Starting a Construction Business

OlufisayoAugust 5, 20140875 views

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Starting a construction company can be hard work.

You need to know the right people at the right time. What is more, you are going to need some serious financial backing. This is to ensure that your business can remain viable and profitable. After all, you cannot stop a company if you don’t have an investor.

There are some major considerations that you need to think about when you are about to set up your construction company.

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Overview

The world of construction saw a steep decrease in popularity following the economic crisis. The impact on the construction industry was severe. Many people were concerned about the lack of building and construction works that were taking place. Government incentives have seen the steady rise of construction works taking place once again. With that in mind, now is the perfect time to be considering planning the set up of your company.

What You Need to Do

Financial backing is a must. Firstly, you must determine where you are going to obtain your finance. This could be from the bank or your savings. If you are obtaining a business loan, you are going to need a business plan. Detailing your business aims and objectives is critical. If you do not, you may not secure your loan. If you have the finances available, you are ready to go.

You will need to purchase a great deal of equipment. Some basics include scaffolding, a bucket truck, a backhoe, backhoe attachments, and raw materials. Once you have purchased your essential kit, you will need to devise a price list.

Developing a price list is critical. Your clients will want a fixed price. This enables them to budget for their work. You need to know all details of the process. This is so that you can understand your labour needs. This includes labour, materials, overheads and profit. Do not price yourself too low. However, you need to be realistic so that people use your services again and again.

Contract

Drawing up contracts for you and your clients is critical. If you do not, you could face yourself in the less than enviable position of not getting paid. You could also find yourself doing extra work for free. A contract lets everyone know where they stand.

Insurance

If you are considering taking on employees, you are going to need to ensure that you have all the appropriate insurance in place. Public liability and so forth is a must. In the event of an accident, you need to make sure that you are covered. This includes protecting your employees. While insurance can seem like an unnecessary expense, it is imperative that you take out the appropriate policies. If you do not, you could face losing your business before it has had the chance to take off.

Compliance

There are many health and safety laws that you need to be compliant within the construction industry. Book yourself onto the relevant NEBOSH and IOSH courses so that you are aware of the issues. The construction industry is heavily regulated, so you will want to make sure that you are fully compliant. The ramifications of not doing so could severe.

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