Starting a business of any kind is a challenge, you will be consumed with money saving tips, unsolicited advice about hiring practices, and suggestions regarding branding, but a construction company is a challenge in its own right. We’re not just talking about the financial aspect of it. There are all sorts of factors that goes into opening your own construction company. In this article, we’ll be going over everything you need for your construction company.

Start Crafting Your Business Plan

All the top construction companies understand no business can begin without a good plan. At first glance, a business plan is mainly the visions and goals you aim to achieve. Creating your business plan also means writing each and every fundamental of the company and how you actually plan on making a profit. Starting a construction company is almost no different than opening any other business aside from a few small differences. What is your specialty? Are you going to be a residential construction company or a commercial one? Which types of licensing do you need? These are all things you need to cover on your business plan, so you can remain focused and organized.

Invest in a Fleet

No construction company is complete without its own fleet. In fact, this is actually a mandatory investment you have to make. Granted, a fleet can be rather costly as there’s a lot more to finance than just the vehicles. For one thing, you also have to purchase fleet insurance. This is a special type of car insurance that allows fleet owners to protect every vehicle they own with little problem. Fleet insurance enables you to put as many vehicles you have on just a single policy, which is far more affordable than investing into multiple policies.

Furthermore, you’re also going to need to purchase the right software and technology, so you can manage your fleet more effectively. GPS tracking systems are among the most important pieces of technology as it allows you to see where every vehicle is at any given time. Utilizing GPS-enabled fleet tracking isn’t the only thing you need, however. You’re also going to need ELDs, tachographs, dash cams and anti-lock brakes. If you’re looking to maximize your fleet management potential, you can take advantage of fleet telematics. Fleet telematics can act as an all-in-one solution that goes well-above GPS tracking.

Choose Your Business Structure

Once your initial plan is created, you then have to shift your focus to what business structure your company is going to have. Many small businesses are impacted by rising costs throughout their lifespan and the structure you initially choose will impact your company’s survival and profitability rates. A business structure is something that basically dictates how your taxes will be handled and what protects you from any legal or liability claim. You have four structures to choose from:

• Sole proprietorship, which is when you own the entire business
• Partnership, which is where you and another manage the company
• Corporation, which is when the company becomes a separate legal entity
• Limited liability corporation, which is a mix of the other three structures

To give you a little more detail, a limited liability company (LLC) is a structure that combines the best of other three structures. You’ll own the business as if it was a sole proprietorship, you’ll be able to onboard others like a partnership and you’ll have the protection of a corporation.