Setting up a home contractor business is not difficult if you follow a few well-defined steps. These are the same for any business in the initial stages but become more tailored for the specific business type.
We show you the specifics required for a contractor working on home building sites to help you set up your firm.
Costs and Essentials
Initial start-up costs, at the lowest range, will be between eight and twelve thousand pounds. This will cover insurance for a few months, your business licence and registration, some advertising, setting up a website, and a company phone.
The latter is more suitable than a fixed landline as you will be able to monitor new business while on-site and keep in touch with clients.
You should factor in enough capital to cover the deposit on transport with a trailer, your equipment and tools, as well as sufficient to cover your fixed costs and salaries for six months.
If you have any employees who will be working on-site, you will need to register for workers’ comp.
Getting Your Equipment Together
There are certain tools and equipment that you need to purchase upfront before you can even start giving quotations, such as a proper measuring tape and plumb line.
Additionally, to do any work, you should have basics like a hammer, spade, wheelbarrow, chisel, screed, right-angle frame, saw, tile cutter, and ladder. Depending on the exact construction work you will be doing, there are many other essential tools to consider buying.
If you cannot afford a full set of equipment, this will limit the scope of work you can do. But many tools that you will only use on occasion can be hired such as generator hire and wood chipper hire. For work you subcontract out, such as plumbing and electrical aspects, you will not need to equip yourself.
Your business must be established as a legal entity. You have the choice of a sole proprietorship, limited liability company, corporation, or partnership. Here are the benefits of each structure.
Next, you need to register for paying tax on your business income. It is a good idea to use a tax consultant once a year to do your income tax submission. Remember to keep and file all documents according to a system. Getting an accounting software to do the tax tracking and calculations accurately would be great too.
Separate your personal banking from the business. Open a bank account for the business. This will give you access to business lines of credit.
Check with the town clerk about what permits and licences you will need. You can be fined if you operate without the required approvals. Your business could even be shut down.
Finally, make sure that your business is insured. Speak to an expert financial manager to make sure that your cover is comprehensive.
A website is viewed by most customers as a sign of a business’s professionalism. There are website builders that provide templates to create your own or you can hire a company that does web design. Make sure you are active on social media as this is a form of advertising.
With these steps taken care of, you are ready to start operating your home contractor business.