There are many construction companies out there, and competition can be fierce. This is especially true in the current economic downturn. But in good times there are so many potential construction projects available the work is practically guaranteed to be steady. The key to operating any construction firm is defining your market. You need to know whether you are primarily going to build homes or commercial projects. Still, there are many things to consider that will help you profitably operate a construction business.
The first consideration is what rental equipment to use. The use of a backhoe or bulldozer provides you more flexibility when your are bidding for higher-priced jobs such as commercial jobs or public works projects. You will need to find a rental agency with reasonable rates and a wide variety of equipment.
Next, consider hiring temporary workers or college students in the busy summer months. They can help with excavating, carpenter work, drywall installation and other projects. This enables you to keep your labor expenses down.
Always try to meet people who work in the city or county planning offices. They can keep you abreast of any new building projects.
One important consideration when operating a construction business is to know the difference between union and non-union projects when assigning employees to do jobs. Any interstate commercial or public works projects usually need to be done by union workers. Most residential construction is handled by non-union employees so you only need to be concerned with finding quality contractors.
Promote your construction business as much as you can. Develop a good logo and put it on all of your vehicles along with your contact information. Also, pass out business cards to developers, business owners or anyone who could potentially need your services.
You can be more successful if you specialize in a certain market of the construction industry. Some people focus on condominiums or perhaps on green or solar projects. The more specialized your construction business the greater your chances of continued success.
You will need someone to keep good records of the finances. Paying contractors and collecting payments are a big part of your construction business. Set time limits for money that is due to you, and make sure that everything is explicit in the contract.