The cinder block production business attracts with ease of implementation and relatively low investment in production deployment. In addition, cinder block is a popular material in construction , and it is used both in private and industrial construction.
However, the ease of organizing this business also generates high competition, which is why quite a few entrepreneurs have failed. Therefore, it is possible to make the production of cinder blocks profitable only if you act competently, in accordance with the business plan.
To determine the feasibility of organizing the production of cinder blocks, it is necessary to conduct a marketing study. It is necessary to reliably determine the level of competition in the nearest region, so as not to work at a loss later.
And the most important thing is to determine the level of demand for finished products and outline distribution channels.
For a small production, it is very profitable to find a regular customer for certain volumes of cinder blocks. It can be a large construction company, or maybe a small construction company.building cottages and dachas for individuals. A building materials store can also become an option for a distribution channel, but they will certainly require a substantial discount on the delivery price, or they will set their own margin, which will reduce the competitiveness of products. Selling cinder blocks directly to private customers will increase the time required and reduce the overall profitability of production. That is why it is so important to identify and outline distribution channels in advance, even at the first stage of planning.
In addition, you need to choose the best location for production — close to potential customers and sources of raw materials.
The raw materials for the production of cinder blocks are cement, sand, water and various fillers, from slag to granite chips. The ability to obtain one or more components at the lowest price will significantly reduce the cost of production and increase profitability.
Sales opportunities will also determine the required production volumes. And this, in turn, will allow you to select the necessary equipment and calculate the investment. It doesn’t make sense to invest in high-performance equipment if you can’t sell the produced cinder blocks in such volumes later.
The initial investment will consist of the costs of preparing the production base, purchasing equipment, and primary stocks of raw materials. For the production of cinder blocks in the minimum summer version, a smooth concreted area of 100-200 square meters is sufficient, equipped with sheds for drying products and the presence of water. However, for year-round production, at least a heated hangar will be required, otherwise it will be impossible to dry the finished cinder blocks during the cold period.
The cost of equipment, depending on performance, ranges from several hundred thousand to several thousand dollars. The total investment in the cinder block business can be estimated at between $2,000 and $6,000.
We will leave the stories of how the profitable production of cinder blocks was organized in a garage or on the basis of a concrete mixer with a volume of 0.5 cubic meters on the conscience of the authors.
Operating costs will consist mainly of the cost of purchasing raw materials, utilities and rent, wages, transportation costs.
If there is a constant demand, investments in the production of cinder blocks pay off within one year. Such production can actually become a profitable business, but only if it is taken seriously and every ruble of costs is considered.
On our website you can order a serious and high-quality business plan for the production of cinder blocks, with all the necessary calculations and recommendations.