In today’s world, it’s very challenging to start a construction business. It’s because of all the challenges and uncertainties due to the COVID-19 pandemic. This should not deter you from starting your construction company. With every challenge comes the opportunity. An opportunity to think out of the box and stand out from competitors.
If you are looking to start a construction company in Australia, there was never a better time. As life returns to normal, the construction sector sees increased demand for projects. The steady population rise is creating a need for residential projects. Many new businesses are opening, resulting in higher demand for commercial projects.
By now, you must be ready to kickstart your construction company but wondering how to start? In this blog, we will explore 8 key steps to starting a successful construction company.
8 Steps To Starting Your Construction Company
Starting your construction company requires heavy lifting. It is important to do planning and analyse the following important steps beforehand.
1. Building Your Brand Identity
Is building a brand identity that important? Yes, it is crucial to building brand identity because it lasts for a lifetime. Thus, you must choose your company name with extra care.
Your company name must be meaningful and easy to remember. The best name is easy to pronounce, spell, and remember. You can get creative about your company branding and pick a name that aligns with your goals. We recommend checking your business name against trademark databases to confirm the availability. Also, check to see if a domain name is available, as that is also important.
2. Research your Competitors
The construction space is very saturated, and there are many players. Also, it may be possible that customers are already pleased with the current companies. Thus, researching local markets and competition is imperative.
You need to explore whether a construction company is a viable option in your area. Because in a competitive space, promoting your brand and making a mark is difficult. You should conduct thorough research on existing players in the market. Learn about their specialisation, the pricing structure, and their reviews. This will help you build your client personas and a potential customer base.
3. Develop Your Robust Business Plan
You have now analysed the market, and there exists an opportunity to take an entry into the market. In the next step, it is important to develop a business plan that serves as a starting point. It will also boost your chances of success because it will guide you throughout this journey. This business plan can also help you attract an investor and secure funding.
4. Register Your Business
The next step is registering your business once the business plan is ready. It is vital to register your business to make your company a legal entity. Business registration will provide legal benefits, tax benefits, and personal liability protection. You can register your business in Australia using the Business Registration Service website. After registration, you will get an Australian Business Number (ABN). You can also register for GST. You need a tax file number to track business expenses and tax payments.
5. Acquire the Right Permits and Licenses
After business registration, it’s time to get the necessary licenses and permits. In Australia, there are the following key licenses:
- Individual Contractors Licence – It is required before starting any residential or commercial work.
- Company Contractors Licence – It is needed for public companies or limited liability. It allows you to establish contracts and subcontracts with other entities.
- High-risk Work Licence – You need this license if you operate heavy machinery. Here, heavy machinery refers to cranes, excavators, etc.
6. Get the Funding for Your Construction Startup
Not all construction companies start with all the tools and equipment. They will need funding to buy or rent the equipment and tools to begin work. Thus, it’s essential to finalise this as early as possible.
7. Hire Your Team
Next, you need to start hiring your team to get started as soon as possible. Hiring is also a crucial part of the process because you need a good team that agencies like Fast Labour Hire Brisbane can help you assemble very quickly. Since you are in the early stages, it’s best to implement processes to foster the culture you want to build.
8. Grow Your Business
Growing your business helps to take it to the next level. You need to start marketing to raise brand awareness immediately. Today’s marketing strategy for small businesses has gone digital. You also need to ensure your marketing plan is consistent. Your website, social media assets, trucks, and other items have your brand identity.
Wrapping Up
Running a construction business is not straightforward, but it can be very rewarding. The construction sector is very promising, and we recommend you join any industry associations, network, or professionals. It is crucial to create profitable partnerships to turn your project into a huge success.
