Construction business: development trends, forecasts and expert opinions
The construction business is highly profitable. When planning activities in this direction, everything should be calculated in order to have an idea of how much you need to invest in a project, what are its risks and prospects. Business is characterized by serious competition, so it is important to figure out how to open a construction company from scratch in order to quickly establish itself as a reliable contractor and firmly occupy a niche.
Features of starting a construction company from scratch
A feature of the business in the construction industry is the need to obtain permission from a self-regulatory organization to work with increased danger. It will be needed if a businessman plans to engage in capital construction or participate in government tenders. In all other cases, a permitting document is not required.
If, according to the results of calculations, it turns out that an entrepreneur cannot start from scratch, he can simplify entry into the business by launching his project under a franchise scheme. This solution will allow minimizing advertising costs, purchasing building materials and introducing new technologies.
Registration of a construction company
A construction company can be registered as an individual entrepreneur or LLC. The organizational format of the activity is determined by its planned scale. With small volumes of work, individual entrepreneurship is sufficient.
Important! The registered business status will give the entrepreneur the right to conclude contracts with clients and will allow him to avoid fines from government agencies.
Drawing up a business plan
A business plan for a construction company from scratch is drawn up at the stage of business planning. Its purpose is to ensure a competent organization of the start and further functioning of the company. The project defines the types of work and the conditions necessary for their implementation. It also covers questions about finding clients and promoting a business.
Thanks to the business plan, costs become visible, therefore, at the planning stage, the entrepreneur has the opportunity to calculate how much money needs to be invested in the project and think over which financial strategy will suit him. The main sections in the business plan:
- A summary in which it is necessary to reflect the goals and objectives of the business entity, as well as the focus of the planned services.
- Analysis of a niche and assessment of the viability of the project in it.
- Description of services.
- General description of the business entity with disclosure of information on the planned format of activities and on promising intentions in relation to promotion.
- Organizational plan reflecting information on the legal framework that should be taken into account when conducting activities, the timing of the implementation of each stage of the project.
- A marketing plan with an analysis of the needs of potential customers and competition, with the identification of business risks, with the definition of marketing methods and a strategy for promoting goods.
- A production plan with technologies planned for implementation, for which equipment, personnel for its maintenance are selected, its qualifications are determined, and the issue of the expediency of buying or renting premises is considered.
- Enterprise risks and ways to minimize them - identifying factors that can negatively affect the results of activities and suggesting ways to eliminate them.
Select a field of activity
Business ideas in construction can be implemented in different areas of this niche. Their choice in most cases is determined by the financial capabilities of the entrepreneur.
The thought that starting a business in the construction of garden houses will have to compete with large firms is horrifying. They have everything for a successful business: their own forest, lumberjacks, woodworking enterprises, professional designers and builders, an extensive regional network, transport, advertising, management, day and night thinking about expanding sales.
A startup business in this construction industry has none of this. To buy the source material - timber, boards, slats, etc. - in any case, he will have to with a trade margin and with the added value of the manufacturer. In other words, no matter how hard the entrepreneur who steps on this path tries, his house will be more expensive than the factory one.
It is unlikely that a poor (average) resident of a provincial town will shell out three hundred thousand rubles for a beautiful five by five wooden shed, which is offered by sellers of collapsible garden houses. In this market, the winner will be the one who proposes projects that are cheaper than the budget class. In this regard, three ideas deserve attention.
House of the Hobbits
In the movie "The Lord of the End," notorious hobbits lived in earthen houses. No - not in dugouts dug in the ground, but in beautiful earthen houses. This option refers to truly budget projects. Having decided on the size of the house, no more than four meters in length, on the simplest foundation, from cinder blocks with a sand cushion, standing half a meter apart from each other, a frame made of timber is installed, upholstered from the inside with a "twenty" board. This box, with a single front side, on which the front door and a couple of windows are installed on the sides, is treated with a chemical solution "against decay" and sheathed with roofing material. Then they begin to sprinkle with earth in layers, fifty centimeters thick, which is poured with water for shrinkage - so as to make a hill with a house inside. The result is an earthen house. All that remains is to decorate it with ornamental shrubs and lawn grass and tidy up the facade.
