If you’re planning on starting a construction management company, congratulations!
This is an ever-changing field that will undoubtedly lead your career down new and exciting paths. Although ultimately rewarding, this is an extensive undertaking, so you’ll need to put in the necessary work to achieve your desired results.
Educate Yourself on Construction Management
Although it’s possible to build a construction management company without education in the field, you’ll be more successful with it than without it. Most community colleges and universities offer construction management programs, and some even offer online courses.
To gain a comprehensive knowledge of construction management business in a short period of time, get an associate degree in construction management. This degree program typically takes two years to complete. A four-year bachelor’s degree program will grant you a well-rounded understanding of this industry, along with additional real-life experience and specialized knowledge.
To go above and beyond your competitors, a master’s in construction management will give you all the necessary skills to succeed in upper-level construction management careers and endeavors.
Research the Construction Market
In order to establish a successful construction management company, it’s absolutely essential to understand your market. Construction management is a provided service and therefore needs to be advertised as such. In order to make gains in this business, you’ll heavily rely on the support and approval of your clients.
First, make sure that your location is conducive to your new business. If you are living or working in an area that’s already filled with reputable construction management companies, you’ll obviously have a harder time finding clients. Furthermore, it’s important to do plenty of research on the data surrounding your competitors. What do they charge? What are their specializations? What is their typical customer base? These questions will help you decide whether or not it’s feasible to set up shop.
Create a Business Plan
Every Great Business Starts with a Plan. Start simple by charting out your ideas. You can’t really know what you want to do with your business until you write out your purpose, agenda, goals, and requirements clearly and concisely. This is especially true with a construction management company. The construction industry varies widely over a spectrum of specializations, so the more specific you can get, the better. A lot of starting a business is learning by doing, but with a carefully developed business plan, you’ll be able to stay on the right track.
A business plan is not just important for you and your understanding. It will also serve as a kind of resumé for the institutions you’re trying to work with. This document will give them an idea of what your small business can offer and will serve as the jumping-off point for possibly receiving funding and advancing further with projects.
Create a Financial and Legal Plan
Although finances and legal issues are not the most exciting side of starting a business, they are undeniably unavoidable. Take the necessary time and energy and get organized from the beginning. Building your business plan on an ethical and well-structured foundation will help it run smoothly for years down the line.
First things first – register your construction business. Once that’s taken care of, you can move on to obtaining the proper licenses and permits. This can be tricky, considering you’ll need to fulfill requirements both on federal and state levels. Required licenses and permits for construction companies vary from state to state, so it’s absolutely crucial to do your research on this topic.
Next, you will need to gain funding for your construction management business. Whether this is through your savings, private lenders, bank loans, or all of the above, you must create a cushion that’s sustainable and manageable for your path of growth. In this step, it’s best to consult with a strategist or expert in the field of finances. Construction management deals with big numbers, so it’s better to be safe than sorry.
Understand Your Roles as Both an Employer and Leader
You’ll also need to think about insurance and liabilities. When you start to take on employees, it’s your responsibility to protect them. Make sure to get the right systems in order to protect you, your business, and your team.
In addition, take a moment to think about the kind of business owner you want to be. When you decide to start a business, you simultaneously step into the role of leader. You gain an important responsibility to take care of your employees and clients as they put their trust in you and your business. When starting your construction company, know that your ideas, decisions, and conduct will ultimately have influence.
Starting a Construction Management Company One Step at a Time
No matter what industry you’re in, starting a business is an overwhelming process. Take each step one at a time, and this journey will work itself out. By starting with these initial stages, you’ll quickly find your footing.