Are you thinking about starting a construction business but just cannot get yourself to start? The idea might be intimidating and the process all mystified. But it starts getting easier from this point on.
You see people around you starting new ventures and failing miserably. That’s why most entrepreneurs have to constantly fight against self-doubt. Starting anything new is risky, but imagine what you can achieve if it actually works.
But how to get going? So many things to think about! So many fronts to cover! To make all these things clear, here are the 5 important steps to follow to kick off your construction business off the ground.
1. Write a Business Plan
Writing a detailed business plan is your first step towards starting a construction business. It will help you remain on track throughout the process while you keep your focus fixated on your goal.
Your business plan needs to be thorough. It should include business structure and strategy, your services, your target market, employee details, marketing strategies, and financial details. Luckily, there are many agencies that can help you grow your construction business. So you won’t be doing everything by yourself.
That way you will have all the milestones to be achieved set in one place, in one document. It will ensure every aspect gets covered in a timely and smooth manner. It is understandable if you feel daunted while writing a business plan, you can get help for that too.
You can hire a professional to draft a business plan for you. Or you can get it approved by experienced and expert mentors.
There’s always room to make refinements in the plan, according to the suggestions you get. What’s crucial is to write one and stick to it for your business to start soaring off the ground.
2. Register and License Your Business
The next step is to register your construction business. You need to make your business recognized legally so it can get legal and tax benefits, and protection from liability.
Get to know the registration laws and rules specific to your business location. This is crucial to get your business registered.
The state and local government can guide you about the registration rules and regulations. You will also get to know whether or not you require bonding to carry out your services in the area. Being bonded with other companies can help you build trust with clients easily and quickly.
You also need to acquire licenses to carry out the legal operations of your business. Not getting licenses and permits can result in dire consequences and setbacks. Procedures and laws to obtain licenses and permits are also specific to the area or state you are operating in.
3. Apply for insurance
Applying for insurance for your business and employees is also an important step for a construction business setup. Considering the prospect of danger that lies, being insured is extremely crucial.
It keeps you ready to cope with liability and as a business owner, helps you take accountability. There are different insurance policies meant to cover different specific business aspects.
The business or general liability insurance keeps you covered in case of some property damage like a vehicle, natural disaster, or injury.
Employment-related insurance includes workers’ compensation insurance, unemployment insurance, and state disability insurance. These cover serious employee injuries, loss of employment, and financial coverage in case of disability.
Employee compensation insurance is important but so is general business insurance. So, get in touch with an insurance agent and get your business all covered up to tackle uncertainties.
Now comes the most important step towards starting your construction business; funding. From buying tools to hiring employees, all are out of reach without enough money. The most probable reason behind people not being able to start a business is inadequate funding.
Financing a business requires a lot of planning and thought. Besides using your savings, there are multiple ways to get the required funding for your construction business. You can get a bank loan, a government loan, refer to funding programs, or private lenders.
Keep in mind that this particular business has irregular billing cycles. So, you need to keep the cash flow consistent by ensuring regular payments for projects. It’s also wise to keep a cash fund ready in case of emergencies.
5. Market and Grow Your Business
No matter how great and valuable services you offer, they are useless if you don’t tell people about them. This is where marketing comes in. Proper marketing and promotion are important for the growth of your business.
Know about your prospects and target customers and promote your business on the media and digital platforms commonly used by them. Offering discounts initially is a good strategy.
Spreading the word verbally is good but not adequate in a highly competitive market. You need to go digital and develop a web presence.
Get a professional business website and develop social media presence. You can try email marketing and other such strategies to promote your business. Networking and building connections are important too. That way you can pitch in your services, expand clientele and develop PR.