Ready to start your own building business?

With construction booming in many parts of the country, it’s likely that a number of carpenters and builders will be thinking about starting out in business for themselves – but how can they be sure they’re ready?

Two common questions I get from those looking to strike out on their own is ‘what do I need to prepare?’ and ‘how will I know I am ready?’

Some builders would say you start by getting a great business name, logo, business cards and a business account. Others would add a signwritten vehicle, marketing materials and some friends and relatives who will give you enough work to get started on your own. All of these are good recommendations, but they certainly aren’t the only things worth considering.

I’ve met people who, in spite of doing all of the above, have not started well and I’m sure you’ve heard similar stories. Maybe they started too soon, or didn’t get it all together in time, or maybe there were other essentials missing.

So, how will you know if you are ready?

1. You can handle change

Leaving the routine of paid employment to start out in business undoubtedly involves change; an obvious one is the way you’re paid.

No longer will your employer pay you regularly. Instead, you will be paid directly by your customers, and not necessarily on a consistent basis. You will need to change your preconceptions about money, where it comes from and how you manage it.

Then there is change in the nature of your work. As an employee, you worked in a particular area. If you were on the tools, then that may have been all you did each day.

However, as a business owner, you will be responsible for finding, pricing and tendering work, organising a team, administering the business and handling the money.    

Furthermore, you will need to alter your view of time. As an employee, someone likely told you where to work and what to do. As the business owner, it’s your responsibility to decide when to work and how to spend your time. Changes here often require a radical rethinking of priorities.

2. You see opportunity in adversity

Adversity is an essential ingredient for success. I have yet to meet a successful business owner who hasn’t had at least one thing go wrong. It just seems to be in the rules! Being in business almost always means experiencing adversity at some point.

It’s not simply about enduring adversity. Rather, it’s about re-interpreting adversity and seeing it as an opportunity. In almost every case, success lies on the other side.

As an example, let’s say you cannot attract enough good team members. If you accept that as a given, then your business can’t possibly grow. However, if you persevere and try until you find a way through, you will have learned how to attract good team members: when the challenge arises again, you’ll know how to deal with it.

3. You balance risk carefully

Jim Rohn (one of the fathers of modern day business development) said: “If you’re not willing to risk the unusual, you will have to settle for the ordinary.”

Setting up a business has risks attached, including money, reputation and time. In the early days you may have less disposable cash and you’ll likely be fairly busy, meaning relationships – with friends and/or family – could suffer.

Weighing up risk is important. You may want to engage some professional assistance to help you through the start-up phase. You may also want to join a business networking group, to help you establish new relationships with others in a similar situation.

4. You are prepared to work on yourself

Jim Rohn also said: “Work harder on yourself than you do on your job”.

What he means is that the biggest obstacle to success in business is you – you staying the same and not growing.

Establishing a business for the first time is likely to be harder than you thought when you first set out. You may discover things about yourself that you don’t like. For example, maybe you act irrationally under pressure, or you don’t like taking responsibility for mistakes!

Working on yourself means acknowledging that the key to your business success is you, and that your personal development comes first. Work on building yourself up, so that a successful you can build a successful business. 

Graeme Owen, based in Auckland, is a builders’ business coach. Since 2006, he has helped builders throughout New Zealand get off the tools, make decent money, and free up time for family, fishing, and enjoying sports. www.thesuccessfulbuilder.com