Are you interested in launching a custom home-building company?
Well, before you can start providing people with the houses of their dreams, there are a few steps you’ll need to take to ensure you are ready for the challenges you’ll undoubtedly face.
In this post, we’ll explain the process of getting such an exciting venture off the ground.
Typically, it involves at least eight steps, which if you take the time to manage them properly, will go a long way towards establishing your company as a successful player in the marketplace.
1. Write a Business Plan
The first thing you’ll need to do is write a business plan. This plan will be the roadmap to achieving your short-term and long-term objectives.
This is an important step for any fledgling company because it will lay a solid foundation on which you will grow over time.
Tips: When writing the plan, you should consider enlisting the services of a construction business coach like Brainiact.
You will benefit from their expertise, industry knowledge, and track record of success in helping other companies launch, scale, and navigate the challenges of running a custom home-building company.
2. Register Your Business
With the business plan written, your next step is to register your company with the Australian government via its business registration service.
The process of registration only takes a few minutes to complete, and there is even a convenient tool to help you decide on your business structure and tax registrations.
3. Source finance and create a budget
There are usually plenty of costs involved in starting up any business, but this is particularly the case for one that intends to operate within the construction industry.
Some of the costs you might incur include:
- Purchasing or renting an office space
- Buying equipment
- Paying your employees' salaries from day one
- Marketing
- Utilities
- Legal fees
- Insurance
Therefore, unless you have a lot of money at your disposal, you’ll need to secure funding from a bank, angel investor or financial institution specialising in backing start-ups.
Note: This is another reason why a robust, well-thought-out business plan is a must these lenders will want to see a detailed budget that anticipates your costs for anywhere between the first 12 months to five years of your venture.
Make sure you are prepared for the lender to review your business plan and personal finances comprehensively before making a decision.
4. Obtain Relevant Permits and Licences
As a construction business owner, it is important to understand what laws, permits and licences you might need to procure.
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They might be different depending on what state your business is based in, but typically, they will include the following:
- Building licences
- Development applications
- Zoning approvals
- Obtaining a white card
- Heavy vehicle licences
- Electrical licences
- Gas fitting licences
- Plumbing licences
Refer to your local council and state and federal governments to establish exactly what ones you need to get.
5. Take Out Insurance
You’ll need to take out a range of insurance policies to protect yourself in the event of injury, accident, or other unforeseen situations.
Tips: It is worth contacting a lawyer to determine what mandatory or highly advisable insurances are required legally. You might also want to speak to an insurance broker who specialises in the construction industry for further advice.
Some of the insurances you may need to take out include:
- Public liability
- Business insurance
- Worker’s compensation insurance
- Construction insurance
- Tradies insurance
- Legal liability
- Builders risk insurance
6. Set Up a Showroom and Office
You are going to need somewhere for your main showroom and office, where potential clients can meet with you and where your staff will be based when not off-site.
Ideally, you should have enough room for a meeting space to display material samples and to perform the office admin part of your business.
7. Hire Staff
Typically, a custom home-building company has two parts:
- The sales/office management department
- Project management
You will have to hire a team of exceptional people to perform these functions effectively and successfully.
Two of the most important appointments you will need to make are a home dealer and project manager. They will work closely with clients through every phase of the home-building process.
If you are struggling to find the right people on your own, it is a good idea to hire the services of a recruitment company.
8. Build a Team of Subcontractors and Specialists
Lastly, it would help if you built up a team of subcontractors and specialists you can rely on to perform a wide range of tasks within the custom home build for you.
They can bring many specialist skills to the table, including everything from solar panel installation and putting in a swimming pool to electric wiring and creating custom bathrooms.
Once you have this team at your disposal, you can tackle any project with confidence.
