If you want to put both your entrepreneurial spirit and your ability to work with your hands to good use by setting up your own construction business you must be under no illusions that it is easy – it isn’t. It’s perfectly possible, and it could be quite lucrative, but it won’t be easy, and you must be absolutely sure that you’re ready for the challenge before you proceed.
If you do think you’re ready, here are the foundations you need to lay to build a successful construction startup:
Build a Business Plan
Before you do anything else, you should create a business plan that clearly defines the goals of your business, along with detailed instructions about how you’re going to make them happen. This will help you to meet your goals and convince the banks to lend you the capital you need to startup.
Cover the Legalities
If you want to convince customers to choose your construction business over others, then you need to show that you’re responsible and above board by ensuring you’re compliant with all of the state and national laws and by also ensuring that you also have the relevant permits, licenses and certifications to operate in your state (every state is different). A lawyer is your best friend.
Get to Grips with Taxation
Nest, you’ll want to get your tax ducks in a row by hiring an accountant who can tell you what documentation you will need and how much tax you will have to pay.
When you work in construction, you absolutely must have liability insurance because all of that heavy machinery and those sharp tools can pose a risk to you, your staff and the general public. If you don’t have insurance in place, that could lead to lawsuits and the end of your business before it has even started. Meet with an insurance agent and be sure to get all of the coverage you need.
Invest in Tools
If you’re in the construction business, you’re going to need plenty of tools and equipment to get the job done. You can either buy these new, at a discount from heavy equipment auctions near by or by leasing them. Whichever option you choose, you should absolutely make sure that you are using the best tools you can afford because cheap tools don’t perform well and are more likely to break, costing you more in the long-term.
When you’re just starting out, you may be able to run your operation from your home because you will mostly be working location anyway, but once you see your business start to take off, you’re going to want to find a commercial premises from which you can run your operation and store your equipment.
Choose Between Employees and Contractors
When the time comes to hire employees, you have a choice between hiring full-time staff and contractors. Contractors offer the most flexibility and the lowest costs because you only need to pay them as and when you need them, so they are often the best choice in the beginning.
If you lay the above foundations and you market your construction business extensively; you will have all of the makings of a successful business on your hands. Good luck!