I recently wrote about the importance of being willing to pay for leads, but if your budget simply won’t allow it at the moment you should know that there are ways to get free construction leads.  It all comes down to using your imagination, creating your own opportunities, and being willing to invest a little bit of your time.  Really try to think outside the box and you will come up with some great ideas for getting no-cost leads.  Here are a few to get you started:

1.  Start a blog.  When you hear the word ‘blogger’ you might think of politics or entertainment but it’s a medium that has become increasingly useful for small business owners all over the world.  It’s easy to start up a free blog at blogger.com and you can be up and writing within minutes.  Call it something simple like “The Official Blog of XYZ Construction CO. in Denver, Colorado”, then start writing articles about residential construction and remodeling.  The more the better.  Write about how a remodeled bathroom can help you sell your house, about what you should look for in a qualified general contractor, about how experienced and knowledgeable your construction company is, etc.  I won’t get into a lengthy discussion here about search engine marketing but just know that the more web content you have out there the greater the chance of someone in your region finding your blog while searching for information on the internet.  And guess who they’re going to call for all their construction needs?  That would be you, the web-savvy remodeling CEO who’s blog they just stumbled across.  This method is particularly effective when attempting to score residential construction leads.  UPDATED 3/8/14: While you always have the option of setting up a blog on a free platform like the one mentioned above, I should add that there are MAJOR advantages to using a paid hosting solution with you own domain name.  Read my comprehensive post about starting a blog for more on this.

Getting free construction leads is not difficult, and the task is made even easier if you already have some basic internet skills or are willing to learn them.

2.  Build a free site.  If you don’t have a website for your company yet then what the heck are you waiting for?  More and more people are using the internet to find local contractors and service professionals and it’s safe to say that the Yellow Pages will be dead within five to ten years.  You can easily build a free site with no html knowledge by using Google Sites.  You can then use your web address in all your free online profiles like the Google Business Center or Yahoo Local.  Also try to have a place on your site where people can give you their email address.  You can get a ton of these by promising to send out occasional discounts and deals to their inbox.  Then you’ve got a huge, free list of potential customers that you can bombard with sales emails whenever you need to.  If you find that you get a kick out of creating your site then offer to build free or low-cost sites for other non-competing contractors in your city and simply put a link on each one that points back to your site.  It could say something like “Website created by XYZ Construction of Nashville – home of the $1995 full bathroom remodel”.  Imagine how much traffic, exposure, and free construction project leads you’d get if you had a link like that on 25 or 50 other sites related to your region!  UPDATED 3/8/14: While you still have the option of setting up a free site on a number of different platforms (and it’s better than having no site at all), I’ve come to believe that it is wiser to devote time and resources to creating a company blog instead. For more on this subject read my post about starting a blog.

3.  Network on Google Plus, Facebook, Twitter, and other social media sites.  These websites are no longer just the domain of teens and college students – they are free marketing platforms just waiting to be exploited for your benefit.  Set up accounts with as many of them as you can keep up with (using your company name as the title) and really try to spend some time on it.  Build up friend lists, post useful information pertaining to your business, and send out occasional reminders to your list.  You’ll find lots of other businesses in your city who are doing the same thing and would love to network with you and work on mutually beneficial relationships and lead swapping.

4.  Get free listings with online service recommendation sites like Angie’s List, Merchant Circle, and Super Pages.  Ask customers who were happy with your work to log onto these sites and put in a few good words about your company.  These kinds of online testimonials will go miles in sending you one free construction lead after another that is easy to convert into paying jobs.

5.  Create DIY or informational videos for YouTube and local cable access stations.  If you can make a short and funny business-related video and post it on YouTube you might just be surprised how much local exposure it can get you.  If you’re lucky it could go viral and within a week you could have your business name, number, and web address in front of literally tens of thousands of people (many of them local who could use your service).  Free job leads for contractors are just waiting to be discovered on the internet – you just have to shoot for as much online brand exposure on as many different platforms as possible.  You could also create some short and educational videos about home improvement and submit them to your local cable access station.  Often times they’ll put them on the air to fill the space, and it’s almost always free.

