Are you thinking of starting a construction company? Do you dream of being your own boss, but worry the process will be a nightmare?
Don’t be overwhelmed by the process. It may look like a lot, but it’s not impossible. Just take things one step at a time and you’ll be running your construction business in no time!
Here are 5 of the best tips for construction companies.
1. Research the Local Construction Market
Your first step is to take a look around and see what the construction market is like in your area. Who is your competition? What are they doing well? More importantly, what are they not doing well? Find what’s missing in your market and you will find your niche.
There are other items to look into as well. What is the current state of the industry in your area? Are there growth opportunities or is the market stagnating? How much of the market share can you capture? How should you price your services?
Knowing what is happening with your competitors will provide lots of answers to what and how you can place yourself in the local market.
2. Write Your Business Plan
Everyone starting a construction business, or any business, needs a business plan. Whether you plan on having 500 employees or being a sole proprietor, this is one of the most important steps you will take.
A business plan will lay out exactly how you intend to run your business. It should include things like:
- Business Entity – how you will structure, how many employees will you have
- Market – what services you’ll provide, who your customers are,
- Financials – how much it will cost to start and run your business, how much you expect to make in the first year, the first five years.
3. Funding for Starting A Construction Company
Once you have your Business plan put together you can go after funding. Most new construction businesses need some sort of financial backing. They will need construction equipment, tools, and vehicles. They’ll also need to pay for licenses and insurance.
There are a variety of ways to find financing. From personal savings to private investors to bank and government loans. The Small Business Administration is a great resource to start your search for business financing.
And you can shop here to find the construction equipment you need for your new company.
4. Insurance for Your Company
Make sure your construction business is covered in an accident. Have your business insurance in place before you start any job.
General liability will cover any accidents or injuries that happen on your jobs. Property insurance covers anything that is broken or stolen. If you have any employees, then you’ll also need workers’ compensation insurance for them.
5. Get the Right Licenses for Your Business
Your city and state will require specific licenses for you to run your business. Check with your local Department of Labor to make sure you know which ones you need.
Most states will require a General Contractors License. And if your business includes any specialty work like HVAC, carpentry, electrical, or roofing work you may also need a Specialty Contractors License.
Get Up and Running Today
You already knew how to work in construction, but know you also know how to start a construction company. Just follow these construction business tips, and you’ll have everything set up properly to get your business started.
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