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The construction industry is a good industry to go into if you’re looking for consistent work. Construction workers are always going to be needed, especially as cities and towns continue to grow. You can make a lot of money by starting your own construction business, especially if there’s a need for one where you live.
Becoming a contractor doesn’t require several years of schooling, nor is it as expensive as other degree programs— but you still have the ability to make good money. If you’re thinking about becoming a contractor and starting your own construction business, keep in mind that there are many things you’re going to need to make sure that your business runs smoothly.
Key Things To Have In A Construction Business
#1: The Proper Licenses And Permits
If you’re going to school for construction, then you probably already know that you can’t legally do construction work on a house or other building without proper licensing. You may also be required to obtain certain permits before you can perform construction work on a building.
It’s important that you have everything in order before you take on a construction project because there can be legal consequences if you don’t. Licenses and permits apply to your company as well as yourself. All businesses need a license to operate legally, and some construction businesses also need permits to operate in a certain area.
#2: Business Insurance
In the same way, your construction business is going to need a license to operate, you’re also going to need certain types of insurance for your business. One of the most common types of business insurance is commercial property insurance. This will protect your business from physical damage, such as break-ins or damage caused by certain natural disasters.
You’re also going to need GLI (general liability insurance), which will cover your business from claims that your business caused damage or injury. Other types of insurance you’ll need are workers’ compensation insurance, business income insurance, and commercial auto insurance.
#3: Construction Software
Almost all businesses use some type of software that automates certain business functions that are too tedious for one to do by hand. One of the most common types of software used in construction is project management software. This software will keep track of and monitor your different construction projects, breaking them down into easier segments.
Project management software will allow you to be more organized, especially when you have a lot of projects to tackle in a specified time frame. Time management software is also useful to have because it will allow you to see where you’re putting the majority of your time, and how you can better manage your time to be more efficient.
#4: The Proper Tools And Equipment
Last, but not least, you’re going to need the proper tools and equipment to ensure that your business runs smoothly. Many independent contractors and other construction workers have tools that they have acquired throughout their schooling and apprenticeship before entering the workforce.
This is great if you already have tools, but now is also the time to upgrade to the best tools and get some practice using them before you take on your first construction job. Don’t forget that you’re also going to need a way to transport your tools and materials to and from the construction site. You’ll likely need a pickup truck with towing capabilities to get the job done.
This is just a brief overview of what you’ll need when starting your own construction business. The specifics of what you need will vary depending on what types of projects you’re going to be working on and whether or not you’ll be hiring subcontractors to work for you.
You’ll also need to write up a well-detailed business plan that explains exactly what your business will do and how you hope to achieve this. Make sure to also include your estimated startup cost, especially if you need financing for your construction tools and equipment.