Are you always looking for fast-paced, interesting jobs? You might be a contractor who wants to start your own business. But what type of business should you start? Well, if you’re looking to start your own contractor supply business, then this article is for you! Starting a contractors supply business is one of the most strategic choices that a contracting firm can make. Contractors supply businesses don’t have to be time consuming or difficult to operate. In fact, starting your own contractor supply business can be as easy as renting some storage space and buying some basic supplies. After reading this article, you will know everything that you need to know about starting your own contractor supply company from the ground up!
What is a Contractors Supply Business?
A contractor supply business is a company that produces goods like material handling equipment, special tools, safety equipment, and construction supplies. This can be either an after-the-sale service (buy-sell-transfer) or an inventory goods business. Essentially, contractor supply businesses deal with goods that contractors can use on jobsites for various projects. And because contractors will want to maintain a certain level of inventory, these businesses will also offer services like sales, inventory management, order fulfillment, and more.
Therefore, contractor supply businesses are a great way to become a contractor and build your own contractor business. As you can see, contractor supply businesses have a lot to do with helping contractors succeed. And because these businesses are focused on supply, they are very scalable. This means that they don’t have to be large to be profitable and scalable. Therefore, in order to be successful, these businesses focus on helping contractors find the right products at the best prices.
Why to Start a Contractors Supply Business?
A contractor supply business can be an extremely lucrative endeavor. You can start a contractor supply business either as an after-the-sale or inventory goods business. Both of these businesses can provide contractors with a plethora of supplies, but they each have their pros and cons. After-the-sale businesses are more scalable, but inventory goods businesses may be more profitable. Additionally, there are many other benefits associated with owning a contractor supply business, including: –
– Increased income potential
The construction industry is a lucrative business. In fact, there are more than 50 million workers in this industry, and the Bureau of Labor Statistics projects a 9% growth in employment from 2016-2026. Because of this, contractor supply businesses can help contractors earn good money with minimal effort on their part.
Tips for Starting your own Contractors Supply Business
– Find a location
For any type of small business, location is critical. You can’t operate a successful business if you don’t have a physical location to house it. If you don’t have a place to house your business, then you won’t be able to run it. So, the first thing you need to do is find a location where you can establish a physical presence. To do this, you’ll need to calculate how much it costs to operate in that location. After you calculate the cost of operating in that location, you’ll know exactly how much you’re losing each month because you can’t operate at a profit. Once you have this information, you can start looking for a space where you can operate your business.
– Build a team
After you find a location, the next thing you need to do is build a team. This can be someone from sales to receiving to inventory management. The best way to find people for your team is to look for jobsites and find people who are already working on jobsites. Building a team isn’t easy, especially if you’re the only person working on the business. But, it’s important because these people will be your core team. And, these people will be the ones carrying out the day-to-day operations of your business. So, you need to make sure you hire them wisely.
The 4 Most Important Things to Consider When Buying Contractors Supply
– Quantity
The most important thing to consider when purchasing contractors supply is the quantity you will buy. If you buy a lot, then you can sell it at a higher price. If you buy a little, then you’re unable to sell it at a high price. So, when buying your initial inventory, you’ll want to buy a lot and a little.
– Quality
Another thing that you want to consider when purchasing contractors supply is the quality of the items. After all, you want to make sure that the product you’re purchasing is of high quality and will last long enough for you to make money from it. So, make sure that the contractors supply you buy is of high quality.
– Pricing
Last, but certainly not least, you want to consider how you price your contractors supply. After all, you don’t want to price your supply too low and run out of inventory because you’re pricing it too low. So, make sure that you price your supply at a price point that will allow you to make money while maintaining a certain amount of inventory.
– Buy + Sell
Last, but certainly not least, you want to make sure that you buy + sell everything you buy. You don’t want to have a lot of inventory and no way to sell it. So, make sure that you buy at least 20% of your inventory and then sell the rest.
Conclusion
Starting a contractor supply business can be very lucrative. However, it is important to make sure that you purchase high-quality items at a fair price. Otherwise, the business can quickly become a financial burden. Contractor supply businesses are essentially companies that sell products to contractors. These businesses help contractors do their job better by supplying them with the right products at the right price. So, when starting a contractor supply business, you need to make sure that you are making wise decisions and buying high-quality items. This will ensure that you have enough inventory and can sell it at a high price.
