How to start a construction company from scratch
The construction of buildings and structures is still one of the most demanded services. This market segment is distinguished by dynamic development, the emergence of new technologies and methods of construction work. At the same time, the construction industry is characterized by increased competition and development of the entire segment.
Those wishing to do business in the field of construction are recommended to correctly prioritize business and find out all the accompanying nuances. All identified priorities, accompanied by calculations of the economic indicators of the project (income and expenses) should be included in the business plan.
Since it will be presented to investors in the future, the calculations contained in the business plan are of great importance, the obtained indicators will influence the positive decision of investors. The process of opening a construction company can be divided into 3 stages:
- registration of a legal entity, and registration of the necessary seals and forms;
- obtaining permits .;
- drawing up a business plan.
It is necessary to elaborate on each stage:
- During the first stage of starting a business related to the activities of a construction company, a businessman must choose a legal form within which the whole organization will carry out commercial activities. It is best to choose the form of SP, or Limited Liability Company. Next, it is necessary to carry out the design of the company's round seal and purchase letterheads. To ensure the activities of any commercial organization, a bank personal account must be opened.
- In 2021, the need to obtain a license to carry out construction works was canceled, which greatly simplifies the opening of a business in this area. For the activities of a construction company, admission to an SRO (self-regulatory organization) must be provided.
A correctly drawn up business plan not only influences the successful operation of the entire enterprise in the future, but also allows the entire commercial project to be presented to investors from the advantageous side.
The business plan must contain the services that will be provided in it. These services are divided into standard and specialized. The standard ones include:
Owning your own construction business can be very rewarding, but it also takes a lot of work. You not only need to think about how you are going to pay the start-up costs. Moreover, it is necessary to come up with procedures for marketing and project execution. If you take the time to craft and write your own construction firm business plan from scratch, you can have a successful project.
First of all, you need to understand your market. Start investigating the potential profitability of the construction business. Consult industry publications for market trends specific to the construction industry in your area. The RF Small Business Administration is also an excellent resource for finding relevant industry information. Also, you should find out what other companies offer similar construction services in your area, how much they charge, and what their reputation is.
You can also learn more about your community's building services needs by going out there and talking to local residents and business owners.
Be sure to consider the demographics of the area. You need to provide services that people in your community want and can afford.
Sample Business Plan
Writing a construction company business plan that sets out your business goals and procedures is an important step in a profitable business. This white paper will help you understand everything related to starting a business. You will also need to submit your construction firm business plan to any potential lenders. Therefore, you need to spend a lot of time developing it.
The business plan for starting a construction company should have separate sections that explain in detail:
- organizational form of the business structure;
- what services do you provide;
- who will be your target market;
- how many employees will you hire;
- how will you sell;
- what kind of competition you will face;
- how will you differentiate your business from competitors; <
- how much will it cost to start a construction company from scratch;
- estimated income and profit.
If you've never written a business plan from scratch, you may need to hire a professional to help you write it.
Decide where you will start a construction company from scratch. You will need:
- administration office;
- large storage space for tools and equipment;
- parking space for construction vehicles.
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- 1. The theoretical foundations of business planning
- 1. The value of business planning
- 1. Functions of a business plan and stages of its development and structure
- 1. Features of business planning in Russia
- 2. Business plan development
- 2. Summary
- 2. General characteristics of the enterprise, industry, products
- 2. Analysis of the market and main competitors
- 2. Production plan
- 2. Investment plan
- 2. Organizational plan
- 2. Risk plan
- 2. Financial plan
In recent years, business planning has been an important component of planning any enterprise operating in the market. In turn, the main component of business planning is the development of an enterprise business plan.
The business plan is developed both at the beginning of the organization's activities, and after its rather long existence. A business plan allows you to evaluate your business, looking at it from the outside, as well as to justify the implementation of new projects, to attract investors, both private and public.
A business plan allows you to bring together the entire set of information about the company, its external and internal environment and analyze it.
Thus, despite the fact that in our country, business planning is not yet applied to all enterprises and is not as widespread as in foreign developed countries, nevertheless, this issue is quite relevant for our enterprises and their leaders.
The purpose of this work is to consider the essence of a business plan and its role for the enterprise.
In accordance with the set goal, a number of tasks are being solved:
1. Consideration of the theoretical aspects of business planning;
2. Drawing up a business plan for a specific organization.
The object of research in this course work is a specific organization of CJSC SibStroy.
Federal Agency for Education of the Russian Federation
Department of Construction Economics
by discipline: "Business planning"
on the topic: "Business plan in construction"
Any entrepreneurial organization starts with a business plan. It reflects the challenges that entrepreneurs will face in the process of achieving their goals. Systematization of these problems in the appropriate sections of the business plan helps to develop and provide the most appropriate solutions. The content and degree of concretization of sections is determined by the specifics and scope of its activities.
The purpose of developing a business plan is to plan the company's economic activities for the near and distant periods in accordance with the needs of the market and the possibilities of obtaining the necessary resources.
A business plan acts as an objective assessment of one's own business and at the same time a necessary tool for design and investment decisions in accordance with the needs of the market. It characterizes the main aspects of a commercial enterprise, analyzes the problems it will face, identifies ways to solve them. Consequently, a business plan is simultaneously search, research and design work.
It would not be an exaggeration to name a business plan as the basis for managing not only a commercial project, but also the enterprise itself. Thanks to the business plan, the management has the opportunity to look at their own company from the outside. The very process of developing a business plan, including a detailed analysis of economic and organizational issues, makes you mobilize. The purpose of a business plan can be obtaining a loan, or attracting investment, determining the strategic and actual guidelines of the company, etc.
Application of a business plan in construction
The theory and practice of management shows that any economic activity should be aimed at solving a particular problem. Moreover, the correct decision allows you to maximize the intended goal. In turn, the goal is tactical and strategic. For example, every construction company sets many goals for itself and captures them in a business plan, which is a streamlined course of action to achieve these goals.
Can I work without a business plan? What does a business plan give? Does it make sense to get acquainted with a business plan in today's unstable conditions?
In order to create an effective organization of any type that will operate consistently and make a profit, you need to create a strong organizational structure.
The management structure of a construction company consists primarily of management bodies. Bodies are usually understood as employees of this company who hold certain positions, and are also responsible for the entrusted equipment used in the territory under their control. In addition, each employee from the management bodies bears a certain responsibility, and also performs his duties.
In addition to these bodies, there is also a certain management technique, which includes the tools used in this section of construction work and controlled by one of the governing bodies. Due to the rapid progress of management technology, it increasingly begins to influence the authorities, and, as a result, the structure of the construction company is changing.
It is also worth noting that there are three types of governing bodies in this area - they are higher, lower and equal. The organizational structure of a construction company also has links between different bodies. Such ties are divided into vertical, that is, the subordination of one body to another, and horizontal, that is, equal.
Organization structure of a construction company
There are four fundamentally different types of leadership in the management structure of a construction company. All these types of structures have their own disadvantages and advantages.
- The first form is a linear structure. Is the most simple of all. Such a structure of regulation is characterized by the fact that there is one higher body and several lower ones. The structure of a construction company with a linear form of management assumes that each group of workers has one boss who is responsible for the work of the entire group, and also makes all decisions concerning these workers directly. He is also the only one who receives all the necessary information from these employees.
- The second regulation option is a functional type, which assumes a staff of decision-makers. Each of them performs different functions, such as accounting, planning, etc. All decisions made by these bodies must be carried out by all subordinate employees.
Combined control schemes