The construction industry is thriving in all parts of the globe. So, it is not surprising that more entrepreneurs are starting construction businesses of their own. Although it may seem exciting, starting a construction company requires careful planning and research.
Like any business venture, starting and managing a construction company comes with its own challenges. One of the biggest challenges is keeping your workers safe as the construction industry is considered to be one of the most dangerous.
Besides that, it is important to do thorough market research in order to stay on top of the latest trends and technologies used to make construction work easier.
If you want to join the entrepreneurs that are looking to achieve success in this field here’s how.
Prepare a business plan and secure funding
Writing a solid business plan is the first step in launching a profitable business. The chances of success are low if you don’t have a strategy or a plan to lean on.
Given the unpredictable nature of this business, you should write a business plan to outline your company’s goals and include sections on potential customers and marketing strategy plans.
You can use an online template to help you write the perfect construction business plan that will speak volumes about your professionalism. This will allow you to communicate your business goals effectively with your team and secure funding.
With the help of a business plan, you can captivate every bank and potential investor to secure the right funds without any particular problems.
Build a strong team
Once you have completed your business plan it’s important to start thinking about surrounding yourself with the right people that will push your business forward. Look for trustworthy people with impeccable work ethics that will dedicate themselves 100% to your business.
But this is usually easier said than done. To find the best candidates, you should outline what they will do and provide detailed descriptions of each and every task.
When recruiting people, consider using professional and trustworthy websites like LinkedIn to ensure that you are going to employ a worker of quality. You can always ask for references and conduct background checks.
You’ll also want to offer competitive wages to hire top talent, so be sure to stay up to date on market wages in your industry by using sites like Payscale, or industry-specific salary guides like this HVAC Salary Guide from Jobber.
Get the right permits
Construction work is one of the most dangerous vocations in the United States and it’s only natural that there is a myriad of papers that you will have to obtain before starting your business.
First, you need to register your company so that you can obtain profits legally. Make sure you visit the IRS website to get more information about how to properly register your company.
After that think of a name and a captivating logo to represent your business services.
Next, choose the structure of your company whether it is a corporation, a limited liability company, or sole proprietorship.
Check zoning ordinances to see if there are any restrictions in your area, as well as certificates of qualification for all construction workers and permits for equipment and vehicles. You will also need permits for building, health, signage, and much more.
Also, you should consider investing in business insurance to protect yourself and your employees from any liability such as workplace injuries or accidents, and familiarizing yourself with the Construction Industry Scheme to make tax deductions on behalf of their subcontractors, which both are quite common in the construction industry
Offer your services
Now that your business is registered and fully functional with a strong team to back it up, you can start thinking about taking on your first contract.
At the start, think about taking on easy to medium difficulty contracts to see whether everything is in order and whether your team functions properly.
Taking on big contracts might be your downfall as you may still haven’t got the necessary experience.
To help your business grow organically and find clients much faster, you can create social media channels where you can offer your services to potential customers. It’s also worth building a website so that everyone can see your contact info and location.
Building something from scratch is never easy, especially if you’re planning to start a construction business.
To have a successful future, you will have to surround yourself with the right individuals and obtain all the required permits.
On top of that, you will also have to ensure your business and comply with every safety and health regulation.
Take a look at our guide to equip yourself with the required knowledge that will carry you to success in this lucrative industry.