A guide for launching a construction business, covering key steps like building a brand, choosing the right business structure, and setting up financial systems.
Date Written:
October 21, 2024
DISCLAIMER: The views expressed herein are based on personal experience and observation. It is advisable to conduct your own due diligence before making decisions for yourself and your business as every individuals circumstance are different.
Starting a construction business can be both rewarding and challenging, but with careful planning and the right steps, you can set yourself up for long-term success. Below is a guide on how to best start your construction business, from choosing the right structure to securing work and growing your company.
Your first step is deciding how to structure your business. The most common options are:
Financial management is critical in construction. As a sole trader, services like Hnry can manage your taxes and compliance easily. If you're running a company, you’ll need both an accountant and a bookkeeper. An accountant will handle your tax obligations and help set up financial systems, while a bookkeeper manages day-to-day transactions, GST returns, and financial reporting.
Additionally, it’s smart to have at least three months of cash reserves to cover personal expenses and fund upcoming projects, ensuring stability in the early stages.
Branding is essential in construction, as it demonstrates professionalism and helps attract clients. A brand also makes it easier for clients to remember your services and contact you for future projects. A well-designed website and branded paperwork build trust with new clients by showing that you’re serious about your business.
When creating your brand, consider your goals, how you want people to perceive your business, and the long-term impact of your choices. From logos to color schemes, your brand will be with you for years, so it’s worth investing in a package that reflects your ambition and professionalism.
Securing jobs is an ongoing effort in construction. Start by reaching out to friends and family, as word-of-mouth is powerful in New Zealand. Facebook groups are also great places to find principal contractors looking for subcontractors. Networking is key—be the "mate with a construction company" that people know they can rely on.
To eventually take on insurance and council work, you’ll need to invest in public liability insurance and develop solid health and safety systems.
Once you’ve lined up some work, it's time to register your company if you haven’t already. Here’s a quick checklist for this stage:
After you’ve registered, reconnect with your client to finalise the quote and work schedule and get ready to start.
As you establish your business, it's important to focus on the 7 key metrics that clients judge construction companies by:
While cost, quality, and speed are typically the most important to clients, the other metrics become critical in long-term relationships and larger projects. Consistently delivering on these metrics will help you build a reputation for reliability and professionalism, increasing the value of your brand.
At the end of the day, business success is about finding the work, doing the work, and repeating the process. As your company grows, so will the size and complexity of your jobs. To compete in higher-value markets, you’ll need to develop internal infrastructure for things like health and safety, human resources, and more.
Starting a construction business requires careful planning, but by following these steps, you’ll lay a strong foundation for success. Focus on building a solid brand, managing your finances well, and delivering consistent results on every project. As you grow, the work you take on will expand in size and scope, allowing your business to flourish.
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