Making it as a business owner in any industry is a tough gamble. But the payoff is worth the initial effort, especially in the construction business.
Contract work is an essential skill, and if you’re one of the “Jack of all trades” types, you can make a comfortable living off of your unique set of skills. Let’s face it, today the need for home and office spaces are always on the rise as more people are buying homes and opening businesses.
But starting out in the construction trade as a business owner requires a bit of startup capital. Basically, you’ll need to buy tools and equipment in order to meet your job requirements, and this can be costly.
Fortunately, there are a few alternatives that you can explore in order to save money as you establish yourself and grow your business.
Perhaps you’d love to go out and buy a couple of brand new company work trucks to use while you and your crew are out on the jobsite. Well, this is a great idea. But you also need to keep in mind that purchasing a couple of trucks is going to be quite costly.
For example, even if you secure a loan for just two company trucks, you’ll have to come up with a down payment and pay insurance and a monthly note for each.
A great alternative to spending a large amount of capital on vehicles is to rent work trucks. With this option, you’ll spend far less money up front, and you’ll only have to worry about renting the trucks for when you need them.
In addition, you can also advertise using a magnetic logo on your truck rental while driving to and from the job site looking like the professional that you are.
If you’ve been in the construction business for a while, then you probably know just how costly heavy equipment and machinery are.
For example, maybe you just landed a job to build a 50-story building and you’re looking for a brand new excavator. Chances are you’ll be spending over $100,000 dollars on this type of machinery. And unless you have this saved up for a rainy day, you’ll probably want to keep your savings intact while you establish your business.
Equipment auctions can be a great strategy when it comes to obtaining essential equipment at an affordable price. In fact, some items at auctions are priced less than half of the cost of a brand new piece of equipment.
It’s also good to note that items at auctions are often sold “as-is,” so some might require a little work.
Buying Used Tools
In the construction business, you use a variety of tools. And if you’ve always got work lined up, you’re probably using your tools quite often.
Tools do need to be replaced at times, and certain jobs may require you to buy specific tools that you’ll need to complete the job. If this is the case and you want to save a little money, buying used tools could save you hundreds, if not thousands, of dollars per year.
Used tools can be found in a variety of ways. You just need to know where to look. And believe it or not, you probably know a few people that might sell their old tools just for a little extra cash.
You can also try personal sales ads on community websites, sites like Craigslist. Typically, most pawn shops have a wide assortment of tools available as well.
Opening and running any business requires spending a little money at first. But the less you spend, the better positioned you’ll be when it comes time to expand and grow your business.
As a business owner, you have to always be conscious of where and how you can save money. And cutting corners wherever you can without sacrificing quality or functionality is the best way forward.