7 Steps on Starting up Your Own Construction Business

By Robert Perez | Construction

Oct 10

construction_business

The ever increasing demand for housing has had a significant impact on the growth of building and residential construction companies over the last few years. Among the ten fastest growing companies, six can be affiliated with the construction business with projections indicating a robust growth in the industry within the next five years.

Increasing demand in the retail building business also impacts positively on the growth of this industry. For people who would wish to venture into the construction company business, the following provide a guideline and startup methodologies:

Getting Help and Being Mentored

It’s not advisable to undertake this venture alone. There exist individual development centers that can help one with understanding the pros and cons of the business as well as help with the planning process to ensure excellent results.

Accessing Finance

Financing option is a very critical step in a business startup and the process of any business growth. In the absence of one’s personal savings or the inability to get any loan financing from the bank, one might think of alternative financing options from small business groups such as business credit bureau, credit unions, and community banks.

Necessary documentation

Protection of oneself is also fundamental through obtaining the first permits of business and the required licenses. The acquisition of surety bonds and insurance is also necessary for assured protection. For one to obtain such necessary documents, you need to comply and adhere to all rules and regulations. Some of these papers include:

  • Surety bonds

For legal operations, construction companies are in need of the construction bonds. The arrangement of a surety bond by a third party is also essential to guarantee payment to customers in cases of unfulfilled contractual obligations. The regulations on bonds are never similar for all the states and hence proper research is necessary for the right relationship decisions.

  • Business permits and licenses

Besides the general business licenses, construction companies have a particular type of license needed for the operation of the enterprise. It’s appropriate to check with the state offices for these licenses and inquire for specific information that is necessary. For business activities conducted from homes, especially if it’s acting as the central office, a home business permit also needs to be granted.

  • Insurance

Different business insurances are required depending on the on the work and nature of one’s construction company activities. The state disability, the workers compensation, property, and vehicle, as well as generally insurances, are just some of the types of insurance a construction company would want to have.

Development of a Safety and Occupational Health Plan

Act on the occupational and safety health plan requires that all workers need safe working conditions free from any dangerous situations and offering an authentic workplace for all the employees.

Finding and Hiring Labor

Independent contractors, subcontractors, labor brokers and hired employees are some of the important jobs to be secured by any viable construction company. It is essential that employment acts should be well understood before starting up a construction company business, including the necessary steps to hiring the laborers.

Taking Advantage of the Online Resources and Industry Tools

Numerous resources might prove helpful for the started construction companies; they include; building an online office. It also includes documents like schedules, budget estimation, billing, invoicing and time sheet as well as templates.

Comparison of construction business software would provide the approved construction management option for small upcoming construction companies.

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