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  • Monday, December, 2020| Today's Market | Current Time: 11:39:02
  • The construction business in India is also growing at a fast pace as the country is moving towards development. Therefore, the demand for a construction company is growing as well.

    Whether you want to be sub-contractor or general contractor, getting into it requires a process. And even though it requires capital, it is a highly lucrative business, especially if you have the capacity and expertise to yield quality results.   

    Many people want to start their construction business, but they are unsure of the process. Business owners need to prepare themselves for the hurdles and challenges which might cross them at the initial or later stages of their business. If you are knowledgeable about how to handle the construction tools and prepare building cost estimates, you can start your business. 

    But if the process seems confusing, we are here to make the process a bit less complicated by helping you understand the important steps needed to start a construction business.

    Understanding Industry

    Understanding your industry is the first step if you want to set your business. You need to be fully aware of how the industry works. When it comes to India, the construction business is playing a significant role in the country’s GDP.

    The industry has three segments that are, 

    The real estate construction: this includes the construction of commercial or residential properties 

    Industrial construction: it consists of pipelines, textiles, oil and gas refineries, etc.

    Infrastructural building: under this segment comes power, roads, railways, etc.

    Moreover, it is expected that the construction industry will grow up to 6.44% annually in 2023, which means it is a good omen to start your business.  

    Do Thorough Research

    Ask yourself; Is the construction business a viable option in your location? Because if the locality is oversaturated, it might be hard to get a foothold in the industry.

    Performing in-depth research of the marketplace comes in handy if you want to start your business. Moreover, you should analyze the construction requirements in the desired society, area, or locality. This is necessary because business rules change from state to state and area to area. Moreover, the requirements for each construction segment is specific. 

    Some sites require refurbishment or renovation, while others require new houses or malls, or shopping centers to be constructed. Doing thorough research will give you a competitive edge when you enter the playing field. 

    Devise a Business Plan

    Once you are done with the industry research, you can draft your business plan. This will help you keep track of your business and will also keep your business on track. Additionally, it enables you to highlight your proposal. 

    You are required to include everything in the plan you require for business, such as money, limits, time, etc., meaning devising your business plan is incredibly important.

    Your business plan will include

    • How you will market your business

    • Your target area

    • The kinds of service you will provide

    • The estimated cost of starting the business

    • The number of employees 

    • The types of jobs you will bid on

    Register Your Business

    After devising a business plan, make sure to get it registered to make it legally functional. This will provide you with legal benefits, liability protection, and tax benefits.

    If you want to register your business in India, you have to enter the Entrepreneur Form INC-29. You can easily find this form on the website of the Ministry of Corporate Affairs. When you fill the online form, an invoice will generate, and you will have to pay the stamp duty. Once paid, the registrar will check out your form, validate necessary details such as payment details and company name, etc.  

    After approval, the incorporation will be issued in the company’s name. 

    Get Insurance

    The business might suffer from loss, or accidents might happen, and to recoup this, you need to get business insurance. The insurance will have you covered, given the risky nature of this business. This will help you avoid repairs, damages, indemnity, and liabilities. You should get insurance for design, calculation, and workers as well.

    Get Funding or Loan

    Managing and owning a business might be tough at the start as it is on a large scale. Many projects might require a disproportionate amount of money. Therefore, there can be a need for instant cash so you can meet the capital requirements and manage the cash flow. This crunch situation can be overcome by opting for various business loans in India, such as construction equipment loans, overdraft or equipment finance, etc. 

    Hire Workers

    This type of business cannot be done alone. For example, if your project is in a residential or commercial sector, you will need flooring estimators to have an accurate estimate of cost to do the flooring works. You will also need an engineer and a subcontractor. Hiring a potential staff will help reach your business to new heights. 

    Let It Grow

    Walking away from projects by finishing them properly and timely helps your business grow and prosper. You should be upfront with your clients on the strategy you are going to adopt for a certain project, what will be the estimated cost, and how long will the project take.

    Good projects equal more chances of your business growing.

    The biggest challenge is laying the foundation. Once you overcome this challenge, nothing can stop you.