For contractors starting out, I would advise them to establish the foundation of their company first. You shouldn’t start your business without creating a blueprint. The best way to start is by researching your industry. Collect and analyze data related to your market and the prospective clients and competitors in your industry. What are your competitors doing effectively and what are their weaknesses? Is it possible to compete with their services as a startup business? Is there a benchmark company that you aspire to replicate?
After you evaluate your industry and its trends, you can tailor strategies that align with these business needs that will also help you estimate what you will require for the future expansion of your business. Over time, you can tweak and update this business plan to align with the ever-changing needs of your business in the present and future.
Once you’ve done the research, make sure to prepare for the unexpected. Disputes are common on construction projects, so you want to protect your company from the get-go. Make sure you are in compliance and have all your legal documents in place long before litigation arises. Consult with an attorney from the beginning. A good construction lawyer can not only represent clients in disputes, but also help manage risks and advise on good business practices.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation. Regulations and laws may vary depending on your location. Consult with a licensed attorney in your area if you wish to obtain legal advice and/or counsel for a particular legal issue.
Trent Cotney is the founder of Cotney Construction Law, specializing in construction law. See Trent’s full bio here.