There is no denying that the construction industry is once again experiencing growth! It seems that we’ve got over the worst of our economic woes and are enjoying a growing economy. Without the construction industry, nothing would ever get built. It’s a crucial industry that will remain regardless of trading conditions.
Of course, it makes sense to run a company in such an industry when people are spending money! The good news is more construction projects are getting undertaken. There will soon be a point where demand outstrips supply!
If you’ve wanted to set up a construction business, now is the best time to get started. But, how do you get one up and running? Well, you need the following nine things first:
1. Industry experience.
There’s no point setting up a business if you know nothing about its industry. This applies to construction just like it does with other industries. I recommend that you spend a few years working with construction companies first.
That way, you’ll get first-hand knowledge of industry practices. You can then use that information to your advantage. After all; you don’t want to waste money by doing things wrong!
2. Skills.
Next, you will need to learn how to carry out various tasks. As the owner of a construction business, you should know and be able to carry out all kinds of work yourself.
There will be times where you may need to advise or train your new staff on certain aspects of their jobs. By having the right skills, you can pass on that knowledge to others.
3. Financial backing.
Unless you’ve got a lot of money saved up, you will need some capital investment in your business. I recommend partnering up with an investor. They will take a percentage of your profits in exchange for cash investment.
Let’s face it; you need the cash to set up and grow your business. Your staff and machinery won’t pay for themselves!
4. IT Equipment.
Today’s modern construction companies use computers for a raft of reasons. From emailing customers to viewing architectural drawings online, computers and IT are essential.
You may also need IT equipment to help you manage your staff too. For instance, you may wish to record the hours worked by labourers using kit from Advance Systems. Or you may want to set up a CCTV system viewable over the Internet at your construction sites.
5. Plant machinery.
It’s no secret that heavy plant machines make light work of big jobs on a construction site. From diggers to pipe drilling machines, construction companies use all kinds of equipment.
If you don’t want to buy such items outright, you have the option of hiring them on a contract basis. Regardless, you still need to use plant machinery, whether you own them or not.
6. Employees.
As much as you’d want to do everything yourself and save money, you need to hire people to work with you. Construction is an industry where many people want to start their careers. You’ll have no shortage of candidates to choose from when setting up your business.
Just make sure that you only choose the best ones for the job. You don’t want to end up wasting money on people that are useless at their roles!
7. Vehicles.
Construction companies use plenty of plant machinery as you know. But, they also need to transport themselves and their tools to various sites. They must also have some way of transporting materials like concrete across sites.
You will need to invest in some vehicles suitable for the type of work you wish to offer. From vans to trucks, you’ll need an assortment of vehicles for your company. Again, you can lease them instead of buying them to ease your cash flow.
8. Insurance.
What happens if a member of staff injures themselves at one of your sites? Or what if a client isn’t happy with your work and is threatening to sue you? Those are just two of many scenarios where insurance can cover such issues.
There are various insurance products on the market. Employee and public liability, and professional indemnity cover are essential. You can get other insurance products too, such as ones that offer cover for data theft or loss. This is useful if your IT systems get damaged or stolen, for example.
9. Marketing.
Last, but not least, you’ll need a marketing plan for your new construction business. That way, you can target your audience and start getting new contracts sooner.
