How to start a construction business from scratch: a business plan

Each construction company has its own modification in the classification table according to certain criteria. At the same time, the volume of work performed and on how many objects is being built must be taken into account.

A construction company can work under a contract, perform basic and specialized construction work, have the specifics of construction (industrial, transport, etc.), create trusts - sites for large orders.

General information

According to the number of specialists working in it, construction companies are divided into:

• small (1 - 100 people),
• medium (101 - 500 people),
• large (501 and more people)

In order for the company to have stability in its work and make a profit, it needs an organizational structure for managing a construction company. The management structure is represented by management bodies represented by employees with certain job duties and responsibilities. Construction company governing bodies are divided into three types. At the same time, the organizational structure of the construction company ties them together: vertically and horizontally.

In the organizational structure of management of a construction company, there are several types of leadership that have both positive and negative aspects in their activities.

Details

Linear structure

This can be seen with an example: the construction director is subordinate to the security manager, foremen and workers.

Let's analyze the business plan of the construction business, its profitability, payback, as well as marketing activities. We will understand the construction business as building houses, not repair services for residential and non-residential premises. Construction and everything connected with it is a lot of money and a lot of competitors, so it is simply stupid to approach this business without clear planning of costs and profitability.

Infographics: How to start a construction business from scratch

Advantages and disadvantages of starting a construction company

How to start a construction business?

An entrepreneur has two options:

• Purchase a ready-made construction company, which has documents in order, has its own staff, production capacity, equipment necessary for operation. The company must have credibility and loyal customers.
• Start everything from scratch, gradually building this profitable, but not easy business.

Purchase of a ready-made construction company

The first step is to conclude a sale and purchase agreement for the company with its current owner. Appointment of a new director / CEO of the firm will be required.

Be careful when entering into such a deal. If a turnkey construction firm is acquired from a law firm, make sure that the current founder is a real person. There are variants of a dummy "doll" or just a fictitious person, available only on paper, acting as a founder. Usually, the cost of a ready-made construction company includes the costs of procedures for registration of changes in documents. If the founder subsequently turns out to be a fake, the costs of registration and proceedings will be borne by the buyer.

It is important to carefully study the package of necessary documents that the buyer receives when purchasing a ready-made construction company. Such a package of documents must contain:

Business plan of a construction company with calculations

Small construction business, as well as large, is a profitable business in terms of payback and growth prospects. Such a small business includes the construction of country cottages. Given the increased popularity of private houses, the company can quickly recoup the money invested. The payback period is 6 months.

Starting a company will require qualified employees. The staff will be 29 people. It is also necessary to rent an office space. The minimum office area is 100 m2.

The average cost of building 1 m2 of a cottage is 15,000 rubles.

Taking into account the seasonality of the business, which falls on the summer period, the company will be able to conclude on average 12 contracts for the construction of cottages. The average size of a house is 250 m2.

Thus, the company will build 30,000 m2 per year. Given the high demand, this indicator can be increased by hiring additional staff.

The amount of initial investment - 2,482,000 rubles.

Average monthly profit - 2,045,000 rubles.

The break-even point reaches the third month

Payback period - 6 months

2. Description of business, product or service

Currently, due to overpopulation in the city and the desire of people to live in the countryside, more and more people are thinking about building their own country house.

This is evidenced by the downward trend in the number of purchased apartments in multi-storey buildings. In this regard, the need for construction companies of suburban real estate is constantly increasing.

Brief Investment Memorandum

Small construction business, as well as large, is a profitable business in terms of payback and growth prospects. Such a small business includes the construction of country cottages. Given the increased popularity of private houses, the company can quickly recoup the money invested. The payback period is 6 months.

Starting a company will require qualified employees. The staff will be 29 people. It is also necessary to rent an office space. The minimum office area is 100 m2.

The average cost of building 1 m2 of a cottage is 15,000 rubles. Taking into account the seasonality of the business, which falls on the summer period, the company will be able to conclude, on average, 12 contracts for the construction of cottages. The average size of a house is 250 m2. Thus, the company will build 30,000 m2 in a year. Given the high demand, this indicator can be increased by hiring additional staff.

The amount of initial investment - 2,482,000 rubles.

Average monthly profit - 2,045,000 rubles.

The break-even point reaches the third month

Payback period - 6 months

Description of business, product or service

Currently, due to overpopulation in the city and the desire of people to live in the countryside, more and more people are thinking about building their own country house. This is evidenced by the downward trend in the number of purchased apartments in multi-storey buildings. In this regard, the need for construction companies of suburban real estate is constantly increasing. The market volume is growing, which opens up new opportunities for new companies.

The main factor influencing the success of companies in this business is the provision of turnkey services to the client, including design, construction, renovation, and finishing of premises. It is also necessary to add additional services: designer and technical supervision, land acquisition. The main activity is the construction of cottages made of bricks, wood and other materials. When opening a company, you need to pay attention to the development of software for fast communications with the client and suppliers. It is important to comply with reporting to the client, to complete all stages of work on time and without increasing estimates.

• 1 Business plan for a construction company
• 2 A step-by-step plan for how to register and open a construction company
• 3 How much money is needed to open a construction company company
• 4 How to start a construction business: recruiting personnel
• 5 Obtaining permits
• 6 Purchase of equipment
• 7 The structure of a construction organization: sample <
• 8 Search for orders and options for cooperation of construction companies
• 9 Marketing campaign
• 10 Best names of construction companies

For many years, the provision of services in the field of construction has remained a profitable business, because the very process of building a house, renovating an apartment is laborious and requires special skills and qualifications. In this article, you will learn how to successfully launch your construction company.

Construction company business plan

Construction firms differ in their specifics, in the list of services provided, in the number of employees. For example, there are firms that focus on building "from the foundation", and there are those that are engaged in renovation, interior and exterior decoration. Someone works for large customers and even builds entire cottage villages, and others carry out small private orders. The specifics of the business differ depending on the chosen direction of work.

Therefore, an individual business plan must be developed for the creation of a new organization. Planning, calculating a future project will help to avoid many problems, predict risks, calculate the threshold of profitability, and determine the payback period. With a business plan in hand, it will be much easier for you to attract investment in starting a business, because an investor needs confidence in the long term.

- formulate the main stages of the project implementation with the necessary measures;

- write a detailed summary: what the organization will do, who will be included in the category of consumers of services, describe the list of services provided and the general concept;

- study the competitive environment, highlight the advantages and disadvantages of competitors, analyze the market situation;

- register a production plan with a list of all necessary purchases;

- calculate the financial plan: expenses, income, sales plan, payback period. Describe the financial and economic justification of the investment: calculate the required loan funds, calculate the break-even point, calculate the amount of profit and net profit of the investor.

- register a marketing plan.