If you are interested in construction and want to start your own business then this is for you. In this article we will cover the basics of how to start a construction business and provide you with some useful tips for starting your own business. Starting your own company can be quite a profitable venture provided that you approach it with careful planning and a “can do” attitude. Keep in mind that it is not just the company that you will need to be able to manage, but your employees as well. An even temperament and the ability to think clearly and analytically are important if you plan on starting your own construction business.
- Write up a business plan listing the services you will offer, the tools, equipment and personal protective equipment such as men’s and ladies safety shoes that you will need to purchase, and the cost of hiring labourers. Once you have written all of this down you can estimate your budget as well as decide if you need financing. It will also help you see if there are any gaps in your plan of starting your own construction business.
- Register your business and consider setting it up as a corporation, limited liability company or a limited liability partnership as this will help protect your personal assets. Speak to professional for more information on which of these will best suit your needs.
- Determine how much finance you will need and where you will obtain this from, e.g. a private investor or a bank or personal loan. You will need to have finance readily available to pay for tools, materials and labour.
- Obtain the required licenses and permits, including a contractor’s license.
- Get adequate insurance is vital if you want to start a business in construction. You will need general liability insurance, bonding insurance, auto insurance and workers’ compensation. However, it is advisable to speak to an insurer to see if there is any other insurance that you should have.
- Purchase the basic construction tools that you will use every day. Larger tools and machinery can be hired on a per-job basis. You may also want to hire small office space to meet with clients and store documents, building plans, etc.
- Brush up on your cost estimation skills. Knowing how to start a construction business is one thing but you then need to understand cost estimation and bidding in order to secure contracts.
- Hire experience construction workers and tradesmen who offer quality work and purchase high vis workwear for them. You will also need someone to manage your crew on the construction site if you do not plan to be there yourself. You may also want to get to know reputable sub-contractors in case you may have too much work to handle on your own.
- After you have got past the how to start your own construction business, you can start to advertise your services. Business cards, flyers, newspaper ads, websites and so on will make people more aware of your business.
- Start working, do your best job possible and the word about your professionalism will soon spread.
We hope this helps your plans to start a construction company.