You might not think it, thanks to all the talk these days about the tech industry. But construction is one of the most entrepreneurial sectors of the economy. According to the Wall Street Journal, construction is one of the hottest startup industries right now. Roughly a quarter of all entrepreneurial activity was in the building sector. And back in 2011, construction startups peaked at 1.7 percent of the monthly total number of businesses in operation.
As we all know, startups are all-too-easily snuffed out. So what do those who are successful in the sector have in common?
They Only Promise What They Can Deliver
At the outset of a project, it is almost impossible to know all of the things that could go wrong. Most construction startups and new contractors tend to be wildly optimistic. So they give a timescale based on a projection that doesn’t take hold ups into account. Unfortunately, snags will occur, and construction will almost always be delayed. This is where things start to go wrong for those who overpromise. When promises aren’t realized, customers become disgruntled. And when they become disgruntled, customers don’t recommend the business to other people. As a result, some startups see their business die before it reaches its first birthday.
The companies that succeed do the opposite of what most startups do. They tend to under promise when they first meet a client, even if that means potentially losing business. But at the end of the project, they overdeliver. And it’s this that drives new business to their company.
They Get Equipped
One of the things that’s going to have the biggest impact on your productivity is your level of preparedness. If you’re not prepared when you start your business, you’ll find yourself endlessly trekking around the trade depot. As a result, you’ll lose time working with your client, and you’ll incur wear and tear costs on your vehicle.
Good contractors are always prepared for whatever it is that they are doing. If they’re installing a new HVAC system, they come equipped with the right drill bore sets. If they’re got a masonry contract, they have mixers ready and operating on day one. And if they’re ripping out a kitchen, they’ll invest in commercial skip bin hire. Having all the right equipment in place helps reassure the client and helps you get your job done quickly.
They Save Their Extra Income
The income of any new startup is notoriously lumpy. Some months you’ll land a couple of big contracts; in others, you’ll get nothing. That’s why, as a contractor, it’s so important to save any income you can, just in case of a rainy day. Great startups in the sector understand this and plan well in advance for such an eventuality. Unprepared startups get caught unawares.
They Define Their Hourly Rates
Sometimes clients will try to extract more value from you than they’re willing to pay for. Often new contractors end up working far longer hours than they had originally intended. And it can sap motivation and energy. That’s why it’s so important that contractors set their hourly wage rate. It makes charging for services much more straightforward. And it helps both parties agree on a cost for services rendered.
This article was provided by ellie jo