How to Start a Construction Company in 3 Simple Steps

Regardless of our title, let’s start with a caveat.

Clearly there is nothing simple about launching a construction business, especially in a competitive marketplace. There are ways in which this process can be simplified, however, through the application of clear thinking, reasoning and organisation. Common sense also plays a key role in this, as you look to prioritise individual tasks and manage these strategically to bring your business vision to life.

3 Steps towards launching a Construction Company

While it would take far too long to list each requirement for launching a construction business (not to mention the fact that these may vary depending on your precise operation), we have created a succinct list of three considerations that will set you on your way if you want to start a construction company. These include:

Know your Marketplace

Knowledge of the marketplace is crucial in any sector, especially one that is so susceptible to economic shifts. In recent times, the construction sector has experienced a mild slump followed by a period of consolidation and recovery, while experts remain positive about the long-term prospects for the industry. The Markit Purchasing Managers Index for the sector fell from 58.1 to 57.1 in July, suggesting that start-up firms should proceed with caution rather than dread. This type of knowledge and insight is invaluable for start-up companies, especially those that are keen on timing their market launch.

Understand the Importance of Research and Partnerships

More than any other sector, construction firms rely on their access to cutting edge equipment and tools. This dictates the scope of work that they are able to undertake, which is important given the size of some commercial contracts on the market. The ability of start-up firms to form partnerships with suppliers is also key, so this is something that aspiring entrepreneurs must focus on if they are to succeed in the construction sector. Companies such as VP Groundforce serve as an excellent resource for start-up firms, as they are constantly evolving to provide hire tools and training for the sector.

The Importance of Sustainability

Whereas this was once a matter of choice, it is now imperative for construction firms to adopt a sustainable business model that underpins their efforts. This is due to the prevailing consumer and client outlook, which continues to drive down carbon footprints and create a more eco-friendly living environment. Your business must therefore be established on the basis of sustainable waste management practices, while also committing to use eco-friendly materials and processes wherever possible.

Print Friendly, PDF & Email

About Dequiana Jackson

Dequiana Jackson, CEO of Inspired Marketing, Inc., is a small business marketing coach who shows women entrepreneurs how to use solid marketing strategies to turn their life’s passion into a profitable, service-based business. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

Check Also

The Importance of Background Checks Before Hiring

Small business owners require staff to help with various processes in their businesses. Whether it …

17 comments

  1. Although Mike is still skeptic about staring a construction company, I have been doing my best in terms of support and had also promised to help with research. I really like the 3 steps that you have mentioned here Jackson, you make the whole this sound easy which I believe should be. Thanks for sharing the tips and keep up the good job.

    Cindy

  2. One other thing that would be vital to starting a construction business was the know-how to recruit workers. You are in no way sustainable if you don’t even have the ability to hire workers. One option would be to hire a recruitment company, which would come with the benefit of always having workers available for projects.

  3. When launching a construction business I would agree that you should keep in mind the competitive marketplace that you live in. Being aware of the marketplace when it comes to construction could be very helpful in making a book of business. Sustainability, as you mentioned sounds like a good way to broadcast you construction service to consumers.

  4. Hey Dequiana Jackson !!

    Great post !! its really nice to read such artcile. I appreciate it.The construction business is booming once more.

    In fact, the residential building construction industry was the number one fastest-growth industries for small businesses in recent years thanks an increase in housing demand, lending activity and real estate values.In addition, six of the 10 fastest-growing industries among small businesses are tied to construction – including contractors, real estate agents and architects.

    keep posting such article
    Have a great day
    Jennifer Dickie´s last blog post ..How to: Write a Cover Letter

  5. One important thing is to have good employees working with us too!

  6. Hi there. This is a great blog post, so thanks for sharing. In my experience of owning a joinery company for over 20 years in Liverpool – you need to understand that it’s all about who you know and who you connect with – even if you’re technically the best in your local industry. Whether that’s through word of mouth, internet marketing or paid advertising on billboards and business meetups – it’s up to you to do split testing and see what is most effective!
    Karl Prescott´s last blog post ..What You Need to Know About Our Liverpool Offices to Rent

  7. Don’t be cheap in hiring the right people to build your home. It’s your home and must be done in perfection on all angles.
    Brisbane home design and build´s last blog post ..New Home – Enoggera

  8. You have a point about knowledge being crucial in any business sector. Doing your research is one of the most important steps of those you’ve listed here.

  9. Your tips to prepare with research were definitely valid. Identifying ways to build partnerships and learn as much as possible can be paramount to success.
    Christina´s last blog post ..CalContractor Magazine Cover Story.

  10. Building the right commercial building for you needs the right people to do so. Always go for excellent record contractors when hiring.

  11. You make a great point about equipment. Cutting-edge equipment is essential to the construction industry.

  12. Hiring the right contractor is very important in building your dream home. They should be excellent and should work in your budget.
    home design and building Brisbane´s last blog post ..New Home – Enoggera

  13. Contractors may be expensive but with the quality they make it shouldn’t matter that much as long as they deliver.
    office renovation Mount Isa´s last blog post ..Job Roles on a Commercial Build

  14. Always check for past works of your contractors to see if they are good. You will see the quality and will make better decision.

  15. It’s one thing to successfully start a construction company, but it’s definitely another issue trying to maintain one. These steps will ensure any company will keep up with the competition. Thanks for sharing!

  16. For startups, you can check on business model canvas. This will help you all the things you need on how to start a business and become successful. Accurate planning and strategies with the right actions will definitely help you become successful.
    Gary Fling´s last blog post ..Tenant Improvement Services

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge