Construction startups are very popular business ideas as they present a great chance of making money. However, there are many problems that face these startups within the first twelve months of inception. Today, I’ll talk about the main problems and how you can solve them.
Lack Of Money
I find that many construction startups struggle for money. When you look a little deeper, the reason for this becomes clear. It all revolves around their expensive equipment. It’s no secret that starting a construction company means you need a lot of costly equipment like backhoes and cement mixers, etc. But, the wrong thing to do is to buy these vehicles outright. This will cost you way too much money, and it results in depleted funds.
The solution to this problem is simple, don’t buy, rent! It’s much more cost-effective to rent things over buying them. If you hire a backhoe, you pay for the length of time you need it. So, when a job is done, your payment stops. The same applies to every other piece of construction equipment, renting means you don’t pay when you aren’t using it. If you buy everything, then there are times when you might not be using it. So, it’s a waste of money. Save your cash and rent the expensive equipment you need.
Another major problem is a lack of productivity from workers. Every construction business depends on its employees to work as fast and efficiently as possible. When this doesn’t happen, you have a problem. It means projects take longer to finish, and customers aren’t satisfied. For example, if you’re building someone’s house, they want it done in a set timeframe. If you’re outside of it, they won’t be impressed. What does this mean? It means you’re getting bad reviews, and you’ll struggle to find future customers.
To solve this issue, you have to look at your hiring process. Consider hiring new employees that you know are productive. How do you know this? You carry out research into their previous careers. If they have a glittering past on the construction scene, you know they’ll be a good hire. Another thing you should do is ensure your supervisors are making everyone work. If they’re being lazy and not doing their job, then neither will the rest of your team.
One of the worst problems for a construction company is issues with safety. Construction sites have to be safe, or else you’re in trouble. When an accident happens, it falls on the business owners shoulders to take responsibility. Many construction startups have shut down because of one simple accident. Often, it’s an accident that could easily have been avoided.
Ensure this problem doesn’t happen by improving the safety of your construction company. Make sure everyone wears the correct safety equipment at all times. Test all of your equipment and machinery to ensure it’s safe for use. Go above and beyond what’s required to make it the safest place possible and avoid accidents.
Solve these problems and your construction business will find it easier to stay afloat. Get through the first year of business unscathed, and it will be easier to be successful.