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Construction Contractor Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful construction contractor business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your construction contractor business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a construction contractor business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your construction contractor business concept into reality. Let’s dive in!

Our construction contractor business plan is meticulously structured to include all essential aspects necessary for a robust strategy. It outlines the company’s operations, marketing strategy, market environment, competitors, management team, and financial projections.

• Executive Summary : Presents an overview of your construction contractor business concept, including market analysis , management structure, and financial strategies.
• Company Information: Describes the company’s foundation, areas of expertise in the construction industry, and the operational standards that define the business.
• Services : Details the comprehensive range of construction services offered, from residential building to commercial projects, including any specialized services such as eco-friendly constructions or renovations.
• Target Market : Outlines the specific demographic and geographic segments the company aims to serve, emphasizing any particular needs of these markets like affordability, durability, or luxury finishes.
• Key Stats: Provides statistics on the construction industry’s size and growth trends relevant to your market area.
• Key Trends: Identifies significant trends affecting the construction sector.
• Key Competitors: Evaluates primary competitors in the area and outlines your competitive advantages.
• SWOT : Conducts a Strengths, Weaknesses, Opportunities, and Threats analysis.
• Marketing Plan : Outlines effective strategies for attracting and retaining clients.
• Timeline : Lists key milestones and objectives from the start-up through the initial years of operation.
• Management: Shares information about the management team, detailing who manages the company and their respective roles.
• Financial Plan: Forecasts the company’s 5-year financial performance, including revenue, profits, and significant expenses.

Construction Contractor Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your construction contractor’s business plan, offering a concise overview of your company and its services. It should detail your market positioning, the range of construction and remodeling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your construction business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your company’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your construction business’s financial plan.

Construction Contractor Business Plan Executive Summary Example

Business Overview

When detailing the  business overview  in your executive summary, it’s crucial to provide clear and concise information. This includes the name of your construction company, its location, and an overview of the types of construction projects you undertake.

These details not only introduce your business but also set the stage for its unique qualities. Indeed, a  unique selling proposition  ( USP ) is what sets your construction company apart from the competition. Whether it’s your expertise in green building practices, your use of cutting-edge technologies like BIM, or your focus on client-centric service, your USP should be a focal point of your executive summary. It’s what captures the interest of your audience and showcases the unique value your business brings to the market.

Example: For instance, “Superior Builds,” located in the industrial hub of Metro City, operates from a well-equipped office on Builders Lane. Established in 2010, they specialize in commercial and residential projects, incorporating sustainable building practices and advanced technologies such as BIM. Their USP is their commitment to eco-friendly construction methods, which not only appeal to environmentally conscious clients but also provide long-term value through energy efficiency.

Market Overview

Understanding and presenting the  market size , growth trends, and industry dynamics are integral parts of the  market analysis . This section should highlight the potential of the U.S. construction market, backed by relevant data like market value and growth rates. Discussing industry trends, such as the adoption of green building materials and BIM, provides insight into the evolving landscape and where your construction company fits within it.

Equally important is the competitive landscape. Your executive summary should identify  key competitors  and explain how your construction company positions itself in this environment. Whether you focus on specialized construction services, superior project management, or innovative construction solutions, this is your opportunity to showcase how your company is poised to stand out in a crowded market.

Example: Consider “Superior Builds” within the general contractor industry, part of a $112 billion market. Despite intense competition from 493,728 companies nationwide, “Superior Builds” differentiates itself by focusing on sustainable building solutions and advanced project management using BIM, catering to a growing segment of the market that values environmental responsibility and efficiency.

Management Team

The management team’s background and expertise are significant assets to your business. In your executive summary, highlight the key qualifications and experiences of your team members.

This might include the CEO’s extensive background in sustainable construction or the CFO’s expertise in financial management within the construction industry. Demonstrating the team’s expertise not only builds credibility but also assures potential investors and partners of your construction company’s capability to succeed.

Example: At “Superior Builds,” the team is led by CEO John Carter, a pioneer in green construction with over 20 years of industry experience, and CFO Linda Smith, who has a robust track record of managing finances for large-scale construction projects. Their combined expertise ensures the company’s strategic positioning and operational efficiency.

