Why do startup construction companies fail? Why are they laden by legal burdens? Why are they hounded by creditors? A lot of people, like you have dreamt of starting their own construction companies. They took the leap, followed their guts, rolled up their sleeves and got their hands dirty. The statistics of failed construction companies is disturbing, despite the fact that people who started builders in Lahore, started them with lofty ambitions and unfailing dedication. It is clear that you will need more than dedication, guts and a gung-ho attitude, let’s take a look at what else you will need.
You need a business plan. You need to be clear about your strategic choices. The services you will offer will dictate the kinds of tools you will need, it will also tell you the kind of people you will hire. The market segment you will target will dictate how will reach your potential customers. The overall business plan will allow you to identify gaps in your business strategy.
You need to decide how your operating capital will be structured, where you will get the money to fund your business. The source of the fund is important because you will need to purchase materials and pay your workers while you are yet to bill your client. If the jobs you intend to take are small enough, they can be funded from your credit cards plus personal savings. When you take on larger jobs, you may need a bigger source of funding. You can consider applying for a business loan.
You need to get the necessary licenses and permits to operate your construction company in Lahore. An up-to-date construction license is necessary. It is a good idea to check with your city, county and state which laws or ordinances apply to your business.
You need to get insurance to cover potential accidents. Consider getting bonding insurance, general liability insurance and auto insurance. Contact a commercial insurance agent in order to get advice on which insurance policies apply to your business.
You need a background on engineering estimations or job estimations. If you cannot estimate the job with high accuracy, hire someone who can do this task for you. Cost estimations can mean the difference between profits and losses in the construction business. You cannot bid too high on projects just to ensure you have a safe margin–if you do, it may cost you the bids.
If you intend to oversee your own workforce, you need to be on site most of the time–if not all of the time. If you cannot commit 100% of your time to your construction business, you need to hire someone with experience to lead the work crew and oversee the work.
You need to craft a strategy on how to advertise your construction company. You might want to start a website which contains information about your company and how different you are from the other contractors. You can also use traditional methods of advertising such as printing business cards, flyers and brochures–make sure they include a reference to your website.
At the end of the day, starting a construction business can be profitable and exciting. The risk of failure can be minimized by carefully considering a) where you will get funds b) what you will do when accidents happen c) who you will hire to help you d) how you will bid for projects and e) how you find your customers.
