You might have been working in the construction industry for a while now and are considering starting your own business.
As the US comes out of the pandemic, the demand is greater than ever. The average mid-sized construction job has people waiting 9.3 weeks for it to begin. A year earlier, that wait time was only 5.4 weeks to begin.
Whether that’s related to the housing demand or not, contractors are in need. Are you wondering how to start a general contracting business?
Read on to learn about what steps you should take to get started.
No matter the size of a business, one of the first things that should happen is to create a business plan. The business plan spells out the roadmap your business will use to succeed.
Your business plan will include goals for your business, services you’ll offer, information about your target market, and details about start-up costs like maintenance, licenses, permits, and other expenses.
It costs money to open a business. You’ll need equipment, business space, and perhaps employees. Your business plan should spell out what kinds of capital expenses you’ll have.
Once you’ve secured financing, you will also need to open your bank account and start to establish credit for the business.
If you want your business to succeed, this step is a must. Check the requirements of your state for licensing. Remember, if it’s possible you’ll work across state lines, you’ll need licensing in every state.
Your business will also need insurance to protect you and provide necessary confidence in you to your clients. You’ll need general liability insurance. If you have a business location, you’ll need property insurance, and you need to secure insurance for equipment and vehicles.
Defining what you will charge for your services can be one of the more challenging aspects of building your contractor business. You want to be sure to account for:
You need to find that fine line of what people will pay and still cover your expenses.
One crucial component of your business branding is creating your business website. In today’s tech-driven world, it’s often one of the first places a potential client will go to learn about your business.
Your website will allow you to present what you are as a business, what services you provide, and how customers can contact you. You can also present yourself as an expert in your field through a blog on your website.
You’ve done much of the prep work to create your business model, and now you need customers. It’s time to promote and market your business.
You can do this both offline and online to market your services. Read this article for digital strategies to promote and market your services.
Whether you plan to work on residential properties, business office space, or retail buildings, the demand for general contractors is great. Use these tips to learn how to start a general contracting business and get started today.
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