Construction of low-rise houses for sale
The construction business is one of the most profitable, since the demand for building materials is always high and to a lesser extent depends on the economic situation in the country. The profitability even during the crisis is 70%. But in this area, it is more important than anywhere else to properly organize and process a business idea.
Algorithm for creating your own business
First of all, you need to draw up a business plan, which will include analytics and an estimated part of income / expenses. The approximate volume of a quality business plan is at least 40 pages. When organizing production, the following factors must be taken into account:
It is important that the production of many building materials requires high-tech equipment, and to it - specialists with appropriate wages. Therefore, it is necessary to correctly calculate the point in which the funds for salary to specialists are described.
Direct business creation algorithm:
- Market analysis to identify both direct and indirect competitors.
- Correct selection of premises where production will be located.
- Purchase of the necessary equipment.
- Purchase of raw materials for production.
- Hiring employees.
- Advertising and marketing promotion.
- Establishing distribution channels.
In addition to the above, additional items may be presented in the plan, depending on the specifics of production.
Which direction to choose
The choice of variations in this line of business is very rich. At the same time, new building materials are increasingly appearing, which means that the possibilities are expanding. For a business idea to become successful, it is important that the entrepreneur has at least initial, basic knowledge about the selected building material. Such knowledge increases the likelihood of future business success by 30-50%.
Plus, be sure to take into account the region of distribution and sale of products.
Here are some popular ideas for the construction industry:
- Artificial stone production. Organization costs - 150 thousand rubles. Consumption per month - 30,000, income per month - 50,000. Payback - 8 months.
- Making log cabins. Organization - 200 thousand. Income per month - 60 thousand. Consumption - 40 thousand. Payback - 10 months.
- Self-tapping screws production. Costs - 450 thousand. Income - 120 thousand, expense - 90 thousand. The payback period is 15 months.
- Paving slabs. Organization costs - 205 thousand. Expenses - 70 thousand, income - 100 thousand. Payback 7 months.
Construction of low-rise houses for sale a few years ago was a fairly profitable business with low risks and fairly good profitability. Cottage settlements around large cities and regional centers arose one after another. Small construction companies did not go to waste, because the difference between the price per 1 square meter of finished housing and what was invested in the construction of buildings (margin) was quite high, and the "entry" into the business did not require so many resources.
Now the situation has changed. It can be said with regret that the construction of low-rise houses for sale is not a very suitable line of work for entering commerce. Even if the entrepreneur has good start-up capital, it will be difficult to start building.
Big Commerce Auctions
Every house starts with the land on which it will be built. And it is at this stage that novice businessmen, who have already come up with plans in their minds about the cottage settlements they have built, will be first disappointed.
Vacant land for individual housing construction (individual housing construction) is almost always a municipal asset (owned by the mayor's office or the regional administration), which the authorities are trying to sell or lease on the most favorable terms for themselves. How it works:
- The urban planning plan, which is in every large settlement, reserves plots for such development in advance. As a rule, the document is updated once every five years.
- An auction or tender is announced for the right to develop the site. What might the authorities "want"? Always an impressive amount of money. Even in the provinces, this amount sometimes exceeds 100 million rubles for two to three dozen hectares. And the site in most cases will not be your property. Rent only.
Cash is not all that officials from the property administration of a city, territory or region may want. The practice of recent years shows that the contract stipulates the construction of “all the necessary infrastructure”. This is, attention: kindergartens for a certain number of places, a polyclinic or FAP, intra-quarter roads, utilities - electricity, water, sewage, gas, if provided for by the development plan. Even one project for the development of such a territory costs a lot of money.
The authorities' logic is clear. Providing infrastructure for new districts is the responsibility of municipalities, but the latter have no money. So they are looking for extra-budgetary funding sources. Failure to comply with these terms of the contract threatens with the loss of lease rights even if the plots already have houses in a high degree of readiness.
Another common condition in tenders for the development of new territories is the requirements for the developer itself. This can be a business reputation (already existing experience in the implementation of such projects), the amount of the authorized capital, the availability of certified specialists and a million more conditions. You can find the announcement of such an auction yourself on the federal government procurement website or its regional analogue. We assure you that a lot will become clear to you.
So, despite the fact that the Ministry of Construction claims that low-rise construction is suitable for small and medium-sized businesses, practice demonstrates the opposite. The creation of complexes is a large business with large incomes, and the path for beginners there is still not available.
But don't be discouraged. You can try a different, smaller business model.
Purchase and sale of business equipment
Purchase and sale of business equipment
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Russians inherited the idea of organizing a construction company as a large-scale activity with hundreds of permanent employees from Soviet trusts. In fact, the success of this enterprise depends on two factors: high-quality staff and competent selection of clients.
A company hoping to enter the market and compete on equal terms with successful competitors should offer the widest possible range of services, from project design to construction and finishing.
The tasks of the multidisciplinary organization include:
- provision of services for the development of individual architectural and construction and design projects;
- adaptation of standard solutions;
- construction of individual residential buildings, commercial objects and structures;
- renovation of apartments, country houses and office premises.
The start of activities in a specific area of the region will allow you to compete with the promoted rivals in the knowledge of the terrain, construction conditions, and features of project payback.
A quick outline of how to organize a construction company in four steps:
- conduct a preliminary analysis of the state of the economy of the territory;
- create a base for creating projects of a certain cost;
- choose a suitable building material; li >
- enter into targeted partnership agreements.
The following business plan for a construction company details the above points.
Construction and repair of housing, public utilities, industrial and office buildings are always carried out, regardless of economic crises, the impact of other factors.
Construction and finishing materials are bought constantly, and the industry remains promising. The success factor was the development of technology, which solved the problems with the quality of materials and production efficiency.
Evaluations of business projects in this area give a 70% profitability under the most unfavorable external conditions and payback within 1-2 years.
Choosing a direction for development
Business owner should consider:
- Prospects of the direction;
- Availability or ways of purchasing the required assets.
Business prospects mean:
The prospect of a direction is a subjective factor that depends on specific conditions. The volume of investments is seen as a deterrent by a company that does not have large reserves. But such a barrier to entry, which reduces competition, is beneficial for a large company.
As assets you should consider:
- Fixed assets (real estate, equipment, transport), inventories (raw materials, materials).
- Intangible assets (software, patents, licenses).
- Customer base and supplier base.
- Experience and training.
Assets accelerate the development of the enterprise and the exit to profitable work. But even the absence of some elements of the list is not critical, although it complicates the company's activities.