If you’ve been working in the construction industry for years yourself, you probably have a great foundation of industry knowledge that can position you well as a successful business owner.
However, there are elements of running any business that you only learn once you are in the thick of it.
Below are a few things you should keep in mind as you get your own company up and running.
Have a Business Plan
If you are seeking investors or loans, you will have to have business plan. However, even if you are not looking for outside funding, you should create a plan. It will give you a framework for getting started and help you figure out where your weaknesses are and which aspect of the company you haven’t thought about thoroughly enough.
For example, one thing to consider is what problem are you offering a solution to? What will set you apart from other construction companies? How can you distinguish yourself? You should also think about financing, marketing, projected revenue, what your expenses will be, your sales goals and your business structure among other elements.
Do not disregard your previous experience but do not assume that every element is transferrable to starting your own construction business. For example, if you have a history in real estate or property management you might have a great catalogue of tips for first time property investors, but those will not help you understand how labor laws in the construction sector may impact your business.
Think About Fleet Management
As a construction company, having the right tools for fleet management is critical to your success. In its simplest form, it helps you keep track of what equipment is available for various projects and helps you stay on top of maintenance and repairs. However, the right fleet management software can offer much more sophisticated benefits as well. For example, you can improve your profits with insights driven by real-time visibility on a single platform. This allows you to streamline project delivery so that high-quality projects arrive on time and on budget.
Know Your Regulations
Having the right licenses, safety equipment and permits is vital. These can vary a great deal from place to place, and you might want to work with an attorney to make sure that you have everything you need. In addition, you should have a plan in place for bookkeeping and taxes. An accountant or another financial professional may help you with this aspect. If you are every audited, you want to be prepared.
Every type of company in every industry finds benefit from networking. In construction, this means establishing a relationship with many different professionals within the industry, from vendors to building inspectors to other contractors. You will need to know there are people you can call on if you’re in a pinch. For example, knowing other contractors can be helpful if you need additional help to finish a job on time.
Choosing Your Staff
You might want to hire employees, or you may want to take on independent contractors as needed. There are advantages and disadvantages to both approaches. The former can cost less and offer more flexibility, especially if you live in a place where business tends to be seasonal. You might want to have a mix. In particular, you might want permanent office staff so that vendors and others who work with you regularly are accustomed to dealing with the same people.