Start a Construction Company
Building is a business that leaves good money and there is a lot of work in the area. So we tell you all about how to set up a construction company and be very successful through it.
See here how to make money with service related businesses
Requirements of a Construction Company
To know how to set up a construction company is to understand that there are certain requirements that are indispensable for its opening and operation. We tell you about them below:
Qualifications and security measures: firstly, you must process the current qualifications in order to be able to invoice and hire personnel. Then, you will be asked to take certain safety measures for the staff, such as buying and obliging employees working at height to use harnesses and other safety elements. Read carefully the regulations that will be given to you at the State offices and follow each specified requirement in detail.
Hiring professionals: the staff that works in your construction company must be qualified and have the corresponding university degrees in the case of architects and architects’ assistants. As far as builders are concerned, they will have to have taken the trade courses taught in the area and, as a recommendation, it will always be convenient for you to hire those who have obtained the best qualifications and have the best reports from their internships. This will guarantee that the employees have excellent skills in their specialization.
Machinery: it is the most delicate part of the company, since it is a significant investment and the quality and power of it will determine the final result of your work. So find out from different sources which is the best brand and the most performing models.
Physical space: when planning how to set up a construction company, you will have to take into account two physical spaces. One of them will be your offices, from which you will communicate with your clients and the plans and projects for each service contract will be made; while the second one is the premises in which to lodge the machines to carry out the excavations and other works, that is: cranes, excavators, etc.
How a construction company works
It is essential to understand what the work of a construction company is, since it is not limited to simply making buildings from scratch, but also to carrying out renovation and reconstruction work. Here we detail some of them:
Interior recycling: some old houses or buildings look very picturesque on the outside, but they definitely need an interior recycling to offer the comforts that a modern housing proposal requires.
Facade remodeling: certain facades are worn out over time, so they need to be made beautiful again through remodeling processes.
Reconstructions of buildings in ruins: whether due to fire, earthquake or the own never attended wear of very old constructions, certain buildings, houses or monuments, require a reconstruction work that your construction company can do.
There are other related jobs that will also arise as your company consolidates in the market.
Advantages with a construction company
If it is a company where you start as a sole proprietor, the investor receives all the profits and can select the jobs he wants and has the skills to do them and make all the decisions.
As the sole proprietor, you can choose to turn down a job you don’t think will give you enough profit. You can also hire and fire the people you choose and stop at the winter break if you have plans to do so.
As a sole proprietor, you also assume all risk and are responsible for all debts that may be incurred as well as insurance payments needed for both the company and the employed staff.
Tips for starting a construction company
This business requires licenses, registrations, certifications and permits that are mandatory for the construction company and must be complied with according to the location. To build brand and professionalism, a business needs to be officially established and recognized as a legitimate business.
Another aspect that is very important to take into account is the payment of taxes, so it is required to have an accountant that can be outsourced, who is responsible for the documentation that must be kept on file for deductions and in case of audit.
Problems that a construction company may have
One of the problems that construction companies have is the loss of money and the statistics of failures with construction companies are high. Every day there are several companies that close despite the ambitions, dedication and strength of those who started them.
This is partly due to the lack of knowledge of the construction business, because a construction company, like other companies, is not a business that can be opened just because it has money and enough time. Therefore, the most advisable thing to do is to start in a specific branch in which you have more experience and that ensures success. The important thing is never to trust that the people hired will replace the lack of experience.
Another important problem is that the specificity that can make the difference in this business, finding the field of expertise can be key to survive in principle in this business. Because, even though all works use concrete and steel, each work has its peculiarities and challenges.
Success stories
The company Mister Tarima, is a successful company in the construction sector because it specializes in the sale and installation of a variety of important solutions, such as floating floorboards and parquet, bathroom and kitchen floorboards, sports flooring, exterior flooring, cherry, beveled, among other solutions.
The franchise is offered because the company seeks to expand its network of distributors, entrepreneurs who know about wood, design and construction, with interest in opening a business working independently.
Another successful company in the sector is DEXERTO, which is dedicated to the installation of renewable energies, profitable productive, developing installations of thermal and photovoltaic solar energy. The company specializes in solar energy, with a wide experience and efficiency, with a team and specialized personnel, which have allowed it to quickly become one of the most representative brands in the sector in which it operates.