What Contractors Need to Know to Succeed in Business

Nashville Contractors are independent entities that agree to supply services according to a contract for a fee. They operate much like business owners and typically earn more working as contractors versus employees of the company they represent.Contractors

They provide access to specialized skills that companies may not have in-house and allow businesses to scale their resources as needed. They are responsible for delivering quality results that meet or exceed client expectations.

A good job description is a critical tool for recruiting the right type of candidates. If the job description is too vague, it can attract people who are not qualified for the position or have a different career path in mind-an expensive mistake for the company. A poorly written job description can also give applicants the wrong impression of company culture. Use neutral pronouns when writing the job description, such as “they” or “it” rather than he/she or you.

Use a list of the job’s key responsibilities and duties to draft a comprehensive description. Ensure that it is short and concise-research shows the best job descriptions contain 250 to 500 words, according to Built In. Include a brief description of the company and its goals. If you need to add more detail, do so sparingly. Too much information can bore or confuse applicants, while too little can leave them wondering what you are looking for.

Make sure the job description describes the work that is actually done, not what it ought to be. The work that is actually done can be compared to the prescribed tasks in a periodic performance review, and adjustments made if there are discrepancies between the two.

Contractors often provide fresh perspectives and new ideas for business projects. Their exposure to other industries and projects helps them to think outside the box, challenging current norms. They can also speed up project timelines by providing specialized expertise and focused efforts.

A contractor’s job description should include their skills, training, certification and previous experience. It should also indicate whether they will be working on a contract basis or as an employee, and what type of work is involved. The employer should note the physical location of the job and the type of contract-full-time, part-time or temporary. They should also be clear about the salary offered, and if there are any benefits such as healthcare or paid time off. The final section should state who the position reports to and how it fits into the overall team structure.

Getting Started

Contractors bring technical aptitude, cost-efficiency, and flexibility to construction projects. They also have a unique skillset that may include management and business administration. However, starting a contractor business isn’t without its challenges. There are many different steps involved, from creating a business plan and getting the proper licenses to building a team and establishing credit. Ultimately, the key to success is to be as fluent in the business side of things as you are in construction.

Licensing requirements vary by state, but most require education, training, and a passing grade on a licensing exam. Some contractors choose to complete a degree program, while others follow an apprenticeship path or demonstrate their work experience. Once licensed, contractors can build their reputation by listing their credentials on their website and marketing materials. Some states even provide their license numbers on public lists of contractors, which helps potential customers find them.

Operating as a contractor involves managing the company’s financials, including tracking expenses and cash flow, and creating budget estimates. This is a critical part of the job, as accurate budgeting helps prevent cost overruns and ensures that all aspects of a project are considered. In addition, it is important to maintain a reserve fund for unexpected costs.

Additionally, contractor businesses need to implement efficient invoicing and payment systems to ensure timely client payments. To streamline these processes, many companies utilize financial software that eliminates manual data entry and reduces the risk of error. Moreover, regular financial audits and consulting with finance professionals can help identify opportunities for improvement and improve the bottom line.

Another important aspect of the job is maintaining insurance coverage. In the event of an accident or damage, it is essential for contractors to carry adequate liability and workers’ compensation insurance. Some insurance providers offer packages that combine these coverages, making it easier for contractors to get the coverage they need. Additionally, it is a good idea to establish an Employer Identification Number (EIN) for the contractor’s business. This will help separate the contractor’s personal assets from those of the business and protect them in the event of a legal dispute.


Contracts are a key tool in every business, helping to ensure that parties agree to a certain set of terms. They can be verbal or written, but are effective when they clearly state a clear offer and acceptance of an agreement by both parties, are signed to show this, and are legally binding once they’ve been created.

Contractors, sometimes also known as freelancers, are independent workers who operate on a contractual basis and work for various companies and organizations on projects. Unlike employees, contractors do not have to be on the company payroll and they aren’t entitled to employee benefits such as health insurance, vacation leave or retirement plans.

As a result, contractors typically have more uncertainty about their income and may face financial challenges when working on contracts that are shorter than expected or when they are unable to secure new work. It is important for contractors to be able to negotiate their rates well so they can make sure that they are getting paid a fair rate for their skills and experience.

For businesses, contracting can be an effective way to add specialized expertise for short-term projects or areas of the business that fall outside of their core competencies. In addition, it can allow for more scalability and flexibility within the company and free up resources that would otherwise be consumed by hiring and onboarding permanent staff.

In terms of contracts, it is a good idea to have a formal agreement between the contractor and company in place that outlines the details of the project, how long it will last, and what work is to be completed by the contractor. If a formal contract isn’t possible, it is still important to have other documentation such as emails or quotes which can help identify what was discussed and agreed on.

Some contractors use a standard contract that is commonly used in their industry. This can be helpful as it can reduce the amount of time spent creating a contract from scratch and it also provides some peace of mind that the contract is enforceable in court should there be a dispute over what has been agreed upon.


Contractors need to be paid for their work in a timely manner. They might not be able to meet client expectations or fulfill their contracts on time if they are waiting too long for their payments. That’s why it is important to discuss payment rates with contractors before they start working on a project. This can help avoid disagreements or problems down the road.

The best way to pay a contractor depends on a few different factors, including how much and how often you want to pay them. You’ll also need to consider whether you want to use a paper check or an electronic payment method. Many contractors prefer electronic methods, which can save both parties time and money.

Electronic payment options can include ACH (Automated Clearing House) transfers, wire transfers, or online payments platforms. Direct deposit is another popular option, as it’s fast and convenient. In addition to being quick and easy, these methods offer the added benefit of being highly secure. If something goes wrong, your contractor can always file a claim with their bank to get their money back.

If you do decide to use a paper check, keep in mind that it can take some time for the contractor to receive their payment. This is because a check has to be mailed and then deposited, which can cause delays. Some checks may even be lost in transit, which can require you to reissue the payment and create more work for everyone involved.

Credit card payments are a good option for contractors, as they are usually processed quickly and offer the added benefit of being highly secure. However, the contractor will need to have a merchant account with a bank or alternative merchant service in order to accept them, which means that this option might not be feasible for every contractor.

Independent contractors are responsible for paying their own taxes, so ask them to provide you with a W-9 form before starting work. This will let you know their tax identification number so you can properly report their earnings on Form 1099-MISC at the end of the year.