Get to know your direct competitors and big companies in your industry, and stay on amicable terms with them. The reason: they could become a source of business for you either by referring jobs they can't or don't want to do, or by subcontracting out parts of big projects to you.

Under a subcontracting arrangement, you do the work on the customer's project on behalf of the prime contractor (the prime contractor is the lead contractor on a project.). Depending on the arrangements for the job, you may communicate directly with the customer or only with the contractor that gives you the work. In either case, you benefit by getting jobs and establishing a track record for completing them. You can also learn a lot about how an industry works and make contacts that can lead to contracts at some future date.

Subcontracting isn't without it's drawbacks, though. You may make less profit as a subcontractor than you would if you won the job on your own. You'll also have to rely on the prime contractor (the company that subcontracted the work to you) to get paid. In some cases, that may mean you won't get paid until they get paid by the customer. (Get the details up front in writing before you do any work).

Furthermore, subcontracting can limit what business you can accept or chase on your own. If you solicit or accept work from businesses you know to be active clients of the prime contractor, you'll develop a reputation for being unethical and untrustworthy.

Still, subcontracting can pay off - particularly if you're just trying to establish a name for yourself, or are trying to do business with a government agency.

More >> Knowing When to Outsource

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