At first glance, it may seem like an overwhelming task to create a business without a predominantly large budget. Many are afraid of risk and give up as soon as they begin to think: where to start, how to properly build a business, what kind of premises are needed, how to promote trade, and so on, so on, so on.
How to open a construction company from scratch, the step-by-step instructions of which do not guarantee 100% success?
But there is no need to focus on victorious success from the start; most businessmen experienced difficulties, however, they achieved what they wanted thanks to a clear business plan detailed in detail. The growth of registered construction companies has increased, all because they began to build new buildings, patch roads, etc. quite rapidly. But don’t really hope that you will immediately have a demand for the company’s services. To do this, firstly, you need the necessary equipment and a large warehouse of goods, and secondly, you need at least some experience and connections.
In order to figure out what it takes to open a construction company, stick to the following plan:
- Draw up a detailed business plan;
- Prepare the necessary documents for business registration;
- Purchase of machinery and equipment;
- Hiring employees;
- Increasing your customer base by searching through an electronic directory or other means.
Documents for registering a construction company
If you decide to patent yourself as an individual entrepreneur, you will need to have the following documents on hand:
- Extract from the Unified State Register of Individual Entrepreneurs;
- Obtain a registration number in OGRNIP;
- Document on registration with the tax authorities;
- Certificate of issue of codes from Rosstat;
- Registration with a pension fund.
When registering yourself as an LLC, you receive the following documents:
- LLC registration certificate;
- Certificate of registration in TFOMS;
- Extract from the Unified State Register of Legal Entities;
- Certificate in form 1-3 Accounting;
- A document confirming registration with the pension fund;
- LLC Charter;
- Document from the issuance of codes from Rosstat.
Choosing your direction
Along with numerous construction works, the new company must decide in which direction to open its business. These can be three areas of activity:
- Road construction (road repair and construction, highways);
- Civil engineering (residential real estate);
- Industrial construction (buildings for industrial purposes).
If you are planning to engage in the road construction industry, then keep in mind that at the start of your business, these works will require a large amount of capital investment in their implementation, and it would also be a good idea to have established connections in certain authorities. Although this industry pays the most, it has long been supervised by government services, which means that competitors will have great authority among customers.
Your company will only benefit from a number of additional services. Do an analysis of competitors and make your own proposals, distinguishable from everyone else. This can be any additional service. For example, only your company, after construction work, removes garbage for free. A good idea would be to purchase an exceptional, rare product that is difficult to find on the market.
Where to open: Countryside or city center
There is no clear answer to this question. Everything again depends on the financial base. If you want to open a company in a large metropolis, you will most likely have to face competitors, and besides, you will need an impressive amount. But income in the city center is also greater than outside the city zone. But remote areas or small towns, although they do not promise large, highly paid orders, provide a high percentage of the entrepreneur’s stability.
A construction company, like many companies in any other industry, has seasonal sales throughout the year.
For example, in winter, when weather conditions suspend the construction of houses and external finishing work. But it is worth remembering that “you always want to eat” and employees must be paid. Therefore, you need to seriously think about where to find customers for your product:
- A modern and effective way to find clients is a press monitoring tool, i.e. searching for information related to this topic. This is done by specially trained managers who actively make unscheduled calls for the client in order to purchase goods or services. And also send emails with offers and recommendations.
- Leaflets and the word “promotion” on the store window are also of great importance; they may not attract large customers, but they will force local residents to pay attention.
- When talking about advertising, you need to understand that it requires a large budget, and whether it will be successful is not guaranteed, since the company is new and has not yet patented itself as experienced and reliable. Therefore, participation in any tenders or having a page on social networks will be enough.
Promote your company and your brand, inform everyone possible and impossible about your opening and your capabilities. Speak loudly, but don't be intrusive. Learn to correctly present and convince clients that it is profitable to buy from you.
New equipment
If you do not have the financial resources for machinery and equipment, then there are two options to solve this problem. There are a lot of advertisements on the Internet where they offer to rent equipment, which at first makes it possible to save on its purchase. You can also use the purchase of used equipment, for example, the most necessary ones.
Joining a self-regulatory organization
Perhaps by joining a self-regulatory organization of builders you will have more success, because this gives you the right to:
- Have an unlicensed trade;
- All quality certificates in accordance with all standards;
- An entrepreneur can use (if it is an emergency) the compensation fund.
- But on the other hand, and in particular small companies, they may already have a good stable income, and the amount for joining an SRO may be prohibitive for the opening company.
Which areas in construction may not be included in the SRO:
- Installation of structures (window openings and doors);
- Repair and finishing works.
When the business begins to develop successfully, you can add services, thereby expanding your income.
This could include training courses to become a builder, or renting out your equipment.
A true newcomer to a construction company will have a tough time, he will need to have a persistent and disruptive character, thanks to which he will be able to achieve large potential orders. But first of all, the main thing in the construction market is to earn the trust of clients and create a reputation as a reliable and promising company.