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.
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