Construction Methods
Construction Methods

How to Start a Construction Company

Working in the construction industry can be a very lucrative endeavor. However, putting up a construction company from scratch can be a difficult journey.

If you want to start a construction company, you should be dedicated and would be able to put in the hard work. There’s a lot of things to do before you can get up and running, but the rewards are sure to be fruitful.

For those who want to get into construction, here’s a general guideline of the things that you have to do.

Do Your Research

This step is especially important if you don’t have a construction background, or if you don’t have a lot of experience in the industry.

Research is actually the most essential aspect that you should do before even deciding to start a construction business, or any type of business, for that matter.

Here, you will need to understand what construction is all about, what equipment and other assets are required, how profitable it would be, and other relevant information.

When doing the necessary research, it is integral to get information that is localized. This means that you should get statistics gathered from areas within or around where you would be putting up your business.

The more localized and targeted your research is, the more accurate your projections would be once you utilize these data.

Create a Business Plan

Once you are serious about putting up your construction company, and if you are confident that you can turn a profit, then it is time to create a business plan.

The business plan will serve as the blueprint of your company. Information to be included in your business plan may comprise of but is not limited to:

  • The scope of services that you would provide
  • The total capital that you would need
  • Sources of these funds
  • Who your target market will be
  • How to develop your competitive edge
  • List of competitors
  • Pricing
  • Required manpower and organization structure
  • Projected financial statements

The more complete your business plan is, the less things that you would have to consider on the fly during the succeeding steps and once you are in operation.

Register Your Company

Now, it is time to register your company. You can hire an accountant or lawyer to help you out with this process. Of course, you can also do this on your own.

At this stage, you would need to decide as to what type of business you would like to put it. This can either be in the form of sole proprietorship, a partnership, a corporation, or an LLC, among others.

You would also need to acquire the necessary permits and licenses. Different states would require different licenses, and this would also depend on the scope of services that you would like to offer to clients.

You would also need to acquire the necessary insurance to make sure that you are protected. Different types of insurance include general liability insurance, property insurance, insurance for any equipment that you would purchase, and worker-related insurance.

Hire the Right People

Of course, you would need to hire your workers in order to get any type of work done. This can range from managers, accountants, human resource personnel, admin staff, as well as engineers and other workers.

It is important to find a good blend of workers that already have experience in the field. It is necessary to have intangible attributes, as well. Your workers must have the same core values such as being committed to the job, self-driven, honest, and other traits that you find desirable.

Hiring the right people is a very critical step as this can make or break your company especially during the early stages.

Get the Right Equipment

The right equipment will include tools, equipment and machinery, and other items that you will use to get the job done safely and effectively.

Some things, like personal protective equipment, would need to be purchased outright. On the other hand, other items especially heavy machinery can be rented, or you can purchase them used.

Once you are in a good financial position, then you can opt to purchase or upgrade existing equipment.

Regardless of how you acquire your equipment, it is necessary to have a good inventory and maintenance system in place. In some cases, insuring them is also a necessity, as well as hiring someone that can maintain these items so as to minimize accidents or costly repairs.

Find a Market

Of course, you business will not survive long if you don’t get any customers or projects. It is critical to network and make sure that you are noticed by those looking for the services that you offer.

Effective ways to find a market and getting your brand out there include attending conferences, using social media, emailing or cold calling, online ads, and many more.

Find an effective way for potential customers to learn about your company and the services that you offer will result in projects and revenue coming in.


By following the steps mentioned above, you can start turning your construction business idea into a reality. By preparing and executing with care, you can take advantage of this very lucrative industry and earn big through both new and existing clients.

Through sound business decisions, you can slowly but surely grow your company and do further expansion in time.