Budget Startup - Starting A Construction Business Affordably
The construction business can be very lucrative, provided you know how to start the business without spending an enormous amount of money. This article is intended to help you start this new construction business of yours, and to do so in an affordable, professional manner that will ensure you actually make money, instead of losing it.
First of all, let’s get this out of the way: you don’t have to be a particularly handy person to start your own construction business. All of the manual labor will be handled by subcontractors. That said, you will have to do quite a bit of work, nonetheless, just not the manual labor.
If you have very little experience with the industry, it is advisable to complete a contractor’s course or to even attend a trade school. This is because there are many different elements that go into the nature of your work, and if you aren’t entirely informed, then succeeding will be quite a bit more difficult.
You need to form a corporation. This is done by hiring an attorney and working with them to have a tangible, legal structure that you can work from, which allows you to obtain the financing you will need to grow your business.
Using the help of a commercial loan lender that has proven to be reputable, obtain a business loan. You can do this with the help of the Federal Small Business Administration, which has an enormous amount of information on applying for business loans and the best places to do so. This loan will fund your location, equipment, and other expenses.
Talk to a licensed insurance broker, and work with them to find out what kinds of insurance plans you will need for your business. It’s advisable to ask about contractor’s liability insurance, along with topics such as worker’s compensation and builder’s risk insurance.
Once you’ve done that, you need to get licensed. In your state, there will be a Department Of Business And Professional Regulations. Go to the building and ask for an application, then fill it out. Once you submit the application, you must pay the fee.
After that, you need to develop a network of subcontractors. The Better Business Bureau along with your local Chamber Of Commerce are two good options. They often have an enormous amount of information on specific subcontractors with very specific skill sets that you will need. In this case, electricians and HVAC contractors, along with carpenters, plumbers, and landscapers. Each one of those positions plays a very crucial role in enabling you to perform the jobs that you will be hired to do.
This isn’t even getting into some of the other costs that will, inevitably, come up. You see, as the owner of a construction business you have to think about a couple of key things. One of which is the fact that you’re going to have to get all of these contractors to the worksite, the other being you’re going to be bringing in a lot of materials. All of that requires transportation, which is not cheap in today’s economy.
There are many easy pick up truck rental companies. Choose one and set up an account, and choose how many trucks you need, how long you’ll need them, and then get them delivered to your construction site. Simple. Easy. Hassle-free.