Should I Set Up A Business In The Construction Industry?
If you have years of experience and expertise in the construction industry, why not take the leap from employee to boss by establishing your own company? Construction businesses face a range of specific drawbacks and issues meaning it’s not the easiest industry to get established in in business, but there are some incredible benefits. Here are some of the pros and cons of setting up a construction company!
Pros: Potential to Earn a Lot of Money
Any business can grow and earn a lot of money, but when it comes to construction, you have the potential to earn massive profits. Construction projects are usually large, meaning clients and customers spend a lot of money to get them done. Since you will be sourcing materials from suppliers at a reduced rate it gives you the opportunity to earn lots of profit. When it comes to business, the bottom line is always profit. Pouring your time and energy into something you love is of course great, but you do it all to earn a living. So going into the kind of business that allows you to earn big bucks is worth considering.
Cons: Expensive To Start Up
One of the biggest downsides when it comes to getting a construction business off the ground are the large startup costs. Most businesses will need a few computers, printers and some stationery. Your business will need diggers, cherry pickers, and cranes on top of cement mixers, power tools and other incredibly expensive equipment. However, if you can’t afford to buy outright you do have other options. You could look into financing allowing you to buy new and spread the cost. You could look into hiring, whether it’s a digger, mixer, roller or mobile crane hire company. This can be beneficial when you’re starting up as if any breakdowns occur, providing they weren’t your fault they will be fixed for free by the company who owns them. That way you don’t have to factor breakdown costs into your budget. Alternatively, you could scour auctions and online sites and try to find good deals on second-hand equipment. The benefit of this is a lower cost to buy outright but potentially mean more fixing things that could go wrong. If you don’t have a lot of money to get going, there’s no doubt that it can be tricky getting started in the construction industry. You could look for investors, for a business partner, a loan or other funding options which will allow you to maximize your revenue and make it easier to get things off the ground.
Pros: Business is Booming
After suffering a net loss of over two million jobs in the past ten years with the recession, the construction industry took a massive hit. With no money for luxuries, projects were put on hold. No one could afford new houses, so they weren’t being built, new shops were put on hold, and people were stopping having things like construction projects done on their home. However since things have picked up, the construction industry is booming again. Whether it’s commercial or domestic, there’s always a call for builders and construction companies these days, so you won’t be short on work.
Cons: Health and Safety
Every workplace has issues with health and safety. Even somewhere considered very safe like an office you still have fire drills and tripping hazards to think about. But on a building site, there are particular health risks to worry about. Falling from heights, tripping on rubble or unfinished flooring, being hit on the head from above, the dangers that come with driving heavy duty vehicles, accidents with machinery or power tools. As the boss of a construction company you need to be up to date and incredibly strict with your health and safety. All workers should have the correct certification before even stepping on site, and the correct clothing needs to be worn. Hard hats, steel toe cap boots, high visibility vests and then ear/ eyewear and gloves if needed. An accident caused by your negligence could have massive repercussions on your business, a lawsuit could leave you penniless and your reputation could be damaged too. It’s an area of your business that needs to be taken incredibly seriously.
Pros: Satisfying Work
As a construction company, you will be creating things from scratch. You will be creating buildings that people will be using for decades, homes that people will grow up and live their lives in. You will be making useful, incredible structures that people need and will get use from. Finishing up a project is an extremely satisfying moment, and is something that few other businesses have the joy of doing.
Cons: Bad Weather
The problem about construction work is that it’s outdoors. You start with a building site, and by the time the structure is finished, it’s the end of the project. What this means is you’re out in the elements. Certain tradesmen- electricians, builders etc aren’t able to work when it’s raining. If you live in a part of the world where it rains a lot this can be a problem. Snow and ice can also mean conditions are unsuitable for workers. This means there are often a few months out of the year where projects have to be put on hold or not started until the spring. It’s something you have to account for as the boss of a construction company. You need to ensure you’re earning enough and making enough money throughout the rest of the year to account for this time off.
Setting up a business in the construction industry is hard work, and it’s not all plain sailing. But if you have the knowledge and experience and the skills to make it work, it’s a fantastic way to earn a lot of money, doing something worthwhile.
Are you considering starting a business in the construction industry? What concerns do you have about this new venture?