Diary of a Construction Business Startup

Diary of a Construction Business Startup

Lexington, NC · Member since 2019 · 28 posts · 19 votes

Hello everyone! My name is Seth Davis. I introduced myself earlier in the newbie forum. Feel free to and read my post if you have time.

I have recently decided to pursue a new passion of mine which is building and construction. I'm 39 years old, but I figured it's never too late to get started with something new. Plus, it helps keep the brain in tip-top shape! I have been a professional software developer for 20 years now, and absolutely love technology and programming, but I'm looking for something to spark that imagination and wonder again, and building and construction seems to be doing that. I never went to college, so I only have a high-school diploma. Everything I know was self taught, or learned from mentors along the way. Over the years I have realized that if you are genuinely interested in something that someone is passionate about, they will teach you things about it that you could never learn from a book.

My initial plan is to do spec builds, particularly technologically-advanced spec builds: Smart, robust home network, and high speed / reliable indoor/outdoor Wi-Fi. I figured I would try to play to my strengths.

The goal of this thread is to basically document my entire process of starting my business from the ground up and pursuing (and hopefully completing) my first build. Please feel free to criticize, advise, ask questions, or anything else, as I will be doing the same along the way. This will be an on-going thread. So, without further adieu, let's get caught up with what I have done so far.


Goals
You need goals. Goals help fuel the passion. Here are my personal goals for this journey:

1-3 Months
- Finish studying for GC exam
- Register and take the exam (pass the exam!)
- Find the most useful accounting software (Freshbooks seems good so far)
- Begin learning the PlanSwift estimating software
- Research local real estate sales and land availability
- Meet up with the accountant and get the business structure in place
- Meet up with a family member who just graduated interior and structural design school and hash out a great floor plan
- Get a few polos and t-shirts printed with the company logo and pass out to friends and family who have been supporting this endeavor

3-6 Months
- Meet with mentor and begin shadowing and learning the ins-and-outs of general contracting
- Meet with plumber about partnering up for a spec build
- Meet with realtor and begin searching for a great piece of land
- Meet with lawyer and setup some of the more mundane boiler-plate contracts
- Research local material companies, lumberyards, etc and begin setting up relationships for purchasing materials
- Go to the county permit office and learn the processes and costs for applying for permits

6-12 Months
- Acquire a piece of land to build upon that has been soil bearing and perk tested, in a good location, and minimal tree/brush clearing if possible
- Provide the architect with the floor plan and house design so they can stamp and complete the plans package (foundation, joist, floor, electrical, mechanical, side, site, roof, and detail views)
- Finalize partnership with plumber and get contracts in place for how funds will be managed
- Finalize partnership with mentor for sub-contractors and get contracts in place
- Get a building permit!
- Verify sedimentation control and land disturbing requirements
- Break ground and build a house!

3 Year
- Average 2-3 builds per year
- Have enough working capital to not require loans or private funding to do one build
- Begin searching for simultaneous funding sources
- Pursue 2 builds simultaneously
- Begin building for clients, not just spec homes

5 Year
- Have enough business to be able to quit programming and grow my business full-time
- 3-6 builds per year


Up To This Point
So, most of my time has been consumed with getting this GC license. I didn't realize just how hard this test is going to be until I started studying for it.

But here is what I did to get to this point with the GC license:
- I went to https://nclbgc.org/, downloaded the application and filled it out. I chose the limited license, which means I can build residential structures up to $500,000
- I asked 3 of my friends for the required reference letters. They were awesome letters!
- I mailed in the application package: The application, the 3 reference letters, and a $75 check
- After about a month, I received my eligibility letter. This letter gives you a code that you will use to register for the exam
- At this point, I purchased my first book, Pipe and Excavation. I started reading it from page one. Once I got to page 20, I realized just how much material was going to have to be covered if I went from cover to cover in the 10 books that the questions on the exam are pulled from. I mean, this is over 10,000 pages of information.
- I decided to purchase a study guide from https://www.carolinaseminars.com/. The study guide came quickly and seems to be very thorough. It has practice tests and audio CDs, and a well-laid out study guide
- I have been studying around an hour and a half every night for the past 2 months, and I still feel like I'm not ready
- You have 4 months from when you receive your eligibility letter to register and take the exam. My letter expires July 28, 2019. I may schedule the exam around the 5th of July. The exams are through psiexams
- I paid $20 and took a practice test and didn't do so hot, so I'm going to keep studying

As far as the business side of the story, I have just done a few things:
- I tried out freshbooks for the account software. It's pretty straightforward and simple, which I like, and they have a nice mobile app which is essential.
- I downloaded PlanSwift estimating software, since that's what my mentor uses. It's going to be a beast to learn, but there are plenty of YouTube tutorials, so I'll be watching those and following along to learn the software.
- I swapped out my iPad for a Microsoft Surface Book, since the estimating software is windows-only. 
- I designed my own logo. 
- I registered my domain name. I'll be hosting my WordPress website on my server at my house. 
- All of your business startup costs are deductible, so I have been keeping a list of everything that I do and it's cost.

Well, that's about it for now. I'll keep posting to this thread as I make more headway into this adventure. Feel free to ask questions or make comments. I'll be sure to answer them!

Thanks for reading!

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  • Lexington, NC · Member since 2019 · 28 posts · 19 votes
    7y
    Originally posted by @Don Taylor:

    Congrats @Seth Davis, keep us posted!!

    Thanks Don!

  • Lexington, NC · Member since 2019 · 28 posts · 19 votes
    7y

    Update 5

    Hey everyone!  So, it's been a bit since I have posted an update.  I have had a little bit of everything going on, which is a good thing. Here are some of the things I have been accomplishing with the business startup:

    • Secured a lawyer to be the Registered Agent for my LLC
    • LLC articles are filled out and will be submitting them here in the next couple of weeks
    • Business phone number secured
    • New domain name secured: https://www.tigerdog-builders.com and setup a local mail server at my house to point to my new domain
    • Configured and setup a local web server at my house to point to my new domain
    • Began development on my website
    • Had a conversation with my realtor on design and location for first build
    • Sent out my first official estimate to a potential client for a main water line replacement from meter to house. This estimate includes working with multiple sub-contractors and filing permits with the county, which will give me some good experience starting out
    • Inquired about general liability insurance for the business

    So, it's been a busy month! Let the journey continue!

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