{"id":8536,"date":"2019-01-03T17:17:33","date_gmt":"2019-01-03T17:17:33","guid":{"rendered":"https:\/\/www.growthink.com\/?page_id=8536"},"modified":"2025-12-15T19:48:40","modified_gmt":"2025-12-15T19:48:40","slug":"how-to-start-a-construction-business","status":"publish","type":"page","link":"https:\/\/www.growthink.com\/businessplan\/help-center\/how-to-start-a-construction-business","title":{"rendered":"How to Start a Construction Company"},"content":{"rendered":"<style>\nul>li {\n        padding-bottom: 10px;\n    }\nol>li {\n        padding-bottom: 10px;\n    }\n<\/style>\n<style>\n.btn-right {\n  background-color: #294961;\n  border: none;\n  color: white;\n  padding: 10px 20px;\n  text-align: center;\n  text-decoration: none;\n  display: inline-block;\n  font-size: 17px;\npadding:16px 31px;\n  border-radius: 8px;\n  margin: 14px 2px;\n  cursor: pointer;\n}<\/p>\n<p>.btn-right:hover {\n      background-color: #005900;\n      color: white;\n}\n@media only screen and (max-width: 480px){\n    .btn-right{\n      max-width:600px !important;\n      width:100% !important;\npadding:8px;\nfont-size:11px;\n    }\n<\/style>\n<p><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.growthink.com\/wp-content\/uploads\/how-to-start-a-construction-company.jpg\" alt=\"how to start a construction business\" width=\"1200\" height=\"530\" class=\"aligncenter size-full wp-image-21318\" srcset=\"https:\/\/www.growthink.com\/wp-content\/uploads\/how-to-start-a-construction-company.jpg 1200w, https:\/\/www.growthink.com\/wp-content\/uploads\/how-to-start-a-construction-company-300x133.jpg 300w, https:\/\/www.growthink.com\/wp-content\/uploads\/how-to-start-a-construction-company-1024x452.jpg 1024w, https:\/\/www.growthink.com\/wp-content\/uploads\/how-to-start-a-construction-company-768x339.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><br \/>\n<b>ON THIS PAGE<\/b><\/p>\n<ul>\n<li><a href=\"#myid01\">How To Start Your Own Construction Business<\/a><\/li>\n<li><a href=\"#myid02\">How To Start a Construction Company FAQs<\/a><\/li>\n<li><a href=\"#myid03\">Helpful Videos &amp; Slideshows<\/a><\/li>\n<li><a href=\"#myid04\">Additional Construction Industry Publications &amp; Resources<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"myid01\"><b>How to Start Your Own Construction Business<\/b><\/h2>\n<p>If you\u2019re looking to start a Construction business, you\u2019ve come to the right place. Since we\u2019re going to show you exactly how to do it.<\/p>\n<p>We\u2019ll start with key industry fundamentals like how big the market is, what the key segments are, and how revenues and profits are generated.<\/p>\n<p>Then we\u2019ll discuss the keys to not only starting a construction company but succeeding in it!<\/p>\n<p><strong>Importantly, a critical step in starting a construction business is to complete your business plan. To help you out, you should download <a href=\"https:\/\/businessplantemplate.growthink.com\/construction\/?utm_source=how-to-start-a-construction-business&#038;utm_medium=growthink&#038;utm_campaign=seo\">Growthink\u2019s Ultimate Construction Business Plan Template here<\/a>.<\/strong><\/p>\n<p align=\"center\"><button class=\"btn-right\" onclick=\" window.open('https:\/\/businessplantemplate.growthink.com\/construction\/?utm_source=how-to-start-a-construction-business&#038;utm_medium=growthink&#038;utm_campaign=seo','_blank')\">Download our Ultimate Construction Business Plan Template here\u2014><\/button><\/p>\n<h3><b>15 Steps To Starting Your Own Construction Company:<\/b><\/h3>\n<ol>\n<li><a href=\"#htsacc01\">Choose the Name for Your Construction Company<\/a><\/li>\n<li><a href=\"#htsacc02\">Develop Your Construction Company Business Plan<\/a><\/li>\n<li><a href=\"#htsacc03\">Choose the Legal Structure for Your Construction Company<\/a><\/li>\n<li><a href=\"#htsacc04\">Secure Startup Funding for Your Construction Company (If Needed)<\/a><\/li>\n<li><a href=\"#htsacc05\">Register Your Construction Company with the IRS<\/a><\/li>\n<li><a href=\"#htsacc06\">Open a Business Bank Account<\/a><\/li>\n<li><a href=\"#htsacc07\">Get a Business Credit Card<\/a><\/li>\n<li><a href=\"#htsacc08\">Get the Required Business Licenses and Permits<\/a><\/li>\n<li><a href=\"#htsacc09\">Get the Right Insurance for Your Construction Startup<\/a><\/li>\n<li><a href=\"#htsacc10\">Buy or Lease the Right Construction Equipment<\/a><\/li>\n<li><a href=\"#htsacc11\">Develop Your Construction Company Marketing Materials<\/a><\/li>\n<li><a href=\"#htsacc12\">Purchase and Setup the Software Needed to Run Your Construction Company<\/a><\/li>\n<li><a href=\"#htsacc13\">Hire Employees for Your Construction Startup<\/a><\/li>\n<li><a href=\"#htsacc14\">Create a Marketing Plan<\/a><\/li>\n<li><a href=\"#htsacc15\">Open Your Construction Business<\/a><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc01\"><b>1. Choose the Name for Your Construction Company<\/b><\/h4>\n<p>The first step to starting a construction company is to choose your business name.\u00a0\u00a0<\/p>\n<p>This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable.<\/p>\n<p>Here are some tips for choosing a name for your construction company:<\/p>\n<ol>\n<li><b>Make sure the name is available<\/b>. Check your desired name against trademark databases and your state\u2019s list of registered business names to see if it\u2019s available. Also, check to see if a suitable domain name is available.<\/li>\n<li><b>Keep it simple<\/b>. The best names are usually ones that are easy to remember, pronounce and spell.<\/li>\n<li><b>Think about marketing<\/b>. Come up with a name that reflects the desired brand and\/or focus of your construction business.<\/li>\n<\/ol>\n<p>\u00a0<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc02\"><b>2. Develop Your Own Construction Company Business Plan<\/b><\/h4>\n<p>One of the most important steps in starting a construction company is to develop your <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/construction-business-plan\">construction company business plan<\/a>. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.<\/p>\n<p>To enhance your planning process, incorporating insights from a <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/sample-construction-business-plan\">sample construction business plan<\/a> can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.