Starting a construction business

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construction firm

Construction businesses offers employment to approximately 10 percent of the country’s workforce and are collectively worth an estimated £110 billion a year. The sheer size of the construction industry 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.

How to start a construction business

There are two principal ways in which you can start your construction business. 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 on our network. Each of them are different, and some don’t fit the mould of the conventional, bricks-and-mortar construction business.

They all represent different ways of entering the industry, and offer franchise packages that fit a range of budgets.

Magicman construction franchise

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 a case in point.

The business specialises in repairing and restoring hard surfaces. These include:

  • Table tops
  • Tiles
  • Brickwork
  • Ceramics
  • Glass

Magicman uses its cutting-edge tools, techniques, and technology to remove any signs of chips, scratches, dents, or stains from hard surfaces.

Magicman franchise business

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.

If you are unable to afford the initial investment, Magicman can put you in contact with credit providers that can fund up to 60 per cent of it.

In return for your cash, you will win a place on the transformative Magicman training programme. It covers all the bases for a successful construction business, such as:

  • Management
  • Health & safety procedure
  • Financing techniques
  • Profit maximisation
  • Supplier relations
  • Marketing proficiency
  • Materials inventory

Green Square construction business

Established in 2012, Green Square caters to environmentally-aware customers that 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
• 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.

Green Square franchise opportunities

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 percent of this investment can be financed by a respected lender, and the franchise has established strong working relationships with several major banks.

As well as having access to the right of start-up capital, successful candidates for a Green Square franchise are also going to need strong customer service and project management experience.

With that on your side, Green Square are not going to expect you to have previous experience in the energy sector.

Snap-On construction business

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 – and gave the modern company its 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.

Snap-on business model

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.

Snap-on franchise opportunity

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.

All Trades Network construction business

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. These include:

  • Decorators
  • Plumbers
  • Electricians
  • Builders
  • Joiners
  • Gas and heating specialists

All Trades Network business model

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.

All Trades Network franchise

An All Trades Network franchise costs £35,000, of which 60 percent 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.

Other construction franchise opportunities

When a construction business starts a new build, it relies on a number of tradesmen to get the job done. Each one is required to make a house a home, from electricians to roofers.

As we have already seen, there are plenty of construction franchise opportunities available beyond a conventional bricks-and-mortar firm. If you still haven’t made up your mind, you may want to consider a driveway franchise. Here are two such businesses that are making noise on our network:

  • Daniel Moquet Driveway Designer. After claiming the title of France’s 2017 Top Franchise Network, this driveway franchise has crossed the channel in its pursuit of innovative landscape design. Daniel Moquet Driveway Designer has been trading for over 40 years, and 14 of them have been spent franchising. If you want to join a team of franchisees that has been recruited from a diverse range of backgrounds, the opportunity is yours for a minimum investment of £40,000.
  • Oltco. This construction business is the UK’S number one provider of resin driveway solutions. Oltco were the brains behind the UK’s first driveway made from waste plastic, which they created from the equivalent of 3,000 plastic straws.

If you want the opportunity to sell and install your own resin bound, recycle bound and rubber crumb driveway surfaces, you need to act fast. Oltco only makes five franchises available per year – and at a price of just £30,000, they’re going to be snapped up fast.

Should I start a construction business?

There’s an almost endless number of ways to start a business in this sector. With all of the added perks – from brand recognition to established contacts – franchising is the best route to take.

What’s more, construction franchises tend to not demand industry experience from franchise candidates. In a lot of cases you will just need to be able to demonstrate a can-do attitude and a willingness to graft. That makes them some of the most accessible business opportunities in franchising.

With housing construction on the increase in the UK, there is plenty of demand for trustworthy tradesmen. Partner this with the decrease in young people wanting to learn a trade – which has the knock-on effect of reducing competition - and you’ve got the conditions for a successful business.

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