5 Crucial Steps When Building a Startup Construction Business
The construction industry has been undergoing a significant shift lately. New technologies and new modes of contracting are driving the growth of home building startups.
No wonder why more and more young professionals are aspiring to build a construction startup of their own. While there is a plethora of information available online about how to set up a startup, there is very little information about what needs to be done before you even begin.
Building a construction startup is no easy feat. It requires a lot of hustle and elbow grease, but many have made it. Here’s how you can get your construction business off the ground.
- Have a Solid Business Plan
While this may seem like common sense, the majority of entrepreneurs overlook the importance of having a solid business plan. It’s not enough that it’s solid. It has to be a perfect blueprint of what you intend to achieve. Your business plan should clearly define your business model and your vision.
A business plan must take into account all aspects of a construction startup. It must also include timelines, financial projections, and your overall goals. You should also make sure you include your background and qualifications in your business plan, and it has a well-written executive summary.
- Find the Perfect Home Base for Your Business
You can’t just pick any old place as a home base for your business. When planning a construction startup, you have to get a suitable one. You need a place that is comfortable, accessible and sustainable. Moreover, you should also consider the local laws when choosing a location.
Construction businesses require tools and supplies to complete their work. As such, you should put your mind to getting a place that is easily accessible to suppliers and contractors.
- Sort Out All the Legal Requirements You Need
If you want your construction startup to take off successfully, you have to ensure all your legal requirements are sorted out. You need to have all required permits and licenses in place before you begin.
Most construction projects require building permits. You may need to get an environmental clearance from your local authorities in some cases.
Understanding these legal requirements is one of the important keys to your construction business. You should also make sure you have a valid insurance policy before launching.
- Understand Your Tax Requirements
The UK has very complex tax requirements. Depending on your construction business model, you may need to register for VAT. You’ll also need to pay council tax.
If your business is registered with HMRC, you’ll pay corporation tax. There are also other taxes that you need to pay. Depending on your income, you may need to pay income tax.
The income tax system in the UK has several tax bands. Depending on your income and taxable income, you’ll be charged at different rates. Depending on your status, you may also be subject to national insurance.
- Know Your Insurance Responsibilities
It’s very important to understand the kind of insurance coverage you need. The nature of your business determines the kind of insurance cover you need. Construction businesses come in different forms.
Some businesses may require general liability insurance and professional indemnity insurance. In the UK, you have to have public liability insurance.
If you ever have any claims from workers, you will have to have a workers compensation insurance. You also have to have public and products liability insurance.
Get it Done Right the First Time
Building a construction business is a challenging task. It’s even more difficult for first-time startup owners. Follow the above tips to build your construction business successfully.
As a startup, you also need to buy construction machinery and get your money’s worth out of it. Construction Equipment UK specialises in supplying from the European continent to the North and South American market. Get in touch with us!