6.  Create and manage a local network of service professionals.  Set up a website called “Premier Service Professionals of (your city here) Club”.  All members of the club would agree to spread the word about all the other members’ services to their customers.  So Plumber Joe would only send painting leads to Painter Bob and vice versa.  It would be totally free for participants.  This is a great way to leverage each other’s growth for mutual benefit.

7.  Call in to your local TV stations on snow days and ask them to include your business in the ticker list of closed businesses at the bottom of the TV screen, even if you don’t have employees or even if you plan on being open anyway.  Why?  Because you just got your business name in front of about half a million people for free, that’s why.  You can do the same thing for radio stations.  There’s no telling how many free construction sales leads you can get out of this tactic.  This one’s borderline ethical but I leave it up to you whether you’d like to add it to your bag of tricks.

8.  Write an article for or ask to be interviewed by your local community newspaper.  Community newspaper editors are usually pretty desperate for interesting stories and content, and they’d probably be receptive to publishing the article you just wrote about remodeling and the importance of keeping your home up-to-date.  Of course at the end of the article would be your name, number, and web address for all in the community to see (for free, of course).  Or if you have an interesting story to tell or your business is about to achieve some sort of milestone try to get them to send out a reporter and photographer.  Who knows, if you’re lucky you might just hit the front page in the following week’s edition!

9.  Have a twist in how you operate your business that will draw local media attention.  For example, you could start a remodeling business that is owned and operated exclusively by women.  Or you could work out a barter system where you build new additions in exchange for cars, boats, or other vehicles instead of cash.  Or you could become known as the construction company in town that only hires military veterans.  You get the point.  Have a hook.  Have a story.  Be original. Soon enough a TV or newspaper reporter will catch wind of it and decide to use you story on a slow news day.  Just one mention on the tube or in the paper and you’ll probably be swimming in free construction job leads.

10.  Give free DIY classes and seminars at your place of business once a week.  You’ve probably noticed that Home Depot offers free DIY classes all the time, but they’re not just doing it out of the kindness of their hearts.  They know that most of the people in those classes will then take a stroll through the store and purchase all the required materials on the spot.  The same idea could work for your service business.  If you have a residential construction company you could offer Saturday classes on everything from painting to tiling to drywall, the idea being that most of them would quickly realize that they have neither the aptitude nor the desire to take on their home remodeling projects.  Of course there you’d be, just waiting in the wings to offer your services for hire.

11.  Contribute your skills to charitable causes and watch the free construction bid leads roll in.  There are always opportunities available to give your time to worthy causes.  You could help build a house for Habitat for Humanity, you could offer a few hours a week of free labor to seniors at your church, or you could help build the set for your local community theater.  These kinds of things always offer you the chance to promote your business and get your name out there, whether it be in a printed bulletin or simply via word of mouth.  People will remember you and your good works the next time they need their basement remodeled or deck re-built.

12.  Reach out to local realtors and let them know that you’d like the opportunity to help their clients.  Once you establish a relationship with one realtor within a company it can often lead to work with others in the same firm.  It costs you nothing to try this other than the time it requires to sit down and compose an email.  For more, check out Jonah’s comprehensive tutorial on getting leads through realtors.

Do I really need to keep going?  Surely you can see by now that there are endless ways to get leads for your business without spending a dime.  They are there for the taking if you can open your mind enough to see them.  Granted, most of these ideas involve spending time instead of money, but for many contractors who are just getting started they tend to have more time than money anyway.  Might as well put that time to good use and start generating your own free construction leads.

This is a guest contribution from Jonah Canter of Canter Construction.

When I first started out with my construction company I actually had zero customers. This is a typical problem when you first branch out into the trade and figuring out how to quickly and effectively gain a reoccurring clientele base is a key strategy to success. I didn’t want to spend money on internet marketing nor did I want to go house to house with flyers. I personally find those types of methods land you window shoppers or those who smell blood in the water and expect you to basically work for free. That is not to say that these are not successful for some contractors but I personally did not find value in them.

