How to Start Your Own Construction Franchise

When it comes to starting a profitable business, it’s hard to find a sector more exciting to be working in than the construction sector. As one of the country’s most important and profitable sectors, you can expect to find plenty of profits and plenty of opportunity. Here’s how you can start your own construction franchise.

Of the many thousands that dream of starting their own construction franchises, only a small percent ever do. Often we go into the process unprepared, lacking the right resources, or simply without the right experience to make a success of it the first time round. 

But there are some things every aspiring construction franchisee can do, and in this article, we’re going to run through exactly how you can start your own construction business. 

What does a construction franchisee do?

As a construction franchisee, there are dozens of different industries, sectors and specialisms that you could choose to work in. Whether you work for commercial or civil engineering clients, you will be responsible for taking charge of many of the day-to-day responsibilities of running your own business. This can include:

• Meeting new clients
• Putting together proposals and plans
• Chairing internal and external meetings
• Negotiating with suppliers and tradespeople
• Marketing your business.

Every day as a construction franchisee is different though, and these are just some examples of many of the things you may end up doing. If this all sounds good to you, and you’re still keen to start your own franchise, here’s what you need to do.

How to start a construction franchise

1. Find your market

You’ll need to start by figuring out what kind of services you want to offer. Decide whether you want to work commercially, for public contracts, or in a different niche altogether. There will be certain franchises that are a good fit for your business ambitions - as well as some that aren’t - but regardless of what kind of clients you’re looking for, you can always count on the support of your franchisor. 

When you choose to run a business as part of a franchise, you can look forward to reaping all the training and support that working with a franchisor gives you:

• You’ll have extensive training and support, before and after you open your business
• You will have a pre-existing reputation and customer base
• There will often be specific and tailored mentoring to help you develop your skills
• You will have better than average rates for loans from major high street banks
• Access to all the national marketing and branding you need to advertise your business

2. Finance your franchise

You’ll need to figure out how to afford the costs of setting up a big construction business. The final start-up costs that you need to pay will depend on the size, scale and location of your business, but unless you’re able to pay directly, you will need to put together an affordable way to finance your new business.

As mentioned above, because franchising is often seen as a safer way to run a business, many high street banks are prepared to lend up to 70% of your start-up costs, depending on your credit history. So your financial situation doesn’t necessarily need to be the end of your franchising experience. 

3. Decide on your operational area

Much of your business’ margins will depend on the area you’re working in. If you’re operating in a larger, metropolitan area, both your costs and profits can expect to be higher. If you’re more rural-based, the opposite may be the case.

There is no right or wrong answer to which is the better area to work in, it simply depends on your own business. But if you want to open a physical shopfront or store or headquarters, you will need to have a good idea of what area you want to work in. 

4. Put together a business plan

Business plans are important documents that set out the aims and objectives of your business. It will need to contain details about your inventory, financial projections, future growth, recruitment and any other key business details. It isn’t a legally-binding document, so it is likely to change over time, but this is one of the final steps to getting your business up and running.

5. Sign a franchise agreement

Finally, you’ll be in a position to sign your franchise agreement. These documents are legally vital documents, so if you’re not entirely comfortable or sure how to understand it, go through it with a legal adviser.

Franchise agreements are the ultimate culmination of all your hard work, finally making your construction franchise a reality. This document sets out your commitments, the commitments of your franchisor and what will happen if either party can’t keep to the agreed path. Should worst come to worst, your franchise agreement could end up being suspended should things not go to plan.

Start a profitable construction franchise today

Construction is one the UK’s busiest industries to work in. For the right franchisee, there are plenty of profits and opportunities to be had in this industry, so if you’re ready to start your own construction franchise, you can look forward to some exciting times ahead. If you’re ready to go right ahead, consider some of the key tips that you will make your construction franchise a lot more successful. Or consider how to choose the right construction franchise for you.

If none of these opportunities sound quite right though, you may be better off searching through the UK franchise directory, where you will be able to pick and choose the right industries and opportunities for you.