Looking to leverage your skills in construction to set out alone and start a contracting business? Steady demand, varied daily tasks and flexibility with working hours are just a few benefits you can look forward to, but you need to prepare properly to be successful from the start. Discover the three essential steps to setting up a contracting business that will go the distance.
- Research and planning
Before you officially set up your business, conduct research to identify your target market and the competitors in your area. Make note of the most requested services, considering any gaps in the market that you could fill. Use this information to define your unique selling points that will attract customers and help you stand out against other businesses in the industry.
Armed with this knowledge, create a detailed business plan outlining your goals, services offered, pricing and marketing strategy. Include cost and profit projections, seeking financial advice if necessary, to help ensure you stay in the black. You want to ensure that you at least break even in your first year, and a solid business plan will support your case if you need to seek funding.
- Legal requirements
Avoid fines and damage to your reputation by prioritising legal requirements at all times. Initially, these include government guidelines for setting up an independent company, business insurance and finding out how to organise permits for your jobs – and when they’re needed.
You’ll also have to consider employee rights including mandatory leave allowance, salary minimums and your duty to protect them from dangerous circumstances. The latter is especially important for businesses in the construction industry because there is a real risk of life-changing injury or even fatalities if health and safety procedures are inadequate.
- Essential equipment
Acquiring the right equipment is essential for delivering quality services and maintaining efficiency, whether you’re operating solo or working with a team alongside you.
Make a list of the basic gear needed for your trade. This should include Personal Protective Equipment (PPE) such as safety goggles and gloves, helmets and sturdy work boots. You’ll also need to stock your toolbox: include measuring devices like a rotating laser level, hand tools such as screwdrivers, wrenches, pliers and hammers, and power tools including a drill, driver and various saws.
Consider storage for your equipment so it stays in excellent condition as the cost of frequent replacements will soon add up. Choose a dry and temperate space with plenty of room such as a garage and fit a quality lock on the door so tools won’t be tampered with – whether accidentally or on purpose.