Starting a commercial construction company is a great way to capitalize on the nationwide growth in the construction industry, but before you dive right into incorporating a business and seeking contracts, it’s important to thoroughly prepare by studying all aspects of operation, some of which you might be overlooking. After all, it’s all the little things that add up to break budgets, and things never seem to work out as planned, unless your plan is failproof. With that said, if you don’t want any unexpected surprises along the way, here are four things you’ll want to consider before starting your commercial construction business:
1. On Site Accommodations
Of course, there usually aren’t any indoor restrooms or air conditioned places that are conveniently located at a construction site, so you’ll have to provide these amenities for your workers by reserving portable restrooms or porta potties. This additional step is often disregarded until the last minute, so be sure to consult with a leading provider and check out sites like onsiteco.com to get an idea of your options and costs before completing your budget projections.
2. Licenses and Certification
Since the exact licensing you’ll need will depend on the region your business will be based in, it’s a good idea to contact your state’s official business licensing office to inquire about the costs and steps involved in becoming a licensed contractor. After obtaining your license, the next step would be to apply for a surety bond, which is a legal requirement that no construction company should operate without. You’ll also need multiple kinds of business insurance, including worker’s compensation, general liability, vehicle, and property insurance.
3. Source of Initial Clients and Projects
Are you starting the business with the hopes that you’ll eventually find work, or do you already have a project in mind? Landing clients when your business literally has no experience or portfolio to show can be very tough, so you may want to start by going after smaller fish. Additionally, having your team build some example structures or personally funded projects to display your company’s ability is a good way to give your portfolio a head start.
4. Marketing Will Be Imperative
With or without a portfolio, it should go without saying that you’ll have to learn a bit about marketing and advertising if your goal is to solicit a steady flow of contracts. Although word of mouth can go a long way in establishing a construction company’s local reputation, you’ll want your brand to be visible to all prospective customers. To achieve that you’ll have to ensure your business is listed in all major directories and has a strong web presence with its own official website and social networking profiles that have plenty of followers.
Avoid Cutting Corners and Focus on Quality
In closing, the last thing a new construction business should do when starting out is cut corners. Looking for ways to save money might seem like a good idea, but if it affects the quality of the finished product then it’s not worth the risk. After all, your contributions won’t be judged based on how much profit you earned but by the quality of the finished work.
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