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How to Start a Construction Business

The construction industry is among the most successful ones on the market – big investment, but incredible return on investment. Some businesses serve domestic clients, while others focus on commercial applications only.

Starting a construction business must be seriously planned to become successful in the long run.

Do your homework

Your potential customers can make or break a deal, so you need to research your options very carefully. Think about who the ideal customer is. For instance, if you are into domestic work, drive around local areas and find people who might need your service.

Look for prices, age of buildings, maintenance, and accommodation type and so on.

When it comes to commercial work, take a look at offices, shops, pubs, schools and others.

Then, you need to determine whether you want to do contract work or start low and do sub-contract work for a bigger company. Keep an eye on your competition too, as well as current trends in the industry and legal issues.

Consider the financial part

Unless you have saved for a while, you may need to consider construction business financing. The industry is not like others. If you can start businesses in particular fields with your skills or some tiny investments, you will need professional tools in construction – plenty of them.

The financial part needs assessment once you determine what type of services you want to offer.

How about the services?

Unlike many expectations, the construction industry is not all about building homes. Instead, you can also provide concreting services, demolition, damp proofing, insulation services, tiling, damage control, fencing, timber treatment, heating services, drainage and so on.

Once you know what services you want to offer, you will be able to determine what kind of tools you need. Once you figure out the tools, you can plan the financial aspect in a more effective manner – keep in mind that there are many other things to consider, such as certifications or employees.

How about the work rate?

Your work rate is just as important. It depends on how many days a week you want to work, as well as how many hours for. Some people stick to regular business hours – others do it differently. Keep in mind that many aspects of your business depend on the weather as well.

In an ideal case, you should offer both indoor and outdoor services – work indoors when the weather is too bad. It takes time to figure your work rate accurately, but it is mandatory once people start asking you for quotes.

There will be many nonproductive times too – traveling, surveying, repairs and so on.

Get certified

No one wants to take any risks when it comes to construction work – poor quality can risk lives, not to mention the huge expenses. Your potential clients will want to ensure you can provide quality work. Reviews are great, but you are less likely to get any in the beginning.

Instead, you will need some certifications. More is better. Stick to the main ones, but get plenty of optional certifications as well. It takes time, but such things will not just make you a better businessperson – they will also make you stand out in the crowd.

Price your services

You may need a bit of experience to start a construction business – this type of experience will help you understand average prices. If you are completely new, you may need to get quotes from different companies in order to figure out the market.

Now, how do you charge for your work? Some companies charge on a daily basis – plus, they add the prices for materials. Some others charge per job. Then, there are standard rates too – usually for roof coverings or tiling.

When setting prices, keep in mind that you are new. You might want to stay in line with the competition or go a bit under the market price. Rates may also vary based on how complex the work is – finally, consider your profits as well.

Promote your business

No matter how good you are or how low your prices are, people will never know if they never run into your business. You need to advertise for your business, so make sure you get listed in as many directories and trade associations as possible.

Social media is another good option – quality pictures of your most attractive projects. Think about forums too and directories for trades people. Get in touch with local councils and authorities if you provide commercial work and get listed – or at least let them know about your business.

Keep in mind that your competition does the exact same thing, so you need to find a way to stand out.


Bottom line, it takes time to start a construction company, but it can be an effective way to grow from a financial point of view. There are lots of categories to be in and each of them can provide amazing rewards, as long as you grow your business by the book.


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