At a point in your career, you may decide that it is time to quit working for someone else and start your own business enterprise. This could be a franchise, store or company completely owned by you. While it is an exciting period due to the new journey ahead of you, it is also a challenging one because you’re basically going into uncharted territory. There are statutory requirements that must be met as well as difficult decisions to be made not to mention the risks that come with starting anything new. If you’re inclined towards the construction sector and you’re thinking of starting a construction company, this is what you’re going to need
Thorough Feasibility and Viability Studies
As you can imagine, the construction industry has a lot of players due to the demand for construction companies. As a result, it is important for you to study the landscape in your local environment before starting your construction company. Take into account indices like population, demand, the new for new buildings, the level of saturation within the industry and the necessary trade unions or bodies that you need to join to be accepted as a part of the construction community. These studies are important because you need to know what you’re getting into and how best to start your journey.
A Strong Business Plan
Starting a construction company requires money, personnel and equipment and you might not have all of these things at the onset. However, a strong business plan is the first step in creating an organizational template that contains the structure, staff size, cost implications and plans that will show the direction in which your company is going.
License, Bonds and Insurance
You will need to obtain the statutory licenses required to operate legally within the provisions of the law as a business entity in the construction industry. In addition to this, you need to get the necessary insurance to protect business assets and personal liabilities as well as get insured against work-related damages or injuries. Construction bonds are also necessary especially if you want to take on big projects.
Quite frankly, this is one of the most important things you need to start your construction company. You need to get tools, equipment, rent or lease buildings, pay bills and probably do some advertising. If you haven’t got a stack of money you’re banking on, it is ideal to start sourcing for funds and applying for finance early on.
Build a Network with Other Industry Participants
You will need to have a good relationship with other contractors, suppliers and other players in the industry to give you a good chance of getting jobs and effectively completing them. Other contractors can refer you for projects and suppliers will help you finish jobs before deadlines whenever they can.
So if you’re thinking about starting a construction company, this is what you’re going to need.