If you’re considering starting a construction company, you’ve come to the right spot! 7 years ago my husband and I started our sheet metal company and we have learned A LOT over this time.
Things You Need To Consider
Running a construction company is not easy. It’s a lot of work, a ton of failures, and 24/7 stress.
There is a very big misconception that owners sit around and get rich off their workers backs. While that may be true with bigger companies (not saying it is) it is absolutely untrue with small companies. You will have to work 24/7 until you get bigger. You will be the worker, salesman, marketer, and admin.
If you’re considering owning a company so you can choose your own hours and work less, that will not happen. I have seen many companies fail because the owner refuses to work. You will work longer hours than you would being an employee.
If you don’t have experience working in construction I don’t recommend starting a construction company. Not only do you need to be able to check your workers work, you need to be able to train them. Also, there may be times you don’t have workers and you need to jump in and do the work.
Starting a Construction Business
There’s a few things you will need to do to start your company.
First things first, you need to register your company name with your province.. You will also need to determine if your company is going to be incorporated or not. I highly recommend incorporating. This helps protect your personal assets. You will need a lawyer to help do this.
The next step is to figure out how you’re going to handle your finances. If you want to do your own bookkeeping (that’s what I do) I recommend using Quickbooks. I also recommend doing your own bookkeeping if you have experience with bookkeeping and accounting software. If you don’t, hire a bookkeeper. You will also need an accountant. A good accountant will meet up with you quarterly and have contacts they can recommend for your companies growth.
Get insurance! You will need liability insurance to protect your workers and your company. If you have vehicles you will need commercial vehicle insurance, and if you have a property you will need property insurance. You will also need to contact WCB to set that up.
Last but not least, try and secure some funding. You can go anywhere between 30-90 days before receiving pay and unless you have a giant savings account this can cause a lot of financial issues.
If you have tips on how to start a construction company, I’d love to hear about it in the comment section.