Starting a contracting business is a big step towards freedom. You’re free to make your own decisions, and essentially do whatever you’d like.
That is, as long as you have a consistent source of projects and staff to do the work for you. It may take some time to get there, but with the right foundation, you’ll have a thriving business in no time.
Read on to find out how you can start to build your business and thrive.
Your Business Plan
Yes, you need a business plan. You wouldn’t start a contracting project like building a home without a plan, would you? Why would you treat your business the same way?
Your business plan is an essential roadmap to build a successful business. It will detail everything from your market potential, competition, risks, strengths, and opportunities.
You’ll also detail your financials in the business plan to make sure that you have a very sound business model and you’re profitable sooner rather than later. Plus, if you intend to seek outside investment in the form of loans, you need to show that you have a solid business foundation from the start.
Licensing & Company Formation
Once you know the challenges and opportunities of starting your contracting business, you can take the next step and form a company name. You can start by researching names on your state’s Secretary of State’s website to make sure you choose a business name that’s not already taken.
When you set up your contracting business, you’ll have a choice between different corporate structures.
You’ll want to seek the advice of a business attorney and an accountant to understand the tax implications and liabilities of each structure.
You also have to get the appropriate licenses to operate as a contractor in your state. Different states will have different rules and regulations regarding contractors. You want to make sure that your business has the appropriate licenses and insurance in place before you start.
Capital for Your Business
There’s a good chance that you’re going to need capital for your business. In your business plan, you discovered what you’re going to need and how much it will cost. That includes construction equipment, marketing costs, office space, and equipment.
In any case, you’re going to have to take your business plan to the bank or to other lenders or investors to get the startup cash you need to get your business off the ground.
Starting a Contracting Business
Starting a contracting business is the first step you can take towards freedom. You can build a business that thrives and you do work that you love when you want to.
With this level of freedom does come a great amount of responsibility. You need to make sure that you start the business with a solid foundation. That includes setting up your business with the right structure, business plan, and capital.
Want more business tips? Check out this article that shows you how to manage cash flow problems.