TIPS TO BUILD A SUCCESSFUL CONTRACTOR BUSINESS
We all aspire to own our dream house for which we work incessantly. A comfortable space, with amenities and a beautiful view, they have worked so hard all their life and will continue to do so. A lot of us dream of setting up our business in prime locations of city have continued to build skills for it since we were 10 years old. We all keep on thinking about architectural plans and interior but do we have time to turn our dream project to reality in our supervision? The answer is a big NO. We are so busy working our jobs and with the strict rules that companies now have, it is next to impossible to take an off except its for some medical issue. Our only resort are the Contractors! The contractor takes the responsibility of building your house and makes sure that commands given by you regarding the architectural plan to quality of material is followed and executed well. The contractor business is very profitable as it brings almost 10-20 percent of total cost of project as a profit. Contractor business requires great management skills and local connections with various hardware distributors and a group of labour who are ready to work for him at all times and are one call away.
With the number of start ups and our youth trying to build their own career through their management skills.
Contractor business is a very interesting venture and if you are interested to set your feet in this market, take a look at the following steps will need to take to set your feet in this business:
Create a Plan
Decide what will be your reach. How will you generate the fund for the given size of your business? If you want to run your busines only offline or want to accompany it with an online site? Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the contractor business needs investment, time and ability to manage and arrange resources on time. There will be weeks or even months when you get no projects on other days you might have a couple in a month. One should always be ready for good and bad days.
Understand the Market
To start any business, you must know how the market works around it. Find out how many people are looking to build property in your area. What other contractor businesses are available? Meet with builders and contractors who have are building new projects and generate leads with them. This research will help you understand the market size, strata, variety, and help you build a vision for your contractor business plan. You can also classify and have a decided niche based on your area of expertise. This way you can be more focused and the knitted to your business.
Increase your expertise
To open a contractor business, you need to have a lot of information about this industry. You should be an expert. Take guidance from an expert who has been in this business for long time to know the trends, fluctuations and risks of this business. Understand how different types of properties sell and how you need to build a relationship with your customer. You’ll require years and years of practice to polish your marketing skills.
Decide the size and mode of your business
These are the basics as you’ll need to collect funds for your business according to this plan. Before you start a contractor busines, you must decide how you are going to organize your business and what will be the size of it. Decide how you’ll get funds for all these. You have to arrange labour for all the work that is required to build and furnish a house. You should have a team and based on that, decide the size of business and funds you have.
License and Permit
To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get all the necessary approvals, and get all the documentation handy. States have their provisions and a set fees to apply for the contractor agents post, same is for companies who have to pay extra money. Once you procure license, it also has expiration date which is between 5-10 years and you have to get it renewed.
Understand your customers
Any business needs you to be focused on their target audience. In the contractor business, you’re your clients demands are everything. Take notes of their requirements, what kind of place they are looking for in great detail. If your customers are not satisfied with the property you have built for them, all your hard work will go in vain. Take their reviews sincerely and ask them for what varieties they would like you to offer in the future. Focusing on the target audience is very important in this business so keep that in mind.
Understand the finance
This is amongst the first things to do. You are setting up a contractor business and it will require a principal investment be it for setting up an office or for procuring and arranging g raw material and having a group of skilled labour your team. This will require you to arrange for resources and make your profits in the cuts from what your give your labour and distributors. Get yourself sponsors or arrange for money well in advance. Also, focus on saving a little money too because in this business, your profit returns are not guaranteed in limited time, you may have to wait for months or you may also have to wait to get a good project that brings profit.
Along with profit, you have to look for taxes too which are levied on your services. Make sure you have done your research and avoid the chances of any tax payment delay.
Get the Manpower
Bring a team of diligent hard workers together. You need to have carpenters, laborers, masons, and other helpers for the construction work. You might also need a team that looks after the work and set up meeting with clients. According to the size of your business, arrange a force.
Build a team you can trust!
Find the right distributors
Make sure you have a distributor who can easily make you available with the supply whenever you demand them and have access to the list of items that is trending in the market. You should not miss on days when the material required by you wasn’t available with the distributors. Contact different distributors for different products and negotiate with them for the best prizes.
Marketing on different platforms
Be ready to do a lot of marketing. Social Media is used by almost everyone around the globe. It is almost certain that at least one person in a household must be using any social media platform. Putting up pages on Facebook and Instagram, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your contractor business. Along with online, spending on offline methods to propagate business is necessary. Put up small hoardings for your Since you already have an offline business and most customers who have done business with you will keep your number saved, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one to one messaging which has become one of the best provisions of converting prospects to customers.
Starting any business takes a good amount of planning. If you want your new business to succeed, understand the risks that come with entrepreneurship. It often takes a few years to get a business off the ground even with the best-laid business plan and advanced marketing. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. All the best!