Top Questions to Ask Yourself Before Opening Your Construction Company
If you’re thinking of starting a construction company, you’ve probably decided what kind of buildings you will make and what materials you’ll use. Perhaps you’re getting ready to install skyscrapers using the latest technology, or maybe you’re preparing for eco-friendly single-family houses. Regardless of where you stand on these big-picture ideas, there are a few questions that all construction entrepreneurs need to answer before signing their first contracts.
Where Will You Get Your Equipment?
To run a construction company, you need many large machines, including bulldozers, backhoes, and excavators. Depending on how much startup capital you have, decide between a construction equipment rental or purchase. Try to use the same company for all your supplies so that you improve your networking skills.
How Will You Source Your Labor?
How many workers you need depends on the size of your project, but even a small site needs engineers, architects, supervisors, and laborers. In your business plan, detail your application process. First, what credentials you require. For example, do your workers need to have college degrees or do they need to have a certain number of years’ experience? Once you’ve made your application, figure out where to advertise your positions. Consider posting them at local colleges and community centers as well as on sites such as Indeed and Glassdoor.
Which Laws Do You Need Know?
As a business owner, you have a responsibility to understand the labor laws that apply to your industry, state, and county. The federal minimum wage for 2020 is $7.25, but many counties require that you pay full-time laborers more than that. Child labor laws also vary slightly from county to county, so make sure you check your workers’ ages carefully against your area’s requirements. This is particularly important during the summer when high schoolers and college students are looking for jobs. When in doubt, consult with a lawyer; you can be held responsible for a law even if you didn’t know about it, and you don’t want to start your career off with a lawsuit.
How Will You Handle Human Resources Issues?
Your human resources team handles discrimination complaints, such as reports of sexual harassment or racial discrimination. If you do not want to hire HR representatives immediately, you need to set up an avenue for confidential reporting and you must ensure that you have time to handle all the reports. Remember, if you do not properly handle a report of illegal discrimination, you can be sued. To prevent monetary losses and create a welcoming workspace, detail your HR strategy in your business plan and ask a lawyer to review it.
As you plan your construction company, you want to focus on exciting topics such as which clients you’ll work for and what kind of buildings they’ll order. However, unless you figure out the answers to these questions, you cannot take concrete steps towards making your plans a reality. Once you’ve finished this work, your investors will be so impressed that you’ll have plenty of capital to work on more interesting tasks.