The construction industry is a profitable one that can benefit entrepreneurs. In fact, according to the National Association of Home Builders, the average gross margin for a home builder is about 20 percent. Furthermore, the construction industry has been steadily growing in recent years; according to statistics from the Bureau of Labor Statistics, the industry will grow by about 12 percent between 2016 and 2026. This growth presents opportunities for entrepreneurs looking to start or grow their construction businesses.
The construction industry is also relatively stable; while the economy has ups and downs, people will always need homes and businesses constructed. Finally, the construction industry is relatively recession-proof; when the economy dips, people are still more likely to invest in home improvements and new companies than other investments.
All these factors make being a part of the construction industry a wise decision for entrepreneurs. Take advantage of this growing industry if you want to start or grow your construction business! However, your construction startup will have to invest in various services to succeed, especially when you don’t have the financial resources yet. Here are a few to consider.
Heavy Equipment Rental
One service your construction startup will need is heavy equipment rental. Many construction projects require large, expensive machines that most startups cannot afford to purchase outright. Fortunately, many companies offer heavy equipment rental services. This service allows you to get the machines you need for your project without making a significant upfront investment.
When choosing a heavy equipment rental company, compare rates and terms from several providers. You’ll also want to make sure that the company you select has the specific type of equipment you need for your project.
It will also be necessary to identify what pieces of heavy equipment you need for the job. You can invest in a wide variety of equipment, but ensure you only get what you need. Overbuying can tie up your finances and leave you with expensive machines that sit idle.
Construction Insurance
Another essential service for your construction startup is insurance. Construction work comes with many risks, so it’s necessary to protect your business adequately. Many types of insurance are available for construction businesses, so understand your options before selecting a policy.
Some of the most common types of construction insurance include general liability insurance, workers’ compensation insurance, and builder’s risk insurance. General liability insurance protects your business from third-party claims arising from injuries or property damage. Workers’ compensation insurance benefits employees who get injured on the job. Builder’s risk insurance protects your business from losses due to damage to the property you’re working on and your workers.
You may also need other types of insurance, depending on the specific nature of your business. Make sure you understand all the risks associated with your company and purchase the appropriate insurance policies.
Construction Workforce
To construct homes and buildings, you will need a construction workforce. This consists of the various tradespeople who perform the actual work required to complete the project.
You have several options for obtaining a construction workforce. You can hire employees directly, use subcontractors, or combine the two. Each option has advantages and disadvantages, so you’ll need to evaluate your specific needs before deciding.
You’ll need to invest in training and development if you hire employees directly. You’ll also be responsible for managing these employees and ensuring they’re productive. Hiring subcontractors can be more expensive, but it may save you time and hassle in the long run.
No matter how you obtain your construction workforce, ensure you have the people to complete your project. Otherwise, you’ll end up facing delays and cost overruns.
Project Management Software
Another service your construction startup will need is project management software. This software helps you plan, schedule, and track your construction projects. It’s essential to keep your projects on track and ensure they’re completed on time and within budget.
There are many different types of project management software available, so choosing one that suits your specific needs is essential. You’ll also want to ensure that the software is easy to use and understand. Otherwise, you won’t get the full benefit from it.
Get quotes from several providers before selecting a project management software for your business. Compare features and prices to find the best value for your needs.
Final Thoughts
These are just a few essential services your construction startup will need. You’ll likely face delays, cost overruns, and other problems without these services. However, it is necessary to partner with reputable providers to avoid further issues. Still, these services will help you get your business and ensure its success.
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