<\/p>\n<p>Your business plan should include the following sections:<\/p>\n<ol>\n<li><b>Executive Summary<\/b> \u2013 This section should summarize your entire business plan so readers can quickly understand the key details of your construction business.<\/li>\n<li><b>Company Overview<\/b> \u2013 This section tells the reader about the history of your construction company and what type of business you operate. For example, are you a general contractor, construction manager, or specialty contractor?<\/li>\n<li><b>Industry Analysis<\/b> \u2013 Here you will document key information about the construction industry. Conduct market research and document how big the industry is and what trends are affecting it.<\/li>\n<li><b>Customer Analysis<\/b> \u2013 In this section, you will document who your ideal or target customers are and their demographics. For example, are you targeting commercial or residential customers?<\/li>\n<li><b>Competitive Analysis<\/b> \u2013 Here you will document your construction company\u2019s competitive landscape. Who are your main competitors and what strategies do they use? How will you position your company in the market?<\/li>\n<li><b>Marketing Plan <\/b>\u2013 Your marketing plan should detail how you plan to reach and acquire new customers. Which marketing channels will you use? What type of messaging will you use? Your marketing plan should address the 4Ps: Product, Price, Promotions and Place.<\/li>\n<ul>\n<li><i>Product<\/i>: Determine and document what services you will offer\u00a0<\/li>\n<li><i>Prices<\/i>: Document the prices of your company&#8217;s services<\/li>\n<li><i>Place<\/i>: Where will your business be located and how will your restaurant\u2019s location help you increase sales?<\/li>\n<li><i>Promotions<\/i>: What promotional methods will you use to attract customers to your restaurant? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization, and\/or social media marketing.<\/li>\n<\/ul>\n<li><b>Operational Plan<\/b> \u2013 This section describes how your construction company will be structured and run. It should include information about your business location, equipment, inventory, and staff. You will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.<\/li>\n<li><b>Management Team<\/b> \u2013 Introduce the construction company\u2019s management team and their experience in the industry.<\/li>\n<li><b>Financial Plan<\/b> \u2013 In this section, you will document the financial projections for your construction company. This should include your sales and revenue projections, cash flow statement, and your expense budget, detailing the <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/construction-startup-costs\">construction company startup costs<\/a>.<\/li>\n<ul>\n<li>What startup costs will you incur?<\/li>\n<li>How will your company make money?<\/li>\n<li>What are your projected sales and expenses for the next five years?<\/li>\n<li>Do you need to secure funding to launch your business?<\/li>\n<\/ul>\n<\/ol>\n<p><center><\/p>\n<div class=\"relatedpost\" style=\" width:85%; background-color: #e6e6ff ;  padding-bottom:0px\">\n<p id=\u201ccta\u201d><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\" fill=\"currentColor\" class=\"bi bi-exclamation-circle-fill\" viewBox=\"0 0 16 16\">\n  <path d=\"M16 8A8 8 0 1 1 0 8a8 8 0 0 1 16 0zM8 4a.905.905 0 0 0-.9.995l.35 3.507a.552.552 0 0 0 1.1 0l.35-3.507A.905.905 0 0 0 8 4zm.002 6a1 1 0 1 0 0 2 1 1 0 0 0 0-2z\"\/>\n<\/svg>   <b>Finish Your Business Plan Today!<\/b><\/p>\n<p>If you\u2019d like to quickly and easily complete your business plan, download <a href=\"https:\/\/businessplantemplate.growthink.com\/construction\/?utm_source=how-to-start-a-construction-business&#038;utm_medium=growthink&#038;utm_campaign=seo\" target=\"_blank\" re=\"nofollow\">Growthink\u2019s Ultimate Construction Business Plan Template<\/a> and complete your plan and financial model in hours.<\/div>\n<p><\/center><\/p>\n<h2 style=\"padding-top: 15px\" id=\"htsacc03\"><b>3. Choose the Legal Structure for Your Construction Company<\/b><\/h4>\n<p>Next, you need to choose a legal business structure for your company and register it and your business name with the Secretary of State in each state where you operate your business.<\/p>\n<p>Below are the five most common legal structures:<\/p>\n<h5>1) Sole proprietorship<\/h5>\n<p>A sole proprietorship is a business entity in which the owner of the company and the business are the same legal person. In this case, the construction business owner is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.<\/p>\n<h5>2) Partnerships<\/h5>\n<p>A partnership is a legal entity that is popular among small businesses. It is an agreement between two or more people who want to start a construction company together. The partners share in the profits and losses of the business.\u00a0<\/p>\n<p>The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.<\/p>\n<h5>3) Limited Liability Company (LLC)<\/h5>\n<p>A limited liability company, or LLC, is a type of business entity that provides limited liability to its small business owners. This means that the construction business owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a construction company include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.<\/p>\n<h5>4) C Corporation<\/h5>\n<p>A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a construction business is that it offers limited liability to its owners. This means that the business owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays business taxes on its profits, and the shareholders also pay taxes on their dividends.<\/p>\n<h5>5) S Corporation<\/h5>\n<p>An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.<\/p>\n<p>Once you register your construction business, your state will send you your official \u201cArticles of Incorporation.\u201d You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.<\/p>\n<p><center><\/p>\n<div class=\"relatedpost\" style=\" width:80%;  padding-bottom:0px\">\n<h5 style= padding-bottom:0px;><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\" fill=\"currentColor\" class=\"bi bi-briefcase-fill\" viewBox=\"0 0 16 16\">\n  <path d=\"M6.5 1A1.5 1.5 0 0 0 5 2.5V3H1.5A1.5 1.5 0 0 0 0 4.5v1.384l7.614 2.03a1.5 1.5 0 0 0 .772 0L16 5.884V4.5A1.5 1.5 0 0 0 14.5 3H11v-.5A1.5 1.5 0 0 0 9.5 1h-3zm0 1h3a.5.5 0 0 1 .5.5V3H6v-.5a.5.5 0 0 1 .5-.5z\"\/>\n  <path d=\"M0 12.5A1.5 1.5 0 0 0 1.5 14h13a1.5 1.5 0 0 0 1.5-1.5V6.85L8.129 8.947a.5.5 0 0 1-.258 0L0 6.85v5.65z\"\/>\n<\/svg>   <b>Incorporate Your Business at the Guaranteed Lowest Price<\/b><\/h5>\n<p>              We are proud to have partnered with <a href=\"https:\/\/www.businessrocket.com\/start\/register-an-LLC\/?ref=growthink\" rel=\"noopener\" target=\"_blank\">Business Rocket<\/a> to help you incorporate your business at the lowest price, guaranteed.