Construction Business Environment 291
Insurance.
Insurance is an important prerequisite of any business. The premiums are usually expensive, especially
business liability, but you cannot operate with peace of mind without full coverage. There are many types
of insurance for businesses, but they are usually packaged as “general business insurance” or “business
owner’s policy.” If you plan to offer your employees health insurance, talk to your agent about the up-
front fee. Record the premium payment you will need to make before opening your business.
Bank Account.
With the federal EIN number in hand, you can now open a corporate checking account. Get to know the
manager of your bank. He will be one of your best references. Ask his or her advice on financial mat-
ters. The more he or she advises you, the better he or she will come to know you. Develop a line of credit
so it will be there when you need it. The banks can’t exist without making loans, so don’t hesitate to ap-
ply. Get set up with American Express, Visa, or any other credit cards you will accept for payment and
use for expenses. It will cost you from 3 to 5 percent, but it is necessary for attracting customers and en-
tertaining.
To establish your bank account, you will need a Federal ID number or Social Security number along
with your certificate of assumed (fictitious) business name. If you are incorporated, the bank will want a
copy of the minutes and a corporate resolution authorizing the account. Contact the bank prior to open-
ing the account to see what their specific requirements are for opening a business checking account.
12.5 CREATING A PROFESSIONAL IMAGE.
Owning your own business is one of the better ways to gain wealth and personal satisfaction, provided
you know what is required. Starting a business is risky, but your chances for making good increase if
you understand the challenges you will face and work out as many of them as possible before com-
mencement.
Develop a Business Identity.
It is imperative to create a good corporate image and business identity that reflect confidence and effi-
ciency. One of the first things to organize is a professionally designed logo, business card, letterhead,
and promotional material for the business. A professionally created logo and letterhead can go a long
way to giving clients the desired image.
Advertising and Promotion.
Many new businesses start operating with a grand opening announcement, giving press releases to lo-
cal papers and relevant business publications. It may also be prudent to print out a few hundred circu-
lars to distribute to potential clients. Alternatively, grand-opening circulars can be placed in the newspa-
per to be distributed to subscribers. In any case, the dollar cost of any planned advertising and marketing
initiative to announce the launch of the new business should be recorded and should include the cost of
flyers, sales letters, phone calls, signs, brochures, and other promotional items.