Investing in Construction: Considerations for New OwnersOn October 31, 2020 by Vanessa Simmons
Being a construction worker is tough, but starting your own construction business requires a different type of toughness. You have to be able to manage your projects, grow your business, and handle customers. Not to mention, it would also behoove you to get smart about the real estate industry.
You’re going to have to make some tough choices as the owner of your own construction company, and some of the toughest choices you have to make revolve around investments. You have to make sure that your company has all the equipment it needs, plus you have to invest in auxiliary services for different projects. Continue reading to learn more about some investments you should make when starting your own construction company.
The more services your construction can provide, then the fewer you’ll have to pay for. It would be best to provide as many of the services you’ll need at every job site (concrete, electricity, roofing) yourself. Hiring your own staff will be more cost-efficient than hiring subcontractors because you won’t have to pay them a subcontractor’s wage on top of paying the subcontractor’s staff.
If you do decide to build your own foundations and pour your own concrete, then you’re going to need an asphalt pump at your facility. Leistritz Corporation makes asphalt pumps that are able to pump asphalt at lower temperatures, which allows you to save time and money on your operations. In addition, you can also sell asphalt or asphalt products to your competitors.
Unless you own your own landscaping business as well, then you don’t have time to handle that part of the construction job. If you need trees, bushes, and shrubs cleared from a property, then you’d be better off calling a landscaping or tree removal service than having your construction workers do the job. Not to mention, your crew will be none too pleased about having to do landscaping work.
When it comes to outsourcing portions of projects, you need to develop relationships with subcontractors you can trust. If you’re always looking for someone to complete the same tasks on every project, then you’re going to end up wasting time and money and missing deadlines. If you’re in need of tree trimming services, then visit treemusketeers.net/trimming/ to see how partnering with them can make completing your projects faster, easier, and cheaper.
As the owner of your own construction business, one of the best investments you can make is in undeveloped properties. With your construction business, a few pieces of land, and a business plan, you can become a real estate mogul on top of being a contractor.
If you’re looking to buy an investment property to develop, then you need to do your due diligence and market research. Know what the area has to offer in terms of real estate before you purchase a piece of land and start building on it. Some places will be good for residential properties and others for commercial properties, and some will inevitably be good for nothing.
Even though you’re a contractor, you still need to get a grasp of the business side of real estate and land development before making an investment as significant as a property. Yieldstreet is an online platform that’s designed to help newbie investors with alternative investments. Check out this Yieldstreet review to see what investment experts are saying about it. With a Yieldstreet account you can access information about high yield alternative investments. Even beginners can profit from Yieldstreet products like a Yieldstreet Prism Fund, or a Yieldstreet Wallet Account. The good news about earning on your alternative investments with Yieldstreet is that you can spend the funds you earn on tangible assets in the real estate realm. So no matter the type of investment you get involved in, it’ll allow you to earn more and money that you can use on your new construction business!
What is a construction company without work trucks? One of the biggest investments you’ll have to make is in work vehicles. Sure, some of your guys will already have trucks, but you’ll still need a way to get your tools, equipment, and even some of your workers to and from job sites.
When looking for work vehicles, the most important things are towing capacity and durability, not looks. Your vehicles will be carrying industrial tools, riding through dirt and mud, and taking a beating daily — they’re not going to win any beauty pageants. You don’t have to go out and get the biggest or most expensive vehicles you can find, but they need to be big enough for your crew as well as your tools and equipment.