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What's the most important thing to do in construction when you want to own a business?

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Sandesh’s Answer

1. Know you niche: You want to get in residential (subdivision development (SFH/Townhomes), condo buildings or one-off SFH units) or Commercial (Multifamily, Malls, Professional Buildings)

2. Find the site
3. Know the process
4. Make network with Contractors, Architects, Engineers

3. Find the investors for equity investment or bankers for debt. Find partners if you have not established credit.
4. Create your proforma and business plan
5. Pitch the plan to your investors and debtors

Close the deal
6. Put a contract on the site with contingency to close based on cleared permits to construct.
7. Work on permits. You will need contractor who can obtain permits for you. Work on plan, selections, finishes.
8. Close the deal after you obtain permits

9. Initiate construction by closing deal with contractors
10. Monitor the project (Hire a PM)

11. Find the broker to list the project
12. Close the deal
13. Pay the debt or equity share
14. Enjoy the profits

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Erica’s Answer

Running a successful business takes a lot. While I am not an expert in construction, my husband’s family used to own their own construction business. Here’s a few tips I would recommend:

1)     Have insurance that covers any jobs types you may work. This may take time to find the right insurance for the type of work you are trying to do.

2)     Have a tax accountant. You may like to have money saved up to ensure you can go a few months without jobs or have smaller jobs, this may not help you at tax time. Be careful and find a tax accountant that can provide you the guidance you need.

3)     Have a good system to ensure people calling for estimates isn’t wasting time. If you ask the right questions you can help yourself and your customer prior to ever scheduling an appointment to meet with them. A good example is a customer calls for a deck, they plan a budget that is small but want the most expensive decking around and do not have the money for that. Ask the right questions before scheduling an appointment so you are meeting with people that may actually hire you for the job.