5 Tips for Starting a Small Construction or General Contracting Business
In this article we will be discussing the basic factors on how to create your own general contractor business. Of course, starting any business is very challenging and only about 5% of business succeed. The rest fail within the first 3 years. Now, we aren’t mentioning this to turn anyone away from not starting their own business, but if this is something you are seriously considering doing, realize that it is a very challenging undertaking. It takes an extreme amount of hard work, focus, planning, capital, organization, and patience in order to build a successful business. With that being said, we’ll dive into the basics of how to get up and running at a general contracting business.
1). Get help and/or a mentor
This is one of the most useful things you can do to jumpstart your business. Most of the time, new business owners do not have any experience in starting a business. If you can get a mentor, you can literally bypass years of struggle and hardships by learning and listening from a mentor who has already made it through those times and knows where you are.
2) Get Financing
Starting a business is not cheap, especially business as a general contractor. You will want to make sure you have your finances in place. If you need to get a business loan, you can check out these free resources: https://www.business.usa.gov/ and https://business.usa.gov/access-financing
3) Get licensed, Bonded, and Insured
As a general contractor you will want to make sure you have all of the appropriate licenses and bonds. Doing so will help clients understand that you are for real and that you are hear to stay. It also keeps you in check from a legal perspective and can protect you from some cases.
4) Develop a health and safety plan
General contracting does involve occupational safety risks from time to time. Depending on the type of contract work you are doing, you could be on roofs, climbing ladders, around large mechanical equipment, and so on and so forth. You will want to make sure that should any accidents occur, you have a safety plan for any occupational accidents.
5) Finding and Hiring Labor
Of course, no one man can build a house by himself. You will need to hire labor and employees to help run day to day business. You may also want to hire office staff, such as billers, front desk people, and a sales team. Check out this article by the SBA on how to hire your first employees.
These are 5 very important issues that should be the first ones that you look into when thinking about starting your own general contracting business. As mentioned earlier, there are many other factors and things that you must have in line in order to run the business successfully, but these five tips can help get you started!
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