Financial Plan

The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your construction company’s financial trajectory.

Example: “Superior Builds” aims for $16 million in annual revenue by 2026, with a profit margin of 7-20%. The financial strategy includes leveraging high-profile, sustainable construction projects and expanding into new markets, with sales growth driven by a strong reputation and strategic partnerships, positioning the company for profitability and industry leadership within the next few years.

For a construction contractor, the Business Overview section can be concisely divided into 3 main slides:

Company Information & Location

Our construction company specializes in handling diverse projects, including residential, commercial, and industrial builds. Located strategically near major transport hubs, our headquarters offer easy access to key construction sites, providing logistical benefits and enhanced service delivery to our clientele.

Services & Specialization

We offer a comprehensive range of services from general contracting to specialized projects like energy-efficient constructions. Our expertise in custom designs and turnkey solutions sets us apart in the industry, ensuring high-quality project management and client satisfaction.

Target Market

Our target market includes homeowners, real estate developers, and public sector contracts. We cater to clients seeking reliable, high-quality construction services, with a focus on innovation and efficiency to meet the unique needs of each segment, ensuring we are the go-to contractor for diverse construction demands.

Industry Size & Growth

In the Market Overview of your construction contractor business plan, start by examining the size of the construction industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable building practices, energy-efficient homes, and smart technology integration in construction. For example, highlight the demand for green building certifications and the rising popularity of renovations that focus on improving energy efficiency.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your construction contractor in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your construction contractor’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Construction Industry

The initial step in a competitive analysis is recognizing who your competitors are. Start by identifying other local construction contractors, especially those who specialize in the same type of projects as your business, such as residential building or commercial renovations. Also, consider larger construction firms and indirect competitors like DIY stores or prefabricated building suppliers.

Utilize tools like Google Maps for a geographical overview of where competitors are located. Platforms like Yelp and Angie’s List can provide customer testimonials and ratings, giving you an insight into your competitors’  strengths and weaknesses . For instance, if multiple reviews praise the reliability and craftsmanship of “Quality Constructions,” this is a significant strength of your competitor.

Construction Competitors’ Strategies

To understand the competitive landscape, consider several factors:

• Project Portfolio : Review the variety of projects completed by competitors. If “Green Build Contractors” are gaining traction for their eco-friendly building solutions, it suggests a  market trend  towards sustainable construction.
• Building Techniques:  Evaluate the construction methodologies used. A contractor like “Heritage Builders” that excels in restoring historical properties might attract a niche market compared to “Innovate Structures,” known for employing state-of-the-art building technologies.
• Pricing Strategy :  Compare your pricing with that of your competitors. Are your services priced competitively with “Budget Builders,” or do they align with the high-end services of “Elite Constructions”?
• Marketing Tactics:  Examine how competitors market their services. Do they leverage robust digital  marketing strategies , or do they depend on referrals and local advertising?
• Customer Relations : Assess the quality of customer service offered. For example, “Client-Centric Constructions” may be favored for its customer-focused approach and excellent project management.
• Operational Efficiency:  Notice if competitors use advanced technology or innovative practices to enhance efficiency, such as “Streamline Construction” with its integrated project management software.

What’s Your Construction Contractor’s Value Proposition?

Reflect on what makes your construction contracting business unique. Perhaps you are known for your rapid turnaround times, or maybe you specialize in luxury residential renovations that are unmatched in your region.

Identify market gaps through client feedback and industry trends. For instance, the increasing demand for smart homes and energy-efficient buildings might be a lucrative opportunity if competitors have not yet fully embraced this niche.

Consider your location: A contractor in a rapidly developing urban area might focus on commercial and high-density residential projects, while one in a more rural setting might specialize in custom homes and renovations that align with the local aesthetic.

First, conduct a SWOT analysis for the construction contractor , highlighting Strengths (such as advanced project management skills and a wide array of building services), Weaknesses (including dependency on the economic cycle and market competition), Opportunities (for example, growing trends in sustainable construction and smart home technologies), and Threats (such as potential economic recessions that may reduce investment in new construction projects).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, strong online presence, and community involvement. Focus on showcasing your company’s unique capabilities and successful project completions to build trust and credibility in the market.

