5 things to consider before starting your own construction business

By
Real Estate Agent with Real State Company

Construction companies have been increasing in recent years throughout the world. It is generating a powerful space of opportunities for entrepreneurs, but where to start? In this post, we explain it all to you.

Starting a business in the construction industry is not an easy task, but fortunately, it is far from impossible. Actually, it's about having the right tools: knowing them and applying them correctly.

Therefore, you should be clear about these 5 basic things to consider before starting your own construction business and getting to work.

1. Be clear about your business plan

The business plan is the key to the success of any venture. Especially in the construction sector, where the cost and profit margins are high, it is essential to be clear.

If you are not clear about your goals, how you want to achieve them and how long, setting up your business will be impossible.

Therefore, the first thing you have to do is that: make sure you know what you want and how you want it.

2. Take an inventory

As part of the action plan, but more specifically, you should take inventory of all the machinery and materials you need. You can also project, taking into account the business plan, what new things you can acquire along the way.

Keep in mind that starting a construction business requires a different amount of machinery and raw materials than other types of enterprises require. Do not forget to have that very clear and evaluate it before starting the business.

3. Find out financing options

Perhaps one of the things that stop you the most when setting up your own business in the construction sector is not having enough capital. You may think you can never reach it, but it is not so.

There are many ways to get financing for your business. But research is essential, to get the best benefits.

Ask in your bank, and in all that you can. Also, check if there are no government plans designed for entrepreneurs. Ask for accounting advice and talk to people who have already started their own business.

Information is the best way to walk on land and have better opportunities.

4. Check with your national and local government to know the regulations of the companies

This point is very important to open any business. Approach a state agency and find out what kind of regulations apply when starting a business in the construction sector.

Knowing what paperwork you need and how to acquire it is very important. How to apply for a business license, register your business name and pay the fees for licensing and certification.

If you don't start your business with things well done and in rules, you can have serious problems in the future. Therefore, it is always better to take the necessary time before starting but do it well.

5. Promote your business

Especially if you are going to start your own brand, it is very important that you use all the tools at your disposal to publicize. However, you can always hire tools. For example, you might need a spider lift hire if you don’t have one – that can help you reduce your investment. 

Do not stay with your family and friends. They will help you, but it's not all. Take care of the image, promote yourself and create an expectation.

Getting a market that follows you even before starting your business would be the best thing that can happen to you to start selling from day 1.

Consider the following things even before you do anything to start your business.

Market study

Before starting a company, every person must carry out a market study, identifying the demand, the competences and how you can position your company in front of your competitors.

Construction business opportunities

Due to the nature of the work, construction companies have a number of services to offer to the client, where we will not only focus on the construction of houses, design, and budget. We can also open new horizons and offer more optimized services like building bridges, roads, building calculations, design and planning. In short, with good equipment, you can achieve great things.

The work team in the construction business

The collaborators in the construction business must be qualified people so that they can deal with the various services that we are going to offer to future clients. Apart from having engineers, architects, calculators, we must have our team of workers, such as masons, carpenters. In short, have a staff that can be organized to work on several projects at the same time and that they have experience in their work.

The clients of a construction company

It is always good to have an idea of the clients that we want to offer our services so that the company can flow in the right way. In general, people are going to focus on people who want to build their houses, buildings, commercial works, reforms and other types of services.

An important part is a state since we must think big and be able to constitute the company as a supplier of the state. We must establish all legal documents so that we can participate in the different tenders launched by the Government and thus have more opportunity to market.

Prices of a construction business

For a company to succeed, it does not necessarily have to have its price for the land or the best in the market, but many factors must be considered, to establish an adequate and fair price. Here are some questions that we must answer:

Consider the prices of your competitors

  • What are the prices currently charged for the services you will offer?

  • What are the total costs of running your business?

  • What is the minimum profit your business should generate?

  • When setting prices, you should make sure you consider the cost of labor and its overhead costs. In the end, the fair or adequate price is what the customer is willing to pay.

Services that can be offered

Here is an idea of the services you can offer in your construction company, in case you don't have an idea;

  • Design and construction of houses.

  • Construction and maintenance of wastewater and all its components.

  • Structural works, such as the restoration of columns, pillars, walls.

  • Installation of plumbing, heating and air conditioning.

  • Rehabilitation of homes, offices, shops, houses and all kinds of buildings

  • Paving floors in marble, wood, mosaics, stones, majolica.

  • Construction and maintenance of sports facilities, multidisciplinary facilities.

  • Demolitions, excavations, earthworks.

  • Painting and wallpapers

Here’s more information on things you need to do before starting a construction business.

Conclusion

Thanks to the many media that exist today, we can broadcast in any way possible, whether on Radio, TV or the Internet. One of the most used tools even when it comes to attracting new clients is the creation of an institutional web page, as well as in the different social networks. This helps you in displaying a portfolio of the various works they have done.

 

 

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Rainmaker
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Alex Hales very valuable list of tips to consider before starting a construction business.

Jan 13, 2020 03:24 PM #1
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Alex Hales

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