If you’ve been working in construction for a while, but want to go your own way? Read this article to learn how to start a construction company.
Breaking into the construction industry isn’t exactly easy to do.
There are almost 700,000 construction companies located all across the country at this time. There are also more than 7 million construction employees working at those companies building anything from homes, high rises to concrete pump stations. That means you’ll face a lot of stiff competition if you decide to throw your hat into the ring.
You shouldn’t let that stop you from trying to do it anyway, though! By taking the time to learn how to start a construction company from scratch, you can increase your chances of turning your company into a success and generate a lot of money in the process.
But before you can build a construction empire, you need to know the right steps to take. Here is how to start a construction company that will grow larger over time.
Come Up With a Name For Your Construction Company
Your construction company isn’t going to feel real until you come up with a great name for it. So why not start things off by doing it?
You should brainstorm a bunch of different names and see which one sticks. Ideally, you should get a group of four or five friends and family members to weigh in on some of your ideas and let you know which names they like the best.
There are some construction companies that keep things very straightforward and go with something like “Smith Construction Company” for their business name. There are others who have a little bit more fun with it and settle on something like “We Build It All Construction.”
Whatever you decide, you want something that’ll set the right tone for your business. You also want something people will remember after they hear your business name once.
Make Sure Your Business Is Licensed and Insured
Once you have a business name ready to go, you can obtain the proper licenses for your construction company. You’ll need to register the name of your business and apply for the licenses that you’ll need to operate.
You should also take the time to research different business insurance policies that you’ll need to start working. You could technically put that off until a little bit later, but the absolute last thing you want to do is start doing construction work without insurance.
So don’t put off obtaining business insurance for too long. It could end up being a disaster if you have to rush to sign up for an insurance policy later. This would also include knowledge on how to improve the request for information process (RFI) as well along the way.
Create a Business Plan
There’s a good chance that you’re going to need to obtain funding for your new construction company at some point. You might need it to lease office space or to buy up the construction equipment you’ll need to work (more on that later!).
To take out a business loan, you’re going to need a business plan for your company. Your business plan should spell out what your company is all about, where you’re going to work, what your policies and procedures will be, and more.
When you walk into a bank or another lender and ask to take out a loan, you shouldn’t have any reservations about showing them your business plan. It’ll show them that you’re serious about running a successful business.
Your business plan will also keep your company on track as you move forward and make important decisions.
Decide Which Services You’re Going to Provide
There are so many construction services that you can provide through your company.
Some construction companies work exclusively with residential clients and help them with everything from new home builds to bathroom renovations. Others work mostly with commercial clients and don’t get anywhere near residential properties.
At some point, you might want to offer a blend of both residential and commercial services. But for now, it’s good to focus on one and narrow down the scope of your services if you can.
Obtain the Right Construction Equipment
You won’t be able to run a construction company without the right equipment. And the equipment you buy will depend on the services you’re going to provide.
But generally speaking, you’re going to need vehicles for you and your employees to ride around in. You’re also going to need a wide range of tools for them to use.
You might need more heavy-duty equipment as well if you’re going to be taking on bigger projects with commercial clients. For example, you may want to keep an eye out for something like a plate compactor for sale if you don’t already have one. In addition, you might want to opt for renting a concrete pump instead of hiring one if you’re going to do a complex concrete pour for large-scale projects. Maximizing the benefits of concrete pump hire can save you time, effort, and money.
Set Up a Website For Your Business
It’s pretty much going to be impossible to run a construction company or any other kind of business without a website.
Hire a web designer to create a custom website for your business. Make sure it includes everything from your services to your contact information on it.
You should also consider starting a blog and using search engine optimization to your advantage. It’ll help you rank higher on Google and direct more organic traffic to your site.
Market Your Business in Your Community
Your construction company isn’t going to be able to get much work if you don’t market your business properly. Marketing is one of the most important parts of running a successful construction company.
You can use social media to spread the word about your business. You can also hang signs up around town advertising your construction services.
But whatever you do, don’t expect construction jobs to magically appear. You’re going to need to work hard for them.
Do Great Work Right From the Beginning
No one is going to turn to your construction company for your services if you don’t do great work. So your first few jobs are really going to determine whether or not people can trust you.
Put your best foot forward from the beginning and show everyone that your construction company is for real. By making a great first impression, you’ll start to bring in more business in no time.
Now That You Know How to Start a Construction Company, Go Do It
Knowing how to start a construction company before you begin doing it will put you at a decided advantage. You’ll know the right steps to take to achieve success.
But you’re still going to need to put in lots of hard work to turn your construction company into an empire. Be patient and do the work that’s necessary and people will start to take notice of your business.
Check out our blog to learn about some of the mistakes new construction companies need to avoid making at all costs.
