A growing number of people have switched from working for a company to starting their own business over the past few years. There are many perks of being your own boss, and the most important one is taking the responsibility for your career in your own hands.
Needless to say, this will give you the freedom to make your choices that will affect not only your professional path but also personal life. That being said, it’s important to emphasize that getting started with a construction company requires a meticulous planning as well as having various legal and safety procedures in place before you lay your first brick.
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1. A sound business plan
People in this line of work are usually more interested in getting down to actual construction work than in business management, so they sometimes tend to overlook this important step.
Your business plan should state your business goals, together with detailed explanations about how you will achieve those them. Time frames for every stage of the process, as well as funding options, should be included too. Bear in mind that a good business plan is a key factor when it comes to obtaining a loan, or applying for any other funding option.
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2. Licenses, permits, and other legal stuff
Every construction company needs to get a number of various licenses and permits in order to be in compliance with all relevant federal, state, and city laws and regulations. Since this requires a lot of legal paperwork, it’s a good idea to hire a lawyer to handle everything and keep your company safe from costly penalties.
This is also important for the reputation of your business, especially if we bear in mind that construction work involves a lot of risks, which means that people want to deal only with companies with a clean record.
3. Tools and equipment
After you’ve taken care of funding and legal issues, it’s time to purchase equipment. Your first consideration should be finding reliable machinery since both your employees’ safety and the quality of your final product are at stake here. Make sure that every item is of superb quality, starting from the most basic tools, such as ladders, saws, or drills to more advanced equipment like an automatic measuring stop or post pullers.
Of course, products from trusted manufacturers of construction equipment are usually expensive, but you can always choose to lease as a financing option, as your monthly payments will be lower, and if you decide to purchase the equipment at the end of the contract, you will be able to do so at a reduced price.
4. Get insured
Statistics say that out of 5,190 workers who were killed at work in 2016 in the U.S., 991, or 21%, were construction workers. This clearly illustrates why you need to protect both your employees as well as your company from work-related injuries and deaths. Ensuring your business assets against various misfortunes is another thing to give a serious thought. Fires, floods, earthquakes, or accidents can damage your property and your expensive equipment, thus destroying your business.
This is why having everything covered will protect you from such catastrophic events. Finally, in order to cement your reputation with your clients and show them that their property will be safe during construction work, as well as that you will meet the agreed deadlines and quality requirements, purchase construction bonds as they will most certainly demonstrate your credibility and trustworthiness.
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5. Understand your taxes
Keeping your books and understanding your taxes from day one is a must. Although many business owners believe that audits aren’t too frequent, the truth is that they’re more common than you might think. If you aren’t familiar with the taxation system, hiring an accountant will help you navigate the complex taxation processes since every mistake in this department can be pretty costly. Also, your accountant will advise you on tax deductions, show you the ropes when it comes to reading financial statements, and help you manage your cash flow.
According to some estimates, 82% of businesses go under because of poor cash flow management, and this explains how valuable a reliable accountant can be for your construction company.
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Building and growing your construction startup is a complex undertaking, and besides being a skilled and experienced professional, you need to understand other, administrative and legal sides of your business and know how to delegate and outsource tasks.
Carolin Petterson is a businesswoman and content marketer with years of experience under her belt. She has had the opportunity to contribute to a number of popular business and marketing websites.