Building a startup from the ground up can be difficult in any industry. New startups face multiple hurdles before their product hits the market, from securing the right funding partners to finding the right audience for their product. To ensure that your startup will make it past the one year mark, it can help to look at other startups and find out what made them successful.
Recent construction startups provide a valuable example of new businesses that quickly adapted to change to achieve success. As businesses transitioned to digital platforms during the pandemic, construction startups had to get creative with their products and business models to stay afloat.
Read on to discover how recent construction startups achieved success or skip to the infographic below for key lessons startups in any industry can learn from.
1. Keep Up With Industry Trends
If the COVID-19 pandemic has taught businesses anything, it’s that flexibility is key when it comes to preparing for unexpected change. For new startups, this means keeping an eye on industry trends and looking for ways to adapt to sudden changes when they happen.
WorkerSense, a construction startup that entered the market in 2017 with a line of wearable safety sensors, quickly adapted to changes during the COVID-19 pandemic by adding contact tracing to their products. This move boosted sales and put WorkerSense ahead of the competition during an incredibly unstable period for construction companies.
2. Research New Technologies
The construction industry is one of the least digitized sectors in the world, but that’s starting to change. Construction startups are taking advantage of the industry’s lack of digitization by introducing new products—like project management software, artificial intelligence, building information modeling (BIM)—that can make building processes cheaper and more efficient.
Mighty Buildings responded to the need for more sustainable construction models by using 3D printing and automation to create sustainable modular homes. Their technology drew the interest of multiple investors as they were starting out, and the company secured $26 million in funding in 2019 alone.
3. Know Your Customers’ Pain Points
During the product development stage, it’s important to focus on your customers’ pain points and learn how you can address them. You can achieve this in multiple ways, including conducting market research, sending out surveys and creating customer personas.
The founders of Eave identified a need in the construction industry for better ear protection for construction workers exposed to dangerous levels of noise pollution on the job site. After conducting their research, the team created a virtual noise visualization platform and a line of smart ear defenders to improve worker safety.
4. Take Advantage of Accelerators and Incubators
New startups in any industry can take advantage of accelerators or incubators to get their business off the ground. These types of programs offer resources, funding opportunities and mentors to help startups grow and tackle roadblocks early on.
Terane, a construction software startup, gained support and initial funding from the Velocity Accelerator program. TechStars, Y Combinator and 500 Startups are some of the most popular accelerators and incubators around the globe, and there are many more to choose from. If you aren’t sure where to start, consider looking for programs in your area that specialize in your industry.
If you are looking to take your new business to the next level, check out the infographic below for more advice from the construction industry’s most successful startups.
Graphics from bigrentz.com