There are many businesses, but none are as lucrative as those in construction. In fact, a study from the Associated General Contractors of America, in partnership with construction software company Sage, noted that construction is in demand this year. Despite troubling circumstances, there’s still a lot of ongoing project requests for sewers, buildings, highways, and such. So, if you’re looking for a new business venture in New York, construction could be a viable option. But where do you start? What documents do you need? To help, here are some of the things that you need to create your own construction firm.
Learn About the Industry
Before you start planning, it’s important that you do your research. For example, construction isn’t just about knowing what to build and the materials needed to do so. You need to know about terrain, the feasibility of the designs, timeframe, and so much more. You may not need to know the nuances for each of these aspects, as you can hire people who do, but you need to be at least aware of the building process.
Develop a Business Plan
Planning has many parts, from deciding on an objective to developing a marketing strategy. The first thing that you have to determine, however, is the scope of your services. Will your focus be on transport? Private properties? The answer could change everything else in your plan.
Second, you’ll want to determine whether you’re hiring employees or contractors. Business.com highlights that it depends on how hands-on you want to be on your projects. Employees are the more affordable option and are great for people who know what they’re doing. Yet they will need to be given constant directions and you will be fully responsible for the construction project. On the other hand, contractors handle everything for you, from the procurement of materials to the day-to-day overseeing. Naturally, they’re more expensive.
Other things your plan should include are the source of your funds, where you’ll be procuring your materials from, your pricing rubric, advertising budget, and the software you’ll be using. Make sure that you flesh everything out to ensure a smoother operation in the long run.
Register your Business
Once you feel confident about your idea, it’s time to register your business. The place you need to be registering your business with depends on the type of structure you’re putting into place. If you’re taking the risk and registering your business as a sole proprietorship or a general partnership, for example, then you need to register with the appropriate County Clerk. If you’re forming an LLC in New York, you need to register with New York State, create an operating agreement, review your tax requirements, and meet the state’s publication requirements before you can begin operating. The processes vary depending on the type of structure you choose, so make sure you take advantage of the free legal advice offered by the NYC Department of Small Business Services if you’re unsure.
Market your Services
Once you have a full-team and are fully licensed to start operating, you’re now ready to look for clients. First, create a business listing on Google so your firm comes up when people search for your type of service on the search engine. Next, create a website that details information about your business, such as address, permit number, and contact number. This will make it easier for potential clients to reach you.
There’s no easy way to get your name around, especially with more established competitors in the vicinity. Chron emphasizes that you’ll have to get your first projects via word of mouth. Ask your relatives, neighbors, and friends to recommend your services to their circles. Offer discounts if you have to. Once you’ve finished a couple of projects, you can start being more aggressive in your marketing. Post testimonials on your page to increase the legitimacy of your services or pay for Google and Facebook to display your ads. If your customers are happy they will likely come back.
A construction business is not easy to start from scratch. You’ll need a constant working capital and a steady stream of clients to become successful. But as long as you have a strong plan, provide excellent service, and market your service well, you should have little problem establishing it.
Is a construction firm too big of an investment for you? Do you have practical experience? Read our guide on ‘The Things You Need if You Want to Build a Handyman Business’ in case this is something you want to do instead.