6-Point Checklist: How to
Start a Construction Business
If you have a dream of being your own boss and owning your own construction business just like construction owner Patrick Shin, don’t let fear and countless considerations stop you from accomplishing your goals. Follow a specific plan that outlines the necessary steps for starting a new business.
The Construction Registration of Tradesmen (CoreTrade) Scheme was introduced to build up a core group of competent and experienced construction personnel in key construction trades and supervisory roles to anchor and lead the construction workforce. See https://aesperonconstruction.sg/what-is-a-coretrade-scheme/.
Below are 6 main decisions to make before launching your construction business to ensure you start in the right direction:
1. Obtain the Proper Licenses and Permits
Before you can begin working, planning, and building, you must ensure your construction business has the necessary licenses and permits.
Research online the licenses and permits required for construction businesses to get an idea of where to start. Make sure you pay special attention to the specifications based on your business location. Consider consulting a legal or labor professional to guarantee you obtain the proper licenses and permits needed for starting a construction business.
2. Financial and Insurance Considerations
Starting a new business involves a lot of strategic planning and careful consideration. You don’t want your business to get in trouble before it even starts, so it is essential to make sure your business is covered regarding financial and insurance requirements.
Outline your start-up costs, such as equipment, location, and labor, to determine how much money you will need to finance your business. Generally, new businesses are a combination of personal savings and business loans. Evaluate your finances to determine how much money you need to be supplemented by a loan.
Figuring out the money you have and the money you need before starting your construction business will help you open successfully.
Construction can be a dangerous business, which is why it is vital to make sure your business is properly insured. Research insurance companies and policies to determine what plan will work best for your business. In addition, make sure you have ample insurance coverage for your employees.
If you get caught in a situation with insufficient insurance, it could mean the end of your business, so take precautions to make sure you’re covered in the event of a crisis.
3. Know the Safety Requirements
As previously stated, construction is a dangerous business. There are strenuous health and safety requirements that must be followed to limit accidents and injuries. According to the US Department of Labor, some of the most common injuries and accidents related to construction include, falls, trench collapses, and failure to use proper personal protective equipment.
Before launching your construction business, take the time to learn and study the safety obligations of your business. Make sure your entire team is properly informed of the precautions and procedures they should be following, so everyone can remain safe while on the job. This is a comprehensive Workplace Safety Guide.
4. Determine an Office Location
Your construction business will require an office location to plan and meet with employees and clients. Acquiring a sufficient office space will help excel your business to the next step and assist with the overall organization.
Consider how much space is necessary to accommodate your business comfortably. In addition, if you will be storing large equipment or materials, consider if you will need ample room for storage. Evaluate real estate in your area to discover a space that will work for you. Another option is to use a construction material take off service to predict the costs of building your own office location.
5. Purchase Equipment
Construction businesses require a variety of equipment, tools, and materials. Equipment required for your business includes:
- An excavator
- A dump truck
- A skid-steer loader
- Vehicles for transportation
- Basic tools (such as hammers, tape measures, or saws)
Research what types of tools you will need and buy top-quality brands to ensure your equipment will last you for a long time.
Because you are a new business, carefully consider areas where you can potentially save money. For example, what renting options are available for you? One money-saving tactic is to rent your trucks.
Only rent trucks when you need them for a job rather than dropping a lot of money on a big purchase at the start of your company’s life… This is going to help you best meet your project needs and provide you with a hassle-free renting experience.
6. Hire Workers
Obviously, you will need workers to complete projects and grow your business. Evaluate the size of your projects and your financial situation to determine how many workers you will need. You can hire employees or contractors, so identify which option will work best for your construction business.
Starting your own construction business is actually considered as one of the most fulfilling careers in the world, despite the risks involved. It can appear Daunting and quite overwhelming in the beginning.
However, if you follow a step-by-step checklist for success, you can ensure you’ve covered all of the important considerations before opening your business’s doors.