<\/p>\n<p>Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality&#8230;but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.<\/p>\n<p><a href=\"https:\/\/www.businessrocket.com\/start\/register-an-LLC\/?ref=growthink\" rel=\"noopener\" target=\"_blank\">Incorporate with BusinessRocket at the guaranteed lowest price now.<\/a>\n <\/div>\n<p> <\/center><\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc04\"><b>4. Secure Startup Funding for Your Construction Company (If Needed)<\/b><\/h4>\n<p>In developing your construction business plan, you might have determined that you need to raise startup capital to launch your construction startup.\u00a0<\/p>\n<p>If so, the main sources of funding for a construction business to consider are personal savings, loans from friends and family, small business loans, and equity investors.<\/p>\n<ul>\n<li><b>Personal Savings<\/b>: The personal savings of the owners are often the largest source of startup funding for a new business. If you have saved enough money to cover all of your startup costs, then you may not need to seek outside funding.<\/li>\n<li><b>Loans from Friends and Family<\/b>: Another common source of funding for a new construction business is loans from friends and family. If you have people in your life who are willing to invest in your business, this can be a great option. However, it is important to remember that these loans should be treated like any other loan, with interest rates and repayment terms that are agreed upon in advance.<\/li>\n<li><b>Business Loan<\/b>: Small business and equipment loans are another option to consider when seeking funding for your new construction company. There are a variety of small business loans available, including Small Business Administration (SBA) loans, so you should shop around to find the one that best suits your needs. Be sure to read the terms and conditions carefully before signing any loan agreement.<\/li>\n<li><b>Equity Investors<\/b>: Another option for funding your new company is to seek equity investors. Equity investors are individuals or companies that invest money in your business in exchange for a stake in the company. This means that they will own a portion of your business and will be entitled to a portion of the profits.\u00a0<\/li>\n<\/ul>\n<p>If you decide to seek equity investors, it is important to have a solid business plan and a well-crafted pitch deck. You will need to convince potential investors that your company is a good investment<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc05\"><b>5. Register Your Construction Company with the IRS<\/b><\/h4>\n<p>Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).<\/p>\n<p>Most banks and other financial institutions will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.<\/p>\n<p>Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc06\"><b>6. Open a Business Bank Account<\/b><\/h4>\n<p>It is important to establish a bank account in your company&#8217;s name. This process is fairly simple and involves the following steps:<\/p>\n<ol>\n<li>Identify and contact the bank you want to use<\/li>\n<li>Gather and present the required documents (generally include your company\u2019s Articles of Incorporation, driver\u2019s license or passport, and proof of address)<\/li>\n<li>Complete the bank\u2019s application form and provide all relevant information<\/li>\n<\/ol>\n<p>Meet with a banker to discuss your business needs and establish a relationship with them.<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc07\"><b>7. Get a Business Credit Card<\/b><\/h4>\n<p>You should get a business credit card for your construction company to help you separate personal assets and business expenses.<\/p>\n<p>You can either apply for a business credit card through your bank or apply for one through a credit card company.<\/p>\n<p>When you\u2019re applying for a business credit card, you\u2019ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you\u2019re running. You\u2019ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.<\/p>\n<p>Once you\u2019ve been approved for a business credit card, you\u2019ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business&#8217;s future success.<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc08\"><b>8. Get the Required Business Licenses and Permits<\/b><\/h4>\n<p>Next, you need to obtain the required business licenses and permits for your business. The specific licenses and permits you need will vary depending on the state and local laws where your business is located.<\/p>\n<p>To find out which licenses and permits you need, you can contact your state\u2019s business licensing office or your local Chamber of Commerce.<\/p>\n<p>Some of the most common licenses and permits for construction companies include:<\/p>\n<ul>\n<li><b>General business license<\/b>: A business license is generally required in order to operate a business.<\/li>\n<li><b>Building permit<\/b>: A building permit is generally required in order to construct a new building or make additions or renovations to an existing building.<\/li>\n<li><b>Zoning permit<\/b>: A zoning permit may be required in order to operate your new business in a particular location.<\/li>\n<li><b>Construction license<\/b>: In some states, you may need to obtain a construction license in order to operate your business.<\/li>\n<li><b>Environmental permit<\/b>: If you\u2019re going to be doing any construction work that could potentially impact the environment, you may need to obtain an environmental permit.<\/li>\n<li><b>OSHA certification<\/b>: If you\u2019re going to be doing any work that could potentially expose your employees to safety hazards, you may need to obtain OSHA certification.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc09\"><b>9. Get the Right Insurance for Your Construction Startup<\/b><\/h4>\n<p>Construction is a risky business, and it is important to have the right insurance in place to protect your company from potential liabilities.