S
Starter Story
Business Idea
Start A Construction Company
About
Starting a construction company requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell construction, or selling construction online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a construction company ➜
Key stats
market size
$180B
revenue (monthly)
$350K
starting costs
$212K
gross margin
42%
avg product price
$154000
time to build
12 months
growth
Word of mouth
business model
Consulting/Agency
time investment
Full time
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
| Office Space Expenses | $35 | $3,250 |
| Employee & Freelancer Expenses | $0 | $5,500 |
| Equipment & Supply Expenses | $550 | $6,000 |
| Website Costs | $232 | $6,500 |
| Business Formation Fees | $5,600 | $20,400 |
| Inventory Expenses | $300 | $10,000 |
| Specific Industry Expenses | $500 | $4,000 |
| Vehicle Expenses | $50 | $350,500 |
| Other Expenses | $0 | $2,300 |
| Software Expenses | $150 | $3,044 |
| Advertising & Marketing Costs | $75 | $4,786 |
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
The Blue Book | thebluebook.com | #36,995 |
|
Construction Review Online | constructionreviewonline.com | #76,585 |
|
ConstructionPlacements | constructionplacements.com | #84,000 |
|
unknown | trotter-construction-company-inc-in-indianapolis-in.cityfos.com | #84,344 |
|
|
Dodge Data & Analytics | construction.com | #91,668 |
|
Construction Dive | constructiondive.com | #94,425 |
|
|
Building Design + Construction | bdcnetwork.com | #104,499 |
|
Fluor | fluor.com | #147,933 |
|
Green Design-Build Construction | korteco.com | #163,066 |
|
Bechtel Corporate | bechtel.com | #164,144 |
|
Kiewit | kiewit.com | #184,341 |
Pros & Cons
| Pros | Description |
|---|---|
| Flexibility | You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
| Scalable | With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
| Meaningful business connections | You never know who you will meet as a construction company. This could be the start of an incredible business opportunity! |
| High customer retention rates | Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer. |
| Pick & choose the clients you work with | Construction Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients! |
| Control of workload | With starting a construction company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you. |
| Cons | Description |
|---|---|
| Finding The Right Supplier | Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section. |
| Low margins | The gross margins for your construction company are typically around 42%, which can make it more challenging to incur new expenses and maintain profitability. |
| High employee turnover | In the construction company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment. |
| Stressful work | This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments. |
| Niche Market | A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience. |
| High overhead expenses | With starting a construction company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below. |
Marketing Ideas
-
1
Affiliate program
An affiliate program is a way to reward people outside your organization to share your product.
-
2
Word of mouth
The most tried and true way to grow a construction company is through word of mouth - some entrepreneurs would say it's more important than all social media.
-
3
Advertising on social media
Social media advertising is one of the leading ways to get the word out when it comes to construction company.
There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.
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