New Jersey is a great place to work as a general contractor. The Garden State offers contractors the opportunity to build a thriving business in a growing economy. But before you start drawing up business plans, you will need to learn and follow New Jersey’s steps for how to become a general contractor. Read more
Different U.S. states set different regulatory requirements for professions. One commonly regulated profession is general contracting. A general contractor is responsible for supervising a construction project. General contractor license requirements may vary from state to state, and the requirements may change considerably with new legislation. Read more
For property owners, project owners, general contractors and anyone else facing a project with high costs, hiring an unlicensed contractor can seem like a tempting money-saving prospect. Rest assured, any potential penny-pinching you could gain from unlicensed contractors is back loaded with future costs and huge liability risks. Read more
Why it is Vital to Hire a Licensed Contractor
When you need to hire a contractor to perform any sort of construction job, naturally you want to get the best deal possible. There are very important things to keep in mind, however, when shopping for the best company for the job. The single most vital of these is to be certain your contractor is licensed, bonded and certified. Unlicensed contractors are going to vie for your business by quoting you far lower prices than licensed ones, but you’ll pay the price in quality of work and risk. Here’s a look at why you want to hire a licensed contractor over an unlicensed contractor. 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.