Should Builders Go It Alone And Set Up A Construction Company?

Should Builders Go It Alone And Set Up A Construction Company?Source: Pexels

After spending years working in the construction industry as a builder or other professional, it might have crossed your mind to set up a company of your own. You already know the ropes, and have the skills, experience and probably the contacts you need to be able to quickly get off the ground. There’s a snag though, setting up a company in construction is one of most difficult to get right since there are a lot of extra considerations to bear in mind. If you’re thinking about going in this direction, have a read of this first.

1. Start-Up Costs

One of the main reasons that starting a business in construction is so difficult is the cost of setting up. You will need machines, vehicles, power tools, materials- all of these things don’t come cheap. Admittedly you don’t need every piece of machinery out there since companies like offer the ability to rent, but the pieces you do buy will end up setting you back. To keep costs down, you could look on auctions and sites online for good second-hand deals. You could also consider taking on a business partner or finding an investor if you needed more upfront cash.

2. Earning Potential

On the flip side of costing a lot to start up, construction companies have the potential to earn an awful lot of money. With projects involving buildings generally being larger, customers spend a lot of money getting them done and are usually things people save up for years. Instead of doing lots of smaller projects like most kinds of companies (which means it’s easy for work to dry up) here you have bigger ones for more cash to tackle. While you will have to pay for materials as well as your staff, there’s loads of opportunities for big profits. From a purely financial perspective, according to setting up a business in construction can be very lucrative. The one downside when it comes to earning potential is that over the winter, bad weather can make certain projects impossible to start or continue with. Bricklayers and electricians can’t work in the rain for example and losing days to bad weather is common. The trick is to time projects well, if it’s a large building you’re putting up for example, the outer work should be done by the autumn when the wet and cold weather starts to kick in.

3. Health And Safety

Workplace safety always has to be taken seriously, get this wrong and you could end up being sued and left massively out of pocket. But in companies that work on construction, there are extra considerations to think about. Vehicles, machines, power tools, working at height and being in unsafe, unfinished buildings all come with risks. You will need to be very strict on things like suitable clothing- steel toecap boots, a hard hat and a high visibility vest should be worn by people on site. Sometimes eye and ear protection will need to be used as well. Everyone should have a health and safety certificate as well as proper training and qualifications to use the machines and vehicles that they will be working with.