After a long slumber caused by the outbreak of COVID-19 Australian construction sector is finally getting back on its feet. So, if you wanted to start your own gig, the time now is probably better than it was in years – according to recent surveys, the construction now makes about 9% of Australia’s GDP and is projected to experience a stable 2.4% growth over the next five years. Even though our focus here is on starting a construction company in Australia, for those entrepreneurs who are considering expanding or starting a company in the United States, it’s crucial to understand the benefit of a Limited Liability Company (LLC). For top-notch professional assistance, check out these best LLC services to ensure your business venture is off to a firm start.
Still, even the most favorable circumstances are not a guarantee for success, and starting a profitable construction company requires a lot of time, patience, and thorough preparation. Let’s take a look then at a couple of steps that should help you take off on a right foot.
Conduct a thorough market research
This is an absolute must if you want to avoid assessing the market profile, structure, and capacity by crashlanding your business into it. So, be sure to do your homework and find the niches your company could potentially exploit. Local demographics, salary profiles, business outlook, and community profile can have a tremendous influence on what types of construction projects will be in demand, and as a result, the future of your company.
Pen down a detailed business plans
Now, when you know what exactly you are dealing with, it is time to write down a thorough business plan that will serve both as a blueprint for your future company as well as a reference point you can use to see how well you are doing at any given moment. A typical business plan usually consists of the following entries and you must learn what it all means to your business:
- Ownership structure
- Business model
- Long-term and short-term objectives
- Management structure
- Mission statement
- Target market
- Types of projects and revenue model
- Employee roles
- Marketing strategy
- Financial milestones
Sort out the legal issues
By that, we are, of course, talking about taking all necessary legal steps to make sure your company is registered under Australian authorities. Fortunately, the very application process is very streamlined and you will be able to handle most of the paperwork like getting an ABN and registering for GST by visiting the national Business Registration Service website. Once you do that, start looking for industry-specific licenses like:
- High-risk work license
- Company contractor license
- Individual contractor licenses
Secure stable financing
The construction sector is a very profitable industry but doesn’t change the fact the investments you will need to make upfront are more than considerable and that establishing a stable market position will take some time. With that in mind, it is in your best interest to secure financing that will be able to cover at least six months’ worth of bills, salaries, and operational costs. Usually, this involves some form of traditional business loans, government grants, or angel investors.
Set up an airtight workflow
The workflow will be the backbone of your future company so it is absolutely necessary that you make this critical asset as airtight and efficient as possible. So, break down all of the business facets to individual activities and see how you can refine them. For instance, your business fleet can greatly benefit from the construction equipment fleet management software. When you are finished, put these components back into the workflow in a way that will encourage a higher level of autonomy and mutual independence.
Acquire the necessary equipment
The choice of the tools you are going to use will largely depend on the construction projects you are going to partake in. Since, as we mentioned earlier, construction equipment requires considerable funds, we suggest that you focus your activities only on a certain type of project, reach a high level of proficiency and market presence in this sector, and only then branch out to other construction industry submarkets.
Meet necessary safety requirements
With one out of five workplace fatalities occurring on construction sites (US data), the construction sector probably makes one of the most hazardous industries in existence. That is why you will need to do three things. First, research the guidelines and requirements provided by the government and apply for necessary licenses. Second, provide thorough training and worksite safety guidelines. Finally, make sure your workers have access to the best possible safety equipment.
Hire the top-tier staff
This may prove to be harder than it seems since Australia is experiencing a very serious workforce shortage. But, make no compromises here – you absolutely need to hire the best professionals in the industry, and if flexible work hours, higher bonuses, or various workplace perks are the way to get them don’t hesitate to use any of these strategies.
Start marketing your company prior to launch
Ideally, your target customers should already have a pretty good idea about your portfolio and services even before you launch. To do that, you can use traditional assets like social media actions, blogging, email marketing, Google PPCs, and, why not, even a couple of guerrilla marketing stunts. Referral programs and top-tier customer service should keep these people enticed once they start using your services.
Outsource non-critical departments
We are talking about the things like bookkeeping, accounting, HR, and similar. The present-day market, although recovering is still very volatile and you need to keep your company as nimble and light on the feet as possible. Therefore, focus on the activities that are generating revenue and don’t waste your time and resources developing services you can easily find elsewhere.
So, there you have it – ten steps you will need to take to launch your construction company in Australia. Of course, these couple of mentions are only a blueprint and each of the sections can be explored in greater depth and we encourage you to do so. But, now you know in which direction to and as long as that’s the case every step you make will be a step forward.