Considering opening a construction business? You’ve worked in the industry for many years and decided to go it alone, recruit some handy professionals, and start making waves in the building world. Is there anything you should know?
Absolutely. There is so much to learn – speak to friends and colleagues first, take a college course if necessary, and take out every book on the business from the library. Once you’ve prepared yourself as much as possible and learned what there is to learn, it will become clear that the three points below are essential for all aspiring construction business owners to know.
- Supply Chain Times Fluctuate
The simplest piece of advice for any new business owner is that very little is ever simple, and supply chains are certainly no different. This can be one of the most frustrating parts of owning a business as it is out of your hands – any issues within your office or on one of your projects can be dealt with in-house, but if there are problems with the supply chain, then you usually just must deal with it.
Supply chains have been in particular disrepair throughout 2022, with nine in ten manufacturers saying their business has been hit. Fluctuating supply times is sadly something your business will have to deal with by itself, so always take this into account when promising customers delivery dates and be prepared to pay extra for express delivery in emergencies.
- Insurance is Essential
No construction company should be without comprehensive insurance to set both customers’ and workers’ minds at ease. There are different types of insurance, all listed and explained at kbdinsurance.com, including liability insurance – if your company causes third-party damage – property insurance – for your trucks and tools, offices and materials – and special insurance, such as builder’s risk and bid bonds.
Operating a business without insurance is akin to driving without car insurance and failing to insure the contents of your home. Not only could it be incredibly costly in event of a fire or theft, but it could also be deemed irresponsible.
- Construction Can Be Dangerous
This will not be new information for anybody who has worked in the construction industry before, but it deserves repeating as it can quickly be forgotten if working on construction sites has become second nature.
Construction is a dangerous industry, and though the government has occupational safety compliance laws and has introduced safety campaigns and specialist training, it is ultimately down to the construction company to make sure work is carried out safely and responsibly.
Regular reviews of your company’s safety measures are essential, and a third-party consultant should be brought in if ever you are unsure if you are meeting the right standards. Covering something up for the sake of not having to change how you operate is risky and could be disastrous.
However, there is no reason why your new construction site can’t be run to the highest of standards, keeping everybody safe and sound. With proper construction insurance in place to cover you in case of an accident or emergency and contingency plans prepared for when supplies are delayed, you are in a fantastic position to succeed in the industry.