How to start a construction business from scratch and develop successfully
Investments: from 150,000 rubles
Payback: from 5 months
The construction business is a well-developed industrial area with broad and promising opportunities for obtaining a stable income. Construction will always be in demand. According to statistics, more than 30% of the population annually carry out partial repairs in their apartments, and about 10% completely renovate the living space. Based on this, the construction crew business looks very attractive. Let's take a look at this business idea: how to start and how much you can earn here.
The business idea "construction team" is an excellent opportunity to organize and develop a business without significant investment. The concept of "brigade" refers more to small businesses.
However, everyone who has decided to implement such an idea has broad prospects for expanding activities and reaching new levels, perhaps even of the global construction market.
In general, the construction market can be divided into two types: legal and illegal. The first type involves the independent execution of private orders by craftsmen, the second - officially registered companies, whose activities are regulated by tax legislation, while they work on the basis of appropriate permits and licenses.
Of course, the best option would be to contact the tax authorities and register a new business, since potential customers are more attracted by legal enterprises.
What is required for implementation?
In order to successfully implement this business idea, you will need to solve several important tasks:
- develop a promising business plan;
- decide on a list of works to be carried out;
- register an activity;
- find qualified specialists.
Good afternoon. My name is Egor Kirichenko, I am from Krasnodar Territory. For the last ten years I have been building houses for sale. I started working alone, and each time I found a new team for construction. At the moment, I organized a company (LLC), there is a permanent staff, its own designers and builders. This approach allows you to quickly build houses and hand over the finished building "turnkey" to the customer.
- initial costs - from 300 thousand rubles;
- number of employees - 20 people;
- several offices in the region;
- monthly income (depends on the volume of orders) - from two million rubles.
How to start a business building houses for sale?
Construction of houses is one of the most promising and profitable types of business. This does not require proof - it is enough to estimate the demand for housing in large cities and beyond. At the same time, both residents of the Russian Federation and foreign citizens act as buyers.
To quickly get a business on its feet and make a profit, proceed in the following order:
1. Develop a unified concept that will be followed in the future. There are several important points here - consider the importance of all communications, the availability of the Internet and telephone communications.
The area of a good plot is up to 15 acres, an entrance is required, the presence of a pond (river, lake), as well as forests nearby. The participation of the client in the development of the project is very desirable - he can make amendments to the issues of decoration, planning of structures, the shape of the house, and so on.
2. Decide how you will work - independently or with the help of an investor. Please note that the purchase of a land plot, the purchase of building materials and the remuneration of workers are significant costs.
A good option is to open a construction company and carry out construction after receiving an advance payment from the customer. In this case, you can quickly solve financial problems and speed up the construction process. On the other hand, the risks increase, because you have financial obligations to the client.
3. Choose an area for development. We have already partially mentioned a number of criteria, but this is not all.
Pay special attention to the infrastructure around the facility, proximity to the city, the availability of transport, the environmental component (is there any hazardous production nearby), the possibility of building additional facilities, and so on.
Today, the construction business is a gold mine for any responsible entrepreneur. And this is not without reason, since humanity loves to invest in expensive repairs, the construction of luxury houses, and so on. Unfortunately, there is a lot of competition in this type of business, which stifles most of the young enterprises. To dot the "I", today you will learn how to open a construction company from scratch.
Before you plunge into work, you must think over everything to the smallest detail, since your success and the survival of the enterprise as a whole depend on the correct start and further organization of the company's work. Do not think that we are discouraging you from organizing this type of business. If you do everything right, then your earnings will grow exponentially.
How to start a construction company from scratch and where to start?
Let's say you decided to start a business in the construction industry. To begin with, you must decide on the specific type of activity that you will be engaged in. As the market analysis shows, construction companies of narrow specialization are less in demand, but it is also not worth grabbing at everything at once.
If you start your own business in the construction industry, then you will need a huge financial investment. And if you want to cover several sectors at once, then the initial investment will be required at all colossal in size. And the second important point - in the construction business, it is not so important the number of areas of activity that the company covers, but the quality of work. And besides, the more construction services you cover, the more workers and tools will be required, and this is all additional financial costs. That is why, we recommend that you carefully think over the direction before starting work and develop it in order to ultimately bypass all direct competitors.
As a hint, here are the most common types of activities that are involved in the construction business:
- Industrial construction means the construction of factory and factory buildings, as well as the construction of various economic facilities of varying degrees of complexity and warehouses,
- Road construction is the most expensive, costly and very complex. The main customers for road construction are the state, and accordingly, you will have to deal with the construction of highways, repair of old roads and pavements,
- Civil engineering is easier to organize, because tasks here will be easier on a global scale. Even the construction of turnkey houses will not be as large-scale as the construction of highways or factory complexes. Also, civil engineering services can be used to equip summer cottages, dismantle and install buildings, build baths and car garages.