Marketing Channels

Utilize various marketing channels to increase brand awareness, engage potential clients, and secure construction projects.

Digital Marketing

Embrace online platforms to expand your reach:

• Website Optimization:  Create a professional website showcasing your portfolio, client testimonials, and a blog featuring industry insights and project case studies. Implement SEO strategies to improve your website’s visibility in search results.
• Social Media Presence:  Utilize platforms like LinkedIn for professional networking, Instagram and Pinterest to showcase completed projects, and YouTube for construction project walkthroughs or tutorials.
• Email Marketing:  Build an email subscriber list by offering valuable content such as construction tips, project spotlights, and industry updates. Send regular newsletters to maintain engagement.

Local Advertising

Connect with your local community:

• Networking Events : Attend local trade shows, industry conferences, and business networking events to establish connections with potential clients, architects, and developers.
• Community Engagement:  Sponsor community events, participate in local charity initiatives, or offer workshops related to construction and home improvement to increase visibility and build trust.
• Print Media and Direct Mail:  Advertise in local newspapers, and magazines, or send direct mailers showcasing your construction projects and services to targeted neighborhoods.

Partnerships and Collaborations

Leverage collaborations to expand your reach:

• Industry Partnerships:  Collaborate with architects, interior designers, real estate agents, or suppliers to create referral programs or joint marketing initiatives.
• Client Referral Program:  Incentivize existing clients to refer your construction services by offering discounts or rewards for successful referrals.

Promotional Activities

Attract potential clients with enticing offers:

• Seasonal Promotions:  Introduce seasonal promotions like ‘Spring Renovation Specials’ or ‘Summer Outdoor Remodeling Deals’ to generate interest and urgency.
• Free Consultations:  Offer free initial consultations to prospective clients, providing insights and recommendations, showcasing your expertise, and building rapport.
• Limited-Time Discounts:  Create limited-time offers for larger projects or exclusive discounts for early project bookings.

Sales Channels

Deploy effective sales strategies to convert leads into projects and maximize revenue.

Consultative Selling

Develop relationships with potential clients:

• Client Education:  Provide comprehensive information about construction processes, materials, and project timelines to build trust and credibility.
• Tailored Proposals:  Customize proposals that address the specific needs and preferences of potential clients, showcasing your expertise and understanding of their project requirements.
• Project Add-Ons:  Suggest additional services or features that could enhance the value of the project during client interactions or proposal presentations.

Client Relationship Management

Focus on client retention and satisfaction:

• Post-Project Follow-ups:  Conduct follow-ups after project completion to ensure client satisfaction and address any concerns promptly.
• Referral Requests:  Ask satisfied clients for referrals and testimonials that can be used in future marketing efforts.
• Customer Service Excellence:  Prioritize exceptional customer service throughout the project lifecycle to foster long-term client relationships.

Technology Integration

Leverage technology for efficiency and convenience:

• Project Management Tools:  Utilize software or applications for project scheduling, progress tracking, and communication with clients to ensure transparency and efficiency.
• Online Project Quoting: I mplement online quoting tools or calculators on your website to provide quick estimates, streamlining the initial inquiry process for potential clients.
• Virtual Presentations:  Use virtual meeting platforms to conduct project presentations, share design concepts, and collaborate with clients remotely.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the construction business’s project completions, marketing initiatives, client relationship building, and expansion objectives, ensuring the business progresses with clear direction and purpose.

The Management section focuses on the construction contractor business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the construction contractor business toward its financial and operational goals.

For your construction contractor business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your construction contractor business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your construction contractor business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Construction Company Business Plan

Growing a construction company is much more difficult and taxing than completing projects.

From acquiring a new project to meeting deadlines, managing the budget, and many more things in between- you will find yourself drowning in responsibilities when you start a construction company.

A construction  business plan can come to your rescue in such burdensome situations. If prepared well, it can become a reference point for your company as it continues to grow.

Confused about how to write a business plan?

