When you make the decision to start your own company, there’s always some bit of doubt running through your mind, especially when considering starting your own construction business. Thoughts of whether or not you’re really cut out for the industry and if your company will even be successful… It’s perfectly normal to have those thoughts but with the right mindset, resources, and guidance, you will be able to start your own construction business in no time.
One of the biggest concerns entrepreneurs face is wondering if it’s the right time to start their particular business, which is a valid concern but in the construction industry, there isn’t a better time than now to start your own construction business! According to the American Institute of Architects, back in 2018, it was projected that the non-residential construction industry was supposed to grow by 4% in 2019 and now we’re well into 2019 and business is booming!
The Time is Now
So, if you are truly interested in starting your own construction business, don’t wait, do it now while banks are more willing to hand out business loans and interest rates are fairly low. You not only want to consider business loans but you might also want to look into obtaining surety bonds from construction bond companies. This would be more of financial security to ensure the project contractual agreements actually happen. Companies like Blogger Local is a great resource to help you in finding the right one for your business needs.
As you can see, there is a lot that goes into learning how to start your own construction business and it’s not all about the financial side of things either. You need to know how to draft a business plan, determine your federal and state regulations, and create an awesome marketing strategy… those are the things that will set your business apart from the rest. The journey won’t necessarily be an easy one but if you follow these simple steps, you won’t experience as many bumps along the road.
First Things First… Draft Your Business Plan
For every successful business, there was a business plan drafted up first. Your business plan not only puts your business ideas on paper to make it a reality but it also is that reality check to make sure that the ideas you have are realistic, makes sense, and will produce actual revenue. Your business plan should state how, when, and why you are starting your construction business and it should also lay out the details of the steps you intend to take to make your plan a reality.
Drafting a business plan really isn’t that difficult either. You don’t have to be a literary genius to create one but some of the really important parts of your business plan that you definitely do not want to leave out include:
- The basic concept or summary of your business
- The strategies you’re going to take to reach the goals of your business
- The products and services you’re offering and why they’re better than competitors
- Your target audience
- Projected expenses and return on investment
Getting Your Business Registered
Once you have your business plan drafted, you then need to determine the rules, regulations, and licenses you’ll be required to have in your business location. Your particular state, city, or town probably has very specific laws in place that you need to be aware of and make sure your business is within the realms of those laws. In order to get registered, you’re going to need a few things:
- A Business Entity: This is the first step you’re going to make towards making your business a reality. The most common is an LLC (limited liability corporation). This covers your personal assets and provides different options to pay your business taxes.
- Apply For the Necessary Licenses: With it being a construction business you’re starting, you’re definitely going to need certain licenses to even be able to work in your city or town. For example, you would need an HVAC license in order to install HVAC equipment.
Getting Your Business Insured
In order for your business to be in compliance with the law, you’re definitely going to need business insurance. The construction industry is an industry with high risks for injuries, accidents, and other possible incidents that not having insurance would be business suicide in a sense. So, getting your business insured is one of the first things you want to do.
Financing Your Business
Looking into small business loans is going to be your better option to have the finances to actually get your business running unless you have the cash on hand. This is a great option because the overhead costs for a construction business are quite costly but luckily, there are so many loan options out there for you that offer large lines of credit and loans that will give you a large lump sum of money at once. Regardless of the need, you may have, there is a loan out there that will help you get your business running from start to finish.
Financing Your Equipment
There are tools that every construction worker will need and there is equipment that every construction business will need as well. Again, unless you have the cash on hand, you’re more than likely going to need to finance your construction equipment. This is a great option for construction business owners, especially in the aspect that there are loans out there that don’t have strict credit history requirements.