How To Start A Construction Company With No Money?
If you are looking for ways to get started in the construction industry then this article will give you some ideas. If you have been thinking about getting into the construction industry but haven’t yet, then this article will provide you with all the necessary information to get started.
The first thing you need to do is to check out the various types of licenses that you may need. It is possible that you could already have what you need but you just don’t know it yet. In some areas you may need to have a general construction license, in other areas you may need to have separate licenses for electrical, plumbing and HVAC work.
Inquire at the local contractors’ board as to what type of license you will need in order to start your construction business.
You will also need to decide what type of entity you want to set-up your construction company. You can set-up your company as a corporation or a limited liability company (LLC). An LLC can offer some benefits over a corporation but it is harder to set-up so it is recommended that you seek the help of an attorney when setting one up.
Next you will need to look for office space. This does not have to be an actual office but could just be a space where you keep your files and meet with potential clients. When looking for office space you will need to take into consideration of where potential clients are located.
If you intend on hiring employees then you will also need to look for space where you can have them work. This could range from a two car garage where you can do small jobs out of to a warehouse where you can store materials and heavy equipment.
The next thing you will need is heavy equipment. This may include things like backhoes, dump trucks, rollers and smaller tools such as drills and saws. Unless you intend on specializing in a certain type of job you will need to get a wide range of equipment.
When looking for equipment you can either buy used or new. Obviously buying used can be much cheaper. You just need to make sure that you know what you are doing and take the time to thoroughly inspect each piece of equipment before you buy it. You will also need to take into consideration repairs and maintenance which can also get expensive.
Next you will need to find a supplier of construction supplies. Most of the large chain stores will not give you the same discounts that a supplier just opening up could. Many of these businesses are willing to give big discounts on bulk orders in order to get their name out there.
You will also need to get insurance. Depending on where you live and what your local ordinances are you may be required to have a particular type of insurance in order to do business. You may also need to have public liability insurance as well.
Finally you will also need to get a bank loan or some sort of financing. You can expect to have to put up most if not all of your personal assets as collateral so you will want to make sure that you have enough equity in them.
If you are starting a large company you will likely need millions of dollars to get started. It is also very important to keep detailed accounts of all the money that comes in and goes out. You will also need to hire and provide jobs for people who may depend on you for their livelihood. This is one of the biggest responsibilities you will have so make sure that you are ready for it.
Sources & references used in this article:
- Trust and reputation for service-oriented environments: technologies for building business intelligence and consumer confidence (JG Longenecker, JW Petty, LE Palich, F Hoy – 2013 – Nelson Education)
- Building business in post-communist Russia, Eastern Europe, and Eurasia: Collective goods, selective incentives, and predatory states (E Chang, F Hussain, T Dillon – 2006 – books.google.com)
- Building business networking: A proposed framework for Malaysian SMEs (D Duvanova – 2013 – books.google.com)
- Building an import/export business (AG Farinda, Y Kamarulzaman, A Abdullah… – … Review of Business …, 2009 – researchgate.net)