The construction industry is an economic powerhouse in the UK, adding over £122 billion in value to the UK economy in 2021 alone. Construction is a wide-ranging industry and a skilled career path, with many options for the tradesman and entrepreneur alike. Indeed, starting a construction business can be a lucrative endeavour – if handled correctly. What would you need to know before starting your own construction business?

The Market

Market research is nothing short of essential to the building of a workable business model. The construction industry is always a relatively strong one in relation to the rest of the UK’s economy, but nonetheless weak to external factors – which could have serious knock-on effects for your burgeoning construction business.

For example, the rising rate of inflation at the moment has spelled disaster for some firms, and seen the construction sector shrink for the second consecutive month. A return to growth is inevitable, but the costs related to starting too soon could be prohibitive for smaller business models.

Starting Costs

Starting a business in construction is not necessarily as simple as registering a business and getting started. Every business will have its associated starting costs, and construction is no different. The constituent costs that make up your total starting cost can differ from profession to profession, but can easily add up to the thousands.

As such, your business plan should pay as much attention to your initial finances as it does outreach and growth. Funding routes should be carefully researched, and business partnerships considered before personal income is spent.

Tools and Equipment

A core element to your initial starting costs can be found in the tools and equipment of your specific trade. While there are certain tool sets and items you can stock up on ‘in situ’, you will need to stock yourself with enough equipment to hit the ground running with jobs and projects.

With this in mind, you should draw up a list of required tools, equipment and materials to get yourself started. Hand tools and basic power tools are a must; while you may have a personal collection of tools, it can be beneficial to stock your business with a separate set – not in the least when it comes to your end-of-year expenses.

In terms of materials, there are some evergreen items that you will always need in abundance. Sealant is one such material, with widespread application and usefulness; stocking up on materials such as this can keep your upcoming projects going smoothly. In terms of specialist equipment and larger, high-cost items, rental is always an option until you have the profits to re-invest.

Marketing

The last piece of the puzzle with regard to building your construction business is the marketing angle. Whatever your niche or demographic, marketing is the key provision by which you will come into contact with future clients.

Marketing is also a multi-faceted process. With construction in particular, the most effective form of marketing is in fact word-of-mouth – illustrating well that good marketing does not necessarily require a large budget to achieve.