About 4.5 million small businesses were created since the beginning of the pandemic. Workers realized that they can have freedom, flexibility, and do what they love.
If you’ve been thinking about starting a new business, the construction industry is an excellent choice. The industry is poised to grow over the next several years despite current supply chain issues.
Starting a new construction company doesn’t have to be intimidating. You just have to know what steps to take and what pitfalls to avoid.
Fortunately, you’re in the right place. Read on to learn how to jump into the construction industry as a small business owner.
1. Find Your Niche
What is your area of expertise? That’s your niche. It’s the specific area of construction that you specialize in.
Don’t be afraid to select a narrow niche. It actually generates more business because people identify your business with your expertise.
If you go too broad, then people won’t be able to separate your business from the competition.
2. Write the Business Plan
The best business plan ensures you did your research and understand the construction industry. You will also need to come up with your own unique branding such as the construction company logo, core values, etc.
The business plan gives you a financial plan, too. You’ll know how much money you need to get started and when you’ll become a profitable company.
3. Learn the Legalities
There are legal risks that arise when you start your business and as you work on construction projects. You don’t need to be a legal scholar. You do need to have a basic understanding of the laws and how they impact your business.
Getting an attorney who works with construction companies is necessary.
Find out what the various permits and contracting requirements are in your state. As you work on projects, you’ll probably place a lien on a property to ensure payment.
You’ll be asked for a lien waiver to show that payments are being made. Learn more about the types of lien waivers and how you can use them in your business.
4. Hire an Accountant
Your tax situation is about to change a great deal. Knowing your tax responsibilities isn’t easy to do. Get help from an accountant.
The construction industry is unique. You’ll want to work with an accountant with experience working with new construction companies.
5. Get Financing
It takes a lot of capital to start a new construction company. You have to purchase equipment, office space, licensing fees, software, and payroll.
You also have to pay for your initial marketing expenses. Take your business plan and use that to get a loan from a local bank.
Starting a New Construction Company
It’s time to go out on your own and start a new construction company. There’s a lot to learn and be aware of before you accept your first job.
Write your business plan, find an attorney and accountant to help you manage the most important aspects of the business. You’ll limit your risk and you’ll protect your business from the very beginning.
Get more business ownership tips by checking out the Business and Finance section of this site.