Experts appreciate such a project. Construction engineer Petr Sergeevich Onishchenko from the Moscow region, when asked to comment on this project, said: “We walk on the ground, even tanks drive on it. Such a house keeps itself. An amazingly interesting project. Especially in conditions of insanely expensive building materials. Of course, you need to have a sense of the landscape so that the earthen house does not look like a Scythian mound. "
Paradise in a tent
Of course, a traditional house with four sides and an ordinary roof - both looks better and is more comfortable for living. However, if the consumer is very limited in money, he willfully or unwittingly think about this option.
In proportion to the growth in the cost of building materials, the popularity of adobe as a material for walls is growing. A small adobe house, which used to be very popular in Ukraine, can be built almost for nothing. The frame of the “Ukrainian hut” is made of 100 × 100 mm timber, the walls are made of willow or lime wattle, and they are coated with adobe, a specially prepared clay material. Recently, instead of traditional willow fittings, a galvanized chain-link mesh reinforced with steel wire has been used.
The construction business in the current economic situation is experiencing certain difficulties. There are different opinions about the prospects for its further development. In particular, if we consider the sphere of housing construction, the situation is twofold. On the one hand, the quotes in the ruble-dollar, ruble-euro currency pair, which caused a decrease in the level of solvency of Russian citizens, caused a drop in demand for housing, which, naturally, will lead to a fall in its value in the future. On the other hand, people tend to preserve their funds by investing in certain resources. Bank deposits, currency and gold do not inspire great confidence in people, but real estate will not lose its value and relevance. Also, many have the opportunity to make money in the construction business - business ideas in the service sector are in great demand. After all, construction needs service no less than the automotive industry and real estate trade.
Construction business in Russia and prospects for its development in the near future
In the context of these two trends at the end of the past year, the demand for real estate increased significantly, the peak of activity fell on October and November. According to forecasts of experts in the construction market, at the beginning of 2021 the situation of increased demand should have continued. In the spring of 2021, a slight decrease in prices for new buildings is forecasted.
Cause disputes and issues of influence on the development of the construction industry and imposed sanctions. According to officials and heads of large construction companies, no radical changes will be introduced against our country in the construction industry. As for the possible crisis situations that the construction business may face, they are out of the question. Construction is based on equipment and materials from domestic manufacturers. Of course, imported building materials will have to be abandoned, but this has a definite plus. Russian industry will have to work at full capacity to meet the needs of the domestic market. In this respect, the Leningrad Region is unique, since many modern business ideas of technology and production in the construction sector are concentrated here. Due to this, it is here that about 90% of enterprises producing materials for construction are located.
The small construction business will not be particularly affected either. Rather, on the contrary, very favorable conditions will be created for its development, primarily by freeing the market from foreign competitors. According to forecasts, this will serve as an impetus for the emergence of innovative business ideas for small businesses, and many will have the opportunity to realize their ideas right from the start.
Will there be any sense in the mortgage industry?
In terms of "today" this is a completely natural and justified question. The current economic status quo will not affect the mortgage industry in the best way. The sanctions will lead to an increase in interest rates, while the number of people applying for a mortgage will decrease. As a result, a slowdown in the rate of development of the mortgage industry is expected. A significant decrease in liquidity is forecasted, which will create a certain tension in the domestic residential real estate market, as well as complicate the further development of construction projects.
If you look at the statistics, they still indicate the growth of mortgage lending. As for the cost per square meter, at this stage it is determined to a greater extent by market demand.
At the same time, there has been a tendency for prices to fall in the area of the residential complex due to the fact that they have already reached their maximum.
Companies offering economy-class housing on the market practically do not risk anything. This is due not only to the demand for this segment of the real estate market, but also to the availability of domestically produced building materials.
Thus, the factors that determine the cost per square meter are:
- Market demand for housing;
- Attachment of construction projects to the dollar;
- Cost of building materials;
- Volumes internal market of building materials.
