Starting your own construction business isn’t as simple a set up as many other business ideas. The nature of the work, the resources required and the legalities and other necessary paperwork surrounding the industry mean you cannot rush into a construction start-up.
Of course, a new business in any industry requires careful structure and planning ahead of launch, but it’s fair to say a new construction venture demands more attention than many others. Here are the basics of getting starting correctly in the sector.
A business plan
Any new business start-up begins with a detailed business plan. A construction-based business plan should be no different, outlining your goals for the business and your expectations at every stage of the start-up lifecycle. A thorough plan for the industry should:
- Lay out your initial goals for the business
- Address matters relating to financing
- Establish the sort of work you plan to do and the team size and resources required to carry it out
- Detail growth plans and ambitions for the next few years
Construction is not a cheap industry to get into. You need the team, equipment, tools and vehicles to get the job done, all of which require significant outlay. Not only that, but you’ll also need to establish a budget for advertising and marketing spend in order to get your name out there, as well as cover off fundamentals such as legal processes and insurance.
This will likely mean you have to apply for finance in order to secure the necessary funds for all those requirements. Make sure you apply for this funding early on in the process.
A construction business can start in your home, but eventually you will want to create a more legitimate base by buying or renting a dedicated space.
If you can run things from your home to start off with, that’s more than fine. If you need to create an office away from home immediately, you’ll need to incorporate it into your financing plans.
Legalities, tax and insurance
There’s plenty of “boring stuff” attached to entering the construction market properly, but it’s incredibly important to ensure you have all your ducks in order in relation to legal, tax and insurance matters.
Construction is an inherently dangerous line of work, thus it comes with a plethora of certifications, regulations, licences, permits and insurance requirements to adhere to – all of which need to be accounted for before your first project begins.
The tools for the job
A workman is only as good as his tools, and the quality of your equipment is not something you’ll want to skimp on as you try to make an initial impression in the market. Whether that’s securing an affordable JCB lease deal or picking out the right drill bit sets, the quality of your gear from top to bottom should not be something you ignore.
With around a third of a million construction firms currently operating in the UK, entering a highly competitive construction industry without full preparation is an accident waiting to happen. However, treat your start up with the respect it deserves, and you can enjoy a slice of an ever relevant, twelve figure industry.