If you’re considering venturing into the construction industry, you may be wondering what you need to start a construction company. These companies require a variety of tools and heavy equipment. There are a few ways to obtain the necessary equipment to start your business, including buying, renting, and leasing. Before doing that, though, you need to know what types you need.
Learn about the common kinds of heavy equipment needed in construction and how to start a construction company.
How to Start a Construction Business
There’s more to starting a construction company than just doing strong work in the field. The key to understanding how to start a construction company is first understanding the business and legal side of running a company.
In addition to things like buying or renting an official business location and getting your construction business registered, you need to obtain the appropriate licenses, permits, and certifications to legally operate a construction company. The necessary licensure and certifications will vary depending on your municipality, city, and state, so do some research to learn what licenses are needed to start a construction business in your area.
Further, you have insurance responsibilities as a business owner. Some businesses, construction companies especially, have certain risks associated with the work they do. Insurance ensures you and your company’s assets are protected from damages, liability, and work-related injuries.
Another business-end aspect that’s crucial to consider is financing. Starting any business from scratch costs significant amounts of money. Paying bills, meeting payroll, and obtaining supplies and machinery are just a few of the many expenses you need to be prepared to cover. Loans are a great way to get your business started with adequate funds.
Heavy Equipment Needed to Start a Construction Company
You’ll need specific machinery and equipment for starting a construction company. Your needs will likely vary based on what kinds of projects and jobs your business will be working on, though there are some commonly needed pieces of heavy equipment. Consider this list of equipment used in construction when determining which machines you’ll need:
- Excavators: Excavators are versatile machines that are commonly used for tasks like heavy lifting, excavating, demolition, dredging, and more.
- Bulldozers: Bulldozers are used to remove or move topsoil and loose materials up to a certain depth using a wide-edged metal plate.
- Backhoe: Backhoes feature a loading bucket in the front for lifting materials and a hoe arrangement in the back, which is useful for excavating below the machine’s level.
- Dump trucks: Dump trucks are used to transport large quantities of materials to other job sites or dump yards.
- Loaders: Loaders have a larger bucket and shorter arm and are widely used to load materials like soil or demolition waste onto a dump truck.
- Compactors: Also known as rollers, compactors are used to compact soil or material like asphalt.
Tips for Starting a Construction Business
With so much to consider when starting a construction business, it can feel confusing to figure out where to start and what to do. To help you navigate the process, consider these additional tips for getting your construction company started:
1. Create a Business Plan
Creating a business plan helps you stay organized and focused on your goals. Establish timeframes for every stage and anything that will aid in a smooth business operation. Many financial institutions even require a business plan to receive funding, so it’s beneficial to prepare.
2. Network With Contractors and Suppliers
As a construction company, you’ll be working with other contractors and suppliers on various jobs. Establishing and building good relationships with contractors, suppliers, and other industry inspectors helps you build a professional network of people you can work with. You’ll be much more successful with positive industry relationships.
3. Avoid Common Mistakes and Pitfalls
A small number of startup businesses survive the first couple of years in business. To help your construction company launch successfully, try to avoid these common mistakes:
- Jumping into projects without a plan: Strategic planning, effective communication, and thorough documentation are crucial to ensuring you have a well-thought-out plan for each job you take.
- Overlooking risks: Be careful to avoid overlooking or underestimating risks and hazards on the job. Doing so can lead to damage or injuries, costing you significant money and time.
- Forgetting to track progress: Monitoring your business’s progress and efforts can help you make important business decisions and address any necessary changes.
Why Renting Equipment Is Better When Starting a Construction Business
When you’re just getting your business started, there are numerous costs and pieces of essential heavy equipment for construction. To help you save on costs while still accessing the necessary pieces of equipment to start working, consider renting equipment to get started.
You’ll likely be putting money toward numerous business elements, and renting construction equipment can be more cost-effective in a few ways. Renting construction equipment gives you access to new technologies and models, allowing you to provide quality work to your clients on a budget. Additionally, heavy equipment requires routine maintenance, which can add up in costs over time, especially if something breaks or is damaged. Rentals are maintained and repaired by the rental company, helping you save money on maintenance.
Another benefit to renting is that you’ll have access to all the available machines. Rather than purchasing and needing to store a fleet of heavy equipment, you can rent what you need for specific projects and return it when it’s no longer needed. This is extremely beneficial when you may only need a very specific piece of equipment for one or two projects.
Rent Construction Equipment From Thompson Tractor
As the only authorized Cat® dealer in northwest Florida and Alabama, Thompson Tractor is the premier choice for construction equipment rentals in this area. Regardless of the equipment manufacturer, you’re guaranteed to get a machine that’s ready for work.
Our service technicians are well-trained and perform maintenance and inspections prior to your rental. As a local rental service, you’ll benefit from our mindset of being your partner. We’re here to help you find equipment to complete your projects and achieve your business goals.
From trucks and trailers to earthmoving and roadwork equipment, Thompson Tractor has the construction equipment necessary for you to start your business. To learn more about our equipment or rental process, explore our selection of heavy equipment and submit a request for a quote.