With more and more people looking for affordable and quick-to-build homes, the modular home or prefabricated business has become a fast growing industry. Modular homes look like any other homes; however, they are constructed in a different approach. Unlike regular homes which are built directly on the home site, modular homes are constructed in a factory-like setting, then relocated at the desired location. If you’re looking for a cool and unique business that has a potential to provide you good income, then this business can be an attractive option. Here are the steps to help you get started:
Step 1: Create a business plan. Whatever kind of business you would want to build, it’s very important that you start with a business plan. This will give you a general idea of what your business truly is and prepare you on how you’re going to achieve its goals. Well, there’s no need for you to write a hundred-page document to have a high-quality business plan. According to Entrepreneur Magazine, a typical business plan runs 15-20 pages. But it can be any length; the most important thing is that your business plan includes every detail that is necessary to make your business work, such as the description of your business, your plans and goals, your marketing strategies, sources of raw materials, and financial information.
Step 2: Study your market and assess your competitors. Before you start gathering any raw materials, it’s crucial that you first study the market that you’re planning to pursue. Determine if there’s a sufficient demand for prefab homes in your area. If not, identify how you’re going to entice homeowners to get this type of house. It’s also an excellent idea to determine the competition in the market that you’re considering. If it’s too tough, you may want to try building your business in other area, where there is less competition, or start a completely different business instead.
Step 3: Find different sources for getting the materials you need. If you think that there’s a chance for you to succeed in the market, then start finding sources to get the materials and machines you need for your business. Talk to somebody who is already in the industry and ask for recommendations. You can also do online research to get more options. Before you make any commitment, though, research first about the reputation of the supplier you’re considering. It’s also great to check on different suppliers, so you can compare prices and quality of their products.
Step 4: Register you business. Just like in any other business, you can’t start your operation without proper license and permits. So gather all the necessary documents you need, such as clearance from port authorities, tax documents, and business permits.
Step 5: Hire your staff. Of course, for you to be able to construct a modular home, you need contractors, subcontractors and other staff. Hire the sufficient number of contractors you need. Since you’re just starting out, it’s fine to get a few contractors at first. But once your business thrives, you should consider hiring more staff to complete your projects easier and faster. You should also hire other workers, such as HR managers, billing staff, and customer service staff to help you run your business more efficiently. If you don’t have enough funds yet or you think it’s too much for you to handle everything, you can consider outsourcing some of the areas of your business, such as billing and payroll. But if you consider this, make sure that you hire the service of a trusted and qualified payroll outsourcing company.