It would be rare to find someone who has yet to have the dream of building their own business at some point in their life.
So, suppose your heart is whole with enthusiasm, and you have the necessary accreditation. In that case, this article will support you in understanding the actual steps to building a successful construction company in Australia.
Conduct detailed research to evaluate viability
The viability of a business proposition is imperative to its success. Before you go down the path of establishing your firm, it is necessary to check, instead, confirm the viability of your specific value proposition.
If the area in which you are planning to build your construction company is already oversaturated, there will be no sustainable opportunities for new entrants.
Hence, conducting a detailed research about your peers, what they specialise in, the current charges and how potential clients perceive new entrants in the construction industry is essential. This will help you define your customer base and potential and create your business plan’s foundation.
Craft a sinewy business plan
After adequately analysing the market, you must capture any available opportunities by documenting a robust business plan. The business plan should encompass your entity structure and your management structure.
It should also list the types of projects you will bid on and your service offering. The business plan should focus on the target market and the expectations of the interested parties.
Additionally, the marketing strategy and funding analysis should be provided. Other helpful details include employee headcount, roles and responsibilities, revenue objectives, billing structure, and marketing strategy.
Register your company
After appropriately identifying your business structure by highlighting your sole proprietor, your liabilities and its format, you need to register your company. In Australia, you can do this via the business registration service website.
By applying on this website, you will get an Australian Business Number (ABN) where you can register for tax. You will also require a tax file number that will allow you to keep track of your business expenses and payments.
Obtain the industry licences
For a construction company in Australia, there are many industry-specific licences. These licenses are typically managed by either the state or the tertiary government. The essential licenses you should look out for include the individual contract license you would need before commencing any residential or commercial work.
Additionally, you would also need a company contractors license that would be needed for public or limited liability companies. This license allows you to establish contracts and sub-contracts with other entities.
Another license that you should be on the lookout for is the high-risk work license required if you are operating heavy machineries such as graders, excavators or cranes. For an exhaustive list of all building and construction licenses and permits, you can visit business.gov, an Australian website that outlines all industry-specific permits.
Meet all safety requirements
Construction work is inherently risky, and therefore, safety becomes of paramount importance.
Although licences would require you to provide a detailed safety plan during the time of application, it is also helpful to have additional safety measures. Here, implementing an Occupational Health and Safety Management System (OHSMS) as per the recommendations of ISO 45001, an internationally appreciated standard for its practicality, can help identify and mitigate common risks that would be prevalent in your industry.
Moreover, it is also necessary to secure appropriate insurance coverage for your business so that it is adequately prepared for any potential accidents.
Public liability insurance which protects the general community from any damages caused by your business, is a good start. It would be best if you also aimed to get workers’ compensation insurance to protect your workers from any accidents that might occur on-site.
It is a rarity for a construction business to have all the necessary vehicles, tools and equipment to complete projects successfully. Before applying for a bid, take the time to purchase, rent, or lease your equipment.
Additionally, keep in mind that you will be incurring bills, investing in marketing activities and paying salaries. Hence, it becomes imperative to structure your billing cycle to meet all your commitments.
Hire appropriate staff
When hiring your staff, try to remember the culture you are attempting to foster in your organisation.
Select individuals who possess the right skillsets and have the “right attitude.” Here, it is helpful to draft accurate and detailed job descriptions so that all roles and responsibilities are clear. Remember, ambiguity can create confusion and lead to a negative first impression; thus, try to remove it as soon as possible.
During the infancy of your business, you need to market yourself to create a buzz in your industry.
For that, establish a brand identity representing your values and how you plan to deliver your services. If you have accreditations like ISO 9001 or ISO 45001, remember to flaunt them on your website and your banner.
To start a construction company in Australia, you must conduct detailed research to confirm viability, craft a strong business plan, register your company, obtain necessary industrial licences, meets safety requirements, secure funding, hire appropriate staff and finally begin marketing.
To build a successful company in the construction field, we need a lot of infrastructure; We suggest you visit the Construction Software page to learn about these infrastructures and start your own business.
Interesting Related Article: “Must-Have Equipment For Every Construction Business“