How To Start a Building Company

Starting a building company is not as hard as it may seem. This article will outline the steps you need to take to get your business up and running. We’ll also provide some helpful tips for entrepreneurs looking to get into the construction industry. 

Here are the ten steps to starting a building business.


10 Steps to Launching a New Building Business

1. Choose Your Type of Building Business

The first step in launching a building business is to identify the type of building business you want to launch. You might choose from the following types among others: 

  • Commercial building
  • Residential construction
  • Green building
  • Industrial or institutional construction


2. Name Your Building Business

Give your building business an identity so people will think of it as a well-known and respected brand. You can take the name of your building business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your building business is to make it sound appealing and trustworthy so that potential customers will be more likely to use your services.


3. Determine Your Building Business Model

There are several possible types of business models for a building business including:

  1. General contractor: You will be responsible for the entire construction project from start to finish.
  2. Construction manager: You will be responsible for coordinating and managing the construction process but will not typically be involved in the actual hands-on building.
  3. Design-build: You will be responsible for the project’s design and construction.
  4. Owner builder: You will act as the property owner and general contractor, overseeing all aspects of construction.

No matter which model you choose, make sure that it aligns with your business goals and the services you offer.

Read more about choosing the right business model for your building business.


4. Choose a Legal Form for Your Business

By incorporating your building business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your building business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common building business structures.


5. Write a Building Business Plan

All building business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

Read our article about how to write a building business plan.


6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your building business.

For example, if you’re going to be doing any type of demolition, you’ll need to get a permit from the local municipality. If you’re running a business out of your home, you might need to get a zoning permit. 

You must also register your building business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper building business licenses.


7. Determine Your Budget & Apply for Funding as Needed

In developing your building business plan, you will figure out how much funding you need to start and grow your business.

If you have your own funds to invest in your building business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your building business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about the costs associated with starting a building business to help you determine if funding is needed. 

Read our article about how to fund your building business


8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your building business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in project management software, which can help you keep track of deadlines and milestones, as well as construction estimating software to help you prepare bids.

Read our article about the technology and software you need to run a building business.


9. Market Your Building Business to Potential Clients

Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the building industry through social media and blogs so they can help share your business. 

Additional strategies to leverage include:

  • Yellow Pages Advertising
  • Creating a Brochure or Capabilities Statement
  • Direct Mail Marketing
  • Email Marketing
  • Networking
  • Referral Programs
  • Sponsorships
  • Trade Shows and Events

Read our article about how to market your building business for more tips.


10. Get New Clients & Grow Your Business

When you promote your services, you’ll start to get interest from potential clients

Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your building business.

Read our article about how to effectively grow your building business to learn more.


Starting a Building Business FAQs

There are many reasons to start a building business. Perhaps you’re interested in the challenge of starting and growing a successful business. Or you’re passionate about making a difference in people’s lives by helping create their dream homes or businesses.

Whatever your reasons, starting a building business can be a rewarding experience. It can also be a lot of work. But if you’re up for the challenge, the rewards can be great.

To start a successful building business, you need several things:

  • A passion for the building industry and a desire to help people create their dream homes or businesses
  • Experience in the construction industry
  • The willingness to work hard and long hours
  • The ability to effectively market your business
  • The right technology and software in place to run your business efficiently
  • The ability to find and train the right people to help you grow your business

Here are some tips for starting a building business:

  • Be passionate about the building industry and helping people create their dream homes or businesses
  • Have experience in the construction industry
  • Work hard and long hours
  • Effectively market your business
  • Invest in the right technology and software
  • Find and train the right people to help you grow your business
  • Purchase insurance and obtain the appropriate licenses and permits.



Starting a building business requires several steps, but if you follow the simple checklist provided and take the time to plan your business carefully, you will be well on your way to success. In addition, remember to invest in the right technology and software, find and train talented employees, and market your business effectively. With these tips in mind, you can succeed in the building industry.