I had a couple of neighbors who were in real estate and I had learned that they all needed a contractor who could help them when issues came up with inspection reports. The issues themselves range from minor punch out items to major structural issues. They could not find a contractor who was willing to take the small and the large jobs.. They also had a preference for working with one contractor to repair all the items. The less hands in the process the higher the rate of actually getting through to the closing table. So it dawned on me that I should start to develop a strong relationship with the real estate community in my area.

HARVESTING REALTOR EMAIL ADDRESSES

Harvesting the email addresses of local realtors is a smart way to give your business a boost. It could start with smaller jobs, but if you are professional and do good work then it’s just a matter of time before you start catching some real whoppers.

I started out by going onto the websites and manually harvesting all of the publicly available e-mail addresses. One thing I quickly noticed was that not all real estate companies listed their agent’s emails publicly. Other websites had contact forms they required you to fill out in order to get in touch with the agents. Using a bit of common sense and a little bit of searching I realized that companies, in general, standardize their e-mail naming convention.  For example the email may be @ourcompany.com. If you know that this is the naming convention for the end of every email the next step is to find out how they organize the first part of the email address. A search for the company name and any press releases can be helpful. Usually, press releases will contain the name of a person within the organization for contact.

For instance:

For general inquiries please contact jane.doe@ourcompany.com

For this example you know that they use first name {dot} last name as their email naming convention. From here you are armed with the information that can help you when harvesting clients at this company. Now you can look at the names of the agents and know exactly what their email address should be.

I organized my spreadsheets by the company names and tailored each of my messages specific to their organization. For instance, I had started work for one realtor and in my pitch to his colleagues I mentioned that I work with other agents at your company. This provided confidence that if Agent A was using me they should inherently trust me and at least consider me for jobs. In total I harvested around three hundred leads and sent each e-mail personally. They were all template driven by company and the copy and paste effort this was much better than using an automated email service. Typically, emails from these types of companies are in HTML format and have a high rate of ending up in a person’s junk mail folder.

NETWORKING WITH REALTORS CREATES EXPONENTIAL RESULTS

Out of the 300 e-mails I had 32 replies. Out of those 32 replies I actually picked up 15 new realtors that wanted me to start looking at jobs for them. You may think that is a small percentage at 5% (15 realtors) but that is actually a wonderful response rate and actually 10% if you include everyone who responded in general but may have not given me immediate work.

The immediate impact of this was not apparent until I realized how my network expanded. Agents who were on the buying side and had no knowledge of my company were now hearing that my company was doing the repairs. So I not only gained the selling agent but also work from the buying agent. In the middle of all of that were the customers, both buying or selling who potentially would provide me with more work. It was a wonderful situation to find myself in because in a lot of cases the clients buying the house had ideas for what they wanted to add or update and I was the first person that came to their mind.

In the example above, the one realtor contact I made actually gave me the opportunity to put my company in front of three other people. And at only 15 realtors, say giving me only one job each, that has a potential for 45 new jobs. I can also tell you that if you impress a realtor they will always use you for their own clients, refer you to future clients or within their own internal network of agents. So the benefits of harvesting real estate leads are exponential.

This process lends itself specifically to General Contractors because they are capable of doing a wide range of trade work for customers. Specialty contractors may find results that vary from what I have mentioned since they limit the amount of work they may be able to perform.

I have found no better way to quickly gain leads at zero cost. The key to this is taking the time to compose a direct and professional email that targets what realtors are looking for. It also helps out to have a website with pictures of your work and client testimonials. On my website I also included a tab that was specific to realtors and the needs they have. Remember, they do not know you from Adam so placing silent reminders that you are professional and trustworthy will go a long way in your pitch.

Jonah Canter is the owner of Canter Construction, a full service building and remodeling company. For more information on this article or for general questions you can reach him directly: jonahcanter@gmail.com or visit his website http://www.canterconstructionsc.com

These days, nearly any business in operation needs to have some type of liability insurance coverage to protect itself from being sued.  Building contractors are no exception to this insurance rule.  Plus, this is true for both big construction companies that take on huge projects as well as small business contractors, regardless of the types of projects that are being completed.  This means that even if your contracting business is small and you only do minimal home improvement projects, you will still need to purchase contractor liability insurance to protect yourself.

