The construction industry relies heavily on suppliers for all types of building materials. Also, its potential for interested entrepreneurs is huge.
As an aspiring entrepreneur seeking to tow this line of business, one of the first things to be concerned about is how to structure or plan your business.
You’ll need to put together a sound construction business plan for your startup idea to help make it a reality. This is where we step in to provide you with important points or tips to consider.
For persons with existing building material supply businesses, this still helps their business to grow.
To start a successful building materials supply business, you should focus on several factors.
These include choosing your product manufacturers, having the needed funds, and the location of your business. You also need to have an understanding of the construction industry.
You’ll need to also obtain applicable business licenses and permits. Not every state requires these. However, you’ll need to check with your state’s licensing department if your building materials supply business is eligible.
Tax registrations are also an important part of doing business. Without this, you’ll be running afoul of the law. The legal structure of your business is also vital.
As a supplier seeking to build a brand known for quality, you’ll need to be careful with choosing your building product manufacturers. Certain brands are more preferred and respected by others.
Common factors used in rating manufacturers include design flexibility and ease of product installation.
Additional factors include the manufacturer’s warranty, sustainability benefits, and several other key areas.
In summary, you’re seeking to partner with a building materials manufacturer that gives you the best incentives while also producing high-quality products that are reliable and durable.
There are top brands for construction materials such as concrete, ceiling systems, carpets, glazed curtain walls, and paints/finishes. Other construction materials include faucets, HVAC systems, digital design tools, and windows among others.
Popular building materials brands include Carrier, Mitsubishi Electric, Trane, Rinnai, and Lennox. Others are Kohler, American Standard, Dornbracht, Pella Corp., Marvin Windows & Doors, and PPG Architectural Coatings.
Other building product companies include ABC Supply, Armstrong World Industries, American Standard Brands, American Woodmark, Andersen Corporation, and Armstrong Flooring.
It will be necessary to find ways to sift through these companies to find the best company to partner with.
To become a building materials supplier, you’ll need to have the needed capital to register and get your first consignment of building supplies. Now, building product companies will have their minimum financial requirements for partnership.
Getting a handle on the exact amount of distributorship fees will require some investigations.
You’ll need to contact product manufacturers to find out their guidelines and registration process. You can either proceed to register as a supplier if you have the required amount or hold on until you’re able to raise the needed amount.
When choosing a location for your building materials supply business, you’ll need to consider certain factors. These include demographics and competition. Your demographics will be looking at who your customers are.
Being able to identify your customers or clients enables you to structure your operations to accommodate their needs and demands. In most cases, you’ll be working with contractors and architects among other construction experts.
Having a cordial working relationship with them enhances your standing as they’ll easily do business with you or recommend your building materials supply business to other professionals.
The proximity of your business to a locality or city having a booming construction industry will also impact on sales.
Therefore, you’ll need to make your findings by carefully analyzing the opportunities available to you within a certain location before making a decision.
Having considerable industry experience within the construction sector will be a plus for your business. This is due to the professional relationships you’ve built over the years with contractors and other construction professionals.
As such, it’s easier to encourage them to patronize your business by informing them about it. This gives you a huge advantage over your competitors who may not have such an edge.
Keeping up with changing trends within the construction industry helps in no small way to impact on overall sales.
By following emerging trends, you’re able to serve your market without having to play catch-up. This keeps you a step ahead.
We earlier mentioned that not all states require building or construction material supply businesses to register their business.
For states that do demand for such, you’ll need to contact your city’s licensing department for directions and clarifications.
Permits may also apply if your building material business will be selling any flammable materials. This permit is also necessary for businesses that will be open to the public. Your building materials supply business qualifies for such a permit.
For states with no fire department permit requirements, scheduled periodic inspections may be carried out. Hence the need to ensure your business meets fire safety regulations or guidelines.
Sign permits may apply to your business. While certain states have such permit requirements, others don’t.
Such ordinances require that signs be restricted to specific locations, sizes, and even the type of sign. You may want to check regulations and obtain the written approval of the authorities before having a business sign built for you.
Are you going to be needing employees? If yes, you’ll be eligible for an Employer Identification Number (EIN) issued by the Federal Internal Revenue Service (IRS). This registration is quite easy and is mainly for taxation purposes.
One of the key things to sort out during business registration has to do with your preferred legal structure.
Different legal structures fit specific business needs. They include Doing Business As (DBA), Sole Proprietorships, Partnerships, Limited Liability Company (LLC), and Corporations.
Seeking legal advice will enable you to choose one that fits your building materials supply business.
There you go! This plan includes the basics for successfully operating a building materials supply business. You’ll need to have everything properly worked out in your plan before moving forward with implementations.