So, you have decided to start your own construction company. Great, we love your entrepreneurial spirit. However, pause a minute; starting any business is a serious task, so you had better roll up your sleeves. To help you overcome this starting obstacle, we have created this five-step guide on how to start a construction business. So, shall we begin?
Start with a business plan
Starting any type of business should always begin with a solid business plan. Sure, you can get by without one, it’s not like its legally required, but with a business plan you will have a much easier time tracking your progress, finances, etc.
The construction industry is huge. There are numerous divisions and subdivisions. For example, you can focus on commercial or residential construction, or even on both. After that, you can choose to specialise in new construction or you in renovations, improvements, and so on. You get the point.
A business plan can also serve as a guide for your investors. If you are looking for a loan, most banks and investors will ask for a business plan. This will tell them in what direction you plan to take your company, as well as other details about your business like funding, yearly profit estimates, business structure, and much more.
Scout a location for your office
No company can exist without a headquarters. As a construction company, you won’t be getting a ton of walk-in clients, so spending a lot of money on a prime location might be a waste of resources. Of course, if you have the means, it’s always nice to have a swanky downtown office.
However, the bulk of your assets and equipment will be stored somewhere else, so don’t stress about it too much. Many construction companies have their offices and warehouses separated. Just try to make your headquarters accessible, so your clients can get informed about your projects in person or by any other means of communication.
Acquire permits and licences
Before opening a construction company, you will need to acquire all the necessary licences and permits. You should take this part very seriously because missing even one permit could result in your company’s shutdown.
To make things even more complicated, licences are different in each country or state. If you want to play it safe, we recommend hiring a lawyer that specialises in this area of law. They will help you get all the permits that you need, as well as make sure you are cleared from the legal side.
Buy professional equipment
Quality Construction equipment is hard to find, so you should immediately start looking for companies that offer great deals on this type of product. Of course, if you already have some tools and machines in your possession, they can be put to good use.
Even though buying brand new equipment is the way to go, more often than not small construction companies can’t afford them. This is where used equipment comes into play – just make sure that you have serviced and repaired every piece of it.
Ask for advice
Lastly, having someone to lead and mentor you through these starting days in the construction business will help you a lot. No one can guarantee your success – such is the nature of business. Even if you’ve closely followed our steps, the market can turn upside down without notice. That is why we always recommend having someone to consult with about your business decisions.
And that is about it. There are many more things you should keep an eye on while starting a construction business, but these five are the most important ones. We hope that our article helped you create a better picture of what does it take to start a construction business, and we wish you good luck in your future construction endeavours.