Qualifications
- At least 5 years experience as a worker
- Must pass the state exam
Step 1: Planning
- Create a written business plan.
- Your business plan should be detailed with
specific information on what services your construction business will offer.
- How
you will market your company and what tools and equipment you need to purchase.
- A
well written, workable business plan will highlight any gaps in your plans
as well as provide you with the information you need if you apply for loans
or financing.
Step 2-Forming your business
- Consider setting up your construction company as a limited liability company
(LLC), corporation, or limited liability partnership (LLP) in order to protect
your personal assets.
- Each type of company has its pros and cons
- All three types of businesses
can be formed at your Secretary of State’s office for a fee.
Step 3-Finances
- Determine your financing needs.
- You will need to have funds available to
purchase tools, labor and materials.
- Many small construction company owners
get started using their own credit cards or personal savings.
- You can apply
for a small business loan through the U.S. Small Business Administration
(SBA) or your local bank.
Step 4-Licensing
- obtain any necessary licenses and permits.
- Make sure you have an up-to-date
contractor’s license.
- Check with your city, county, and state to determine
their requirements for running a construction company.
- You might need some
special permits for specific construction jobs depending on the regulations
of your region.
Step 5-Insurance
- Get insured
- Construction companies typically need bonding insurance, general
liability insurance, auto insurance and worker’s compensation.
- Contact a commercial
insurance agent for advice on selecting insurance policies for your construction
business.
Step 6-Equipment
- Purchase or lease construction equipment and tools.
- The tools and machinery
you need will depend on the services you plan to offer your clients.
- General
contractors should also lease a small office space where they can meet with
clients.
Step 7-Cost estimation
- Make sure you understand cost estimation.
- You must have a solid understanding
of cost estimation before you can effectively bid on projects.
- Underbidding
to win jobs will only make you lose your profits.
- Bidding too high , however,
will usually cost you the job.
- Hire someone with experience in construction
estimation if you don’t feel
you can bid competitively.
Step 8-Hiring
- Hire experienced construction workers.
- You will need to get together a crew
of carpenters, masons, roofers, electricians, plumbers, and other tradesmen
who turn out quality work.
- You will also need someone to manage your construction
crew.
- You can oversee your own workforce if you plan to be on site all the
time.
- Hire someone with experience leading work crews and sticking to a schedule
if you plan to spend most of your time off site.
Step 9-Subcontracting
- Hire subcontractors.
- You will need to subcontract any work that your own
employees can’t do.
- Hire out only the subcontractors who are licensed.
Thank you for your time.
Any questions?