Posted by: Kaplan Real Estate Education
Updated: January 15, 2019
To be an effective contractor, you clearly need the skill set necessary to successfully complete projects. But you also need to have an understanding of the geographical area, as well as the local real estate market and the competitive landscape of other contractors in the area so you can market your business appropriately and generate leads.
What Geographic Area Will You Be Able to Cover As A Contractor?
Keep in mind, during certain times of the year, many contractors are working multiple projects, so distance between job sites can be an issue. Can you effectively perform your job if you have two different projects on opposite sides of your coverage area?
What Does the Local Real Estate Market Mean for Contractors?
How many real estate home transactions are there typically in the area you will be covering and how many of those homes are new? You should be able to find this information from your local real estate board. You need to have a good understanding of the local conditions. Is the geographic-area you are covering growing? Is the population increasing or decreasing? Do new structures need to be built or are there a large number of old structures that need to be remodeled? The U.S. Census Bureau provides valuable information for the construction industry, including tracking stats like number of building permits, housing starts and housing completions by area.
Know the Local Contractor Competitive Landscape
Who are the other contractors currently working in the area that you will be covering? What will you be offering that they currently do not? You should be able to find out this type of information from internet searches as well as talking to others in the industry. Too many companies simply copy the marketing messages of the competition. To get people to take notice of your service, you need to give them a reason to change. Do not sell your service simply based on price. Many standard market positions exist, such as, innovation, speed, experience, quality, etc. Make sure your chosen position fits your personality and what you deliver.
To learn more about becoming a contractor in Minnesota, visit our Minnesota Contractor Licensing landing page.