How to Start Your Construction Company in Under 10 Days
Starting up a construction company is no easy task, much less one that is completed in a mere 10 days. However, it is possible to go from concept to construction company in less than two weeks if you do things in the right order.
The first question is why you want to create your construction company at such a fast pace? The answer is usually to take advantage of a shift in the housing market, a boom in commercial construction, or addressing a need for renovation or remodeling in your community. Whatever the case, putting together your construction company in less than a fortnight means that you can take advantage of new business quickly.
The first step should be researching the marketplace to see what construction needs are in your area. You probably have already done a little research already, perhaps seeing new construction booming or maybe an increase of people looking to have renovation performed on their homes. Despite such indications, you’ll want to do some research at places like the US Small Business Administration (or analogue in case of different country) along with talking to residents and construction owners about what construction services are needed.
Once you have seen what is needed, you can now start the clock on putting your construction company together.[clickToTweet tweet=”This is how you can start your construction company in under 10 days! 🚧” quote=”This is how you can start your construction company in under 10 days! 🚧”]
To start a construction company, you’ll need equipment and personnel which costs money. If you have the cash-on-hand to cover all expenses for the next six months to a year, you can proceed to the next step. If like most people you do not, then you’ll have to get a loan which means creating a solid business plan.
Even if you do have the cash ready, a business plan provides a strong guide to where your company should be after a year of serving the public. For lending purposes, a business plan demonstrates that you understand what is needed to start up and run your company. It will require that you address the following concerns;
- Creating Structure & Management
- Explaining the Type of Service Being Offered
- Target Market
- Marketing Plan
- Number of Employees You Need
- Understanding the Competition
- Overall Cost for the First Six Months
You may want to hire someone who can write up a formal business plan, so you can present it to the lenders. The process of getting a loan may take longer than two weeks, but it is your best option if you do not have the capital on hand to get started.
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Pick a Location
You’ll need to headquarter your construction company somewhere, so you might as well select the location while waiting on the loan. The good news is that you can operate initially out of your home. However, the most of construction companies start with a place where tools, equipment, and supplies can be stored. Plus, there may be a small office or room where a phone line can be set up, although you might start with your cellphone at first.
A P.O. Box is handy for mail, although you might want to get one with a street address so that your business looks more official.
Register Your Business
Your construction company will need to be properly registered before you can start working. Keep in mind that registration is different from state to state, although most follow the same basic rules and regulations. You’ll need to do the following;
- Name Your Business
- Examine the Requirements for Registration
- Pay Appropriate Fees
- Choose Business Structure
Your construction company should be registered under the best business structure to take advantage of any tax breaks and liability protection. While many construction company owners choose sole proprietorships or partnerships as the structure for their business since it offers tax benefits, it does not protect you from personal liability.
A corporate status is relatively rare for starting construction companies, unless you have a lot of employees and take on large projects. However, a Limited Liability Corporation (LLC) or Limited Company (Ltd.) in the UK does offer tax breaks and liability protection which may be advantageous for your construction company.
You’ll also need to register with the IRS (or analogue in case of different country), provide an Employee Identification Number (EIN) which is easy to do, and answer a few questions about your construction company. Once you have done that, getting licensed by the state where you are headquartered is next and you’ll need to follow the rules and regulations that they have provided.
This may be the most important step in establishing your construction company as insurance not only protects you from liability, but is also in most cases a requirement if you want to secure work and protect your employees as well. You’ll need to follow the rules and regulations of the state where you reside, but getting the insurance is straightforward enough.
You may find that your state requires additional insurance requirements, such as worker’s compensation, unemployment, and disability insurance.
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Now that you have gotten the basics out of the way, the next step is to get your company some work so you and your employees can be paid.
Surety Bonds: As part of most construction work, you’ll need to get surety bonds that pay your clients in case you cannot complete the work on time. This is a requirement is most, if not all states and is needed before you start the work. Be sure to follow all rules and regulations with surety bonds, which you may get from the Small Business Administration if you cannot get a third-party provider.
Building Permits: It’s amazing how getting a building permit seems to be one of those items that gets lost in the rush to go into construction. However, you’ll need them to start your first project.
In addition, there are tax obligations, purchasing equipment, and getting your construction company going in the marketplace. The good news is that if you are diligent, you can really start your company and get it ready for its first job in just 10 days or less by following the steps described above.