What is one of the crucial steps a contractor must take before starting their business?

Arranging financing is a critical step for a contractor before starting their business because it ensures that they have the necessary funds to cover startup costs, operational expenses, and any unforeseen expenses that may arise during the initial phases of the business. Financing can come from various sources such as personal savings, loans, or investors, and it is essential to have a clear financial plan in place. This planning allows contractors to budget effectively, make informed decisions about their projects, and navigate the financial demands of running a business successfully. Without adequate financing, a contractor may face challenges that could hinder their ability to start or sustain their operations.

While having a college degree can enhance a contractor's knowledge and credibility, it is not strictly necessary for running a contracting business. Hiring supervisory help may also be beneficial, but it comes after establishing the financial foundation of the business. Joining organizations like NECA can provide networking opportunities and resources, but securing financing is fundamentally crucial to the viability of launching and operating the business effectively.