A construction company is not just one person. It provides a wide range of services and jobs for people in the private and business sectors. You will also agree with me that there are many different types of construction companies out there! We will only talk about starting a construction company in this article, and we will also give a step-by-step guide for someone based in the UK, who has no experience but wants to start a company.
Starting A Construction Company in the UK
Starting a construction business is great, but it can also be very intimidating for people who have never worked in the field before. There are good and bad times when it comes to construction, but there will always be a need for people to work in it.
In what way are you going to start your own construction company?
The first thing we need to do is figure out what it means to be a construction company.
It’s up to you whether you want your construction company to be big and broad or small and focused, but you can do both. Typically, the industry is thought to have three main parts:
- Residential and non-residential buildings are both types of buildings (including institutional and commercial)
- People who work on infrastructure are called “heavy engineers,” “heavy highways,” or “heavy civil,” and it usually includes big public works projects like roads and bridges. Infrastructure also includes things like utilities and water and wastewater systems.
- Industrial: Mills, power plants, refineries, chemical plants, and manufacturing facilities are usually in this category.
Factors to consider:
Here are things you’ll need to consider when choosing the scope and niche of your construction business.Â
What Skills Do You Have, and Which Field Do You Want To Work In?
Begin by doing a SWOT analysis. This is a look at your strengths, weaknesses, opportunities, and threats. Look at where you are now, where you want to go, and how you want to get there.Â
- What trades do you already have skills, experience, and contacts in?
- What does it take to learn a trade?
- Talk to people who work in your field or who work in a field that is related to yours.
Who Are The Most Important People?
Because there is always a need for construction companies, it is a business where there can be a lot of people. A lot of people have been around for a long time. Some of them can do well, and others fade away and don’t work out.
Which Construction Companies Are Currently Operating In Your Area?
Make sure you know what’s going on in your area by talking to your local mayor, the Chamber of Commerce, trade groups, and people in your field.
- It’s important to know the population of your area and how that population is expected to change over the next five to 10 years.
- Is your field getting a lot of attention?
- What trade groups should you join?
For A New Business, Where Are The Best Places To Start?
Starting a construction business is a big decision. You’ll have to decide whether or not you want to make your business more general or if you want to really focus on a single area. Different businesses can make each strategy work for them, but not all can. Sometimes, if a company has an attitude like “no job is too big or small,” they can make it. They can accept any job that comes their way.Â
Even so, your construction business will be more likely to succeed if you pick a niche in which to focus on.Â
Identifying Your Niche
Here are some ideas to help you figure out where your business could fit.
Because if a trend dies, your business could be left behind. Make sure your niche isn’t just following a fad. You want to make sure that you can change your focus when new trends emerge but keep some jobs or specialties outside of your main field.
- Are there any demographic trends that are making your area need more construction?
- If so, does your area have a lot of businesses or industries in it.
- During your work, is there a service that you could specialize in?
Who Are Your Clients?
When you start a business, who will you be marketing to, and who will pay you for your work? Getting to know your customers:
- It could be a development group or the owner of a piece of land you are working on.Â
- Your customer may be the bank or credit union that owns the house and wants to sell it again. If you specialize in remodeling repossessed homes, you may work for them.
- If you specialize in utility systems or public works projects, your customer might be a city or other public body. This is because you work with public bodies.
- In this case, your customer might be a general contractor.
If you want to get business from that customer, ensure your marketing and networking efforts are aimed at them.
How Will You Pay For Your Business?
A construction company is a business that needs a lot of money. You may need to rent or buy heavy equipment or buy a lot of materials at a time. However, a well-written business plan can show your assets and make the case for your new construction company to get money from investors, even from private investors
How Will You Have To Follow The Law, Trade Rules, and Regulations?
Overall, construction is a very regulated business. Keep in mind the code, laws, Occupational Safety and Health Administration practices, insurance requirements, and regulations that you will have to follow when you work at a job site. Here is a list of the things you need to know about the law:
- Use and follow the building codes in your area.
- State governments have different types of construction companies, and each type has different rules and limits that they must follow.
