You’ve been working in the construction industry for a while, and you know the ropes. You’re qualified, trained and experienced in a number of areas, and enjoy working on various projects and building sites as your job.
But maybe things have got a little boring, or perhaps you want to really take your career to the next level? If so, how about starting up your own business?
You might be able to make fantastic money as a tradesperson, but having your own team, company, and equipment for clients to be able to hire you for larger projects will allow you to reel in some serious cash. If this is something you’re looking to do, here are some things to bear in mind.
Obtain Licenses and Insurance
With any business, you need to have the correct licenses and insurances to cover your own back. However, in the construction industry, it’s especially important since there are a number of additional health and safety risks. If you employ workers directly, you’ll need several types of business insurance.
These include general liability insurance, vehicle insurance, and property insurance. If you’re running your business headquarters from your home, it goes without saying that you will need a home business permit too.
Setting up a construction company comes with high costs, due to the type of equipment that’s needed. Tools and vehicles can be incredibly expensive, then there are ‘hidden’ costs you might not have thought of such as fuelling the vehicles too.
While companies like Fuelbox give you the chance to pay by direct debit to spread the cost, it’s still something to bear in mind when you’re working out your finances.
Generally, the client or customer’s deposit will cover the purchase of materials, but you need everything else to ensure you can get the job done. So startup costs are likely to be high. You could consider a business loan, or research what kind of help is out there for new businesses.
One of the main considerations you will need to think about when hiring workers is whether you will be employing them directly or if they will be self-employed. There are pros and cons to both, so it’s something you will need to work out to see what’s right for you.
Hiring employees can be complicated as you’re required by law to cover them for things like holidays, sick pay, pensions, and you can’t simply ask them to leave if you no longer require their services. However, you’re guaranteed workers, unlike self-employed people who don’t hold as much loyalty to you.
Those who already work for themselves but are provided work by you can always take off and leave at a moments notice if a better offer comes along leaving you in the lurch if you need their skills for a project.
Are you planning on starting up a business in the construction industry? What kinds of pitfalls are you hoping to avoid?
This post has been contributed by Ryan Gatt, it may contain affiliate links.