Getting a contractor license can feel like the “hard part” is over. Then a neighbor asks for a quote, a realtor wants a quick repair, and the real challenge shows up: picking the right first jobs, charging enough to stay afloat, and getting paid without constant chasing.
Passing the exam with a contractor online course puts the license in hand, but the first few months can still feel messy. Contractors Intelligence School may cover the exam path, yet day-to-day business choices decide whether early projects build momentum or blow up the schedule.
Your First Jobs Set the Tone: Choose Them Like It Matters
Many new license holders picture a big remodel right away. However, the smartest first wins are often smaller and cleaner: a bathroom refresh, a fence replacement, a punch list for a realtor, or a few days of repairs for a property manager. These jobs create photos and references, and they teach how long real work takes when permits, deliveries, and surprises show up.
The first project also sets a pattern. A rushed “yes” can lock in a bad schedule for months, while a well-chosen job can lead to steady referrals. Therefore, treat the first three to five projects like practice for the business side, not just the tools.
Before bidding, gather the basics and write them down. That is the simplest way to cut down arguments later:
- What exactly is included, and what is excluded?
- Who buys materials, and who handles deliveries and returns?
- Is there a permit, inspection, or homeowners association approval that can slow the job?
- What is the start window, and what is the “must-finish-by” date?
- Will subcontractors be needed, and are they available in that window?
If any of those answers feel fuzzy, pause. A client who cannot describe the work clearly often cannot approve changes clearly either. Moreover, unclear scope usually turns into unpaid time.
A simple rule helps when choosing early jobs: take work that matches current skills and tools, not work that only sounds impressive. Experience grows fast, but cash can disappear faster.
Pricing That Covers Real Costs, Not Just the Visible Work
New contractors often price by copying local numbers or guessing what “sounds fair.” That approach can sink a business even when the work is good. Pricing has to cover both the job and the business around the job: office time, driving, tools, insurance, licenses, bookkeeping, and the weeks between projects.
Start with job costs. Materials and subcontractor quotes are the obvious pieces. Labor is trickier because it includes more than hourly pay. It includes payroll taxes, workers’ compensation, load-up time, cleanup, and the runs for missing parts. Add overhead next, then add profit.
Here’s a simple example. Suppose a small repair has $1,200 in materials, $800 in subcontractor help, and 30 hours of labor. If true labor cost is $45 per hour once job-related costs are counted, labor is $1,350 and direct cost is $3,350. Add overhead and profit, and the price is far above “materials plus a little.” That number is not padding; it is the math that keeps the business alive.
This is also where a contractor license course can help after the test, because many courses explain estimating terms that show up in real bids, like change orders and progress billing. Still, the best teacher is tracking every job and comparing planned hours to actual hours.
To tighten pricing, write a short bid in plain English. Include scope, key materials, start window, payment timing, and what counts as a change. Clients may not love paperwork, but they love fewer surprises.
For longer jobs, consider milestone payments instead of one final bill. A deposit plus payments tied to visible progress can keep materials funded without turning the project into a cash crunch. If local rules limit deposits, follow those rules and adjust milestone timing instead.
Cash Flow: The Part That Can Break a “Busy” Contractor
Profit on paper does not pay the crew next Friday. Cash flow is about timing. A job can look profitable and still cause stress if materials are paid today but the client pays 45 days later. Thus, early contractors should treat cash planning like a weekly habit.
Start with a simple system: separate business money, track bills and expected payments, and review it every week. Many owners find it helpful to read a plain guide on cash flow while building their first schedule, because it connects the calendar to the bank balance.
Next, build payment habits that reduce chasing. Send invoices fast, write payment dates into the contract, and confirm what “paid” means, like check mailed versus funds received. For jobs that take weeks, tie payments to visible progress, not vague dates. However, keep milestones simple, so they are easy to approve.
Taxes can surprise new contractors too. Set aside money from every payment, even when work is slow, and track deductible costs as they happen, since business expenses are easier to handle with good records than with a shoebox of receipts in April.
Moreover, watch for the quiet drain: small unpaid tasks that pile up. A quick patch outside the scope or an extra run to the store can turn a good job into a thin one. That is why pricing and cash flow are linked.
Finally, keep learning beyond the license. A contractor license online course can be a solid starting point, but the first year is really about building repeatable habits: clear scope, honest pricing, and steady billing. Do that, and the work starts to feel more predictable.
Final Thoughts
Getting licensed is a major step, but the real stability comes from habits built on the first jobs. Pick early projects that are clear and manageable, price them using real time and real costs, and set payment rules that keep cash moving. Therefore, each project becomes more than work. It becomes proof, practice, and a stronger base for the next bid.
