Things You Need to Start Your Own Construction Business

A construction business is a large responsibility, which if well run and successful, can reward you with large profits. Starting a construction business requires capital. As with any business, starting off large will require more capital and supply you with larger profits sooner, while starting small will minimize risk but increase the lag time before your business is self supporting.

Paper

• Getting all of your bureaucracy under control before actually starting your construction business will make things less stressful when the trucks begin to roll. You will need a business bank account, a comprehensive insurance plan that covers employees, clients and property, a business license and accounts at local building supply stores. It's a very good idea to take a course in small business administration at a local community college before setting out on your own. While it's possible to run a business without this formal education, you will find yourself more confident and informed after a class, and you can also use the class to begin building your local network of other business people.

People

• Finding and keeping good employees is a critical part of any successful construction business. If there is a trade school in your community, ask there about new graduates who are looking for work. Having a crew with a mix of ages, some of whom have learned on the job and some of whom have trade school experience, can create a good employee dynamic and a useful mix of skills. Look for workers who have people skills as well as technical skills. Particularly if your company does domestic renovations where your employees will be interacting with clients, this is important for the image of your business.

Equipment

• The extent of equipment that you will need depends on what kind of construction you are getting involved in. At a minimum, you will need a heavy duty pickup truck, scaffolding for exterior work, a generator, air compressor and portable heater. Most construction companies provide large tools for their employees but expect the employees to provide things such as hard hats, steel toed boots, tool belts and hand tools. Expect to be investing in tools for the first several years that you are in business, as you build up your needs and expand your capabilities. Buy the best and take care of them.

Customers

• Finding work in construction can be done through word of mouth, advertising and networking. Landing large municipal jobs requires a much more formalized process of bidding than getting smaller jobs with individuals. As your business is starting out, you will probably take what you can get, and get more picky as you develop a reputation and are offered better and more lucrative work. Make some lawn signs with your business name and contact information and display them prominently in front of any jobs you do. This makes your work itself into an advertisement for more work.

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