An Entrepreneur’s Guide to Starting a Construction Business

According to the Associated General Contractors of America, the construction industry produces nearly $1.4 trillion worth of residential and commercial structures each year. As one of the largest in the country, it’s safe to say the construction industry is still as lucrative as ever. With proper planning, it’s possible to skyrocket your revenue and grow your business. Keep reading to know how to get started in this venture.

Create a Proper Business Plan

Proper planning gives you a sense of direction and increases your chances of success. For your construction business, it’s crucial to craft a business plan describing your company’s operational, marketing, and financial plans. You need to describe the nature of your business, determine how it’s going to be structured, know your business objectives and marketing strategies, and make financial projections. With a business plan, you get a clearer picture of your business as a whole and be able to adjust accordingly. To get the process underway, start a new company here.

Get Licensed, Bonded, and Insured

Whether your goal is to position yourself as the top contractor in your area or to tap into a certain niche, it’s important to know the requirements needed to legally operate your construction business. First, find out how to register your business in your state. You can get tax benefits, personal liability protection, and legal benefits by registering your business. 

In addition, make sure to meet the requirements for your local and state licenses before bidding on your first construction project. Get licensed, bonded, and insured to assure clients you’re a reputable contractor. Make sure you’re also well-versed in codes and regulations in your state. 

Market Your Business

To make a strong first impression, create a well-designed logo enticing enough to persuade a potential client to check your services. A distinctive logo that conveys your company’s message can build brand awareness and help you stand out from competitors. If you’re tight on budget, use an online logo maker to design an appealing business logo. Go with a simple style and add in text to view an assortment of logos that you can adjust until you find one suitable for your construction business. 

The next step is to build an SEO-optimized website and promote it on social media. Don’t forget to network with the right professionals to get more leads. Most importantly, showcase your portfolio to display your best projects. 

Build the Right Team

You or a manager you hire can keep day-to-day operations running smoothly. The sales and marketing team can help you bring prospective clients and build a good brand reputation. Hiring an accountant or utilizing accounting software can ensure that invoices are paid and the company’s cash flow is balanced. Finally, the construction team will make sure the project is completed on time and within budget. 

To lower operating costs, consider automating business operations. Investing in a CRM program helps you keep track of project bids, access project-related documents, track time and labor, and improve supplier and client relationships. You save time and money by automating business processes.

Get Started Today

Use the guide above to help you start and manage a successful construction company. Write a business plan, learn about state and local requirements, start marketing, and hire your team. 

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This article was written by guest author Larry Waters. For more great information on construction and sustainability, check out his website, https://sowsustainability.com.