How Getting Your Contractor License Can Help You Start Your Own Business

Posted by Brad Lawler on

Starting your own business can sound like a mile-long accomplishment. There’s the registration you have to do with your state, getting a tax ID number, and making sure you have the proper legalities in place to start working. However, once you get everything in order, you realize it didn’t quite take that long. Best of all, you are now your own business!

But there’s a lot more than filling out the right paperwork to become a business. In the general contractor sector, getting a contractor license can help you immensely.

Nowadays, many people can call themselves a contactor simply by having experience in the field. While we don’t disagree that experience is imperative, having the right licensing is just as important.

Getting Your License First or Registering Your Business First?

This is more of a chicken and the egg question. From what we know, there’s a benefit to both. If you register your business first, you’ll have a trustworthy edge on those who are working under no business entity. Plus, more and more clients are looking to hire registered businesses.

On the other hand, if you get your license first, you’ll appeal to clients right away. Clients do look for contractors who have a license, and if that’s you, you’ll be getting work which is great. By the time you register your business, you’ll have clients and finished jobs under your belt.

Why Have Your Own Business?

Having your own business is great, but it’s not for the faint of heart. The main reason is that you take responsibility for a job well done. Sure, there’s no boss to bail you out or someone to take fault other than yourself. Yet, if you like the freedom to help your clients the way you want and taking responsibly for the quality of your work doesn’t scare you, then having your business may be a route for you.

If you don’t know if you want to have your own business quite yet, then getting the contractor’s license first can help you determine if you want to. With your license, you’ll be able to take clients straightaway. After a few jobs, you’ll can get a feel for what it would be like to have your own business, and if it’s for you.

The Benefits of Getting Your License for Your Business

Unfortunately, many clients are reluctant about contractors. They’ve been tainted by shady practices and now they fear the industry. To be fair, it can be a shot in the dark to get a good contractor, let alone someone who has the right license. However, by getting your license and starting your own business, you will be ahead of the game! Here are some reasons why:

  1. People trust you. More and more people are looking for a contractor who can take responsibility if something happens. Unlicensed contractors can get away with doing shoddy work and have no responsibility to fix it. When you have your license, people take you seriously, so you can boost the credibility of your business even in the early stages. A license means you know what you’re doing and are willing to put your name on it. There’s a serious danger in using unlicensed contractors and people want to stay away from them.
  1. You’re a licensed business. People know that if anything goes wrong, they could report you. This doesn’t sound like the greatest benefit, we know, but it really is. When people have the peace of mind that they can tell someone if something goes astray, they’re more likely to say yes to you.
  1. A higher pay. After some experience and getting great reviews, you’ll be able to show people that you mean business. You’ve made a name for yourself and you take responsibility for the work you do. Because of this, you can increase the zeros in your pay. People will pay higher dollars when they know the job is guaranteed, than paying a lower amount to an unlicensed individual. They’d rather pay only once for a job well done.

Remember Us When Getting Your License

We are the Contractors Institute. We prepare you for your license test and want you to succeed! Our instructors are leaders in the industry and are there for you every step of the way. Our goal is to educate and have you pass the test on your first try so that you can build a successful business. To find out more about the test and who we are, give us a call today!


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