Do you enjoy fixing things in your spare time? Have you always dreamed of taking on bigger projects? Have you been watching shows like “Flip or Flop” or “Flipping Vegas” after getting off from your dead-end job and thinking, “man, I could do that?” Now might be the best time in recent history for you to make the switch and become a general contractor. In this article, you will read about how to start your own construction company.
The construction industry is laden with challenges that will be difficult to navigate at first, what with the industry being more competitive than others, the inherent, constant need for following safety protocols, and the existence of much bigger players in the space. However, it can also be a very lucrative industry to get into, as both residential and commercial construction projects continue to explode across the States in the midst of the pandemic, remaining stable while other industries falter and buckle under the weight of newly imposed regulations.
So long as you’re willing to put in the work, the labor shortage has made it possible for workers from all walks of life to transition into any job field they like: it’s now a better time for you to switch careers and start your own business in the field than ever.
However, starting a business in the construction industry isn’t like running a startup out of Silicon Valley or even starting your own mom and pop shop in your local small town: there’s a lot of nuance involved, nuances that can be hard to navigate if you have no prior experience in the field. If you need a crash course on how to start your own construction business, however, you’re in the right place.
Let’s get your construction business going.
Obtain Your License
For people looking to transition from one career to another, people looking to get into the construction field but not knowing basics like how to tell a load-bearing wall from a regular wall or what a snag list is, they may want to obtain their license first. While others will tell you that one of the first things you should do is carve out a business plan, they’re not considering the benefit that comes with knowledge: it’s unwise to draft up a business plan before you know enough about your field to practice.
Therefore, you might want to take online classes while working your day job to get your license before drawing up any plans. Online classes can help you get your license at your own pace, making it possible for you to work towards your dream while still working your day job and accrue all the necessary knowledge before you lay your first brick.
Draft Up A Business Plan, Register Your Company
The next step will be to decide what kinds of jobs your fledgling company will take on, how many employees you’ll have, how you’ll file taxes, all of that. In short, you’ll want to draw up a detailed, comprehensive business plan, the kind that will convince others that you’re worth investing in should you need to borrow capital to make your dream a reality. Charting out all the expenses you’ll come across, the kinds of jobs you’ll take on in your area, and the types of equipment you’ll need will give you a good idea of your next steps.
After your business plan is drawn up, don’t forget to register your company with state and federal officials. While registering with the state is just a sign of good faith, a requirement the state typically puts in place to ensure you’re up on your licensure, registering with federal officials enables you to trademark your name.
Get Your Assets Together and Take On Your First Job
After that, it’s just a matter of evaluating the capital you have, deciding whether you need investors to take your company from concept to creation, and obtaining the crew and equipment you need to take on your first job. While we’re glossing over a lot here, this step is essentially you putting your plan into action, and the details of that will likely vary depending on your chosen specialization, how many bodies you need to finish jobs and the types of equipment you need.
If you do decide to approach an investor, make sure they share your vision for the company: nothing is worse than getting an investor you’re in constant conflict with.
Starting your own construction company doesn’t have to be an ordeal. Follow the above steps, and you’ll be working on your first job in no time.