| Tools of The Trade: The Cost of Starting In Construction

Posted in Small Business at 1:00 PM by Loftis Consulting

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Ask a skilled tradeperson; you’ve probably thought about going it on your own and starting your own construction company, in the past. Of course, this can be a great idea. It would make you into your own boss and give you a lot of freedom. In fact, if you’re successful, you’ll be making a lot more money than you would working a normal job. But, like most business ventures, construction has it’s downsides. The biggest of those is cost.

 

To use large and heavy machinery, you usually need to be trained and qualified to do so. Of course, this is to protect you and others around you. If you don’t know how to use a vehicle, it is very dangerous to try to. Unfortunately, this means that you have to do some work. Figuring out exactly what you need to be compliant can be a hard game. By the time you’ve hired someone to help you, and you’ve acquired all of the documents you need, you’ll have spent a small fortune. Some of these costs can be lessened by hiring staff that already have qualifications.

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Along with legal documents, a builder also needs to have tools. But, tools can be extremely pricey. Getting the best prices on things like tools is very important to your success here, as it could save you loads of money. The best way to get tools is through companies that sell to trade. They will give you the best prices, and it may be free from sales taxes. Websites like http://www.techsouthinc.com can provide you with specialist equipment, at prices that will be reasonable for a new business to pay. All of these costs are unavoidable. Usually, it’s best to buy your tools, instead of renting or leasing them. This may be cheaper at first, but in the years to come, it will become very expensive.

Most construction teams aren’t comprised of one person. This is because a lot of the jobs that you have to do will simply require more than one person. So, you’ll probably need to hire at least one staff member when starting a business like this. But, hiring staff can be very expensive. When it comes to finding them, you have to pay a company to do it for you. And, once you’ve done that, you have to pay the fees involved with hiring them on. At this point, you also have to start paying their salary.  For a new business, all of these outgoing can spell trouble very quickly. Sometimes, it can be best to find staff yourself. But, this can leave you limited to people that you know, or friends of friends. This could make it hard to find people with the right levels of skill.

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Hopefully, this will give you a good idea of what it costs to get started in this industry. This is completely ignoring the money that you have to spend on resources, as well. Usually, you have to pay for building materials out of your own pocket, and then you’ll be paid back at the end. This can present a big challenge for a business.

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  1. […] business, it’s of paramount importance that you or the team you hire, at the very least, are trained and qualified to carry out the advanced level of projects you’ll be offering to clients. You’ve heard of […]

    Pingback by Loftis Consulting Business Blog » Building Your Construction Business From The Ground Up — March 24, 2017 #

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