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How To Start A Construction Company In The UK

submitted on 5 January 2021
The construction industry is booming in the UK, with the sector growing at an average annual rate of 3.5 per cent. The global construction market is also expected to grow and reach $15.5 trillion by 2030, according to the World Economic Forum.

If you are very experienced in the construction industry and dream of being your own boss, starting a construction business is a good option. Look for unique opportunities that are not just franchise companies, but that offer you a business that matches your skills and experience.

Getting started
Starting your own small construction business in the UK is not easy but a well-developed business plan will help you succeed. Understanding every aspect of your business idea will be key to getting your construction business running like a well-oiled machine.

To start a construction company, you need to explain your idea and explain it clearly and concisely. It takes time to set up a business plan and the legal company structure - but it is worth it.

Make a list of everything you need to know to get your business off the ground - from creating a solid business plan to what type of insurance is needed, what equipment and materials are needed, and what operational expenses you will need to meet.

The business plan you develop helps you organise the elements needed to create a strategy that you can use as a start-up, and pave the way for the types of business planning, sales and marketing strategies needed for your construction business to grow.

Several organisations provide a wide range of tools to help small businesses in all stages of growth, some with specific tools and schemes targeted at the construction and plant industries.

Business and financial planning
If you want to limit your start-up costs when starting a construction company in the UK, there are free business plan creation tools available online, to help you start your construction business.

Once you have completed your business plan for the construction company, the next step is to find out about available financing that will help you. You can talk to a financial advisor who will help you every step of the way to raise the funds needed to turn it into a start-up.

Once you have completed your business plan and have the necessary finances in place, it is time to start your construction company.

The legal set up
In order not to have any problems later, you should get all your licenses and permits in order, including insurance for companies, bonds, guarantees, etc. There are different types of companies, and they differ in the way you pay business taxes, pay wages to the owner and employees, and so on.

It is important to be clear about the different forms of legal structure for your business and that there are several options that you need to weigh up before deciding to set up a construction company in the UK.
  • You can set up a limited liability company (Ltd) with its own bank account for dealing with purchasing and paying wages, etc.
  • A partnership or sole proprietor is not legally obliged to maintain its own business bank account, but it is a good idea to do so to keep the accounting process simple.
There are many opportunities for small construction companies and craftsmen to secure highly profitable long-term contracts. In other words, you can secure the project and then divide the work among subcontractors such as architects, electricians, roofers, bricklayers, sound testing experts, and any other skilled people you need to complete the project.

With the construction industry booming – there’s never been a better time to start a construction business in the UK.

Article kindly provided by www.thebuildingcomplianceteam.com


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