How to open your repair and construction business

* The calculations use the average data for the World

In any relatively large city today there are many construction projects. The construction of multi-storey buildings almost never stops, but, as you know, builders do not do interior decoration, and the buyer of a new building gets an apartment in which they still need to make a full repair. And in many already residential apartments, finishing and construction work are constantly required. A rare person starts repairs on his own, so the services of repair and construction teams are in sufficient demand in the market.

These broad-based specialists offer their customers quick tasks, the cost of their services may vary depending on the level and popularity of the team, but it is not difficult to find builders and repairmen in any city. This niche of the business is quite densely occupied, because it does not require serious investments, and a person with a building education, if he wants to do his own business, will probably choose not to open a full-fledged construction company. The level of competition in this direction is very high, and it is quite difficult for a beginner to enter the market, he does not have a reputation and a well-known name, while many construction crews already have an established clientele.

On the other hand, residents of new buildings, people who first encountered the need for finishing work, are trying to find out information about repair and construction teams in common sources, for example, on the Internet, and here a young company has a chance to interest its client in a more advantageous offer of services, rather than famous name. In this regard, even a start-up company can take its place, but for this you will have to constantly engage in a marketing campaign and earn a positive reputation.

At the first stages, a small number of orders can be economically justified, but subsequently the organization must develop, and in order to survive in this market, it is necessary to offer its customers truly high-quality services without hacking.

It is also worth noting that a relatively large number of repair construction crews today just offer low-quality services, they are builders who are engaged in finishing in their spare time from their main work and therefore rarely care about good work, but offer the customer a low cost and short terms, which especially attracts consumers. These are the teams that bypass with random orders, may not have very good reviews in the market, but at the same time they survive thanks to connections and apparently favorable conditions. Thus, the newcomer should ultimately offer competitive conditions, but also strive to set their prices below average.

The repair and construction team offers a wide range of its services, from simple cosmetic wall finishing to laying communications. OKVED codes are selected depending on the list of services, but all such activities fall under the definition of a general group (OKPD 2) 43 Specialized construction works. In order to start your own business, you need to register as a business entity, and in the case of a small company, it makes sense to choose the form of individual entrepreneurship, because it takes less time, requires less serious reporting, and as a result, registration costs a little cheaper. If there is a need to register a legal entity, the form of a limited liability company is preferable, because in this case, as in the case of individual entrepreneurship, a simplified taxation system will be available.

Currently, obtaining special construction licenses is not required, but for legal business, you must join a self-regulatory organization (SRO) for construction. In this regard, it is impossible to accurately determine the amount of necessary investments of the entry fee and other conditions for accepting newcomers to a self-regulatory organization, because each of them establishes its own conditions and requirements.

It is strictly forbidden to work without joining the SRO, but this also has some advantages. For example, in a self-regulatory organization, information may appear that it will transmit to its members. Also there appears information on state grants and competitions that can be used. In any case, the entrepreneur now no longer needs to constantly contact the state authorities and engage in their activities under the supervision of governing bodies. SRO issues work permits, and although it requires its members to fulfill all the conditions set, it is less demanding.

Next, you need to think about finding a room, while seriously it is worth considering the option of generally lacking your own office and representative office. If the budget is limited, then you can conduct all negotiations with your customers at their home, all the more, this will combine negotiations with the assessment and calculation of the cost of work. Clients rarely judge a company by its office, because it is much more convenient for them when the team immediately arrives at the place and there is no need to go somewhere. In this regard, you can significantly save on rental premises in the first months of work, especially when there is still only a small number of orders, and the company goes without work for many days. However, you will have to think about your own office later, because the developing company is increasing the range of services provided, the level of its service is increasing, and it cannot do without its own representative office.

To do this, it is better to look for a room in the area of ​​major construction, for example, in a new quarter under construction, which will soon be commissioned, and apartments will be sold. Of course, sooner or later the quarter will be completely populated, and the demand for finishing work will gradually fall, but by this time the company will have a good reputation, which will allow it to work throughout the city, and in extreme cases, it should be able to move to a new quarter. Therefore, if the company has not yet become widely known, it is worth renting small offices with the possibility of quick relocation.

It should be noted that the repair and construction business is better to start the entrepreneur who is versed in the repair and construction, but also has a higher professional education and sufficient work experience to personally manage the construction or repair process. Of course, complex projects require the involvement of a large number of people, including additional managerial personnel, but it is preferable for an entrepreneur to personally manage the work of his employees. In other words, the businessman himself should speak directly at the site as a foreman, otherwise the brigade with its own foreman does not need to work for a third-party company, because, having received the object, it will strive to keep all the profits for itself. It follows that a team with a foreman attracted from the side with a high degree of probability will begin to engage in the provision of their services bypassing the employing company, without worrying about the reputation and image of the latter.

In this regard, the repair and construction business can be recommended to those people who can independently manage the construction and repair process and who want to organize their own business, but for entrepreneurs who are far from construction, it is better to choose some other area of ​​their activity, and if there is a huge the desire and / or prospects to engage in this particular area, it is necessary to study the main points of this business, but also constantly monitor the work of its employees.