\u00a0<\/p>\n<p>There are a variety of insurance policies available for small businesses, and the type of policy you need will depend on the size and scope of your company. Some of the most common types of insurance for construction companies include:<\/p>\n<ul>\n<li><b>General Liability Insurance<\/b>: General liability insurance protects your company from claims arising from injuries, property damage, and other damages that occur as a result of your business operations.<\/li>\n<li><b>Workers&#8217; Compensation Insurance<\/b>: Workers&#8217; compensation insurance protects your employees in the event that they are injured while working on a job site.<\/li>\n<li><b>State Disability Insurance<\/b>: State disability insurance provides benefits to employees who are unable to work due to a disability.<\/li>\n<li><b>Unemployment Insurance<\/b>: Unemployment insurance provides benefits to employees who lose their jobs due to no fault of their own.<\/li>\n<li><b>Business Owner&#8217;s Policy<\/b>: A business owner&#8217;s policy (BOP) is a type of insurance that combines general liability insurance and property insurance into one policy.<\/li>\n<li><b>Equipment Insurance<\/b>: If you own any equipment, it is important to have it insured in case of damage or theft.<\/li>\n<li><b>Vehicle Insurance<\/b>: If your company owns any vehicles, you will need to have them insured.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc10\"><b>10. Buy or Lease the Right Construction Equipment<\/b><\/h4>\n<p>In order to open a successful construction business, you will need to have the right equipment. You can either buy or lease the equipment you need.<\/p>\n<p>If you decide to buy your equipment, you will need to finance it. One option is to take out a loan from a bank or other financial institution. Another option is to use equipment financing, which is a type of financing specifically for equipment purchases.<\/p>\n<p>If you decide to lease your equipment, you will need to find a leasing company that specializes in construction equipment leases.\u00a0<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc11\"><b>11. Develop Your Construction Company Marketing Materials<\/b><\/h4>\n<p>Once you have all of the necessary licenses, permits, and insurance in place, you will need to develop your company\u2019s marketing materials.<\/p>\n<p>Your marketing materials should include a company logo, business cards, a website, and brochures or flyers. You will also need to develop a marketing strategy to promote your business.<\/p>\n<p>There are a variety of ways to market construction services. Some of the most common methods include online marketing, word-of-mouth marketing, and print advertising.<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc12\"><b>12. Purchase and Setup the Software Needed to Run Your Construction Company<\/b><\/h4>\n<p>To run a successful business, you\u2019ll need to purchase and set up the software for various tasks, such as accounting, point of sale (POS), and customer management.<\/p>\n<p>Some of the most popular software programs used by restaurants include:<\/p>\n<ul>\n<li><b>QuickBooks<\/b>: QuickBooks is a popular accounting software program that can help you track your restaurant\u2019s finances.<\/li>\n<li><b>Microsoft Office<\/b>: Microsoft Office includes programs like Word, Excel, and PowerPoint that can be used for various tasks, such as creating marketing materials and tracking sales data.<\/li>\n<li><b>POS Systems<\/b>: POS systems are used to process customer orders and payments. There are many different types of POS systems available, and the type you need will depend on the size and complexity of your restaurant.<\/li>\n<li><b>Customer Management Software<\/b>: Customer management software (CMS) is used to track customer information, such as contact information, order history, and preferences.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc13\"><b>13. Hire Employees for Your Construction Startup<\/b><\/h4>\n<p>Once you have all of the necessary licenses, permits, equipment, and software in place, you will need to start hiring employees. The type of employees you need will depend on the size and scope of your business. Some of the most common positions include:<\/p>\n<ul>\n<li><b>Project<\/b><b> Managers<\/b>: Project managers are responsible for overseeing the day-to-day operations of a construction project.<\/li>\n<li><b>Construction Workers<\/b>: Construction workers are responsible for performing the actual work of a construction project.<\/li>\n<li><b>Office Manager<\/b>: The office manager is responsible for managing the company\u2019s office and administrative staff.<\/li>\n<li><b>Accountant<\/b>: The accountant is responsible for handling the company\u2019s finances, including billing, invoicing, and payroll.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc14\"><b>14. Create a Marketing Plan<\/b><\/h4>\n<p>Your <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/construction-marketing-plan\">construction marketing plan<\/a> should include a variety of strategies for promoting your business.<\/p>\n<p>Some of the most common marketing strategies used by construction companies include online marketing, word-of-mouth marketing, and print advertising.<\/p>\n<p>When creating your marketing plan, you will need to consider your budget, target market, and the types of marketing methods that will be most effective for your business.<\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"htsacc15\"><b>15. Open Your Construction Business<\/b><\/h4>\n<p>You are now ready to open your business. By following the steps outlined in this guide, you can be sure that you are taking the necessary steps to starting a construction business.<\/p>\n<p>Below are answers to frequently asked questions that might further help you.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"bluepost\">\n<p id=\"greencta\"><strong>Finish Your Construction Business Plan in 1 Day!<\/strong><\/p>\n<p>Don\u2019t you wish there was a faster, easier way to finish your business plan?<\/p>\n<p>With Growthink\u2019s Ultimate Construction Business Plan Template you can finish your plan in just 8 hours or less!<\/p>\n<p><a href=\"https:\/\/businessplantemplate.growthink.com\/construction\/?utm_source=how-to-start-a-construction-business&#038;utm_medium=growthink&#038;utm_campaign=seo\" target=\"_blank\" re=\"nofollow\">Click here to finish your Construction business plan today.<\/a><\/div>\n<p><\/center><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"myid02\"><b>How to Start a New Construction Business FAQs<\/b><\/h2>\n<style>#sp-ea-21316 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-21316.