Construction Business Environment 287
Once the approximate amount of cash required to start the business is determined, you can then
estimate how much money is actually available or can be made available to put into the business and
to think about where the rest of the money needed to start the business will be coming from.
Employees and Required Forms.
If you intend to hire yourself or others as a full- or part-time employee of the company, you may have
to register with the appropriate state agencies or obtain workers’ compensation insurance or unem-
ployment insurance (or both).
When hiring employees, personnel files are needed for each person. At a minimum an I-9 form,
an IRS form W-4, and the state equivalent form for employee income-tax withholding need to be in-
cluded. Independent subcontractors should sign IRS form W-9. You may also require a copy of the
contractor’s workers’ compensation insurance. Some state laws require subcontractors to be included
on the firm’s policy.
Utilities.
Utilities are necessary overhead expenses. Advance deposits are usually required when you sign up
for power, gas, water, sewer, and phone services. Upon deciding to establish your own business,
place a display ad in the telephone book’s Yellow Pages (or at least a listing).
Expense Report.
It saves time to have a standardized expense report form for employees so that they can request reim-
bursement for their business expenses. Even if the contractor has just started doing business, it is im-
perative to monitor expenditure, and a standard form is perhaps the best way to do so. The expense re-
port needs to be neatly typed and organized, identifying each location, project name and number, and
applicable dates. Original receipts and supporting documentation should all be attached to the standard
form. Accounting should then process and record it in a timely manner before filing.
Office Equipment and Furniture.
All businesses need some equipment and furniture, although no two businesses will have identical
needs. Sometimes it may be better to preserve cash for inventories or working capital and purchase
good used fixtures and equipment at less expense.
Phone and Internet Service.
Get a phone number and domain name (for your Internet website) for your new business. The domain
name should be simple and easy to remember. This is discussed in greater detail in the a later sec-
tion of this chapter.
Suppliers.
Identify key suppliers by their names and addresses, type and amount of inventory furnished, credit
and delivery policies, history and reliability. It may be prudent to have more than one supplier for crit-