| How To Build A Construction Business From Scratch

Posted in Small Business at 5:00 PM by Loftis Consulting

With the global population continuing to expand at a rapid rate, the construction industry is one that shows no signs of slowing down anytime soon. If you have a particular type of entrepreneurial spirit, it may well be time to get started in this industry. Obviously, having some sort of prior knowledge will be a major plus point, but a wealth of material is out there that will make it easier for you to get started.

 

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Do Your Research

Ask yourself whether you are planning to specialize in a particular area of construction or whether your business will be more general. Work out where you will fit into the marketplace and write out a business plan that highlights your ideas for growth. You need to work out whether you will be getting involved in the private sector or mainly bidding for public contracts. Ultimately, getting some advice from inside the industry itself will put you in a much stronger position.

 

Access Financing

Construction is one of those industries in which you need a high amount of startup capital so you are able to purchase all the conveyors and equipment that you need to get up and running. You may well need to access a small business loan if you can’t get the funds together yourself. Before starting any type of business, you need to make sure you undertake detailed financial forecasting so you are able to show potential investors how you plan to make a profit.

 

Licenses, Bonds and Insurance

Construction is the type of industry in which you will need a number of licenses, bonds and insurance to fully protect your business and show that you have made all the necessary health and safety considerations. Obtaining all of this will unlikely be a quick process, but you will need to jump through these hoops in order to get up and running in the first place.

 

Finding and Hiring Labor

Your business will be built around a number of highly skilled employees which you can source from four different areas – subcontractors, hired employees, labor brokers or independent contractors. The quality of your employees can ultimately make or break your business so make sure you conduct a thorough and rigorous hiring process.

 

Develop a Health and Safety Plan

More so than pretty much every other type of business, you will need to have a robust health and safety plan in place to protect all of your employees. There are plenty of resources available online that will help you. Remember that health and safety has to be at the centre of a successful construction company or you can never hope to succeed.

 

Market Your Business

Once your company is up and running, it is time to make sure you get your name out there. Establish your target market and the best ways you can actually contact them directly. Focus on both traditional and online marketing techniques. Establish a strong brand for your business that is centered around reliability and quality.

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