Construction is one of the most important fields of work in the country, and it’s also one of the most profitable. Starting your own construction business is a great way to profit off your abilities, but you need to ensure you’re doing it the right way. If you want some great tips on the right way to run your construction business, then keep reading!
Where do I start?
The first step you need to make before starting is to register the business with the government and obtain a business license. You can register your business one of two ways (either as a small business or as an incorporated business), and each one has its own ups and downs. Overall, an incorporated business is the best way to go for a new construction company unless you don’t have Canadian citizenship, which is required for incorporated businesses.
Incorporated businesses have many more benefits, including things like
Identity protection: This allows you to attempt litigation if you find another business using your registered name. A small business doesn’t have these advantages, and that can become difficult if another company opens up in the area with the same name.
Tax Benefits: A small business doesn’t have the significant tax breaks and advantages that an incorporated business does. You will also need to process your taxes through your personal tax returns, which are taxed at a much higher rate than a corporation, so you might end up losing more to the government than you expected.
License Expiry Date: This will depend on what province you are running your business in, but most provinces have expiry limits on your small business license which means you have to keep it updated. Incorporation doesn’t need to renew its license, but you will also likely need to do a yearly filing (which is different than your annual tax returns) on the anniversary of your business opening date.
Liability: If you are opening a construction company under a small business license, then you are going to be the one liable for any issues that might bring litigation to your company, and they will be taking you to court over your company. Incorporation allows for separation, so your business will be separate from your personal finances. Your business will be acting as its own entity that can incur debt, go to court and enter into contracts without you being directly involved.
Gather Your Employees
If you want to build more than just small items, you will need to hire a trustworthy crew with the skills for the job. You also need to ensure you are getting a varied bunch that each has different skills, but some provinces require that your crew be registered.
Richard Fung who is a home builder in London Ontario says, “You will need to check out the requirements for your province to make sure you are hiring people with the proper qualification. In Ontario, for example, a general carpenter has no requirements to work, while a gasfitter or sheet metal worker does need them.”
Get comfortable with the rules
If you have experience with construction, then you likely know that there are many different rules and regulations that need to be followed in order to keep your workers safe. Even if you think you know them, they are updated all the time, and you need to make sure you stay up to date.
You want to make sure that your site and your employees are as safe as they can be. This will help you avoid any accidents that might result in litigation, and it will ensure any random inspections will come back with a clean report. There are regulations that are done country-wide and others that can vary by province.
Get proper insurance
We talked about being safe on the worksite, but if you happen to have a minor accident, then you want to make sure you, your business, and your staff are going to be covered by insurance. “Many larger companies require you to have insurance before they will even consider working with you, so it’s important to get the right kind”, says Richard Fung of Forever Homes.
An insurance agent will help you determine what type of insurance your business needs and which ones you should get, just in case. You want to make sure you are getting insurance for everything, including your work vehicles and any large equipment you use regularly.
Join some accredited associations
Canada has a few major trade associations in the country, along with a few that operate within each province. Joining a trade association will allow you to save money, learn new techniques, get valuable information, and you will be able to display the trade group’s membership badge, which allows customers to feel comfortable with your company.
Advertise the right way
If you want to get some business, you need to learn a bit about how to be social media savvy or hire a company that can help you. Social media has become the new word of mouth, and it’s one of the best ways to get clients and great reviews that will help you bring in even more customers.
A social media manager will be able to guide your pages for you, and they will likely do most of the work, but you will still need to help by giving them content. Some fun ideas to bring people to your page include:
- Time-lapse video of your current builds
- Drone videos that show your new projects in a unique way
- 360-degree video where viewers can control where they are looking
There are plenty of things in 2022 that you need to consider if you are getting into construction. As long as you keep these things in mind, your business will flourish in no time.