- Safety rules and personal safety equipment
- Bonding, licensing, and insurance requirements, which vary by industry and state, are some of the things you need to do
Where will you open your business?
You need to think about how much space you’ll need for things like equipment, meetings, and office staff. However, you need to figure out how much space you’ll need for your headquarters and shop. You also need to talk to other contractors in your area about properties that might be good for your company. Identify your initial and long-term staffing needs in your business plan, then look for the right space to get you started and give you the chance to grow and change as your business grows.
What tools and other materials will you need to do this job well?
With tools, materials, and equipment, you’ll also need to think about what you have and what you’ll need to rent or buy. If you live in an area where there are equipment and material suppliers, use this time to get to know them. You’ll need their help getting the tools and materials you need for your jobs.
It’s important to think about what you’ll do on your own and what you’ll hire or subcontract for.
List of things to think about:
- As a single person, what kind of work will you be able to do?
- In the field, in management, and in the back office, how many people will you need to work there?
- In this case, who will you hire, and who will you hire to do work for you?
- Depending on how your business grows or what jobs you need to do, how will you need more people and more workers. How will your construction company meet those needs?
Find out what you’ll need for your business plan.
The things we’ve talked about so far show that there are a lot of things you’ll need to think about before you start your business. That’s where having a solid, well-thought-out business plan will be in your favor.
Starting A Construction Company
You can make sure you have a strong foundation for your business by doing research on your market, making a plan for how you’ll run your business, and getting help. There are a lot of things that new construction businesses don’t know about in starting a construction company. This can also help you avoid them. So, how do you start?
#1. Find out about your Local market.
First, you should find out if a construction company is even possible in your area. So, do some market research first, and then you can start. You’ll want to know how many local construction companies already work in your area, what they specialize in, how much they charge, and how well they’re known. With this, you should also have a good idea of who your potential customers are. People who know these things can help them make a better business plan and give them a better chance of winning when they start playing on the field.
#2. Make a business plan.
Then you can start writing a business plan. You should know your local market well before you start. This is one of the most important documents you’ll make when you start a business because it can help you keep your business on track and make it more likely to succeed. Also, lenders will look at this plan when they help you get money, so it’s important to be very detailed in it. Putting together a business plan for a building company, In most business plans, you’ll find the following things:
- How you’ll set up and run the business
- What kind of services you’ll be able to offer
- What kind of jobs you’ll bid on.
- Who you want to reach
- The number of people you’ll have when you start out.
- How you plan to sell yourself
- The estimated cost of starting and running the business at the start.
- How much money you think you’ll make in your first year and other important KPIs
#3.Get your business registered
As soon as you have your business plan together, it’s important that you legally register your business to make it a separate legal entity. This can protect your personal assets and give your business more legal and tax advantages. There are other ways to register your business, like on the federal level. You can get your federal tax ID or Employer Identification Number that way (EIN). To trademark your business name and logo with the United States Patent and Trademark Office, you will also need to fill out this form.
#4. Find the Right Licenses and Permits for the Job
As soon as you’ve set up your business, you’ll need to get your licenses and permits in order. According to your state, where your business is, how big your company is, and what kind of construction you plan to do, you may need to get a license or permit to run your business legally. You may also need to get a permit from the federal government.
#5. Make sure that you have insurance and that you have enough money to cover your debts.
During this time, you should also start thinking about insurance for you and your employees. Because many construction jobs can be dangerous, it’s important to make sure you’re covered in the event that you get hurt. A construction business owner should make sure they fully understand all of the possible risks and liabilities that come with their business before they start it. At the start, even if you aren’t ready to make a full contingency plan, you should at least have a good idea of what your company would look like if something bad were to happen.
#6. Find the Money You Need.
It’s important that you have enough money to start a new business. If you can’t use your own money, you can get money from somewhere else in a lot of different ways. A private lender, a bank loan, a government loan, a credit union, or a government funding program are some of these. Finance isn’t the only thing you should think about. You should also think about how you’re going to get money for projects.
#7. It’s important to keep growing your business.
