How to Start Your Own Small Construction Company

The construction business can be profitable, provided you keep tabs on all the internal and external factors which will affect the running of your business. With a little determination, and resources, you can start your own company. However, the process further requires careful estimation and consideration of business related expenses, along with state regulations.


  • 1

    Business plan

    Write a business plan, which details how you intend to carry your business, what services you will be providing, what sort of equipment and purchases you will need to make, along with the number of workers required. This will allow you to budget your business, and outline the sources of financing. The plan will allow you to analyse whether pursuing the construction business is feasible or not.

  • 2

    Registration and licensing

    Decide whether you need to list your company as a limited liability company or corporation, or a limited liability partnership, as it will enable you to protect your personal assets. This will merely depend on the size of your business. Consult an expert who will guide you through the basic procedure and advise you on the structure that will suit you the most.

    In addition to that, you will further require state specific licenses, such as tradesman permits, if you are giving services related to electric, plumbing, gas fitting etc. Moreover, surety bonds may also be applicable in your case, where construction bonds are required to operate legally. It will vary from state to state, therefore take help from a reputable agent.

  • 3


    Insurance is a necessary element in any business, especially in construction, as you aim to protect your business from certain claims, rising from injuries to workers, and other property damages. Here again the state requires you to specify the type of insurance you need. The options will include workers’ compensation insurance, disability insurance, bonding insurance, etc.

  • 4


    Your next task is to make the basic purchases. You will need to have an office where you meet clients. As for the equipment, you will need to purchase or lease it, depending on the type of services you are looking to offer.

  • 5


    Hire experienced construction workers to carry out the work. You will need a team  of people who are experts in the services you will be offering. This is the essence of your business, as you aim to provide quality service to your clients.

  • 6


    Now begin the marketing process. Find a couple of media sources which will allow you to enhance your client base.  Print business cards, and get help from other contractors you already know.

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