5 Essential Steps For Starting A Construction Company

By Samuel Okoronkwo

The construction industry offers lucrative opportunities for entrepreneurs. Launching your own business in this field allows you to tap into the market and apply your expertise. However, this specialised industry entails a multitude of safety protocols, regulations, financial arrangements and registration prerequisites that necessitate thorough consideration before entering the realm of trading. 

So, whether your aspiration is to establish yourself as a prominent contractor within your local community or to delve into a specific niche within the construction domain, here are the essential initial steps you need to take to get started…


Market Research 

Prior to embarking on the journey of launching your own construction company, conducting thorough market research is paramount. This step will enable you to ascertain the viability of your business concept in terms of its profitability. Furthermore, this procedure will help you discern whether existing construction companies in your vicinity are offering similar services to what you intend to provide. Analysing your competition will provide insights into how your business could position itself within the market and whether it holds the promise of success.



The significance of a comprehensive business plan cannot be overstated. Crafting a detailed business plan not only helps define your business objectives and processes but is also widely acknowledged in the business realm as a crucial initial step in transforming your concept into reality. Commencing without a well-structured business plan is unlikely to yield favourable outcomes. It’s crucial to assess the demand for your construction services and strategise how to secure your market share, so incorporating market research is an essential aspect of your business planning.


Rules & Regulations 

When contemplating the establishment of a construction business, it’s vital to recognise the array of industry-specific rules, regulations, and taxation obligations that necessitate your attention. This includes The Construction Industry Scheme (CIS). Initiated by the government, this program was designed to establish a payment processing mechanism for contractors to manage payments issued to sub-contractors. Regardless of whether you’re structuring your business as a limited company, sole trader, or partnership, registering under the CIS scheme is obligatory if your operations encompass any facet of the construction industry.



Industry estimates indicate that the average budget for a new construction UK start-up business is approximately £5,000. This is due to the fact that numerous construction firms do not necessitate a physical headquarters to operate from, given that a significant portion of their manual labour is conducted off-site. Despite this, it’s still advisable to strategise in advance and minimise the amount you anticipate borrowing. One significant overhead expense to carefully consider is the number of employees you’ll need to hire.



Effectively reaching your target audience in the design and construction sectors necessitates a strategic marketing approach. Engaging both individual clients and businesses involves emphasising networking, participation in trade events and establishing a robust digital footprint. Building a compelling online portfolio and showcasing customer reviews serve as crucial trust indicators for potential clients, making them valuable investments for the growth of your business.


If you are looking to start your own construction business, remember to: 


  • Do your market research
  • Write a business plan
  • Adhere to the rules and regulations of the construction trade
  • Consider your finances 
  • Use a strategic marketing approach 


Remember, if you are faced with a construction dispute, Mercantile Barristers will be happy to assist. Do use the enquiry form below to contact us to discuss your matter further.

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However, should a dispute become inevitable, then our prior engagement would have assured that all the necessary precautions have been taken and mitigating steps adopted. Thus, clients will begin any dispute resolution in a strong position to achieve their desired objectives.


Whether by adjudication, arbitration, litigation, members at Mercantile Barristers will adopt a firm, swift and decisive approach to achieve the best possible results for clients within the shortest possible time. We recognise that no two cases are the same, so we will adapt our style to suit the occasion.


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