One of the best ways to stay in business for a long time is to keep your customers happy and build a good reputation. You want to finish each project and each customer on good terms. This is your goal. This is best done by being honest and open. People are more likely to use you again if you are honest and open with them. And even more than that, the more likely they are to recommend you to other people, too. If you do that, you can be set up for a snowball effect of good luck.
Starting A Construction Company With No Experience
Below are the guidelines for startups with no experience, in the starting of a construction company.
#1. Find out what the industry is and what it does.
There are still people in the construction business today, even though the business has been around since people started building the tower of Babel in the early days. One thing is for sure: The construction industry is always changing, and new technology and methods in starting it are being used to make sure that the construction of a company project is done on time and in a safe way.
#2. Find out about the market and see if it’s worth it.
A wide range of people from all over the world work in the construction industry, including people from all walks of life and all levels of government. In starting a construction company, below is the list of people or groups that needs construction work.
- Families
- Corporate organizations
- landowners.
- businessmen and businesswomen
- University campuses
- foreign investors. etc
#3. Decide what kind of business you want to start.
It doesn’t mean that there aren’t any specializations in the construction industry. Most standard construction companies in the world work on all types of construction projects. As a matter of fact, if you are just starting a construction company, it will be in your best interest to choose a niche that you can be known for.
#4. Knowing your competitors.
Knowing your competitors is a piece of vital information you need to know when starting a construction company, even with no experience. Below are some big businesses people do work with who build things all over the world work for these big businesses.
- Julius Berger was one of the most important people in history.
- The name of Laing O’Rourke (UK
- Royal BAM Group (Holland)
- Kiewit says that (US)
- Buildings by Bouygues (France)
- Balfour Beatty is the name of the company (UK)
- Skanska (Sweden) and other companies also do work.
#5. Decide if you want to buy a franchise or start your own business from scratch.
Even though you could buy a franchise from a construction company or even work with a big construction company if you are starting a construction company, even with no experience; these options aren’t the only ones. If you start a business for any reason, you’re likely to get a lot of attention.
#6. Know the Possible Risks and Challenges You’ll Face Before You Start a Business.
Most construction companies, both those that have been around for a long time and those that are just starting up, are at risk from government policies, the global economy, and unexpected natural disasters.
As you are starting your own construction company business, even with no experience, there is another threat that you are likely to face: the arrival of a big construction company in the area where you already have a lot of business.
#7. Choose the Right Legal Person (LLC, C Corp, S Corp)
When you are starting a construction company business with no prior experience, it’s important to choose the right legal entity. This will help you decide how big you want the business to be. In no way is it easy to choose the right legal entity for your business, but if you want to grow it, that might be the case.
#8. Business name
When it comes to naming your construction business, there are no hard and fast rules to keep in mind. Relax and think of a name for your business that will make people want to work for you.
#9. Talk to an Insurance Agent to Find the Best Insurance for You.
The nature of the construction business means that you need to have the right insurance in place. If one of your projects fails or collapses, you will be forced out of business and have to start over. However, you need to set aside money for insurance and talk to an insurance broker to help you choose the best insurance policies for your construction business. If you are starting a construction company without experience, these are some of the basic insurance policies that you should think about getting.
It protects you against all kinds of things that could happen:
- General, Health, Risk, Liability, and Payment Protection Insurance
- People who work are covered by insurance.
- Overhead expenses and disability insurance for business owners and employees are part of a group insurance plan.
#10. Use Trademarks, Copyrights, and Patents to keep your intellectual property safe from other people who want to use them.
The nature of the construction industry doesn’t make it necessary for you to get intellectual property protection when you are starting your own construction company, with no experience.
When it comes to intellectual property protection, though, the only reason you might want to get it is to protect some of your company’s most important documents and maybe even your company logo. Other than that, you can run a successful construction business without having to protect your ideas.
#11. Get The Professional Certification You Need.
There are strict rules in the construction industry to make sure that projects don’t fail. The following are some professional certifications that you or your most important employees need to get before they can work for your company.