Well, this article will serve you perfectly. It will help you understand the contents of the business plan and offer a sample template for your construction company.

So let’s build a solid construction company business plan with this detailed guide.

Let’s dive right in.

Why do you need a construction company business plan?

Apart from the fact that investors and banks would ask for a business plan when you seek funding, here are a few more reasons you need a business plan.

• A business plan offers a roadmap to your business. It acts as a guiding block that has answers to all your how, when, where, and what.
• It helps in determining the exact target market for your business and formulating strategies to cater accordingly.
• There are millions of construction companies competing in the industry. You can identify your strengths through a business plan and design a competitive edge to stand apart.
• A well-rounded plan prepares you for emergencies that may arise in your business by making a plan for every situation.
• A whole lot of business processes repeat every day. A business plan helps bring consistency by establishing SOPs for various business activities.

And of course, you get your desired funding with a solid business plan that vouches for the potential of your construction company.

Key components of a construction business plan

Writing a business plan gets much easier with a structurally defined flow. Well, let’s have a look at key components that a construction company business plan must have.

Executive Summary: A brief summary of an entire business plan that will encourage the readers to read further.

Company Overview: A brief company description including every detail from company structure to its mission statement and future goals.

Market Analysis: A thorough analysis of the construction industry and your target market. It also includes sections for competitor analysis, future market trends, and scope of growth.

Construction Services: Outline the construction services that your company will offer. Highlight any additional services that will make you a distinct player.

Marketing and Sales Strategy: It includes a strategic plan to achieve success through marketing and sales. Determine the best course of action for your business.

Management Team: Introduce key personnel in managerial and leadership roles. Discuss their roles, qualifications, experience, and expertise.

Operations Plan: A detailed plan that streamlines the everyday operations right from construction methods to hiring employees.

Financial Plan: A financial plan highlights the prominent figures and key reports of your construction company by making necessary financial projections.

Let’s dive further into these topics and get a detailed understanding of writing your business plan.

How to create a construction company business plan?

A poorly written plan serves no purpose. However, with this step-by-step guide on writing construction company business plan, you will uncover every detail that goes into making a fantastic and purpose-serving business plan.

1. Write an executive summary

The executive summary is a concise yet insightful description of your entire business plan.

This one-page document summarizes the most important questions that a reader might have and offers a peek into what they are about to uncover. Investors take a brief glance at your executive summary before deciding whether to proceed further or not.

An executive summary must outline the following details of your construction business in persuasive consecutive paragraphs.

• The exact business opportunity
• The target market
• The problem and the solution to it
• Products and services offered by you
• Market size and growth potential
• Financial highlights
• Management team

Maintain a personal storytelling tone while writing this section and encapsulate every minute detail that can make a difference.

But wait, don’t start writing yet. Write your executive summary only after you are done writing an entire plan. This will help you summarize effectively.

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2. Prepare a company overview section

This section of a business plan will focus entirely on the details of your construction company.

From the type of construction company to the construction company’s goals- everything in this section is about your company description.

To begin with, highlight the type of construction business you will start. For instance, a residential construction company, general contracting company, industrial construction company, or specialty trade construction.

Clarify, if this will be a new business or an extension of existing business. If the business is already operating, offer a brief description of the business history.

After that, highlight the business structure of your construction company. Are you going to be a sole trader or start a limited liability company (LLC) or a limited partnership firm? The business structure you choose will decide how the finances and taxes will work in your business.

Now, this section is your chance to weave magical stories around your construction company. Present the mission statement, company’s objectives, and future goals over here.

For instance,

Mission statement : Syncore aims to become a trusted name for sustainable residential construction projects in Arizona by 2028. With our commitment to the highest quality standards, we will penetrate the market with our premium budgeted solutions.

Business goals :

• Onboarding and signing 15 construction projects in a span of 6 months.
• Generating revenue of $2 million by 2025.

Like this, you will write this entire section in parts by offering a brief overview of your construction business.

3. Conduct a competitive and market analysis

In this section of a business plan, you begin with industry analysis and then narrow it down to your particular market segment. This is important to show your potential investors that there are promising opportunities in this market.

