Qualifications

At least 5 years experience as a worker

Must pass the state exam

Step 1: Planning

Create a written business plan. Your business plan should be detailed with specific information on what

services your construction business will offer. How you will market your company and what tools and equipment you

need to purchase. A well written, workable business plan will highlight any gaps in your plans

as well as provide you with the information you need if you apply for loans or financing.

Step 2-Forming your business

Consider setting up your construction company as a limited liability company (LLC), corporation, or limited liability partnership (LLP) in order to protect your personal assets.

Each type of company has its pros and cons

All three types of businesses can be formed at your Secretary of State’s office for a fee.

Step 3-Finances

Determine your financing needs. You will need to have funds available to

purchase tools, labor and materials. Many small construction company owners

get started using their own credit cards or personal savings.

You can apply for a small business loan through the U.S. Small Business Administration (SBA) or your local bank.

Step 4-Licensing

obtain any necessary licenses and permits. Make sure you have an up-to-date contractor’s license. Check with your city, county, and state to determine their

requirements for running a construction company. You might need some special permits for specific construction jobs

depending on the regulations of your region.

Step 5-Insurance

Get insured Construction companies typically need

bonding insurance, general liability insurance, auto insurance and worker’s compensation.

Contact a commercial insurance agent for advice on selecting insurance policies for your construction business.

Step 6-Equipment

Purchase or lease construction equipment and tools. The tools and machinery you need will depend on the services

you plan to offer your clients. General contractors should also lease a small office space where

they can meet with clients.

Step 7-Cost estimation

Make sure you understand cost estimation. You must have a solid understanding of cost

estimation before you can effectively bid on projects.

Underbidding to win jobs will only make you lose your profits.

Bidding too high , however, will usually cost you the job.

Hire someone with experience in construction estimation if you don’t feel you can bid competitively.

Step 8-Hiring

Hire experienced construction workers. You will need to get together a crew of carpenters, masons,

roofers, electricians, plumbers, and other tradesmen who turn out quality work.

You will also need someone to manage your construction crew. You can oversee your own workforce if you plan to be on site all

the time. Hire someone with experience leading work crews and sticking to

a schedule if you plan to spend most of your time off site.

Step 9-Subcontracting

Hire subcontractors.You will need to subcontract any

work that your own employees can’t do.

Hire out only the subcontractors who are licensed.

Thank you for your time.

Any questions?