Contract labor companies provide all types of labor at the best possible rates and at the right time. Employers can find any number of employees with just a single call to a contract labor company. To start a contract labor company, you will need to have good organizational, planning, and communication skills. You will also need to understand client requirements and deadlines and meet these requirements at the lowest possible rates.

Things You Will Need
  • Business plan

  • Legal structure

  • Warehouse

Gain experience as a contractor by working in any field related to the construction industry. Identify federal, state, city, and county contractor requirements. Learn skills such as construction methods, blueprint reading, supervising, bidding, and negotiating contracts. This experience will help you operate a successful contract labor company.

Devise a business plan. Include your mission and vision statements, startup and operating expenses, projected revenues for three years, funding sources, and marketing plan and pricing strategy. Identify competitors in your locality and assess your funding requirements. Establishing a contract labor company usually involves huge startup expenses.

Decide on the legal structure, such as corporation or limited liability company. Analyze the benefits of all structures and choose one that suits your requirements. Obtain advice from an attorney if you are unable to choose between structures. Select a domain name and register your business with your state's secretary of state.

Choose a suitable warehouse to store your leftover materials, including wood, equipment, and vehicles. The space should also have an administrative office. Choose the location based on the size of your equipment and vehicles.

Purchase or rent the equipment and machinery. Renting equipment can save you some money in the short term. Inspect all your equipment and machinery at regular intervals. Learn to operate all the machinery and equipment.

Obtain the necessary education, training, and experience to receive a business license to operate in your locality. Check with federal, state, city, and county departments to obtain the necessary permits.

Hire skilled contractors as well as subcontractors, including plumbers, electricians, architects, masons, and landscapers. Make sure that they have their own licenses and a clean background.

Obtain liability insurance that covers your equipment, machinery, and warehouse. Obtain worker’s compensation insurance.

Market your business by joining the local chamber of commerce and other local associations in the construction or human labor industry. Place ads in journals, newspapers, and the yellow pages.


Stay current with the latest developments in the industry.