If you want to use your skills and build your own business, the construction industry can be a great place to do so. People always need homes and towns and cities always need various pieces of construction, so it’s not difficult to find work if you are good at what you do. That being said, when you’re just starting out in the industry, it’s easy to make mistakes, get things totally wrong, and end up with a dud company on your hands.
Don’t want that to happen to you? Avoid these very common construction startup mistakes:
Not being specific enough
In these days of internet searches and Google keywords, if you don’t know exactly what your business is offering, and you don’t make it completely clear to customers which service you are able to perform, you are going to struggle to get much business when you’re just starting out. That’s why it’s so important to narrow things down. Don’t aim to be a jack of all trades, but a master of a few key aspects of construction instead. It’ll not only be far easier to find clients but also to build a solid reputation in your core services. You also maybe won’t need to invest in quite so much equipment to begin with, which brings us to…
Make sure you have the right equipment
As a construction startup, there is no getting around the fact you are going to need to invest in the tools of your trade, and some of them are going to be pretty expensive. Which makes it really important for you to nail down which tools you do and do not need. You may, for sure need a decent flat bed truck to haul equipment to the job site, but do you need an expensive excavator right now? Unless you’re going to be doing a lot of excavation work, probably not – you can either hire one as needs be or subcontract the job to someone else until you have more money coming in.
Not having insurance
If you set up a construction company and don’t buy an insurance policy to cover various liabilities, you are a fool, and you may even be breaking the law, yet so many aspiring construction entrepreneurs try it and end up broke and bankrupt with their reputation in tatters as a result. Construction projects can go wrong in so many ways that you need insurance, period. If you’re not sure what kinds of coverage you will need, a good insurance broker will help, as will having a look at the local laws and legislation.
Sticking with a bad client
Bad clients are the ones who keep changing their requirements, expanding on the scope of the job, not paying on time for materials, and… well you’ll soon work out how to recognize them. One of the biggest mistakes you can make is to keep working with them no matter what. They will make you miserable, suck away your time and enthusiasm and potentially even leave you struggling financially. Ditch them, but first, make sure your contract has a clause whereby you can ditch them if necessary.
Avoid these rookie mistakes and your construction startup might just succeed.