-
Step 1
Create a written business plan. Not only will this help you to see any gaps in your planning, but it will be helpful when applying for loans or financing. Your business plan should detail exactly what services your company will offer, what equipment needs to be purchased, and how you will market your services.
-
Step 2
Form your business. To help protect personal assets, many construction companies are set up as corporations, LLCs, or LLPs. These entities can be formed at your Secretary of State's office. Fees vary depending on the state. If you are unfamiliar with this process, you may want to consult an attorney for help.
-
Step 3
Get insured. In construction, you will need general liability, worker's compensation, and auto insurance at a bare minimum. Very few entities will award you jobs unless these insurance requirements are met. Contact a commercial insurance broker for help.
-
Step 4
Purchase or lease equipment. Depending on the services you will offer, you will need to obtain the necessary tools and equipment. For general contractors, you will need an office that developers can visit so they will be comfortable giving you work. For subcontractors, you will need to purchase or lease machinery, tools, and equipment.
-
Step 5
Obtain financing. If you're starting small, you can likely self-finance using savings or credit cards. For larger companies with higher upfront capital requirements, you'll need to apply for small business loans through your bank or the U.S. Small Business Administration, or SBA.
-
Step 6
Hire employees. Start by finding the people who will help get you jobs, including estimators, and a marketing or sales person. Next, you'll need people who can lead your crew out in the field. Finally, you'll need the technicians who will perform the day to day work.
