The steps to starting a construction business can be found below, followed by points to consider.
Steps to Starting a Construction Business
- Researching a Construction Business – See An Inside Look Into the Business You Want To Start.
- Choosing a Location for Your Construction Business For more, see Choosing The Best Location for Your Business.
- Choose a Name for Your Construction Business. See How to Choose a Business Name.
- Legalizing Your Business – See  How to Register your Business.
- Create Your Corporate ID – See A Complete Introduction to Corporate Identity Packages.
- Aquiring Construction Business Equipment
- Estimating Your Start-up Cost – See Estimating Start-up Costs: Are you Missing Anything?
- Writing a Construction Business Plan – See How to Write a Business Plan.
- Set up a Business Bank Account – See, How to Open a Business Bank Account.
- Get the Funding for Your Construction Business – See Getting a Small Business Loan.
- Software Setup
- Get Your Construction Business Insured
- Construction Business Office Setup – See, Here are Considerations for The Setup of Your Office.
- Choosing Suppliers for Your Construction Business – See, How to Choose a Supplier You Can Depend on
- Create an External Support Team – See, Building a Team of Professional Advisors for Your Business
- Hiring Employees – See How and When to Hire a New Employee.
Points to Consider Before Starting
Construction is a thriving business in a lot of areas. There are many different aspects of the construction industry. Let’s take a look at what you need to know to start.
The startup costs can be a challenge. For the startup phase, you may want to consider, a small operation and buy used equipment.
Build as you go. You can’t build a building in one day, and you can’t build a strong company in one day either. It is going to take determination and time to build a good reputation and to become successful.
Skill Set:
- Handle the necessary machinery and equipment adequately.
- Skills and knowledge of all types of tools related to construction.
- The ability to give accurate estimates.
- Knowledge of remodeling and residential construction techniques, procedures, equipment, safety, and materials.
- Proficiency in trim work, drilling and setting hardware for doors and windows, setting windows, stair layouts, etc.
- Ability to read blueprints.
- Ability to perform physically demanding tasks such as crawling for long distances and climbing extended ladders.
- Excellent math skills are a plus.
- Common Business Skills.
Employee Considerations:
- Work/Construction Crew
- Skilled Tradesmen
- Positions Needed To Run Some Businesses
Hours of Operation:
Depending on the job and your deadlines, you could be working double shifts to keep up, otherwise, regular business hours are possible.
Equipment:
- Head, eye, and ear protection, Steel Toe Shoes
- Hand saws
- Planes
- Framing mallet
- Circular saw
- Table saw
- Compound Mitre Saw
- Cement mixer
- Cordless drill with assorted bits
- Work truck/Van with ladder rack and utility box
- Composting containers
- Heavy construction equipment if needed. e.g. bulldozer, excavator, backhoe, dump truck, etc.
A variety of hand tools including:
- Hammer
- Sledgehammer
- Speed Square
- Chalk Line
- Chalk Line Clamp
- Chisel, Carpenter’s Pencil
- Framing Square
- Utility Knife
- Framing Hammer
- Cat’s Paw
- screwdrivers
- measuring tape
- Level, Grease pencil
- Nails, screws, and other fasteners
- Toolbelt
- etc.
- List of Essential Office Equipment
Monthly Expenses To Consider:
Licenses:
Approximate Minimum Startup Cost:
Bare essential – The majority of your startup cost will be the equipment you need, as well as the building you work out of unless you choose to work from home.
When you first start out, large pieces of equipment such as excavators, dump trucks, and bucket loaders are very expensive.
For instance, a Caterpillar backhoe can cost as much as $97,000 new. Buying used cuts costs by a lot.
A used one can cost about $30,000-$50,000. Another idea is to subcontract excavating jobs and later on if you find it more profitable and there is a high demand for excavating you can purchase your own equipment.
Tips & Considerations:
- You must have adequate insurance. This protects your business if any property gets damaged or accidents occur.
- It’s best to specialize in some field of construction, e.g. offices, homes, remodeling, foundations and basements, Highrise, etc.
- You can outsource jobs you don’t specialize in, you can build a network of contractors and make a profit on the work you outsource.
- Another option is to rent equipment. This may put you at a disadvantage when bidding on a job because companies that own their own equipment will be able to offer a lower price.
Pros and Cons:
The Pros:
- Potentially high profits
- There are many areas in which you can specialize in the construction industry
- High demand
- You can run the show
- You are your own boss
The Cons:
- High start-up costs
- The construction market can be unstable
- Competition for jobs
- Potential for dangerous work conditions
- It’s difficult to get contracts when you’re just starting out