Start your own company
A lot goes into starting a company and not only financially. A great business plan, registration of the company, finding qualified personnel and a working marketing strategy that distinguishes the enterprise from the rest, are key.
The different factors include:
- A business plan
- Registration of the company
- A business entity
- Applying for licenses
- Business insurance
- A business plan
A solid business plan is important to the success of any business. Such a plan ensures that crucial ideas and visions of the company are sober and actualization leads to profit.
A plan is fundamental and projections from other parties and experts in the field are required to ensure proper amendments are made. In case of loans in raising capital, a detailed plan and proposal should be drafted to gain the trust of the funding parties.
Therefore, it’s important to create a winning business plan.
- Registration of the company
After a good business plan is drafted, take a proper look on the rules, documents required and licenses on construction companies. The construction sector is unique to any other business thus emphasis should be made on decisions made during registration.
Certain aspects of search as safety of construction workers is crucial in the construction field. Find out what’s needed to register a construction business in your state.
- A business entity
Registering of a company as an entity is a major stride towards realization of the company.
Several methods of registering a business are available, but limited liability corporation (LLC). This option ensures easy paying of taxes, and covers personal assets in case of debts or legal action against the company.
Different options of LLC are available to choose from depending on the structure of the company and what is desired.
- Applying for licenses
Municipalities or local governments have licenses to be acquired by construction companies or contractors functioning in their jurisdictions.
However, some licenses are specific depending on the field the company is working on such as licenses to install electric equipment in a project.
- Business insurance
When starting a construction company, insurance is usually crucial to avoid losses in the company operations. This is because of such companies’ relation to heavy machinery and dangerous fields such as electricity and other tools.
The other fields can cause serious damage or injury and sometimes fatalities. Such insurances protect the company against legal actions from unforeseen circumstances the business might run into.
Types of Construction Companies
- Small Renovation Contractors
These types of companies deal with small scale projects requiring little capital which cannot be manageable in large entities.
- General Contractors
These are experts in new projects or the modifications of existing structures. Instead of subcontracting projects awarded, general contractors do the work themselves. Some of the companies in this category specialize in public works.
- Owner-Builder
Such companies work on projects for their own ownership until completion for sale or rent as they work on basic operations such as repairs.
- Real Estate Developer
They are a type of owner-builder who could sell the projects after or before completion apart from constructions for personal ownership. One-family and two-family home builders fall under this category.
