The construction market is one of the most lucrative landscapes in any country and continues to grow as companies, governments, and individuals continue to invest in new projects. While other markets constantly rise and fall, there’s always a need for an expert with construction knowledge, whether your team is responsible for building entire homes and office buildings, or just repairing pre-existing buildings.
If you already have some knowledge in this area, and you’re thinking of pursuing new opportunities as an entrepreneur, it’s important to know exactly where you need to begin with your new journey. Even if you have experience in the industry, being a business owner requires a different way of thinking. Here’s your guide to the initial steps of developing your very own venture.
Start with a Solid Business Plan
As tempting as it can often be to dive straight into the creation of a new company, the most important thing you can do is master the planning process. Before you get into creating a construction project plan and schedule you need to create your business plan. Start with a solid business plan to highlight everything you, your employees, and your investors need to know about your path to success.
This document isn’t just there to convince banks and other facilities they should invest in your company, it can also act as an important compass, guiding you towards the right investment decisions in the long term. Make sure you cover all of the important information you might need to guide your operations, including who your target audience is, and who your main competitors are.
Invest in Your Initial Hires
The people you surround yourself with, especially at the very beginning, are going to be the ones that can sink or float your ship. While you should also expect to make a few bad hires simply because that’s an inevitable element of most startups, investing time and money into the initial hires will be well worth it. Think about all the positions you need to hire and what the ideal candidate would possess skills and experience-wise, from here you can create your job postings.
Other Financial Aspects to Consider
It can be stressful to forecast payroll and wonder how you are going to be able to make ends meet when you first startup. Finding ways to cut corners and make your budget leaner are common practices for entrepreneurs but don’t cheap out when it comes to your employees.
While money is not the main motivating factor for everyone, people need to feel like they are getting a favorable ROI working for them. The time, skills, and loyalty are all things you are asking of them, and they need to be compensated at a rate that is in line with the market.
Fostering and Building Trust
Also bear in mind that you truly need to trust these people. These are going to be the hands that make your business run smoothly. Trusting them and fostering two way trust can help you better delegate tasks and down the road potentially hand things off completely.
You won’t want to, but you will need to step away from your business from time to time. Whether it is just a scheduled day off each week or a full-on vacation, there are going to be times when your employees are running the show and it will be your confidence in them that allows you to step away successfully and with as little anxiety as possible.
Consider Your Initial Expenses
Think about the kind of things you’re going to need to purchase to enable your teams and unlock the door to better business potential in the long term. Having fleet tracking software is going to be essential if you’re managing any kind of essential vehicle in your company.
However, you’re also going to need other kinds of technology too, like construction equipment, employee management tools, and even collaboration software. On top of all that, you’ll also need to think about the costs involved with building your brand and marketing your construction business.
Making sure you have a solid idea of how much you’re going to need to spend on your business from day one should mean you can approach people capable of offering finance to your company with a good idea of what kind of loans and support you need.
Know Your Legal and Tax Requirements
You’re likely to encounter a number of legalities and administrative tasks you need to complete along the way. Before you launch your new building company, you’ll need to know what sort of legal requirements are in place for a business like yours.
What kind of permits and licensing do your drivers and construction workers need? It’s also worth considering your tax requirements. Working with an accountant is the best way to minimize your stress in this regard, as a professional will be able to give you a guide to how you can save money on regular expenses.
Facing Seasonal Restrictions
Another legal consideration to be aware of is, that depending on the location and nature of your business, you may have seasonal restrictions that you must adhere to. Some places have things like frozen ground laws that prohibit certain types of work within certain date ranges.
While this may, or may not apply to you, it is still a good idea to be aware of these regulations so that when it comes time to scale and grow your business you are making plans within your bounds.
Study Your Competition
Market research is critical but so is competitive research. You should be as well versed as possible in your competitors so that you can find ways to stand out. Learning how they solicit new business, handle customer grievances, and increase employee retention, are all good things to know. Researching your competition can also help mitigate some potential mistakes.
Performing a thorough competitive analysis might take time but it is time well spent. While it is important to create your own blueprint, knowledge is power. Even something as simple as going online to read the reviews of your competitors can give you some level of insight.
You might take this information and make changes, or you may simply learn it and decide not to act. There is no right or wrong, the only real mistake you can make is totally ignoring the need to be educated on the competition.