SITECH Rocky Mountain offers a full line of Trimble construction technology for job sites in Colorado, New Mexico, and far west Texas. Our headquarters is located in Aurora, Colorado, while we also have construction technology specialists strategically located across our territory of influence. We offer machine control systems, construction software solutions, site positioning systems, paving control systems, fleet and asset management, and many other solutions based in construction technology.
In today’s blog, we are going to take a few big steps back from the specifics of our solutions. Instead, we’ll take a general look at something many of our current clients once had to do (and something our future clients will surely need to do) — learn how to start their own construction company.
As the title of today’s blog has already revealed, we’ll be outlining five key steps to starting your own construction business. Now, don’t get us wrong, these steps are essential to the process, but don’t take them as an exhaustive list of everything you need to know. Instead, we hope this article inspires your research and brainstorming while providing an effective foundation for you to build off.
That said, let’s dive in!
Step One: Research Your Local Market
One of the easiest ways to start your market research is by utilizing the U.S. Small Business Administration. There you can find a plethora of free resources to help guide your research. Get access to data on customers and markets, including age profiles, spending habits, and much more.
After that, you can begin your own construction market research. It’s a wise idea to start by talking to your contacts who are already in the industry itself. From there you can branch out to perform independent research by using questionnaires, surveys, focus groups, or whatever medium you prefer.
Step Two: Write Your Business Plan
Once you have analyzed your research and feel confident your “supply” will fill existing market demand, it’s time for everyone’s favorite step — writing a business plan!
Make sure your business plan features the following:
- How you structure your business
- The services provided
- The types of jobs you will be bidding on
- Your target demographic of customer
- How many employees you plan on having
- How you will market your business
- Initial estimated costs of starting and maintaining your business
- How much revenue you intend to have in your first year (among other KPIs)
Be sure to do some additional research on what construction business plans should include!
Step Three: Get A Loan
Assuming you aren’t able to fund this business with only your own savings, you’ll need to find a way to finance this venture. You can look into private lenders, government loans, credit unions, government funding programs, or even bank loans. Check out USA.gov to see a list of sites where you can look into receiving loans or grants that match your business needs.
Step Four: Register Your Company
There are plenty of hoops to jump through when starting a business. Once you have a business plan together (and perhaps a loan), you should register your business to make it a legal entity. This helps provide tax benefits, legal benefits, and personal liability protection. You’ll need to register your company on the local, state, and federal levels.
After that’s done, it’s time to find appropriate licenses and permits. Check out the federal licenses and permits page on the SBA website for more information, while keeping in mind that you’ll need to jump through several state-level hoops as well. These could include zoning ordinances and more. Finally, you’ll then move on to securing insurance for you and your employees. At a minimum, most states and construction contracts mandate that you carry worker’s compensation insurance, but you might need other kinds of coverage as well.
Step Five: Find A Mentor You Trust
This might be the most important step of all (and hopefully it’s one you thought of already). Find a mentor who has established success in the construction industry. Pick their brain; be a sponge, and ask as many questions as you can. Many new construction companies fail because they didn’t plan effectively. Finding an old-timer who can help you get a lay of the land is key to your company’s success.
Again, the above should serve as a great starting point for you and your future business. We wish you well here at SiTech Rocky Mountain!
Contact SITECH Rocky Mountain Today!
We hope you’ve enjoyed today’s article. We hope that you feel inspired enough to begin your research and planning in earnest! And when you do found that successful business, make sure you come to us at SITECH Rocky Mountain for all of your construction technology needs. We offer elite construction management software and technology solutions, in addition to short-term and long-term rentals. Reach out to us at your convenience!