Are you interested in starting your own construction company but aren’t quite sure how to get started?
Owning your own construction company can be very lucrative. Plus, it can be very rewarding work knowing that you’re helping others build their dream homes or businesses.
But, how do you start a construction company?
Check out this guide to learn how to start a construction company in five simple steps.
1. Write a Business Plan
First things first, you need to write out a business plan. This is one of the most important documents you’ll create when starting your business, and it will help you keep track of your goals and increase your chances of success.
This plan will also allow you to source funding from lenders. Here’s what you should include in your business plan:
- How you plan to structure your construction business
- How you plan to market yourself
- Who your target market is
- The estimated cost to start your business
- How much you think you’ll make in the first year
- The kinds of jobs you’ll bid on
- What services you’ll provide
- What things you need to get started (ie, construction accessories like trucks, a post puller, etc)
If no one in your company has formal writing experience, there are professionals out there who can help you draft your business plan.
2. Register Your Business
After you’ve created a business plan, it’s time to register your business.
Registering your business typically means nothing more than registering your name with your local and state government. You’ll also want to register your business on a federal level. While some states do this automatically, not all of them do.
Once you register on the federal level, you’ll receive a federal tax ID number or employer identification number (EID).
3. Get the Right Permits, Licenses, and Insurance
Once your business is registered, there’s still more documentation you need to take care of. The type of permits you need will depend on the services you offer.
Likely, you’ll need permits for drilling, operating oversized vehicles, and transporting building equipment. You can use this page to figure out the permits you need to apply for.
Your location will play a major factor in terms of the licenses you need on a state level, so make sure to look into your local zoning ordinances. In terms of insurance, you’ll want to invest in general liability insurance and worker’s compensation insurance.
4. Market Your Business
Once you’ve taken care of all of the documentation, it’s time to start marketing your construction business.
At the very least, you’re going to want to set up a website and a Google My Business Page. This will make it easier for locals to find you. It’s also a good idea to set up social media platforms and run ads on them, but you’ll have to see how much room you have in your budget for this.
How to Start a Construction Company: Are You Ready to Begin?
Now that you know how to start a construction company, it’s time to put these tips into action. Before you know it, business will be booming.
Be sure to check back in with our blog for more tips on growing your business.