Construction company business plan

Business plan

Construction has always been a hot topic for business.

The popularity of construction is explained by the fact that a small number of people can independently change the pipe, build a house from scratch, make cosmetic or complete repairs in the room.

The main advantages of the construction business
  • The construction industry is a fairly profitable business, which can be considered a rather big advantage. Of course, usually a good income from the construction business does not appear immediately. But if you wait a short amount of time, then soon your business will bear fruit.
  • There is an opportunity to expand your business. You can also do something related, also related to construction. For example, you can start selling building materials.
  • Starting your construction business is easy enough. We need to attract a small team for the first stages of the construction business. It is not only difficult, but almost impossible, to cope with such matters alone.
How much does it cost to open your own construction company?

The cost of organizing such a business is low. After all, construction is a service. They can be provided without having a lot of capital. The main thing is skill and experience.

1. The very first costs when opening a construction company are the registration of a legal entity.

Here it is better to contact law firms. Their registration services are relatively inexpensive. Usually the amount of such costs is no more than three thousand dollars. You can pay for registration and state duty yourself. However, some types of work require a special permit. For this, too, you will need to spend a little.

2. Also, when drawing up a business plan, you will need to decide on the services that you will provide.

It is necessary to purchase all the necessary construction tools. At the initial stage of opening a construction company, one hundred thousand dollars will be enough for these purposes.

Construction Firm Business Plan: Construction Project Risks

A construction company, like any other project, has risks:

  1. Firstly, breaking into the construction market is not easy enough. However, this problem becomes completely solvable if you hire high-quality professional staff. People with good experience in the construction industry will help raise the reputation of your company.
  2. Young construction firms may face such a problem as attracting funding. Not all banks are ready to approve a loan for a start-up business. Some banks question the viability of such construction companies.
  3. The construction business is highly competitive. In order to reach a good level in construction, you must present to your customers the advantages of your company over competitors.
Construction company business plan: step by step instructions

The business plan must contain two categories: one of them is called the production plan, and the second is called the financial one.

1. The production plan should describe what is needed first of all to open a construction company — renting a room, purchasing tools, an advertising campaign.

2. The financial plan is future income, expenses, investments, financing. Plus, all amounts must be compared with each other. This will show the estimated profit of the project. Also here you need to indicate the payback of the construction company.

Costs of setting up a construction company

As a result of the business plan, you can sum up the financial costs of organizing a construction company.

We get:

— 3,000 for registration of a legal entity,

— 30,000 for renting a room,

— 300,000 for the purchase of a tool,

— 100,000 for workers’ wages.

These are the most minimal expenses that will be required when starting your construction business.