How to Start a Construction Company
This article is part of our Construction Business Startup Guide—a curated list of articles to help you plan, start, and grow your construction business!
Whether you want to be your area’s next big general contractor, or you believe you can build a successful small construction company in a specific niche, getting into the construction business is a process.
But fear not. Yes, there are licenses to apply for, equipment to buy, and maybe even training you’ll need to complete. But once you have a solid construction company business plan and know the direction you want to take, you can start your own construction business.
As Forbes, Sageworks, and the U.S. Small Business Administration (SBA) have pointed out, construction is a high-growth industry right now and is expected to remain strong for years to come. In fact, many fast-growing small businesses are connected to construction, such as finishing contractors (e.g., drywall, flooring, and painting), utility systems construction (e.g., water, sewer, oil, gas, and electricity), and structural construction (e.g., concrete, roofing, and siding).
It makes sense. Whether for a residence, commercial use, industry, or public works, someone has to build the buildings, roads, and systems we all use in our daily lives. In developed countries such as the U.S., Canada, and the U.K., the construction industry usually generates six to nine percent of gross domestic product (GDP). According to the U.S. Census Bureau, in 2014, the construction industry as a whole generated $960 billion in annual revenue, and according to the U.S. Bureau of Labor Statistics, employed an estimated 5.8 million in 2013—and the average firm had fewer than 10 employees.
Construction companies have their ups and downs (for example, the economic crisis of 2008 hit construction firms hard), but it’s an industry that will always have demand—and where there’s demand, there’s opportunity.
This article is part of our Construction Business Startup Guide—a curated list of articles to help you plan, start, and grow your construction business!
Whether you want to be your area’s next big general contractor, or you believe you can build a successful small construction company in a specific niche, getting into the construction business is a process.
But fear not. Yes, there are licenses to apply for, equipment to buy, and maybe even training you’ll need to complete. But once you have a solid construction company business plan and know the direction you want to take, you can start your own construction business.
As Forbes, Sageworks, and the U.S. Small Business Administration (SBA) have pointed out, construction is a high-growth industry right now and is expected to remain strong for years to come. In fact, many fast-growing small businesses are connected to construction, such as finishing contractors (e.g., drywall, flooring, and painting), utility systems construction (e.g., water, sewer, oil, gas, and electricity), and structural construction (e.g., concrete, roofing, and siding).
It makes sense. Whether for a residence, commercial use, industry, or public works, someone has to build the buildings, roads, and systems we all use in our daily lives. In developed countries such as the U.S., Canada, and the U.K., the construction industry usually generates six to nine percent of gross domestic product (GDP). According to the U.S. Census Bureau, in 2014, the construction industry as a whole generated $960 billion in annual revenue, and according to the U.S. Bureau of Labor Statistics, employed an estimated 5.8 million in 2013—and the average firm had fewer than 10 employees.
Construction companies have their ups and downs (for example, the economic crisis of 2008 hit construction firms hard), but it’s an industry that will always have demand—and where there’s demand, there’s opportunity.
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