How To Start a Home Building Company

Starting a home-building company can be an extremely profitable business venture, but it is essential to understand the process before getting started. 

This article will outline the basic steps you need to take to get your new company up and running. 


Eight Steps to Launching a New Home Building Business

1. Name Your Home Building Business

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

The main goal for naming your home-building business is to make it sound appealing and trustworthy so people will want to use your services.


2. Choose a Legal Form for Your Business

By incorporating your home-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 home-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 home-building business structures.


3. Write a Home-building Business Plan

All home-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 home-building business plan.


4. Apply for the Necessary Permits and Licenses

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

You must also register your home-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 home-building business licenses.


5. Determine Your Budget & Apply for Funding as Needed

In developing your home-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 home-building business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your home-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 home-building business to help you determine if funding is needed. 

Read our article about how to fund your home-building business


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

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

You may also want to invest in other software and applications to help you manage your home-building business. Many options available can help with project management, time tracking, invoicing, scheduling, and more.

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


7. Market Your Home Building Business to Potential Clients

Before you start selling your services, you must 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 home building industry through social media and blogs so they can help share your business. 

Additional strategies to prepare for include:

  1. Traditional advertising like print, radio, and TV ads
  2. Publicity efforts like press releases, media relations, and events
  3. Online marketing tactics like search engine optimization, blogging, and email marketing
  4. Direct marketing tools like direct mail, postcards, and coupons
  5. Referral programs to encourage customers to tell others about your business
  6. Sales strategies like cold-calling, networking, and door-to-door sales
  7. Partner marketing initiatives to promote your business through other companies

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


8. 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 home-building business.

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


Starting a Home-building Business FAQs

The home building industry is an excellent option for entrepreneurs who want to be their own boss and have the potential to earn a good income. Home building businesses offer many opportunities for those with the drive and ambition to succeed. The industry outlook is strong, and there is a growing demand for new homes.

To start a successful home-building business, you need a strong business plan, the right funding, the right technology and software, and an effective marketing strategy. You also need to be prepared to execute your promotional initiatives and find and train the right people to help you grow your business.

Here are some tips for starting a home-building business:

  1. Write a business plan
  2. Research the industry and competition
  3. Find the right funding
  4. Choose the right technology and software
  5. Develop an effective marketing strategy
  6. Promote your business through social media and other online channels
  7. Get the right people on your team
  8. Execute on your promotional strategy
  9. Train your team members
  10. Get new clients and grow your business

A simple checklist to use when starting a home building business is as follows:

  1. Name Your Home-building Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
  2. Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
  3. Write a Home-building Business Plan: Your business plan will also help you determine your start-up costs and will provide a roadmap with which you can launch and grow.
  4. Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
  5. Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
  6. Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
  7. Market Your Home-building Business to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need. 
  8. Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services



Starting a home building company requires completing the right planning and execution to make it a huge success. We’ve outlined some of the most critical steps to take when starting a home-building business, including choosing the right type of firm, marketing your services, and getting new clients. With these tips in mind, you’re well on your way to success!