7 Things to Remember While Starting Your Own Construction Company

Ashwini

Jun 24, 2020 — 3 min read

Did you know that Americas construction market is worth more than 1.23 trillion dollars each year? It’s a huge industry and it’s always been considered a strong industry to be in - because new construction, renovations and rebuilds are always going to be needed. Population is going to keep on growing so more and more homes, businesses and services need to be built. It’s easy to see what’s so attractive about starting your own construction company, especially if you’ve been in the trade for a while and know the ropes already.

You aren’t going to be the only one who sees this as a lucrative idea though. New construction businesses have been popping up a lot over the last couple of years. That doesn’t mean you can’t get involved and grab a piece of the pie though. It just means you have to be smart with your business moves. Let’s go over a few tips that could help you along your way.

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Stay Lean

Construction is an expensive business to get into. You need plenty of equipment, some of it being heavy machinery, and plenty of labor. Then there’s costs for permits, materials, insurance, surveyors… The list goes on. It’s important to stay as lean as you can, especially in the early days. This means knowing all of your costs so you don’t get caught aware, and keeping them all as low as possible - so no extras!

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Build a Network

In any business a network is important. Knowing the right people can get you quite far, and combined with actual talent and hard work it can be rocket fuel for your business. Get to as many networking events as possible, and consider hosting a few yourself if the finances are there. You want to make as many contacts as possible - whether it’s suppliers, potential clients, partners, or anything else.

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Get all the Right Permits & Licenses

Make sure your knowledge is good when it comes to local laws and regulations. Consult a legal professional if you need to, because getting caught without the needed permits can be a real pain - plus there might be a hefty fine. Paying attention to small details like this is vital in the construction business.

Cover Your Business with Insurance

Things can go wrong in all parts of life, and sometimes they will. Prepare yourself for the worst by having good coverage for any potential dangers. Depending on what type of work you do (and where), you might need different types of coverage. Always make sure you’re picking coverage that will actually work for you. Don’t cheap out and end up with useless coverage that doesn’t pay out.

Hire Employees or Contractor

You have to decide whether you want to hire employees or contractor. There are greater flexibility and lower cost involved with dealing with contractors. You can consider having a full-time assistant whom you can train to know all the ins and outs of your business and keep things running smoothly.

You could hire workers on temp contracts to keep the overall cost down, keeping only a skeleton staff as full time workers - the bare essentials. It’s also an option to get additional funds for your equipment thanks to lenders like equifyfinancial.com, who focus on financing for heavy machinery and stake their loan on the solidarity of your firm and your business plan.

Get Good at Marketing

To survive and thrive in construction, you need business. Otherwise you aren’t going to make any money, and your competitors will eat you alive. To get business, you need to do two things. The first was networking. The second is marketing. Get your firm noticed in the right places, put yourself in front of the right eyes. This is how you get a chance at new clients. Study marketing and get good at it, don’t just attack it randomly. As you hone your skills, the projects will start to fly in your direction.

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Keep some Fund for Construction Software

Construction management software will allow you to streamline and automate various processes. The right software solutions can eliminate hours' worth of work. Software makes your work easy and manageable. It generates reports, it sends email notification to team members. You can manage payrolls, job costs through it.

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