Is your construction business doing well? Do you feel like it is about time to let it soar higher? Growing your construction firm, whether you are in the industry for a long time or you are just starting out, requires careful and extensive planning.
On the surface, it might seem very simple to setup and launch a construction company. The truth is that construction is among the most famous segments for startups. However, for someone who will venture into this rewarding and challenging business for the first time, there are several basic ways you need to minimize your efforts as you set up your construction business.
Get Started with a Good Business Plan
This is an important step often overlooked by many construction business owner wannabes, particularly if your interest lies in building things and not in managing and running a business. The business plan serves as the roadmap to where you are planning to take your construction company and shows you the right way of achieving your goals. This can also help you secure financing. The primary components of your business plan should include an executive summary, description of your business, market strategy, financial factors, and operations plan.
Look for Financing
You can obtain funding through several ways, starting with checking your own pocketbook. However, if you feel like your own savings is not enough, and a traditional loan will not suffice, there are still many avenues that you can explore to help you find the right financing resources.
Being a construction contractor, you are going to have with you more than just the usual business license. You should visit your local county courthouse to know what licenses and permits are needed for the specific type of job that you plan to do. Aside from that, you will also need to get specific state licenses.
Get the Right Insurance
Many construction contracts and states require contractors to carry valid compensation insurance for the workers. Some other coverage that you can consider include auto, builder’s risk, general liability, and professional liability, which is important if you will carry out some design works. It could be quite daunting to understand the insurance landscape. A reliable insurance provider with stellar experience when it comes to working with construction firms can show you how you will be able to protect your company right from the get go.
In most states, contractors are being required to get a surety bond for them to be licensed. This license bond’s amount can vary from one state to another. Your customers might also require you to get some other extra payment and performance bonds for particular projects. While payment and performance bonds are often used on the government projects, these are now being used more extensively even on projects funded by private entities.
Setting up your own construction business is easy and effortless as long as you know what you should do and how you should do it.