How to make money on the construction of residential buildings
Feedback on the business plan of the cottage village
We opened a credit line for 700 million rubles for the construction of a cottage community. The developed business plan was checked by the bank, no additional questions arose.
Chief Accountant of StroyServicePlus LLC
Feedback on the business plan for the construction of wooden houses
While expanding the volume of construction, it was possible to attract private investment in the amount of 90 million rubles. A comprehensive analysis, detailed calculations of the business plan clearly showed all the benefits of project development.
Feedback on the warehouse business plan
Received 50 million rubles from an investor. First-class work, competent calculations, professional market analysis, clear description.
Content of the residential complex business plan:
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The construction of private low-rise houses for sale is a promising project, which, however, will require not only high costs, but also a detailed organization, which means that a business plan is needed here.
The demand for private residential buildings is growing every year: tired of living in the stone jungle, people strive for a quiet life, away from annoying neighbors and bustle. A large number of construction companies embody the dream of their cozy home, so a novice entrepreneur needs to understand that competition in the market for the construction of low-rise private houses is quite high. But this is not a reason to abandon a business idea, the key to success here is competent planning and organization.
If you want to get a loan or attract investment, then a business plan for the construction of private low-rise residential buildings would be an ideal solution in such a situation.
Features of planning the construction of residential buildings
The construction of private residential buildings is a profitable business, but it is associated with some economic risks. At the stage of developing a business plan for the construction of houses for sale, they must be taken into account.
- High competition in the market of developers
- Seasonality of business
The business plan should strategize on how to avoid potential economic pitfalls and turn the construction of low-rise buildings into a profitable enterprise.
An example of a business plan for the construction of private low-rise residential country houses for sale with calculations
Table of Contents
Brief Investment Memorandum
The construction business has always been a fairly profitable type of business. This is due to several factors. First, there is a constant demand. People are moving to cities and the demand for apartment buildings is constantly growing. Secondly, these are large volumes and, accordingly, a large potential profitability of this business. The approximate payback period for the construction of an apartment building is 20 months, starting from the start of sales of apartments, the break-even point falls on the second month of sales.
Organizing this business will require not only large financial investments, but also large enough human resources. To quickly and efficiently work on the construction of the building, 111 people will need to be hired. Most of them are builders and handymen. Also, for the construction of the building, you will need to rent a land plot near the city. The minimum area is 10 hectares.
The total area of the residential building will be 16,000 m2. Of these, 12,000 m2 will be residential space and 4,000 m2 commercial space (taking into account a space loss rate of 30%). The average cost of construction for 1 m2 is 13,500 rubles / m2. The margin of this business is from 30 to 40%. As a result, the financial indicators of the project will be as follows:
Initial investments - 251,905,000 rubles
Monthly profit - 12,500,000 rubles
Payback period - 45 months
Break-even point - 26 months
Return on sales - 240%
Description of business, product or service
The first necessity for a person is the need for housing. The demand for residential real estate is constantly growing. This is evidenced by the constant growth of sales and the increasing commissioning of new buildings. Therefore, investing in the construction of multi-storey buildings is a profitable and promising business.
The main activity of the company will be the construction and sale of residential and commercial real estate, as well as the management of these houses after construction.
For this business plan, the total height of the building is 10 floors. The house includes 5 entrances. There are 3 apartments on each floor: 1 one-room apartment with an area of 35 m2, 1 two-room apartment - 60 m2 and 1 three-room apartment - 90 m2. It is necessary to build a monolithic house. This will significantly reduce costs and speed up the construction process.
Business plan for housing and communal services
Housing and communal services business is one of the most unpredictable and risky. Although, if you approach the matter wisely, it is quite possible to count on a good profit by demonstrating to others how to do business. Where to begin? First of all, with the registration of the company. It can be both LLC and CJSC, this is not the main thing, the most difficult thing is obtaining a license for this type of activity.
When starting a utility business, an entrepreneur needs to collect a lot of documents and run around officials. It may take 6 months to a year to obtain all the necessary licenses, including those for garbage collection. Financial costs - 1.5-2 thousand dollars. The total initial investment in the business will range from 50 to 150 thousand dollars, depending on the volume and condition of the housing stock, which will go under your control.
