Starting a new business and becoming an entrepreneur can be a very exciting challenge. You must choose a path you have experience in, as well as choosing something that you’re passionate about. If you happen to have worked previously as a builder and have always wanted to break away to start a construction company yourself, below are few useful tips to help you get started.
The first step anyone needs to take before they establish a business is conducting thorough market research. While you might have the talent and determination to run a contracting business, it will never get off the ground if you’re not setting yourself apart from other companies in the industry, or offering the kind of services that customers are looking for. You should also decide whether or not you’re interested in becoming a general contractor, or constructing buildings to own and rent out, which is more in line with property development. During your market research, you should also be thinking about what kind of branding you want your business to have, how to develop it and how to market your business to clients.
Once you have determined what kind of construction company you want to be, and have a better understanding of where your business will fit into the market, you can start to write up your business plan. This is an essential step and any banks or other financial investors in your company will want to see this before they will offer you any type of business loan. You should include an accurate (or very close estimate) of how much your overheads will cost, such as an office/workshop lease, labour, marketing, equipment, etc. You should also provide them with examples of your marketing plans and a realistic estimate of how much profit you expect to make in the first year. Consider making a plan for the first 3-5 years of your business to demonstrate your long-term goals as well.
You can’t construct any kind of building without the right equipment, so you will need to take some time exploring supplier options. Are you going to purchase certain tools and equipment to keep, or will you be renting them? Where will you store all of your equipment when it’s not in use? How much will that storage space cost you? You should also think about getting security equipment to protect your building sites both day and night when you’re on a job. You can find examples of temporary construction site security at Mosquito.
The Right Team
Finally, you will need to have the right team of people working with you to make your construction company a success. You may already have some friends and colleagues in mind to invite to come work for you, but make sure you’re hiring people you know to be reliable and can trust. You might even want to look at recruitment agencies to help you with this process.
Running any kind of business can be stressful, but watching it grow into a success is worth it. If you’re interested in starting a construction company, think about the tips above and use them to help you get started.