If work is piling up faster than you can complete it, your contracting business may be ready for an expansion. But, are you really ready to hire new employees or move to a bigger location? If you don’t have a plan in place, the answer is no. In order to grow sustainably, you may want to follow these four business strategy steps. Read more
If you own a contracting business, payroll may be one of your least favorite tasks. Whether you have a designated payroll administrator or not, here are several tips and tricks you can learn to make the whole process flow seamlessly. Read more
Tips on How to Start a Construction Business
Starting a construction or contracting business is never easy, but for some it can be a gateway to a happy, productive and potentially lucrative life. Many entrepreneurial construction business owners cite the decision to stop being an employee and start being an employer as a turning point in their life.
The only problem is that not everyone knows how to start a construction business. There is no one way to go about it, since everyone’s process will be different based on their personal situation and local regulations. Regardless, there are some tips that can help overall, regardless of these variables.
So, to help those with the ambition and drive to start their own construction business, here are four indispensable tips to get you where you want to be:
Have a Lawyer Review Your Business Plan and Documentation
Your most important tool when first figuring out how to start a construction business will be your business plan. Here, you will structure your company, describe how it will obtain contracts and fulfill them along with any general goals, policies and procedures. On top of a business plan, you will need legal documentation like a business license, an OSHA compliance plan, tax filing arrangements and so on.
All of these documents could end up undermining your business’s success if they have any weaknesses or violations within them. Since not every business owner will be an expert in compliance, get help from someone who is. Many business law attorneys charge a small fee to review your documentation, your business’s structure and all of the legal aspects to ensure that you will not have any unanticipated setbacks from a legal point of view.
Make Friends with an Accountant
Just like you are going to need someone with law expertise to give your business plan a once-over, you will need an accountant to help you review your financial plan and get all of your paperwork in order in advance of tax season.
Many people hand off this role to a friend, a relative or an acquaintance of someone they know, but unless you have a degree in accounting, do not go the DIY route. You will likely end up biting off more than you can chew and have financial repercussions to show for it.
At the very least, ensure before filing your taxes that you have accounted for all of the exemptions that you are eligible for by having an expert review your tax return.
Take Advantage of the SBA Programs
The U.S. Small Business Administration has a slew of programs that offer both financial support and training resources for new business owners. Review their website to see how they can help you.
Don’t Forget Insurance
No matter how confident you are in your abilities, accidents happen — as do disasters. Go beyond the needed workers’ comp and liability coverage by protecting your assets as well as yourself. Extend coverage to areas like commercial auto and truck insurance for contractors in order to prevent client disputes from toppling your success.