The UK has seen lots of investment in the construction industry during the last couple of years. As the country looks set to switch to a Labour government soon, it’s looking like the authorities will allocate even more funds during the next decade. So, launching a new firm to capitalise on the situation is a fantastic idea for people with the right skills. Indeed, anyone who’s worked in the construction industry for more than a couple of years could make a killing from the activity. Of course, there are lots of different stumbling blocks, and it’s possible to make mistakes. For that reason, the step by step guide on this page was designed to ensure nobody overlooks important issues. Use it wisely!
Creating a business plan
Before people do anything else, they will have to create a business plan. That is a document that outlines the nature of the company, and how it will make a profit. There are templates online that anyone can use for inspiration. However, there are also specialists that focus their efforts on offering assistance to people in that position. The best strategy will depend on how much entrepreneurs can afford to spend, and how much time they have on their hands. At the very least, all business plans should contain:
- Details of the nature of the operation
- Investment requirements
- Turnover and profit predictions
- A growth plan
It’s always best to stick to the original business plan as much as possible. For that reason, individuals should leave no stone unturned. They should also work hard to ensure their financial projections are as accurate as possible.
Registering the company and seeking investment
Next, entrepreneurs need to get in touch with HMRC to register their businesses. Anyone can do that without assistance for next to nothing. However, there are many long and complicated forms to fill, and so most people ask their accountants to handle the process. There are hundreds of specialists out there who will register businesses for as little as £150. The process only takes a couple of days, and then the owners are free to seek investment.
When it comes to getting the money they require, most entrepreneurs will book an appointment to see their bank manager. Those institutions have become a little hesitant to lend money to people without a proven track record of success during the last few years. However, lots of new business owners manage to get the capital they require. If the bank doesn’t offer enough money, people could:
- Contact private investment firms
- Fund the venture with personal loans
- Ask friends and family for investment
- Consider crowdfunding
Finding suitable contractors
Most construction firms don’t offer permanent employment contracts to their workers. Instead, they hire people who are already self-employed and who have the right skills. So, how do entrepreneurs go about meeting the most suitable specialists? Well, the process isn’t an exact science, and it’s wise to think outside of the box. People who’ve worked in the industry for years should have made lots of useful contacts. It might make sense to get in touch with workers they’ve known for many years and present them with the opportunity. If that fails, business owners could:
- Advertise on specialist online job boards
- Spread the word on social media
- Place adverts in local newspapers
Building an online presence
It’s sensible for all new company bosses to build a strong online presence. That is the case, even though those firms tend to use B2B marketing techniques. It’s still sensible to create a website that showcases the brand and the services it provides. People might also consider opening Facebook, Twitter, and Instagram accounts. As the old saying goes, every little helps, and those platforms could assist anyone to attract new clients. As most entrepreneurs won’t have enough time to manage the process in-house, it makes sense to get in touch with a reputable marketing firm. Explain the nature of the business, and then allow those experts to come up with a promotional plan. Professionals in that industry can:
- Create and launch the company’s website
- Build a social media presence
- Drive relevant traffic using PPC
- Make potential client mailing lists
Just take to multiple firms, and then shop around for the best prices. Most experts are willing to negotiate if it means they beat a quote from their competition.
Winning contracts
When it comes to winning contracts, entrepreneurs will have to work long and hard. It’s impossible to present readers with a straightforward guide because every situation is different. However, all new construction bosses would benefit from:
- Showing the brand in the best light
- Highlighting previous successes and experiences
- Learning how to negotiate
- Undercutting the competition
There are lots of trade shows and exhibitions for companies in the construction world. It’s sensible to make a list of the most suitable events and get in touch with the organisers. Then, take some business cards along and network with other entrepreneurs as much as possible. With a bit of luck, those individuals will remember the business owner’s face, and they will call the specialist whenever they require services of that nature.
Protecting the venture
Construction firms have to spend a lot of money on the right insurance cover every year. Failure to do that could mean the company ends up in court if something goes wrong. It could also mean the operation has to cease trading due to bankruptcy if judges award compensation to an injured party. There are lots of different types of insurance available, but the most important ones include:
- Public Liability
- Employer’s Liability
- Indemnity Insurance
Lots of construction specialists will also purchase insurance for tools because losses and thefts happen all the time. The company could go bust if it has to pay to replace expensive equipment every single week. So, bear that in mind, and ensure the selected insurance package covers all the essentials.
Growing the business
At some point, people who’ve followed the process to the letter will find themselves ready to expand their operation. It’s always sensible to refer to the growth strategy outlined in the original business plan at that stage. However, new information and opportunities might have surfaced. With that in mind, it’s wise to use some common sense. People who are ready to expand their operations might consider:
- Finding more contractors
- Increasing their range of services
- Bidding for larger contracts than before
- Investing in new equipment and machinery
- Increasing their promotional spend
Nothing is wrong with getting in touch with specialist business advisors at that stage. People who make mistakes could ruin their ambitions and send their operations back to square one. So, sometimes the best option is to get some advice and input from an impartial expert. Just search online for reputable professionals with lots of experience in that industry.
Keeping clients happy
It’s vital that all construction bosses work hard to make their customers happy. That often means asking those individuals to complete an appraisal at the end of each job. If there are any issues, it’s the business owner’s duty to put them right. That could mean paying some extra money for workers to attend the site again. It could also mean offering discounts on services the client might purchase in the future. Companies that begin to build a bad reputation will find it hard to turn things around. So, it’s sensible to ensure everyone who uses the services of the brand is 100% satisfied with their experience.
Reporting accurate financial information
At the end of every tax year, bosses have to ensure they submit accurate financial information to HMRC. Failure to do that will mean the company gets into lots of trouble. It could also mean there are some cash flow issues in the future. People who have no experience in bookkeeping should always employ the services of an expert. Accountants don’t charge a lot of money for their services. So, entrepreneurs just need to identify the most suitable professional. In many instances, company bosses can:
- Record and forward financial information using the cloud
- Only meet with the accountant once every couple of months
- Get business advice
There are many automated accounting software packages that individuals could use if they have a basic understanding of the tax system. That would remove the need for an accountant, but it also increases the risk of something going wrong. Weigh all the pros and cons of each option before making any final decisions.
Entrepreneurs who want to start a new construction company should find themselves in a better position after reading this article. Most of the advice applies to businesses in other industries too, and so the information is handy for all ambitious business people. Individuals just need to ensure they cover all the bases and leave no stone unturned. When all’s said and done, launching any new operation will require a lot of hard work. However, becoming a business owner is the best way to secure a stable income for the future. It’s also the best strategy for people who want to improve their family’s quality of life. So, don’t hesitate!
