If there’s one industry that’s more or less recession-proof, then it’s construction. The global population’s been on a steady rise, but even without this business the need for housing and other buildings never really diminishes.
If you have enough experience in the industry, then starting your own construction firm could be a brilliant next step in your career. Here are a few essential steps to founding your construction company.
The first big step you have to take is establishing your company mission, values and vision. Take some time to sit down and really think about why you’re entering the construction business. If it’s simply to make yourself a huge amount of money, then you may have to take a step back and reconsider your plans.
Construction companies operate on a very cyclical basis, meaning that profit margins are typically very limited. Early on, you need to determine whether your company will be more focussed on wealth-building, or simply building for others.
If all your projects are for other firms, then you’ll make more money. When it’s for yourself, you’ll have more freedom, passive income and equity in the long run.
The next step in your road to your own construction firm is a big recruitment drive, followed by an assessment of your workforce’s strengths and weaknesses. A lot of small business owners fail to spend enough time managing their employees, and helping them to get the most out of their abilities. The results of this can be catastrophic.
Related: Considerations for Starting Your Construction Company
To avoid this, invest some time into a long-term improvement plan. List all the staff positions at your company, and attach their responsibilities and accountabilities that are needed for a successful job.
As you go along, you may find that you assigned some people to the wrong positions relative to their strengths and weaknesses. There’s no harm in doing some re-shuffling, just make sure it all happens in the very beginning of trade. After this period, things get far more complicated.
Another essential step to success in the construction industry is developing an effective inventory management system. This is an important step for any small business, but neglecting it in construction can be absolutely lethal.
At all times, you need to know what you have, anything that’s out of action and needs to be fixed, and anything you’ll need to purchase in the future. When you first start setting out this system, it may be a good idea to do some budgeting and large equipment purchases.
There’s no end to the pieces of equipment you may need to keep your business running, so start looking at some reputed wholesalers. You can purchase your full body harness from saferight.com.au, for starters.
From screws to massive pieces of machinery, you constantly need to know its condition, maintenance schedule, and value as an asset. Without a strong handle on your inventory, things can fall apart very quickly.
When starting out in construction, make sure you don’t brush over these three steps. Get the right start, and running your construction company could be the most rewarding experience of your life!