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-21316.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #444;}#sp-ea-21316.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-21316.sp-easy-accordion>.sp-ea-single {background: #eee;}#sp-ea-21316.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1696325706\"><div id=\"sp-ea-21316\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213160\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213160\" aria-controls=\"collapse213160\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the Typical Startup Costs for a New Construction Business?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213160\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213160\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Initial, one-time costs:<\/span><\/p><ul><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Construction tools and equipment<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Website and promotional materials<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Office space and equipment<\/span><\/li><\/ul><p><span style=\"font-weight: 400\">Ongoing costs:<\/span><\/p><ul><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Insurance<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Materials (cement, lumber, steel, etc.)<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Professional fees (accountant, attorney, etc.)<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Rent and utilities<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Equipment maintenance<\/span><\/li><\/ul><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213161\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213161\" aria-controls=\"collapse213161\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How much do Construction Operators Make?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213161\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213161\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Depending on which segment the company specializes in, construction executive salaries average anywhere from $66,000 to $175,920 per year.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213162\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213162\" aria-controls=\"collapse213162\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How Big is the Construction Industry?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213162\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213162\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">According to First Research and IBISWorld, the industry has grown at a rate of approximately 3.4% over the past five years, to reach $1.5 trillion in revenue. Revenue is generated by the approximately 660,000 construction businesses in the US.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213163\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213163\" aria-controls=\"collapse213163\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the Key Segments of the Construction Industry?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213163\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213163\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The industry is responsible for a wide variety of activities, from dam and highway construction to roofing and tile work. The top revenue-generating segments include:<\/span><\/p><ul><li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Commercial Construction<\/strong> - <\/span><span style=\"font-weight: 400\">This segment generates the most revenue and includes construction work (including maintenance and repairs) on office, retail, hotel, agricultural, and entertainment buildings.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Electricians and Housing Developers<\/strong> - This segment ties for the second-largest segment and includes work on electrical wiring, plumbing, and HVAC systems in new and existing commercial and residential buildings.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Other segments<\/strong> generating at least $100 billion per year include Municipal Building Construction companies, Plumbers, Home Builders, and Road &amp; Highway Construction.<\/span><\/li><\/ul><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213164\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213164\" aria-controls=\"collapse213164\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What External Factors Affect the Construction Industry?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213164\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213164\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">A number of factors affect the performance of the industry. These drivers include:<\/span><\/p><ul><li style=\"font-weight: 400\"><b>Funding <\/b><span style=\"font-weight: 400\">\u2013 Federal, State, and Local governments fund a variety of construction projects, namely infrastructure projects, and municipal projects. As such, the industry benefits when more government funding is available.<\/span><\/li><li style=\"font-weight: 400\"><b>Input Prices <\/b><span style=\"font-weight: 400\">\u2013 When the price of inputs (such as concrete, steel, and lumber) rises, industry operators will generate lower profit margins. Conversely, low input prices can increase demand for construction, and allow for more profit.<\/span><\/li><li style=\"font-weight: 400\"><b>Corporate Profit and Per capita disposable income<\/b><span style=\"font-weight: 400\"> \u2013 The industry relies heavily on corporations\u2019 and individuals\u2019 ability to order construction projects. Corporate profit is one of the factors in determining business expansion, which requires new construction. Similarly, homeowners\u2019 access to disposable income spurs demand for new housing or home improvement projects.<\/span><\/li><li style=\"font-weight: 400\"><b>Technology <\/b><span style=\"font-weight: 400\">\u2013 Companies that adopt newer technology have a significant market advantage. Some examples of new technology used in the industry include geographical information systems (GIS), Building Information Modeling (BIM) and laser scanning, telematics, and drones.<\/span><\/li><\/ul><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213165\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213165\" aria-controls=\"collapse213165\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Who are the Key Competitors in the Construction Industry?