Starting your own construction company can be smart if you’re a land developer. It will allow you to increase production, take on more projects, and increase profits. As with any new business venture, Land Developer Damon Becnel knows that there’s a lot to learn and a lot of planning that needs to be done.
Similarities With Land Development And Construction
There are quite a few similarities between land development and construction. Both require a lot of planning and foresight. You’ll need to find the right piece of property, get the necessary permits and approvals, and hire the right team of experts to help you get the job done.
Damon Becnel says that the main difference is that construction companies build the structures being developed. This means that you’ll need a team of skilled laborers at your disposal. If you don’t already have experience in this field, it’s important to partner with someone who does.
Planning And Starting Your Construction Company
Starting your own construction company can be very lucrative, but it’s important to plan ahead and take the necessary steps to ensure your business is successful. Here are some tips to help you get started.
1. Choose a business structure.
The first thing you’ll need to do is choose the business structure for your company. There are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has its own advantages and disadvantages, so be sure to choose the one that makes the most sense for your business.
2. Register your business.
Once you’ve chosen your business structure, you’ll need to register it with your state’s secretary of state office. This will give you an official legal name for your company and allow you to open a bank account and apply for licenses and permits.
3. Get the necessary licenses and permits.
Depending on the construction work you’ll be doing, you may need additional licenses and permits. Check with your state’s licensing board to find out what you need.
4. Find a good location.
You’ll need to find a place to set up shop, whether a physical office or just a storage shed for your equipment. Make sure you’re in a visible location that potential customers can easily find.
5. Get insurance.
Insurance is essential for any business, but it’s especially important for construction companies. You’ll need liability insurance to protect yourself from lawsuits and workers’ compensation insurance to cover your employees in case they’re injured on the job.
6. Hire employees.
Unless you plan on doing all the work yourself, you’ll need to hire employees. Start by advertising for positions online or in newspapers. Then, conduct interviews and background checks to find the best candidates.
7. Purchase equipment and supplies.
You’ll need to buy or lease construction equipment, such as excavators, bulldozers, and trucks. You’ll also need to stock up on supplies like lumber, concrete, and tools.
Next Steps For Once Your Construction Company Is Running
Now that you’ve started your construction company, there are a few things you’ll need to do to keep it running smoothly. First, you’ll need to stay current on the latest industry news and trends. This will help you find new projects and keep your business growing.
Find The Right Property
The first step in starting your own construction company is finding the right piece of property. Ideally, you should look for a large parcel of land that can be divided into smaller lots. This will give you the most flexibility in developing the property.
You’ll also need to ensure the property is zoned for commercial development. Otherwise, you could run into problems down the road.
Get The Necessary Permits And Approvals
Once you’ve found the perfect piece of property, you’ll need to get the necessary permits and approvals from your local government. This can be a lengthy and complicated process, so it’s important to have patience.
If you’re not familiar with the permitting process, it’s a good idea to hire an experienced lawyer or consultant who can help you navigate through it.
Hire The Right Team Of Experts
As we mentioned earlier, one of the key differences between land development and construction is that construction companies actually build the structures. This means that you’ll need a team of skilled laborers at your disposal.
If you don’t already have experience in this field, it’s important to partner with someone who does. They can help you find the right contractors and suppliers and offer advice on how to run your business effectively.
Budget For The Unexpected
No matter how well you plan, there’s always the possibility that something will go wrong. That’s why it’s important to have a contingency fund to cover unexpected costs.
Ideally, your contingency fund should equal 10% of the total project cost. So, if your project is estimated to cost $1 million, you should have $100,000 set aside in case of an emergency.
Create A Marketing Plan
Once your construction company is up and running, you’ll need to start marketing it to potential customers. This can be challenging, especially if you’re new to the industry.
One of the best ways to market your business is to create a website and use social media to promote it. You can also hand out business cards and flyers and participate in local events.
Starting a construction company can be a daunting yet very lucrative venture. With the right advice and planning, it can be a successful endeavor. Damon Becnel hopes these tips will help you get started on the right foot. Remember to stay up to date on industry news and trends, and don’t be afraid to ask for help from experts in the field.
Featured Image by Siggy Nowak from Pixabay