Thinking of how to start a construction company of your own so you can work for yourself instead of working for others?  In this article we will go over the basics of how to start a contraction company and then also talk a little about getting clients.  From that point you should be able to get your construction company started and making money.  There will still be a lot more to learn to be really successful, but this will get you going.

How to Start a Construction Company:  Getting Started

The first step in starting a construction company is to create a name and make sure nobody else has that name.  In most places you can go down to your licensing office and have them do a nuance search for you.  If you cannot do this in your location simply ask them where to go, and whenever you are in doubt talk with your lawyer.

While you are checking on a name for your company you can save some time if you register or license your company at the same time.  This is not always possible in every municipality but ask and see what happens in your area.

If you are not able to get your business license in the same place where you register your business name then go to your town or city business license department and get your license there.  This requires them to see your registered name or corporation and for you to fill out a form.  Then pay a fee of course.  That fee will have to be paid each year in most cities, but some fees are less after the first year.

Also if you are opening up a shop or store front then you may not have to get a business license in this same manner.  In some places what you need at this point is an occupancy license.  This acts as your business license but also makes sure the place you are occupying is meeting standard regulations.

How to Start a Construction Company: Second Step

In this step of starting a construction company you will want to get set up with the different types of insurances that you will need while running a construction company.  The insurance vary greatly from region to region so check with your insurance company for the types you need.  Some types you may need will be commercial vehicle insurance, liability insurance, disability insurance, worker compensation, builders insurance, and bonding.

If your construction company is going to be building houses from the ground up you will need a different kind of insurance than a construction company that does basement renovations.

For that matter there is also different kinds of construction companies.  Here is a list of a few just to help those that may not know a whole lot about this industry.
Plumbing construction company
Electrical construction company
Building construction company
Roofing
HVAC
Framers
Drywallers
Tile setters
Road construction
Garage Builders
Landscaping
Fences and Decks
Oil Field Construction
Commercial construction
Residential construction
And more

In fact in most places construction is the largest employer of the state or province.

How to Start a Construction Company Final Step

At this point you can go out and get clients, but before doing so you should do a few more things.  Get your office set up, either in your house or at your shop.  Get any tools that you might need, I am guessing you work in the industry so you have most of the tools and as your make money you will buy more tools.  Get yourself a company phone, computer, business cards, and a website.  If you can’t afford a website at the moment go out and buy your company domain name in the .com .net or .org style domain name.  That way you have it for later on.  If all of those are taken then try to add a dash between one of the words.

You will want to talk with your lawyer at this point to get a general contract written up that will take care of the work you are going to do.  In some cases for larger projects you will want a contract just for that project.  Your lawyer will inform you which way to go at this point in your construction company.

How To Start a Construction Company: Making Money

Now you need to get some clients and some business.  There are a few ways to do this.  One way is by placing your company info on as many business directories as you can and place it in the online and offline classifieds.

Creating a marketing plan is the next thing to do.  Decide on the amount of money you are going to use for the different forms of advertising there is.  If you have $20,000 for marketing then break that up into many different areas.

Build two websites, one as a brochure that has your company name and the other one an information site that will be optimized to get you traffic from the search engines.

Use more of the money to join two or three networking clubs so that you can start to get others referring business to you.

Depending on the type of construction company you are creating will determine the type of marketing that you will have to use.  If you are going to build new construction then marketing to home owners is a little tougher in the beginning years.  You might have to start smaller by developing basements, doing renovations, and additions for people.  In this case you can market with postcards at a very low cost in a couple of areas that you live in.  For instance if you want to specialize in basement development then you can send postcards to people that live in a subdivision that is only a few years old.  When most people move into a brand new house they very seldom have a developed basement.

If you are going to do renovations then market to people in areas that have more money and that area is 20 years old or older.  There will be many people in that neighbourhood that will want to start renovations pretty soon.

If you have the cash to start building houses then try to joint venture with some local architects or advertise online.  In my area home builders Edmonton gets typed into the search engines over 1000 times per month.  Just getting 15% of those people on your website gives you 150 people per month that are looking to get a house built.  From there if you close just a half percent per month you will be building 8 houses per year.  For most first time home builders this will be too much work.

Whatever type of construction you are going to be doing in your company you will want to do the best work possible so that you get repeat and referred clients.  These are by far the best clients and the only way to get to this point is by doing great work and being a friendly and personable individual.

Another way to get clients for any kind of construction company is to attend and rent a booth at your local trades shows for home and garden or renovation type shows.  I have worked in shows in towns as small as 5000 people and have had results.

One step about marketing that might work for you is if you have a large circle of friends.  Tell all of them about your new venture and have them tell their coworkers and family about your new business.  This will work great if you have been in the construction industry for awhile and have had success while working for other companies.  If you have not been building for long then you better have your carpenters ticket or something that will help ease any tension people will have after they have hired you.

People have something called buyers remorse, and in this case the project you are working on can take anywhere from a week with a small bathroom to a year or so with a full house.  Even after you have completed many projects you are going to find that some people cannot deal with the stress that construction projects will create on them.  In these cases you are going to have to reassure them and make them comfortable about choosing you.  Don’t take this personally, these people would have acted the same way if they would have chosen someone else as well.

Thanks for stopping by, please feel free to make comments or ask any questions.

Kelly

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How to Start a Construction Company