For many contractors, starting your business is one of the most exciting and stressful things you can do. You finally get the independence that comes with being your own boss and have the chance to choose your own jobs, hours, and so much more. However, owning your own contracting business also brings a lot of responsibilities and tasks you have never done before. You now have to worry about new things like your contractor business taxes, insurance, and many more complicated aspects of being a business owner.
Getting started is often the hardest part of having your own PA contracting business, so we developed a guide to help you get your business up and running and set yourself up for success. Here are some of the first things you will have to do to start your own contracting business in PA.
The Basic Initial Tasks You Need To Start Your PA Contractor Business
Before you pick up the hammer and start lining up clients, there are a few paperwork tasks that need to be completed to make sure that your business has a strong start.
1. Register Your Business With State And Local Government
Registering your business is the first step towards having a successful contracting firm. When you register your business name, you are able to claim that name as your own and keep your business distinct from your competitors. Additionally, it can help you separate your business dealings from your personal accounts, helping to protect your personal assets from your business liabilities. Lastly, registering your business will set up what you need to make sure that you are following the rules set up by both state and local governments, and can prevent you from running into employment law issues or tax troubles.
2. Get Your Business’s EIN
EIN stands for Employer Identification Number. This number is used by the IRS to identify your business for tax purposes, and is needed to open a business bank account. Essentially, it is like your business’s social security number. This number will help the government to process your taxes, and is necessary if you plan to hire and pay employees.
3. Get Insurance For Your Business & Employees
Insurance is essential to protect you and your business from accidents or lawsuits. Most likely, you will want to purchase health insurance for your employees, and if you do have employees, worker’s compensation insurance is a must. But even if you plan on working on your own, you will still need policies that cover your business as a whole, and insurance for any vehicle you use for your business.
4. Purchase Your Tools & Equipment
Once you have everything else we mentioned squared away, you can begin to start purchasing your equipment and tools. These will all be an important part of everyday operations, so you’ll want to make sure that your equipment is efficient and long-lasting. However, this doesn’t mean that you have to buy all brand new tools. Consider searching for equipment being sold from other contractors, or look for manufacturer sales. Quality and affordability aren’t always mutually exclusive.
Strategic Tips For Starting Your PA Contractor Business
Now that you have all of the legal and technical work sorted out, you are ready to start serving your customers. But without the right connections and knowing where to look, those customers might be hard to find. Here are some tips to find your target customers and make the connections you need to succeed.
1. Invest In Marketing For Your Contractor Business
It goes without saying, but without customers your business will go nowhere. It can be hard to start your contracting business by just making cold calls and knocking on doors, which is why investing some money into your PA contracting business is such a valuable thing to do. Here are some great marketing tips for new contracting businesses:
- Purchase yard signs with your business on it and put them around your service area (only where you have permission, of course)
- Invest in a professional website and online marketing for your business
- Start a social media account for your business where you can post pictures of your amazing work
- Set up a free Google Business Profile
- Attend local networking events
- Encourage customers to leave reviews and refer your business to friends and family
2. Partner With Contractors In Your Area
Just because there is another contractor in your area doesn’t mean they have to be your competitor. Partner with other local contractors who have different areas of expertise than you. You can tackle large projects together and both reap the benefits. Even if you don’t work on the projects together, they can help refer their clients to your business when they need services outside of their specialty.
3. Partner With A Local Lumber Company
Partnering with local lumber and building material suppliers gives your new PA contracting business two distinct advantages. When you develop a relationship with a local building supply firm, you have access to the materials you need and can often save money if you stick with them over a long period of time. They will get to know your business and make sure that you have the best materials for the job. Additionally, they can connect you with homeowners who are looking for a contractor to install their new supplies.
When the supply company sells a new kitchen to a family, that company can refer you to help put it together. All in all, partnering with a local lumber supply business can be one of the biggest benefits you can have for your new contractor business.
MRD Lumber Is Here For New PA Contracting Businesses
If you are looking for that valuable partnership that will help set your business up for success, MRD Lumber is here for you. We love to work with contractors in Eastern PA and provide top-notch building materials for kitchens, bathrooms, decks, windows & doors, and flooring. We even have a custom mill shop that is ready to produce the materials needed to fit any customer’s demands. Learn more about how MRD partners with contractors, and contact us today to start a valuable partnership that will help your new contracting business take off.