Using market research practices determine the target market for your construction business. Create a buyer persona to identify what your ideal customer will look like.

Further, highlight your competitors in this competitive construction industry. Using SWOT analysis and PESTEL, determine the strengths and weaknesses of competing construction companies. In this section, you will also highlight your strengths to gain a competitive edge over existing players.

Don’t limit your market study to merely understanding the current scenarios. Extend the research and identify future trends and growth possibilities in your targeted market.

If you are a residential construction company focused on sustainable building practices, you must include the following details in your market analysis section.

• How large is the construction industry?
• What segment of the construction market will you capture?
• Who will avail of the construction services?
• What is the spending capacity of your target customers?
• Who are the top competing construction companies?
• What are the emerging trends in the industry and how will you leverage those?
• What is the growth potential of your target market?

Focus on quality market research as this will form the base of your further projections and strategies.

This screenshot of the construction business plan example highlights only the market size for HDFL construction. You can also include details like competitors analysis, growth potential, and market trends here.

4. Describe your construction service offerings

What construction services will you offer your potential clients?

Offer a detailed answer to this question, as you write a business plan section for service offerings.

Overall, this section should highlight every service offering that will bring you money. This could include services like,

• General contracting services
• Design and Engineering
• Construction
• Renovation and remodeling
• Project management
• Specialty services i.e. concrete work, HVAC installation, Roofing services
• Maintenance and repairs

Offer a brief understanding of these service offerings and highlight construction jobs you will specialize in. For instance, remodeling of kitchen and bathroom.

Now, will your construction company sell any construction materials for profit? If so, include details for that as well.

It’s important to consider the breadth of your service offerings to keep the customers coming back.

Overall, this section is your chance to prove to potential investors that your services can stand solid in the competitive construction industry.

5. Propose marketing and sales strategies

According to the IBIS world report , there are more than 3,787,470 construction businesses in the USA. Starting a construction company will add one more to this list, but hey- How do you wish to make a brand that your target audience can recall easily?

All the market assessment and understanding of your potential clients will come in handy at this stage as you make your marketing plan and sales strategies.

Take an opportunity to lay out your sales plan in this section. If you have existing customers, explain how you plan to retain them.

After you are done making your sales strategies, touch the marketing aspect.

Firstly, identify the way you want your brand to be recognized- as an ordinary construction firm, a luxury construction company, a sustainable solutions firm, or an affordable construction company. This will help you make a marketing plan.

Your marketing strategy should answer the following questions:

• Which marketing channels will you use-  Online, offline, or a mix of both?
• How will you generate more leads?
• Online marketing methods- search engines, social media, Email marketing, content marketing, etc.
• If you are going to be utilizing social media platforms- which ones?
• How much will you budget for paid ads?
• Will you use billboards, pamphlets, and newspaper advertisements to market your business?

Keep in mind the marketing channels where you can find your potential customers. For instance, you are more likely to find conversions through Email campaigns than social media campaigns, if you are finding clients for commercial construction.

All in all, in this section you have to draw potential investors’ attention with your sales and marketing strategy.

6. Introduce your management team

Everyone is aware of the cutthroat competition in the construction industry. Knowing that you need an able team to transform your business plan into a successful venture.

After laying out your marketing strategy, it’s time to introduce the key management and leadership team to your business plan.

It’s okay to brag about the talented individuals you have in your company. From construction heads to project managers, highlight the achievements, experience, and expertise of these people and prove their asset-worthiness for your company.

Also, draw the hierarchical map to give potential investors an idea of your organizational structure.

This is your time to prove that you have both the means and manpower to run a successful company.

7. Outline your operational plan

You may know construction, but do you know how to run a construction business?

As someone said, “ Seamless operations are the silent engine of extraordinary business achievements”

Before even taking the first project, it’s important to define operations and SOPs for different business activities. Make it so thorough that it can act as a guidebook whenever a problem arises in your construction company.

