5 Steps for Successfully Starting a Construction Company
Taking the first step towards starting your own business can be an exciting, if not daunting task.
This is especially true in the construction industry. With so many rules and regulations to learn and implement, it can seem overwhelming.
The good news is that the construction industry is considered an essential service. People will always need things to be built.
We want to get you and your new construction business off to a flying start. So we’ve compiled the best 5 steps for successfully starting a construction company.
Here’s What We’ll Cover:
1. Do Your Research
One of the basic steps towards starting a new business is knowing your market.
One of the main reasons that small businesses fail in their first year of business is because they didn’t learn their target market.
So the first question you should be asking yourself is whether you can fill a gap in the market.
Does your area even need a new construction company? Are you joining a saturated market? Can you compete with the major players in the industry?
Doing your due diligence, cornering your market analysis and knowing everything you need to know about your industry. This is the first step towards a successful venture.
2. Write a Detailed Business Plan
Every good business started with a good business plan.
Whether you’re looking to entice investors or merely wanting to put everything down on paper. A business plan is a fantastic way to help formulate your business.
Many budding business owners find great value in taking the time to really hone in on their idea and lay out their various plans for the business.
They are also a great way to set long-term goals to keep your business viable.
Writing a business plan isn’t as complicated as it may seem. If you know what you want to do and have done the right research, you can put together a solid business plan in a matter of hours.
3. Register Your Business
Once you’ve finished up your business plan and you are happy with it, you’ll need to make your business legal.
You will have to look into the rules, licenses and registrations required for your business.
This is especially important in the construction industry. This is due to there being a number of requirements before your business can be considered legal.
These requirements for building permits tend to differ state by state, so check your local laws before you start.
4. Insure Your Business
The construction industry is an inherently dangerous business.
You will be working with heavy materials, large machines, electricity and power tools.
Therefore, an essential step to take is making sure that you and your business are protected from any potential incidents.
There are two different types of liability insurance that you will need to look into:
- Business Insurance: This is vital and in most cases a legal requirement. It will protect you against worksite injuries, accidents and any other incidents that may take place.
- Employee Insurance: If you plan on hiring employees then you will need to look into employee insurance. This includes workers’ compensation, unemployment insurance and state disability insurance.
5. Finance Your Business
Part of your business plan will involve your financial forecast. But you will also need to put some thought into how you are going to fund the initial output of your business.
Construction is an expensive business with high overheads. So will you be able to rely on self-funding? Do you need to look into attracting investors? Or will you need to take out a number of business loans?
These are all things that you need to heavily consider before you start your business.
As a sole proprietor, starting a business doesn’t need to be a daunting task.
By taking the correct steps, starting your own construction business can be an exciting and lucrative venture.
Be sure to take the time to learn everything you need to know. As with careful planning, you are one step closer to running your own successful business.
Are you looking for more business advice on everything from starting a new business to new business practices?
Then check out the FreshBooks resource hub.