Anti-crisis business ideas in construction
The construction industry is a sector in which the use of modern technologies is the norm and the key to a successful business. The result of the construction must provide:
- Reliability and lack of design flaws.
- Low energy consumption during building operation.
- Comfort of staying in the room.
- Reasonable cost of the target.
Success in any of the business areas is determined by the presence of product consumers. Customers need to provide a high-quality modern product at an optimal cost. In the field of construction, new technologies make it possible to create prefabricated buildings for public, administrative or industrial purposes. The use of sandwich panels in construction is one of the successful proposals of the last decade.
Defining your own forces and tasks
To create a successful construction business, you need to analyze your own opportunities in the field of activity. The path to success lies in 2 planes: optimal satisfaction of needs and price categories of demand.
Choosing a direction in construction
Construction works can be carried out in multi-storey and low-rise types of construction. The construction of multi-storey buildings requires a mandatory SRO permit and the availability of a serious material base. Low-rise construction is no less in demand, but requires more modest material investments.
Facilities can be erected on a turnkey basis without the involvement of third-party contractors. An example of efficiency is a successful pre-fabricated construction from VRK1 with the implementation of all stages from the zero cycle to the commissioning of the facility.
Use of quality materials
Customer success, new orders and hidden advertising are achieved by high-quality execution of the construction contract. When constructing prefabricated buildings, an important parameter of a reliable result is the use of quality materials from a trusted supplier. The company and the customer must be confident that any component of the structure meets the reliability requirements.
Attracting qualified personnel
A professional approach to the implementation of contracts is one of the components of success. Working with clients, evaluating and measuring, erecting an object - all stages of construction matter. It is not enough to have a quality supplier; it is necessary to build the structure reliably and on time. If the construction is carried out by contractors, confidence in the quality result will ensure the absence of complaints and the further development of the company.
The construction business, with the right approach and competent organization, can become not only a profitable business, but also turn out to be one of the most effective and fast enough ways to "roll out". In addition, it is necessary to understand that services related to construction, carrying out various types of finishing work will be in demand almost always, at any time, regardless of the economic situation in the country and without reference to a specific region.
How to start a construction company from scratch? What should be done and in what sequence? We will try to give a detailed answer to this and a number of other questions below.
Bad luck - the beginning
It is rather difficult to enter and start actively developing in the construction market. However, it is here that the chances are approximately the same both for beginners in this sector of activity and for experienced entrepreneurs who have decided to change the growth vector.
The first step, from which the development of any project begins, is the formation of a high-quality, well-thought-out, comprehensively calculated business plan. The better and more accurately the questions in this regard are worked out, the sooner an answer will be received to the question of how to open a construction company. A competent, well-thought-out strategy will allow you to run a business and develop with minimal investment. And the economic effect and profit will be received quickly enough.
Select a field of activity
It is not difficult at the initial stage to determine the direction of work in order to open a construction company from scratch. The business development strategy can be directed in one of three main directions:
- Private, individual construction.
- Construction work on an industrial scale (a separate direction here is the road industry).
- Overhaul, interior finishing works.
Obviously, if there is no opportunity to purchase heavy construction equipment, purchase modern high-tech equipment and other production facilities, the only right solution would be to form your own repair and construction team, which will specialize in carrying out various types of repairs to residential and public premises. If you start correctly and run the construction business correctly, the path from zero to a million in net income can be overcome in just 2-3 years. Tempting prospects, right ?!
Registration is a prerequisite
It is not easy to develop a business plan for a construction company from scratch, it is important to take into account the many nuances, features that will have to be faced during preparation, as well as directly, in the course of doing business. One of the most important conditions for achieving the set goals is work in the so-called "white zone". It's about officially registering as an individual entrepreneur or LLC at the very beginning of the journey. Concluding formal contracts with clients and paying the corresponding taxes will avoid many problems, such as fines from supervisory authorities or "discounts" from sly customers, unscrupulous clients.
Depending on the type of work performed (planned), it is necessary to take care of the availability of appropriate permits, allowing you to legally engage in business. For example, tolerances will be required for the production of electrical work, if necessary, the production of high-rise repairs, etc.
List of documents required for doing business