Many people daydream about owning their own business and calling the shots. Construction workers are no different in that respect. Striking out on your own may feel exciting and daunting rolled into one, but it is possible to form a successful construction business.
With the right planning, your business can be a profitable one. Here are some tips to help you set up a successful construction business.
Craft a solid business plan
Before you can begin trading you will need to make a solid business plan. Use this to outline your goals at different increments such as for the first year, five years in and then ten years. By having a plan you can make business decisions that will help you meet those goals.
Remember to include sections for costings, equipment maintenance and staffing. Having an accurate estimate of costs, investors or banks will be able to judge whether you are worth their investment.
Understand your market
Once you have your business plan you can move on to looking at the current market. Take some time to research existing companies in your planned trading area. You may find that it is a saturated market but targeting customers 5 miles further down the road may be more successful.
Remember to look at the type of services being offered as well. There might be an abundance of bricklayers, for example, so offering roofing services might work in your favour.
Secure licenses and insurance
Legally, UK construction workers are able to work without having to demonstrate a minimum level of competence. However, being able to demonstrate qualifications and achievements will go far when it comes to attracting clientele. If you are aiming for larger projects, workers on a construction site must be CSCS registered.
If you are setting up a limited company or LLP, you will need to register with Companies House. This is a requirement for all businesses regardless of industry.
Insurance is essential for construction businesses. The right policy helps to protect yourself as well as the public from any accidents, theft or unforeseen circumstances. It is definitely worth the investment.
Invest in the best equipment and labour
Having the best equipment is a good way to set yourself apart from the competition. Being able to get the job done to a higher standard and quicker will help drive customers your way. Take your time to compare different products. Some tools you will use daily such as impact wrenches, so it is important to get models that last a long time and don’t need replacing often.
If you do decide to branch out and take on staff, you can afford to be picky. Your staff represent your business, so you want to make sure they do it well. It is also worth thinking about the team dynamic. Construction jobs whatever the size involve crews being together for long periods so they will all need to mesh well.
Related Content