The construction industry is one of the robust in the UK, thanks to fertile ground for investment and continually high demand for both infrastructural and private development. Construction work is highly skilled, and extremely lucrative; even for an entrepreneur with relatively little hands-on experience on a worksite, a start-up in construction could be a shrewd way to establish a business presence in the UK.
But construction faces difficulties, just as with businesses in any other industry. Whether a small-time tradesperson creating your first limited company, or a big-ideas businessperson building a progressive team for future developments, it is important that you spend some time mitigating what could be existential risks to your business’ success. How exactly can you futureproof your business?
Delegate Risk Management Carefully
Generally speaking, construction businesses earn their keep on a project-by-project basis. These projects will differ in a large variety of ways, from scope and client needs to the shape of the team running the show. Each project will also have its own subset of risks attached, whether tied to the geography of the build zone or the finances of the project as a whole.
Early on in every project, it is vital to identify and formalise these risks. Doing so prevents a sudden change from blindsiding and potentially scuppering the project, and also gives you the opportunity to delegate risk management. In assessing risk and placing responsibility for each risk at the relevant party’s door, you can effectively mitigate risk across the board – and also minimise liability in the process.
Insure, Insure, Insure
Of course, doing this will not completely absolve you of responsibility for certain elements of the build – and will certainly not shield you from the financial cost of certain events or emergencies. Here, the importance of builder’s insurance is rendered all the clearer.
By insuring each project as it gets underway, you ensure that setbacks or delays will not directly impact your start-ups finances – a vital undertaking, where your start-up’s relative lack of capital or assets can make even one setback an existential risk.
Research Your Industry
This may seem a basic point to make, but knowing your industry is vital to longer-term success. Failure to keep a finger on the pulse of the industry could see you being left behind by faster, more agile competitors. One key overarching risk for your business is obsoletion – particularly where other businesses are quicker to adapt to sustainable engineering or legislative requirements.
You do not want to be left behind when it comes to industry progress and priority shifts. As such, you should always be on the look-out for new technologies to incorporate into your business’ oeuvre. Likewise, you should be expanding your client reach accordingly, to win projects with newer financiers before other start-ups beat you to the newer, fertile ground.
