Posted on: 31 March 2015
Everyone needs a way to make money, especially when they have no money. The catch 22 is that you need to have money in order to make money. Though you must have some start up cash, you can start a business on rock bottom prices, especially in the construction business. If you are a construction worker or home builder and wish to start your own business, here are some steps to spending low dough but starting a proper business.
Build a garage
Renting a storage unit is the typical advice that you will get to store contracting equipment. However, as someone with limited funds, the best way to store your items is to build a shelter for them. Constructing a makeshift building for your tools with weatherproof equipment will keep your tools in good condition. A small wooden building covered with a tarp can be built for a low cost and can hold your tools indefinitely for no further cost.
Lease the big items
Owning major construction equipment is for those well-established companies with many jobs. As someone just starting out, you can opt for heavy equipment leasing instead of buying the equipment outright. You are also in luck, as heavy equipment leasing loans are available through finance companies for construction equipment. Rent out the equipment for the duration of the job. Once you are booking jobs back to back, you can consider making a full-time purchase with financing.
Use the deposit wisely
As a construction company, it is wise to be paid in installments and charge a deposit before beginning the job. This will make it easier to cut your losses if something goes wrong or if the client does not wish to pay. Once you collect the deposit, use the money to collect the equipment and materials that will be needed for the job. Be sure to write out a contract explain what you plan to be paid, and when payment should be collected. A contract will protect you and the client, plus help them feel comfortable giving you the deposit that you will need to get the job materials ready.
Use your buddies and network
If you have a big job, you will likely need people to work alongside you. Subcontracting parts of the job to other companies is a possibility, but will not work if you are not turning a large profit immediately. This is where your construction network will come in handy. Hire your buddies that you have done construction jobs with before. Let them know the pay rate upfront and what you intend to do with your business. Starting out with a few good workers that you are close to will make the journey easier and more fun, even with low cash reserves.Share