How to Start a Building Company
A building company is a unique company that offers its customers both a product and a service. However, like any other business, the first measures to take are to write a business plan and marketing plan, obtain financing and acquire an office and/or a website. Take special notice of your state's compliance standards as well. Below are the seven steps to start and run your building company to build residential properties both on spec and on demand with custom builds.
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Instructions
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Seven Steps to Start a Building Company
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1
Obtain the necessary license(s) from your state organization or association. Most states require you to register and obtain a license with a builder number.
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2
Attend the required continuing education and compliance courses. Be sure to keep copies of your completion certifications for your records for necessary compliance with industry standards.
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3
Set up three business checking accounts to manage your business finances: one for operation expenses, one for interim funds (to draw from your bank loan funds during builds) and one for holding the funds for your tax burden.
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4
Join the builders' associations within your region. While this is not usually required, it does provide ample networking and marketing opportunties and heighten your credibility with prospects.
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5
Choose the bank, the residential real estate agent and the title and abstract company with which you will do business regularly. These are the most important people in your team, outside of your subcontractors.
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6
Purchase lots of land to build spec homes for your inventory.
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7
Advertise your availability for custom builds.
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