Construction work will always be present anywhere and anytime. Individuals and organizations build structures such as houses and buildings to use for residential and commercial purposes. Construction business is always in season so people who have a background in construction such as engineering, carpentry, or architecture may be interested to open their own construction company to earn more income and get more customers. If you’re planning to build a construction company, let it be known that one of the things you need to prepare is a business plan. The business plan serves as your foundation to help stabilize your business operations. Without it, it will crumble to the ground before you even get your return on investment. This article will help you on how to create a building construction business plan.
4+ Building Construction Business Plan Samples
1. Building Construction Business Plan Template
2. Building Construction Development Business Plan
3. Building Construction Investment Business Plan
4. Building Construction Company Business Plan
5. Building Construction Program Business Plan
What is the Importance of Construction?
The construction industry is an important sector since they contribute so much to the economic growth of a country. It has laid down the foundation of physical and technological innovation that widely developed to modern civilization resulting in creating various investment opportunities to various industries that are vital to the social and economic success of a nation.
Details to Include in a Building Construction Business Plan
1. Executive Summary
The executive summary should be the first section of your business plan and must not exceed more than a page. Here is where you will give an overview of your business plan. Include some important details here such as your business name and location, your personal information, your qualifications for running a construction business, your financial information, and the amount of money you need for operating your business (include this one if you’re submitting the plan to a lending company or an investor).
2. Long-Term Business Goals
The next section is where you state your business goals. When thinking of goals you want to achieve, make sure they align with the SMART goals format. Think of what path your business will begin, where you want to see your business in the future, and what construction services will you be expanding in the next three to five years.
3. Operations Plan Organizational Structure
This section is where you describe all the daily operations and other administrative processes of every department of your business. It should include the following details:
Attach an organizational chart where it maps out all the names of your employees, the positions they have and the responsibilities, they do, and to whom do they report to. Include a summary of each background and qualification.
4. Competitive Analysis
Include this section of competitive analysis. It must contain research from other construction businesses to know how their business is doing and how much do they charge for their services. The analysis must identify their strengths and weaknesses and using that information, compare how your business can compete with them. You can mention that you offer more construction services than your competition or that the cost of your services is way less compared to theirs.
5. Marketing Plan
The marketing plan is where you describe in detail all your marketing and promotion strategies to attract customers to hire you. Make sure that your marketing strategies must be based on your target customers. Your marketing promotions and advertising strategies may include:
- Word-of-mouth advertising
- Local service website advertising
- Social media outlets promotions
- Traditional media promotions such as print, radio, and TV
6. Financial Plan
The final section of your business plan is your financial plan. This is where you include all important information about your business finances and how you plan to manage them. Include the following information in the plan: your capital and budget, profit and loss statement, break-even analysis, projected cash flow, projected balance sheet, and the amount you’ll be asking from your investors or lending company. Explain how you came up with these projections.
What are the five types of building construction?
The five types of building construction are fire-resistive, non-combustible, ordinary, heavy timber, and wood-framed.
What is the building construction process?
The building construction process usually follows this pattern:
- Prepare the construction site and build its foundation
- Complete rough framing of the building
- Complete the installation of plumbing, electrical, and HVAC systems
- Install insulation
- Complete drywall and interior and exterior finishes
- Finish interior trim, install exterior walkways and driveway
What are the four phases of construction?
The four phases of the construction process are planning, preconstruction, construction, and close-out
A business proposal must be well-written for it to be an efficient guide for you to run your construction business so take your time in brainstorming, drafting, and editing it to ensure its contents are accurate and written clearly. You may ask for help from a colleague to help you create and edit your business plan. To help you get started on making a building construction business plan, download our free sample templates provided above to use as your reference!
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