Starting a builders business is something that a lot of people consider because they will be able to work for themselves. If you are one of these people, you will need to know what steps you have to take to start this business. If you do not work through all of the steps correctly, you might not be able to legally operate your business.
Have A Business Plan
Knowing that you want to start a builders business is important, but there is more to this. You need to have a business plan that simply and clearly states what your goals are. The plan also needs to state how you are going to be reaching the goals.
The business plan that you create does not need to be professionally formatted or include any graphs and charts. The business plan will be used to get financial backing from the bank and as part of the documents for setting up your company.
Register Your Business Name
Once you have your business plan in place, you need to register your business name with the government. The name that you register will need to be unique and cannot be too similar to another company’s name. While this is not illegal, you could face complaints in the future where you might have to change your company name.
You will generally have to end the name of the company with Ltd or Limited. The only times when this will be different is if you are registering the company in Wales where you will need to use the Welsh equivalent. This is Cyf or Cyfyngedig and will only be for companies registered in Wales.
Choose The Business Structure
Once you have registered your business name, you will need to choose a business structure. Most small builders businesses will choose to be sole traders or limited companies. If you are going to be entering a business with another person, you should look at a partnership.
If you are unsure about the type of business you should choose, you need to talk with a solicitor or an accountant. Either of these professionals will be able to help you determine which business structure would be best.
Know The Rules For Your Business
After your business has been legally set up, you need to ensure that you meet all of the rules for your business. This will include getting the necessary insurance as well as the licenses that you need. As you are starting a builders business, insurance is vital as is bonding.
There are a number of insurance policies that you will need to get in order to legally operate your business. The minimum will be liability insurance and worker’s compensation insurance. There may be other insurance policies required based on the licensing in the county that you operate in.
In order to secure jobs, you may need to be bonded. You should look into providers at this point to ensure that you have everything ready when you get your first clients.