Starting a construction company may be a dream of many people. but, the start-up costs can be prohibitive. One way to get a construction company started is to use rental equipment as it is needed. As the company grows and there is more money in the bank, the owner can purchase some of the most needed equipment. Numerous construction companies use a combination of equipment that was purchased new, purchased used, and rented.
Renting construction equipment can save the construction company money. It can also help in other ways such as the need for space to store large equipment. Rented equipment goes back to the rental company when the job is done. No need to store it. If rental equipment breaks down or needs maintenance, the rental company takes care of that so the construction company saves on repair and maintenance costs.
The success of using rental equipment depends on using the right rental company. Columbus Equipment Company with Komatsu SMART support is a good company to start with. Look online for a Komatsu dealer near the job site and see if renting their equipment makes sense from a budget and convenience standpoint. They will have company representatives to help the construction company find the right equipment for the job.
Here are some advantages of using rental equipment:
- There will be lower maintenance costs.
- The company will have the correct equipment for each job.
- The company will have access to more modern technology in equipment.
- Renting gives increased flexibility to the construction company’s equipment.
- Renting helps companies take on more projects.
- Renting equipment helps a new company plan its growth better and can make it easier to get financing.
4 Ways to Start a Construction Business
Starting a construction company takes a little research and planning help. Here are 4 ways to accomplish a business start-up.
1. Draft a business plan so you know how, when, and the reason for starting the company. List the steps that must be taken to make this company happen. At this stage, a plan can be drawn up, studied, and changed as needed. Once the plan is finalized, register the business. This will require meeting requirements for rules, registrations, and licenses in the community the business will be located in. The business can be registered as a limited liability corporation or LLC, or in several other ways.
2. Next it is important to apply for the required business licenses and get business insurance. There are several types of insurance that should be purchased including business insurance, liability insurance, and employee-related insurance.
3. Get financing for this new business. This can include loans and investors. Loans need to cover the company itself and the equipment needed to run the company.
4. Set up the construction company, purchase or rent equipment, hire employees, and set up a marketing plan to get customers. Get help here from a small business administration office or someone who is familiar with running construction companies. There will need to be a construction company site with an office and equipment storage that can be rented or purchased.
This location should be located conveniently near the area the company plans to do business in. The office will need to be furnished and equiped with all the materials needed to run a business including phones, computers, and materials for making bids and sending customers bills. if there are employees there should be space for them in the office. When the office is furnished properly it will be easier to oversee the construction projects. Marketing plans will also need to be designed to reach potential customers.