Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$66

$700

Inventory Expenses

$300

$10,000

Specific Industry Expenses

$500

$4,000

Vehicle Expenses

$2

$10,004

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$4,786

Total Startup Costs

$7,079

$67,551

The Blue Book

thebluebook.com

36,995

Construction Review Online

constructionreviewonline.com

76,585

ConstructionPlacements

constructionplacements.com

84,000

Construction Dive

constructiondive.com

94,425

Forbo Corporate

forbo.com

138,887

Fluor

fluor.com

147,933

The Korte Company

korteco.com

163,066

Bechtel Corporate

bechtel.com

164,144

Kiewit

kiewit.com

184,341

PCL Construction

pcl.com

210,084

Boxabl

boxabl.com

212,028

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a construction company. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Construction Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting a construction company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Low margins

The gross margins for your construction company are typically around 42%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the construction company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting a construction company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.