A start-up guide for construction businesses

A start-up guide for construction businesses

Last Updated on May 23, 2023 by Admin

The construction industry is responsible for the UKs infrastructure, building homes and workplaces across the country. Despite the uncertain economy, construction industry output increased during the first half of 2023, making it an attractive sector to work in.


While many workers are employed by companies, those qualified in construction often choose to start their own business.

If you’re considering launching a construction start-up, there are some crucial steps and stages to go through to ensure you’re fully prepared.


Creating a robust business plan is crucial in any sector and construction is no different. Your business plan should address aspects including budgeting, overheads, objectives, competitive analysis and clients.


It should also take into account the structure of your company including employees and whether it’s classed as a limited company, partnership or sole trader.

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Research and marketing

It’s vital to carry out research to get an idea of where your company will sit within the broader construction market. It’s also a good idea to identify a niche or USP to ensure that you stand out amongst the competition. This doesn’t mean that you can’t also offer a range of services but it’s likely that it will give you an edge and help build your reputation amongst clients.

Your niche can then be used in your marketing strategy, through branding and advertising, helping to create a solid customer base. Your marketing plan should also consider customer reviews and rated trade sites to build a great reputation.

Social media can also be a great way to get word of mouth out there about your new construction business.

Cover the legalities

You’ll need to check whether your company should be registered for VAT with HMRC as well as tax self-assessment. Some jobs are VAT exempt or charged at a reduced rate, depending on the nature of the work.


You might also want to consider taking out builders’ insurance that can offer cover for various eventualities.

You’ll need to keep business records and record any expenses so it’s worth getting into the habit of this from day one.


You’ll likely need to raise start-up capital and it’s a good idea to explore all options. If you’re lucky enough to have help from friends or family, then this can be an ideal starting point.

The government does provide some start-up loans that can help you develop your business. These are usually repaid within one to five years.

Another option to secure funding is via a bank loan, though these can be difficult to get when you’re just starting out. However, it’s worth researching a variety of banks as individual requirements can vary.

Funding from private investors is another way to gain financial backing but you should make sure you know what the exact agreement is if you choose this option. Many investors will want shares in return so it’s vital to be aware of the legalities.

By following these steps, you can ensure you have a solid plan and strategy in place, giving your construction start-up the best chance of success.


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