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.