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Tips for starting a construction company

You have been doing construction for the last 15 years. You went to school for it and then spent years working for a local company. Now, you are ready to branch out and start your own construction business. You're tired of being an employee and you want to run things.

To help you get started, here are a few important tips from the U.S. Small Business Administration:

  1. Look into your financing options. Maybe you saved up enough to start the company with the cash you have on hand, but most people look into loans and lines of credit. You do not want to drown in debt, but you often need money to start making money.
  2. Find out what types of permits and licenses you will need. Make sure that your business is legally established.
  3. Remember that it goes beyond a business license. You may need a specific tradesman license, depending on what type of work you intend to do.
  4. Protect your company and yourself. Look into business insurance and find out what type of plan works best for you. Understand that this may change as the company grows.
  5. Learn what regulations govern the construction industry as a whole. For instance, you may want to look into workplace safety standards and energy efficiency standards.
  6. Find out what types of workers you will hire. Are you interested in working with subcontractors, contacting independent contractors, hiring your own employees or working with labor brokers?

These six tips can help you get started, but they do not cover everything you will need to know. Make sure that you take your time and really look into all of the legal requirements before performing any work.

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