But all of the above options are suitable for companies that have already decided on the field of activity and have already taken their place in the service market. How then to open a construction company, if you do not have a large start-up capital. It turns out that there is always a way out - you can start a business by decorating the premises.
Remember! Never refuse such offers, as relatively little money can ultimately bring serious dividends. And the second reason is that with high-quality execution of the order, your client will be satisfied and can turn to you again. Or he will recommend your services to his acquaintances and friends, which will also benefit you.
Advantages of finishing works:
- Business relevance. Repairs in apartments, houses, shopping centers, shops and other objects of civilian life are always done. At the initial stages of the work of your business, you are unlikely to wait for large orders, therefore, it is better to undertake cosmetic or complete repairs of small premises.
- Quick search for employees. Today, there are a lot of unrealized finishing personnel on the construction services market. Some even have their own arsenal of working tools, which will allow you to save even on this at the initial stage.
I would also like to note that newcomers can use leasing in order to save on start-up capital. Leasing is a service that makes it possible to rent all the necessary equipment (tools and equipment). Leasing should not be neglected by large companies: if you need an excavator or a crane for work, why keep it on staff and pay him a salary every month, if you need it once or twice.
The construction business is gaining momentum every year, which is associated with an increase in demand for housing and an improvement in economic factors. Therefore, the business idea of opening a construction company is relevant and can be implemented in fairly favorable conditions. About where to start and how to correctly draw up a business plan for a construction company, we will talk in this article.
Business plan of a construction company
Relevance of the idea
In order to understand how profitable this direction is, let's analyze the prospects and relevance of this idea. What features does this business area take into account?
Investment, with proper planning, can pay off within a few months. And the development prospects for this industry are truly endless.
In order to implement the idea of opening a construction company, you can go in two directions:
- Purchase a ready-made business.
- Create a company yourself.
The first option has its advantages due to the fact that you no longer need to spend time and money on registering a business, obtaining permits. Those who have encountered this bureaucratic red tape know firsthand how much this takes time and effort.
Another important point is the already selected staff of the company, well-established sales channels.
But there are a number of disadvantages to this option. If the business was unprofitable, the wrong marketing technologies were implemented in it, then it will be difficult to bring the company to the proper level of development. In this regard, it is much easier to set up a company from the very beginning.
In addition, the reputation of a company is very important in the business of construction and repair services. When purchasing a ready-made company, you will have to rely on the already created image of your predecessors. If it is not good enough, you will have to spend a lot of time, effort and money on promoting the company, creating a positive reputation, etc.
Pros and cons of a business idea
You have made the decision to start your own business. At the same time, of course, you want it to be profitable and bring you not only tangible, but good income. The best choice is your own business in the field of construction services. This type of business perfectly pays off all investments in it and brings excellent income to its owner.
But how to start a construction business? What is needed for this? Which option should you choose? Let's consider these questions.
There are two ways. Or buy a ready-made construction company, where everything is settled and arranged, has its own staff, the necessary equipment, production capacity, authority and a list of clients. Or start from scratch, step by step, building every step of this profitable but difficult business. We will talk about the second option a little below, and now a little about the advantage of buying a ready-made construction organization.
We buy a ready-made company
From the very beginning, you need to conclude a purchase agreement between the current owner on the one hand and the potential owner on the other. Of course, it will be necessary to appoint a new CEO of the firm. However, there is one extremely important nuance here. When buying a ready-made construction company from law firms, you need to make sure that the founder of the company acting at the time of purchase is a completely real person, and not a dummy “doll” or just a fictitious person existing only on paper. As a rule, all procedures related to the registration of changes in documents are already included in the price of a ready-made construction company in advance. And all this work will fall on the shoulders of the employees of the selected legal company-seller.
The question concerning the package of necessary documents that you receive when buying a ready-made construction company is also extremely important. This package necessarily includes:
- Charter of a ready-made company.
- Certificate of registration of the company with the tax authorities.
- Certificate of state registration of the company.
- Seal of the future construction company.
- Decision to create a company.
- Statistics codes - OKVED, Goskomstat, etc.
Let us repeat that the acquisition of a ready-made construction company is much more profitable and will help in the future with a decision on how to organize a construction business.
Business from scratch A few words
But if you nevertheless decided to start a business from a "blank slate", then we will try to tell you how to do it correctly and not get into unpleasant or unprofitable situations.