If you have a talent for working with your hands or if you envision yourself being involved with a project of epic proportions, then perhaps a career in the construction or contracting industry is right for you. The Aurora Chamber of Commerce shares some helpful tips on landing the opportunity of all opportunities in this vibrant and exciting industry.
Finding the right location for your business
While many businesses can be done in the comfort of home nowadays, establishing a business in the construction or contracting industry is somewhat different, as you will need a suitable office in the right location to give the right impression. Moreover, it may pay to be central to where commercial developments are happening as well as close to suppliers of raw materials. You'll also need access to lots of storage space in the form of a warehouse. Additionally, you’ll need ample space for parking and loading materials on and off your construction vehicle.
Create a business plan
Creating a solid business plan will be a paramount step in planning your construction company because it will not only have to highlight how you intend to reach your goals, but it will also play an instrumental role in determining how eligible you are for securing the necessary funds in the start-up phase of your business when you are going to require a lot of capital for machinery, equipment, and more. Furthermore, your business plan should include certain information to improve your chances of success, like what services you will be offering and your profit based on your initial financial projections.
You’ll also want to include information about how your business will be structured from the beginning. As one example, you may want to choose an LLC. An LLC offers potential pass-through taxation, self-employment tax savings, and the option for business owners to claim losses as deductions on their taxes.
Choose your tools
In construction, you have to rely on the tools of your trade. But your tools don’t have to be limited to those you can carry. One of the most useful tools available to you as a business is home builder software. With home builder software, you can create more accurate estimates for jobs and bid on them faster while also saving money and driving revenue. Your business will run smoother with this type of software.
Use PDFs to Make Running Your Business Simpler
A lot of your time spent in this industry will be out in the field, not in an office where you have easy access to a filing cabinet with all of your business’s most important documents. That’s why it’s wise to make PDFs your go-to over paper documents. PDFs are a great format for documents you use to conduct business, like contracts and expense tracking, because they can be accessed and edited on any mobile device, including smartphones and tablets. They can also be sent with password-protection to protect your, your business partners’, and your clients’ information. Adobe Acrobat’s PDF tools make any edits you need to the text, photos and illustrations, and layout of these documents so they always have the exact information you need. You can even use Adobe’s form filler tool to request and submit digital signatures so you can close deals on the spot!
You have to comply with certain legislation
The construction industry is a strictly-regulated one, which is why you should look into the licenses that will be required to properly launch your business. For example, most states require you to have a general contractor's license before you can begin your operations. Others also require a specialty contractor's license if you are going to perform additional work, such as electrical and plumbing work, for instance.
Considering your staff complement
ConstructConnect points out that another aspect of building your business will be considering your staff complement, specifically whether you should hire full-time employees rather than contractors — and vice versa. You could also opt for a mixture of both. This is where weighing up the pros and cons of full-time staff versus contractors comes in handy. It all depends on what you can afford as a business and how flexible you are in terms of taking on projects at a moment's notice.
Marketing your business
Another thing you'll have to pay careful consideration to is how you will market your business so that it stands apart from your competitors. Certainly, in today's digital age, you need a website to help you build and grow your online presence. If you don’t have the skills to build a website from the ground up or the budget to hire a coder to do so for you, there are plenty of services you can use to quickly put together a professional-looking website on the cheap.
These are just some of the basic steps of building your own construction business. Use these basics to build your company’s foundation. After that, make strategic decisions regarding details like your pricing model, choosing the right construction software, and providing the high-quality service that you'll become known for.
Become a member of the Aurora Chamber of Commerce to access the resources you need to build a thriving business in our community!
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