Building a Successful Construction Company

If you're in the thick of starting and growing a contracting business, it's likely that you have a lot of energy, optimism, and perseverance. Your desire for independence is overwhelming, and you're eager to make your dreams come true. You want to be your own boss and control your destiny. You probably have prior experience working for a contractor and possess specific trade or project management skills. It's your craft and hopefully your passion, and you believe it can be made into a lucrative business. You may have met contractors who have done well over the years and who enjoy excellent reputations, steady repeat business, and exciting prospects for growth. You believe that all it takes is a strong market and a couple of contracts to propel you forward.
Great attitude, but you would be wise to take a reality check. Let's review the cold hard facts about the industry and the risks and challenges that make it a tough environment in which to conduct business.
The construction industry is one of the largest in the United States, consisting of 12 percent of all businesses, and is by far the largest construction market in the world. A major source of jobs (with 7.3 million employees), it makes a large contribution to the economy. The value of construction put in place in 2005 exceeded...