Rice Business Report September 2019 September 2019 Rice Business Report | Page 37

Rice Business Report September 2019
5 Essential Elements to Start a Construction Business
By Manoj Rana
Starting a business is not an easy task especially if it is a construction business. A successful entrepre-
neur, who is leading in the industry can tell you what it takes to lead in the corporate world. Further-
more, most leaders say, whether your destination is any place on this planet, or a position in the corpo-
rate world, to reach somewhere in the right time you must follow the roadmap
Few elements to consider before starting a construction business
1. Begin with a business plan
A roadmap is required to reach somewhere. Similarly, to start a venture, a business plan is required. A
business plan explains where you are at present, where you want to take your construction company
and what strategies you are going to use. Further, it helps in securing funding. In short, a business plan
consist, a brief business description, financial factors, and marketing strategies.
2. Find financing
Nowadays, a number of sources are available to get funding, start looking with your own savings. How-
ever, if your savings are not enough, no worries! You can approach various banks, financial institutions,
and investors. Another option is deal making, if you don't have enough funds, you can go for partnership
deed. According to which assets, liabilities, and other expenses will get distributed between partners as
per deed. Also, the burden of funding will get divided.
3. Obtain licenses
To start a construction business, every contractor needs a business license. Therefore, investigate with
the courthouse located in your country to know what permits and licensed are mandatory for the con-
struction business. Further, it is mandatory top secure particular state licenses. Moreover, you can
search on the internet for a suitable spot from where you can get a state license and permit require-
ments.
4) Put the right insurance in place
An understanding of insurance is very essential in such business. In most cases, various states and con-
struction contracts required valid workers compensation insurance which is carried out by contractors.
Furthermore, other mandatory coverages to consider are a general liability, professional liability, build-
er's risk, etc. Approaching an insurance provider with excellent experience can make a contractor under-
stand how to shelter a company from the beginning.
Continued on page 38…….
37