Are you currently working in construction and dreaming about running your own business?
What’s stopping you?
If you’re not sure how to start a construction company of your own, it’s not as tough as you might think. With a little grit and determination, you can make it a reality.
And we’ve got the basics to get you started.
How to Start a Construction Company
Before you begin putting out the word that you’re starting your own company, you’ll want to lay the groundwork.
Here’s what you need to do:
1. Research the Marketplace
You’ve probably already noticed the state of construction around where you live. Hopefully, you’re seeing new construction or an increased call for home renovations.
This might have been what inspired you.
Even so, you’ll need to do some research. So do some research with the US Small Business Administration. And by all means, talk to construction owners and residents to get a feel for construction needs in your area.
2. Create a Business Plan
It’s crucial you know exactly why, when, and how you’re starting your business. Drafting a business plan helps to clarify that the fundamental ideas behind your company make sense, and can actually make you money.
Once you create a plan, be sure to show it to other business leaders or mentors you trust. And be prepared to make adjustments along the way.
In addition, you need a plan for how you’re going to fund your company, which brings us to the next step.
3. Get Funding
There is a multitude of costs associated with starting a construction company.
Depending on what sort of capital you have, these costs can vary dramatically based on where you operate and what services you provide.
Remember that you’ll need money for advertising as well as paying bills and salaries.
Your funds will also need to cover expenses toward buying vehicles, equipment, and tools. You may need to start with leasing some of that equipment. For example, you may find it more beneficial to rent a forklift or other machinery rather than buy it right out of the gate.
Either way, you’ll need to budget for that.
One great way to get additional funding is through loans. Check out grants.gov to see if your business may qualify.
4. Pick Your Location
While you can initially run your construction business out of your home, you’ll need an actual location at some point.
It doesn’t have to be a whole building. You really just need a place where you can store your tools, equipment, and supplies. And as far as communications, you can get by with your cell phone and a P.O. Box to start.
5. Register Your Business
Once you’ve got our location figured out, you’ll need to know the rules, licenses, and registrations required there.
Your state, county, or town may have specific laws in place, so you’ll need to be fully aware of everything you need to do to get started. And these can vary widely.
In one locale, it may be as simple as being a recognized contractor. While in another, you may need licenses to specific jobs or even bid on government contracts.
And while you’re registering, be sure you get the proper insurance as well. You’ll be working with heavy machinery, electricity, and all sorts of other equipment that could do some serious damage.
Be Your Own Boss
We hope the above tips on how to start a construction company help to make your dream a reality. And we wish you the best of luck!
And for more great advice and helpful tips on all things business, keep checking back to our regularly updated blog.