- January 15, 2024
- By: Tway
- in: Blog
How to start a heavy equipment business in the Philippines? First, examine yourself if your heart is really into this business.
Because if you think that it’s a fad like a bandwagon you just want to dip your toes into, think again.
It’s not going to be easy. But if you carefully plan your way – add persistence and hard work, it will pay off in the long run.
Here are some of the things you must consider when you want to embark on the heavy equipment business here in the Philippines.
Consider your goals.
Devise a 3-year, 5-year or maybe 10-year plan for your company. Include what kind of future you are looking into for your heavy equipment business. In the Philippines, there’s a continuous demand of construction work on both the private and public sectors.
You must set what are your short-term and long-term goals. For some contractors, they outline a 3-5-year plan to set the mood based on their preparedness and resources at hand.
When the time comes that they see the business is leading them to profitable measures, that’s when they plan something for the long haul.
It really depends on you on how far and how long you want your business to go. More importantly, always make smart goals.
Check it once in while if you’re getting closer to what you want to achieve and re-strategize if there’s a need for it.
Prepare your capital fund.
Even if you’re a small-time or big-time player, you need to pool in funds for your construction business. Sub-contractors are not an exception.
There is no such thing as “Laway lang ang puhunan” (All talk with no money investment) that exists in such a kind of business.
The capital you would need may range from half a million to 5 or so millions of pesos depending on the project your team is going to pursue.
Well, some contractors start as a “manning agency” who provide the workers needed in the construction. Until eventually, they morph their way in becoming contractors themselves.
While some immediately dive in as a one-stop-shop construction company who provides all the necessaries like designs/blueprints, manpower, equipment, etc. etc.
And still (and the most popular I think), some bid for the project and disperse it to third-party companies called sub-cons (short term for sub-contractors) so that if the company can’t provide one aspect or two of the project to be done, they hire a different company to fill in for their shoes.
Whichever way you want it, secure a fund that could last you in your project. Make sure that your fund will be at least 80% of the total costs that may incur in the whole duration of it.
Prepare your team and your equipment.
The construction business is a team effort. You will need skilled workers and degree holders to work with you in fulfilling the project.
(Read our article How to Set Up a Construction Site From Vision to Reality to know who are the important team members you’ll need.)
As a contractor, it’s also important to have your equipment to be readily available. It doesn’t matter if you purchased used equipment or if you’re still renting them.
It’s good to start small and scale after. The important thing is how you deliver and how you’re going to earn the trust of your clients.
It’s always about building relationships internally and externally in order to gain success in business.
Make your business legit.
Of course, you need to be compliant with government rules and guidelines. You must know which certifications to accomplish and rules to obey.
Secure your permits – barangay, DTI and Business Permit from the office of the Mayor where your office sits. You need to process your BIR certificate and SEC papers, too. You would also need DOLE certificate for your workers welfare.
It’s also a must that you’re accredited by PCAB or the Philippine Contractor Accreditation Board.
Create your personal branding.
We’re almost done. It’s also important that you create your own voice out in the wilderness. You need to have a “niche market” so you can call out the right customer to service.
That way it will be easier to get customers who may want to get your services. Tap into your KKK – “kakilala, kaibigan, kamag-anak” and all the K’s you can think of.
You can become a contractor specializing on government projects like taking part in BBB (Build, Build, Build project of the current administration) or a contractor for high-rise buildings like condo units or maybe you’ll work for subdivisions only.
For starters, you can try as a general contractor for all industries. What’s important is you start with something. Until you find where you’re most comfortable to work with, then make that your niche.
Let’s get ready to roll!
When all systems are in check, it’s time to do the hard work. Like in any business, it’s very important to always have the end in mind. There will be a lot of situations you will encounter.
However big or small, you must be ready at all costs. Listen to what your heart says and always have a discerning mind. Always have an open communication with your team. After all, it’s the synergy that goes between all the team players that make the situation a win-win.
Always remember, when you carefully plan everything, you’re making calculated risks more doable and efficient.
JAGAN Enterprises is your partner.
When you finally decided to have your very own heavy equipment business in the Philippines, JAGAN Enterprises is always here to support you.
We make sure that all the spare parts you would need in maintaining your equipment are all available for purchase.
Call us today and we’ll assist you with your needs. You can also message us in our Facebook Page.
Related articles you can check as well: 5 Reasons To Buy Used Heavy Equipment For Your Construction Project, Things To Know In Buying Or Selling Used Heavy Equipment, Tips In Finding The Best Heavy Equipment