Many are looking for the best business to start during the pandemic. Some are thinking of starting their ghost kitchen, while others are exploring opportunities in tech. However, only a few are thinking of starting a business in the construction industry. Many think it’s too much work and that it’s a dying industry, but that’s nowhere near the truth.
The construction industry is worth more than one trillion dollars. It’s rising with a decent compound annual interest rate of 5%. If you’re a businessman, you know that’s a decent CAGR, which indicates that you have enough room to grow despite the competition. However, only a few selected markets are known to succeed. The first market is the residential contractor market.
Residential contractors, also known as general contractors, are some of the most prevalent small businesses in the construction industry.
It’s hard work, but it doesn’t require a lot to start. Even those who haven’t finished high school can create a general contractor. All you need is some knowledge of construction work and a license to start.
Various sub-markets exist in this market. A good sub-market to start is roofing services.
Roofing services are a great specialization to start in because even with meager capital, you can start your roofing service. Moreover, it’s a business you can start yourself and with a handful of freelancers.
The roofing market is estimated to be around $156 billion in the U.S. It has a CAGR of 4%, which means that there’s enough room for you to grow once you’ve started your business. Moreover, the need for the replacement and repair of roofs in both residential and commercial areas will always be there, so you’ll never run out of jobs to do.
Many homes require electricity, making electrical services a fundamental role in the industry. Much like roofing services, there will always be a job for you, regardless of the season, making this one of the best general contractor specializations out there. You can also choose to be an inspector if you want to take a more hands-off approach to this business.
However, unlike roofing services, you need some education to become part of this market. It’s vital that you’ve finished high school and have gotten some training. If you want to succeed in this business, make sure to get a degree in electrical engineering that way, people will be seeking your services.
Hydraulics is an essential part of construction, and there are many construction firms out there looking for this material. It’s one of the best businesses to start in the construction industry and one that can succeed quite easily.
The hydraulics market is worth $37 billion with a CAGR of around 3%. It’s lower than the businesses we’ve stated above, but it has decent potential for growth. Additionally, much like the businesses we’ve indicated above, this is an essential market.
If you don’t want to take a big risk starting a hydraulics business, you should consider joining a franchise instead. A hydraulic hose franchise is simple enough for someone like you. Plus, you don’t need to worry about the supplier once you’ve signed up for a franchise. They’ll handle all the work for you. All you have to do is sell your stocks.
Road construction is a market that’ll give you access to both private and public works. Moreover, it is a market that’ll get you contracts from all around the world. However, it’s an expensive market to start in, but if you have the funds for it, it’s worth the risk.
The road and highway construction market is worth around $113 billion and has a CAGR of 4%. It has one of the biggest market sizes on this list and has good potential for growth. If you want to get started on this market, you’ll have to invest some of your budget into road construction equipment, which isn’t cheap. So make sure you have an investor to back you.
Lastly, we have a more hands-off business and one that doesn’t deal with construction work: construction broker. If you’re good at sales talk and have good connections, this is the best business for you to start.
Essentially, you’ll be the person who can make construction projects happen. You link clients to construction firms you know and get a commission for every deal you make. Just make sure that the deals are successful.
This might not net you as much income as the businesses indicated above, but if you’re talented and determined enough, you can make your first million as a construction broker.
Starting a business during a pandemic can be challenging for everyone. However, with these recommendations, you can start a business that won’t fail.