If you’re looking to get into business for yourself, and you have the skills and experience, then construction is a great option.
The United States construction industry is well over a trillion dollars, and there are always new companies starting up or coming to the fore. However, it’s not as simple as renting some equipment and getting to work.
There are a lot of opportunities out there, but you have to take the time and do things right. If you don’t know where to start, here are some tips to get your contractor company off the ground.
Table of Contents
Make a Business Plan
You never try to start any business without a plan. Some wannabe entrepreneurs try to skip over this part, and they soon become ex-wannabe entrepreneurs. You have a much better chance of being successful when you have a plan than if you don’t. In your plan, map out every aspect of your business and describe how it will work.
How will you get your equipment? How many employees will you have? What will your marketing strategy be? As you do this, set some goals to aim for and map out how you plan to reach them. Your business plan is important because not only does it give you a guide to success, but it’s also required if you want to get funding or support for your company.
Get Financing
That brings us to the next tip. A contracting business has very high startup costs. You need tools, equipment, employees, vehicles, and everything else that it’s involved in building and renovating.
Unless you are already independently wealthy, you will need some kind of funding for your business. There are several options available to you. For one, you can get a business loan.
This can be hard since your business doesn’t have a credit history and isn’t established, but there are lenders who are willing to help companies with good business plans.
The federal government also has several programs you might be able to access if your business qualifies. You may not even have to pay them back if you meet their requirements. Angel investors are people who want to invest in promising businesses.
If an investor likes your plan and thinks that you can pull it off, then they will invest in the hopes of getting back some of the profits. When you are starting up, make sure you have enough funding to cover your initial period. You can’t count on making a profit right away.
To Buy Or To Rent
A craftsman is only as good as their tools, so make sure you have quality equipment when you start going out on jobs. Heavy equipment is very expensive, so you’ll have to decide whether you want to rent or buy. When you purchase equipment, you own it, so it’s an asset that you can sell in the future if you want.
However, you’ll need a lot of money up-front that you might not have. The best thing about leasing is that the cost is broken down into monthly payments. However, you will never end up owning the equipment when you lease. You’ll have to take a look at your finances and your options to make the choice that is right for your business.
Marketing
If your business is going to be successful, then you are going to have to get clients. To do that, you will need a solid marketing strategy that will work with your budget.
A great option is to hire an agency that handles contractor SEO services. They will optimize your website so it is on the first page of search engine rankings when people in your area search for your type of company. You can do this yourself, however it will take longer and it involves a lot of time that you probably don’t have.
You can also target social media ads to people in your geographical area. SEO and social media will get your brand in front of fewer eyeballs that broadcast advertising, but those people you do reach will be more likely to use your services.
Along with all this, one of the best things you can do to market your business is network. Make connections with other businesses in your industry, and make sure you are at community events. People will be more likely to hire a company run by someone they know.
Hire a Great Team
You might be the one starting up the business, but the team that you hire can make or break you. When you’re up and running, you will be judged by the work that you do. Therefore, you need a team that you can trust to get the job done right and treat your customers with respect.
Too many business owners try to save on salary by hiring unqualified workers, thinking that they can train them up. They also might be in a rush to hire and don’t have a chance for quality applicants. Take your time and be patient. Hiring the wrong people is a lot worse than having to wait for the right people. You will be glad you did in the long run.
While this all might sound difficult, it really isn’t. If you do the legwork and put in the work, you will set your contracting business up for success.
