The demand for construction companies will always be there in spite of the present economic situation where starting your own business could be a bit risky. However, the construction business could be one of the safest ventures you could get into, assuming you have some knowledge about this line of work, or preferably have had some experience with it in the past. With careful and strategic planning, it may well be a very lucrative business for you. As with any other business, it is important to enter into the construction business with your eyes wide open. You are your own boss this time and have to make good decisions to keep your business running smoothly. Your employees will be depending on you as well. If you feel that owning a small construction company is the course you would like to take, here are a few useful tips to help you start:
- Determine the kind of business you want to set up. Experts recommend putting small construction companies under a Limited Liability Company or corporation so that your personal assets will be better protected in the event of lawsuits and claims. It is still best to explore your options to know which will work best for your needs. A business lawyer can help you with this, as well as arrange the documents needed for this type of business. Hire a certified public accountant to help you with the paperwork.
- Open a bank account for the company. This should be a separate account from your personal savings. If you must use your own money for the start-up costs, consider it a loan from your company.
- Get insurances. Have all the company’s assets insured so they are protected from losses, repairs, liabilities, and damages that may be incurred. Insurance for workers should also be included, as well as insurance for design and calculation mistakes.
- Process all the required licenses and permits. Get a list of all the licenses and permits you will need to start your business. Secure all of them before you begin to operate. This will involve having your office and other facilities checked and meeting the standards required to run it.
- Create a business plan. This will be your personal roadmap when running the business. Taking a course on how to write a business plan is not always necessary, though it does make things much easier. Although the process can be somewhat tedious, you must take the time to make sure everything is in order. Do not rush your business plan. After all, this is your personal business and you would want it to succeed.
- Raise funds for your business. Even a small construction company will need a good sum of money for start up. Consider borrowing money or finding investors for the business. However, this can be difficult for a starting a construction business. Borrowing money from your personal savings would usually be the next best thing.
- Hire people. You’ll need support from other people to keep the small construction company working. A good CPA is necessary to keep track of all of the company’s finances. You will also need an architect and an engineer to be part of your key staff. Determine other key personnel based on your business plan.
- Market for clients and look for suppliers of construction materials. Do whatever it takes to market your business to potential clients. You may not win the first bidding but you have already made the first step to get recognized. Make sure that you have a list of suppliers available to cover the needs of any projects you may be commissioned to do.
Running your own construction business is not easy but if you are committed to make it work, it can be very profitable for you. Before getting into it or any other business for that matter, make sure you have made a complete study of what the business is all about, and take the necessary steps to get it going.