Capital investment in a construction company: RUB
14,600,000 Payback period: 18-30 months
Profit rate: 25-30%
At any time, construction will be a demanded service, the demand for which is growing every year.
But, as in any other business, there are some nuances here, so at the first stage it is important to draw up a competent business plan for a construction company.
And to compile this important document, you can use the services of experienced economists and lawyers, but it would still be more correct to try to figure out all the points on your own.
Of course, you need to turn to specialists, since the construction business, in addition to profitability, is also characterized by high and rather tough competition, so the slightest mistake will cost you a lot of money.
Construction Company Business Plan: Project Planning
Any business plan for a construction company starts with planning.
At this stage, you need to decide on the goals and types of work that you will do, as well as how you will promote your business in order to find customers.
When drawing up a business plan, you need to specify the following parameters: where, who and why opens a construction company.
Among the presented goals and objectives of your company may be:
- provision of various construction services to individuals and legal entities;
- direct profit from the activities of the construction company;
- creation of a company with high profitability;
- provide employment for the population.
Services that a construction company can provide
In order for the established construction company to recoup the invested funds in the shortest possible time, it is necessary, in addition to the construction of buildings and structures, as well as standard work, to provide a wider range of services.
This may include the following:
- delivery of building materials to the object itself;
- painting, plastering, painting works;
- decoration and cosmetic repairs of premises;
- design and engineering;
- plumbing and electrical work.
But this does not mean that you first need to grab all sorts of services.
In any case, experienced builders recommend focusing on the quality of work.
And over time, as the scale of your construction company grows, you will be able to expand the list of work performed.
Currently, the construction services market is in high demand.
Experts note that customers order not only the construction of buildings, but are also looking for companies that can eliminate and correct the mistakes of the past.
In addition, the high demand is justified by the fact that there are many buildings in the post-Soviet space that require not only major repairs, but even dismantling.
And in large cities, the construction of business centers and shopping and entertainment centers is in demand.
It is also worth noting that customers will not build and repair premises on their own, so consumers need both construction companies with a developed infrastructure and highly qualified employees.
A special niche is the owners of apartments in new buildings.
They are looking for experienced builders who can be trusted with the design of objects and, of course, their implementation.
In order to develop in this industry, your company must follow product and technology innovations in the construction market.
Finding an office space
The business plan of a construction company provides for the search for premises and their equipment. It is important to make a good repair on it, so as not to be a “shoemaker without boots.”
From furniture and office equipment you will need:
- table and chairs;
- file cabinet;
- Personal Computer;
- printer and fax.
Cleaning company business plan
Procurement of the necessary equipment and tools
To start a large company, your business plan must include the purchase of your equipment and tools.
These will be:
- concrete mixers;
Here you need to hire only highly qualified personnel who will guarantee the quality of construction work.
First of all, you need to form a team, which will include masons, finishers, electricians, plumbers, carpenters.
As the business expands, you will need masons, drywall workers, window installers, roofers.
By the way, having a designer and architect on staff is not only convenient, but also profitable.
There should also be office staff: a secretary, a lawyer and an accountant.
At the initial stage, the last two can not be hired, but simply resorted to their services for a fee.
If you do not promote your construction company, you are unlikely to find your customers.
It can be both people in need of construction and repair of private houses, and various companies.
Therefore, you can use the following advertising methods:
- first of all, create your official website and, if you want, social media accounts.
Place there all the necessary information, types of services and price list;
- distribute business cards and brochures at the points of sale of building materials, as well as to your friends;
- put up billboards and banners around the city, as well as contact local print media;
- advertising on local radio.
Also an important point that will emphasize the importance of your company is the development of your own logo and the production of a uniform for the team.
Business plan for an advertising agency
Registration of a construction company and entry into an SRO
Depending on the services provided and the size of your construction company, you can choose the legal form.
It can be a sole proprietorship (IE) or a limited liability company (LLC).
Then select the taxation system: UTII, patent or simplified system.
The last option is the best for you.
Since 2010, licenses for construction and repair work have been canceled, but instead of registration, it is necessary to join a self-regulatory organization (SRO).
This process does not apply to the construction of houses from 1 to 3 floors, minor repairs and installation of light products.
Construction company business plan: project implementation
Calendar plan for opening a construction company
With proper planning, the implementation of the project will take about four months, during which you will have time to register your business, find a good office, purchase all the necessary equipment, hire qualified personnel and open an advertising company.
A faster implementation of the business plan of a construction company can be achieved if each stage is individually responsible to the people involved, who will approach this matter responsibly.
|Join the SRO|
|Find office space|
|Purchase of equipment|
|Publicity and promotion|
Construction company business plan: financial aspect
Calculation of opening costs
When drawing up a business plan for a construction company, an important role is played by the calculation of financial indicators, namely the initial capital investment.
The “lion’s” share of investments falls on the purchase of equipment and machinery.
As an option, there is an option to rent it out, but this is impractical, since the expenses for the year will amount to a large amount compared to the purchase amount.
|Item of expenses||Amount, thousand rubles|
|Registration and permissions||60|
|Tickets to SRO||500|
|Repair and purchase of office equipment||200|
|Acquisition of the necessary equipment and machinery||12000|
|Buy a car (Gazelle)||400|
|Advertising and tailoring for the brigade||300|
|Total:||RUB 14,660 thousand|
Thus, to implement the business plan of a construction company, more than 14,600,000 rubles will be required.
This amount is approximate, as some items of expenditure may be even higher.
Monthly expenses for running a construction business
In addition to capital investment, your construction company needs funding to stay in business.
Indicative figures can be found in the table:
|Item of expenses||Amount, thousand rubles|
|Rent of offices and warehouses||70|
|Salary of office workers||120|
|Team salary (based on 15 people)||700|
|Utility bills and fuel||25|
|Total:||930 thousand rubles|
Thus, about 930 thousand rubles will have to be spent on monthly expenses for doing business.
This amount is also significant, since most of it falls on the salary of the brigade.
Business plan for a construction company: calculation of income and profitability
Before talking about the return on investment and the profitability of your business, you need to predict the number and cost of orders received.
Below is the approximate cost of works and services:
|Development of an architectural and construction project and|
individual design solutions for apartments and houses
|Affordable housing reform||200 000|
|Luxurious renovation||500 000|
|Building a house (hut)||2,000,000|
|Reform of commercial premises||400 000|
For example, if you receive a monthly income of 1,500,000 rubles, you can earn the following earnings:
1,500,000 – 930,000 \u003d 570,000 rubles.
The income tax is 15% (if you choose the simplified tax system), and then the profit per month will be 484,500 rubles.
According to these approximate figures, you can understand how quickly it is worth opening a construction company.
And it will be about two and a half years.
But this period may well be reduced to one and a half years, if most of the orders fall on the spring-summer period, when the population prefers to make repairs.
The approximate level of profitability is 25-30%.
But, unfortunately, in winter it can drop to 15%.
This is due to the fact that during this season the number of orders decreases.
How to run a construction business and what are the responsibilities of a business owner,
said in the video:
Risks and difficulties of the construction business
In addition to the financial calculations that you include in the business plan of the construction company, you need to calculate the possible risks.
So, they include:
- high level of competition;
- unqualified personnel and human factor;
- rising prices for building materials and equipment;
- lack of orders;
- tricks of competitors
The construction business is quite profitable, but at the same time it is a difficult business that requires huge profits not only from the owner, but also from the employees themselves.
In the end, it will depend on your work whether customers will be satisfied.
But still, a well-written business plan for a construction company is already half the key to success.
And then you can not only return the invested funds, but also increase them.