It’s National Entrepreneurship month in the U.S. Hats off to all the women and men who have turned their dreams into viable businesses! That includes many construction companies. In fact construction is one of the top three most popular industries for startups, according to a recent Sage survey.
Today construction is booming, making it even more attractive for would-be entrepreneurs. But running a construction business isn’t as easy as picking up a hammer. It’s a rewarding yet tough business with tight margins. Here are just a few things to think about when starting a construction company and to revisit often once your business is up and running:
Find a market niche and fill it
Research your local area to determine which construction specialties are in demand but have only a few practitioners. Choose the market niche of greatest interest to you, then examine competing businesses to learn how you can improve on them in some important way.
Create a clear vision statement for your business
You can’t be great at everything, so learning your strengths, communicating them clearly to the world, and staying focused is critical to your success. A well-defined vision statement will help you make day-to-day business decisions and give you credibility with prospects and customers. Review this statement annually, at least, to see if it still tells your story and revise if necessary.
Stay up to date to stay ahead
Learn as much as you can about your portion of the industry. Talk to your suppliers and visit the manufacturers of the products you install. Keep abreast of your market, tools, and products. Find out which new products can improve your production efficiency. Read trade journals, scan social sites, and attend industry group meetings.
Guarantee your work
Guaranteeing your work helps assure your prospective clients of your commitment to quality. This in turn could encourage prospects to choose to work with you even when you are just starting out. To limit your exposure, however, guarantee your workmanship only, not materials. And because guarantees have significant legal implications, it’s best to consult with an attorney before making this offer.
Of course, you also need to know some key things about financing, licenses, insurance and bonding. You can find more details about these topics in my past blog “Five essentials for starting a construction business.“