Starting your own construction business can be a great way to give yourself more freedom, make more money and control your own destiny, but it’s fair to say that it won’t be easy. The construction industry can be lucrative, but there are lots of rules and regulations you will need to follow and lots of competition you’ll have to fight off.
If you’re still determined to go ahead with your construction company startup idea, here are some tips that will help you get off on the right track:
Don’t Do It Alone
When you’re starting out, it makes sense to talk to people who have done what you’re trying to do successfully. Accessing construction industry mentors through places like the Small Business Development Center will allow you to pick the brains of construction success stories and work out what you really need to do to be successful in your own right.
Create a Solid Business Plan
It’s almost impossible to break into the construction industry without some kind of external finance, which means you should take the time to create a rock solid business plan that will impress investors and help you to access the credit you need to get your business off the ground.
Get the Right Permits and Licenses in Place
If you want to ensure that your startup and your clients are protected from the off, you will need to ensure that you have all of the permits and licenses that a construction company needs to operate. This will include things like a business license, the relevant tradesperson licenses, construction insurance and surety bonds. The first three are pretty self-evident, but if you want to know more about surety bonds and how they can protect all involved in your business, click here for more information, and don’t be tempted to start any work until you have all of these things in place.
Study the Construction Industry’s Regulations
If you want to ensure that your startup doesn’t run into any legal problems or do work that is unsafe and which could tarnish your reputation before you even get started, you will need to read all of the relevant construction industry regulations, including the regulations on energy efficiency and employee safety. This won’t be easy because the construction industry is very heavily regulated, but it is vitally important.
Create a Health and Safety Plan
Construction sites can be dangerous places, so it is only natural that you will want to develop a strong health and safety plan for your staff. In order to do this, you will need to think about and assess any possible hazards, pout in place rules and regulations to keep staff out of harm’s way, and most importantly enforce the rules you put in place. Click here if you want to find out more about your occupational health and safety responsibilities.
Use Agencies and Rental Companies
To keep costs low when you’re starting out, it makes sense to use labor brokers, employment agencies and subcontractors to carry out the bulk of the work you won’t be doing yourself. It also makes sense to hire expensive pieces of equipment rather than buying them, if they will only occasionally be used.
Have you successfully started a construction company? Do you have any wisdom to impart?