Construction Firms: Develop Your Own with a Franchise

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construction firm

The UK construction industry offers employment to approximately 10% of the country’s workforce and is worth an estimated £110 billion a year. Its sheer size makes it an attractive sector in which to launch your own business. Here, we take a look at how you can go about this, paying particular attention to how franchising can help.

Construction firm jobs

Every construction worker knows that it takes a remarkably diverse array of skills to complete a large project. If you’re building from scratch, a project will require electricians, joiners, plumbers, roofers, and plasterers, amongst others. This means that there’s an almost endless number of ways you can enter into the construction industry. However, if you’re looking to start your own business, your options are more limited.

How to start a construction firm

There are two principal ways in which you can start your construction firm. First, you can go it alone and work your way up - starting as a sole trader, then gradually growing to employ a single employee, then another and another. This "organic" growth is slow and steady, and there's no real guarantee of success. The other option is franchising. Partnering with a franchise gives you a proven business model to follow and a dedicated support network to guide you through the process of growing your business.

Construction franchises

Construction franchises come in all shapes and sizes and typically operate in a particular niche, allowing them to distinguish themselves from the competition. To demonstrate just how distinct construction franchises can be, we've compiled a list of four popular investment opportunities and examined how they differ. Each offers their respective franchisees something slightly different.

The repair specialists – Magicman

In today’s economy, consumers are much warier of spending large amounts of money replacing items in their home and would generally rather seek out repair specialists. Over the last decade, several businesses have emerged as promising future franchise stars by offering cost-effective services that appeal to customers who are a bit more careful with their money. Magicman is one such franchise.

The business specialises in repairing hard surfaces around the home, restoring them to their former state, and ensuring customers aren't forced to replace the damaged item. Whether it's table tops, tiles, brickwork, ceramics, or glass, Magicman can utilise its cutting-edge tools, techniques, and technology to remove any signs of chips, scratches, dents, or stains.

Those looking to buy into the Magicman franchise will be required to make an initial investment of around £20,000. However, additional working capital will be necessary to sustain the business until it begins turning a profit.

The environmentally aware – Green Square

Established in 2012, Green Square caters to both environmentally-aware customers and those who want to implement more cost-effective power solutions in their homes. With the UK government committing to an 80% reduction in carbon emissions by 2050, there is a growing demand for green services and products. As a market leader, Green Square is ideally positioned to become one of the most popular providers of environmentally-friendly technology.

The business stocks a wide range of products, including biomass boilers and stoves, solar thermal heating, battery storage solutions, ground source heat pumps, and solar cells. Many of the products offered by Green Square are covered by government schemes, ensuring that customers have even more of an incentive to invest in the technology.

A Green Square franchise will cost investors approximately £70,000. This includes the franchise fee, start-up costs, personal requirements, and working capital. Up to 70% of this investment can be financed by a respected lender, and the franchise has established strong working relationships with several major banks.

The equipment specialist – Snap-On

If you want to approach starting your own construction firm from a slightly different angle, you could look at becoming an equipment supplier. The Snap-On franchise ensures that tradespeople across the country have access to the highest quality tools and can complete their work to the highest of standards. Founded in 1920, the original business specialised in providing mechanics with an innovative "snap-on" socket – hence the name. Over the next 98 years, the company diversified, becoming one of the world’s foremost tools suppliers and adopting the franchise model to facilitate expansion.

Stocking more than 22,000 products, Snap-On is known for its commitment to premium quality tools and its ability to provide customers with everything they need. One of the key benefits of the Snap-On franchise is its astounding brand reach – it is one of the most well-known names in the industry and is respected by construction professionals all over the world. While this means that franchisees have to meet and maintain the franchisor’s rigorous standards, it also ensures that your business is the go-to supplier for a large number of construction workers.

The initial investment required to open a Snap-On franchise is set at £74,000. However, the franchise operates its own financing programme that means suitable candidates can apply and be approved with as little as £16,037 of investment. Those in the loan programme receive a three-month repayment break to ensure their business has the best chance of establishing itself as a profitable enterprise.

The insurance partners – All Trades Network

Working closely with the insurance industry, All Trades Network offer repair and renovation services to customers across the country. Whether it's restoring an entire home after fire and flood damage, general home improvement, or the repair of damaged household surfaces and items, the franchise can handle every type of construction work.

The franchise maintains a significant roster of workers, ensuring that they’re able to perform any job passed their way. This includes decorators, plumbers, electricians, builders, joiners, and gas and heating specialists. Having established close ties with a number of the UK’s largest insurance companies, they complete work on behalf of both individual customers and firms responding to insurance claims. This means that there's always a steady income and franchises can make the most of diverse revenue streams.

An All Trades Network franchise costs £35,000, of which 60% can be funded via financing options. The business is looking to work with individuals who demonstrate a desire to uphold All Trades Network’s stellar reputation and who can offer excellent customer service. A head for business and some background in finance is also helpful.

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