Building Your Own Business: Construction and Contracting / by Justin Bennett

Happy Friday! Justin Bennett here.

Suppose you’re planning to set up shop as a contractor. In that case, your prospects look good – the construction industry is expected to expand by a massive 8 percent in 2022, according to a GlobeNewswire report, and will only continue growing. That means your services will likely be in high demand. And needless to say, being the boss of your own and having your own successful business is a satisfying way to live your life.

Today, I will walk you through the ins and outs of owning a business in the construction and contracting industry.

Pick a Construction-Related Specialization 

Before starting your business, choose the type of contractor you want. Specializations are more profitable and, possibly, enjoyable. For instance, you could choose to work for the commercial industry, the residential industry, or the government. You may also have specific work-related preferences. Would you like to be a general contractor, a landscaper, or a roofing specialist? Would you like to be in charge of many people, work with a handful, or be a freelancer? If you have a clear picture of what you want to do, you can proceed with the next step – gaining an education. 

Get Educated

You don’t need a formal education to own a business or be a contractor – but having an education can be a significant asset, according to the BestAccreditedColleges Resource. Some types of contractor licenses require at least an associate’s degree. You could gain an associate’s degree in a specialization like construction technology or a bachelor’s degree in a profession like civil engineering to become more knowledgeable in your field of choice. 

Apprenticing under a contractor or working for a construction crew can also equip you with practical knowledge and skills. You can also pursue short-term courses to acquire construction-related skills. Regardless of your educational path, business skills like planning, troubleshooting, and management are non-optional.  

Obtain a Professional License

You will need a general contractor license, at the very least, to operate your own business. If you’re planning to pursue a specialization – such as HVAC repair or roofing – you may also need a specialty license. The exact requirements will depend on your state and local laws. The license allows you to enter new markets, hire employees, do contract work, and (if applicable) bid on official government-approved projects. Without a permit, you risk attracting fees and penalties. Harbor Compliances gives you an overview of state-by-state licensing requirements. 

Make a Proper Business Plan 

When setting up a new company, drafting a solid business plan should be your top priority. This document is worth its weight in gold because it lets you get organized practically and be clear about the specifics of your new business. The document details everything you need to start, run, and succeed. Describe your company, how you’ll sell your services, business structure, funding, and financial projections. 

Typically, this document also covers market research. If you can understand the market, you’ll know how to position your business to succeed. You can see where your company could potentially make the most money, the skills (or products) most in demand, and what your competition is doing. 

When discussing marketing, it’s vital to get the word out there – and one of the best ways to do so is via social media and the internet. Luckily, that doesn’t have to cost a fortune. For instance, you can use these templates to create a custom banner for free, then devote your marketing dollars to posting them where they can best be seen.

Look into the Legalities Around Starting a Business

Starting a business comes with its own set of legal rules and regulations. You may need to obtain permits, get insurance, register your business, acquire a business name, open a business bank account, and apply for an EIN. Besides this, it may be a good idea to form a business entity (such as an LLC or corporation) for tax and liability reasons. 

Network and Build Up Your Team

Knowing the right people is the key to success in the construction business. You will need skilled people to be a part of your team. Depending on the size and nature of your start-up, you may need project managers, general forepersons, engineers, architects, sub-contractors, security personnel, clerks, marketers, and more. It’s common practice for small or up-and-coming businesses to outsource part of their work or critical tasks. For instance, you can team up with freelancers or an agency to assist you with an area you have no experience in – such as law or marketing.  

Networking will help you find critical employees and clients. It is a great way to strengthen existing relationships, raise your profile in your local community, gain essential insight into the marketplace, and establish your business. Finally, you may be able to find mentors – successful businessmen or contractors (or both) – who may be able to guide you toward success. 

Use Apps to Run Your Business More Efficiently 

Apps can be a godsend. You can use apps to automate a lot of “grunt” work, ranging from project management to customer engagement – and everything in between. For instance, a project management tool allows you to assign workers to projects, coordinate with them, keep track of tasks, and generally manage everything remotely. With a bookkeeping solution, you can stay on top of your finances, troubleshoot cash-flow-related problems, and comply with tax regulations. Finally, these apps focused on the construction industry can help you with the nitty-gritty of contracting. 

Set Up a Business Website 

Having a business website helps on several levels. People prefer to research and scope out a business online before approaching it. Your website makes it convenient for them to get to know you and get in touch with you. Furthermore, you can use your website to interact with customers, learn more about them, and market your business.

For the best results, put up a professional, eye-catching banner on your site that visually uniquely highlights your construction business. It can make you more memorable. You can use an online banner maker, as opposed to paying for a designer, to create a customized banner. Once you have a template that fits your brand, personalize it by adding text, color, font, and animations or video. 

Conclusion 

A solid business plan will be your greatest asset when you start your own business, so spend time and energy making one. Being a business owner requires constant learning, planning, and determination. Prepare yourself for the long haul. Last but not least, focus on setting attainable goals and take concrete steps to achieve them. 

Send me a message or leave a comment below if you need a graphic designer. 

Talk to you next time!