How to Start a Successful Home-Based Construction Business

Plan a business with detail.
Plan a business with detail. (Image: Bauplanung image by Yvonne Bogdanski from

Planning is the key to starting a home based construction business. Working out of your home keeps the overhead down. The successful construction business needs to meet zoning codes, building regulations and keep detailed documents on projects. Networking with area subcontractors that do quality work will make your business reputable in the community. Most of the new construction business will come from referrals. Make quality and communication a priority to create good word of mouth. The SBA (Small Business Administration) is a great resource for planning and starting a home based construction business.

Write a business plan by following the guide offered by the SBA. Have an accountant check the business plan for feasibility.

Get financing for your business from a local bank. Estimate start up costs and costs that might occur during the first year.

Check with your local zoning commission and follow their rules and regulations for a home based business. Obtain the necessary license and permits needed for running a business out of your home. Understand the state and federal regulations for running a construction business.

Join the local builders association. Become active in the group and take courses that they offer. Obtain certification in lead removal. Understand zoning codes and other specifications that are required before construction begins.

Invest in insurance to cover the business. Check with a CPA on the types of insurance policies needed to run a construction business. Get copies of the subcontractors’ liability insurance coverage.

Set up an accounting system. Hire an accountant to keep the financial records in order. Develop the habit of daily record keeping.

Write a contract for proposing bids. Have a lawyer check the contract for accuracy.

Develop a plan to propose bids. Itemize the project with actual costs and markup the costs to have enough profit in the project to succeed.

Plan each construction project in detail before the work begins. Order products and check on availability. Setup a schedule for subcontractors to do their work.

Communicate with your customers on a daily basis. Explain the scheduling of the construction process.

Tips & Warnings

  • Visit the construction site daily.
  • Keep the construction site clean and safe.
  • Use project manager software to plan the construction.
  • Keep the paper work organized.
  • Take pictures of each step of the project.
  • Learn about and use green products.

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