The Bureau of Labor Statistics notes in its Career Guide to Industries that the average earnings in construction are higher than the average for all industries. That is especially true for those at the top: In a wide array of construction fields, including masonry, roofing, or painting, it holds true that the average annual wage for chief executives is in the six figures.
So, it's easy for potential entrepreneurs to see general contracting as a good type of business to start. But, as in most jobs that pay well, there is a reason for that: It's not easy to break in. "Trying to get in that business—except if you have a specialty—is one step toward insanity," says George Cloutier, founder of small-business advisory group American Management Services.
It's such an insane business, Cloutier says, because you have to vie with a lot of competitors in order to be one of the contractors to make a good profit. "You've got to hire the right people, you underbid the contracts—it's just one thing after another," he says.
And that's not even taking into account the current housing slump, which appears not to have bottomed out yet—making construction an especially risky industry right now.
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