If there is one thing that people will always need, it’s housing to live in. So, in many ways, construction is one of the more vital industries in society. This makes it an excellent choice for those looking to start a business. This is what to know before starting a construction business.
The Legal Requirements
Starting any business comes with its own barrel of legal requirements, and construction is no exception. Because the industry involves working with heavy equipment in an outdoor setting, there are often even more considerations to keep in mind to help keep employees safe.
Here are a few legality-related things to know before starting a construction:
- License requirements for your area
- Building permits for home offices
- OSHA requirements for site set up
- Insurance requirements
- Tax requirements
For this stage in the game, it’s helpful to find someone who is experienced in the construction field to come alongside you to help navigate these decisions.
Your Business Plan
Your business plan is the roadmap to help you get your business off the ground. For construction, a solid strategy should include things like:
- Your business’ structure
- Your strategies for finding new jobs
- Systems for managing projects
- Market analysis
- Strategies for navigating unexpected business losses
- Predicted start-up costs
This is another aspect that would benefit from having a more experienced entrepreneur’s help. Business mentors can help inform you of unexpected challenges they faced in their first year to help you adjust your plans accordingly.
Where To Find Your Workforce
Another factor that should be on your business plan should be your plan for cultivating your workforce. There are two main options for drumming up employees for a construction business.
First, you can hire a full-time staff, which will allow you to have a reliable source of labor. Otherwise, you can rely on private contractors, which tends to be less costly and very flexible.
The Ins and Outs of Equipment
Your equipment will be one of your biggest investments as a construction company, so it pays to have as much information as possible about it. As you look to purchase equipment, consider the types of jobs you want to perform, the skill level they require, and how much money you have to cover it.
Once you have the equipment, you will want to become very familiar with how the equipment operates to prevent unnecessary downtime. For instance, say you had a Caterpillar skid steer. Without proper knowledge of the machine, you may miss signs of hydraulic contamination or other issues until the damage has progressed so far that the machine needs repair.
