It is no secret that our country’s construction industry is rapidly progressing. With our country experiencing a burgeoning economy, more and more investors and entrepreneurs are investing in new ventures. Due to this, the real estate sector is facing a huge demand of projects especially in urban areas across the Philippines.
In light of this positive trend, more and more outfits are also interested in developing their own construction business. However, with just like any other venture, you’ve to consider plenty of factors before starting your own construction company.
In this article, we give you an overview of the things that you should prepare and/or do once you’ve decided to put up a construction company. Here’s everything that you should know:
Create a Business Plan
Of course, don’t start any kind of business if you don’t have a business plan. A business plan will help you assess a wide range of things that include the ever-crucial project expense and ROI, making it easier for you to stay on track with everything that you want to achieve. Make sure to be very specific about your goals and the method that you will be using to achieve them.
Apply for Financing Help to Obtain Funds
Most entrepreneurs rely greatly on financing companies in order for them to obtain the essential funding for to put up their construction business. To avail of this option, you will need to present the pertinent details of your business plan to a financial institution. Pay attention to their interest rates, loan options, and their various terms and conditions.
A caveat: As stated above, in order to convince a financial institution to grant your loan application, you have to share the details that guarantee that your business is a foolproof one.
Study Your Local Regulations
Next on our list is to check government regulations in terms of governing construction companies. It is important that you are familiar with, register, and follow the policies in order to be legally recognized in the industry. The government bodies in your locale will let you know whether or not you are qualified to provide services to prospective clients.
During this time, make sure also to process all the necessary business licenses, including your business identification number.
Invest in Construction Equipment and Tools
Tools and construction machinery are the primary components of a construction outfit. From basic construction tools such as ladders, hammers, and drills to more advanced and gigantic equipment like excavators, cranes, and bulldozers, you definitely can’t start serving customers if you don’t have the right tools and equipment for a construction project.
While construction machinery is extremely expensive, there are already plenty of methods on how you can acquire them without punching a massive hole on your finances. Besides buying pre-owned ones, you can also consider renting them instead. Moreover, take note that when it comes to choosing the right equipment, there are a lot of factors to consider besides a machine’s price and specifications. As a matter of fact, you may even need to consider the availability of truck spare parts in the Philippines before obtaining the equipment.
Hire the Right People
It’s not a secret that construction sites are accident-prone areas. Anything bad can happen if the workers are careless. Of course, we don’t want accidents to happen to our employees and one of the ways to greatly minimize the chances of those from ever happening is hiring the right people to be part of your team. Don’t just hire people willy-nilly because you need to do a project and you are short on time; scrutinize the skills of applicants and assess if they are fit for the job.
The same process must be done when selecting operators for massive, heavy-duty equipment. Construction machinery, when not properly utilized, can result to life-threatening accidents. To say nothing of the fact that mishaps involving humongous machinery can cost you significant sums just so you can repair them. Hiring experienced and skillful operators can help make the construction site a safer place to work in.
Advertise Your Company
Since you are a newbie to the industry, consumers are, naturally, oblivious of your company. To be able to gain customers, you will need to advertise your company to the public through various channels such as TV and radio commercials, billboards, flyers, and the like.
And if you haven’t noticed yet, social media platforms like Facebook, Twitter, Pinterest, and Instagram are also becoming more popular in terms of promoting businesses. Having profiles on social media is also a great way of connecting with customers. With most people and companies adopting social media, this platform can be a good marketing strategy for your business.
Follow these tips and you will have your construction business in no time.