Budgeting, fundraising and company registration are steps that every startup has to take in order to become a real company. However, depending on the industry, there are some other tasks that might need to be fulfilled in order to join the game. One such example is the construction industry, which is peculiar in many ways and requires a tad different approach. With that in mind, here are the top five startup considerations to make, which are specific for the startup industry.
1. Licenses and certificates
Before you even start looking to register your business or commence with the fundraising, you need to consider which licenses and certificates will your business have to acquire in order to start working. This depends on two things. First, it depends on the type of the construction business that you intend to do. Being a builder-owner is not the same thing as doing small renovation contracts on residential properties. Second, it depends on local laws and regulations, meaning that the geographical factor plays a massive role in this task as well.
2. Considering the insurance
Now, the issue of the insurance is the one that every single entrepreneur has to deal with, nonetheless, nowhere is this as nuanced as in the construction industry. Here, you need a contractor liability insurance coverage, a builder’s risk insurance, a professional liability insurance, as well as the employee and equipment insurance. More often than not, you also need a performance bond and a bid bond. All in all, failing to protect your company from any of these aspects can spell a disaster for your business down the line.
3. Specialized equipment
As for the equipment, the issue of small tools like hammers, chainsaws, and ladders is fairly easy to resolve, on the other hand, depending on the type of your construction company, you might also need some highly specialized equipment. Scaffolding or cranes are just some examples that virtually all contractors have to deal with in one way or another.
Aside from this, your company’s efficiency might depend on partial or full automation, which is something that you can achieve through a piece of equipment such as length stop system. As for the issue of buying vs. hiring, any piece of equipment that you’ll use more than 60 percent of the time is worth acquiring.
4. Labeled vehicles
Branding your vehicles and equipment is not just a smart idea but also fairly required by a lot of states. This, however, creates one additional problem that you have to resolve. Namely, each vehicle on the road with your name on it represents your company as a whole, which is why you need to invest some extra effort into the vetting process of your drivers. It is also why you need to invest more in fleet management.
Furthermore, this is not where the process of labeling ends, seeing as how the right label might encourage your employees to take better care of corporate vehicles. Reminding your drivers to check engine oil or drive defensively can make a difference.
5. Think about going green
Going green with a construction business is much more difficult than doing so with a regular startup, seeing as how it requires you to change virtually everything about your business. This starts with the people you employ, the materials you use and the equipment you purchase/hire. Still, it might become a reason why some clients will pick you over your competitors.
Once you have all of this figured out, you can start developing the internal structure of your company as well as choosing which business practices you intend to use. Keep in mind, however, that resolving these issues comes after laying down the foundation of your startup both as a company and as a construction business.
Carolin Petterson is a Business Lady/Content Marketer and contributor for a number of high-class business and marketing websites. You can read more about her at: