Managing Expert Subcontractors

A story about starting a general contracting business by managing expert subcontractors rather than doing the work directly. The approach focuses on getting jobs and then finding qualified people to complete them while maintaining a profit margin.

Key Points:

• Business Model:

  • Get contracted for specialized work (like electrical)
  • Find qualified experts who can do the actual work
  • Subcontract the work to them
  • Keep a margin between what client pays and subcontractor cost

• Key Learning:

  • Don't need to know how to do the technical work yourself
  • Focus on getting jobs and managing relationships
  • Build a network of reliable subcontractors
  • Success comes from coordination rather than technical expertise

• Real Example Outcome:

  • Strategy led to successful general contracting business
  • Generated close to $1 million in revenue
  • Proved viable as first successful business venture
  • Served as springboard for future business opportunities

• Core Insight:

  • Value comes from organizing and managing rather than doing
  • Better to coordinate experts than try to become one
  • Focus on business development and relationship management
  • Let specialists handle their specialized work