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Your business plan should establish the goals of your construction business. It should
include detailed plans for every stage involved in the process along with the timeframe and
funding you will need to meet each of your goals. Include anything you believe relates to
the smooth operation of your business. Your business plan needs to be thorough since you
will need to supply copies of your plan to financial institutions when attempting to borrow
funds.
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While many construction startups begin in the owners’ homes, eventually you will want to
move into more official business premises to legitimize the business. The property you
choose as a home base will need to have adequate office and storage space since you will
likely be storing equipment and tools onsite. The location you choose should also have
ample space for parking vehicles used in the business.
The best way to establish your business as a professional operation and to instill
confidence in it is to show that you are organized, efficient, and compliant with all relevant
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regulations, laws, and standards. Be certain of all the certifications, licenses, permits, and
registrations that are mandatory for the business. These vary by state, city, and locality, so
do your homework. Hire a lawyer if necessary.
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Hire an accountant and iron out what documentation you will need to have on file for your
deductions. Audits are not common, but they do happen, so you want to be prepared and
you want your books to be accurate.
Arrange a meeting with an insurance agent and talk with him or her about the coverages
required for your business. You need to protect not just business assets, but also yourself
should work-related injuries, personal liabilities, or damage to clients' property occurs. Both
you and your business need to be fully covered.
Close-up of paper showing the interest rate for a small business loan.
Glow Images, Inc / Getty Images
You will need to purchase, rent, or lease equipment, tools, and vehicles to get your
business started. You will also need to pay your bills, invest in advertising, and meet payroll.
You will need to secure funds before you bid on your first contract, so apply for financing
early on.
Open accounts with several suppliers and establish credit with them. You will need to have
a good relationship with other contractors so you have people to call upon to help you
complete jobs you either cannot finish yourself or don't have the time to complete within
the deadline. You will also need to establish good relationships with industry professionals,
including building inspectors.
Will you keep full-time staff or simply hire contractors when you need them? There are
greater flexibility and lower cost involved with dealing with contractors since you don't
have to pay benefits (in most cases) or continue providing a salary when business is slow.
At a minimum, though, you might consider having a full-time assistant whom you can train
to know all the ins and outs of your business and keep things running smoothly. People also
appreciate hearing a familiar voice when they call your place of business.
You might decide that your advertising needs are as simple as signage for your job sites.
You might also decide you need more—radio, TV, and online marketing, like a website and
blog. You will also want to create a logo to establish your brand. Other recommended
promotional items include business cards, brochures, and, eventually, a business portfolio.
Whatever you do, don't skimp on the marketing. Allocate more than you think you'll need for
it.
Don't forget to allocate some funds for construction management software to run your
business, as this will allow you to streamline and automate various processes. The right
software solutions can eliminate hours' worth of work per project, even per day. Here are
some of the best construction accounting software options to choose from.
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ACCOUNTING SOFTWARE
Quote vs. Estimate vs. Bid: What’s the How to Start Your Own Construction
Difference? Management Company
STARTING A BUSINESS
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