Are you interested in starting a construction company, even if you have no money and experience? Do you need a sample construction company business plan template? If YES, then i advice you read on.
In both the developed and developing countries, the demand for construction services is ever on the high. This is due to the increasing demand for buildings and structures meant for various purposes, as well as renovation of existing ones.
If you are handy with tools, you can do more than just keeping your living quarters in good condition. You can consider monetizing your skills and experience by starting your own construction company. This is a good opportunity for you to become your own boss and set your own working hours.
However, even if you are planning to set up a small one, you must bear in mindstarting a construction company requires a lot of groundwork, careful planning, and organization to increase your chances of success. The following are the steps involved in setting up a construction company:
Starting a Construction Company With No Experience / Money
1. Write a business plan
Crafting a business plan for your proposed construction company is very important. It will highlight how your proposal will come to fruition, and it will include the steps you will take in order to achieve this dream. It will also include the time frame, funding, and other inputs that will go into setting up the business. Here is a sample construction company business plan template you can use for FREE.
Remember that you may need to submit a copy of your business plan to third parties if you are planning to apply for debt or equity funds. And your chances of getting the needed funds will depend on how detailed and accurate your business plan is.
After sourcing for the funds needed to start your construction company, you should find a good home base for your construction startup. You will need a large storage space for your tools and equipment, parking space for your vehicles, and office space for your key staff.
For a start, you can consider starting the business from your home (provided there is some space to keep your equipment). But as your business grows, you will need to move to an official site.
3. Learn the rules
One of the most important, yet often overlooked steps to take when starting is a business is learning the rules and regulations that govern the business. So, you will need to find out about the regulations governing the operation of construction companies in your city, state, or country.
You can start by approaching the appropriate agencies and find out about how to register your Business Name, how to obtain your business license, how to obtain your business identification number, and other necessary requirements. Also, you need to find out about the fees for licensure and certification.
In addition, you should approach an attorney or accountant to find out about your tax requirements as well as the documentations you need to keep on file for deductions and in case of an audit. Aside that learning the rules and playing by them will give you rest of mind, it will also make your customers feel more comfortable about hiring your services.
4. Gather and check your equipment
Take an inventory of your tools and equipment. Check each of them to ensure that it is in good working condition. Service any equipment that needs to repair, and replace those that are too old or damaged beyond repair. In addition, you must purchase any items you will need to carry out basic construction tasks, such as saws, carpenters’ levels, drills, bits, and ladders.
5. Hire competent people to work with you
You will need to hire skilled individuals to work with you. However, you must ensure that they are able to deliver high quality work, since the quality of their work can make or break the reputation of your company. Also, you must decide on whether you will hire them permanently or only when you have projects to handle.
You might need to hire sub-contractors whenever you land projects that are too huge for your company to handle alone or that require more expertise and equipment than your company can offer. You must also ensure that these sub-contractors are able to deliver the same quality of work as your company, since your clients will attribute any good or bad results to you.
6. Market your business
This is where the need for a construction marketing plan comes into play. After getting everything set, you can start spreading word about your construction company. Start by talking to family and friends. And utilize all the contacts you may already have in the construction industry. In addition, you should advertise your new construction company in various media outlets that appeal to your potential customers. You can offer discounts to your first few customers as a way to compel prospects to give your business a trial.
Don’t forget that online marketing works magically these days. You can set up a small website that advertises your company and describes your services. But be sure to include your contact details, so that prospects can easily get in touch. You can also advertise on various online channels that appeal to people who might need your services.