Construction Startup Essentials: 4 Crucial Prep Stages
The construction sector plays a vital role in the modern UK economy, employing around two million people. It’s an industry that’s hugely consequential for the wider economy since the buildings we inhabit play a significant role in determining our productivity and general quality of life.
If you’ve got the required skillset, then you might be tempted to launch your own startup in the construction sector. But before doing so, it’s worth taking the time to assess all the legal requirements involved and to ensure that your fledgeling business is able to cope with the administrative and technical stresses put on it.
Let’s run through four crucial stages of preparation that you’ll want to undergo before you get your startup off the ground.
Planning Your Business
Every successful business starts with a business plan. This is a document that will outline your ambitions and how you intend to achieve them. It’s something that will be regularly updated throughout the lifespan of your business.
You’ll need to think also about how your business will be structured. Will you be working as a sole trader, or in a partnership? Are you going to limit your liability by selling shares in your business to third parties? The answers to these questions will change the level of risk you’re exposed to, and your eventual strategy.
Research and Marketing
If you’re going to be successful, then you’ll need to offer something that customers can’t get from the existing market. Differentiating yourself means researching the market as it currently stands and looking for niches that have yet to be filled. Then, you might develop your marketing strategy accordingly.
Cover Your Legal Bases
When you’re working in construction, you’ll understandably have a lot of regulatory burdens to shoulder. You’ll need to make sure that you’re registered for income tax self-assessment if you’re a sole trader, partner, or director. If you’re above the VAT threshold, you’ll also need to register for VAT. The workers you employ will need to be qualified for the work they’re carrying out, and you’ll need to stay on the right side of building regulations. As the owner of the business, you’ll ultimately be responsible for everything that it does. As such, if there is a problem, the buck stops with you.
To limit your risk, it’s worth investing in specialized builder’s insurance. That way, if something does happen, it won’t be a complete disaster.
Money matters, especially during the first few months and years of your business’s life. If you lack the capital to get the ball rolling, you might consider outside finance, through loans. This will ensure that you are making the best investments in the long term. For example, you might seek to buy better quality equipment, in order to avoid having to pay the costs associated with cheaper stuff.