If you’re thinking about setting up a construction business, we imagine you have got some experience in the industry. Or quite possibly, a similar industry. If you don’t, you may want to consider spending a few years working in this complex sector of business. You should also make sure you have the necessary skills to a run a company. You may want to think about taking a few management courses. Or, perhaps you are at that point already. You have experience in construction, and you feel you possess the necessary skills and traits to run a business. What comes next?
Use Your Contacts
When you first think about setting up your construction business, you should speak to your current employer. They might be willing to branch out with another area of their company and you at the helm, in a different geographical location. They might also already be thinking about branching out but with someone else in charge. This can be disheartening and is an unfortunate position to find yourself in. But, rather than wallow, look to your next option.
You might have built up a rapport with your customers and clients. You should ask them if they would be willing to use your services once you set up your own business. By doing this you can take these customers and clients with you when you set up your own company.
Get Funding
Getting funding is almost always the same for every new business. Either you should borrow a business loan from a private company, or you should look to the government for investment in your business. Typically, governments will invest in companies they think have a fair shot at success. You will need to demonstrate how your business can be profitable in a growing market. Lay out a five-year plan at least and show how you intend to keep profits high and costs low. This might involve some form of outsourcing. If you are buying from a private company, beware of interest rates and ensure that you will have the needed money to pay it all back.
Setting Up
The first thing you will need is a home base. This is the place where you will store all your heavy equipment, your machinery and meet with new clients. Essentially, what you’re looking for is a small office with a big parking lot. Typically parking lots are not built to hold heavy machinery and heavy vehicles like dump trucks and diggers. You might need to use some of the funding to modify it with the help of a commercial paving business. As well as this, you should be thinking about security. You need to make sure your premises are protected. Otherwise, you could lose a lot of expense in theft.
Hiring The Employees
When you hire workers, you should again be using contacts you already have. Think about who the best workers are in your industry and be sure to hire them. Never forget that a small skilled workforce is more effective than larger numbers who have less expertise.
Good luck with your new company. We are sure it will be a great success.
