How to Start a Construction Company in The Philippines?
The
construction industry has proven to be a growing industry since the industrial revolution.
It has still proven to be one of the fastest growing business sectors in
developing countries and the Philippines for that matter.
Over
the next decades, the demand for better infrastructure and renovation
activities in the Philippines will continue to grow.
This
means that, if you have a great interest in starting a construction company in
the Philippines, then, this is the right time for you to start investing, the
right time for you to start planning strategically. Thus, in this article, you
will learn all the necessary steps that are crucial in starting a construction company
in the Philippines.
Step 1: Plan your business
The
first step towards starting a construction business in the Philippines is to
plan well on how you want to set up and operate the business.
In
the construction domain, there are many sectors or areas you can start a
construction business. The first step is to identify the niche you want to
build your industry within the construction domain. This niche can range from a
renovation business, office space designing, small home construction, large
home construction, road construction, sales of construction tools and equipment,
etc.
Whatever
niche above that you have decided to focus, on, then would you take a bold step
to identify all the various major competitors in your area who specialize in
that niche?
Step 2: Study your competitors
The
second step towards starting a construction business in the Philippines is to
identify all the major and potential competitors in the niche you want to focus
on.
For
example, if you decided to start a construction company that is focused on
designing and renovating office spaces, then you will need to identify all
other construction businesses in your home town or location that also provide
such services.
List
all major competitors in your niche, observe what they do, their names, and their
location, study their websites (if any) and examine how to handle their
clients, their pricing strategies, promotional strategies, and what are their
strengths and weaknesses.
Step 3: Choose a suitable business name
After
carefully studying your competitors, the next vital step to take is to come up
with a suitable name for your construction business.
There
are many ways to choose a name for your construction business. You can either
name your business based on the niche you are operating, or you could name the
business by using your family name.
Whatever,
name you decided for your construction company, make sure your choice is a unique
and suitable name. Make sure it should be a name that can be remembered by everyone
upon encounter with your business.
Step 4: Choose a suitable location
Every
business needs a location where clients can easily locate and make inquiries in
person. No matter how small you want to keep your construction business, you
will need an office space where customers can easily locate you.
Having
an office space also helps increase the credibility of your construction
company.
Even
if, you start your construction business at home, As, time goes by when the construction
business grows, you will need to have an office space or warehouse to store
your equipment and tools.
However,
it’s always advisable to start the operation of your construction business at home
in the early stages of the business. This will help reduce the cost and bills
associated with renting office space.
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Step 5: Set a Business Plan
As
the saying goes, failure to plan is planning to fail. This also applies to
starting a construction company in the Philippines. This business plan will involve
a full detail of your niche analysis. Detail of all major competitor’s strengths
and weaknesses.
Details
of the cost associated with equipment and tools you need. Provide a detailed analysis
of how your business will operate.
If
you will need investors to help fund your construction company, then you will need
a detailed business plan to help map the overall structure of the business.
Step 6: Get all the required tools and equipment
You
cannot operate any construction company in the world without tools and equipment.
Depending
on the type of niche you have identified, different sets of tools and equipment
will need.
Construction
work is not like other industries; you could get all the tools you need based
on the construction niche you have developed. To reduce, expenses you could buy
second-hand or use products (tools and equipment).
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Step 7: License and Register your business
Another
important step towards starting a successful construction business in the
Philippines is to register your business and get a business license.
No,
one will likely hire you if you do not have a business license in the Philippines.
Having
a construction business license, help increases public confidence in your
services. The license helps protect you and the client’s property or the project
you want to be hired for.
In
the Philippines legal system, the Philippine Contractors Accreditation Board in
collaboration with the Department of Public Works and High Ways are charged
with the registration and handling of constrictors' license.
Once
you meet the legal requirements you will be handed a constrictors business
license which is often renewable for 8298.00 pesos ($150) a year.
Step 8: Get insured
The
best you can do for your small business at the start is to get it insured.
Insurance will help protect your business in case of any issues, theft or
property damage.
There
are different types of insurance within the construction industry, find out
more and know which is best for you.
Step 9: Hire the right staff
Always
do your best to hire only competent and experienced workers and constrictors to
work in your construction company or even when partnering with others.
At
a start, you will need to hire a civil engineer, an architect and an accountant
to help with record keeping and financial transactions.
Step 10: Partner with other construction institutions
A
key towards starting a successful construction business in the Philippines is
to work in collaboration with other similar businesses. Work hand-in-hand with
your competitors and partners. You will learn greatly from the strategies they
are employing to be successful in the operation of their business.
Step 11: Get a website
Build
a website for your construction company. A website will help you easily promote
your business to reach a wide and further audience.
A
website for your business will help potential clients have a good knowledge of
what you do, and what services you offer and have a visual of pictures and
videos of your past and current projects you have carried out so far.
Step 12: Promote your business
Potential
customers will not know about your business unless you promote business.
Promote your construction company with every means at your disposal.
Use
paid ads, social media, flyers, stickers and TV ads if possible. Don’t forget
word of mouth to friends and the neighbourhood would be the first promotional
tactics you must employ.
Step 12: Keep inventory and records
Keeps
a record of every activity you have undertaken even before you start your
construction business. Keeps records of the cost of tools and equipment, records
of any expenses incurred and records of sales and profit generated from the business
on the daily basis.
Keeping
records will help you understand the direction in which your construction company
is heading to.
Inventory
will help you buy only what is needed.
Concluding Remarks
The
construction industry is rapidly growing and fast changing with the advance of modernization
and technology. More jobs are being created every day as new construction businesses
are established. This has helped reduce unemployment among many youths in the
Philippines.
Starting
a successful construction company in the Philippines is not as difficult as you
can imagine from the above steps. It requires careful planning and assessment.