“Look at your costs and determine how much capital you’re going to need because construction is not like selling cupcakes where you get paid when you sell a cupcake.
You have to plan for and build up a little bit of money because even if you’re lucky enough to get a job right away it’s going to be 30 days or more from completing that job before you get any money.”Form your entity.
Crabtree says finding out what permits you need should be part of the business plan.“But you should wait until the company entity is formed before getting the permits so you can get the permits in the name of the entity,” Crabtree says.
He says it might be best for startups new to the industry to hire a service that can do the research to find out which permits you need for the work you plan on doing. Accidents happen on jobsites so you want to be protected.
“Brush up on what the term ‘indemnity’ means, especially for the little guys,” Crabtree says.
“Small contractors working on a big guy’s job can find themselves liable for anything that happens there.”Learn your labor issues.“First, learn I-9 compliance,” Crabtree says.
Companies are opening because they have work to do today.”With construction being the fastest-growing industry in the country, it’s important that new construction businesses get off on the right foot.
Crabtree offers six essential tips for anyone considering starting a construction business. “This seems very basic but it’s essential and not every startup has one,” Crabtree says.
Maybe you think you don't need a template for writing a business plan.
After all, some entrepreneurs succeed without writing a business plan.