A small construction company which consists of a team of decent and skilled workers, can offer construction services in small towns of South Africa like building private homes, garages, etc.
A real estate market in South Africa is booming like never before. A lot of big construction companies work primarily in big cities like Cape Town or Johannesburg. They’re building high-rises. On the other hand, there is a market for small construction companies building private homes in smaller towns.
While big construction companies rarely work in small towns because of low profits, for a small business it is big enough if you can capture the market.
Your target market is small town homeowners who prefer living a big house instead of huddling in a small apartment.
In most cases, your competitors will be building contractors who use various subcontractors. This is why you will have a huge advantage over them if you start a construction company that can have an integrated service (it will depend on the market, as you may be better off outsourcing some services).
Necessary funding can be divided into three parts:
- Registering a company and applying for Construction tenders and contracts. It’s also mandatory to fit other requirements like CIPC, SARS, CIDB and NHBRC’s certification.
- Purchase of construction tools
- Operating expenses: like the salary for your employees (this will be offset by the fact that you will take a deposit before commencing any work).
Sales Channels & Marketing Activities
Advertising in local classifieds and newspapers might be a solution for a small construction company.