There are few industries in the business world that provide the option of job security. The construction and contracting industry is one of them. Building construction, repair, and maintenance are necessary services.
Businesses like gyms and nail salons are the first to get hacked from someone’s budget when money starts getting tight. However, business owners and homeowners alike will always need contracting services.
If you’re interested in this field, you need to figure out where to begin. You need to learn how to start a construction company. What steps do you need to take to get your business idea off the ground?
We’re here to show you the way. Keep reading for a quick guide on starting a construction company.
Research the Construction Industry
No matter what industry you’re looking into, the first step in starting a business is doing your homework. You need to research the industry and the local market. Answer important questions like:
- What is the demand for contracting and construction work in the local area?
- What demographic makes up my target audience?
- Who are my biggest competitors?
- What are my competitors doing right?
- What are my minimum startup costs?
- What will my daily operation costs be?
- How can I effectively market to my target audience?
- What can I expect in terms of financial projections?
The more research you do, the better you’ll understand the industry you’re jumping into.
Draw Up a Business Plan
Now it’s time to draw up a business plan. According to constructionbond.ca, using your market research you need to craft a layout or blueprint of your future business. This document will play a vital role in getting startup funding from banks, investors, and other lenders.
Your business plan needs to include:
- An executive overview of your business
- A description of your business
- Your products and services
- A market analysis
- Your business structure (management and employees)
- Your marketing strategy
- Financial projections
Remember, your credibility and the credibility of your future business will be reflected by the quality of your business plan. Take your time and create a thorough and professional document.
Seek Startup Funding
Learning how to start a construction company means finding the startup funding you need. We recommend starting at a bank and seeking a traditional business loan. These come with relatively low, fixed rates.
However, you can also seek startup funds from:
- Personal investors (family and friends)
- Private investor groups
- Angel investors
- Crowdfunding groups
You may need to start small and build your company from the ground up with a limited budget. That’s okay, it just means you’ll have less overhead.
Take Care of the Necessities
Once you have the funding you need, the next step in how to start a construction company is taking care of all of the logistics. Make sure your business is completely legitimate.
You need to get a business license from the state as well as the necessary contracting licenses and certifications. You’ll also need to get liability insurance and worker’s comprehension insurance (if you have employees).
Start Marketing Your Business
Lastly, you need to create a marketing strategy to get the word out to your community about your new contracting business. People can’t hire you if they don’t know you exist. We recommend focusing on contractor internet marketing because most consumers get their information online.
Internet marketing includes everything from building a website, implementing SEO, using social media to generate leads, and more. If you don’t know much about marketing, we recommend hiring a marketing expert to help boost your brand awareness.
Are You Learning How to Start a Construction Company?
As you can see, the steps to starting a contracting business aren’t terribly difficult. However, you may find you need more help down the road.
If you’re figuring out how to start a construction company and need more information, be sure to check out some of our other articles before you go. We have an entire blog devoted to helping business owners and future entrepreneurs like you thrive in a competitive business world.