The responsibility of project managing any construction company job is hugely challenging, and it is the only factor that can make a difference in getting a business plan. Imagine managing budgets, and deadlines, keeping clients, and ordering resources all at once. What time do you have to find more leads or organize your finances? A construction business plan is what keeps you sane and ensures you keep building your business to its full potential. This article will further explain the essence of a construction company business plan and why you need a sample template when creating one.
To avert the stress of composing a business plan by yourself, you can also choose to make use of our ready-made construction business plan.
What is a Construction Business Plan?
A construction business plan is a living document that can help you with planning your finances, organizing a business project, having a stress-free operational strategy, and also knowing your customers. A business plan can perform a whole number of other functions that you didn’t think were possible in your construction company.
Although you might believe that having the right knowledge of your company is the only important thing that can keep your construction business going, a proper business plan is equally important. If you wish to operate a less chaotic business, then get a business plan. But for this to happen, you need to read on and discover how you can write a business plan.
Things to Consider Before Writing a Construction Company Business Plan
Before getting down to writing your business plan, you need to consider a few sample points that your construction company’s business plan will need.
#1. Licenses and Permits
Before writing, you will need to do research on the necessary licenses and permits that your business needs to become official. These permits can differ from state to state, so it is best to get a list of the legal documents you might need before you start up your business.Â
#2. Workforce and Equipment
You will also need to get a list of the equipment your business will need to function effectively. Before writing your business plan, don’t forget that your construction company needs a skilled workforce that can help make a project deal happen. So it is best to source the best because they also determine the reputation of your business. You will also need to introduce your workforce while writing your business plan.
#3. Target Audience
A target audience is essential for any business to boom. Before you start, take your time to research your target audience and their preferences. As a construction company, knowledge about your target audience comes in very handy when you are pitching a project and writing a business plan. Hence, try to get in-depth information about them.Â
#4. Discover Safety Requirements
A construction site is mostly prone to accidents, so before you start up a construction business, you need to inquire about the tools. Take measures that will ensure the safety of your workforce while on the construction site. These actions will help you avoid accidents and injuries.Â
How to Write a Construction Business Plan
Some important sections should not be left out when writing a good construction business plan. Let’s analyze the contents of these sections.
#1. Executive Summary
The executive summary consists of an overview of all the major sections of your business plan. It is more like a summary of what your business plan is about. This section should be the first page of your business plan because it is the most important section, especially if you are looking forward to getting your business funded. Make sure to get all-around information on your mission statement, management team, marketing analysis, and financial plan.
#2. Mission Statement
Your mission statement should be a clear and concise overview of your business and the goals you are hoping to achieve. It gives your reader an immediate understanding of what your company is about. While writing this section, make sure to include a summary of the business, mission statement and goals, and objectives.
#3. Market Analysis
Before filling up this section, you must have conducted thorough research on your market to know their preferences and understand the industry. Write about your findings in this section. This includes its strengths, weaknesses, and competitors. Ensure that you include your industry analysis, market trends, and market segmentation in this section.
#4. Management Team
In this section, you will give a brief introduction to your workforce. You should include the company’s organizational structure and skills. Onboarding clients or inspecting construction projects can be their roles and responsibilities. If you feel any need for an additional skill, then you can add it in this section and indicate how it will benefit the company.
#5. Products and Services
In this section, you will have to give detailed information on the type of services your construction company offers. You will also explain how your selected products and services will benefit clients. Also indicate the research you have done for the services you will be providing.
Read Also: Starting A Construction Company UK: Step By Step Guide
#6. Marketing Plan
To attract customers and get constant sales, you need to have a marketing plan. You will need to advertise your business, products, and services. This will help create awareness for your brand and attract potential customers. When reaching out to your target audience, make sure to stand out from your competitors and be one step ahead of them. Get creative to make your company appear different and unique from a regular construction company, get creative.
To advertise, you can use social media platforms or fliers. In summary, your marketing plan should contain a description of your services, marketing strategy, advertising strategy, and sales strategy.
#7. Financial Plan
A well-composed financial plan is an important factor in running a successful construction business. Your financial plan is one section of your business plan that requires attention. It should include your profit and loss statement, balance sheet, and projected cash flow. If you are looking for a startup fund, you can include how much your business will need for it to be operational.
#8. Appendix
Lastly, your appendix should include supporting documents and materials that will validate the information you provided in some sections of your business plan. They can be credit histories, resumes, licenses, permits, and other related legal documents.
Construction Company Business Plan Sample Template
Starting a construction company business plan comes with loads of responsibilities and to curb them, you will need a sample template. This construction business plan template checklist will help keep your activities in check while reminding you of the ones that are yet to be completed. While strategizing for your new business, always check out this list to see what you are missing out.
- Raise capital
- Pick a niche
- Create your business plan
- Get a license
- Get a winning team
- Advertise your business
- Get customers
Need Help With Your Construction Business Plan?
How far have you gone with creating your business plan? Does it seem too tough to maneuver? Don’t fret, it’s no big deal. It is normal to experience some level of difficulty while trying to write a business plan, especially when it is your first time.
Why don’t you opt-in for a ready-made construction business plan to save yourself this stress? At BusinessYield Consult, we have helped entrepreneurs like you create professional business plans for their new startups. Get your unique plan here and kick off that business.
Final Thoughts
If you have plans to grow your construction company into an empire, then having a business plan is a good way to start. One cannot emphasize enough having a plan that can deal with all hiccups your business goes through and yet sets out a clear road map that will lead you to success. So if you want those throbbing goals you have for your company to manifest, then go ahead and start planning.
FAQs
What are the main sources of revenues and expenses for a construction company?
Most construction companies get their source of revenue from individual contracts. They may require new homes, remodelling projects, or commercial projects. And expenses are mainly based on their office space rent, paying salaries to workers, and buying equipment.
How do you get funding for your construction business plan?
To get access to the funding, you can either go through bank loans, personal loans, commercial loans, or a line of credit. If you don’t wish to take loans, you can ask for funds from angel investors or use your savings. When you get lucky enough, you can benefit from funding opportunities that mostly cover necessary tools, machinery and other equipment.
What are the main types of construction companies?
Most construction companies are rather classified by the type of services they perform for clients. Some construction companies are new home builders, some are renovation contractors and others are commercial construction companies.
