Property prices in the UK are currently high and are still rising in some areas due to a housing shortage (particularly affordable housing). Demand is definitely outstripping supply. With the economy and population expected to grow, it is unlikely that this very high level of demand for housing and business accommodation is going to drop any time soon. The only way to meet the demand is for construction companies to continue building, but surveys indicate that the rate of constructing homes in particular is not accelerating quickly enough. This means that now is a great time for entrepreneurs to start their own construction business.
A construction business differs from other start-ups in several ways. You are undertaking large projects with lasting value, but there are also significant risks and unknown factors. Unlike other fields, the construction industry is also highly regulated to protect all the parties involved, so you need to study the relevant legislation.
You can and will need to protect your business and customers by planning carefully and reducing risks via insurance contracts, for example. Insurance can cover your business for errors made in the construction process, while occupational safety plans will cover your employees for any accidents that may happen while they are at work.
You must start with a business plan. This is a valid starting point for any business, but it is even more important when you start a construction business as it is the one industry in which you cannot operate without thorough planning. Your business plan will cover the financial aspects of the business, which will help you to arrange financing for the upfront costs involved.
A hiring plan is also important. Construction labour is in high demand and short supply, and you need to be prepared for the hiring process and any potential delays. Working with contractors that use an umbrella company can make the process of employing workers easier. Umbrella companies will also assist contractors with all elements of employment paperwork so that you can focus on building the business instead of filing taxes and dealing with invoices.
Furthermore, you need to put the right management processes in place. This includes acquiring the technology to help with record keeping. For example, inventory management systems will make sure the material and equipment you use on site stays within the possession of your employees and ultimately your business. An accounting system will help you meet government requirements when it comes to taxation, and it will make it easier to keep track of funds receivable from your customers.
Understand the industry
Even if you already have experience in the construction industry, you need to keep up-to-date with the latest regulatory developments and changes in construction methods. This is even more important if you are new to the industry and if you are employing workers who have limited experience. There are plenty of construction seminars, printed materials and courses that will give you a very solid background. Making use of these options to build your knowledge of the construction industry will support the success of your business.