Why Construction Promises to be a Profitable Start-up Venture
Why you should consider construction for your start-up business
Success in business can be nigh-on impossible to predict. Some of the most influential businesses of the last decade were widely dismissed upon launching, including social media giant Snapchat and the holiday rental game-changer Airbnb.
Many new businesses fail within the first five years of operation, and recent difficulties with logistics and rising energy bills saw company insolvencies in Great Britain hit a 13-year high in 2022 as even well-established outfits failed to turn a profit. Those seeking to start a company in 2023 need to be prepared for the possibility of a difficult financial future, at least in the short term.
However, it is not all doom and gloom for budding entrepreneurs! There are still many industries that hold promise for a profitable start-up venture.
Construction is one of the most reliable options for steady work and the potential for rapid growth. Explore why 2023 might be the best time for those with the know-how to pursue a start-up venture in the construction industry.
High demand for construction services
No matter what is going on in the world, there is always a high demand for construction services. Buildings play a vital part in our working and personal life, and requests relating to property creation and repair far outweigh the number of companies with the required skills to complete the tasks. With construction ranging from creating new office blocks and re-fitting shops to mending plumbing and rewiring electrics in residential housing, it is no wonder that demand far outstrips supply. Given the unpredictable nature of the projects that you may take on, it could be worth exploring construction insurance for your business to help protect you against unforeseeable hurdles.
Continuous work throughout the year
Demand for construction services typically remains high throughout the year, ensuring regular work from month to month. Of course, some seasons lend themselves best to construction jobs, with spring and summer being particularly popular times for home renovation. However, most housing emergencies tend to occur in winter during bouts of harsh weather and this may also lead to business. The construction industry also stays relatively unaffected by wider socio-economic issues, unlike more turbulent sectors such as tourism which can be impacted by external factors such as politics and natural disasters.
Opportunity to specialise or franchise
Given the volume and diversity of demand for construction, it is likely that you will quickly have the opportunity to specialise your start-up once you have an idea of the services that are most needed. If you are a small operation, you may find success in a particular niche in an effort to become the best in your field. Larger companies could find it helpful to franchise or split into sub-teams to advertise specific expertise while still maintaining the flexibility to offer a wide range of services to clients.
Minimal travel and marketing costs
Finally, construction start-ups can see success on a local scale rather than having to contend with the organisational and legal challenges of expanding into other domestic areas or overseas. Minimal travel from job to job means minimal expense in terms of transport, and you can rely heavily on word-of-mouth recommendations for your marketing rather than needing to promote yourself widely online. This means that more of the money you make can go towards your profits and growth.