As you write a business plan for this section, focus on answering the following questions:

• What construction materials will you use?
• What will be the supply chain process in your construction company?
• Who will oversee the project management on site?
• What will be the timeline for completing projects?
• What will be health and safety protocols for construction workers?
• What will be the process of construction work?
• How will the communication flow within an organization?
• What technologies and equipment will you use?
• How will you ensure quality work?
• How will you hire employees?
• What accounting software will you use?

This is just a general gist of questions that can help you prepare this section. Consider it as a living document that will undergo various changes as the business commences and grows.

A thorough operations plan will lay a clear groundwork for running a company. Moreover, it will instill investors’ faith in your ability to run a construction company.

8. Create a financial plan

Writing a sound financial plan is a challenge but nothing that your determined mind can’t handle.

Whether you plan to raise funds or get bank loans, you need a sound financial plan. Investors will analyze this section and only if they find your business financially viable, will they invest.

In this section, you will make financial projections and estimates for your construction company. This includes forecasting sales, estimating startup costs , projecting overhead costs, and making a pricing plan.

Using the startup costs projection, determine how much funding is essential to start your own construction company.

Also, prepare different reports like income statements, cash flow statements, balance sheets, and break-even analyses using the projections made earlier.

To make a financial plan more relevant, consider various progressive and aggressive situations.

Lastly, prepare graphs, charts, and diagrams to make this section visually appealing and easy to grasp.

Now, stop. Don’t start writing a financial plan yet. You need a financial forecasting tool from Upmetrics to help you with projections and calculations of cash flow, sales, revenue, and everything else. Simply enter the data and it will make detailed and precise calculations for you.

Trust us, you don’t want to scratch your heads writing the entire plan from ground level.

And that’s it! With all this information you pretty much know everything that a construction business plan must have.

Construction Industry Highlights 2023

Now that you are almost set to open a construction company, here are a few industry statistics that might interest you.

• Market size : The US construction market sector was valued at 1.8 trillion US dollars in 2022.
• Growth of the virtual construction market : The global BIM market is 7.9 billion US dollars . North America is projected to be a market leader capturing 30% of this market.
• Rise in prefabrication and modular construction : Healthcare facilities followed by hotels/motels and educational institutions are most likely to avail of modular construction facilities.
• Major concerns : The leading concerns encircling the construction industry are inflation and supply chain disruptions faced by nearly 90% of constructors.
• Sustainable and green building : There is a continuous increase in demand for sustainable and green building solutions. As for 2021, the green building market in the USA was reported to be approximately 83 billion dollars .
• Growing investment in smart cities : According to IDC, the investment in smart cities is expected to grow to 203 billion dollars by 2024.

From sustainability to tech-centric processes, the construction industry is making huge shifts in trends. Both, small businesses and large have to evolve according to changing times to keep themselves relevant.

Download a Sample Construction Company Business Plan

So, ready to create a construction business plan from scratch but need more guidance? Look no further; download our free construction company business plan pdf and start writing.

It’s an advanced investor-friendly template that has been crafted with construction businesses in mind. It comes with step-by-step instructions and examples to assist you in developing your own business plan. Use this sample business plan as a guide.

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Upmetrics is an intuitively designed business planning app with more than 400+ sample business plans . Our business planning tool features AI assistance that will transform your business writing process. Not only that, it allows you to design, collaborate, and share your business plan in real-time with your team.

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Frequently Asked Questions

What kind of market research should i include in my construction business plan.

The market research for your construction business plan must include the following details:

• The market size of your targeted market, i.e. commercial construction, residential construction, etc.
• The target audience of your services and their buyers’ persona
• Top competing firms and companies offering similar services
• Emerging trends in your market
• Growth potential for your firm

Is a SWOT analysis necessary for a construction company business plan?

Absolutely yes. There are more than a billion construction companies in the USA itself. Starting another business won’t guarantee success unless you have a business that can withstand the dynamic competitive environment. SWOT analysis will make you aware of the company’s strengths, weaknesses, and the opportunities it can avail

What are the initial startup costs for a construction company?

It is possible to start a construction company with as little as $10,000. However, if you plan to set up a mid-sized construction company, expect to spend anywhere around $50,000-$250,000 on getting a basic setup. This includes accounting for licenses, insurance, office setup, construction materials, and payroll for the initial months.

