Getting Started in the Construction Industry

So, you want to start a construction business. While the barriers to entry are pretty low when starting a construction or contracting business, there are a few very important steps you should take to help you more easily establish, grow, and protect your business.

Make a Business Plan
It all starts with your business plan. Your business plan will describe in detail how your business can meet its goals. Not only will a clear business plan help you strategize how your business can be successful, but it can also help increase your chances of securing financing. Once you’ve created a clear business plan for your construction business, it’s time to register your business, get an Employer Identification Number (EIN) and D&B D-U-N-S® Number, and find the financing you need to get started.

Obtain necessary licenses, permits, bonds and insurance
In addition to getting a business license, you will also need to determine what kind of permits and licenses are required for the types of construction work you’ll be doing. This varies state-by-state, so it might be a good idea to look up license and permit requirements in your state.

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Some states may require you to get a surety bond in order to obtain licensing.
If you plan on doing work with the government, you might also have to attain performance and payment bonds. A few helpful organizations to help you find and meet the requirements in your state are:
check arrow The Associated General Contractors of America (AGC)
check arrow National Association of Home Builders (NAHB)
check arrow Construction Financial Management Association (CFMA)

Get a D&B D-U-N-S® Number

It’s the first step in establishing and building your business credit file.

Being able to show potential customers that you’re a credible and trustworthy business can make the difference between winning a bid or new contract. That’s why so many contractors depend on their D&B D-U-N-S Number and business credit report to showcase their credibility to potential customers.

A D&B D-U-N-S Number is a free, unique business identifier used by 225+ million businesses worldwide. A D&B D-U-N-S Number allows you to establish business credit, showcase your creditworthiness to others, and is required to do business with most government entities and many Fortune 500 companies.

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Why Business Credit is so Important

Learn the Basics of Business Credit:

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D&B® Scores and Ratings – Supplier Evaluation Risk Rating

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Myths and Misconceptions About Business Credit – No one is looking at my business credit report

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The Basics of Business Credit – Judging a company’s credibility

Monitoring Your Business Credit Scores & Ratings

Once you have a D&B D-U-N-S Number, it’s a good idea to start building and monitoring your business credit file. By monitoring your business credit file, you can help ensure you’re prepared for new business opportunities and better maintain existing business relationships.

An easy way to monitor and stay on top of changes to your business credit is with  CreditSignal®* – the first, free way to monitor changes to your company’s Dun & Bradstreet credit scores and ratings.

Learn more about CreditSignal

How Could Government Low Price Technically Acceptable (LPTA) Impact Your Business?

February 16th, 2017|Comments Off on How Could Government Low Price Technically Acceptable (LPTA) Impact Your Business?

If you are doing any kind of business with the United States Government, you have likely seen the acronym LPTA, which stands for Low Price Technically Acceptable. What does LPTA mean to you as a [...]

  • subcontracting

Why Start with Subcontracting

February 6th, 2017|Comments Off on Why Start with Subcontracting

Why Start With Subcontracting In some cases, typically if your business is young, it will not qualify to contract directly with certain companies or government agencies. In cases like these, you can look into [...]

  • construction climate change

Construction and Climate Change

December 12th, 2016|Comments Off on Construction and Climate Change

As with many activities that result in manmade products, construction is a contributor to climate change.  But for construction companies, there’s also an unprecedented opportunity to be seen as a part—and arguably the largest part—of [...]

We’re Here to Help

Our dedicated credit advisors** are standing by and ready to help you find the best solution to help your grow your construction business

icon-phone-circle Get answers to your business credit questions.Call 1-800-701-7570

Next Section: Growing Your Construction Business >>

*CreditSignal only indicates that your D&B scores and ratings have changed and alerts you when your business credit file has been purchased. To view actual scores and ratings and learn about what industries are purchasing your D&B file, we recommend that you upgrade to one of our business credit monitoring or credit building solutions. Please note, due to the proprietary nature of these inquiries and inquiry requests, only the industries in which the purchasing customers reside will be revealed.

**The information and advice provided by Dun & Bradstreet and its Credit Advisors during business credit counseling sessions is provided “as-is.” Dun & Bradstreet makes no representations or warranties, express or implied, with respect to such information and the results of the use of such information, including but not limited to implied warranty of merchantability and fitness for a particular purpose. Neither Dun & Bradstreet nor any of its parents, subsidiaries, affiliates or their respective partners, officers, directors, employees or agents shall be held liable for any damages, whether direct, indirect, incidental, special or consequential, including but not limited to lost revenues or lost profits, arising from or in connection with a business’s use or reliance on the information or advice given during any counseling session.

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