There are about 6.7 million employees in the construction business. Though interest rates have been making a slow climb, the market is still promising for home builders and buyers. For someone interested in starting their own construction business, the iron is hot, so strike!
It can be daunting to consider starting your own business, especially a construction business that requires a lot of tools, materials and knowledge. Read on to discover a few of our top tips for building a strong foundation your business.
Evaluate your personal financial picture and decide how much capital you have to start investing in your own venture. Strapped for cash? Don’t quit your dream yet. Consider a US Small Business Administration loan program or obtain financing through a credit union or other community bank. Visit the BusinessUSA’s Access Financing tool and answer their questionnaire to learn more about the government resources available to you.
There are also many private companies online that work to provide individuals and budding small businesses with financing in a matter of days. Sites like Fundera bring small business owners options instead of business owners being at the mercy of one or a few banks.
Owning a construction business comes with risk. Before you start work on a job site be sure to have the proper insurance to protect you and your employees. You may need a few types of business insurance like general liability and property insurance. Make sure you understand state laws to learn about any types of insurance you need to carry to be compliant with your state.
Depending on your chosen type of construction work, make sure you understand the workplace safety regulations for that type of work. The Occupational Safety and Health Administration (OSHA) requires construction companies to provide their employees with a safe workplace that is free of recognized hazards. Failure to comply with OSHA standards could result in injured employees and legal repercussions, so be sure to familiarize yourself with these laws and speak to your local OSHA Compliance Assistance Specialist to be sure you’re compliant.
Beyond the US Small Business Administration and other local small business support groups, there are tools and resources available that are specific to assisting construction companies. For general marketing assistance, check out the Construction Marketing Association blog, created to help construction businesses of all sizes effectively market their service offering. For managing your company’s invoices and payments, use our Invoice app. You can invoice clients and accept payment right on the job site, so you don’t have to worry about late or lost invoices. For other smaller tasks like tracking your mileage, use apps like MileIQ or TripLog for iOS and Android for ease of tracking and claiming come tax time.
Are you a construction business owner? What other helpful business tips would you give to others breaking into the industry?