Markup and Profit: A Contractors Guide by Michael Stone

2) The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change by Stephen R. Covey

3) Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz

4) Running a Successful Construction Company by David Gerstel

5) How to Win Friends & Influence People by Dale Carnegie


Most important though is to find an accountant and learn what goes into accounting. Of all the things that I've seen take down really good carpenters going out on their own, accounting is #1. They don't put money away to pay taxes end up in a robbing peter to pay paul situation, or just don't know what their overhead is to charge appropriately to cover it as well as make a profit and cover their own wage.

As far as how much capital to start out with, I'd say 6 months salary. It's always a good idea to have a least 6 months worth of operating expenses as a capital reserve even while operating. It makes you less likely to be put in situations where you HAVE to work and end up taking jobs you shouldn't.