7 Tips On Starting A Construction Business Successfully
One of the top industry startups out there is construction. The only problem is that it’s also the industry with some of the highest rates of failure within the first five years.
In fact, over 63% of construction businesses just don’t make it to that five-year mark at all.
Whether it’s a lack of knowledge, a lack of correct software or a lack of money, your business doesn’t have to be one of the ones that fail.
With this in mind, I’ve put together seven clear steps to successfully ensure that your construction business is not one that is left for dust – pun intended!
Let’s dive in!
1. Know Your Market
You can’t become a successful construction company unless you have customers who will need your service.
If your local area is already overrun with companies doing the same thing as you, you’re going to struggle to get your business off the ground entirely.
You’ll also struggle to get a foothold in the industry entirely and your dreams will crash before they can fly. So, start off with market research.
You need to know who the competition is and also understand your customer base, too.
2. Make A Plan
Your business plan is going to get your business from A to B and back again so you need to ensure that you have a good understanding of the local market, your goals and the likelihood to succeed.
Include your plans for good construction software, financial planning and how you plan to hire.
You should also include the services that you intend to provide, and what jobs you’ll bid on.
3. Get Registered
If you have a plan together, you can better understand why you need your business to be a legal entity.
Once you are registered, you can start to provide liability protection and tax benefits. It doesn’t take long to do this, but you’ll be hard-pressed to find work without it.
4. Licenses & Permits
A big part of being in construction is having the right permits to do the job.
You may need licenses to operate legally so apply for these early.
5. Get Insured
Your business is a dangerous one, no matter how safely you work. You need top-notch construction site management skills to be really safe.
Insurance isn’t just about you and your employees, but also those walking by your construction site!
General and professional liability insurances are an absolute non-negotiable item.
6. Get Funded
How are you planning to get this business of yours off the ground? You need money to finance it.
Whether you are using your own savings or pouring your own personal cash in, you need to speak to the bank to see what grants are open to you.
Get to know how to get it off the ground that way.
7. Grow It Well
Lastly, you need to keep on top of your customers, their loyalty and your reputation.
You need to aim to walk away from every client and project on the best possible terms.
Growth includes automating your processes and letting your software do the talking!
Drop your thoughts in the comment section. 🙂