Starting any business can quickly become overwhelming if you’re not prepared. With the construction industry once again booming, so is the popularity of construction workers deciding to work for themselves.
But, to be a successful firm, and in order to succeed as an independent business, thorough research should be done to prepare for this big step. Owning and running a construction firm can be a rewarding job, however, it is important to be informed and educated on how to start this business.
Some helpful tips are listed below:
#1 Know Financing
Money is a big factor in starting businesses. Hiring, advertising, tools, licenses: everything adds up. It is important to be financially secure with a solid business plan in place before a successful launch of any company. It is recommended to really look at the investments being made, to understand where money should be spent, and where it shouldn’t. Understanding how finances can fluctuate throughout the processes of starting a business can keep a business from going belly-up before even opening its doors.
#2 Get Licenses, Permits, Insurances and Bonds
Protection is everything, especially when running your own business. To ensure that you, your business and your clients are safe in case of any disaster, it is important to do research and understand what exactly you need for your construction firm. Business licenses and permits vary based on what type of business is owned, but for construction firms, it is recommended that you (and your team) get a contractor’s license through the nascla exam.
Prep courses are easy to find and have been found to really prepare individuals to pass on the first round, as many don’t want to waste time re-taking exams. Bonds are needed to operate legally. Resources are available online for more information, as regulations vary state by state. And, lastly, insurance can provide general liability, vehicle insurance and property insurance. You might also consider adding worker’s composition and disability, but those decisions are up to the owner.
#3 Find a Home
Location can play a key role in whether a business succeeds or not. Moving into official offices give an appearance of legitimacy, and the ease in which customers can contact the company, as well as building reputation in the town, can all factor into whether or not a construction firm thrives in a certain setting. In addition to this, you also should ensure that your home-base has adequate space for office and storage needs. Onsite demands need to be met!
As someone who is starting up their own firm, it is important to know how to network. The connections you make in the industry helps develop relationships and reputations. Between suppliers and accounts, it is important to have good communication between your own business and other contractors so you have reliable sources to utilize when needed.
#5 Consider Employee Types
Because you’re starting your own construction firm, it is vital that you decide what type of business you want to run, and this includes deciding what kind of employees you want to hire. As a construction company, many employees will be interacting face-to-face with clients, and thus, it is important to consider whether or not you want full-time staff or on-the-job contractors. Some things to consider in regard to this include: flexibility, lower cost, lack of benefits, etc.
#6 Conducting Further Research
After considering the other five things listed above, there will still be a vast amount of decisions to make. Factors such as how much money will go toward advertisement, is there enough money in the budget for disability services, and how often you have to update industry regulations are just a few questions you have to consider. As the construction industry continues to boom, it is vital to stay informed, and thus, it is vital to continue conducting research. As an owner, your learning can never be stunted. Even after considering the first few steps, it is important to always be up-to-date how to make your business better and stronger.