Considering launching a startup construction business? Right now, many construction markets are hot, so it’s a good time to strike. However, breaking into the construction business, as with many other industries, can be difficult.
That’s why we put together these ten tips for launching a construction startup business.
1. Learning is a Constant Process
It doesn’t matter how smart you are or how much you know about construction. The world changes, and you will have to change with it. Consider how much construction marketing has changed since the Internet and smartphones came into play. Digital ads, social media, and all the rest are now vital.
2. Rep Your Business All the Time
From day one, you need to focus on getting the word out. Call up every contact, every customer you might have had or could land, everyone who might know someone who is interested in your business. With construction, that means just about everyone.
Construction marketing is tricky and requires a lot of planning. You’re going to need to set aside a budget and other resources.
3. Be Thrifty and Make Your Dollars Stretch
A construction startup business is going to require resources. Unfortunately, during the startup phase, you’ll often find yourself strapped for cash. Even as you dedicate resources to construction marketing and other processes, you need to ensure that you are spending your money wisely. The focus should always be on growing your construction business, but you need to be patient.
4. Under Promise then Over Deliver
It’s tempting to promise the world when you pitch your first clients. While it’s important to put forward a competitive bid, it’s also essential that you deliver on your promises. In fact, if you can, try to under promise but then over deliver. By doing this, you’ll leave customers more than impressed and happy with your work.
5. Stick to Your Rates
You need to set rates that are in line with the market. A construction startup business might set prices a bit below the rates of established companies, but it’s important to respect yourself. Once the rates are set, list them out and provide them to customers. Make sure costs are understood up front, and then stick to them.
6. Build Up Your Data, Including Estimates and Costs
Over time, you’ll develop a database of estimates, previous project costs, and all of the takeaways from each project. You need to use this information to enable data-driven decision making. By looking at past estimates and costs, you will be able to put together bids more accurately. You’ll also have a better overall grasp on your costs and will be able to offer better quotes.
7. Your Truck Is Your Castle
A work truck is very valuable for many construction company owners. You should set your truck up to be an office and workshop on wheels. Important tools and documentation should be kept on hand and be made readily accessible. You can also turn your truck into a construction marketing asset by using a vehicle wrap. This will help you grow your construction startup.
8. Get Your Accounting System Set Up Early
Taxes are a certainty in life. Don’t let your business be overwhelmed by poor accounting. Make sure you start tracking everything, and prepare your taxes on time. Make use of deductions, document costs and losses, and otherwise handle everything professionally.
Often, it makes sense to partner with a professional accountant. You’ll have to pay for the service, but, in turn, accountants can often pay for themselves by helping you cut down on your tax bill. The extra cash could help you grow your construction firm.
9. Team Up With Smart People
It’s wise for construction startup companies to work with more established professionals. Handling everything from setting up your business processes, such as construction marketing, to handling client pitches can be overwhelming. This is especially true for people who are new to the management and business ownership ranks.
Fortunately, there are trained startup and small business coaches who can help. Consider working with Small Business Growth Partners if you want to get your construction startup started on the right foot.
10. Never Give Up
Most startups face challenges early on. However, by persevering and believing in yourself, you will greatly reduce the risk of failure. Everyone makes mistakes. The greatest business leaders make bad decisions, yet great business leaders know how to stay the course as well. Instead of being beaten down by their mistakes, they learn from them.
Stay Focused, Stay Hungry, Stay Committed
Starting a business is rarely easy. However, by following the above tips, you will be able to greatly increase your chances of success. With the construction industry being so hot, now is the time to launch and grow a startup construction business.