With a growing population and a rapidly developing economy, Pakistan’s infrastructure needs have skyrocketed over the past few years. To keep up with this demand, construction businesses have started cropping up all over the country, making it one of the most lucrative business opportunities out there.
The process of starting a new business can be quite tedious, with several intricacies and long-haul procedures that require to be taken care of. To ease this predicament, Graana.com, Pakistan’s smartest property portal, features an in-depth guide on how to start a construction business in Pakistan.
Boasting a population of more than 200 million, Pakistan has seen a growing demand for housing projects in the real estate industry. Moreover, foreign investment projects such as CPEC have boosted the country’s infrastructure growth and development. This has further ballooned the demand for competent construction businesses.
Currently, the country has a labour force of approximately 40 million skilled workers, many of which remain unemployed or underutilised. This is due to a lack of proper construction businesses in Pakistan.
Moreover, the government has introduced several initiatives for the construction industry, such as a fixed tax regime, exemption of capital gains tax, and credit increase from banks to finance construction projects. This has turned the construction industry into a lucrative and fruitful business opportunity, perfect for starting a construction business in Pakistan.
With a myriad of lucrative opportunities present within the construction industry, this would be the perfect opportunity to start your own construction company. However, with the country’s construction demands growing by the day, and new competitors constantly entering the market, opening a construction business may not be as simple as it seems.
With this guide on how to start a construction business in Pakistan, you can easily navigate through the pitfalls of this industry.
The key to starting any business is to have a detailed business plan and roadmap for your venture. Without a thorough and intricate plan, your start-up could potentially fall through. Moreover, if you plan on pitching your business idea in front of investors, having a detailed plan is pertinent.
If your business proposals are unable to satisfy investors, it’s a sure sign that your project will fail to garner significant investment from external sources.
No business venture can move forward without securing a sizable chunk of finances or resources. There are two ways to go about this; investing your own savings, or attracting investors in exchange for equity.
If you have enough capital saved up, financing your business won’t be an issue. However, if your plan consists of attracting investors and business moguls, having an intricate business plan is essential. If investors find your business proposal feasible, they will invest in your company in exchange for a percentage of your company’s equity.
Being in the age of digitisation, having a physical space for your business is not a necessity anymore. However, if you wish to legitimise your company, having a proper office space can surely be helpful. Having a physical space for work can help you set boundaries between work-life and home-life, and increase overall productivity.
Moreover, clients tend to trust businesses that have an established setup, as it indicates that the firm is committed to staying in the business.
A business cannot function without a team of talented and qualified individuals, and this is particularly true for the construction industry. Hiring dependable and qualified employees is essential for the success of your business. Moreover, being able to retain these employees is just as important.
The success of businesses is heavily determined by their PR. This makes networking an essential element for starting a construction business in Pakistan. Start off by developing contacts with suppliers, contractors, and government officials that oversee the infrastructure department.
Having a thorough network can allow you to grasp new opportunities, or maybe even help in getting a favour for the interests of your company.
Finding a specific field or niche for your company is essential, as specialising in one aspect can open up several windows of opportunities for relevant projects. It reassures clients that your firm will be able to take on a project that is focused on a specific area of expertise.
For a start-up, taking on a generalised approach can be detrimental, since many companies already dominate the market. However, finding a niche can be a good way to penetrate a specific market.
The key to growth for any business is continuous investment. Once your company is up and running, keep a small portion of the profits for yourself and reinvest the rest back into your business. The only way to maintain consistent growth is by pushing in resources to expand the business.
Customers are one of the most crucial stakeholders in any business, even more so in the construction industry. Catering to the needs of your customers and adopting a customer-centered policy is essential for developing a strong customer base.
Your market share depends on how many customers your company retains – a factor that is directly correlated to customer satisfaction.
With the current boom in the country’s infrastructure development, making way into the construction industry can be a highly lucrative business venture. However, navigating through the industry’s pitfalls can be quite risky. Follow this guide on how to start a construction company in Pakistan and ensure your venture becomes a success.
For more information, visit Graana blog
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