Starting your own business is a big undertaking and you will want to make sure that you get everything right the first time. Many builders and tradespeople dream of one day starting their own construction company and although there is a lot that you need to consider, with the right approach, there’s no reason that you can’t make your dream a reality.
Putting the right foundations in place from the outset is key to ensuring that your construction company is a success. Whether you want to work on small local projects or you have visions of becoming a major player in the Australian construction industry, it’s vital that you do your due diligence to ensure that your business is set up for success from the very beginning. Forming a construction company might seem complex at first, but with enough determination and hard work, you can ensure that your company can stand tall against the competition.
Let’s take a look at just a few things that you will need to consider when you are starting a construction company.
Start With Market Research
Before you go out to buy your hi vis vest and start spending money on equipment and supplies, you need to ensure that your venture is viable. Take some time to research the market where you want to work in advance. If there are already multiple construction companies in operation, you might need to find a different approach or work hard on finding a way to differentiate your company from your future competitors.
Create A Solid Business Plan
As the old adage goes, “failing to plan is planning to fail”. When you are starting a business, you need to have a plan in place from the beginning that outlines your goals, finances, perceived hurdles, target market, marketing strategy and everything else that your business will need to succeed. All of this information should be included in your business plan, which you can then use to help attract investors for your new construction venture.
Register Your Company
There are four main types of business structures that you can choose from in Australia; sole proprietorship, limited liability company, publicly held company or a trust. In order to register your company with the Australian Business Register, first, you need to decide what kind of structure will best suit the needs of your business. When you are registering your business, you can apply for an Australian Business Number (ABN) and a tax file number, which you will need to track your business expenses and tax payments.
Industry Licensing
As you are starting a construction company, you will need to register for the appropriate construction-industry licenses. There is a long list of building and construction licenses and permits that you can choose from, so it’s important that you do your research ahead of time to help you make the right decision. To get started, the most important licenses you will need to look at are the individual contractor’s license, company contractor’s license and high-risk work license. Once you have these three licenses secured, you can start looking at what other documents you might need.
Considering Safety
The construction industry, by its very nature, can be very dangerous so safety should always be a top priority when you’re starting a construction company. It’s important that you outline a safety plan when you are applying for your industry licenses and this document will be important for your business moving forward too. Your construction company will also need to adhere to the general, occupational health and safety requirements as well as specific Workplace Health and Safety requirements that include electrical safety, wearing PPE, noise management, and other necessities designed to keep you, your team and the public safe.
Financing And Hiring
Once you have all of your licensing, registrations and other paperwork in order, you can start seeking out financing for your new construction company. Securing financing can be difficult at first, but with a well-drafted business plan and some potential projects in the pipeline, you should find the funding you need to start work. At this point, you will also need to put together a team that you can rely on moving forward. Be sure to hire individuals that you can trust, that have a proven track record in their particular area of expertise and that are passionate about what they do. With the right team and financing secured, you will be ready to officially open your business and start looking for work.
Get Your New Construction Company Off To The Best Start Possible
There is a lot that goes into starting a construction company in Australia. However, while there is a lot to consider, if you put in the time and effort to get your company set up correctly from the outset, you can be sure that your construction company will have every chance of succeeding. Follow the tips outlined above to ensure you lay the foundations you need to build a successful construction company that will truly stand the test of time.
