Construction has been among the most stable and lucrative businesses over the years. If you are thinking of starting a contracting business, then you are on the right track. This industry is ever-expanding, with many structures coming up daily.
But before you start, here are ten things you’ll need.
1. A Business Plan
You may think a business plan is no longer necessary when you want to start a business, far from it. A business plan is an important document for any business. It is through this document you’ll outline all that is needed to start the business and keep it running. Typically, a business plan outlines the market analysis, management structure, sources of funds, and financial projections, among others. Be sure you are considering all possible sources of growth including philgeps opportunities.
2. Construction Regulations
Before you start your contracting business, you must get to know the regulations you’ll need to abide by. Each state has its regulations, so you need to approach the relevant authorities to provide you with these regulations. You may also need to be conversant with tax issues. All these will ensure your company begins on a sound legal footing.
3. Funding Resources
Of course, you can’t start a company if you don’t have enough funds. You need to come up with a comprehensive budget that can cover all the expenses you’ll incur and remain with some cash as a backup. You can either fund your business from your savings or apply for a loan.
4. Get Proper Permits and Licenses
Permits and licenses are necessary for contracting businesses. So, ensure you apply for them from the relevant authorities. With proper licensing and permits, your business will be safe from any legal issues. Also, find out if there are any certifications required so you can get them in good time.
5. Get Insurance For Your Business
Getting insurance for your business is another way of protecting it. Construction works are perilous, and in case of an accident, you may not be able to compensate your workers or even replace your damaged equipment. With insurance, you can have peace of mind that, should anything happen, the insurance company with bear the costs.
When your business is insured, you’ll be able to get loans easily to boost it. For a start, you can go for liability insurance, then add other forms of insurance later.
6. Hiring and Recruiting Laborers
A contracting company employs so many people, both skilled and unskilled. After you’ve set everything in motion, the next step is to hire laborers. Depending on your business structure, you’ll have to hire people to take up the positions necessary for your business to run. You may also enlist independent contractors, sub-contractors, etc.
7. Develop a Safety and Health Plan
Just as stated above, there are lots of risks in the construction industry. So, you need to come up with a watertight health and safety plan. Train all your employees on the safety regulations you’ve set up. Having a PTO(paid Time Off) plan can also reduce costly accidents. All these regulations should be in tandem with government safety and health regulations.
8. Look for Equipment and Tools
There are hundreds, if not thousands of tools and equipment used in the construction industry. From the ones used in the field such as safe way scaffolding, and those used in the offices, including computers, you need to have everything ready. If you can’t buy all of them, you may consider hiring some or sub-contracting some works.
9. Find Someone to Mentor You
The construction industry is big and complex. You may not understand everything at once. There are lots of things you’ll as months or years go by. To be successful, you need someone to hold your hands and show you the way. Find someone who is experienced and reliable to mentor you.
10. Create a Business Website
All businesses, big and small, have websites they use for marketing. Your business isn’t an exception. Setting up a website doesn’t cost much, but it will go a long way in promoting your business. Use your website alongside social media and other marketing strategies. You can hire a web designer to build for you an attractive website.
Now that you know what your contracting business needs, you can get things rolling. Ensure everything you do is legal, so you don’t get into problems with the authorities. You should also ensure that all the people you deal with, sub-contractors, insurance companies, etc. are registered and recognized by the government.
If you can not buy all the tools and equipment at ago, you can start small with what you can afford and add more as your company grows. Also, pick only the projects you can complete. Remember, you can be sued if you leave projects half-way.