The construction business in Ghana is one of the most profitable ventures to invest in. Do you want to know how to start a construction business in Ghana?
Then you find yourself reading the right article. In today’s guide, we are going to elaborate on how to establish a successful construction business in Ghana.
Things To Consider Before Starting A Construction Business In Ghana
There are many things to consider before you think of establishing your construction business.
These are factors that are going to help you meet the right customers who are in need of your product and services.
Some of the things to consider in setting up a construction business in Ghana include;
⦁ Choose the right location for the establishment of your business – it will be better if you target new sites where new buildings are being built.
This is because it will ease the stress of transporting building materials and equipment from a long-distance onto sites.
Therefore people are going to patronize you since you are near to the construction site.
⦁ Build a network with building contractors and hiring workforce – building a network with these people will help your business to be linked to many customers who need materials and equipment for the building.
⦁ Register your business – Visit the Registrar General’s Department nearest office or apply online through this link https://egovonline.gegov.gov.gh
⦁ Advertisement is a key factor – to start a construction business, you’ll have to consider the medium of advertisement that you can afford to promote your business.
You can choose to make a lot of fliers and share them among construction workers and engineers.
Place those fliers on advertisement boards at vantage points to help attract customers.
⦁ Contracting a fleet of vehicles – this is done when an investor doesn’t own a vehicle to deliver materials and equipment to customers.
Therefore, it is better to get help from companies that offer such services.
How Much Does One Need To Establish A Construction Business In Ghana
The construction business is quite costly to establish due to the materials involved to make products available for the market.
There are two forms of construction business that can be established in Ghana, and both differ in terms of the capital needed to start.
These two types of construction business practiced in Ghana are;
1. Medium Scale Construction Business – this type of business is set up to only produce construction bricks and pillars and sell them to contractors and engineers who need already made bricks for their construction work.
Here, the business firm buys the materials and equipment from other shops to make their products. Establishing this type of construction business will cost around (4,000 – 5,000) Ghana cedis.
2. Large Scale Construction Business – this is the type of construction business where the investor has a shop stocked with building materials and equipment.
Also, the large-scale construction business firm produces construction bricks and pillars that are made available to engineers for their projects.
Establishing a large-scale construction business is very costly, and an estimate of the cost ranges from 20,000+ Ghana cedis.
How Profitable Is The Construction Business In Ghana
The construction business in Ghana is on the rise because people are building new houses, and many are renovating their existing ones to give them a new look.
The rate at which people are consuming new lands with the purpose of the building is making the construction business in Ghana more profitable.
Investors are making over 40% in the construction business in Ghana, and that looks so good to invest your time and money in.
Best Areas To Start Your Construction Business In Ghana
A construction business can be started at any location of your choice, but remember, we all invest in making a profit.
Therefore, there are the best places where one can establish a construction business and gain more than expected.
Such areas to consider include;
1. New Construction Sites (with enough space to display products)
2. Along busy roads (visible and easy to locate)
How To Be Successful In The Construction Business In Ghana
To be successful in the construction business in Ghana, all that requires of you is to be determined and hardworking.
Challenges In Running A Construction Enterprise
The common challenge faced by construction investors is that the cost involved in establishing the business is quite high.
Also, sometimes if your business is not the small scale type, your sales will drastically drop at some point since demand will be moved from your area.
That is because usually, it’s good to set up at new sites where people are building regularly.
Benefit Of Setting Up The Business
The financial benefit that comes with a successful construction business in Ghana is impressive and convincing, as least if you have regular sales, you can male not less than 20% each month.
This is the necessary information we can feed you on how to start a construction business in Ghana.