Starting a construction company is no easy feat, but it can be done, and with the right mindset, strategy, and know-how, you can be on your way to starting making money within your first year.
Construction companies are quite popular, which is why it’s no surprise that more and more people are trying to make their way in the industry. If you’re thinking about starting one yourself, there are a few things you need to know before you can start getting your name out there.
1. Contractor’s license
You’ll need something called a contractor’s license (also known as a general contractor’s license). These licenses vary by state and may require some schooling depending on where you live. Having a license is not only good for your business’s reputation, but it also prevents you from getting sued for contract confusion or if a job goes wrong.
Of course, to get a contractor’s license, you’ll need to take specific courses and take a few tests. This is because you need to know what you’re doing before getting a license. So, before you start, search for schools near you that offer these courses to begin your education.
After getting your license, you’ll be able to get work from more prominent companies that need a hiring contractor for jobs. So, most likely, you won’t be able to start by landing your own jobs right away. But this is okay because, with time and experience, you can work your way up.
2. Business name and logo
You probably won’t get any contracts without these two things! Choose wisely because many companies go by their business name alone, which means that this is their only identity in the work world.
When you design your logo, remember that other companies will see it, too. So, if you choose a name that has already been taken, it could be confusing for them to see your logo out in the field. This means that you might lose contracts because people assume you’re already taken.
Aside from that, when choosing a name for your construction company, you have to ensure that it’s easy to spell, simple, and unique enough so that other companies don’t have it already. And keep in mind that you have to own the domain name of whatever it is you choose, so find something that’s available.
Many companies require you to have insurance before hiring you to work on their project. It’s always good to protect yourself and your clients, so make sure to get the proper insurance before applying. Insurance protects you in case someone gets hurt on your site, in case any of your equipment is stolen, and so much more.
It’s a good idea to have as much as possible because accidents happen. That’s why you should at least have a business owner’s policy, liability insurance, workers’ compensation insurance, and auto insurance.
Securing all your insurance policies before opening up for business also ensures that your company is up to par with the law. Without having insurance, it’s illegal for you to take on jobs or contracts in some places. So, get your policies in order so you can get your foot in the door!
4. Equipment and tools
You can’t build anything without the proper equipment and tools. It’s essential to invest in high-quality, durable equipment so your company can stay afloat. Having great equipment also gives you a chance to build better projects for your clients because they won’t have to come back to fix anything later.
You’ll also need valuable tools for the type of construction you’re doing at the time; you don’t want to waste valuable time looking for a tool that could have been avoided if you had the right one. So, take the time to research what your company will need and make sure you can afford it before actually purchasing anything.
It’s almost impossible to start a company by yourself, so you’re going to need some help. Therefore, recruitment is an essential step in starting your own construction business. You will need to find people who can do specific jobs, and you might even want to begin training them yourself for jobs such as rigging services or whatnot.
Keep in mind that training takes up a large part of your time and money, so the training should be worthwhile if you’re going to do it. It would be best if you also got a worker’s compensation policy to protect you and your employees in case anyone gets hurt on the job.
Worker’s compensation policies can be expensive, so make sure to get one now, so you don’t have to pay more later. This way, you can avoid not getting contracts because of your insurance or losing them because your insurance isn’t high enough.
As you’re starting your construction business, it’s essential to do things right the first time. That’s why you need to start with these five things. Get your licenses, choose a good business name and logo, have the right insurance, quality equipment and tools, and employees. When you do these things at the beginning of your construction business journey, you’ll be well on your way to success.