This 6-page paper outlines the start-up and other questions pertaining to a construction business. Issues discussed include financing, type of legal/tax entities to consider, regulations and licensing and personnel necessary for help. Bibliography lists 3 sources.
Name of Research Paper File: D0_MTcstbiz.rtf
Unformatted Sample Text from the Research Paper:
In this particular case, five friends have banded together to form a commercial construction business. While two of the friends have assets and experience in running
companies, they have little construction experience. The three other friends, in the meantime, are low on assets and capital but are
high in experience, as all three have worked for successful homebuilders -- one of them, in fact, oversaw the local division of a national construction company for two years.
Even with the assets, however, the group needs to obtain additional capital. Bank financing requires personal assets as collateral. Venture capitalists, in
the meantime, wont demand the collateral but will, likely as not, demand control. If the business succeeds, all will be
well. But if the business fails, the friends are concerned that they could lose their personal assets and everything else they accumulated. Idea/vision for the business
Stephan and Janelle Diller, who wrote "How to Succeed with Your own Construction Business" point out the importance of a vision, and with that vision should
be what part of the construction pie that wannabe entrepreneurs want to tackle. Will it be remodeling of older structures? Will it be new construction? Will it be finding sub-contractors?
These are decisions that need to be made (Diller and Diller, 2004). For purposes of this paper, well assume that the friends are moving into the remodeling area like Diller
and Diller, because, as they put it, much of remodeling and repair is financed by either savings or insurance settlements claims, rather than a loan -- meaning payment is likely