The construction sector makes up the largest number of small business owners in Australia, with over 300,000 business owners taking the leap and going it alone. But what are some of the questions you need to answer before you do, and what are some of the problems you will face? We spoke to some construction business owners registered with ConX and here is what we found.
Access to Capital
The early stages of setting up a business are cost heavy, with competitive pricing to win jobs over competitors affecting the bottom line early on. Depending on the makeup of your team, buying tools and hardware, and secure storage to keep them will all cost. Access to capital and credit is a must, so do some research to see what is the best deal for you out there for you and your business.
Setting up your technical toolbelt
Balancing the books and managing your finances is key when running your own construction business. Pretty soon you will be swamped with invoices, work orders, petty cash refunds, parking fines (if your unlucky!) and not to mention wages for your staff. Once you lose track of where you’re at, it can be a nightmare to get back to square one, and can cost you a lot of money by calling in big gun accountants to help out. Sort it all out on day one and save yourself the hassle. There are a ton of accounting and estimating tools out there to help day to day, download them and try them out. Accounting services like Xero and invoicing services like Invoice2Go are very popular, find whats the best for you and your business
Preparing for growth
You never know what’s around the corner, good or bad. But the last thing you want is to be turning down a profitable job because you haven’t planned ahead properly. Prepare for growth by recruiting properly and setting up your team to scale out, ConX is set up for small business owners to be able to find skilled trades ahead of time, so you are not running around last minute to find quality guys. Plan ahead and save stress when you least need it.
Making sure you’re legit
Obtaining your licenses, the correct insurances for small businesses based on the jobs you are looking to take on, and registering your company name correctly are all absolutely essential. Check out Easy Companies who can help out with registering your business. Here at ConX we have had many questions with this in the past, and are happy to help, so if unsure, feel free to ask us a question on Facebook or Twitter, either ourselves or our community will have the answer.
Creating a website, talking about and sharing your work is what the successful construction companies are doing these days. Setting up a simple but effective website to introduce your team, and let people know where to find you does not cost much these days. Make the investment from the start and you will see the dividends.
If you are looking for recommendations on web companies to help out, hit us up on our Facebook page and we will try and help out.
What have we missed above? Add in the comments below