How to Start a New Construction Business
Starting your own construction company can be an extremely profitable business venture. Even during tough economic times, the demand for construction services continues. A construction business can provide a wide range of services, specializing in anything from deck construction and building new homes, to painting and drywall installation. The start-up costs for a construction company vary, depending on the type of services your construction company will provide. If you already have skills in the construction field, starting your own construction company might be the way to go.
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Things You'll Need
- Business plan
- Business account
- Federal tax identification number
- Business loan
- Liability insurance
- Workers compensation insurance
- Business website
Instructions
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Devise a written business plan for your construction company. Determine your business goals, and the amount of money you'll need to get the company started. Decide if there are any specialty areas that your company is going to address. A written business plan also comes in handy if you attempt to take out a business loan.
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Learn the necessary construction skills, if your construction company will offer services with which you are not familiar. Consider taking some skilled labor classes at your local community college to learn new skills that could help you and your new business succeed.
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Contact your local government office and ask about regulations and licensing requirements for starting a construction company in your state and county. Visit your state and county websites for instructions and contact information for the appropriate government office in your area.
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4
Speak with an attorney for a recommendation on the proper way to form your new construction company. You can form your new construction company as either a sole proprietor, LLC, or a corporation. An attorney can provide the best advice based on your circumstances and assist you through the registration process.
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Speak with a bank accountant about the procedure and requirements for opening a business account. In most cases, a federal tax identification number is required to open a new business account. In some states, you may also need an Assumed Name certification to open a business account. If your business name differs from your own name, you may be required to register an assumed name.
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Determine the financing options for your new construction business. If you don't have the capital to pay for start-up costs, apply for a business loan at the bank. Business costs include paying your employees, purchasing any new equipment or tools, and insurance costs. Use your written business plan when applying for a business loan.
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Purchase both liability insurance and workers compensation insurance for your construction business. Since building and construction involves certain risk, you'll need to protect yourself with liability insurance. If you have employees, you should always have workers compensation insurance.
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Hire someone to design a website for your business, or buy design software and create one yourself. Purchase both an online ad and a print ad in the Yellow Pages. Spread your website's address all over the Internet and submit it to local business directories.
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References
- Photo Credit Construction site image by Lesiar from Fotolia.com