Can I get government grants for a construction business?

Yes, you can apply for government grants to start your construction business. Check the local, federal, and state regulations to see which grants are applicable to your business. Check the eligibility and apply accordingly.

How often should I update my construction business plan?

A business plan is a living document that can guide you toward success if mapped properly. Ideally, you should update your business plan every 4-6 months to make it relevant. Set aside time to do so as a renewed plan will offer deep and meaningful insight into your business goals.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

• Custom home building/design build
• Home remodeling and renovation
• Project Management
• Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

• Friendly and knowledgeable contractors who are able to take any project from concept to reality.
• Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

• Trucks: $40,000
• Construction equipment, supplies, and materials: $100,000
• Advertising agency in charge of promotions: $10,000
• Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
• Working capital: $10,000

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

• Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
• Located a small office space to have a physical address for the company as well as a receptionist.
• Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
• Began pricing out costs for trucks and necessary construction equipment.
• Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

• Households in search of home remodeling services
• Landowners who would like to build homes on their lots
• Architects who have clients that need home building or remodeling services
• Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

• Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
• Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

• Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
• Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
• Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
• Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
• Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Monthly Average Contract Amount: $20,000
• Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Construction Business Plan FAQs

What is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

• How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

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Construction Business Plan Template

Construction company business plan template.

If you want to start a construction business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow all types of construction businesses, including commercial construction, building construction and residential construction.

Construction Business Plan Outline: How To Write a Construction Business Plan

Below are links to each section of a construction business plan:

• Executive Summary – The executive summary is the most important part of your business plan. It’s where you explain what your business is and why it will be successful.
• Company Overview – This section of your construction business plan should include a brief business description, your vision and mission statement, and the company’s core values.
• Industry Analysis – This section of your plan will provide an overview of the construction industry, including market size, growth outlook, major players, and competitive landscape.
• Customer Analysis – In this section of your plan, you will identify and describe your target market(s).
• Competitive Analysis – In this section, you will analyze your competitors and explain how you plan to differentiate your company from them.
• Marketing Plan – Your marketing plan should include an overview of your marketing goals, strategies, and tactics.
• Operations Plan – Your operations plan should describe how you will produce your product or service, as well as the people and resources needed to do so.
• Management Team – In this section, you will introduce the members of your management team and their experience and qualifications.
• Financial Plan – Your financial plan should include your financial statements such as the income statement, balance sheet, and cash flow statement.
• Appendix – The appendix of your plan should include any additional supporting materials, such as market research reports, resumes, licenses and permits.

Next Section: Executive Summary >

Construction Business Plan FAQs

What is the easiest way to complete my construction business plan, where can i find a free construction business plan pdf download, what is a construction business plan, why do you need a business plan for a construction company, what are the sources of funding for construction businesses.

The main sources of funding for a small construction business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a construction business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will generally not fund a construction business.

How Do You Start a Construction Business?

What are the keys to success for a construction business.

• Vision & Focus: determine the type of construction business you want to operate and stick to that vision.
• Create your business plan: Your plan will help you set goals and outline how to achieve them.
• Get licensed, bonded, and insured: before you can bid on your first job, you need to investigate and meet the requirements for local and state licenses and do what you need to do to secure them, get your worker’s compensation and liability insurance, and find out how much you need to be bonded for.
• Build a winning team: Hire and train a team of employees with the right skills. Remember that since construction is seasonal and cyclical, you must also be willing to downsize if/when the workload decreases.
• Purchase wisely: be careful not to overspend on salaries and equipment. Consider renting equipment when possible.
• Properly price jobs: Keep factors such as overhead and actual production costs (materials, labor, inspections, etc.) in mind when pricing jobs to ensure a healthy profit on all projects.

CONSTRUCTION BUSINESS PLAN OUTLINE

• Construction Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Construction Business Plan Summary

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This Business Plan Template is Suitable For:

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• Business plans

Construction Company Business Plan

Used 4,997 times

The objectives and tactics of a construction company are described in a business plan for a construction company. For the creation of your business plan, use this Construction Company Business Plan Template.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

INTRODUCTION

This business plan is for a construction company that will offer a wide range of services to residential, commercial, and industrial clients. The company will be owned and operated by [Sender.FirstName] [Sender.LastName] , who has (insert number) years of experience in the construction industry.

