As of 2019, there were 830,000 construction companies in the United States. Only about 45% of them were growing at a steady rate. Then the pandemic hit.

As was the story with many businesses, the construction industry was halted temporarily in many places. This led to a backup on projects. When the industry received the all-clear to begin working again, the demand for construction went through the roof.

There is predicted to be an 11% growth in the industry between now and 2026. That growth rate is higher than all other occupations and is expected to create over 700,000 jobs in the country.

With that information in mind, it’s clear that there’s never been a better time to start a construction or contracting business. The field is experiencing high demand and there’s a need for professional and experienced individuals.

So what do you need to do before you open your own contracting business? There are three steps you can take right away to make your opening day easier.

Save For Startup

The first step to opening your own contracting business is to save money for your startup costs. On average, it takes $10,000 to $15,000 to start a construction business, and even then it’s important to be careful not to overspend until you know you’ll make a profit.

There are a few ways you can save money for your startup costs. The first is to put personal money towards it by cutting out things you don’t need. Instead of getting a new car or buying the newest smartphone, put that money towards your business savings.

You can also ask for money from investors, friends, and family. People who believe in what you’re doing are your best source of a potential investment, so if you can find them, be sure to take advantage of the opportunity.

If saving the full cost isn’t an option, you could save up some of the money and seek out a small business loan to cover the rest.

Complete Your Checklist

The second step is to create a checklist of items you’ll need to work effectively. In the construction field, this is mainly going to be tools, vehicles, and protective equipment. Those items can be costly to buy, and you don’t want to rush in before you have some idea of how the business is going to do.

If you’re at this stage, you can skip the costs of buying a fleet of vehicles by renting a collection of flatbed pickup trucks from a dependable company that understands the unique demands of construction. They’ll help you get approved quickly and even pick up the trucks from wherever your last job is when you’re done using them.

You can also rent large pieces of specialty equipment until you know how often you’ll actually use them. That lets you avoid the cost of buying and storing equipment that you may end up using rarely or not at all.

Give Your All To Your Goals

The last thing you need to do before opening your doors is to give yourself a set of goals for both the company and yourself. The company is tied to your career, so you must keep your personal success in mind when setting goals.

These goals should revolve around creating and sustaining success, so consider what it is you need to gain to feasibly continue the business in the long term. A good place to start is to determine how much money you need to make in your first year to meet your financial obligations.

From there, determine what you need to make an actual profit. Once you know the total amount you can break it down into monthly amounts so you can check in regularly to be sure you’re on track to achieve your goals.

Besides financial goals, you can also set goals surrounding the type of construction you want to do, how fast you’d like to grow, how many employees you’d like to have, or even how many days you’d like to be able to take off. Whatever is important to you, put it on the list. That way, you have a measure of the type of success that’s important to you.

Taking these steps before you open your contracting business can drastically improve your chances of success.  Take the time to make the investment in your future.