Going into the concrete industry is an operation, whether you want to be the next major general contractor in your field or think you can create a profitable small construction firm in a narrow niche. This is especially crucial if you’re looking to grow a concreting company Sydney features.
But don’t be worried. Yes, you’ll need to register for permits, purchase supplies, and maybe complete training. You should start your own concrete company if you have a strong concrete company business strategy and know which path you want to go in.
Construction is a high-growth market right now, according to Forbes, Sageworks, and the US Small Business Administration (SBA), and is predicted to stay strong for years to come. Finishing contractors (e.g., drywall, flooring, and painting), service grid design (e.g., water, wastewater, gasoline, gas, and electricity), and structural building are all examples of fast-growing small businesses (e.g., concrete, roofing, and siding).
It’s logical. Everyone needs to construct the houses, bridges, and structures that we all use in our everyday lives, whether for personal use, industrial use, business, or public works.
Construction accounts for six to nine percent of gross domestic product in developing countries such as the United States, Canada, and the United Kingdom (GDP). The construction industry provided $960 billion in annual sales in 2014, according to the US Census Bureau, and employed an estimated 5.8 million people in 2013, according to the US Bureau of Labor Statistics—with the average company employing less than ten people.
Construction firms have their ups and downs (for example, construction firms were hard hit by the 2008 economic crisis), but it’s a sector that will still have demand—and where there’s demand, there’s potential.
How will you start your construction company?
Let’s start by defining what it means to be a construction firm.
You may have a concrete business that is as large and large as you want it to be, or as small and limited as you want it to be. Typically, the market is divided into three categories:
- Residential and non-residential structures are also accessible (including institutional and commercial)
- Infrastructure includes large-scale public infrastructure programs such as highways, roads, bridges, dams, utilities, and water/wastewater facilities, and is also known as heavy engineering, heavy/highway, or heavy government.
- Industrial sector – includes steam stations, refineries, chemical plants, and processing plants are usually included in the industrial sector.
Factors to consider:
Here are factors you’ll need to consider when deciding the scope and niche of your concrete company. Throughout this startup guide, we’ll discuss each in more detail.
- What are your strengths and interests, and what area do you want to pursue?
- What is the current state of the building industry in your area? Who are the big players in this scenario?
- Where does a small company have a chance to thrive and succeed?
- Who are your clients? Who are you going to sell to, and who are you going to charge for your services?
- How can you fund your business?
- What civil, trade, and regulatory conditions do you fulfill and follow?
- Where are you going to set up shop? How much room would you need for supplies, meetings, and office staff?
- What types of trucks, small machinery, and heavy machinery would you need to rent or buy? What equipment or supplies would you require?
- What jobs or on-site work will you employ or subcontract for, and what will you do yourself?
- In your business strategy, what would you require?
What are your skills, and what field do you want to go into?
Begin by conducting a SWOT review to determine the capabilities, shortcomings, opportunities, and risks. Examine your current situation, your desired destination, and your preferred mode of transportation.
- In which trades do you actually have expertise, qualifications, and business contacts?
- What is the procedure for learning a trade if you need to learn one? Is it possible for you to work as an apprentice for a company? Are there any classes open, such as at a community college in your area?
- Speak with people in your profession or a related trade. Take them out to lunch and tell them you’re interested in working in the industry and would like to ask them some questions. (Are you conversing with a competitor? It’s possible. However, you are conversing with a beneficial contact with whom you will be able to collaborate in the future.)
What is the current construction company landscape in your area? Who are the major players?
Construction firms are still in demand, so this is a market where there will be a lot of competitors. Others are well-established and capable of success, while others fizzle out and struggle.
Speak to the elected municipal authorities, the Chamber of Commerce, trade unions, and people in the industry to ensure you have a good understanding of the local environment.
- What is the population of your city, and how do you expect it to rise, decrease, or adjust over the next five to ten years?
- What has been the level of interest in your field? Is there a high need for new homes? Are there any new businesses moving to the area? Is it possible to upgrade outdated infrastructure? Where, on the other hand, is there saturation, a lack of appetite for a new player, or a high amount of businesses that fail?
- What trade associations do you join? (Trade unions are excellent for networking and keeping up with business and regulatory developments.)
Where are there opportunities for a new business to find a niche where it can grow and succeed?
When you start your construction business, you’ll have to decide whether you want to be more general or specialize in a specific niche. Each technique can be implemented differently by different organizations. An organization will sometimes succeed by adopting the attitude that “no job is too big or too little,” and accepting any job that comes their way. It’s possible that you’ll have to do that to cover the bills in the early stages of your concrete company.
Your building firm, on the other hand, would have a better chance of succeeding if you find a market in which you will specialize.
Could you establish your concrete company as a new home builder? And, of course. There are, however, other choices. Your company could specialize in additions to existing structures or the construction of separate small structures on a residential site. You may work as a general painter or focus on mid-century restorations.
Identifying your niche:
Here are a few suggestions to assist you in identifying possible niches.
Remember to check if your niche isn’t just following a pattern, and if the trend fades, the company can be left behind. Be sure you will adapt to changing markets or refocus on a new niche while also keeping certain work or specialties outside of your core niche.
- Are there any demographic patterns in your region that are driving building needs, such as ageing demographics, an influx of new families, or a need to rebuild houses from a specific age or style?
- Is your community recognized for its commercial or manufacturing industries, or is it on the verge of doing so?
- Is there a specific service that you might specialize in inside your field? Could you, for example, specialize in laminate floors if you’re a flooring contractor? Is there a part of kitchen remodeling that you might specialize in—for example, cabinets or counters—and delegate the rest? Could you specialize in panel upgrades or outdoor electrical jobs if you’re an electrician?
With what we have here, you can go on to build a topnotch concreting company Sydney can readily rely on.