Unless there is an economic recession, the construction industry around the world is always stable, irrespective of whether it is a peripheral, core or semi-peripheral country. This is one reason why it is usually safe to start such a venture of your own – provided you plan it correctly.
Here are a few essentials that you should keep in mind when starting a construction business.
Have a business plan in place – Without a business plan in place to start off, you’ll just be going around in circles. A business plan is a specific document that clearly specifies the actions that you should take to break even and the direction to become a profit generating entity in the shortest possible time. The plan typically covers areas ranging from finances to marketing, from the required inventory level to administrative aspects. In short, it has everything that will be relevant to your business. It will also include a section on other construction businesses in your proposed area of operation. Knowing your competitors’ plans and strategies will help you plan your business better and develop a strong competitive edge in the industry.
Following a business plan is one of the only ways to easily succeed in your venture. However, it is recommended that you get the plan drawn up by an expert business consultant with experience in the construction industry.
Fulfil all your legal obligations – There are a lot of areas that need to be looked into in this regard. The first step is to register your business with the State that you are based in, either as a sole proprietorship, partnership or private limited company. Study the tax benefits and advantages of each before proceeding to the next step to ensure you register the most beneficial structure for your business.
Get funds for your project – This is where your business plan will come in handy. A comprehensive document that was created with the help of a business consultant, can be given before financial institutions to help your application for acquiring business funds and credit. However, remember to start small and you will not need a lot of equipment in the initial stages. Buy what is necessary and if possible get second hand ones in good running condition at a fraction of the cost of new equipment. Save expenses on office space too. Start from your home provided you have adequate space to store your tools and park your equipment.
Hire competent people – A very crucial part of your business, your future reputation will greatly depend on the quality of services delivered by you. Your core staff should consist of an architect, engineer, designer, equipment operators and supervisors for the initial stages. To be certain you receive the best people as quickly as possible, try contacting a labour hire employment agency with your staffing requirements. They have databases of qualified people who can be contacted and start as soon as job opportunities arise. For small businesses starting out, instead of paying the high salaries of permanent people, try opting for freelancers on project-based contracts. You might find less traditional employment options more beneficial when starting out.
Market your venture well – All your efforts will come to nought if you do not optimally market your venture. Print brochures and flyers for distribution in your local area or have banners put up in public places and community halls. In today’s business environment, it is typically recommended you opt for an effective online digital marketing campaign based mainly on social media platforms.
These are simply a few tips to help you get your construction business started. However, do not be discouraged by a long list, many of these aspects you will pick up as you go along.