Pinecroft Funding Group, a small-business funding broker in San Marcos, TX, sets out the cost categories of starting a construction company in Hays County, TX: formation and paperwork, insurance, tools and equipment, a work vehicle, software and working capital for the first jobs. Hays County had 764 construction employers and 3,424 one-person construction businesses (Census CBP 2023, NES 2024).
Most construction firms here start small
Hays County had 764 construction employer establishments in 2023, and 64.9 percent had fewer than five employees (U.S. Census Bureau, County Business Patterns 2023). A far larger number work alone: 3,424 construction businesses in the county had no paid employees in 2024, including 2,374 specialty trade contractors (U.S. Census Bureau, Nonemployer Statistics 2024). Those are different programs and years, so they should not be added together, but the picture is clear: most crews start as one person with a truck.
Demand has been steady. The county authorized 5,011 new housing units in 2023, 5,405 in 2024 and 4,595 in 2025 (U.S. Census Bureau, Building Permits Survey, county annual files). That says nothing about how easy any single job is to win, only that there is building going on.
The cost categories to plan
| Category | What it covers | Usual way to pay |
|---|---|---|
| Formation and paperwork | Entity filing, an EIN, a bank account, accounting setup | Owner cash |
| Insurance | General liability, vehicle and equipment coverage, and any workers' compensation policy | Owner cash; premiums are ongoing |
| Tools and small equipment | Hand and power tools, ladders, safety gear | Owner cash or a card paid off monthly |
| Larger equipment | A trailer, compact loader, mini excavator or specialty machine | Equipment financing or rental |
| Work vehicle | A pickup or service body | A vehicle loan or equipment financing |
| Software and estimating | Estimating, scheduling and invoicing tools | Monthly subscriptions |
| Working capital | Payroll, materials and fuel until the first draws arrive | Owner savings first; funding once there is a track record |
We do not put dollar figures on these, because they vary too widely by trade. Get real quotes for each line and total them; that number is your start-up budget.
Sizing working capital for the first jobs
The cost most new contractors underestimate is the cash needed between starting work and getting paid. A simple way to calculate the working capital requirement:
- Add up a typical week of costs on a job: wages, payroll taxes, materials, fuel, equipment payments.
- Count the weeks from the day work starts to the day the first draw is likely to clear, using the contract's pay terms, not hope.
- Multiply the two, then add any retainage you expect to wait for at the end of the job.
- Add the same again if you plan to run two jobs at once.
That figure is how much cash the business must be able to reach before it can pay itself back from draws. Contractor and construction financing explains how working capital and credit lines cover it once the company is established.
What funders look for in a new contractor
Most lending partners want to see some operating history: bank statements, completed jobs and tax returns. A brand-new company with none of these is a harder case, and much early equipment is financed against the machine and the owner's personal credit.
Before the first bid, make sure the paperwork is in order: the entity is active, insurance is in place and you know what the city requires for the trade. The San Marcos, TX contractor registration and permit checklist lists what to confirm.
Where to get help first
A free SBDC adviser can review a start-up budget and cash-flow projection; see the directory on the resources page. Local figures are on our San Marcos, TX page, and more posts are on the blog.
By Pinecroft Funding Group ยท Updated