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what are the risk and pros to making your own construction company?
what are the pros and cons to building your own company
what different licenses do you need
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Christopher’s Answer
Hello Kevin, the risks of opening a construction company are the high startup costs (equipment, management software, licensing, and insurance) and high operating costs. Financing will be your largest hurdle to overcome so you will want to research grants, loans, partnerships, etc. to find a way to get financing. Depending on what type of construction you are doing you can apply for government grants to help with funding. Decide what area you want to specialize in early on. I would recommend picking a specialty that has a high profit margin.
The pro's and con's to building your own company. Owning your own company is very hard and it is high risk high reward if you can execute correctly.
Pro's - You get to be your own boss, you decide what direction the company goes in, you make the most money in the company, you can sell at a later date after building the business and start a new company or retire
Con's - You will have to work 10-12 hours a day and the company will most likely run your life, the clients are still your boss and they dictate whether you will get more work or get paid, owning your own company is stressful because you are in charge of making sure the company succeeds and the wellbeing of your employees,
Pick a trade to specialize in
Find out the requirements to pass your licensing exam
While you're studying for your license think about what your niche will be and how you will stand apart from your competition
Pass your exam
Get started!
The pro's and con's to building your own company. Owning your own company is very hard and it is high risk high reward if you can execute correctly.
Pro's - You get to be your own boss, you decide what direction the company goes in, you make the most money in the company, you can sell at a later date after building the business and start a new company or retire
Con's - You will have to work 10-12 hours a day and the company will most likely run your life, the clients are still your boss and they dictate whether you will get more work or get paid, owning your own company is stressful because you are in charge of making sure the company succeeds and the wellbeing of your employees,
Christopher recommends the following next steps:
Updated
William’s Answer
Construction is a capital intensive calling for high financing which might call for band guarantees, liquid assets and financial institutions references.
Labour demand is high calling for much hiring and payroll.
Paper works are required for qualification for tenders.
Safety consciousness and administration is a must.
Procurement (buying or hiring) of operational equipment, tools, plants demands higher costs.
Subscription for construction software applications are high for beginners to bear such overhead costs.
If you can get financiers or form partnerships, joint-ventures, consortiums or other forms of alliances to leverage from one another. It can help a lot.
Labour demand is high calling for much hiring and payroll.
Paper works are required for qualification for tenders.
Safety consciousness and administration is a must.
Procurement (buying or hiring) of operational equipment, tools, plants demands higher costs.
Subscription for construction software applications are high for beginners to bear such overhead costs.
If you can get financiers or form partnerships, joint-ventures, consortiums or other forms of alliances to leverage from one another. It can help a lot.