The decisive factor in such an undertaking will be the selection of their own team. It is people who depend on the quality and speed of work, so this issue needs to be approached very carefully. In the labor market today, you can easily find repairmen and builders, but they will not always be qualified employees, responsible and not seeking to deceive the employers and / or the client. This is one of the reasons why it is recommended to independently carry out the work of the superintendent or at least constantly monitor the work of his team. Surely a lot of time will pass before we can find truly honest and qualified workers, and at first we will have to cooperate with various people.

However, in this type of business, it makes sense to consider hiring people only after receiving an order. That is, employees are not on the staff of the company, but are hired from the outside only when necessary, this can significantly reduce the cost of maintaining their company, because there is no need to pay a fixed salary. And repairmen themselves can work on the side in their spare time from orders, which will bring you additional income, which means that they will exclude dissatisfaction with the main employer. A significant drawback of this approach is that employees will not be directly subordinate, and therefore will not always be able to take on tasks, but this problem is partially solved by finding spare people who work with the company only for the duration of the task.

For a large company that constantly has orders, it is much easier to maintain the staff of its own employees than to constantly look for them on the side, so such unofficial cooperation is acceptable only in the early stages of work. In addition to the brigade itself, you need to find people who can perform additional tasks; This includes technologists, design engineers, surveyors, designers and architects. These people will be required at later stages of work, but you need to think about finding them from the very beginning.

A repair and construction company should offer its customers not only interior decoration services, but also a whole range of additional services, which include drawing up a project for redevelopment, regulation of all legal issues or assistance in them, creating a design project, dismantling work, installing communications, replacement of windows and doors, plumbing and electrical work. This list can be substantially supplemented if there are relevant employees and opportunities. All business processes that are not related to the profit of organizations should be outsourced, because it is much more profitable economically.

For your work you need to purchase several sets of appropriate equipment, but there is not always a need to purchase an expensive tool. The main task of the equipment is that the craftsmen can quickly and efficiently perform their task, so simple devices that are not equipped with various functions are often suitable for them. All equipment is purchased in several sets so that there is a spare tool and it was enough for several teams for simultaneous calls.

The repair and construction team must necessarily putty the ceilings and walls, paint work, wallpapering, laying the floor, plumbing and electrical work, replacing doors and windows, including from wooden to metal-plastic. The arsenal of employees should contain various devices for working with different types of materials, and in addition there should be tools for waterproofing, thermal insulation and sound insulation. Therefore, a large number of various small building tools are bought such as: a level, a drill, a puncher, a screwdriver, a jigsaw, a miter box, sets of brushes, rollers and spatulas; roulettes, knives, graters; simple building kits, including pliers, screwdrivers, hammers, chisels and awls.

You also need to buy a large number of consumables, which are hardware and typical consumables for the work (mounting foam, two-component mastic, glue, paint and varnishes). However, too many consumables do not need to be purchased immediately, you should only keep them in reserve in case of unforeseen circumstances, while all consumables should be purchased only by receiving an order and calculating the estimated costs. Only what is needed is bought, and materials such as wallpaper, tiles and the like finishing elements should be purchased only by agreement with the customer; moreover, he often buys them on his own.

Depending on the proposed list of works, the purchase of special clothing may be required if employees perform work harmful to life or health. The most serious protection is a special suit covering the whole body with a respirator. But it is necessary to use it only when carrying out a limited list of works, in most cases, the repair and construction team can do with simple and convenient construction clothing.

For workers, you should buy special vehicles on which they will get to the place of work. To do this, you can buy a small van, which will fit all the necessary equipment and purchased materials. This is not always necessary, because employees can have their own car, which is more convenient for them to drive, but for their own needs, an ordinary inexpensive car can sometimes be indispensable. Its minimum cost is 200 thousand rubles, but for such an amount you can buy only a used car in not the best condition.

In order to attract your customers, you must, as already noted, closely engage in an advertising campaign. To do this, you should post information about yourself on all thematic portals on the Internet, give advertisements in the local media: radio, television, print media (although you no longer have to wait for much effectiveness from this method of promotion).

Most often today, people are looking for interior workers on the advice of friends and acquaintances; those potential customers who have no one to ask for advice or get a recommendation look for information on their own mainly on the Internet. Therefore, you need to seriously think about creating your own website, which will become an important information and advertising platform for the company. The cost of creating and promoting a site can be very significant depending on the topic, content of the site and the level of competition. However, it is through the Internet today that you can find the largest number of customers, because the site immediately offers a list of prices, a list of services and all working conditions.

The cost of the repair and construction team varies depending on complexity, and among professionals there are several groups of repairs. By complexity, and therefore by price, repairs are divided into cosmetic, economical, capital and European standards (European-quality repair). The cost of the latter is usually 3-4 times higher than the first, and therefore a European-style repair for 1 square meter costs the client about 6 thousand rubles, and cosmetic one and a half thousand rubles for the same area. However, these rates are very approximate, and the exact cost is determined on the spot.

The most time-consuming, energy-intensive and time-consuming work can cost customers several times more. Therefore, such a business is beneficial when there are a large number of orders, but a significant drawback of such a business is its seasonality, because in the cold season, almost no one is engaged in repairs. In this regard, the repair and finishing business should be carried out together with some other business, unless, of course, there is a need to receive money all year round.

Matthias Laudanum (c) www.clogicsecure.com - A portal to small business business plans and guides

08/18/2019


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