Why You Should Start a Building Construction Company
If you have been nursing the idea of starting your own building Construction Company before now, you should think about taking the first steps to bring your dream into reality because of the following reasons;
- Multi Million Dollar Business-: Building Construction Company is one of the few business that has the ability to fetch you multi millions of dollars within a few years; am not saying that it is going to be rosy all the way because you may even encounter a rocky start; but with hard work, determination and the networking with the right people, you can build yourself a multi million dollars business.
- Easy Access to Capital-: I mentioned earlier that this business is a very capital intensive one, and requires hundreds or even millions of dollars to set up. But the truth is that financial institutions are very much willing to grant loans to construction companies that wish to expand because they know that a good construction company has a better potential of paying back loans and interests as scheduled. Even if you don’t have the initial capital to start, you can take your business plan to the bank to access a small loan to put up a smaller construction company.
- You are your Own Boss-: Starting your own building Construction Company makes you the business owner, and gives you the ability to exit the proverbial rat race lifestyle. Being a boss though comes with its own challenges and responsibilities; example, you need a good leadership skill and the ability to keep your workers motivated at all times to meet up the company’s goals.
Starting a Building Construction Company – Sample Business Plan Template
Step 1. Write an Explicit Business Plan-: I can’t over emphasize the need to have a well detailed business plan for your business. In the case of a construction company, your business plan should cover every single detail of your business like; the estimate capital you will require to set up the business?
How you will source for the capital? What machines and equipment you will work with? Will you buy them or will you lease from other companies for starters? Which type of building contracts will you handle? How do you intend to advertise your business? Whether the business will be a one man business, or will there be other partners? What will be the role of each partner?
Answers to the above questions will give you a head start in writing a detailed business plan. If you have any issues writing your business plan, you can seek help from a professional and work with the person to develop a business plan. It is important that your business plans should look as professional as possible because you may need to present them in some places; for example you will need to present it to access a loan from the bank
Step 2. Get Trained-: I assume that you have the right training to venture into this line of business; but if you don’t, then it is right to take advanced courses on building technology and other related courses; this business is a sensitive one, and there is need to be as professional as possible, because a simple mistake in a building project can endanger the lives of other people.
Step 3. Obtain the Required Licenses-: You need to get a business permit, contractor’s license and business insurance to run this business; not excluding you Tax Identification Number (TIN). Business insurance is very important; in fact, some States will not allow you run this type of business without an insurance cover. The insurance should be able to cover third parties; it will save you multi millions on liability cost in the future.
Step 4. Get a Site-: You need a place that will serve as your construction company’s site or complex. The space needs to be big enough to contain all the equipments and machineries, including big construction vehicles your company will work with. It should have an office complex attached to it, to contain other departments of the company like the accounting departments; receptionist, legal department and other departments in the company.
Step 5. Buy the Machines Needed-: This is where you make most expenses when setting up a building Construction Company; you will need to purchase machineries like; Excavators, Caterpillars, Earthmoving machine, Loaders, Skid Steer Loaders, Graders, Wheeled Loading Shovels and many others; and they are worth thousands of idea. If you do not have the start up capital to purchase these equipments, you can lease from other companies at a cheaper; but endeavour to purchase your own machineries as soon as you can afford them; they are cheaper in the long run, and you can also make some extra money by leasing them out to people.
Step 6. Employ Construction Workers-: In order to make this work, you need competent hands to work for your company; you will need Building engineers, civil engineers, site engineers and other professionals to work for your company; you can employee them as contract staff, if you don’t have the funds to keep them as full staff for starters.
Step 7. Source For Work-: This is where the need for a construction marketing plan comes into play. Some of the ways to source for works in this industry include:
- Apply for Government contracts, both State and Federal Government contracts.
- Network with other construction companies, they can subcontract some of their excess work loads to your company.
- Attend Real Estate events, meet Realtors and network with them; they may have one of two contracts to sublet to your company.
In conclusion, I have detailed all you need to start your own construction company including ways to source for building contracts.
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