Now is a great time to start a construction business. For starters, there is a lack of affordable housing and authorities need to manufacture more. Plus, the money for a tradie has always been very competitive. Then, you have the fact that starting a business has never been easier. When you think about it, starting a new business seems like a no-brainer.
However, that doesn’t mean that you are guaranteed success. No way. There are pitfalls regardless of the industry you choose, and you have to avoid them if you want to be successful. Unfortunately, most people don’t and end up as another statistic. If you don’t want to follow their example, you need to learn from their mistakes.
With that in mind, here are the common construction errors and how to avoid them. Good luck.
Picture the scene. You go to the local authority, you ask for a permit, and they grant you one. So, you set up shop and start to trade as a bona fide construction outfit. But, weeks later the authorities turn up on your door and ask tricky questions. They want to know why you started trading when you didn’t have permission. Sadly, lots of construction outfits make this mistake because they think one license is the same as all the others. It isn’t. There are certain permits that you need, and you need them all if you want to start making money. So, start with a generic business license and move onto industry specific ones. That way, no one will be able to shut you down for being illegitimate.
Honestly, almost every company has this problem, but it affects the construction industry the harshest. The reason is simple: you have expenses than an average firm. Like them, you have to fund your employees, rent business premises, and pay overheads. Unlike them, you also have to pay for licenses and permits, as well as equipment and training programs. And, these additional expenses aren’t one-off payments. If you don’t have the money, it won’t be long before you’re in a bind. So, you need to ensure you add on at least ten percent to your overall budget. That might seem steep, but the chances are it won’t be enough. If you need more, you should consider a low-risk loan or a credit card.
Okay, so it’s fine to cut some corners. After all, not every business strictly adheres to rules and regulations. Still, that doesn’t mean you can bend the rules all of the time as that’s how you get in trouble. If you’re building a house say, you can’t omit a basic feature or swap an essential resource for a low-quality substitute. For one thing, it’s incredibly dangerous. For another, this is how you build a reputation that is irreparable. To avoid cutting corners, you need to stick to your promises. You can also look for a surety bond on www.meadowbrookdirect.com. The contract ensures that you provide the service you say you will, which is why they are popular in construction.
No Health & Safety
When people cut corners, they tend to target health and safety. Businesses understand that it’s the law, but they don’t take it seriously all of the time. You are probably the same because you know that bending down for a paperclip doesn’t constitute a lawsuit. However, running a construction firm isn’t like running an office. There are dangerous materials all over the site, and they can be fatal in the wrong hands. You have to make sure that every person who steps on site follows the rules and regulations to the letter. That means wearing a hard hat even just for the sake of it, or putting on steel toe capped boots. Health and safety aren’t nice or pretty, but they are damn effective.
Not Hiring A Lawyer
Sorry to burst your bubble, but accidents are a way of life on a construction site. No matter how hard you try, you won’t be able to stop them all, which could lead to a lawsuit. Hopefully, your employees won’t feel the need and will sign off immediately. But, if they don’t, you need to lawyer up just in case. Plenty of firms have ended thanks to an employee lawsuit, but that doesn’t have to be the case if you have an attorney. Thanks to their experience and knowledge, they can limit the damage and even dismiss the case. Yes, a good legal team is expensive, yet they will save you money in the future.
Because the industry is so competitive, it’s imperative that you stand out from the crowd. However, lots of businesses feel the need to follow the herd and blend. They do this by offering the same services, pricing the same way, and failing to find a niche. Although these features seem like money-spinners, they aren’t because they are so ubiquitous. People that are interested see the same thing day after day, and they get bored. In truth, they want a firm that is unique. To do that, you need to think about doing things differently. Firstly, sell a product or service that is markedly diverse than everything else. Then, advertise it in a quirky and kooky manner. Finally, add a sense of character. Making people laugh is always a good way to stick out like a sore thumb.
Lack of Communication
Communicating with customers and clients is essential according to http://www.dermascope.com. If you don’t get it right, you will end up arguing and fighting in a ‘he said, she said’ manner. This is the last thing you want because it can derail the whole business. For example, bad communication with your suppliers can lead to job hold ups. In turn, that leads to customer dissatisfaction, which results in a bad reputation. Before you know it, no one will hire you because you have a mark against your name. Whenever you speak to an individual, always make sure they understand your agenda. Then, everything should run smoothly.
At least, that is the plan!