Starting Your Own Construction Business: A Guide

After years of working for other people, you’re starting to think about creating your own construction business. Unfortunately, you don’t know the first thing about doing so. That’s why you’re here: you need assistance. 

Fortunately, we can provide it to you. Without further ado, here is a helpful guide to starting your own construction business. 

Create a Business Plan

First and foremost, you need to create a business plan. This is a highly detailed document containing everything from your company’s mission statement to its specialization to its funding options to its future outlook and more. 

A business plan creates a foundation for your business and helps guide you as it progresses. Without a business plan, you’ll essentially be shooting in the dark. 

Need help creating a business plan? Check out this article. 

Obtain Your Contractor’s License

Regardless of the state you’re in, you’ll need to obtain a contractor’s license from the state. This proves that you’re capable of facilitating construction processes and is also legally required. 

To obtain a contractor’s license, you’ll need to pass an exam and pay a fee. Fortunately, there are courses you can take that will help you in passing said exams. For instance, here are some contractor license classes for the state of Georgia’s exam. 

Create Branding for Your Business

Next, you should create branding for your business. This includes not only its name but logos, a color scheme, and even catchphrases.

Branding is vital in familiarizing a business with the public. If it’s done well, it can attract an endless stream of customers. If it’s done incorrectly, it can make it extremely difficult to find any customers at all. 

Not able to handle branding responsibilities on your own? If so, consider consulting a marketing agency. 

Register Your Business

You’re also going to need to register your business. This includes choosing a business designation.

For new construction businesses, it’s generally best to choose the LLC (limited liability company) designation. That said, you might better benefit from a corporation designation. 

Once you’ve chosen this, be sure to register it with your state/municipality. Also, be sure that you’ve secured the necessary licenses and permits for the type of work that you plan on doing. For instance, if you plan on transporting construction materials in an oversized vehicle, you’ll need to obtain a special permit in order to do so. 

Get Insurance

Finally, you need to purchase insurance coverage. Many states even require construction companies to have insurance coverage. 

The most important types to have include general liability and workers’ compensation insurance. That said, you should also consider professional liability insurance, builder’s risk insurance, and, if you have a work vehicle, commercial auto insurance as well. 

Once you’ve completed this final step, you can start looking for your first jobs. Market yourself consistently and, with time, you’ll have a steady stream of work coming in. 

Time to Start Your Construction Business 

And there it is, a guide to starting your own construction business. Put this construction guide to good use and, soon enough, you’ll be a legitimate player in the local construction industry. 

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