If you have the right knowledge and skills for getting into construction, you might have thought of starting your own construction business at least once.
After all, having your business can give you authority and the freedom to work with your dream clients and it is a lucrative business for sure.
But at the same time starting and running a construction company is no mean feat and takes a lot of work and accountability.
So, to help you through your daily business activities and long-term business goals you’ll need a construction company business plan. A business plan makes your life easier and lets you focus on what really matters in your business.
Industry Overview
The US construction industry stood at a market value of 1.36 trillion dollars in 2020 and was expected to decline in 2021. But instead, it experienced a wave of recovery and continues to grow even now.
The major reason for the growth of the construction sector is the resumption of construction projects, be they residential or commercial. Also, new projects keep coming up due to the rapid urbanization and increasing need for space all around the country.
However, before you dive right into it, you should plan it, down to the last detail. A business plan would help you in avoiding roadblocks and failures. It would act as a guide that would help your company rise as high as the skyscrapers you build.
If the above idea sounds interesting, read on to find out how a business plan can help you and how to write a construction company business plan.
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Things to Consider Before Writing a Construction Company Business Plan
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Get the necessary licenses and permits
A construction business requires several permits depending upon the state you are working in and a few documents that are common all over the country. The main reason behind this is the nature of the work that requires proper attention to safety requirements.
But getting all the legal documents can look like a lot of work, especially when your business is going on in full swing. Hence, it is a better practice to make a checklist of all the necessary documents and get them before getting started.
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Figure out the safety requirements
Safety requirements are another crucial aspect of starting a construction business. Figure out what tools and measures you’ll need to have to ensure the safety of your workforce and other people on construction sites. It helps you avoid accidents and injuries that can be prevented by taking necessary measures.
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Get the right workforce and equipment
A skilled workforce is the biggest asset of your construction firm. They can make or break a deal, and also decide what kind of reputation your business would have in the construction industry. Hence, it is important to hire a skilled workforce and make sure they get the right equipment to work with.
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Know your target audience
Knowing your target audience and their preferences is crucial for any business. As a construction company, knowledge about your target audience comes in very handy when you are pitching for projects. Hence, try to know all the relevant things about your target audience.
How can a construction business plan help you?
Though you might believe that having the right knowledge of equipment and personnel is the only thing important for running a construction business, good business practices and a proper business plan are equally important.
A business plan can help you in planning your finances, organizing your business structure, having a hassle-free operational strategy, and knowing your customers better. All in all, it can make your life less chaotic and run your business smoother and easier.
So if you want to conduct your business smoothly, read on to find out how to write a business plan.
Write Your Business Plan
A good construction business plan consists of several different aspects that are common to all business plans and several that are specific to a construction business.
And though writing a business plan might seem like a time-consuming process initially, it can save you a lot of time and trouble later on. To write a well-rounded business plan you can either use a premade template or an online business plan software, that would help you write a flexible and dynamic plan.
Before you start writing your business plan for your new construction company, spend as much time as you can reading through some samples of real estate business plan templates.
Our sample construction company business plan can help you with writing a well-rounded business plan for your business. It can act as a guide and prevent you from getting stuck in a certain section for too long.
Construction business plan outline
This is the standard construction company business plan outline which will cover all important sections that you should include in your business plan.
- Executive Summary
- Mission Statement
- Management and Personnel
- Marketing
- Financing
- Mission Statement, Goals, and Objectives
- Business Overview
- Mission Statement
- Goals & Objectives
- Goal 1
- Goal 2
- Market Analysis
- Industry Analysis
- Market Trends
- Business Fit in the Industry
- Management and Organizational
- Structure
- Organization
- Management
- Roger D.
- Paul D.
- Diane D.
- Hiring Plan
- Risk Management
- Record-Keeping Functions
- Accounts Payable
- Payroll
- Marketing Plan
- Description of Product and Services
- Features and Benefits
- Quality
- Efficiency
- Affordability
- Life Cycles/Seasonality
- Marketing Strategies
- Location/Distribution
- Price/Quality Relationship
- Promotional Strategies
- Financial Plan
- Projected Profit and Loss
- Projected Cash Flow
- Projected Balance Sheet
What to include in a Construction Business Plan?
A good construction business plan consists of several sections, the major ones are as follows:
1. Executive Summary
The executive summary section forms the first page of your business plan and is the most important one to get you funded.
It consists of an overview of all the major sections of your business plan, and a good executive summary would help you win an investor’s confidence and get your business funded.
It summarizes the following sections:
- Mission Statement
- Management and Personnel
- Marketing
- Finance
2. Mission Statement
A clear and concise mission statement helps your clients resonate with your company and business idea. It gives out a clear message of what values you stand for as a company. Hence, writing a good mission statement is important for the success of your business.
It would consist of the following sub-segments:
- Mission Statement
- Business Overview
- Goals and objectives
3. Market Analysis
Analyzing the market comes in handy while making several business decisions as it helps you in knowing the market and the industry better. It helps you in understanding the pitfalls of your business, its strengths as well as what your competitors are doing.
It would consist of the following subsections:
- Industry Analysis
- Market Trends
- Market Segmentation
4. Management and Organizational Structure
This section would include details about your company’s organizational structure as well as the levels of management of your firm. You must also include your firm’s work as well as the roles and responsibilities of your team members in this segment.
For example, you should include which person is responsible for onboarding clients, who are responsible for dealing with architects and hiring construction workers, who are responsible for overlooking the construction process, etc.
It would consist of the following sub-segments:
- Organizational Management
- Record keeping
- Risk management
- Hiring plan
5. Marketing Plan
A good marketing strategy makes you memorable for your clients. It helps you reach out to your target audience, creates a brand image, and makes you stand out from your competitors.
A well-rounded marketing plan consists of the following sub-segments:
- Description of services
- Marketing strategy
- Advertising strategy
- Sales strategy
6. Financial Plan
A good financial plan is key to running a successful and profitable business. One cannot emphasize enough on planning your finances in the initial stages of your business, it helps you immensely as your business experiences growth or setbacks.
A financial plan decides the measure of your business’s success, and a good one consists of the following aspects:
- Projected profit and loss
- Projected balance sheet
- Projected cash flow
Download a sample construction company business plan
Need help writing your business plan from scratch? Here you go; download our free construction company business plan pdf to start.
It’s a modern business plan template specifically designed for your construction company business. Use the example business plan as a guide for writing your own.
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Construction Business Plan Summary
In conclusion, a good business plan can help your construction company prosper. It can help you deal with all the hiccups your business goes through and set out a clear road map for your business journey. So, if you want to start a construction company, go ahead and start planning.
After getting started with Upmetrics, you can copy this construction business plan example into your business plan and modify the required information and download your construction company business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.
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