Starting a business - any business - entails a huge amount of preparation and planning. This is especially true for specialized, large-scale businesses such as a construction business. Construction is generally a good business to venture in, since it is a service that not everybody can do and yet will always be in demand, whether for actual construction of homes and buildings, or for doing minor to major repairs. Before you take the plunge, however, it's important that you know how to properly start a construction business. Here are just some pointers for you to consider:
Ask yourself if you are truly ready to start a business in construction. It's best that you start a business that deals with something you are very good at and are well-versed in. If you want to start a construction business, you should been involved in construction as a profession for a number of years. This would ensure that, to put it simply, you'd know what you are doing. Another advantage is that you would have scored a number of relevant contacts that will help you run your business, such as suppliers and potential subcontractors.
Know the laws and guidelines. Before you set up your construction business, find out from your local county courthouse the required licenses that you'd need to secure. The licenses you get will depend on the specific type of construction business that you're planning to put up.
Other requirements that you should fulfill include registering for state taxes (including a state sale tax license), applying for an Employer Identification Number from the IRS, and purchasing a business liability insurance and a workmen's compensation insurance (if you have employees).
If you want assistance in filing all the required licenses for your business, you could hire professionals to take care of this step for you. Check out incorporate.com, and see how they can help you obtain your business licenses. Another site you could check out is contractors-license.org so you could have a better idea about the requirements you'd need to fulfill.
Create a business plan. Creating a business plan should be one of the first few things you should do; this isn't only a requirement, but it will also help you iron out the details of your future business. Aspects of the business plan include financing, marketing, safety, service offerings, and business processes. To know how to create a comprehensive, well-detailed business plan, check out this article.
You could also check out the Small Business Administration's website, so you could do further research on your financing and loan options, among others.
Start small. It's always a wise move to start a business small, subcontracting when necessary, and then building up on your materials and resources as you gain more projects. Also, it's best that you limit your service offerings at the onset. Remember, you need to build your company's reputation for reliability and you wouldn't want customers to think you can't deliver your promises.
There you have it! These are just some of the ways to properly start a construction business. Remember, proper planning and preparation are key for this endeavor! Good luck, and hope this helped you out!