How to Start A Contract Labor Company

Monday, June 11, 2018

How to Start A Contract Labor Company

The construction business is on a boom. Recent studies ranked the residential building construction industry as the fastest-growing sector. The surge is attributed to increased demand for housing, real estate value, and lending activities. Research also found that the fastest-growing companies in the world are either owned or co-owned by architects, real estate agents, and contractors. The commercial construction industry has not been left behind. In the next five years, the industry will experience robust growth.

The resurgence of disposable incomes, and increased demand for more business offices will further fuel the growth of the commercial construction industry. The first step to starting a contract labor company is to familiarize yourself with steps involved in planning and formation of a company. These steps include formulating business strategy, incorporation, and registration with the relevant government agencies.

Seek Guidance

You don't have to form a company all alone. You could seek guidance from your local small business development center. Small business assistance programs will help you understand the ins and outs of company formation and learn tips for getting started. In fact, a small business assistance program can even pair a startup with a mentor from the industry. Veterans can contact a local veterans business outreach center for financial advice and mentorship. Your local small business center will also help you in writing a business plan.

Look for Financing Options

There are a lot of financing options for contract labor companies. You might consider an SBA loan program if you are limited to a traditional bank loan. Other financing options include community banks and credit unions.

Get Licensed and Insured

It's crucial to acquire the right licenses or surety bonds to protect your clients and business premises against financial losses and physical damages. Besides a general business license, a pool contractor in San Diego may need specific licenses to construct custom pools San Diego. For example, plumbers and electricians require a tradesman license to render services. You can check with your local regulatory agency to know the types of permits you need. You may also need to obtain a home business permit from the local authorities if you run a business in your backyard. You may need several types of business insurance covers depending on the number of your employees and the nature of their work. Some states also require contract labor companies to obtain disability insurance and worker's compensation insurance.

Learn More about the Construction Industry

The construction industry is one of the heavily regulated industries. You may be required to adhere to workplace safety and energy efficiency regulations. Either way, contractors need to familiarize themselves with laws in the construction industry before starting a contract labor company.

Hiring Labor

You may need to familiarize yourself with steps involved in the hiring process to get started in the construction industry. Laborers in the construction industry are outsourced from independent contractors or labor brokers. It's also crucial to understand the laws and implications of outsourcing laborers from independent contractors.

Comply with OSHA

The occupational safety and health act require contractors to provide laborers a safe workplace free from known perils. SBA's workplace safety and health guide is a useful resource where construction companies can learn more about OSHA requirements. It helps companies to establish a compliant and safe worksite.

Learn More about Company Formation from Online Resources

There are a lot of online resources that contractors with a limited budget can use to learn more about company formation. You will find useful free downloadable templates and documents that contain billing, budget, estimates, and invoicing information. You will also need resources to help you learn to market a contract labor company like a pro. Perhaps your goal is to form a limited company that gives you complete control over operational and financial affairs. Limited companies are an attractive option for contractors who want to leave permanent employment and become bosses.

Top Image -unsplash-logoDavid Siglin

By  Mark Palmer Embed

Author Bio - Mark Palmer is a small business expert and has a passion for helping entrepreneurs make the most out of their company. As a freelance writer, Mark hopes to influence others so they can have a positive business experience.


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