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213165\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213165\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Major construction companies in the US include Fluor, Bechtel, and The Turner Corporation. Smaller local companies make up a large portion of the industry as well.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213166\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213166\" aria-controls=\"collapse213166\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the Key Customer Segments in the Construction Market?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213166\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213166\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The key customer segments in the Construction market are as diverse as the services provided by the industry.<\/span><\/p><p><span style=\"font-weight: 400\">These potential customers can be grouped by:<\/span><\/p><ul><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Residential Building Construction (which primarily serves individuals and investors),<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Nonresidential Building Construction (serving corporations, commercial establishments, sports clubs, etc.),<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">NonBuilding Construction (typically infrastructure, funded with public monies; industrial projects; excavation projects, etc.), and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Other Construction Companies (for services such as electrical work, flooring, window installation, etc.).<\/span><\/li><\/ul><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213167\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213167\" aria-controls=\"collapse213167\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the Key Costs for a Construction Startup?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213167\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213167\"> <div class=\"ea-body\"><ul><li style=\"font-weight: 400\"><b>Wages <\/b><span style=\"font-weight: 400\">\u2013 Wages are a significant expense for construction businesses, averaging approximately 27% of revenue.<\/span><\/li><li style=\"font-weight: 400\"><b>Purchases <\/b><span style=\"font-weight: 400\">\u2013 Purchases, which include tools, personal protective equipment, and input materials, are the largest expense for most construction companies.<\/span><\/li><li style=\"font-weight: 400\"><b>Other <\/b><span style=\"font-weight: 400\">\u2013 Other costs include rent, utilities, software, subcontractors, insurance, and depreciation.<\/span><\/li><\/ul><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213168\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213168\" aria-controls=\"collapse213168\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the Keys to Launching a New Construction Business?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213168\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213168\"> <div class=\"ea-body\"><ol><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Define your vision \u2013 Decide which construction segment you will specialize in.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Have a business plan \u2013 A<\/span>\u00a0<a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/construction-business-plan\"><span style=\"font-weight: 400\">construction company business plan<\/span><\/a><span style=\"font-weight: 400\"> will help you set goals and outline how to achieve them.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Get licensed, bonded, and insured \u2013 Before you can bid on your first job, you need to investigate and meet the requirements for local and state licenses and do what you need to do to secure them, get your worker\u2019s compensation and liability insurance, and find out how much you need to be bonded for.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Build your team \u2013 Hire and train a team of employees that have the right skills. However, since construction is seasonal and cyclical, you must also be willing to downsize if\/when the workload decreases.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Take stock of your tools and equipment, and purchase what you need.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Properly price jobs \u2013 Be careful to factor in overhead, and actual production costs (materials, labor, inspections, etc.).<\/span><\/li><\/ol><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-213169\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse213169\" aria-controls=\"collapse213169\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Where Can I Download a Construction Business Plan PDF?<\/a><\/h3><div class=\"sp-collapse spcollapse spcollapse\" id=\"collapse213169\" data-parent=\"#sp-ea-21316\" role=\"region\" aria-labelledby=\"ea-header-213169\"> <div class=\"ea-body\"><p>You can download our <a href=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Free-Version-of-Growthinks-Construction-Business-Plan-Template.pdf\" target=\"_blank\">construction business plan PDF<\/a> template here. This is a business plan template you can use in PDF format.<\/p><\/div><\/div><\/div><script type=\"application\/ld+json\">{ \"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"@id\": \"sp-ea-schema-21316-69b02a8d4fed5\", \"mainEntity\": [{ \"@type\": \"Question\", \"name\": \"What are the Typical Startup Costs for a New Construction Business?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Initial, one-time costs:<ul><li>Construction tools and equipment<\/li><li>Website and promotional materials<\/li><li>Office space and equipment<\/li><\/ul>Ongoing costs:<ul><li>Insurance<\/li><li>Materials (cement, lumber, steel, etc.)<\/li><li>Professional fees (accountant, attorney, etc.)<\/li><li>Rent and utilities<\/li><li>Equipment maintenance<\/li><\/ul>\" } },{ \"@type\": \"Question\", \"name\": \"How much do Construction Operators Make?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Depending on which segment the company specializes in, construction executive salaries average anywhere from $66,000 to $175,920 per year.\" } },{ \"@type\": \"Question\", \"name\": \"How Big is the Construction Industry?