Around eight percent of the construction companies that start out don’t make it within five years of their inception. That is an incredible statistic that shows just how hard it is to make it in construction. Or is it? Yes, it is a daunting figure, but there is a sense within the industry that a lot of businesses are the architects of their downfall. Here is how you make sure that you don’t fall into the same category.
Create a realistic business plan
First and foremost, you need a business plan. You need to know what you want to achieve and how you are going to achieve your goals. You cannot do it without putting it down on paper or setting those goals clearly in your mind’s eye. As you plan your attack, however, you need to make sure that it is not idealistic. There is no point making a plan of goals that you want to hit from them to be unattainable. Your business will not succeed, and it will soon fail.
Don’t get a loan
Well, you can get a loan because loans are important within the construction industry. It is not a cheap industry to be a part of, and you won’t always have the cash. But, don’t loan all the money you need because it will start to become a problem. As you begin to make sales and profit, it will all leak out in the form of repaying interest. If your company doesn’t make a ridiculous amount of money, you won’t be able to take a wage or pay your employees.
Within this day and age certifications and qualifications have become a big deal. To be honest, they have always been a big deal, but now more so than ever because of the number of startup companies. Whereas new companies used to be few and far between back in the day, they are increasingly common in 2015. As a result, certifications and qualifications are important to validate your business. Plus, in construction you need licences to perform tasks. If you don’t have them, you are liable for huge fines and penalties.
Invest in quality
Your equipment is your livelihood, so make sure you buy the best possible equipment you can. Also, try and buy specific equipment that will make the job easier, and that doesn’t just mean onsite. You can always buy a vehicle and accessories that performs its primary function and adds to your business. Commercial truck bodies are the perfect example because your truck still gets you from A to B, but the body allows you to load materials and equipment.
Don’t always say yes
If you are a startup, there is a tendency to say yes to every piece of business you come across because the market is so tough. But, if you take on too much work you will overextend yourself and run your business into the ground.
There you have it. That’s how to succeed in construction.