If you have experience in the construction world, you might consider launching a new company this year. The global economy is now in a much better state than it has been for the last decade. That means it is the perfect time to take a few risks and see if you can come up trumps. Of course, there are many different issues with which you will have to deal before your company is ready to win big contracts. With that in mind, we’re going to give you some essential tips throughout the course of this article. Hopefully, you will leave us with a better understanding of what the road ahead might involve. You shouldn’t stick to our suggestions religiously though. You still need to use some common sense if you want to create a profitable firm that is going to exist well into the future.
Don’t worry too much if you’ve never run a company before. The processes you need to use are very simple. Indeed, you can outsource most of the hard jobs as you will soon discover. It’s just worth doing a lot of research before you spend any money. At the end of the day, the last thing you want is to discover your idea is not feasible after you’ve emptied your savings accounts.
Come up with a brand name
Brand names are important in the business world, and so you will need to select one that is catchy and memorable. You might think that appropriate naming of a construction company is not a vital. However, that simply isn’t the case. You will have to bid for lots of contracts while your firm is in operation. You stand to get much better results if the clients recognise your name. Spend some time thinking about the goals of your new business and see if you can come up with something that fits the bill.
Find a good accountant
Unless you have qualifications in accounting, you will struggle to deal with the process alone. That is why most business owners look for a decent professional with a good track record. When selecting your accountant, it makes sense to read through reviews and testimonials online. You need someone who knows how to reduce the amount of tax you pay without breaking the law. There are many ways of doing that, and qualified accountants will know them all. Once you have the perfect expert looking after your business, you simply have to send them a list of all your income and outgoings each month. At the end of the year, they will complete your tax return and let you know how much you have to pay.
Even with a reasonable about of cash in the bank, you will still need to seek outside investment to launch a construction company. Firstly, you have to create a business plan. There are lots of free templates and guides online that should help you to get it right. Once you have your plan, you can start to contact possible investors. Before you speak to anyone else, it’s always sensible to visit your bank and ask about getting a business loan. Most high street chains are hesitant to lend to anyone without a track record of success at the current time. That means you probably won’t have any luck with the bank manager. Still, it’s worth a go!
Presuming you are turned down by the bank, you can get in touch with private equity firms. They are companies that provide funding to startups just like yours. In some instances, they will simply give you a payment plan. In others, they might ask for a percentage of your business. Either way, you get the cash you require at the time you need it most.
Buy the best equipment
Now you have some money in the bank; you can afford to purchase some of the construction equipment you’re going to need. Plant Trader and similar sites are the best places to look if you want to make savings. Sometimes new company bosses find that purchasing brand new equipment places too much of a strain on their finances. When it comes to buying tools, you can probably afford to get them from a trade retailer. However, you can reduce your spending again by checking online auction websites. There are also lots of specialist suppliers online who run amazing deals at certain times of the year. You just need to do some research if you want to limit startup costs.
Your construction company is not going to succeed without the right team. Advertising in your local Job Centre is not smart because unemployed people have to apply for unsuitable work to get their benefits. That means you will receive thousands of applications from people with no interest in working for your company. It is much better to use specialist online job boards and word of mouth recommendations. There are always lots of experienced builders around if you know where to look. Just make sure you select workers who are registered as self-employed. You don’t want to deal with paying their tax if you can help it.
Bid for contracts
Now comes the hard part. You must start bidding for building contracts as soon as possible. Before you can do that though, you need to identify the companies handing out those agreements. Just spend some time searching online, and you should find a huge list of development firms in the UK. Send them all an email and see if you can arrange some appointments. Even if they aren’t working on any suitable projects at the moment, it’s still a good idea to introduce yourself.
You should now be in a much better position to launch your construction business without any headaches this year. There is always going to be an element of risk involved, but you can limit the chances of anything going wrong. You just need to take our advice and put it into practice. Who knows? This time next year you could sell the firm for millions. Those who fail to use out tips are probably going to fail miserably.