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A construction business can be a very rewarding and profitable endeavor. Being able to walk past a building and knowing that you have had a hand in building it can give you a real sense of pride. However, there are several important things you need to consider if you are thinking about starting your own company.
Research your competition
Many smaller companies shut down within the first year of business. This is largely due to competing with the big boys in business who take on the bulk of government contracts, as well as having a name and brand that customers rely on.
Research is imperative. Look at the town you live in and find out how many other construction companies are out there. What do they offer customers? What is their pricing plan? Simply visiting their website should give you the information you require.
When you know what you are up against, you are better suited to rival their service. You need to be careful when lowering your prices as you do need to make a profit, so there are other ways you can be competitive without cutting costs. For example, what services can you offer that others can’t? The only corners you want to cut in the construction business are pieces of wood when on a building project, so don’t buy cheaper tools or equipment to keep your prices low.
Protect your business
No matter your planning, you need to protect yourself and the business from harm. You can’t plan for unforeseen events, so take the necessary steps.
You need to protect your business with the proper insurance cover, including public liability should anybody be injured on a building site, and employers liability to cover you should your employees seek compensation against you. Without insurance you are taking a huge risk that could ultimately lead to the closure of your business should anything go wrong.
There are countless licenses and permits involved in the construction basis, and you will need to take out the correct one’s dependent on specific contracts. From scaffolding consent to builders skip permits, make sure you know what you need by speaking to your local government.
There will also be times when you find yourself in a dispute with clients, possibly through no fault of your own. You will need to hire construction solicitors in the event of a legal battle, ensuring your reputation remains intact.
Counting the costs
When it comes to your financial plan, there are several things you need to take into account. From hiring staff, paying wages and purchasing new equipment and supplies for your business, you are liable to pay out a lot of money before turning in a profit. However, the investments are worthwhile, so buying new equipment rather than second-hand, and employing decent staff will improve your productivity.
Unless you are a whizzkid with numbers, it is worth hiring an accountant to keep your financial records straight. This will alleviate some of your stress and give you time to focus on the aspects of your work that you better skilled in.