Insurance

Are you a contractor or considering a career in the construction field? If so, you must be aware of the enormous opportunity you have to become self-employed and start your own company. However, first things first - to become a contractor, you must establish experience and then obtain your license.

As with many industries, experience plays a major role in the construction industry. If you're just starting out, don't be dismayed. Once you get some experience under your belt, not only will you be better prepared to focus on your own company, but you will also have had the opportunity to hopefully make valuable connections and mentors. Once you have approximately 4 years of experience established, you will be eligible to take the state contractor exam and obtain your license.

A little more on obtaining your license - preparation is key. First off, consider pursuing education for a contractor, like a prep course, so that the exam material is fresh in your mind. There are various options out there, including online and correspondence courses that you can work on in your free time.

Next, select a reputable source, like a boss or co-worker, to support your experience (which will be required on your application to take the state exam). Also, there will be some minor fees associated with your application process, so budget-wise, plan ahead.

Obtaining your license is essential if you want to work and conduct your construction business legally. More importantly, being a licensed contractor will make developing your own business easier, because the majority of consumers won't want to hire you otherwise.

Now, for those of you who have met the requirements to be a contractor, which include the experience background and a license, if you feel you have the contacts and will to start your own business, with a little planning, you can work towards establishing your own construction company.

Start by creating a business plan. A business plan will simply outline what types of services you plan on offering, what community areas you will serve, advertising and marketing, an approximate fee structure, materials you will need and estimates of their costs. This business plan will serve as your guide and may require editing from time-to-time as you progress.

Next, consider what type of business you want to form. For example, a limited liability partnership will protect your assets. This decision requires careful thought to protect yourself and your family if anything were to happen, so consider seeking advice from an attorney and/or accountant.

More than likely, you will need funds to get your business started, especially if you need to purchase equipment, trucks, etc. If you don't have savings that you plan on using, you will probably need to shop around for loans. Consider a visit to your personal bank or contact the U.S. Small Business Administration (SBA), which was established for small business owners.

Other things to place on your construction company check-list include insurance, especially since you will be working on other people's property. To be safe and fully covered, you will need auto insurance, worker's compensation, bond insurance and general liability insurance.

Additionally, advertising and marketing will be important to get business. You can establish a simple Web site that lists your services and contact info, drop off fliers in the communities who want to target and offer a special discount to new customers. These are just a few examples, there are endless options.