Owning your own small business allows you to set your own hours, take on the projects that interest you most, and secure your name as a go-to in the industry. If you want to start your own contractor business, you’ll need to plan, legalize, and brand.
Plan Your Business
Any successful entrepreneur starts with a business plan. Use it to outline your startup budget, target market, company name, and what you plan to charge clients. Consider which costs are one-time and which ones are ongoing when determining how much to charge clients in order to make a profit. Decide in advance whether you’re concentrating on specific cities and whether you’ll work on both residential and commercial properties.
Make It Legal
Next, make your small business legal. When choosing a name, search or it within state business records, federal trademark records, web domains, and social media platforms to ensure it’s unique. Choose and register your business structure, keeping in mind that forming an LLC or corporation will protect your personal assets if your company is ever sued. After that, apply for your employer identification number. Your company’s EIN is a requirement for paying your taxes. Remember to open a business bank account and line of credit. Keeping your personal and company finances separate makes tax time a lot easier. Finally, apply for the necessary permits or licenses.
Purchase Business Insurance
Before you hire employees or take on your first client, you need to obtain contractor insurance. In addition to general liability coverage, consider professional liability insurance, commercial auto insurance, and equipment insurance. If you have employees, it is also important to purchase a workers’ compensation policy.
Brand Your Business
Finally, brand your business. Create your website, business cards, and social media accounts using the same logo and color scheme. Engage with social media followers and use good SEO practices to make the most of your internet presence.
Are you ready to take the leap? Secure your financial future while remaining in the industry your love. Start the process of creating your own contractor business today.