How to start Construction Contractor business?

How to start a construction contractor business

Are you interested in starting your own Construction Contractor Business?

Starting a construction contractor business can be a rewarding and challenging career move. The construction industry offers many opportunities for entrepreneurs, but it is also a highly competitive field. To succeed as a construction contractor, you will need to have a strong business plan, access to capital, and the right team of employees. In this guide, we will cover the basics of how to start a construction contractor business. Before you start your construction contractor business, you need to obtain the proper licenses and permits from your state and local government. You will also need to purchase insurance for your business. Once you have obtained the necessary licenses and permits, you can begin marketing your business to potential clients. To be successful in the construction industry, you need to have a strong understanding of the bidding process. You will also need to be able to manage projects from start to finish. In addition, it is important to have good relationships with suppliers and subcontractors. If you are interested in starting a construction contractor business, there are a few things you should keep in mind. First, you need to make sure you have a solid business plan. Second, you need to have access to capital. Third, you need to have the right team of employees.
Business Plan
If you're thinking about starting a construction contractor business, the first step is to create a business plan. This document will outline your business goals, strategies, and how you plan on achieving them. To get started, you'll need to research the industry and understand the different aspects of running a construction contractor business. This includes understanding the construction process, project management, safety, and more. Once you have a good understanding of the industry, you can start putting together your business plan. Your business plan should include your company's mission statement, an overview of your target market, your marketing strategy, your financial projections, and your management team. This document will serve as a roadmap for your business and help you attract investors or partners. If you're not sure where to start, there are plenty of resources available to help you create a business plan. You can find templates and samples online or work with a professional business plan writer.
Target Market
When you’re starting a construction contractor business, it’s important to identify your target market. Who will you be selling your services to? There are a few different types of potential customers for construction contractors:
-Homeowners: Homeowners may need your services for a variety of reasons, from renovating their home to building an addition.
-Businesses: Commercial businesses may need your services for new construction, renovations, or expansions.
-Developers: Developers are often in need of construction contractors to build new developments, such as shopping centers, office buildings, or residential complexes. Once you’ve identified your potential customers, you can start to marketing your business to them.
Business Model
There are a few different ways to structure a construction contracting business. The most common model is to work as a general contractor, overseeing the entire construction project from start to finish. Other businesses may specialize in a particular trade, such as electrical work or plumbing, and sub-contract out the rest of the work. Regardless of which model you choose, there are a few key things you need to do to get your business up and running. First, you will need to obtain the proper licenses and insurance. Next, you will need to develop a good working relationship with suppliers and sub-contractors. Finally, you will need to create a marketing plan to attract customers. With a little hard work and dedication, you can start a successful construction contracting business. Just be sure to do your homework and plan carefully before getting started..
Competitive Landscape
The construction contractor business is a highly competitive one. There are many large, well-established companies that have been in business for many years. They have deep pockets and can afford to undercut their prices. They also have the advantage of name recognition and customer loyalty. In order to compete with these large companies, you need to differentiate your business. You need to offer something that they don’t – whether it’s a unique service, a different pricing structure, or a more personal touch. You also need to make sure that your marketing and sales efforts are top-notch. If you can’t generate leads and convert them into customers, you won’t be in business for long.
Costs & Pricing Strategy
As a construction contractor, one of your main concerns will be the costs of your projects. You will need to keep track of the materials, labor, and overhead costs for each job. In addition, you will need to develop a pricing strategy that will allow you to make a profit on your projects. There are a few different pricing strategies that you can use as a construction contractor. Cost-plus pricing is a common strategy that involves calculating your costs and then adding a markup to those costs. For example, if your costs for a project are $10,000, you may add a 10% markup, which would result in a final price of $11,000. Another common pricing strategy is value-based pricing. With this approach, you focus on the value that your project will bring to the customer rather than the actual costs. For example, if you know that the customer is willing to pay $15,000 for the project, you may price it at $12,000 in order to offer a competitive price. No matter what pricing strategy you use, it is important to make sure that your prices are fair and competitive. You can use online tools to research the prices of similar projects in your area. You
Forming a Legal Entity
If you want to start a Construction Contractor business, you will need to form a legal entity. This will protect you from personal liability and help you raise money for your business. You can choose to form a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each type of entity has its own pros and cons, so you will need to choose the one that is right for your business. If you are the only owner of your business, a sole proprietorship may be the best option. This type of business is easy to set up and you will not have to deal with much paperwork. However, sole proprietorships offer no personal liability protection, which means that you could be held responsible for debts incurred by your business. Partnerships are similar to sole proprietorships in that they are easy to set up and offer no personal liability protection. If you decide to form a partnership, you will need to choose a business partner who you can trust and who has complementary skills. It is important to have a written partnership agreement that outlines each partner's roles and responsibilities. A limited liability company (LLC) offers personal liability protection and is a good option for a small group of founders.
Opening a Business Bank Account
When you’re ready to start your Construction Contractor business, one of the first steps is to open a business bank account. This will help you keep your personal and business finances separate and will make it easier to track your expenses and income. To open a business bank account, you’ll need to have the following information and documents:
-Your business name and address
-Your Social Security number or Employer Identification Number (EIN)
-A list of the owners, officers, and directors of the company
-Articles of incorporation or a business license
-A voided check or deposit slip from the account you’ll be using for your business
Once you have all of the required information and documents, you can visit your local bank or credit union to open a business checking account.
Setting up Business Accounting
If you're starting a Construction Contractor business, one of the first things you need to do is set up your business accounting. This will ensure that you're keeping track of your finances and that you're complying with any financial regulations that apply to your business. Here's a quick guide to setting up your business accounting:
1. Choose an accounting software. There are many different accounting software packages available, so do some research to find one that will suit your needs.
2. Set up your chart of accounts. This is a list of all the categories of income and expenditure that you will track in your accounting system.
3. Set up your bank account. You will need a business bank account to manage your finances effectively.
4. Keep track of your income and expenditure. Make sure you keep accurate records of all money coming in and going out of your business.
5. Prepare and file your tax return. Once a year, you will need to file a tax return for your business. Make sure you keep on top of this so that you don't miss the deadline
Setting up Business Insurance
As a business owner, it is important to protect your company with the proper insurance. When setting up a Construction Contractor business, you will need to consider the following types of insurance:
-Product liability insurance: This will protect you in the event that a product you designed and printed causes injury or damage.
-Professional liability insurance: This will protect you in the event that a client suffers damages as a result of your work.
-Business property insurance: This will protect your equipment and premises in the event of damage or theft.
-Business interruption insurance: This will protect you in the event that your business has to stop operations due to a covered event.
-Employee dishonesty insurance: This will protect you in the event that an employee steals from your business.
Speak with an insurance agent to determine which policies are right for your business
Setting up a Business Website
If you want to start a Construction Contractor business, one of the first things you need to do is set up a website. This will be your online home base, where potential customers can learn more about your business and what you have to offer. There are a few key things you need to include on your website:
-An About page: This is where you can tell your story and give potential customers a sense of who you are and what you stand for.
-A portfolio: Showcase your best version on your website so that potential clients can see your work.
-A contact page: Make it easy for people to get in touch with you by including your email address and/or social media links.
-Pricing information: Let visitors know how much you charge for your services.
By having a well-designed website, you’ll be able to attract more customers and grow your Construction Contractor business
Obtaining the Necessary Permits
If you want to start a construction contractor business, you will need to obtain the necessary permits. The first step is to contact your local building department to find out what permits are required. Depending on the type of work you will be doing, you may need a general business license, a contractor's license, and/or a permit to perform the work. You will also need to have insurance in place before you can start working. Contractors are required to carry liability insurance, which protects you in case someone is injured while working on your project. You may also need workers' compensation insurance, which covers medical expenses and lost wages for employees who are injured while working on your job site.
Setting up a Business Number or Appointment Setter
When you’re ready to start your Construction Contractor business, one of the first things you need to do is set up a business phone number or an appointment setter. You can use a service like Google Voice to set up a business phone number for your Construction Contractor business. Google Voice will give you a free business phone number that you can use to make and receive calls. Once you have a business phone number, you can start taking calls from potential customers. When you get a call, be sure to take down the customer’s name, contact information, and what they need. Once you have this information, you can give the customer a call back to discuss the project in more detail and give them a quote.

