What can you expect when starting your own construction company? If you're reading this, chances are you already have the experience to put into it, and that's just what is needed.
It would help if you were confident in your ability to deliver any contract that may come your way. With the right amount of confidence, foresight and responsibility, you'll soon build up a successful business capable of hiring staff, buying new equipment and generally expanding for even more work.
So you've decided on exactly what kind of construction company to start; now all that remains is putting together an idea of how much it's going to cost, where should the company be located (plot/premises) & how are you going to finance it.
7 Steps To Start Your Own Construction Company
We've all heard about the start up costs of a new business, and most likely, your construction company is no exception. Even if you're starting from scratch, including building your own office (which we assume for this article), there will be various expenses such as stationery, transport & advertising. So how much can you expect to pay out initially? Well, that's difficult to say as it varies per company and situation.
Where the construction company will begin operating is another essential factor that needs some careful consideration. Location plays a significant part in the success of a company. You want to attract as much business as possible, and that means you need a good location with easy access from surrounding roads, parking spaces & public transport links. In addition, you should also consider if there are local environmental considerations such as noise levels etc., as this will affect your commercial success.
As previously mentioned, start up costs for a construction company can reach up into the tens of thousands, quite often even more. There are various ways to finance your business when starting, ranging from well-known sources like banks & building societies to credit unions. Whatever option you choose, it's always better not having enough rather than too much available cash, which could result in you going out of business for no other reason than too much capital.
Depending on the size of the construction company you're starting, staff can be a high cost if you're not careful. Paying salaries is one of the most significant expenses for any construction business. Still, there are ways to get around this, such as hiring labour from recruitment agencies or utilising your team where possible by using external resources. Don't forget about training and development either, which is another aspect much neglected at their peril.
When starting a new construction company, some legal considerations are necessary before opening day, particularly with local council & environmental authorities that will need dealing with accordingly & sooner rather than later! If you're unsure who exactly needs what, it's always best to contact the local authority and survey your potential location first.
Before actually starting your own construction company, you're going to need a few licenses and permits from various government agencies. These apply both to your operation, and the equipment you'll be using & can vary depending on the country, state or county, so always check first before getting started. Remember to visit Achilles Building Confidence for more information on their accreditation.
Advertising & marketing is a key component for any successful company and the construction industry is no different. Whether it's through word of mouth or advertising in trade journals, you need to get your name out there as soon as possible. Don't just think about local advertising either as you want everybody interested in what your company provides to hear about you from as many sources as possible; again, this ties back into the start-up costs for a construction business which can be considerable.
Start by thinking about how much money is available for marketing versus how much revenue must come in before deciding how to market. Once established, you can then rely on repeat business from satisfied clients over a sustained period which will help grow the company exponentially.
So there you have it. Before starting a construction business, see to it that you have these 7 steps in place. It's very easy to become overwhelmed when starting up your own company, which can often fail within the first year.
If this happens, then, unfortunately, all that hard work and resources put into setting up your business will be wasted. So hopefully, now you've got an idea of what is needed when starting your own construction company.