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"According to First Research and IBISWorld, the industry has grown at a rate of approximately 3.4% over the past five years, to reach $1.5 trillion in revenue. Revenue is generated by the approximately 660,000 construction businesses in the US.\" } },{ \"@type\": \"Question\", \"name\": \"What are the Key Segments of the Construction Industry?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"The industry is responsible for a wide variety of activities, from dam and highway construction to roofing and tile work. The top revenue-generating segments include:<ul><li><strong>Commercial Construction<\/strong>- This segment generates the most revenue and includes construction work (including maintenance and repairs) on office, retail, hotel, agricultural, and entertainment buildings.<\/li><li><strong>Electricians and Housing Developers<\/strong>- This segment ties for the second-largest segment and includes work on electrical wiring, plumbing, and HVAC systems in new and existing commercial and residential buildings.<\/li><li><strong>Other segments<\/strong>generating at least $100 billion per year include Municipal Building Construction companies, Plumbers, Home Builders, and Road &amp; Highway Construction.<\/li><\/ul>\" } },{ \"@type\": \"Question\", \"name\": \"What External Factors Affect the Construction Industry?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"A number of factors affect the performance of the industry. These drivers include:<ul><li><b>Funding<\/b>\u2013 Federal, State, and Local governments fund a variety of construction projects, namely infrastructure projects, and municipal projects. As such, the industry benefits when more government funding is available.<\/li><li><b>Input Prices<\/b>\u2013 When the price of inputs (such as concrete, steel, and lumber) rises, industry operators will generate lower profit margins. Conversely, low input prices can increase demand for construction, and allow for more profit.<\/li><li><b>Corporate Profit and Per capita disposable income<\/b>\u2013 The industry relies heavily on corporations\u2019 and individuals\u2019 ability to order construction projects. Corporate profit is one of the factors in determining business expansion, which requires new construction. Similarly, homeowners\u2019 access to disposable income spurs demand for new housing or home improvement projects.<\/li><li><b>Technology<\/b>\u2013 Companies that adopt newer technology have a significant market advantage. Some examples of new technology used in the industry include geographical information systems (GIS), Building Information Modeling (BIM) and laser scanning, telematics, and drones.<\/li><\/ul>\" } },{ \"@type\": \"Question\", \"name\": \"Who are the Key Competitors in the Construction Industry?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Major construction companies in the US include Fluor, Bechtel, and The Turner Corporation. Smaller local companies make up a large portion of the industry as well.\" } },{ \"@type\": \"Question\", \"name\": \"What are the Key Customer Segments in the Construction Market?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"The key customer segments in the Construction market are as diverse as the services provided by the industry. These potential customers can be grouped by:<ul><li>Residential Building Construction (which primarily serves individuals and investors),<\/li><li>Nonresidential Building Construction (serving corporations, commercial establishments, sports clubs, etc.),<\/li><li>NonBuilding Construction (typically infrastructure, funded with public monies; industrial projects; excavation projects, etc.), and<\/li><li>Other Construction Companies (for services such as electrical work, flooring, window installation, etc.).<\/li><\/ul>\" } },{ \"@type\": \"Question\", \"name\": \"What are the Key Costs for a Construction Startup?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"<ul><li><b>Wages<\/b>\u2013 Wages are a significant expense for construction businesses, averaging approximately 27% of revenue.<\/li><li><b>Purchases<\/b>\u2013 Purchases, which include tools, personal protective equipment, and input materials, are the largest expense for most construction companies.<\/li><li><b>Other<\/b>\u2013 Other costs include rent, utilities, software, subcontractors, insurance, and depreciation.<\/li><\/ul>\" } },{ \"@type\": \"Question\", \"name\": \"What are the Keys to Launching a New Construction Business?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"<ol><li>Define your vision \u2013 Decide which construction segment you will specialize in.<\/li><li>Have a business plan \u2013 A\u00a0construction company business plan will help you set goals and outline how to achieve them.<\/li><li>Get licensed, bonded, and insured \u2013 Before you can bid on your first job, you need to investigate and meet the requirements for local and state licenses and do what you need to do to secure them, get your worker\u2019s compensation and liability insurance, and find out how much you need to be bonded for.<\/li><li>Build your team \u2013 Hire and train a team of employees that have the right skills. However, since construction is seasonal and cyclical, you must also be willing to downsize if\/when the workload decreases.<\/li><li>Take stock of your tools and equipment, and purchase what you need.<\/li><li>Properly price jobs \u2013 Be careful to factor in overhead, and actual production costs (materials, labor, inspections, etc.).<\/li><\/ol>\" } },{ \"@type\": \"Question\", \"name\": \"Where Can I Download a Construction Business Plan PDF?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"You can download our construction business plan PDF template here. This is a business plan template you can use in PDF format.