How much does it cost to start a construction company?

Question

Zippia Team · Accepted Answer

The average cost to start a construction company is anywhere from $50,000 for a small business to $500,000 for a larger construction business. There are many one-time costs and ongoing expenses for a construction company. Startup costs include licenses, permits, insurance, marketing, software, field labor, equipment, and tools.

Permits and licenses vary depending on the location of the business, but you can expect to spend $100-$1000 on these. Business insurance is at least $3.000 per year. The cost of equipment varies greatly depending on the type of construction you complete, but you should expect to pay at least $20,000.

Hiring employees is important for a construction company, and as it may take a while for you to first generate revenue, you should save up money to pay future employee salaries for a bit until you can begin to pay with revenue. You may choose to hire someone to help with marketing. If you choose to market the business yourself, you should set aside about $500 for this.