Despite the ups and downs of the economy, the construction business continues to be highly lucrative and profitable. However, opening a construction company is very different from opening a general store or grocery store. It requires a different approach even though many of the steps are common to other businesses.
Steps to Building a Construction Company
If you want to build a successful construction company, then you need to take the following points:
1. Create a Business Plan
Consider a business plan to be your company’s blueprint. It lays the foundation of the entire business by taking into account various factors like the distribution of the investments, manpower, legal aspects, etc. Most importantly, it firmly establishes the various goals of your business along with their timeframes and financial numbers.
2. Get Business Space
You can’t run a business unless you get a dedicated space for it first. If you don’t have a budget, then you can also pick your home for that. However, this plan can only work if your house has enough storage space for all the tools and equipment that you will need to contain. You may also need to check if the parking space is ample enough for construction vehicles.
3. Set up a Professional Website
Having a strong online presence is extremely important for any business today, and that includes a construction business. One thing that you absolutely need to do for that is to create a premium website. The good news is that there are many website builders on the Internet such as WordPress and Shopify that you can use.
When creating a website for your construction business, you should also think about branding and create a logo accordingly. You can seek inspiration for your construction logo design online and create a high-quality logo using an online tool. You can also select an ideal color palette, list of fonts, etc. to make a cohesive and powerful brand.
4. Understand Taxation
Unless you don’t mind getting audited by the government, you want to appoint an accountant who can complete all the documentation requirements and update the books.
5. Take Care of the Legal Risks
To earn the trust of the people, you need to create a watertight legal plan that covers all aspects viz. compliance with government regulations and standards, following the laws, and obtaining the appropriate certifications.
6. Get the Financing
There are all kinds of things that you will need money for- equipment, vehicles, space, etc. You also have to pay for advertisements, bills, etc. So, make sure that you have enough funds before you actually raise your first bid for a contract. Believe it or not, there are ways to raise funds and start a business even with bad credit. You just need to know where to find the right investors.
7. Find Your Niche
The construction industry is very vast and there is a slew of areas of contracting. So, if you are able to specialize in a particular domain, such as roofing or wall repairing, then it can help you in creating a unique brand. Once you have a brand, it’s easier to sell and also at attractive rates.
In the construction industry, networking plays a huge role. This is because when you know more than a few dependable contractors, then you can call them up to help you finish your projects on time. So, the more connections and contacts you have, the faster you can grow your business.
9. Understand Your Insurance Liabilities
Compared to other businesses, construction involves a copious amount of red tape. For instance, there are all kinds of insurance norms that you have to follow. This is why it’s best to contact an insurance agent and have them list the coverages that you need to get. You should also inquire about insurance for your workers, properties of clients, etc.
10. Be Organized
You have to be organized to run your business successfully. If you will maintain the books properly, then you can keep the cash flow healthy and ensure that your staff gets paid on time.
So, there you have it- 10 basic steps to running a construction company the right way. Follow these, and you are sure to face little resistance in the process. Good luck!
This is where construction timesheets become very important. Although there are software and web apps that you can purchase to make it easier, you can always start with an Excel sheet when you’re just starting.