According to research, construction project spending in the U.S. came to $1.04 trillion within a single decade. This statistic illustrates the principle once voiced by Winston Churchill — “we shape our buildings. Thereafter, they shape us.” Indeed, construction plays a major role in our daily experiences and quality of life. If you have a passion for building, you can harness it and generate profit by starting your own construction business. Consider the following six tips to help you attract clients, win contracts, and lead your business to success.
Starting a business is a challenge in any industry, but it might be even more difficult when you specialize in construction. You’ll have to gather materials and build a reputation before you have a steady stream of clients. Before you get started, you should develop a strategy that covers your plan for getting your business off the ground.
A major component of your business’s success will be your ability to network successfully. Rather than waiting for prospective clients to find your services, go out and find prospective clients. Networking will help you learn about projects, spread the word about your business, and bid on contracts.
A successful construction business relies on a team of dedicated, hardworking contractors. It’s imperative that you find professionals with a great work ethic and the right skill set. You can post ads online seeking applications, or you can see if you have friends or family with prior construction experience.
Failing to create a business plan is the worst mistake you can make as a burgeoning construction entrepreneur. You need to have a detailed, specific outline of your plan for hiring people, marketing your services, and winning contractors over competitors. It’s important to put it into writing so that you can keep yourself accountable.
The best way to drum up business is by word of mouth, but you’ll need to maintain an online presence to garner business from web search results, too. Your website should be user friendly and feature strong marketing language and attractive visuals.
Too many professionals make the mistake of choosing the wrong type of business. Consider forming an S-corp—this will allow you to enjoy pass-through taxation, savings on self-employment taxes, and the ability to claim losses as deductions. A formation service can help you establish an S-corp and complete your state’s registration requirements.
When you decide to start your own construction company, you’ve made the first step towards a lucrative business.
In order to maximize its profits, though, you’ll need to create a business plan, hire a great team, choose the right business structure, and create a website that attracts customers.
A career in construction can take you all the way to starting your own company. Learn more about the endless possibilities in this industry with our interactive career path.