Starting a business is no easy task. It takes time, energy, dedication, and an infinite amount of patience.
When that business is a construction company, things may seem even more complicated. There are countless things you need to consider before you start the business—many of these considerations may not have been touched yet.
Luckily, we know a thing or two about construction companies. Check out the following 8 tips that you should keep in mind before starting your construction business.
1. Sign up for Lead Generation Services
As a new construction business, you want to find clients, and you want to do it quickly. Before your company is ready for business, you must have planned out how you’re going to get leads.
A sure-fire way to find these projects is through lead generation services. Here at I AM Builders, we offer that assistance. With clients nationwide, we can do the necessary research in finding potential clients for your new construction business.
Along with leads, you’ll have to be ready for providing estimates on projects. Clients need to have an estimate, so they can pick the right construction company for their project.
The more accurate your estimate is, the better your future will turn out. However, when the opposite is true, you’ll suffer the consequences.
If you overestimate, you may have a hard time winning a bid on a project in a competitive field. Underestimated costs may result in financial hardships for your business and your client.
By letting I AM Builders perform your estimations, you get assurance that you have experienced estimators who can come up with estimations within 1% of the final construction cost. Estimating is one of the most important parts of running a construction company.
2. Get All Your Legal Matters Set Straight (Permits, Certifications, Licenses)
As your construction business is getting ready to start, you want to generate an air of professionalism and organization. To do that, you have to be well-versed with all the regulations and laws that must be followed.
You have to remain prepared all the time with the proper certifications, permits, licenses, and registrations. As all these regulations change by city and state, you must be on top of everything from the start.
Thus, you’ll be well-prepared for any project when it comes.
3. Decide Whether You Want Contractors or Employees
As a soon to be business owner, that means you’re going to be an employer. Who are you going to employ? Do you want full-time staff, contractors, or even pieceworkers?
Each method has different advantages and disadvantages. A full-time staff means you’re always prepared for a job, but it also means you have set salaries which can affect your company’s profit.
Hiring pieceworkers can seem attractive as you only pay for how much work is performed. However, it can be cumbersome to keep up with the hours worked and stay in accordance with the laws directed by the Department of Labor.
Similarly, contract workers can prove beneficial as you only have them on the books when you need them. The downside is relying on getting a good supply of contract workers for each project.
4. Create a Marketing Budget
Running a business necessitates advertising and marketing. You’ll need signs, a logo, a website, and maybe even social media accounts. Furthermore, you’ll likely need to create business cards, brochures, and even physical portfolios.
All that costs money and takes time. This is something that needs to be set straight from the start—ideally with marketing professionals.
5. Pick a Construction Management Software System
When your business finally takes off, you’ll have to use software throughout your projects. Using construction management software allows your business to run smoothly with as little unexpected hiccups as possible. While there may be several options out there, you should take the time to dive into each option.
Without a thorough understanding of the software, you’ll run into headaches down the road.
Take the time to pick the right software for your business, train yourself, and any full-time employees you have.
6. Choose a Business Model That Plays to Your Strengths (Niche Construction to Stand Out)
Thorough business models are key to any successful business. The same is true of construction businesses. For example, maybe your business plan is to target construction projects in real estate development, office buildings, or other.
Your business plan details your goals and includes steps towards achieving those goals. The more thorough your plan the better.
7. Don’t Underestimate the Importance of High-Class Customer Service
While you begin to work on projects, successful completion is not the only thing you need to focus on. You want your clients to have a good experience working with you. With proper customer service skills, you can build a reputation to be proud of.
What’s more, through this high-class customer service, your brand will naturally spread through word of mouth.
Focus on excellent customer service, and you’ll reap the benefits.
8. Network for Brand Awareness to Generate Leads, Find Vendors, Attract Talent, and More!
A successful business is one that has a wide-reaching network. Your construction business must have connections in all the right places for it to flourish.
Open accounts with suppliers and get to know other contractors, as you’ll never know when you need some last-minute help. You should also become familiar with other professionals like building inspectors.
The wider your network, the better off you’ll be. You’ll have more chances to find projects, recruit talent, and much more.
When you start your construction business, be diligent and methodical in all your planning. The more you dig into the weeds of all the construction nuances, the more you’ll find you need to do.
If you want further assistance for your construction business, sign up here to receive a free proposal template with thorough details that can get you started with growing your business.