Starting a construction company in Nigeria can be very rewarding, but takes lot of effort. Learning how to run your own construction company will provide a full source of income that allows you to be independent. Running construction company requires a good market research and plans to increase your chances of being successful.
Opening a construction company entails about drafting a plan to understand the market, and challenges and as well as how to manage them. You must know the producers involved to earn a customers confidence.
Nigeria is a gold mine for business opportunities like a construction business. Your construction may focus on buildings, electricals and other structural aspects that may require the services of a construction company definitely, if you commit your time and effort to plan ahead of time, you can have a profitable construction business in Nigeria.
How To Start A Construction Company in Nigeria
Here are the steps you should follow if you want to start a profitable construction company:
1. Conduct Market Research:
Before you think of opening a construction business, you need to know how the market works, investigate the profitability of already existing construction company in your area by researching their markets trends and date. You should understand how they offer their services and their mode of operation, with their charges. In addition, you should find out the demographics in your area, is it suitable to establish a construction company? Because you need to offer the services needed in your area which can be affordable.
2. Develop A Business Plan:
You should have in mind that business plans are essential to your business success. A good business plan will be required to obtain data and analysis of your own ideas on how to approach and run a successful construction company. In fact, a good business plan is already a blueprint of moving your company forward, including your services, target market, competitions, management, and a good marketing strategies for your business. You might hire a professional to help you write one, if you dont know how to present a detailed business plan.
3. Choose The Right Location:
You will need a place that provides large spaces for your tools and equipment and as well to accomodate your scale of business. Finding a good office location should best suit the business and easily accessible to your customers.
4. Register Your Business:
The first steps in making your business legal is by registering your business. The processes for registering a business in Nigeria is not too complicated. Before you register your construction company, you need to come up with a unique name for your business. Check out your state construction companies to ensure that no other business is using that name.
In Addition, you will have to choose your business structure, whether to run as a sole propretorship, partnership or a limited liability company. It is now within you to choose your company’s business structure and their terms and condition are already their. Licensing your business is very important in order to get an operational permit to run your business. You can apply for license in your state of operation. Note that the licensing requirements range from state to state, thats why you need to check your state requirements.
5. Buy The Necessary Equipment:
You will need to have the necessary equipment needed for your construction company. The type of equipment to buy, depends on your area of concentration as a construction company and depending on the services you are rendering. You can decide to buy used equipment, as it is a wonderful way of saving more money, especially when you are still getting started.
6. Hire Employees:
This option depends on the size of your business, you may not need this option if you are starting small. But as a big construction company, you will need to hire skilled and reliable employees. You also have option of hiring the services of contractors.
Network with other construction companies, try joining any association in your state/area to make more connections with people, if eventually you want to be successful. It is very important to build a relationship with your employees, suppliers, contractors, developers, etc.
7. Establish A Good Marketing Strategy:
Marketing your construction business should be your main target, there are various media outlets that allows you to reach out to potential customers. Starting a construction company in Nigeria will require the crucial element of advertising. Not only offline marketing, build a strategic online marketing that can convert clients for you.
Fortunately, you can engage in printed materials like flyers, business cards and postcards for essential marketing.
You can consider going for television, newspaper or even radio advertising. This can be another great opportunity to meet potential clients. Implement your marketing strategies to get an amazing result.
Cost Of Starting A Construction Company In Nigeria
The startup cost associated with a construction company in Nigeria varies proportional based on how, where and system of operation and services rendered. Keep in mind that you will need capital for equipments and tools, licensing and other establishment needed. One can start a construction company with $50,000 or more.