The construction business deals with building and making sewers, houses, roads, highways, and so many more projects. This article will show you how to start a small construction business in Uganda. In the construction business, there are three types of construction which include;
1. Prescriptive specifications
2. Performance specifications
3. Proprietary specifications
How much does it cost to start a small construction company?
Starting a small construction business will require a fair amount of cash to run. This is because there is a need to get a patent, insurance, lawyer fees, business permits, and licenses, and even an office space. This may cost around 21 million Uganda shillings. The startup cost may vary depending on the location and type of premises that one is renting.
Steps to start a small construction business in Uganda
To start a successful business in Uganda, one has to do things and the necessary permits one has to acquire. Some of the steps are as below;
- The first step is to know the type of business you want to start and acquire a unique business name.
- The next step is to register your company with the Register Company and later be issued with the certificate of registration. Register your small construction business with the local authorities in your area. This makes potential clients trust the business and also helps the business run smoothly. After registration, you will obtain a trading license from the URSB- Uganda Registration Services Burial. When registering your business, you will be required to;
a) Search for a unique name for your construction business
b) Register the business and get a certificate of incorporation
c) Getting a taxpayer identification number
d) Acquiring a trading license
- Acquire all the necessary licenses from the Ministry of Health and Fire Department. This ensures the safety of your employees as well as yours and also the consumer’s safety.
- Register with the local authorities to get a trading license or operating permits.
- For Tax, purposes register with the Uganda Revenue Authority. Once you register a small construction business in Uganda, you will be given a Tax Identification Number like your account number.
Tips to start a small construction business in Uganda
- Have a business plan that you will follow to the latter. It will help you manage your finances and not overspend.
- Advertise your business using posters and even on social media platforms. Tell your friends to tell other friends so that your business can grow.
- Study the strengths and weaknesses of other businesses in the same field as yours and get to know how they work with them.
- Look for a location with the target market. Urban places, near town centers, and shopping malls are some of the best places to start almost any business. The place should also be easily accessible.
How much does a small construction business owner make?
Although the small construction business is demanding and requires a fair amount of capital to start, the profits are likewise huge, thus paying off all the efforts. On average, a small construction business owner can make up to 17 million Uganda shillings a month, covering all expenses and remaining with profits.