April 19, 2024

Business Bib

Business & Finance Blog

How to Start a Construction Business: 5 Things You Need to Know

3 min read

Thinking about becoming your own boss by starting a construction company? Here’s everything you need to know about how to start a construction business.

Have you ever dreamed of becoming your own boss? A record number of Americans are doing exactly that. Experts estimate that 27 million adults are starting their own businesses.

Are you considering joining that statistic?

If so, then you have a lot of research to do. Learn the top five things you need to know about how to start a construction business below.

  1. Get Licensed

If you’re starting a business, then you can’t forget about the government’s rules. The first thing you need to do is establish your self as a legitimate business entity. Otherwise, you’ll run into roadblocks before you even start making money.

To do this, you need to first research your state and county laws.

Construction businesses aren’t obligated to seek out any federal permits or licenses. Your state likely does regulate the industry, though.

Seek counsel from your local county clerk’s office. They’ll help you fill out the proper paperwork. In most areas, you’ll need to pay a minor fee to register. You’ll also want to think of a creative name for your new business.

  1. Start Collecting Tools

Once your license gets approved, you should start collecting tools. To get started, focus on smaller tools that you need the most and that are versatile. Here are a few ideas to get you started:

  • Tape measure
  • Screwdriver
  • Drill
  • Hammer
  • Wheelbarrow
  • Nail gun
  • Hand saw
  • Extension cords

No one wants to make the rookie mistake of showing up to a job unprepared. If you know you’ll need a certain tool, then buy it before you show up to the worksite.

You can find ways to reduce expenses on tools. For example, you can look online for an air compressor for sale to get a good deal. You could also rent bigger equipment that you’ll only need for one job.

  1. Buy Worker’s Compensation Insurance

Construction is by far the most dangerous industry to work in. If you’re starting a business, then don’t forget to buy worker’s compensation insurance.

Make this move even if you plan on being the only employee. This insurance will help cover losses in the event you get injured.

  1. Hire a Crew

Depending on your situation, you may want to hire some help. Start amassing a crew, but be cautious about who you hire.

Consider whether you want your help to be an independent contractor or employee. The distinction is important for tax purposes.

  1. Search for Jobs

The only thing that’s left is to start bidding on jobs! Get out there, and get to work!

How to Start a Construction Business That Will Succeed

Being an entrepreneur takes a lot of work and inner strength. Follow these steps, and you’ll know how to start a construction business that will succeed. They will help you build a foundation, but you’ll have to put int he work to keep it going.

Don’t limit yourself. If you believe it, then you can achieve it. Browse through our other business articles for more pro-tips on how to keep winning in 2020.