Is There a Good (or Bad) Time to Launch a Contracting Business?

If you know a few self-employed contractors or business owners, you’ve probably heard them talking about different business and economic conditions. That can be confusing, especially if you’re thinking of becoming a licensed contractor yourself.

In fact, knowing that there are ups and downs, you might be asking yourself: Is there a good, or bad, time to launch a contracting business?

Certainly, there are times when conditions are more or less favorable. Seasons and weather, the economy, and even construction laws or tax incentives can all make it easier or harder for contractors to find new business. Yet if there is one thing we have seen among new graduates over the years, it’s that the best time to start is when you’re ready.

How do you know you’re ready to become a licensed contractor in California? Here are a few signs:

You have the drive and ambition to become a self-employed contractor. For most new CSLS graduates, becoming a licensed contractor is a dream as much as a career move. They want to earn more money, have more time off, and choose the direction their future will take. If that sounds like you, you’re probably ready.

You have, or can get, a basic understanding of business ownership. You don’t have to know a lot about business ownership to get started, and some things you can only learn through experience. But know that you’ll have to familiarize yourself with things like taxes, managing employees, and billing clients if you want to be successful. None of these is difficult, but they take a small amount of time and practice.

You already have a little bit of savings or another income. A lot of new graduates don’t go into self-employed contracting right away, at least not full time. The transition is a lot easier if you have some existing savings or a secondary income you can count on for at least a few months.

You have the support of family and friends. In the beginning, launching and running your business will probably take a great deal of your time and attention. That’s why having a supportive family and social circle can be so important. They’ll help you stay focused because they understand what you’re trying to do and that your hard work will pay off later.

Note that even though there are better and worse times to become a contractor, there’s never a perfect time. So if you’re ready to take the next step in your career – and want some personalized help with scheduling and financial aid to make it happen – contact CSLS to speak with a member of our admissions team today.