7 Things You Should Think About When Starting A Construction Company

Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. There are things to know when starting any company, but a construction company has its own unique set of considerations. The following contributed post is entitled, 7 Things You Should Think About When Starting A Construction Company.

* * *

Are you handy with tools? Using your skills to run a construction business can be a decent source of income that allows you to sharpen your entrepreneurial skills. Although you may start small, you need proper planning and organization to improve your success chances. Like any other business, a construction company should follow basic guidelines and strategies to attract more clients. Here are a few things you should keep in mind if you want to start your construction company:

Pixabay – CC0 License

Research your local market

The first question you should answer is whether a construction company is viable in your location. The construction industry is nowadays overcrowded, and you want to ensure that you won’t shrink due to competition from more established companies.

Start with thorough market research. Find out the number of construction companies within your locality. Accordingly, determine what is missing and the price points that will make you more competitive and appealing.

Consider safety and health requirements

The construction industry is one of the most regulated in terms of health and safety requirements. This is due to many injuries recorded in worksites. Therefore, you will want to ensure you meet all the required health and safety best practices. Invest in essential safety equipment and training for your employees if you plan to have some. Alternatively, you can work with independent contractors who already have safety equipment.

Estimate prices

Getting your funding in order is a vital step for any startup. And to do this right, you need to estimate prices and draw a budget. Therefore, make sure you understand overhead costs, direct labor costs, and material costs.

For starters, you may need the following estimations:

● Buildings: residential or non-residential premises to work as your warehouse. You can consider a Dumpster Container Rental for this aspect.
● Infrastructure: these are heavy engineering projects you can work on. You need to determine the kind of projects you will work on to know the types of equipment you need.
● You should also factor in other costs such as wages

Understand your tax and insurance obligations

Get an expert to take you through all the tax and insurance obligations. This will make your work more manageable and help you avoid unnecessary qualms with authorities.

Network with suppliers

You need a good network of suppliers and contractors for a successful construction company. These are the [people you will rely on when you have a project that you cannot complete by yourself. You also need a healthy relationship with industry bigwigs you can learn from.

Write a business plan

After everything is in order, you need a business plan to guide you through starting the company.

Register your business

The last step is to have a working permit by registering your company.

Conclusion

Starting a successful construction business is not a walk in the park. However, most people who have been there know how rewarding the job can get. You need a clear plan and commitment to find ways to make your company work. The greatest challenge is to lay a firm foundation and growth strategies.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.