If you are thinking of running a builders business you might want to consider some of the costs that you will face. There are more costs other than the materials that you will need or the vehicles that you use. There are some costs that you might not have considered, but will affect your ability to do business.
Permits, Licenses And Dues
Before you can start working in Wrexham you need to have all the right paperwork. This will include permits and licenses given by the council which permits you to legally work in the area. These are generally not one-time fees and you need to be aware of this. Most licenses and permits will last for a set amount of time then need to be renewed.
You also need to be aware of dues you might have to pay to your local builder’s association. While these associations are not something you have to belong to, it will give your business better credibility. You may also be able to take advantage of discounts to members and other networking benefits.
Office Space And Utilities
Many people make the mistake of thinking that they will not need office space for their builders Wrexham business. However, having a business address will help you get clients and increase the professional appearance of your business. Of course, when you have office space you also need to think about the utilities that you will need to pay.
One way that you could get around this is to run your business from home. The business address will be the same as your personal address which is generally in the area that you work. Of course, you will still need to consider the increased utility costs for running the business from home.
Equipment Maintenance And Upgrades
It is likely that you have already considered the costs of your equipment such as tools and vehicles. However, you also need to take into account the costs of maintaining the equipment and eventual upgrades. You also need to think about the smaller equipment that you need such as office equipment and dedicated business phones.
Employees And Benefits
If you are going to hire staff from Wrexham then you have to consider the cost of this in terms of their salary and any benefits you provide. If you fail to properly invest in your employees you could find yourself with a high employee turnover which brings its own costs such as increased training costs. Research has shown that it costs approximately a fifth of an employee’s salary to replace them.
Before you start your business you have to consider the cost of insurance. As a building company, you will need to have liability insurance and workers compensation insurance. Without this insurance, your customers will be liable for damages and compensation claims which could limit the amount of work that you get.
There are many costs to running a builders business in Wrexham that you might not have considered. These costs will affect your ability to do business as they impact on your licensing, insurance and staff turnover.