\" } }] }<\/script><\/div><\/div>\n<p>&nbsp;<\/p>\n<h2 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"myid03\"><b>Helpful Videos &amp; Slideshows<\/b><\/h2>\n<p><b>Paying Yourself \u2013 Owning a Construction Company<\/b><\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/kvgy0HzDkRY\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<p><b>Seven Practices to Construction Business Success<\/b><\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/bqzAtAyYxsc\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<p><b>Construction Management and Estimating<\/b><\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/uccEDxs3kfw\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<p><b>How To Build A Construction Business<\/b><\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/xY92j_ZtC9s\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<\/div>\n<p><\/br><\/p>\n<h2 style=\"padding-top: 130px;  margin-top: -130px;\" id=\"myid04\"><b>Additional Construction Industry Publications &amp; Resources<\/b><\/h2>\n<p>For additional information on the construction market, consider these resources:<\/p>\n<ul>\n<li>The Associated General Contractors of America:<a href=\"https:\/\/www.agc.org\/\"> www.agc.org<\/a><\/li>\n<li>Engineering News-Record:<a href=\"https:\/\/www.enr.com\/\"> enr.construction.com<\/a><\/li>\n<li>Construction Labor Research Council (CLRC):<a href=\"https:\/\/www.clrcconsulting.org\/\"> www.clrcconsulting.org<\/a><\/li>\n<li>National Association of Home Builders:<a href=\"https:\/\/www.nahb.org\/\"> www.nahb.org<\/a><\/li>\n<li>US Department of Housing and Urban Development:<a href=\"https:\/\/www.hud.gov\/\"> www.hud.gov<\/a><\/li>\n<li>National Institute of Building Sciences:<a href=\"https:\/\/nibs.org\/\"> www.nibs.org<\/a><\/li>\n<li>Federal Housing Finance Agency:<a href=\"https:\/\/www.fhfa.gov\/\"> www.fhfa.gov<\/a><\/li>\n<li>National Association of the Remodeling Industry:<a href=\"https:\/\/www.nari.org\/\"> www.nari.org<\/a><\/li>\n<li>Construction Mavericks:<a href=\"https:\/\/constructionmavericks.com\/\"> www.constructionmavericks.com<\/a><\/li>\n<\/ul>\n<p>Be sure to also check out local industry publications and resources available from your state and local government specifically for construction businesses.<br \/>\n&nbsp;<\/p>\n<h2><strong>Construction Business Plan Example PDF<\/strong><\/h2>\n<p>Download our <a href=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Free-Version-of-Growthinks-Construction-Business-Plan-Template.pdf\" target=\"_blank\" rel=\"noopener\">Construction Business Plan PDF<\/a> here. This is a free construction business plan example to help you get started on your own construction plan.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"bluepost\">\n<p id=\"greencta\"><strong>Finish Your Construction Business Plan in 1 Day!<\/strong><\/p>\n<p>Don\u2019t you wish there was a faster, easier way to finish your business plan?<\/p>\n<p>With Growthink\u2019s Ultimate Construction Business Plan Template you can finish your plan in just 8 hours or less!<\/p>\n<p><a href=\"https:\/\/businessplantemplate.growthink.com\/construction\/?utm_source=how-to-start-a-construction-business&#038;utm_medium=growthink&#038;utm_campaign=seo\" target=\"_blank\" re=\"nofollow\">Click here to finish your Construction business plan today.<\/a><\/div>\n<p><\/center><\/p>\n<p>&nbsp;<\/p>\n<h2><b>OR, Let Us Develop Your Plan For You<\/b><\/h2>\n<p>Since 1999, Growthink\u2019s<a href=\"https:\/\/www.growthink.com\/business-plan\"> business plan consulting<\/a> team has developed business plans for thousands of companies that have gone on to achieve tremendous success.<br \/>\n&nbsp;<\/p>\n<p><a href=\"https:\/\/www.growthink.com\/business-plan\">Click here<\/a> to see how Growthink\u2019s<a href=\"https:\/\/www.growthink.com\/business-plan\"> professional business plan writers<\/a> can create your business plan for you.<\/p>\n<h2 style=\"padding-top: 20px;\">Other Helpful Business Plan Articles &#038; Templates<\/h2>\n<div class=\"free-business-plan-articles-flex\">\n<div class=\"column\"><a href=\"\/products\/business-plan-template\" title=\"Use This Simple Business Plan Template\"><img decoding=\"async\" class=\"aligncenter\" style=\"height: 135px;\" src=\"https:\/\/www.growthink.com\/wp-content\/uploads\/business-plan-template-growthink.png\" target=\"_blank\" alt=\"Business Plan Template For Small Businesses &#038; Entrepreneurs\" width=\"300\"\/>Business Plan Template For Small Businesses &#038; Entrepreneurs<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/construction-business-plan\" title=\"Construction Business Plan Template\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/construction-business-plan-template-thumbnail.jpg\" target=\"_blank\" alt=\"Construction Business Plan\" width=\"300\"\/>Construction Business Plan<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/electrical-contractor-business-plan\" title=\"Electrical Contracting Business Plan Template\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/electrical-contracting-business-plan-thumbnail.png\" target=\"_blank\" alt=\"Electrical Contracting Business Plan\" width=\"300\"\/>Electrical Contracting Business Plan Template<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/architecture-business-plan\" title=\"Architecture Business Plan Template\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/architecture-business-plan-thumbnail.png\" target=\"_blank\" alt=\"Architecture Business Plan Template\" width=\"300\"\/>Architecture Business Plan<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/interior-design-business-plan\" title=\"Interior Design Business Plan\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/Interior-Design-Business-Plan-Template-Thumbnail.png\" target=\"_blank\" alt=\"Interior Design Business Plan Template\" width=\"300\"\/>Interior Design Business Plan<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/service-business-plan\" title=\"Service Business Plan\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/Service_Business_Plan_Template_Thumbnail.png\" target=\"_blank\" alt=\"Service Business Plan Template\" width=\"300\"\/>Service Business Plan<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ON THIS PAGE How To Start Your Own Construction Business How To Start a Construction Company FAQs Helpful Videos &amp; Slideshows Additional Construction Industry Publications &amp; Resources &nbsp; How to Start Your Own Construction Business If you\u2019re looking to start a Construction business, you\u2019ve come to the right place. Since we\u2019re going to show you [&hellip;]<\/p>\n","protected":false},"author":29265,"featured_media":21318,"parent":8361,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"class_list":["post-8536","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Start a Construction Company Step-By-Step [2026]<\/title>\n<meta name=\"description\" content=\"Learn how to start a construction company including resources business planning, competitors, key costs, helpful videos, and more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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