Curious about the home building and construction business? If you’re planning to start your own construction business, you need to know the real deal. Being a construction startup will pose its own challenges. Read on to know more.
Just like any other startup, one must know more about the market you want to serve. You might be inclined to build homes or maybe, offices. Whatever you choose, the building business has its own set of challenges.
The construction business involves spending large amounts of money. People will need to either pay upfront or take on a loan. As someone planning to build a business, you will need to know the different investment options available. But before anything else, what is the current state of the construction industry?
Status of the Homebuilding and Construction Industry
The pandemic has caused a disruption in every industry. But there is some hope in the home building and construction business. Projects that have been put on the back burner for months are now coming off drawing boards. Furthermore, the National Association of Realtors reported that nearly three-quarters of homes were sold in less than a month in February.
Evidently, an estimate of four million homes is needed, according to an analysis from Freddie Mac. The demand isn’t seen to be dwindling anytime soon as more people are buying homes. Therefore, the construction industry has the opportunity to supply the needs of the market.
Homebuyers are now accustomed to a digitized world. The availability of online home listings makes it easier for them to do virtual tours without leaving their homes. Even processing mortgage loan applications are moving online.
With the social distancing protocols in place, there are fewer in-person visits to lenders’ offices. Homebuyers can now work with lenders by visiting their official websites. They only need to upload their requirements to get pre-approvals or to lock in their rates. This is what Lending Standard is implementing.
Now, there are a lot of options available for both home listings and financing. Most of which you can find online. But how does this impact your construction business?
Top 3 Things to Consider in A Construction Business
We already know that there are opportunities in the building industry. Like any other startup, there is a lot of preparation and planning involved in building your construction business. Here are the top three things you need to consider:
Increase your network
Establish relationships with contractors, industry professionals, and industry inspectors. Also, you must partner up with a builder with the right specialization. You want to make sure that you or your contractor will have the right skills to do the job well.
Safety should come first
Make sure that you are compliant with the industry’s standards of safety. Prepare your team with workplace hazards to prevent work delays. A workplace accident can cause a project to shut down for months. It is best to work with builders who know safety best practices and compliance.
Take care of your customers
You will enter a short-term partnership with your client. Take their input and take care of their concerns. That way, you will have an enjoyable and smooth working relationship with your clients.
Erik Perkins, President of Perkins Enterprises, has been in the business for 30 years. He said, “I think a good level of transparency is great. You need to make your client feel that you’ve got everything under control even though you’re freaking out.” Being explicit will set the proper expectations for your client.
Build a good working relationship with your clients and contractors. They are the ones who will help you push forward in your construction business. Additionally, they can potentially bring in more business in the future.
Top Attitudes of a Successful Construction Entrepreneur
There are common qualities that founders share, no matter what market you choose to serve. But what qualities make construction entrepreneurs push through challenges?
High regard for transparency
Homebuilders must have a sense of transparency with their clients. Erik shares, “We have to be as specific as humanly possible. The only way that you can have the same expectation is to be explicit about anything that you can be explicit about.”
Meeting your clients’ needs is important. You also have to set expectations appropriately. This will help nurture your working relationship and allows you to work together smoothly.
Awesome Decision Maker
From negotiations to building your clients’ homes, your role includes making good decisions for your clients. From start to finish, there are many decisions to make along the way. But, your knowledge in building homes will help your client feel secure.
“We hope to get really nice clients to work for. Some people are good at making decisions, and some really get stressed out, sometimes even lash out because of the stress and sort of putting it on you that you’re causing the stress in their life when really we’re just trying to do a good job and give the client exactly what they want in the end.” Erik mentioned.
Make your client feel comfortable. Assure them that you are only looking out for their best interests. That way you will relieve yourself and your client from stress.
Being self-aware suggests that you know your weaknesses and strengths. This is important for construction entrepreneurs as it helps them succeed. Your key talent areas will determine where you can provide superior performance.
Building Your Construction Business Today
Building a strong business will need a laser-focused plan and determination to succeed. In fact, opportunities in the construction industry are not going to die out soon. There is a high chance of your construction business to launch.
Find the right market or clients you want to work with—partner up with the right people. With your entrepreneurial spirit, you can push forward towards your goals. Nurture your network; they will help bring you new business.
Just like Erik from Perkins Brothers, we at Full Scale create partnerships with the right clients who need us the most. We aim to help startup businesses scale by helping them develop functional apps. Our developers are passionate about success, you can be sure that they deliver quality.
Tell us what you need for your business to scale. Let’s work together to achieve your big business goals today!
Homebuilding and Construction Business | Full Scale is written by Hannah Gabiana for fullscale.io