Paved with money

There are two ways of tapping into the paving industry business. You can either start a full-scale paving business or become an independent paving consultant.

There are two ways of tapping into the paving industry business. You can either start a full-scale paving business or become an independent paving consultant.

Starting a full-scale paving business is more capital-intensive than starting an independent paving consultancy business.

Though an independent paving consultancy business is inexpensive to start, it can bring in a lot of money.

Estimates show that you can earn up to R600000 a year. It only needs good marketing and advertising to get off to a sound start.

If you start a paving consultancy, you won't need any equipment because you won't be doing the job yourself. Your job as a consultant is to market and sell paving services.

You then subcontract the actual paving to a qualified paving contractor.

Depending on the kind of deal you have with the paving contractor, you will earn a certain amount or percentage of the contract value.

Start-up costs for a paving construction business will vary from business to business. It depends on factors such as equipment, transport, licensing, working capital, initial marketing and advertising budgets.

Remember that the success of any business depends on proper planning and research.

You need to do thorough feasibility research first. Research should include checking things such as the competition and the demand for the service.

You must find out how many competitors operate in the area that you wish to operate your business.

One way of finding out how much competition you will face is to check business directories and to surf the Internet.

You must also research how existing successful businesses in your area have positioned themselves in the marketplace.

Design your business in a way that sets you apart from your competitors.

You must also seek advice from experienced entrepreneurs in the field. Don't approach businesses in your locality because you are unlikely to get any information from them.

It would be better to talk to people from another city or province. In general, most experienced entrepreneurs enjoy offering help to emerging entrepreneurs.

Once you have done your research and you are convinced that your business will be economically viable, decide on the location, how you are going to finance the venture and draft the business plan.

For your finance application to move fast, you need to have estimates of how much you will need for equipment, space, stock and working capital and salaries if you are going to employ people.

You must at least be able to come up with a three-year financial projection.

All these must be clearly stated in your business plan.

Most finance institutions want to see that you planned and did your homework before you went to them.

A well-prepared business plan shows financiers that they are dealing with a committed professional who knows what he or she is doing.

This will give them confidence to finance your business.

You also need to register your business because most institutions prefer working with legal entities. There is no hope for an unregistered business.

Alternatively, to increase your chances of business success, you may also consider buying a franchise. A franchise is much easier to run because by the time the originator decides to sell franchises, the business will already be settled. It would also have established customers.

Not all businesses can sell franchises and they are usually sold as a way of trying to meet product or service demand by the originators of the business.

So, it is safer to buy a franchise if you are not sure about your potential to start from scratch.