{"id":5279,"date":"2019-03-07T18:50:24","date_gmt":"2019-03-07T16:50:24","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=5279"},"modified":"2021-01-07T14:30:55","modified_gmt":"2021-01-07T12:30:55","slug":"starting-construction-company-2021","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/starting-construction-company-2021\/","title":{"rendered":"How to Start Your Own Construction Business in 2021"},"content":{"rendered":"\n

Chances are, if you\u2019re reading this, you aren\u2019t quite sure how to start a construction company. Starting a construction business, as with any sort of business, is not a very simple process. But if you\u2019ve already come up with construction business ideas, rest assured that you haven\u2019t wasted your time – it\u2019s worth pursuing. Here, we tell you how\u2026<\/span><\/p>\n\n

Construction stats to get started: <\/span><\/h2>\n

Consider this: according to the <\/span>US census<\/span><\/a>, there are close to 700,000 firms that make up the construction industry, and employ over 5 million people. And, although the 2008 Great Recession certainly took its toll on the construction sector, there has been an upward trend which is projected to continue for the foreseeable future.<\/span><\/p>\n

According to the <\/span>Fails Management Institute<\/span><\/a>, in 2006 the construction industry made up approximately 8.5% of GDP. As a result of the Great Recession though, construction dropped to roughly 5% of GDP in 2011. But (here\u2019s the good news) the rebound that has been occurring over the past 8 years has been strong and steady – today construction constitutes about 6.5% of GDP.<\/span><\/p>\n

Likewise, <\/span>Statista<\/span><\/a> finds that spending on construction was valued at $788 billion in 2011 and jumped to $1.23 trillion in 2017 – that\u2019s an increase of more than 150% over a span of 6 years! That trajectory is expected to continue, with spending on construction predicted to exceed $1.5 trillion by 2022.<\/span><\/p>\n

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All of this is great news for anyone looking at starting a building company – but you may still be at a loss as to how to start a construction company.<\/span><\/p>\n<\/blockquote>\n

We deconstruct the steps involved in starting a construction business to help you nail it the first time around. Keep reading to learn more\u2026<\/span><\/p>\n\n

What to expect when starting your own construction company:<\/span><\/h2>\n

Are there some unique challenges that come along with drawing up a construction company business plan? Yes. But that doesn\u2019t make it impossible.<\/span><\/p>\n

There are a number of hurdles that construct business owners, new and old, should expect to be confronted with (getting construction business financing<\/a> is just one). We\u2019ll break it down for you here so that you won\u2019t be surprised when designing your construction business plan.<\/span><\/p>\n

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One important note: <\/strong>Of course, the type of business will affect the kind of\u00a0industry loans<\/a> a business needs,\u00a0as well as the specific circumstances that business finds itself in. Be sure to weigh your options carefully in order to choose the right funding solution for your business.<\/p>\n<\/blockquote>\n

Challenges that new construction business owners face:<\/b><\/p>\n\n

1. High cost of insurance<\/span><\/h3>\n

With the wide array of risks that naturally arise in the construction industry – injury to workers, damage to or loss of equipment, property damage\/faulty workmanship claims, natural disasters, and so on – insurance is a no-brainer. But the <\/span>cost for construction insurance<\/span><\/a> can be astronomical if you go about it the wrong way.<\/span><\/p>\n

The best strategy to minimize the cost of construction business insurance is:<\/b><\/p>\n