Financing Investment

Finding the right financing and investment options for your construction contractor business is key to success. Research the available funding options, such as bank loans, private investments, and grants, and understand the benefits of each. Develop an effective strategy for investing in your business that will help you reach your goals.

Hiring Human Resources

When it comes to hiring contractors and employees for your construction business, it is important to be aware of the legal requirements. Create detailed job descriptions that outline the necessary skills and qualifications for each position. Establish HR policies that will ensure a safe and productive working environment for all of your employees.

Project Management

Managing projects effectively is essential to the success of any construction business. Develop strategies for managing client expectations, tracking progress and costs of projects, and ensuring that projects are completed on time and within budget. Utilizing project management software can help streamline this process.

Technology Equipment

Identifying the right technology and equipment needed to run a successful construction business is essential. Research what types of software and hardware are needed to manage projects efficiently. Invest in quality tools and equipment that will give you an edge over the competition.

Marketing Promotion

Marketing your construction contractor business is key to building a strong customer base. Utilize various marketing strategies such as digital marketing, email campaigns, direct mailings, and word of mouth promotion to reach potential customers. Develop engaging promotional tactics that will help you stand out from the competition..
Congratulations! You've made it through all the steps of starting your own construction contractor business. Now it's time to put all your hard work into practice and get out there and start building!

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content


Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Construction Contractor business plan, fill out the form below and download our Construction Contractor business plan template. The template is a word document that can be edited to include information about your Construction Contractor business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning


With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.


Want a Bespoke Business Plan for your Construction Contractor Business?

Our Expertise


Avvale Consulting has extensive experience working with companies in many sectors including the Construction Contractor industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your Construction Contractor business. We would also be happy to create a bespoke Construction Contractor business plan for your Construction Contractor business including a 5-year financial forecast to ensure the success of your Construction Contractor business and raise capital from investors to start your Construction Contractor business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.


About Us


Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.