Starting a Construction Business
This is a writing sample from Scripted writer Curtis Fease
The bursting of the "housing bubble" a few years back took quite a toll on the construction industry, but with the economy slowly recovering and the housing market back on the rebound, experienced contractors can now focus on their dream of starting their own construction company. A variety of the steps in getting a construction business off of the ground are similar to those of other industries, but due to the nature of this work, there are a few other concerns that should be taken into account. Luckily, though difficult, it's nowhere near impossible to get a new construction company up and running.
Licenses and Certifications (Getting Started)
Before any work can even get started, an individual will need to apply for a business license for their new company. Even before doing this, however, they'll need to decide upon the business structure that they'll be using. Not creating a limited liability company (LLC), S corporation, or other structure can leave a person open to litigation if accidents occur. In the construction industry, this is a risk that's never worth the gamble.
Additionally, running a construction company requires many more licenses and certifications than typical companies. Sadly, these requirements can vary greatly by state, so it's best for a person to check their own state's requirements at the Small Business Administration website.
Get Funded
Getting funded is another essential task related to a construction business. Luckily, contractors have their customers provide money for supplies and materials before starting any job, but this doesn't mean that an individual won't need funding. Due to costs related to permits, certifications, and even insurance, even a construction company will need startup funds. These can be garnered through associates, angel investors, or venture capitalists.
Set up Home Improvement Account
One of the biggest losses of money that new contractors run into comes from the fact that they don't set up contractor accounts. Any major home improvement store allows contractors and construction business owners to set up accounts with their store, and these accounts allow them to buy materials at discounted prices. These stores do this because they know they'll get repeat business, so it's essential to check with the local home improvement warehouse about this possibility.
Lay out Appropriate Safety Measures
One of the biggest differences between construction and other companies is the danger that this type of work entails. Statistics show that nearly one out of every five deaths in private industries occurred to those in construction. The majority of deaths and injuries on construction sites are cause by falling. Luckily, there are numerous ways to prevent these and other types of accidents. Following appropriate protocol from the Occupational Safety and Health Administration will increase safety while ensuring legal compliance.
Never Forget Insurance
As mentioned, the construction industry is a dangerous one. This means that things like worker's compensation, general liability, and professional liability insurance policies are not even close to being optional. Even in states that don't require worker's compensation for a given company, likely because they don't have enough full time employees, failing to have all appropriate insurance policies can prove disastrous for a company. This is why it's essential to speak with an insurance agent before getting work underway.
Construction businesses face some of the most serious liability issues of any industry, but luckily, when properly prepared for, these issues don't have to be disastrous for a company. With plenty of preplanning and knowledge related to the construction industry, a committed individual can turn a new small business into a success. Those who follow the aforementioned tips won't be home clear, but they'll undoubtedly be well on their way.
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