- Certified Construction Manager (CCM)
- Gold Seal certification
- National Association of Safety Professionals certifications
- Certified Construction Industry Financial Professional (CCIFP)
#12. Get The Legal Documents You Need to Run Your Business.
The constitution of your country says that anyone who is starting a construction company needs to have the legal documents that are required, even with no experience. If you want to start a construction business in the United States of America, these are some of the basic legal documents that you need to have in place first.
- Certificate of Incorporation and a business permit
- A business plan.
- Agreement on Non-Disclosure and a Memorandum of Agreement (MoU)
- An Apostille and an operating agreement
- Agreement for Employment (offer letters)
- LLc’s must have company bylaws, an insurance policy, and an operating agreement.
#13. Make A Business Plan.
When you have a good business plan in place, you will cut down on the risk and error that comes with starting and running a business. You will be able to run your business with purpose and even precision; you will know what to do at the right time and how to deal with problems and growth.
#14. Prepare a well explained Cost Analysis.
Before you can start your own construction business, there are a lot of things you’ll have to pay for. Important: It is important to say that the location where you start your business will have a big influence how much money you will need to start the business, which means that you should finish your feasibility studies before you start making a budget and looking for money for your business.
#15. Get the Startup Capital You Need.
If you start your construction company on a small scale, you might not need a lot of money to start the business. If you start on a bigger scale, you will need to raise the money to start the business.
#16. Find a Good Place for Your Business to Start.
You should not choose a place for your business without consulting with other people first, though. The truth is that, if you choose the wrong place to pitch your business, you are more than likely going to have a hard time making progress with it.
#17. Hire People to Help You with Your Technical and Manpower Needs, too.
If you decide to start a standard construction company, then you should be ready to buy some of the heavy-duty equipment and machines that are used in the field of construction. Then you’d need to buy concrete mixers, block molding machines, grading machines and a whole lot of other construction tools.
#18. Make a Marketing Plan with a lot of ideas and strategies inside of it.
This means that you must make the most of every chance that comes your way because in the construction industry, your previous work is your main marketing tool. You must do everything you can to make the most of these chances.
#19. Make Sure You Use Iron-clad Competitive Strategies to Make Sure You Win.
It might be hard to compete as a newcomer in the construction industry, especially in a very well-organized market where there are many people. As a construction company, if you are known for building standard and world-class structures, you won’t have a hard time competing in the field.
#20. Think of ways to keep your clients and customers happy.
As a worker in the construction industry, you are expected to meet the standards that have been set by the industry. This means that the least you can do is to meet the industry standards. It’s also important to keep working on your customer service plans so that you can keep them and keep getting construction contracts from them or getting them to refer you to other people.
#21. Plan ways to spread the word about your brand and build a corporate identity.
Creating a strong brand for a construction business means that your projects should be your main spokesperson. This is why we need to make sure that we always build world-class projects.
#22. Make a Suppliers/Distribution Network.
In the case that you run a construction business, it will be in your best interest to connect with and get help from big suppliers of building materials in the area where you work. Building materials aren’t the only thing you don’t need to buy when you start building a project. All you need to do is make a few phone calls, and you’ll get them to the construction sites.
You won’t be able to do this right away. You need to meet and build business relationships with people in the value chain of the construction industry.
#23. Tips for running a construction business well, as written.
You need to be able to get everyone on the same page at all times, no matter what kind of business you run. This is one of the keys that will help you run the business well. If you are the CEO or president of a construction company, it is your job to give the company a good direction to go in.
How do I start my own construction company?
In starting a new construction company, few steps must be taken:
- #1. Find out about your Local market.
- #2. Make a business plan.
- #3.Get your business registered
- #4. Find the Right Licenses and Permits for the Job
- #5. Make sure that you have insurance and that you have enough money to cover your debts.
- #6. Find the Money You Need.
- #7. It’s important to keep growing your business.
Can you be a millionaire in construction?
YES, you can be one. Construction millionaires are made every day. Most of them are millonaires not just because they got an opportunity, but because they found out how to work smart and hard.
What is the hardest trade in construction?
Roofing and demolition are ranked the most demanding trades by both contractors and consumers.