The profit in the housing and communal services business is not so great, the costs of servicing the territory entrusted to you will certainly be very high, but it is much more difficult to recapture them. Typically, income ranges from 5-7% of total revenue. If your housing stock does not exceed 180-200 thousand sq. meters, then there is no need to talk about high profitability.
Business in housing and communal services is the clearest example of the struggle against the difficulties that our state has created for itself. In fact, there are not so many entrepreneurs who want to retrain as managers of utility companies. And this is understandable - just look at the state of the housing stock, which will be served by a few optimists.
Nevertheless, the offer of private services in such a business as the housing sector still exists. And one can only applaud these daredevils who have taken on such a difficult task. They should start with personnel, since this factor plays a key role in housing and communal services. The parables about drunk plumbers and electricians have long been sore, and it will not be so easy to break a stable opinion.
The public dispatch service must operate around the clock. To avoid complaints from tenants, it is necessary to ensure high-quality and efficient work. Some entrepreneurs hire third-party organizations for these purposes, but such measures do not always justify themselves due to the lack of proper understanding between the two services.
Well, and the most important thing for a businessman who has decided to start his own business in the housing sector is attracting clients, most of which are represented by the chairmen of the HOA. There will be no problems with this if in your work you rely on a professional business plan for housing and communal services. With its help, it will be easier for you to enter the housing and communal services market and achieve financial success there.
Business plan for creating a management company of a management company in the field of housing and communal services with examples of opening, a ready-made sample with step-by-step instructions
Opening a management company is a promising business direction in modern conditions. This niche in the market is currently not completely filled, so it is possible to develop here quite successfully. Most homeowners try not to interfere with the essence of the management of an apartment building, including not seeking to communicate directly with the many contractors who provide certain services.
Moreover, the housing stock of apartment buildings is constantly increasing. That is why the management company in the housing and communal services sector is a business that can provide stable profits.
The main thing in this case is a high-quality business plan of the management company, which will provide for all aspects of this business. A business in the field of housing and communal services should definitely start with a competent business plan. You can even compose it for free based on the calculations presented as an example. All aspects of the opening of a management company in the housing and utilities sector should be taken into account: registration of an enterprise, rent, purchase of equipment, staff maintenance, and the like. This will allow you to calculate the total costs, profits, and the payback period.
First steps towards the UK
The real estate market has always been a relevant option for business. Housing is one of the most important purchases in some people's lives. Many people set themselves the goal of buying a living space. Having your own roof over your head has always given you confidence and security. For this reason, the demand in the real estate market is a thing that will always exist. It is possible to find your client in this market.
But, an attractive prospect with potential clients is not that easy. After all, a real estate business involves many risks. It will be difficult to do such a thing without a large start-up capital.
Enough attention should be paid to drawing up a business plan for the construction of multi-storey residential buildings. Each of its stages is very important and can be decisive for the success of the project. A detailed analysis of the market and the region will help to correctly determine a promising place for placing a house. Studying the solvency of potential tenants will make it possible to understand whether it is worth starting construction in the selected region at all.
Brief business plan for the construction of a residential multi-storey building
To start a project for the construction of a multi-storey residential building, you need to draw up a step-by-step business plan. It will contain the following items:
- Analysis of the region's real estate market.
- Search for a land plot.
- Business registration.
- Development of a construction project.
- Conducting geological examinations.
- Drawing up a financial plan.
- Investigate project risks.
Some parts of the business plan will take a lot of time and money to implement. Therefore, for each stage, it is also necessary to calculate the approximate implementation time.
Before choosing a land plot for the construction of a future house, it is necessary to decide whether there will be a demand for residential apartments in this region. The key factor in this analysis will be the solvency of potential buyers. It is also necessary to study local statistics on the issue of internal migration. The concept of how much the area is becoming popular and growing will help to calculate the prospects for starting construction.
It is also worth exploring the previous history of the area. If, for example, an industrial plant was previously built on the site of the future house, then it is unlikely that apartments in such a place will be in demand.
There are prospects for the development of a construction project in both big and small cities. If we talk about megacities, then the outskirts of the city, which will be actively populated by visitors, can become promising places. In small towns, a construction project can be launched in any popular area, where other legislative and geological nuances will not contradict it.