We have all heard about liability insurance before, particularly when choosing an automobile insurance policy.  In this case, we have the option to purchase full coverage or just liability coverage, which only covers damage that your car may cause to other people or property.  Contractor’s liability insurance is actually quite similar.  For contractors, the liability insurance covers damage that is caused to both property or individuals as a result of the work that is being completed.  This type of insurance policy is appropriate for all facets of construction or building from home building, to home remodeling and even road construction crews.

When starting a new contracting business, we often focus on the planning, financing and marketing aspects that go into a successful company but we often forget about purchasing the required insurance.  It may seem like a hassle or an unnecessary expense; however, when the need for it arises, you will certainly be glad that you took the time to get it before something disastrous occurred.  Without the appropriate insurance, you can risk your business and your livelihood by leaving yourself or your company open to costly lawsuits.

An important part of running a successful business is learning how to minimize risk, and getting contractor liability insurance is a good step in the right direction.

One of the most important reasons to procure liability insurance is purely as a safeguard for both yourself and your business.  Without insurance, any type of accident that causes damage to another individual’s property or to another person can potentially cost you a large amount of money, along with exhausting court dates, and not to mention, it could possibly force you out of business. You cannot plan accidents, which is exactly why they are labeled ‘accidents’.  Obviously, we do not wake up in the morning and intend for any accidental damage to occur at our current project site.  They happen at any time and seemingly at the times during which we are least prepared.  But if we prepare in advance by purchasing liability insurance, we can make dealing with accidents as seamless as possible.  While we do not wish for them to happen, it certainly does not hurt to have a financial plan set in place before a disaster occurs.

In addition, depending on where you live, contractor’s liability insurance may not be an option; instead, it could be a requirement.  Some states require all contractors to purchase insurance before the appropriate governing board will issue a contractor’s license.  In addition, individuals or companies seeking to hire contractors may require proof of liability insurance and proof of a contractor’s license before you are awarded or physically begin a project, regardless of the state laws.  It is actually best to obtain the insurance policy and have an original certificate of insurance in your hand before you even think about bidding on projects, even though many states may allow you to bid prior to purchasing insurance.  Depending on how quick your insurance company works, it may take several days or weeks to physically obtain your certificate and copies are typically not acceptable.  Usually, construction projects have set contracts with predetermined start and finish dates.  Obviously, if you have to wait for your certificate of insurance to come in the mail, you may miss crucial deadlines and as a result, break your contract. So it follows that obtaining the appropriate insurance policy can either make or break your small business construction projects.

When it comes to finding a policy, the liability you choose will be dependent upon a number of things.  First, you will need to research the dollar amount of coverage that your state requires you to have based on your line of work.  These requirements, if applicable, are simply a minimum baseline that you should follow.  However, keep in mind that accidents may occur that could cost well over that minimum coverage requirement and you may have to pay for the excess out of your own pocket when a claim is filed.  So you will need to consider the type of work you do and how much your yearly contracts are worth.  If you are building commercially, you will probably want a policy worth a couple of million dollars or more, depending on the types of commercial buildings you intend to build or work on.  However, if your business is smaller and procures approximately $200,000 in yearly contracts, your policy should probably cover up to three times that amount.

Of course, the dollar amount of liability coverage you need will play a huge role in determining the price you will pay for the insurance policy.  Likewise, similar to the rules on car insurance, construction liability insurance policies will vary in price depending on the danger that the business experiences throughout the duration of the project.  For example, roofing companies should expect a higher rate than other trades, such as painting, simply because of the danger associated with working on roofs.  Other factors that go into policy pricing include the overall risk of damage based on the line of work and the number of employees that the company employs.

Smaller businesses often have a more difficult time in paying for construction liability insurance, which is why finding the best deals can be essential.  The best way to get a discount on your liability policy is to use the same insurance company for each of the insurance policies that you hold.  Often, companies will offer a discount for each policy that you bundle.  Another important factor in getting the best deal is to make sure you are dealing with an honest insurance agent.  Some agents are only looking out for themselves and will sell you any policy, whether you need it or not, just so they can make money.  However, not all agents are like this and many will actually help you determine what coverage you do need and what you do not need.  So before choosing a company or working with one single agent, be sure to perform a quick judge of character before signing any paperwork.  You should also be sure to do your own research before discussing policies with an agent, just to make sure the agent is not being deceptive.

Another option is to use the internet to research small business contractor insurance policy quotes.  Doing research, in general, is always a good idea anyway.  However, these days you can actually get multiple quotes from multiple insurance companies before you ever talk to anyone, as well as overall suggestions for the policies you may or may not need. This can really help you compare and save when it comes to business insurance policies.  The downside is that you will need to determine what you need and do not need on your own.  But if you are not quite ready to search and save on your own, you can also enlist the help of an insurance broker.  These people do not work for insurance companies.  Instead, they work for you to help you get the coverage you need and nothing more.  These insurance specialists are typically professionally licensed themselves and can usually steer you in the right direction without being biased.  The downside is that premiums are usually a little higher when purchasing through a broker.  However, you may rest more comfortably knowing that a professional in the insurance industry is looking out for your best interests.

When seeking out insurance companies, you may quickly be overwhelmed by all of the options.  My favorite way of picking out the good, the average, and the terrible companies is through word of mouth reviews and experiences.  The best way to get a sense of how good an insurance company is, is to ask some fellow contractors about their policies and the companies they use.  Ask for the good experiences as well as the bad and you can make some decisions from there.  Another great source is the Better Business Bureau, which grades companies based on performance, complaints and resolutions.  A quick search on the BBB’s website for the insurance companies you are contemplating to use will give you a general status of their business practices and an overall letter grade between A+ and F, with A+ being the best rating.

Even after doing a lot of research about contractor liability insurance coverage, everything can still be rather confusing.  If you still have doubts about requirements or how to get an affordable policy, you can also check with your state’s contractor license board to get more information.  Even if your state does not require the purchase of insurance, it is still a good idea to obtain a policy anyway to protect yourself and your small business.  You will certainly be happy that you incurred the monthly or yearly expense of a liability policy the next time something unexpected happens during a project.

Maybe you started out as the household handyman and slowly developed a knack for plumbing or maybe you apprenticed as an electrician from your teens, but either way you have honed your skills to that of a true craftsman and realize it’s time to step up your game. Whether you are or are considering becoming a general contractor or a specialized trade, getting your contractor’s license can substantially increase your trustworthiness to prospective clients, not to mention boosting your business potential from weekend spending money to an impressive annual income. This isn’t something to pursue lightly though as the licensure process requires a great amount of dedication, studying, and follow-through, as well as meeting certain stipulations and paying for the testing and/or certifications. Hopefully this article can help shed some light on a somewhat-intimidating process and help you feel better prepared to don your thinking cap (or hardhat).

Do I need a license?

First and foremost, what are your business aspirations? Are you content to be a weekend warrior who slaps up a few coats of paint or fixes the elderly neighbor’s leaking pipes? If so, you’re probably fine just to run a side business. If however, you want to focus on your trade as your primary source of income or increase your business reputation as a solid and reliable company to do business with, a contractor’s license can prove invaluable. Most states have certain stipulations as to what actually requires licensure in regards to the dollar amount of the job at hand. Some states identify certain project costs as a requirement for licensure while other states have classifications of responsibilities and the extensiveness of the project to deem what license would be required. As with most things you can find plenty of companies online that are there to help “ensure” you can pass the tests but the most reliable place to find out the ground rules are with the actual state you hope to be licensed with. All states have a government appointed board or commission of some sort who are in charge of licensure requirements, testing, and certification. It’s fairly easy to find these with a simply internet search based upon your state or the state in which you hope to be certified. Make sure you fully understand any and all fine print in regards to your actual trade. For example, many states have a set of requirements to be a general contractor but slightly different terms for a subcontractor trade (such as masonry, electrical, plumbing, etc.) or to be a construction manager. Some offer “umbrella” licenses, some require independent certifications. It might seem tiring to read all of the legal wording and boring government documents, but being completely armed with the knowledge of what you need to do and how to do it is crucial to your success in the licensure process.

