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Top Tips for Starting a Small Construction Firm

It is recognized that the world economy is currently experiencing a range of challenges and high levels of uncertainty. Inflation levels are high in many countries, and this can make small businesses face difficulty in staying competitive, especially if they trade on an international scale. The spending power of consumers is also in decline as the prices of staple commodities and energy continue to rise. This global economic situation can make it extremely challenging for entrepreneurs who are looking to start a small business. However, one industry that is likely to remain strong and profitable in the medium and long term is the construction industry. Put simply, businesses will always need premises and infrastructure and as the global population continues to grow, the demand for high-quality housing will continue to increase. If you are considering starting a small construction firm, there are some key factors to consider that will help to assure the success and long-term viability of your business. This article explains three key tips to adhere to when starting a small construction firm.

Write a comprehensive business plan

As a first top tip, it is of paramount importance that you create a comprehensive business plan for your construction firm. This should indicate the specific niche within the construction industry that you intend to operate in. For example, you may seek to work in the field of road works and highway maintenance or the construction of commercial premises. Having a clear idea of the sector you intend to specialize in will help you understand who your key competitors are and the types of equipment that you will need to fulfill this role. A business plan should also illustrate the costs that are required for the purchase of vehicles, plant equipment and staffing and the expected year-on-year revenues and net profits. Put simply, a realistic and well-constructed business plan is vital to secure external funding to set up your business and will guide the future direction of your firm. 

Invest in high-quality equipment 

Another key consideration for any construction firm is to invest in high-quality equipment. Construction businesses will need a wide range of equipment depending on their sector of operations. For roadworks firms, there is a need to buy heavy-duty equipment, such as hydraulic excavation machinery, that can be purchased from suppliers such as All Imports. Most construction firms will also need commercial vehicles to transport staff and equipment to the building sites. It is vitally important to invest in the best quality equipment that is recognized as being durable and high quality. This type of equipment may cost more but it will certainly last for longer periods of heavy use and is therefore a wiser long-term investment.

Health and Safety considerations 

As a final point, it is important to make health and safety a priority for your firm and its workforce. The construction industry is recognized to be one of the most dangerous for workers and it experiences the highest number of industrial deaths each year. All staff should wear suitable protective equipment depending on the roles that they need to undertake. In addition, health and safety training (including manual handling and undertaking dynamic risk assessments) should form a part of the onboarding process for new starters, with the knowledge refreshed each year as part of a rolling program of mandatory training.

Christopher Stern

Christopher Stern is a Washington-based reporter. Chris spent many years covering tech policy as a business reporter for renowned publications. He has extensive experience covering Congress, the Federal Communications Commission, and the Federal Trade Commissions. He is a graduate of Middlebury College. Email:[email protected]

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