Starting any company can be challenging, yet there is so much to gain from going it alone. In order to take charge of your own destiny and start your own construction company, you’ll be required to learn a range of business skills. Key skills such as basic administration, marketing and accounting will be vital to your success and should not be overlooked. Yet, as with most companies, you’ll learn many things through your mistakes. Luckily for you, there is a wealth of information online about starting up a construction company and therefore many of these mistakes have already been made by someone else.
So if you feel you’re ready to make the switch from working for a construction company to owning one, continue reading. Below are some key points and tips on starting a successful construction company.
Prior Experience Is Key
As with any business, having first-hand experience in your chosen field is vital to success. Prior experience of any kind will be invaluable in almost every aspect of your journey so it’s worth taking the time to gain relevant experience before you decide to go it alone. Whether you’re a specialist at operating rigging equipment or have a broad knowledge of all aspects of construction, it’s essential that you have a firm grasp of your chosen market before you begin your journey.
Be Prepared To Take Control Of Your Finances
Chances are that you’ve worked for somebody else or as a contractor and will have therefore had some experience in providing customers with quotes or invoicing for work that you have completed. But as an owner of your own construction company, you’ll be required to build on this basic knowledge and take control of the company’s finances. Knowing the cost of materials, how long projects will take whilst considering the cost of your overheads will be essential to figuring out how profitable your services will be.
When you make the move to working for yourself, you’ll no longer be able to rely on an employer providing a weekly wage. Instead, you’ll be entirely in charge of how much you earn, which can be extremely daunting. If you’re worried about any aspect of the financials then there are a few things you can do. Either enlist the help of an accountant, enrol in an online course to learn more about finance or you could use self-accounting software.
Gaining new clients and spreading the word about your services is the top priority. Networking is an excellent way to drum up new business for your construction company. Whether you choose to attend networking events, speak to previous clients who loved your work or simply talk to your existing contacts to keep them up to date with what you’re doing, all of the above could help you secure new business.
Ensure You Understand Tax
You may have gained experience in lodging your tax forms in your previous roles. However, ensuring you understand everything there is to know about tax before starting a construction company is critical. The best way to guarantee you’re doing everything by the book is to use the services of an experienced and qualified accountant. An accountant will inform you of when and how your tax should be paid and may also give you advice on ways to keep tax processes as simple as possible.
It’s a good idea to have a separate account for your tax, as well as keeping a detailed record of your income and any company expenses. Keeping everything organized and staying on top of your tax records from day one will reduce the risk of having any nasty surprises at the end of the financial year.
Hopefully, the above points have given you some insight into what goes into starting a construction company. With the correct preparation, research and lots of hard work, you’ll be able to reap the benefits of being your own boss.