Construction company as a business

Business ideas by directions

The construction business has been and remains one of the most profitable options for generating high incomes. Moreover, this area of ​​activity is less prone to crises than others, since the demand for construction services is always present on the market.

The creation of a construction company often becomes the start of a big business that flourishes for many years.

Forms of the construction business can be very different — from a large construction company that performs all cycles of construction and maintenance of large facilities, to private entrepreneurship engaged in minor repairs of apartments. However, if we are talking about an enterprise that is being created from scratch, then it is better to consider options for a small construction company specializing in a limited list of services.

The construction business requires large investments in equipment, tools, transport, building materials.

The more universal services a construction company provides, the more complex the production processes, the more investments are required to create a company. True, the cost of orders increases proportionally. But it is almost impossible for a new company to break into the market of large orders. Therefore, the best option is to create a small construction company that works on orders from the population, or acts as a subcontractor of large construction companies.

The easiest way to organize a company for the production of finishing and repair work.

Such a firm, firstly, does not require large investments in construction equipment, and, secondly, can flexibly change its composition and structure depending on the availability of orders.

For example, you can limit yourself to a small staff of permanent employees, attracting specialists under one-time contracts to perform certain work. This allows you to save very well on wages, although it increases the risks of fulfilling orders just in time.

Nevertheless, it is possible to bring such a construction company to profitability, and, moreover, give it the opportunity for further development only if there is a high-quality business plan . Otherwise, the company will quickly turn into an anarchic «sabbat» that lives on odd jobs and has no chance of getting profitable orders.

The need for a business plan is also due to the fact that, in order to legally perform construction work, a construction company needs to join an SRO (self-regulatory organization) in order to be able to obtain building permits. Joining the SRO will require certain resources, amounting to hundreds of thousands of dollars, and a package of documents confirming the qualifications of the manager and specialists. These costs must be planned in the initial calculations and taken into account in planning.
The total initial costs for creating a small construction company can be estimated at 1500-2500 thousand dollars.
But, as a rule, this amount in reality grows very quickly if you act without a plan. The income of a construction company, in the presence of orders, often allows you to recoup the initial investment within one year.