The construction industry offers multiple and varied opportunities for new business ventures, whether on a local or national level and can be especially appealing for small startups. But, if you’re considering setting up a building company, you might be wondering where to begin.
Our guide will provide information on key considerations and steps to help you create a small construction company from scratch.
Why is construction an attractive business option?
Although recent statistics show that there has been a slight decrease in growth over recent months, with factors such as inflation increases the prices of materials, there are still lucrative opportunities for small construction businesses.
As well as the ability to earn a decent salary, with experienced builders able to make up to £50,000, construction offers the opportunity to work with a wider expertly skilled team across a range of diverse projects.
The industry also offers great job satisfaction with the ability to see a project through from design to completion and the chance to And this is also an excellent industry to specialize in as an insurance broker.
You’ll also meet and work with a variety of individuals including clients, other industry professionals and those new to the trade.
Steps to starting a successful construction business
Create a business plan
You’ll need to do some research to identify the best opportunities and areas for starting a construction business. Decide on your niche and lay out your longer-term plans for your company. While it’s good to have future goals, it’s important to focus on the initial aim of getting your business off the ground.
A key aspect of any business is working out how to fund it. Consider your potential costs and overheads including employees, premises, materials, tools and equipment. You might want to investigate business loans to fund the initial outlay. At this stage, it’s also a good idea to look into taking out builders’ insurance.
Other aspects to consider are health and safety training, PPE for workers and any required company vehicles.
Make sure you complete the required legalities such as registering your business and setting up employees on your books if relevant. This will help ensure you pay the correct tax and prevent any unexpected bills down the line.
Once you have everything in place, you’ll need to market your business to prospective customers. Consider the ways in which you’ll do this, whether through a website, social media, local publications or word of mouth.
Once you’ve built up an initial customer base, give clients the opportunity to leave reviews to help develop your reputation.
While it’s good to identify areas of business growth, it’s vital that you build your construction business up gradually so you don’t take on too much in a short time.