Starting a company is no easy task. Whatever your realm of business might be, it will test you and push you to places you never imagined. Construction work is no different, the hoops one has to jump through to get going are much more than having a pickup truck and a few power tools. With all the regulations, permits, insurance coverage and other paperwork, people tend to get overwhelmed. At first glance, it can look like a truly daunting task but a closer, more organized look can help immensely in figuring what to do and how to do it.
Plan it out
The first and obvious thing any future contractor should do is to plan out everything they might need. This will equate to the roadmap your business will follow and will determine important factors like financing. A fleshed out plan will help track business progress and make benchmarks to see how well it is doing compared to the plan that was set in motion. The most important areas to cover are, in no particular order: developing a cohesive marketing strategy, managing finances, coming up with a clear business description and coming up with a management summary.
Seek out funding
Financing the business is something everyone should be looking into before even considering anything else, without the proper coin for eventual problems and hindrances down the line – the business will tank before it has even started. The first logical step would be to look inside our own savings. This can be a bit of a gamble, but so is starting the business. If tapping into the savings account isn’t an option for whatever reason, there are other options out there. There are multiple platforms out there that help independent contractors find government funding to get a proper start.
Permits, permits, permits
Yeah, who would’ve guessed, there are numerous licenses involved. Despite having a business license, you’ll most probably end up requiring a permit for anything you can think of. This is both good and bad, o one hand – customers are assured that a contractor’s work is up to par. On the other, getting all of those can be a huge pain in the neck. If you’re in the States, then you’ll have to acquire special state licenses, specific to the state you’re currently operating in. It will be a pain, it will be frustrating but it is necessary so you can operate freely and not have to look over your shoulder every time you bring out the ol’ trowel.
This is more of a safety net than anything else, and what a safety net it is. Worker’s compensation is a must for any business owner, especially construction work where the chances of getting injured are substantially increased from the get-go. If any vehicles are involved, there’s auto insurance, builder’s risk is always present and, let’s not forget the crown jewel of paperwork – liability insurance. These will provide a layered defense for both your company’s well-being and its finances. You’ll also have contingencies in place should any of your workers get injured during a project, which helps both sides cope.
Don’t skimp out on surety bonds
Nowadays, most contracting jobs will require companies to obtain a certain number of surety bonds before they can do business. The folks over at Correct Constructions point out that this has become a norm and that even private customers can require specialized performance and payment bonds. The reason why this is weird is because these were almost exclusively related to government projects in the past and are now slowly seeping into the private sector. The effective three-way ensures that both parties are protected and can be reprimanded should they fail to fulfill their end of the bargain, in the end – it’s worth getting.
Get in touch
When all of these have been sorted, reach out and consult people about anything you could have possibly missed. Apart from these, there are other factors that can influence your business’ direction, they just can’t cause as much harm as these can. When considering starting your own company, look into the market, make a solid business plan and stick to it. Obtain any licenses or permits you may need early on to avoid headaches down the line and get coverage – safety first.