How to Start a Construction Business
by Pamela Harris on March 05, 2017


Owning your own construction business can be very rewarding, but it also takes a lot of work. Not only do you need to think about how you are going to pay the start-up costs, but you need to come up with procedures for marketing yourself and completing your projects. If you commit yourself and take the time to plan ahead, you can have a successful construction business!

Do market research. Before you even think about starting a business, you need to understand your market. Start investigating the potential profitability of a construction business in your area by consulting industry publications for information about market trends specific to the construction industry in your area. The U.S. Small Business Administration is also a great resource for finding relevant industry information. In addition, you should find out what other companies offer similar construction services in your area, how much they charge, and what kind of reputation they have.

  • You can also learn more about your community's needs for construction services by getting out there and talking to local residents and business owners.
  • Be sure to consider the demographics of your area. You need to provide services that the people in your community will want and will be able to afford.

Write a business plan. Putting together a business plan that establishes your business goals and procedures is an essential step to starting any business. This formal document will help you understand everything that is involved with starting and running your business. You will also need to present your business plan to any potential lenders, so be sure to put plenty of time into developing it thoroughly.

  • Your business plan should contain separate sections that explain in detail how you will structure and manage your business, what kind of services you will provide, who your target market will be, how many employees you will hire, how you will market yourself, how much competition you will face, how you will differentiate your business from competitors, how much it will cost to start and maintain your business, and how much money you expect to make.
  • If you have never written a business plan before, you might want to look into hiring a professional to help you write it.

Get support. Starting a business is a complicated process, so you might benefit from the advice of an experienced mentor. Check out the SCORE Mentors Program to get matched with a mentor from your industry for free. You can also get guidance from your local Small Business Development Center. Female entrepreneurs can also look into Women's Business Centers, and veterans can get extra help from the Veteran's Business Outreach Center.

Decide where you will run your business. You will need a property that provides an office for your administrators, large storage space for tools and equipment, and parking for your construction vehicles. Some construction company owners work from home. You could begin your business at home, but as it grows, you may want to consider finding an office location.

  • Keep in mind that if you operate your business out of your home, you will need a special license for home-based businesses.
  • Even if you run your business from home, you will need to budget for a few office-related expenses, including a dedicated business phone line, an organized work area (if you don't already have one), and maybe a PO box if you don't want to get business mail at home.

Get the funds you need. The startup costs associated with a construction company can vary dramatically based on where you operate and what services you provide. Keep in mind that you will need funds to lease or buy vehicles, equipment, and tools. Additionally, you will have to pay bills, advertise, and pay salaries. Assuming you don't have the funds readily available, you need to apply for financing.

  • The U.S. Small Business Administration may be able to help you with financing, even if you are not approved for traditional loans.
  • Be sure to check out to see if your business qualifies for any government grants

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Comments (1)

Akilesh Akil on March 09, 2017 at 03:50 AM PST
Hey! Great Tips! Hope this article will helpful for those people who are looking to start construction business. Wonderful article. Make use of this! Thanks for sharing! Keep Rocking!
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