America’s construction industry is booming, meaning that now might just be the perfect time to learn how to start a construction company of your own. The construction industry in America is growing faster than almost any other sector, with hundreds of thousands of new jobs being created in the coming years.
While opportunities abound within the construction business, this is no guarantee of success. More than 60 percent of all US small construction businesses fail within the first five years.
In order to make the most of the construction boom and build a profitable company that lasts, you’ll need to start your business the right way. Here’s how to do it.
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1. Master Your Market
One of the golden rules of business management is to know your target market like the back of your hand. This is especially true for the construction industry, one of the largest and most diverse sectors in America.
You first need to decide what you are building, who you are building for, and where you are building it. From here, you can conduct your research.
You should establish competitive pricing, supply chains, and key facts about your target customer. This is the key to starting a business in construction that lasts.
2. Compile Your Business Plan
Before you can start hiring employees, you will need funding. To acquire this, a business plan is absolutely essential. You can approach a public funding body such as the SBA, or you can pursue private capital routes. Either way, a construction business plan should always include:
- What types of contracts you will bid on
- How you will run the business
- Market niche
- Total number of employees
- Estimate running costs
- Require building expertise
- Required materials
Your business permit will demonstrate that you have done your homework and are prepared to use your funding to build a successful construction company.
3. Acquire Your Permits
US construction is highly regulated. You cannot begin any work on a building project without the necessary licenses and permits. Failure to acquire these will result in serious legal and financial penalties.
Fortunately, all of the necessary licenses for most building projects are not difficult to acquire, nor do they take a long time to get approved.
Most licenses relate to safety and quality control. You can find all federal licenses requirements for your construction business on the SBA website.
4. Get Qualified Workers
Any successful business needs competent, reliable workers. Construction staffing is a specialized task since construction workers must have a very specific skillset and experience.
You should always use a local staffing agency that specializes in construction jobs and can match you with the workers you need for your specific projects. This way, you can build a loyal team that is invested in the success of your company.
Now That You Know How to Start a Construction Company…
Doing your research and obtaining funding, licenses, and staff are only the first steps to launching a profitable business. Now that you know how to start a construction company, it’s time to learn how to scale up.
In our expert Business section, you can find insider tips on how to build a business that is competitive and geared to growth. Check it out to learn more.
