Building for Success

Starting a new business can be a rewarding endeavor, but one that comes with a unique set of challenges. Well before your grand opening or new product launch, you will need to make many decisions and address several challenges.

One of those challenges is securing an appropriate facility from which to base your new operation. The available locations may not suit the specific needs of your business, and a custom retrofit may be necessary. For many new business owners, this initial construction process can be one of the most difficult hurdles in building momentum for a new company. A successful build-out has the potential to either propel your new venture to success, or to mire your development in delays, cost overruns, and frustration.

The initial planning and budgeting phase is the most critical time to avoid these headaches and to set your project up for success. A new business owner must be acutely aware of budget constraints, access to capital, and knowledge of the building process. They must also be able to effectively select a design-and-build team to implement a successful plan. Whether you are renovating an existing structure or building an entirely new facility, developing a thorough plan and keeping these items in mind will help set you up for success.

Precise Budgeting and Capital Management

As anyone who starts a new business knows, access to capital is an essential first step. It will dictate the parameters of your business’s potential growth. And, an initial construction project may require a significant portion of the capital you have available.

Whether your funding is from personal savings, private investment, or a lending institution, it is critical to decide what portion of those funds will be available to build your facility. Once you determine how much you can afford to invest in the construction phase, you can then design within those cost parameters. Depending on the business you are starting, it may make sense to limit your construction expenditures, even if it means foregoing a top-of-the-line facility to operate from.

Developing a realistic budget and staying within it will ensure you have enough remaining capital for other costs associated with developing your growing company. Knowing your budget constraints will allow you and your design team to build an appropriate facility without leveraging too much of your available startup funds.

Selecting Your Design-and-Build Team

Once you determine the basic scope of your project and the total amount you can safely invest, you will need to select your professional design-and-build teams. Doing so typically involves contracting with an architect, engineers, a general contractor, and possibly an interior designer. You may be able to find a suitable design-build firm that includes the full range of these services from one vendor; if not, you will need to engage them separately.

When choosing the members of this team, ensure they have relevant experience and can perform their work within the limits of your budget. Design professionals and general contractors often specialize in a certain type of construction. Be sure the team you hire has the necessary experience to complete your project correctly. The contractor that renovated your kitchen might have excellent quality in workmanship but likely would not be a suitable choice for tenant improvements on a movie theater.

Reputable designers and builders will have a portfolio of past work for you to review, so you can determine whether they are a good match for your project. If your business has a special design need, your architect and engineers will need to have experience in that specific area. They must be able to meet all necessary regulations and to design a functional facility for your operation. The general contractor will need to be equally experienced in order to build your project as drawn by the design team.

Take time to review the experience level of your potential contractors and reach out to any references they provide to get a sense of what it will be like to work with them.

Educating Yourself to Communicate Effectively

In addition to selecting the right team for the project, as an entrepreneur, you must familiarize yourself with the construction process. Without a basic knowledge of what will be constructed and how that is accomplished, you will be unable to effectively communicate with your build team, municipal authorities, and investors in your business. Basic knowledge of the construction process will allow you to accurately assess the work your team produces and ensures you can articulate your vision for the build‑out of your facility.

Many business owners are left to rely entirely on their build team and are unable to offer input that would more fully bring their dream to life. Even a basic review of online videos showing construction in progress will furnish you with the correct terminology to communicate the needs of your business to those that will design and construct your facility. This knowledge will also be useful in the future if you decide to make additional renovations or to expand to new locations requiring additional construction.

Thorough Planning Leads to Successful Projects

The obstacles posed by a construction project can be one of the most challenging aspects of starting a new business. Retrofitting or building the ideal facility is the first step toward success. Keeping your budget in line, engaging the appropriate team, and understanding basic construction procedures will help you move past the construction phase and focus on building your business.