It’s no secret that the construction industry is experiencing amazing growth. It’s a critical industry that will remain regardless of economic conditions – we’re always going to need the services that construction companies offer. Now is as good a time as any to get started with your construction business if it’s something you’ve been thinking of doing for a while. However, there are a few things you should know that we’re going to outline below. Take a look to make sure you’re prepared:
Having at least a few years experience before starting your own construction company can be valuable. First hand knowledge of industry practices can completely change the way you do business and allow you to avoid some of the pitfalls that come with being a construction business owner. If you try to jump straight in without experience, you will likely make mistakes that could have been easily avoided.
If you’re going to work in this industry, you not only a knowledge of the construction industry and how it works, but a knowledge of business and how to run one, too. Running a successful business is a skill, and not something that should be taken lightly. You will need to have the skills to advise and train staff, choose appropriate vendors to work with, and stay in keeping with what is required of you in terms of tax and accountancy – although you will likely want to hire professionals to stay on top of this for you.
Unless you’ve suddenly had a windfall or you’ve saved a ton of money somehow, partnering up with an investor can be the best way to start your construction business. They will likely ask for a percentage of your profits (or interest) in exchange for a cash investment. Your staff and heavy machinery aren’t going to pay for themselves, so think of how much capital you’ll likely need to get started. You’ll also want to consider your marketing budget and money for quiet months. You’ll need a good plan in place for cash flow to ensure that you are able to continue running when things are slow. Many businesses fail not because nobody is working with them, but because they run out of money.
When it comes to plant machinery, you have the option of hiring equipment rather than buying it outright to see if it’s something you really need or not, whether you’re looking for diggers or pipe drilling machines. Of course you can also look into services like ranger lifting and rigging if you require a one off service or piece of machinery.
It’s more than possible for a staff member to injure themselves on a site, or even a member of the public. Construction is a dangerous industry, so you’ll need insurance cover that will cover every eventuality. You may also want to cover data theft or loss, just in case.
Starting a construction business is something that requires careful thought and consideration. Is it right for you?