If you are looking to get into the construction business, now is an excellent time. In this competitive industry, you’ll find yourself connecting with clients and other companies like never before. Whether you’re starting this path with a new business or as an independent contractor, there are tips and tricks you should know to help you get started.

Here are 10 things to keep in mind as you work through your first year in the construction business.

A good place to start is by assessing your trajectory with your services and looking at other construction businesses. First, study how other contractors run their companies. What are their strengths? What are their weaknesses? What unique approach can you add to your company that will give you an edge?

Then, assess your own business and its strengths and weaknesses. What issues do you foresee? How can you improve upon them to help your company thrive?

As a contractor, you’ll need to obtain various licensing and insurance. Depending on your specialty within the industry, you’ll need licenses to operate and, if you work from home, a home business permit as well.

Construction businesses need multiple types of insurance, too. General liability, property and vehicle policies are among the top requirements. Some states call for additional coverage, too, like workers’ compensation, state disability or unemployment. Surety bonds are also a necessity with construction businesses, allowing your clients to receive payment or a guarantee of a new contractor should your project not come to fruition.

You’ll want to surround yourself with people who can aid your company in taking off. A professional advisory team can help since they have experience in the process of finding the right path. However, new construction companies can manage on their own if they start with a firm vision and focus on attracting the right people.

Your other team will consist of employees, subcontractors, independent contractors and more. They must be ready to commit to the business and have the know-how to help it thrive. When you surround yourself with the right people for the job, you ensure that your company is the best it can be.

It can be challenging to retain construction workers in a competitive labor market. New businesses may have more uncertain futures but invest what you can in training and share your vision for the company’s purpose and success. This will keep workers engaged and help your team avoid road bumps in the face of a skilled labor shortage.

Budgeting is a business need that tends to hinder people the most. With planning, though, you can ease the process. Once you start an undertaking, you can plan your budget accordingly. Be cautious with business credit lines and make smaller purchases with cards that you can pay off monthly. Save the more significant investments for what the revenue brings in.

When it comes to budgeting for specific projects, many companies divide expenses into “soft costs” and “hard costs.” Soft costs include service fees, insurance, and other project management expenses. Hard costs the include tools, labor and building materials needed to complete the construction project. Only experience will help you determine the perfect plan, but a common rule of thumb: soft costs should account for 30 percent of the budget, while hard costs account for 70 percent.

Once expenses are listed, your team can make cost-cutting decisions. This might mean streamlining communication, working to stay on the project timeline and other choices that can effectively reduce soft costs.