How to Start a Construction Business

how to start a construction business

As with any idea, it’s just an idea until you develop a plan. The same is true when launching a construction or home improvement business like roofing, plumbers in san antonio, remodeling, hvac etc. Follow these 5 steps on How to Start a Construction Business, and remember it’s ok to ask for help or be mentored.


1) Write a Business Plan.

Writing a business plan can be daunting if you’ve never written one before, but take a deep breath as this first step is paramount. It will help develop your brand as well as answer many questions such as, your managing style, what services you will offer, who is your target market, how many employees will you need, marketing plan, your competition & how to differentiate yourself, start-up & maintenance costs and, most important, how much money you expect to earn.

Check out Small Business Administration’s step-by-step online business planning tool, or simply do a little research online as there are many samples to work from.


2) Secure Financing.

If dipping into your savings is not an option research local banks for a traditional loan, credit unions or community banks for a line of credit, or consider the SBA’s loan program. Caron Beesley, the contributor to the team, suggests the following articles:

· SBA Loans Explained – A 101 for Small Business Owners

· Don’t Qualify for Conventional Business Loan? Understand Your Options

· Small Business Financing Blogs


3) Get Legal! (licensed, bonded and insured)

Ensuring all the right licenses & permits, business insurance (including workers’ compensation insurance, unemployment and state disability insurance) and surety bonds are in place are another additional cost but they are necessary—this is a budget line you do not want to cut. This includes any subcontractors you hire; thus, it is recommended contractors require a copy of their tradesman licenses before they begin work. Your state business license office is a great resource for information.


4) Become a Know-It-All.

The construction industry is profoundly regulated, hence as CEO of your new construction company you should always be apprised of the industry news. Local home builder associations are a wonderful resource, and a great networking opportunity, as well as the’s Construction Industry Guide.


5) Don’t Forget Human Resources.

Before hiring any subcontractors, home improvement company or office help, familiarize yourself with basic HR policies and practices, as well as your state laws and taxes of hiring independent contractors. Again, SBA is a great resource so be sure to check out their Workplace Safety and Health Guide, as it provides resources to help you institute a safe and compliant work environment.