Howard Wheeler, II started Chris-Tel Construction in 1989, at only 21 years old. While not completely unheard of, starting a business at 21 years old is definitely rare. Howard however had the determination and knack for doing the right thing coupled with the construction knowledge to get his business off the ground. For Chris-Tel’s complete history, click here.
When it comes to starting any business, there are many moving pieces that must be factored into the equation. The construction industry is no different. If anything, because the industry is so unique it requires even more attention. There is a lot of preliminary research that should be conducted ahead of time regarding the mandatory safety laws and standards that exist within the industry. Skipping out on any of these factors can lead to serious financial consequences and will substantially slow down your intended timeline. The following are key factors that should be considered before deciding to start your own construction business:
Licenses and Permits
Obtaining the proper licenses and permits is essential prior to starting your construction business. Visiting a local council in your area as well as researching online the necessary requirements and documentation should be a top priority. Permitting and license requirements can vary from location to location, so be sure that the information you are referencing applies to your current location and/or the location you intend to do business.
Office Location
Having a central location as your company’s base is extremely helpful. When considering where to look for an office space you may want to consider an area that is up-and-coming and one that is central to the clientele you will be serving. Make the space inviting as it will serve as a space for clients to visit, employees to conduct meetings and staff to perform work. Having a physical space as your company’s headquarters makes your business look professional.
Adhere to all Health and Safety Requirements
Due to the nature of the work performed in the construction industry, there are numerous health and safety requirements. The consequences of not following any one of these regulations could result in your company being sued or shut down. You will need to research the health and safety laws so that you can apply them to your business practices. Hiring a Human Resources Representative is a good idea to monitor and implement the necessary construction safety practices.
Purchase Equipment
Before being able to complete your client’s requests, you will need to purchase some equipment to do the job. Whether you have the financial means necessary to purchase the equipment required or must simply lease the equipment for a short-term, (refer to our blog Deciding to Lease of Buy Construction Equipment), you will want to make sure that you get top of the line equipment.
Insurance Coverage
Accidents are bound to happen in the construction industry. So, finding the right insurance with the right coverage is extremely important. In addition to insuring your business you should also invest in the proper education and training of your employees. This will help to mitigate risk and reduce any potential injuries.
Starting your own construction company requires a lot of coordination. Although not comprehensive, this list should give you a pretty good idea of the requirements necessary.