Building & Construction
Construction has traditionally been one of the strongest and most stable industries in the world. However, with the recent economic downturn, the industry has begun to struggle.
But, the worst of the economic downturn seems to be past. The future represents much brighter prospects for this industry and others.
Building and Construction Business
When starting this type of company, the most important thing is to organize. Form a legal entity separate from your person to protect yourself from liability.
Be sure to also acquire all necessary licenses and permits. This industry is highly regulated, especially in populated areas.
Next, consider what tools and equipment you will need, so you know how much financing to request.
One of the most critical skills for a contractor is to be able to accurately bid projects. Underbidding is great to get those first clients when starting out. But, underbid too many projects and your company will soon fail.
If accurate bidding is not a skill you have, hire someone else to do it for you.
Once you have approved financing, liability insurance, and several small clients, you're off to a great start. The next challenge is managing the crew. If the business side of things is your strength, you can hire someone to do this for you.
Start off with small clients and let word of mouth advertise for you. Underbid a few projects just to get your foot in the door. Place a few temporary signs at completed jobs.
All these forms of advertising will add up over time. As your company grows, develop positive working relationships with building inspectors. Having an attorney and accountant available will be helpful also.
If you follow all of these practical business tips, you can have a successful construction company in about five years. If this industry isn't what was expected, you can put up your building and construction business for sale.
If you are considering buying a building and construction business, this may be a good time. The global economy is relatively weak and appears to be on the rebound. However, be sure to have enough capital to weather the storm. Otherwise, you may have to look at selling a building and construction business.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .