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Published On: Tue, Nov 6th, 2018

How to Start a Construction Business

Launching any new business is always going to be daunting, but the rewards can be high, and the successes can be very liberating and fulfilling. Starting a construction business requires a whole new level of detail, and the first thing that you need to learn is the necessity of not cutting corners. The planning process is going to be essential, and any corners that you cut can easily come back to bite you. Whether you’re planning on becoming a local contractor or filling a gap in a specific niche, there are many factors to consider. If you’re in the planning stages or you’re submitting your business plan for approval, below are some tips that will ease the launch of your construction business.

What Kind of Construction Business Will You Be?

There are three main construction business types, and you’re going to need to clarify which one best suits your business model. These are:

  • Small renovation contractor: These are focused primarily on home or office renovations, although they may also work on small-scale commercial jobs. The benefit of being a small renovation contractor is that you will most likely not need a dedicated office. Ideal for those starting out, small renovation contract work can often lead to becoming a general contractor.
  • General contractor: These are the next level of construction businesses, and undertake larger jobs with a high level of specialisation. Working in both the private and commercial sector, general contractors benefit from a higher number of revenue streams.
  • Owner-builders: Although these are not technically classed as construction companies, they should be considered to be in the same sector. These types of business focus on home-building property that can be sold or rented to private buyers. Despite the differences involved, the majority of owner-building companies require a construction manager and work primarily in the same sector as both general and small renovation contractors.

Create your business plan

Once you have decided on the type of construction company that you’d like to become, then you will need to create your business plan. This is indispensable, and if you’re hoping to set up a business bank account, then your bank will require you to have committed research to this plan. Your business plan should cover costs, estimates and a significant amount of market research. Assess your aims and objectives, and you will have a much clearer idea of how to turn your construction business idea into a very viable venture.

Establishing your construction company

One of the most important factors to consider when launching your construction business is that your company is not going to be a single entity. The chances are high that you are going to offer a wide variety of services, and you will need to establish yourself in the niche area that you concentrate on. You will need to assess what you can offer, and this will come down to the basic resources at your disposal such as business transport. Even decisions like whether to opt for diesel, electric and petrol vans can have long-lasting effects on the viability of your long-term growth, so take time to research before committing to any element of your business venture.

Although these basic starting points will help to clarify your goals, there are numerous additional considerations to make. From establishing company rules and regulations to ensuring that your health and safety regulations are up to industry standard, launching a construction business can entail a lot of work. However, it is also a sector with the potential for rapid and strong growth. If you’re considering starting your own construction business then having a clearer idea of your end goals will make it much more likely that you will succeed.

Author: Carol Trehearn

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

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