Whether you’re new to the world of construction or are a seasoned veteran, figuring out how to start a new construction company in California can be a significant challenge. Even while demand for new construction projects is high, starting a new company is always risky and requires business prowess and a lot of knowledge about local laws and the industry as a whole.
Nothing worth doing is ever easy, and starting a new construction company can be incredibly rewarding if you can pull it off. All it takes is proper planning, hard work, and a bit of luck, so if you’re thinking about starting a new business, here is everything you need to know about how to start a new construction company in California.
Research Local Markets and Industry Trends
Every successful business starts with a ton of market research, and construction companies are no different. From identifying emerging market trends and target markets to gauging where there is sufficient demand for new projects, all of this is incredibly important to ensure that you don’t set your business up to fail before it has a chance to take off.
There is plenty of reliable information online to help aid you in your research, but the US Bureau of Labor Statistics and the US Small Business Administration are both great places to start.
Write a Detailed Business Plan
The next step to starting a successful construction business is to write a detailed business plan that sets your business on the right track.
Writing business plans can be difficult for anyone who hasn’t done it before, but there are plenty of construction company business plan templates available online that can help you. In general, the most important thing to remember is that every good business plan starts with an executive summary and company overview, followed by sections about market analysis, business structure, products and services, marketing and sales, and financial plans and projections, as well as an appendix.
Register Your New Construction Business
Now that you have the preliminary research and business planning out of the way, you’ll need to register your new company with the proper agencies.
In California, you’ll need to register with both the IRS and the California Secretary of State before you can legally operate your business. This generally involves deciding which type of business entity you would like to register as, as well as applying for an employer identification number (EIN) for tax purposes.
Obtain all the Necessary Licenses, Insurance, Permits, and Certifications
Simply registering your new company with the Californian Secretary of State and the IRS isn’t enough to start operating your business legally. You also need to obtain all the necessary licenses, permits, and certifications needed to operate in California. This generally includes obtaining a general contractor’s license as well as a specialty contractor’s license that allows your company to work with HVAC, electrical systems, carpentry, painting, and roofing.
Obtaining insurance is another huge step that you’ll need to take as this isn’t just a requirement by law but will also protect you, your workers, and the company as a whole in case any unforeseen accidents happen on the job site.
Secure Sufficient Funding
One of the most significant barriers to entry into the construction industry is securing funding. Every company needs funding to get off the ground, and if you can’t secure that initial funding, your new company may be doomed from the start.
Funding can come from a wide variety of different sources, including money that you’ve saved, funding from outside investors, and small business, working capital, or equipment loans.
Build Your Team
You can’t operate a construction company by yourself, so once you secure funding, the next step is to build a quality team around you. No man is an island, and the people you choose to hire will have a huge impact on the success of your new business. This means that regardless of whether you decide to hire someone in person or would like to outsource certain aspects of the business to a virtual construction assistant, it’s essential that you hire workers who are highly skilled and competent and share the values and goals you have for your business.
Establish a Marketing Strategy and Secure Your First Project
The last thing you need to do to start a new construction business in California is secure your first project, however, this is often easier said than done.
This means that you’ll most likely need to establish a marketing strategy and brand before you land your first project. From creating and maintaining a professional-looking website to managing social media profiles, writing email newsletters, and investing in online advertising and SEO, all of these can go a long way to building a strong brand that continues to attract new clients long into the future.
Contact Virtual Construction Assistants Today
Are you planning to start a new construction company in California? There’s no better way to help your company get off on the right foot than by hiring a construction assistant from Virtual Construction Assistants.
Our team here at Virtual Construction Assistants are experts in the construction industry and can help you find the perfect construction assistant to help get your business off the ground. From taking care of admin work and scheduling to performing essential marketing tasks that help establish your business, our pool of experienced professionals is well-equipped to provide the services you need to make your new business a success.
Starting a new construction company can be a daunting task, but with a construction assistant from Virtual Construction Assistants, it doesn’t have to be. Don’t start your new business alone. Contact Virtual Construction Assistants and get the professional help you need to make the dream you have for your new company a reality.