How To Open A Renovation Company From Scratch

Good builders were valued at all times. This business became especially relevant during the period of mass enthusiasm for redevelopment, repair and construction of country cottages. However, the competition in this area is high. It is necessary to take into account all the risks before opening a construction company to get high and stable income.

A brief overview of the renovation business

In any city or even settlement there is a large number of contractors engaged in construction. Their services are always in demand among the population, commercial and state organizations. People buy expensive building materials and want to deal with a responsible contractor. In medium and small towns, construction companies with 40 to 100 employees prevail. In the total volume of activities of small and medium businesses, construction has been steadily taking 10-12% over the last three years. Visit the website Star Building for the best quality building materials.

The majority of small construction companies offer the following services:

  • external and internal repair of apartments and houses;
  • installation and dismantling of buildings and other structures;
  • construction of low-rise residential buildings;
  • construction of low-rise buildings (bathhouses, garages, warehouses);
  • arrangement of engineering communications; landscaping, landscape design.

Types of companies in the field of activity

When opening a construction company from scratch and relying on successful business, it is necessary to think over its structure in advance.

There are only two types of companies: specialized and complex. The first ones unite workers of the same specialty, often with different qualifications, and offer certain types of work: (assembly, finishing, stone). Complex companies have a staff of workers of all professions and perform the full production cycle of construction on a turnkey basis.

The internal division of labor depends on the organization of work, the structure can be: without division – any employee is able to perform all technological operations. They just start a conversation with “call us today for free estimate”; with partial division – the worker is mainly engaged in highly specialized work, but can take over the functions of related professions; with full division – each employee works on a narrow site, his work is part of the technological chain.

When a contracting brigade is set up to work at a specific site, the full cycle includes the main and auxiliary workers and the site manager (foreman and foreman). A collective contractor usually works in multi-shift mode; the number of team members depends directly on the size and complexity of a facility. This option is considered more practical for the construction firm for several reasons:

  • The workers are quicker to learn related professions;
  • working hours are tightened, no one is waiting for anyone;
  • the rational use of technology and mechanisms;
  • there is a great motivation to work;
  • acceleration of the process and completion of construction.

Such an organization is based on the personal interest of employees, because remuneration is usually based on the final result. There is a need for mutual assistance and mutual control, which positively affects the quality of construction.

For example, let’s consider opening a construction company with about 40 employees and organize activities. You can read about professionals: five work teams are made, which include carpenters, finishers, painters and a master of general construction works. In addition, the company has a manager, an accountant, a designer, and managers at the reception of orders. Additional workers: welders and fitters. 

The main economic indicators that can be a goal:

  • number of applications – 7-15 per month;
  • work area – 20-150 sq.m;
  • deadline for order execution – 7-80 days.

The main activities that can be developed:

  • repair of apartments, offices, industrial premises;
  • installation of drywall, suspended ceilings, window frames;
  • execution of plastering and painting works, tile laying;
  • wiring of electrical equipment, installation of sockets, switches;

The construction company also accepts orders for the construction of private houses, country cottages “turnkey”. In this case, a full range of work is performed: arrangement of foundations, masonry brick (blocks), wooden walls, frame construction, roofing, glass and finishing work. There are companies that specialize in roofing, installation, tile work or construction of cottages economy class. If desired, on this wide “field” can always find a place for any construction company.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.