The construction business is not precisely the most accessible business to be involved in—ask a contractor. However, if you approach it right and grow your business correctly, you could make decent construction money. And especially if you enjoy creating and building things and working with your hands, then this may be the ideal field for you.
But how do you get started in construction? Is there a ton of overhead costs initially? Do you need to have a big team right off the bat? These are all relevant questions and all questions that many in the construction industry likely have. This article reviews a few key steps concerning what it takes to start a construction business.
The Construction Industry: Some Important Facts
First off, here are a few things that those interested in getting their start in construction should know…
– Construction accounts for nearly 10% of the US GDP
– In 2018, there were well over 250k jobs in construction in the country
– As of 2021, the Bureau of Labor and Statistics deemed that the construction industry had one of
– More and more women are getting into construction and even starting their own businesses
What does all this mean for someone looking to start their own construction business? Well, it means that it is a pretty good time to do so—if you follow the right course and tread carefully. Keep reading to find out the best steps you can take right now to help begin your career in construction.
1) Research, Research, Research
As you approach any new business venture, you want to make sure you know your “stuff.” Researching the construction industry and finding out all you can about your specific niche will be critical to your overall success. So, whether you’re interested in remodeling, residential, or commercial construction, you have to know something (or a lot) about it. You might consult construction periodicals and journals. You can also look into nearby competitors and gather info on them.
2) Create a Business Plan
This is a step that many entrepreneurs skip. Especially when looking to get into construction, this step is a critical one. Not only is a business plan vital if you go for loans or are trying to attract investors, but it is a roadmap, a guide for your business that you can use a great deal, particularly in the beginning years, to help steer you through.
3) Register Your Company
This is a must for essentially any new business. As a construction company, you also want to be sure that you have all necessary licenses and permits. For example, many states require you to have a contractor’s license prior to launching your business. Not obtaining this license could cost you in penalties, or worse. As far as registering your company, this is done at the state level if you’re an LLC. An LLC is how many construction businesses initially start out—you can then later opt to incorporate if you so choose. You will apply for an EIN number and then go to your local government agency to actually register the business. Some people decide to hire an attorney for this process. It can make things go a bit faster than they otherwise might.
4) Create an Online Presence
Virtually every type of business now has to have an online presence of some form. If you want to get found, if you wish to customers, if you want leads, you have to be online, generally under a website. In the beginning, your site does not have to be overly complex, but it does need to be visually appealing and easy to navigate. From there, you will want to set up social media pages and potentially launch some online marketing initiatives to start drumming up that business! If you are not versed in website creation, you may have to hire a website developer to assist you.
5) Find Funding for Your Construction Company
There will be some initial overhead costs to consider with a construction company, such as insurances, equipment if relevant, payroll, and other such expenses. This means you’re going to need money. There are lending solutions out there, even for early-stage construction companies. Contacting an online or alternative lender is an excellent first step.
First Union Lending Can Help!
We have numerous clients in the construction industry, and we are always available to help. If you need working capital, we have a financing solution for you. Call today!Published in