Some of the most successful startups in the world began during times of economic turmoil. It might not make sense at all to the average person, but it is true for many entrepreneurs who have benefitted from recessions and global economic slowdowns in the past. Since the global economy is still crawling out of recessionary pandemic conditions, now is the best time to start your own scaffolding business. In fact, if construction sector growth and projections are anything to go by, sitting on your dream a little longer could cost you losing out on some great startup opportunities now. This blog will tell you 10 Easy Ways To Turn Your Scaffolding Business into A Success.
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Table of Contents
Setting Up Operations
The most important qualification you need is to be competent for the type of work involved in scaffolding. Make sure you have the training and you are competent in all the requirements you need to fulfill. It is essential that you have a solid foundation of the technical complexities involved in this business. Or if you’re an entrepreneur who is seeking to invest in this business because of growth potential, ensure you have skilled employees lined up and a competent supervisor who will oversee all projects with you.
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Determining Your Start-up Costs
Of course, a crucial aspect to consider when setting up is to establish the startup costs necessary to become operational. It’s estimated that for a start-up a cash injection of around $10,000 to $50,000 is usually required. This amount takes into consideration the modular scaffolding equipment you would need to rent out. However, you might want to also include the costs of hiring a supervisor, full staffing requirements, as well as all other related costs of the business.
You might want to include details like the importance of making sure you utilize banner printing around the site where your team will be responsible for the assembly of scaffolding. You will also need to decide if you will be renting a workspace from which you will operate.
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Keeping Overheads Low
Keeping your overheads low during the startup phase is wise, so finding effective ways to keep costs down while establishing some leeway in the market to come up with a strategy that will have you nail your first few work assignments is a good idea. For example, you could decide that it may not be necessary to rent working space, as you could easily operate from your garage or on a family business site as a start. Alternatively, you could try and find a space with an initial low-cost rental agreement.
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Taking Out a Loan
During recessionary times, it might be easier to take out a business loan to cover your start-up operational costs. Financial institutions tend to offer startups or new businesses loans with lower interest rates. Usually when the economy is strong, banks have less reason to incentivize low-interest borrowing terms to new businesses. So, starting a new business during tough economic times has some advantages with regard to loan repayment terms.
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Purchasing Your Essential Business Assets
Dealing with purchasing decisions of scaffolding should be a priority before you apply for the loan. Every decision is an important one to make. But when you’re a start-up, it is imperative to weigh the pros and cons of buying new or used scaffolding. Buying used equipment doesn’t mean you are less guaranteed success. It is a good option to consider, as long as the equipment is in great condition and comes with a more affordable price attached to it. Check out online stores, construction supply stores, and also private listings to locate affordable scaffolding to get you started!
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Determine Your Business Structure
When you start up a business, it is important to establish from the outset the structure and formation of it. So, what would be the best structure for a new scaffolding business? There are various options you can look at. But perhaps the easiest would be to go for the sole proprietorship because of the simplicity of creating it. Make sure you understand all the legal implications involved for your choice of business structure especially with regards to the liability of the business for which you will be held accountable. If this does not suit you, it would be best to opt for other options that secure limited liability.
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Permits & Licenses
As a business, you need to be accountable and responsible to ensure your success. Given the nature of the scaffolding business, ensure that you have special permits or licenses secured before becoming operational. Also, make sure you comply with health and safety standards. For example, you can utilize banner printing on-site as a great way to warn people of the hazards and dangers around the scaffolding.
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Liability Insurance
Given the element of risk and danger involved in the business of scaffolding, liability insurance for your business is an essential consideration. By purchasing it, you are protecting your workers and third parties. Start-ups are always at the risk of running into bankruptcy quickly if proper planning is not done. To avoid this, you need to insure yourself against such risks.
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Be Competitive, Cost-Effective, & Profitable
This is the bottom line, isn’t it? So, do your homework, learn more about the competition in your area thoroughly, and strategize on how you can create your competitive advantage in the market to ensure success. Being the new kid on the block can be daunting, especially if you don’t know who the main players are. So, work on your market strategy. Create a price list that is close enough to the market rates to ensure profitability. Undercutting your competitors must be profitable. So, just don’t decide to be the cheapest unless you have clear advantages stacked up in your favor.
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Look On The Bright Side
Things are looking up for the local construction sector. If you’re ready for the market, the next three years could be an overall stronger recovery than 2021 and your business might be more profitable. Before you get started with the scaffolding business, learn everything you can about the construction business sector and line up some lucrative projects that you want to work on. Start making new contacts, networking, and enter the market with gusto and determination.
Conclusion
If you’ve attended any business coaching talks in your life, you probably heard this mantra over and over again, “Don’t wait for the conditions to be perfect. Go out and just start it.” It is the absolute truth. Now is always a great time to start your own successful scaffolding business. So, don’t wait for the pandemic to blow over or look for more excuses to avoid doing what is necessary to get your business successfully operable and create the revenue stream you need in your life.
