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Post-Graduation: Tips for Starting a Construction Business

Man in high-viz jacket and hat looking at construction scaffolding
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Whether you dream of being the biggest general contractor in your region, or you want to start a small, niche construction business- getting into the construction business is a process and comes with some unique challenges you have to overcome, and procedures you have to follow. That said, construction is always growing, which makes it the perfect business to get into.

Below, we will look at what you can do to get into the construction business.

Choose a Niche

There are three main areas you could concentrate on: infrastructure, residential, and commercial.

Infrastructure is the most challenging niche to get into, followed by commercial, and then residential. You probably want to start with a residential construction business before moving onto larger projects in the commercial and infrastructure niches.

Have a Business Plan

Although your passion is in construction, you still have to run the business. Start with a business plan. This offers you a road-map to follow and outlines ways to achieve your business objectives and goals.

A good business plan is also crucial in getting financing. If you cannot come up with a business plan, you can hire an expert to write one for you. Just ensure you are as involved in the process as possible so that it is a true reflection of your business- its goals, and objectives.

Find the Right Suppliers

Suppliers are the lifeline for your business. If you do not find the right one, you might have a hard time completing projects on time or even completing them at all. Finding the right suppliers does not have to be all about getting the materials you need; it may also mean collaborating with businesses that supply the skills and workers you need.

For example, you might need plumbers, architects, or painters to complete your project. On the supply side, you might need electricity and gas suppliers, or even ready mix concrete suppliers so you do not have to incur the labour cost of sourcing for concrete or having it mixed onsite.

Mixit is a good company to check out in this regard. They work with businesses to supply the concrete they need for their projects. They have a handy concrete calculator so you know the exact amount of concrete you will need to complete a project. Their concrete/screed calculator for UK will help you create a better budget for what you need for every project you undertake.

You can view their screed calculator here if you need to measure up a new job. This has been used (and continues to be used) to estimate the amount of concrete needed for commercial and residential projects across many businesses.

Find Financing

Depending on the niche you decide to get into, starting a construction business can be an expensive undertaking. If you find yourself straining, it is a good idea to get financing. You can opt for a traditional loan or even use your own savings.

Since you are a new business, it might be hard to get a business loan so you might have to explore other avenues. These include borrowing from friends and family, peer to peer lending, credit unions, or even using your credit cards as a source of financing.

Find Enough Space

You also need to decide how much space you will need. This includes space for machinery, meetings, and your primary location. Although you can operate out of a pickup truck, you should at least have a small office where you can take meetings and meet new clients.

An office space is also important if you will be working with other businesses because when you do, you will need an adequate base of operations.

Reach Out to Your Customers

It might surprise you to find out who your customers might be. In many cases, it is not the owner of the property who gets in touch with you. You might find yourself working for other companies, a property manager, or even a development group.

It is important to know who pays the cheque for every business, company, or person you would like to work with and get in touch with them directly. For example, if you remodel houses, you might reach out to landlords who run property development companies.

Remember, in this business, word of mouth is very important. Many jobs will come via word of mouth recommendations, so it’s essential that you take care with the work you do. It only takes one disgruntled client to bad mouth you and before long, you have no clients willing to work with you. The construction business is surprisingly small in many respects, and companies tend to know of one another.

Starting a construction business is a lucrative path to follow because the construction industry sees constant growth year after year. If you establish your business well and know who to get in touch with, you will find success much faster.