If you’re trying to launch your own startup in the construction field, there’s a lot to get figured out. From finding money to get your business going to determining how you want to operate, it’s a lot to wrap your head around. If you need some advice when it comes to getting things off the ground, here are five steps to get your startup launched.
Make your business plan
Having a strategy is an important part of launching any business. For example, you’ll need to determine who your target audience is and how you’re going to appeal to them. If you’re a construction startup focusing on home renovations, for example, you’ll want to make sure that you target new homeowners. On the other hand, if you’re more interested in catering to corporate clients, constructing new office buildings may be a better angle. Once you’ve figured out your niche, it’s important to determine who your competitors are and how you’ll differentiate yourself from them.
File the right paperwork
Starting any business involves setting up bank accounts and registering as a business entity. As a startup, you’ll likely want to register as a limited liability company, although some smaller operations may be more interested in starting out as a sole proprietorship. Insurance is also crucial if you’re running a construction business. Beyond needing a workman’s compensation policy, you’ll likely also need some other liability insurance. Make sure to do the necessary research for your city to make sure that there aren’t any other requirements you’ll need to meet in order to launch your startup.
Starting a construction business comes with a lot of expenses, so it’s important that you have financing from an external source in order to get off the ground. While some clients are able to pay for a deposit, generally you’ll need more than just that amount as a way to pay for supplies and contracts. One way to save is to head to a pawn shop for tools and equipment, but even then, if you’re buying a cement mixer or jackhammer, having an investor to help cover these costs is helpful. Whether you seek out others to fund your business or apply for a small business loan, having money is going to allow you to actually serve the customers you attract when you attract them.
Hire a team
One important consideration when starting a construction business is how you’ll be handling your staff. Some companies choose to hire a staff of regular employees, in which case they need to pay for benefits, too. Other construction businesses choose to hire different independent contractors for each job. While having regular employees is an extra expense, vetting new independent contractors for each and every job can add unnecessary stress and risk to your work. One solution is to have a few lead architects and project managers on staff, and let other independent contractors handle things like executing the build or handling forklift engine maintenance.
Once you’ve laid the above groundwork, it’s time to start attracting customers! You’ll want to make sure that you have a website set up since all of your display ads and other marketing should direct consumers to this page. Whether you’re running a targeted lead generation campaign on social media aimed at appealing to new home buyers or are launching a direct mail campaign, it’s crucial to have a way to attract potential customers to your company. Once you’ve started completing projects, make sure to ask your past clients to review you on Yelp or Google Reviews to help generate more positive word of mouth. These sorts of testimonials can be leveraged as a way to strengthen your overall brand.