How to Start a Construction and Contracting Business

 

Starting your construction and contracting business can be relatively easy, especially if you have long years of experience in this industry and a positive reputation. If you are new in this industry, you will need to take calculated risks in your decisions and strategies. You will have to surround yourself with the proper people and develop a strong business plan.

 

Guide on Starting a Construction and Contracting Business

 

As mentioned above, if you do not have experience in this industry, you need to gain the skills required to be a successful contractor. The successful contractors have years of experience conducting the physical works necessary to build structures. You should at least have three years of experience before starting your business. It is an excellent opportunity for you to familiarize yourself with the different aspects.

 

Creating a Business Plan

 

Creating a solid business plan is necessary when starting construction and contracting business. It will help you determine the right place to receive financing for your projects. It will also serve as your guide on dealing with the unions, your financial data, and hiring third-party service providers. The business plan should include details about the expansion of your business. You may seek the help of marketing specialists, lawyers, or a CPA when designing your business plan.

 

Creating Your Construction Company

 

You need to establish your construction company officially. It should have a professional name that will reflect your service. After determining the name of your construction and contracting business, you may contact the SOS (Secretary of State) to register your business as an LLC type of business. Business structure is essential. It will determine the amount of tax and personal liability of the business. LLC is a preferred business structure when you are hiring subcontractors. LLC has all the benefits of sole proprietorship and corporation.

 

Obtain a Line of Credit

 

Since you are a contractor, you will need the capital to start your project. Start by contacting commercial banking in your local area. Present your business plan to them, and you might be qualified for their financing program. You may also look online for the line of credit that your business will need. Upon the approval of your credit, it is time for you to start your business.

 

Getting the Necessary License

 

You may contact the office of the governor or the SOS to find out what types of licenses you need to offer your service to the public. Some states require permits for their contractor. You will also need to complete a short seminar or training course to receive the license in most cases. Some states require you to pass the licensure exam. When applying for a license, you must have all the necessary information about your business. It may include your background check, references, banking information, and proof of corporation.

 

Starting a construction and contracting business also requires the promotion of your business. When marketing your business, you can use classified advertisement, email blast, or direct mail. We have discussed the various marketing strategies that you can use for your business in our marketing section.