Not only that, but there is a light at the end of the tunnel that when this crisis is over that the economy will bounce back very quickly. Anybody who set themselves up during this downtime will suddenly seem positioned to take advantage of the coming economic boom.
And construction will be atop that list of industries that are taking full advantage. If you are considering starting a business, then construction should be on your radar. Whether it is building houses or commercial buildings, there will be no shortage of work.
In this article, I will go over several of the things to do to position yourself well and be successful.
1 – Be efficient
Money will certainly be tight to start so you’ll have to begin with a shoestring budget. Then, as you get more work you can expand and grow the business.
For now, though, you’ll need to focus on being very efficient with your money and find ways to keep your expenses to a minimum. Luckily, there are a lot of ways to go about doing this.
For instance, your construction vehicles like excavators can be fueled with red diesel which is nothing but regular diesel that is dyed red since it is taxed at a far lower rate. This saves you over 40 pence a litre and that will quickly add up to some significant savings.
These days, supply chains are so efficient that you can take advantage by using just in time ordering. This means that ordering the materials you need for a project when you need it. In the past, it could take ages to get your materials so you would order large quantities knowing you would need it in the future. This would tie up lots of capital.
Now, you can order only what you need and it will likely still be at the site right on time since many shipping companies are using the latest technology to increase shipping times.
2 – Be a marketer
Getting the word out there is extremely important to drumming up your business. With the internet and social media you can do this much more efficiently and economically than ever before. Instead of paying a fortune for radio ads, you can use local SEO and social media for pennies on the dollar for your ad spend.
Internet marketing will attract exactly the right eyeballs onto your offer and help you create a brand. In addition to knowing how to build a building, you’ll need to understand how a brand is built. You’ll want people to understand quickly what they will be getting when they contract you to do their construction.
You may not be doing the marketing work yourself, but the more you understand about it, the more likely you are to find a marketing agency that will be the most effective given what your company is all about.
Make sure to have a good logo that will represent you on all the marketing channels. From the website, to your vehicles to social media your logo should be the same across all of them. This way you can actually build a recognizable brand when your marketing takes off.
Then, you’ll need to do some traditional networking by attending events so you can meet other small business owners. Making these connections is essential to finding clients and getting referrals when you do end up working for somebody you’ve met at an event.
3 – Find a niche
There are so many types of construction jobs out there that it would not be wise to try to do everything. The better approach is to find a small, underserved segment of the industry and focus on that. An example would be a small, family owned business that specializes in painting bridges. That is as focused as it gets. Because of this, any city that has a bridge knows who to go to to have their bridges painted.
Try to find the equivalent for building. If you become a specialist then you will create a reputation for yourself as the best in the business for this one particular type of specialty. Maybe your business is to replicate retro architectural styles like Frank Lloyd Wright buildings. Or that you only deal with building warehouses. Whatever gap you find in the market is the one to exploit and become proficient in that type of construction.
The other benefit about specializing is that you can command more money for the work that you do. If there are not many other builders that do what you do, you can command your own price. Not only that, but you can be far more efficient when it comes to your project costs. You don’t have a lot of material and tools tying up capital that you are only using sparingly.
4 – Be a positive figure in the community
Many construction companies take a leading role in the community. Very often they do a lot of charity work and sponsorships among other beneficial acts.
They are often seen as a positive influence as they are creating homes for people, hospitals and other useful buildings. Not to mention that these companies often pay their workers very well so they provide a stable income for many.
Make sure that you are visible as a community leader and that you care about the area where you do business. Not only is it going to benefit your business, but it is the right thing to do anyway.
Conclusion
Nobody is saying it will be easy, but this is a great time to start a construction business. Hopefully seeing these tips on starting will inspire you to take action.
