So, you’re looking at starting your own construction business? With construction having an extremely strong sector growth and increasing demand, it’s a great time to do so. Chances are, you’ve been thinking about this for some time and are excited to hit the ground running! Before you jump in, it’s extremely important to remind yourself that starting a new construction business requires a lot of time and preparation. There are so many factors to take into consideration in order to successfully kick off your business. In this article, we’ve carefully constructed 4 key areas to make starting your business a bit simpler:
One of the first “steps” in the process is research. You may have already done a bit of research, but we can’t stress enough how important this step is. This stage provides you with the opportunity to explore different avenues and ensures your business is viable in the marketplace.
Here are some questions to help guide your research:
Do you want to specialise in a particular area of construction?
What makes you different? How do you stand out?
Who is your ideal client?
What are your competitors up to?
Once you have some answers to these questions, you’ll then be able to have a better understanding of your potential customer base.
2. Create a Plan
Although it would be nice to wake up one morning and just decide to successfully launch a spur-of-the-moment multi-billion-dollar company, this isn’t the reality of starting a construction business. The next step is to plan how you will launch and sustain your business which includes rough timelines for you to meet each goal.
The planning process should cover the following information:
Business structure (E.g., Sole trader, Partnership)
Type of construction (New homes, Renovations, Extensions)
Builder’s registration type
Finances (loans, grants, expenses, budgets, deposits)
Will you have employees or contractors
What equipment and machinery will you need?
Estimated costs to launch and continue to support your business
How will you manage client quotes and communications?
Decide how you will market your services and build trust
As your construction business grows and evolves, so should your business plan.
3. Register Your Business
This step is fairly simple! Once you have your business plan laid out, it’s now time to register your new construction company with local and state governments. Jump onto the Business Registration Service website, fill out the forms, apply for a Business Registration Number, and apply for a tax file number.
4. Builders Registration
In Australia, requirements for builders’ licensing differ from state to state, so it’s important to familiarise yourself with your state requirements in addition to the type of registration you would like to apply for.
For example, Victorian Domestic Builders are required to have a minimum of 3 years full-time construction experience whereas in New South Wales you are required to have 2-years’ experience.
Once you’ve decided which license you would like to obtain, you’ll need to have all your paperwork ready to go to submit.
Similarly, if you plan on working with heavy high-risk machinery and equipment, you may need to apply for additional permits and licensing. More information on this can be found here.
Starting a construction business is extremely exciting, however, with all there is to think about, the early stages can be especially daunting. Even with the best plan in place, unexpected things do happen. Wouldn’t it be great to learn from mistakes before they happen?
If you’re looking to be a part of a growing network of experts in the building industry, The Builders Lounge is the perfect place to be. Our space is filled with experts and newcomers in the industry who enjoy asking and answering questions, sharing advice and experiences, and proving the power of network collaboration.
Reach out to us today to become part of a growing group of builders who are changing the game in the building industry!