When you start researching the various things you need to start a contracting business, you might be surprised by the simplicity. In fact, you don’t need a degree in business or years of experience handling money to get started. But there are a few things that you should make sure you’ve done before you open. Keep these five things in mind.
Find Your Target Market
Once you start your business, you’ll be eager to build a steady stream of new customers. But before you can do that, you need to figure out who your target market is and how you can find them. You can search online to determine which people are most likely to need your services. Then, you can do more research to learn how they find businesses like yours when they need one. This step is not as simple as it looks. You might need a month or two to get answers to these questions. The good news is, you’ll have a much better chance of securing clients once you know where they are.
Figure Out Your Funding Options
People who start a small business often rely on a variety of types of funding, including:
- Personal savings
- Gifts or donations from family and friends
- Business loans
The amount of money you need depends a lot on the type of services you’re going to provide. For example, if you’re planning to focus on home repairs, you might not need as much as you would if you want to become a builder of new construction. Research your options and how to apply for different kinds of funding. That way, you’ll be prepared once your business is ready to go.
Make a Plan for Advertising
Construction professionals often rely on word of mouth to get new clients, but you may not want to make this your only option. You don’t need to have a hugely expensive or complicated marketing strategy, but you should probably have something. Think about how you would like people to find out about your business, whether that’s an ad in the local newspaper, online advertisements, or even your business’s name on your vehicle. Get a sense for what you can expect to pay for advertising so that you can budget for it once you have some funds to work with.
Research Rules for Starting a Business
Every state has specific rules that you have to follow when you want to start a business. Your city may also have guidelines that you need to obey as well. In order to get a license, you usually need to pick a business name that is unique and pay a fee in order to get your license. As a general rule, you should plan to maintain a business license, even if the business name is your own name and you’re planning to operate as a sole proprietor. If you decide to create an LLC or a corporation, you’ll need to follow those rules as well.
Prepare for the Contractor Licensing Exam
If you haven’t taken the contractor licensing exam yet, you’ll need to do that before you can open your contracting business. Keeping a current license shows your clients that you are committed to performing professional work that will provide a good investment for them. One of the best ways to ensure that you can pass the contractor licensing exam is to complete a course of preparation in advance. Exam preparation helps you understand what you can expect on the test and confirm that you have the right knowledge to get the desired result.
Starting your own contracting business might be a dream that you’ve had for years. If you do these things beforehand, you’ll have a good sense of where to go next. To get started, visit CSLS today!