Owning a construction business can seem like something that you won’t be able to handle right now, but behind every successful company there’s a story of a spark that got things going; in other words, starting a business is something that unfolds very gradually and naturally. Nonetheless, while owning a construction business is a rewarding experience, you can rest assured that you’re going to have to do a lot of work – everything from figuring out how you’re going to cover the start-up costs to dealing with marketing and promotion is on you. The only way to truly succeed is committing to it and planning ahead!
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Market research comes first
>No matter how brilliant your idea is, without proper marketing research, you are relying on sheer dumb luck, and that is no way of doing business. A construction entrepreneur needs to fully understand their market, and the first question that they need to answer is: “Would it be profitable in my area?” Well, industry publications offer information about market trends with regards to the construction industry in the given area and can tell a concise and valuable story; the U.S. Small Business Administration (SBA) is also a fantastic pool of relevant information. Find similar companies in other areas and learn what construction services they offer, as well as how much they charge.
Come up with a business plan
Without a business plan, you’re not even relying on luck – no matter how talented you are, business is a field that requires a whole lot of planning. By putting a company plan together, you will establish your business goals and procedures – this document is there to help everyone understand all that is involved with starting and running a construction business. Essentially, a business plan should contain sections that give in-detail information with regards to the business structure and management, the services that it will provide, the target market, workforce, competition, etc.
With so many ways of getting financed, construction entrepreneurs might find themselves confused. Essentially, here are the options: get a loan, get crowdfunded, find an investor or pay out of your own pocket.
If you can afford it, self-financing is always the best way to go, but, unfortunately, people usually don’t have enough money on the side for starting an entire construction business. If you know an investor who might be interested in your idea, go for it – the worst that could happen is adding a new contact to your list. Crowdfunding, on the other hand, is an excellent idea if you have an impeccable internet campaign. Finally, getting a loan, be it personal or from a bank, should always be your last stop.
Get an office
A construction business simply cannot be run from home; you will need a property that will provide an office for your administrators, large storage for the necessary tools and equipment, and parking for the construction vehicles.
The admin office should be regular in size and equipped with solid, but not too expensive equipment.
When it comes to the storage space, however, you’ll need something bigger. You’re going to need to store a lot of equipment here, equipment that is really robust, at that. As a rule of thumb, if you can fit a mobile crane into the storage, you’re good to go because they’re the tallest piece of construction equipment.
Similarly, the parking should be able to offer space for all of your construction vehicles, plus additional room for personal vehicles (customers, employees).
This is pretty much it! All that remains now is covering the legal bases, such as getting licensed, bonded and insured, and you are in business! Do your market research, come up with a detailed business plan, find a perfect way to get financed and always be on a lookout for a suitable business HQ.