The Australian economy is relatively stable, and that means that more families are thinking about investing in their own home. A lot of business owners are also expanding their portfolios into the real estate market. All of this means that the circumstances are good for starting a construction company.
It isn’t an easy task, though, because construction companies require a lot of initial investing, and there are also plenty of competitors to worry at all times. However, if you find your niche, it can be one of the most profitable businesses out there.
A business plan
The first step toward starting a construction business is to create a business plan. The plan should cover the funding needed to set up and run such a company, but it should also go into details about the company management, the scope of services that you plan to provide, and marketing campaigns suited to your customers.
This plan isn’t only about having a blueprint for your business and its growth. In addition, it’s a tool that will make it easier for you to apply for loans or government subsidies, like the ones provided by the Brisbane administration. The business plan proves that you have an idea of what you want your company to be.
A construction business requires loans to get things started. This is mostly to purchase the equipment needed for a construction project, but there’s even more to it. Such a business also requires a management structure and a marketing campaign that will put it on the map.
It often so happens that business owners borrow just enough to cover the expenses listed in their plan. However, this usually doesn’t suffice it because there are always additional expenses and overheads that no one has planned for. These add up and can put the company in a difficult spot. Therefore, it’s best to borrow a bit above your needs, and create some breathing room for yourself.
There’s a lot of equipment needed to complete a construction project from start to finish. This is why many entrepreneurs dread starting such a company because it’s bad for a business to disappoint a client by not having the tools needed to accomplish the task.
Luckily, there are ways to avoid these issues, at least until a company is safely on its feet. Some of the more expensive and complex equipment can be rented at first. For instance, you can use crane hire in Brisbane instead of purchasing your own cranes. This service also comes with professional drivers and maintenance experts, which is rather useful to small construction companies.
Construction industry faces a lot of complicated regulations and rules. This means that businesses need to obtain different licenses in order to prove that they work safely and in accordance with the law. This is necessary not just for the government sake, but also for assuring clients that your company can be trusted.
Have in mind that all of these licenses come with fees, and that too can pile and mean a lot to a small company working on a budget.
Construction projects can be dangerous for both the workers and the property you’re working on. There’s also a lot of heavy machinery and sophisticated equipment that can get damaged or broken. In order to prevent these unforeseen expenses, construction companies need to invest in personal and property insurance.
The most important of these is personal health insurance for each employee. The premiums for it are related to the salaries, covering both the hospital expense and the salaries during the treatment. It’s not an expense that can be avoided, but it can save you a lot of money in case something actually happens.
Some might believe that a construction company doesn’t really need a marketing campaign and that rallying on contacts and word of mouth can be enough to expand the company and stay lucrative. This isn’t really the case, especially in a market as large as that in Brisbane.
Construction companies need to dedicate a portion of their marketing resource to addressing the clients directly, while another portion should go to campaigning within the industry itself. This is a smaller scale project and a less expensive one, but it can bring in more work than traditional marketing.
Starting a construction business takes careful and dedicated planning. However, it can prove to be a lucrative and long-lasting business.