How do I get a license?

Again, this will vary hugely from state to state, but all states have a very set process which you’ll have to follow in regards to your testing and approval for licensure. This information can also be found usually found with the standards and requirements for applying so as you search out the fine print of what is required to be licensed, also make notes on this process as well. If you know of or are friends with a reputable contractor or someone who recently received their license, they could also be very helpful in guiding you in the process. Back to those internet companies…There are numerous institutions and websites who can help you prepare for the testing you’ll have to complete. Some are solely internet based, some mail out materials, and some offer classroom instruction. You definitely don’t want to go take the test and be totally unprepared so finding some sort of study help and guidance is highly advisable. However, make sure that you are dealing with a reliable source and not “Joe’s Contractor License and Cosmo School”. Obviously there are lots of businesses that would love for you to hand over your credit card information so they can help you prepare for the test and then they prepare to max out your card, so be aware. In general though, you’ll be able to tell the reputable businesses by their standards and the materials they can help you study with. It is definitely not a requirement to use an outside study-source to be able to pass the tests, but if you are the kind of person who just knows how to get jobs done and isn’t so familiar with formal rules and regulations, this could really be an asset in helping you prepare. If you aren’t interested in an outside source, consider again asking a friend or mentor for direction as well as looking on your governing state’s website for study and reference materials. Most libraries and bookstores will have general resources as well.
There will be certain applications, paperwork, order of procedure, and deadlines for each state so make sure, again, that you know the requirements and what papers need to go where and when. The actual testing might take place only a few times a year or in only one or limited locations, so make sure you plan accordingly for these details. Also, make sure that you have your legal details worked out and decided on as well, as you’ll have to apply as a sole proprietor, LLC, etc. and in some cases might have to provide more detailed plans or information on your business’s current standings or future projections.

What benefit will I get from a license?

As mentioned before, if you really want to break into the big-time projects you’ll be required to have a license so that the state knows you are truly competent and clients have a certain standard to expect from your work. You will also be eligible to bid on government, municipal, industrial and private contracts which, we all know, can make serious money or provide long-term on-going work. You’ll enjoy a more respected professional “renown” as people will find reassurance in your abilities knowing that you have met and surpassed the state’s standards as opposed to someone who can only claim their abilities. Also, most companies that offer insurance and bonding look more favorably on a licensed contractor since they can rest assured that the state or governing board has weeded out the most dangerous and incompetent applicants. You also will be provided protection from penalties and restrictions, as unlicensed contractors caught performing jobs that should be done only by someone licensed can be fined, forbidden to continue working, or a combination of the two. Not that most of us don’t bend a rule now and again, but it pays to be on the “up-and-up” in this line of work. Also, consumers aren’t actually required to pay someone who isn’t state-licensed, plus there are certain benefits and assistances provided to contractors who might need help with small business plans, finding insurance, or need mediation to settle a dispute with a client.

I’m licensed, now what?

Start making money! Seriously, enjoy your accomplishment and use it to boost your business as you can now move onto more complicated and lucrative projects. Do not abuse the privilege because not only will your reputation be forever tarnished but if you misuse or misrepresent yourself and/or your business it can definitely end in jail time. In some states, if you bid on a project, collect payment in partial or in full and fail to complete the project within the parameters or the contract or agreement, it can be considered a felony. Also, make sure you are well aware of what will be required to keep your license up to date. Just because you’ve been a well-known contractor for 15 years doesn’t mean that the state will just assume you’re going to continue operating. Different states have different amounts of time before licensure will expire and many states will mail out a renewal reminder or application a few months before expiration, however it isn’t the state’s responsibility to make sure you stay current so be sure to set a reminder or mark your calendar well in advance to renew any and all licenses as needed. Obviously in our digital world, many states have online applications and/or renewals so you might be able to renew your license without ever leaving home. A contractors license might seem intimidating to earn, but it is truly an investment in your future and definitely boosts your chances of success so do whatever is necessary to successfully complete the licensure requirements, to keep the license current, and above all, to maintain your reputation as a contractor.