Starting Your Own Construction Business: The Dream of Being an Independent Contractor

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Starting Your Own Construction Business: The Dream of Being an Independent Contractor

Published by Edith Yanez in Own Company · 12 October 2021
Starting Your Own Construction Business: The Dream of Being an Independent Contractor

According to the press release published in January 2021 by the United States Census Bureau, the number of Hispanic businesses had grown by approximately 3% since 2017, reaching approximately 5.8% (331,625) of all businesses in 2018, with an estimated $ 455.6 billion in annual revenue, about 3 million employees, and about $ 101.1 billion in annual payroll. Hispanics are starting businesses at a faster rate than the national average in almost all industries and have increased their income an average of 25% annually in the last 2 years.

What is striking about these statistics is that, of the total number of Hispanic companies, 40% are owned by women, which means an increase of 20% compared to 2015. The main driver of this trend is the difference in salary between a Hispanic woman and a non-Hispanic man. For every $ 1 that a non-Hispanic man receives, Hispanic women only receive $ 0.54 for doing the same job.

Hispanic entrepreneurship does not stand still or flinch, despite language barriers, a shortage of capital, and a lack of access to financing. According to the 2020 State of Latino Entrepreneurship Report published by the Stanford Graduate School of Business in collaboration with the Latino Business Action Network, only 1 in 5 Hispanic entrepreneurs are approved for a $ 100,000 loan compared to 50% of entrepreneurs’ American people.

These statistics show that Hispanics long to be entrepreneurs and work independently. Some say, "be my own boss." That statement is not accurate as customers are the real rulers, but that's not the point here. Starting a business, finding customers, and meeting their needs requires long working hours and many times working weekends, especially at the beginning. This is the time when the businessman/woman works as a one-man/woman orchestra; a single person playing all the instruments; the guitar, the piano, the violin, and the trumpet, because there are enough resources to hire personnel.

Being an entrepreneur is one of the most complete and demanding activities that exist, but if all goes well, it’s also one of the best paid. The business owner must know not only how to do the job, but he/she must also know about sales, business administration, taxes, costs, hiring of personnel, and law, among others. In addition, he/she must be organized, efficient, punctual, and know how to deal with clients, especially the difficult ones.

In the construction industry there is a belief that Hispanics know how to do their job on the construction site very well but have problems handling the office work. In fact, when speaking with the representatives of the large companies, they say; there is disorganization with the handling of estimates, change orders, and invoices; there are difficulties in communicating in English; mistakes are being made because employees cannot read blueprints, etc.

In my opinion, many of these problems lie in the fact that the entrepreneur does not grow at the same pace the company does. That is, the business owner does not adjust his/her functions to his/her new position and continues to do what he/she did before. The new role requires him/her to focus on finding new businesses and managing projects, delegating day-to-day functions to the workers, who obviously must be trained. This will allow the company to have a healthy flow of new projects and keep the people busy. It is difficult to retain employees when there is little work.
If you ask me, I would say that there is nothing more rewarding than being a business owner, despite the sacrifices that are made in the beginning. The fact of having much more income than working for a salary and having time is everyone's dream. But the important thing is to do things well; focus, prepare, have a work plan, and be advised. This is where the key to success lies.

This initiative aims to help you along the way with everything you may need to grow with your business.

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