All thanks to the boom in the current construction industry, the future for many upcoming small business entrepreneurs looks bright! According to IBISWorld, the commercial construction companies will reap the benefits of a boost in their business in the coming five years. Besides, the revival in the disposable incomes and the increasing requirement for commercial office space will also impact the demand for retail constructions.
If you are looking forward to starting your construction business, here are eight tips that could help you formulate your strategies better:
First things First!
Before sitting down to work on your business strategy, it is crucial to do the required homework. If your knowledge and ideas regarding the industry and its elements are solid, the chances are that you would be formulating comparatively competitive and result-oriented strategies.
Learn the Tricks of the Trade from the Masters Themselves
Being an entrepreneur does not mean that you have to do it all by yourself! If, at any stage of the initial planning and development process, you feel confused, seek expert advice. These experts are industry professionals with substantial knowledge, proven skills and reputable experience. There are also organizations that help out budding entrepreneurs to set up their upcoming projects. It is a good thing to utilize the available opportunities of mentoring available.
Understanding your Financial Requirements and Limitations
A business venture, whether big, small or medium, has to be adequately funded. As an entrepreneur, it is your responsibility to search, arrange and cite credible sources of the funds. There are many available government sources of financing for small business. The best thing to do would be to research thoroughly on your available options and take actions accordingly. You should also have additional finance for assumed and unexpected risks of your business.
Be Sure to Protect yourself Legally
Business permits, licenses, and insurance is an essential component of a smoothly operating business. The required bonds, licenses, permits and insurance should be dealt in detail. Being legally compliant will benefit you as well as your client.
Business Licenses and Permit
Few construction companies require additional license besides the general business license, to operate.
Construction bonds are necessary to operate legally in the industry. Bond frameworks and regulations are state-dependant. For example, if you are planning to start a construction company in the state of Florida, then your bond rules may vary from that of another state. It is best to consult a good agent on this matter.
Depending upon the attributes of your operations as well as your workforce sourcing, your insurance needs may differ. Different states demand businesses to have few mandatory insurance as well.
It is best to consult a reputed agent or a legal professional to ensure that you have made the right decision.
Understanding Industry Rules and Regulations is Important
Owing to its specific nature of work and work methods, the industry functions around a network of rules and frameworks. If you want to excel, you should be aware of these regulations and also implement them in your business. For example, workplace safety regulations is important, and should be strictly followed.
The Occupational Safety and Health Act (OSHA) and its Role in your Venture
As per the guidelines of OSHA, construction businesses must upkeep strict health safety standards to ensure employee protection from hazardous work methods and environment. Any form of non-compliance to OSHA’s regulations could lead to serious legal repercussions.
Labor could be sought from these four sources mainly- Hired employees, subcontractors, independent contractors and/or labor brokers. Each source has its pros and cons. Independent contractors also have certain tax and legal implications as well. Small businesses that cannot afford recruitment sources like larger companies could utilize the online tools available for this purpose.
Things might seem difficult in the beginning, but certain levels of hard work, adherence to crucial regulations and expert aid could help you get started on your dream venture sooner than you would’ve thought!