And to help you start here’s a step by step guide to opening and running a small construction business. It’s important when you are taking steps to set up a set up your first company.Spend some time to think about the type of construction business you want to run.Sufficient supplies, gear, and equipment are essential to construction.
Do you want to be regarded as a general contractor? Will you have the capacity to do everything yourself? What do you expect to achieve after the first year?
Answering all of these questions allows you to set the goals for the company, and helps you work towards achieving them.
Since the crash in 2008, the market has stabilized and it’s steadily growing, even surpassing the success before the collapse.
Once again, it’s an exciting and lucrative investment opportunity for anyone looking to take advantage of the potential.
Before you take on your first job, make sure to acquire the necessary licenses and permits to comply with government regulations.
Obtaining these licenses will protect your employees, clients, and your whole company: Business licenses and permits – A general business license will allow you to open up your company and start taking on clients.It should contain target goals you want to achieve at a monthly, quarterly and annual level and the milestones that will help you reach them.Additionally, you should determine costs (overhead, one-time, and variable), and profit goals/expectations, and include them into your financial forecast.The best thing to do when starting off is to create a mix of all four labor types until you grow to scale and the bottom line allows you to take on full-time staff.So, you might initially only want to hire in-house office workers, and source on-site construction workers from labor brokers or among subcontractors and independents.For these reasons, it might be best to market your company in these terms and move on to bigger building projects as you become more reputable.It’s time to take the first step to start your own construction company.As you move through the steps make sure to put it all on paper and move down the list until you secure your first contract.It will be your actionable checklist that from A to Z, and into the construction industry.The business plan and financial forecast along with the market research will help you lower risk when asking for a loan from banks, VCs, angel investors, and money lenders.Starting small and getting a few sub-contracting jobs can also raise capital for your future full-scale venture.