5 Factors to Consider When Starting a Construction Business

Thursday, January 4, 2018

5 Factors to Consider When Starting a Construction Business

Starting up a construction company can be a very profitable business, but it takes a lot of time, money, and effort. If you’re looking to start up your own company, there are quite a few things to do beforehand, such as reaching safety standards, legalizing your business, and meeting certain requirements.

Here are our top five suggestions that you should know before starting a construction company.

1. Location

Just like any other business, it’s always a smart idea to have a proper office space that can represent your company’s base of operations. However, if you already have an office, you can easily adjust it to fit your team of contractors. Plus, it should have plenty of room to fit your clients as well. When you start having meetings, it’s crucial that you have enough space for your staff members to comfortably sit in. Not to mention, having your own headquarters will make your company look more professional.

2. Insurance

Before you start taking on any clients, it’s important that you are properly insured. Although getting business insurance can help cover you in case of an emergency and in case a client files a claim against you, you’re able to write it off your taxes as a business expense.

In the construction industry, having proper training and insurance for handling and maintaining heavy equipment and machinery is necessary. Not only to protect your employees but yourselves and your business as well.

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3. Licenses and Permits

When you start up a construction company, it’s important to its survival that you have the proper licensing and permits. You can easily visit your local government building to file the paperwork to make your company up to standards. However, you can just as easily file this paperwork online, depending on your local government procedures.

Starting a Construction Business

4. Equipment

There is a wide range of equipment that you will need to obtain for your business before you can begin taking on any projects. Firstly, you will need construction equipment. Do some research to determine exactly what you will need to get your business started. You may need things like ladders, saws, and large equipment pieces like excavators. Remember to look for top quality equipment pieces so you can continue to use them for a long time to come. You should also look for discounts and deals to help you save money when you are just starting out.

You will also need equipment to fill up your office space. After all, there is more to running a construction business than just doing construction. You will need items like desks, chairs, phones, computers, microservice architecture and other software, and more.

5. Health and Safety

In the construction business, there are tons of health and safety regulations that need to be followed. When first starting your business, you need to educate yourself about all of the rules and regulations in the construction business. Then, you can determine how they apply to your business. Additionally, you will be knowledgeable when it comes time to educate your employees.

When you are on the job, you should also ensure that all workers are following the health and safety rules. Ensure that all workers have the proper safety equipment like goggles and face masks. You will also want to make sure that the work conditions are safe as well. This will protect your employees from getting hurt and protect your company from getting sued.

Starting a construction company can be an extremely lucrative venture if you are willing to put in the time and the effort. However, it does require a lot of work, too. There are many things that you will need to think about when getting your business off the ground. But, with these five things in mind, your new business will surely be a success.

By  Robert Cordray Embed

About the Author - Robert Cordray is a former business consultant and entrepreneur with over 20 years of experience and a wide variety of knowledge in multiple areas of the industry. He currently resides in the Southern California area and spends his time helping consumers and business owners alike try to be successful. When he’s not reading or writing, he’s most likely with his beautiful wife and three children.


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