Top Challenges facing Start-up Construction Companies

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July 2, 2019
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Top Challenges facing Start-up Construction Companies

All new businesses face challenges, some challenges are however specific to start-up construction companies. We will see them in this piece and most importantly, get you ready for them.

Recently, the construction sector has been experiencing massive influx, and so, If your company must thrive, there are challenges you must spot and overcome ahead of time.

Some of these issues, without your knowing it, may even be hindering your business already, hence, taking swift actions are imperative.

To be guaranteed of success in the long run, you need to distinguish your business from the lot, and the guidelines to accomplish this have been marshaled out in this text.

Why Should You Start a Construction Company?

According to Statista, global construction recorded a new volume high in 2018, with a total of 11.4 trillion US dollars spent on worldwide construction in the same year. 

The industry, has since then, experienced consistent growth, and this isn’t going to stop. Frost and Sullivan, a renowned research institute based in California, reports that by 2030, about $17.5 trillion US dollars would be spent on global construction.

Exams and Record building, IMT, Enugu

Also, Redshift infographic has it that construction industries around the world would need to build at least 13000 buildings each day between now and 2050 to match the expected population surge of 7 billion people. 

You can see that contractors have an overloaded schedule in the future. So, the world needs as many contractors as it can get. 

Therefore, there is no doubt that now is the right time to start your own construction business. You must however keep in mind that with great ambition comes great responsibility.

What Challenges Will You Face In your Construction Business?

As with every other business, you need to plan. Only then can you spot loopholes and tackle them earlier on before major damage is done.

Outlined below are the challenges most construction companies face in their startup

.Trust and Brand name:

When you get the trust of your prospects and customers, you get more projects and are open to more opportunities.

Building your trust and Brand name will require a lot of consistency down the pike, so you need to start as you mean to go on.

All project developments will normally involve clients committing a lump sum to contractors. But because your company is still young, clients might be scared to trust you. As they don’t want to end up with a shoddy project, or at worse, duped.


The challenge of trust and Brand name could be tackled gradually. You may need to begin by accepting direct labor contracts. The client purchases all the materials required for the project, while you mobilize labor and handle other technical aspects of the project. This way, clients are relaxed and have only technicalities to worry about.

• Experience:

To be successful in the craft, you need as much experience as you can get. Theoretical and idealistic knowledge of building construction doesn’t equate to hands-on experience. The more experience you rack up, the better you get at the craft, else, you will make mistakes without even recognizing you are making one.


You need to get exposed to as many job sites as possible. Visit different sites, learn how the contractors are managing their projects. 

Attending conferences will also get your knowledge more up-to-date.

If you find you are lacking confidence to independently start and complete a project, then you should get an internship placement. 

Acquiring experience involves different strokes for different folks. Be confident in your learning curve, do what works for you, and learn again. 

• Building a Client Base:

To truly survive and stay in business, you need to build a strong client base. To accomplish this, you must forge a solid reputation. 

But how do you go about this?

Do voluntary jobs. Not all projects will make you money, however, you can capitalize on them to build your network.

Try to network with your potential clients while on the volunteer job, you could go for a drink, chat and connect. 

Another way to go is to submit proposals to work as a subcontractor for bigger construction firms. The networks you have built over time may help you in this— you could easily get recommended to these firms by someone you know.

Moreso, you may want to consider sponsoring certain events in your locality using your brand name. 

The idea is to put your company on everyone’s face. You need to be the first person people in your locality think of when they need a contractor.

Other Steps Needed to Build a Successful Construction Business

➢ Offer to Market Other Companies’ Services:

This is a really clever marketing strategy, and you need to apply it. You could advertise a plumbing company or a firm that deals with building materials, whatever you wish, so long it is part of your proposed trade. 

Through this, you get the attention of other companies’ audiences, and probably their job offers too.

➢ Join a Sports Or Golf Club:

IBB International Golf and Country Club. Golf course

Most of the time you might not find your clients on the internet.  Facebook likes and twitter retweets may not translate to actual customers, hence joining a local or state sports club might just be what you need. 

Talk to your club members about your business, and you might just end up being everyone’s favorite contractor at the club.

➢ Gather Your Team:

Being organized is key if your business must thrive. Find and retain a loyal team of competent craftsmen you can call upon at any given time. At this starting stage, you will need all the funds you can get for your business to be scalable. Therefore a background knowledge of all services you offer will help, as you won’t need to hire a craftsman for every little fix.

➢ Deliver Every Project as though it’s your last:

The last thing you want to do at the early stage is cut corners. Make sure to use proven brands of materials. Your projects need to stand the test of time if they must become a reference for other potential jobs. 

Your client may not know much about building materials and techniques, but they will be certainly aware when things start to crash. 

Construction of Event Centre at 9th Mile, Enugu

➢ Build a Consistent Online Presence:

Construction might be an offline business, but your customers are online.  So, solidifying your online presence is crucial to your company’s growth. Constantly provide meaningful and up-to-date content that pertains to your projects and niche. Know which period of the day you would have your target audience especially now you are just starting. Avoid controversial contents. That way you will constantly engage and build a whopping audience for your business.

Finally, building your construction business to a staggering height will of course involve years of dedication and hard work. There’s no specific way of getting there, but diligence in every sphere of your business will do the magic. Hence, following the guidelines prescribed in this article is non-negotiable.

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