COMPANY DESCRIPTION

​ [Sender.Company] will be located in [Sender.City] , [Sender.State] and will serve the surrounding area. The company will be registered as a(n) (LLC/Corporation) and will have (insert number) employees at the start, including the owner. The company will offer a range of services, including new construction, renovations, and repairs for residential, commercial, and industrial clients. The company will also offer project management and design services.

MARKET ANALYSIS

The construction industry is expected to grow at a rate of (percentage) over the next five years. The demand for construction services is driven by population growth, economic development, and the need to update and improve existing buildings. [Sender.Company] will target residential, commercial, and industrial clients in the [Sender.City] area, focusing on high-quality workmanship and customer satisfaction.

MARKETING STRATEGY

​ [Sender.Company] will use a combination of traditional and digital marketing techniques to reach potential clients. This will include advertising in local newspapers and industry publications, as well as utilizing social media platforms and email marketing to promote services and specials. The company will also rely on word-of-mouth referrals from satisfied customers.

​ [Sender.Company] will have a team of skilled contractors and tradespeople who will be responsible for completing projects promptly and professionally. The company will have a project manager who will oversee all projects and ensure that they are completed to the highest standards. The company will maintain a well-stocked warehouse with a variety of construction materials and equipment to ensure that projects can be completed efficiently.

FINANCIAL PLAN

​ [Sender.Company] will generate revenue through the sale of construction services to residential, commercial, and industrial clients. The company will also generate revenue through the sale of construction materials and equipment. The company will have operating expenses, including payroll, rent, utilities, and insurance. The company expects to generate (Amount) in revenue in the first year, with a projected growth rate of (Percentage) per year.

​ [Sender.Company] is well-positioned to take advantage of the growing demand for construction services in the [Sender.City] area. With a team of experienced contractors, a focus on high-quality workmanship, and a commitment to customer satisfaction, the company is confident that it will be successful in the competitive construction market.

​ [Client.FirstName] [Client.LastName] ​

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A construction business plan is vital for any businessman who wants to conduct a profitable venture in that particular field. It should include financial planning, marketing research, strategic planning , planning implementation, and evaluation. Your business plan will need to be regularly updated as well. It is a highly competitive industry out there, and you need mindful planning and execution to attract clients and boost your business. Here you find the best construction business plan templates .

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Step 1: Explain Your Business in Detail

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BUSINESS PLAN FOR THE SMALL CONSTRUCTION FIRM Management and Planning Series TABLE OF CONTENTS INTRODUCTION A Note on Using This Publication 1 What's in This for You? 1 Why Are You in Business? 1 What Business Are You In? 1

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Construction Business Plan PDF Free Download

How to Start a Construction Business - Free Book

Are you considering starting a Construction and you’re in need of a construction business plan PDF? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

Don’t Start a New Construction Business Unless You Watch This Video First!

Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template

The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a consulting firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

Here's what you'll discover in the 'How to Start a Construction Business' book:

Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

Click here! to download your Construction Business plan PDF book for free

Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Construction Business plan :

Introduction COMPANY NAME plans to become the leading provider of concrete formwork services in the area. This means always having the best and most efficient facilities, processes, and people. To achieve this, COMPANY NAME is investing in many ways that will pay off in competitive advantages for its customers. The company's overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress. COMPANY NAME is a California sole-proprietorship company established in 1991.  INSERT NAME leads the company team with over thirty years of experience in the concrete construction industry. Products/Services COMPANY NAME has developed sophisticated formwork solutions for some of the most complex construction projects being done today. The company's standard form systems are versatile and completely adaptable to a variety of configurations such as Y-walls, shafts, and circular walls. COMPANY NAME can adapt to almost any construction requirement that calls for forming. The company's expert staff has the capability to design and manufacture any custom component or accessory item that may be required to complete the formwork package. The primary function of the Company is to provide concrete and construction work for residential homes and commercial businesses.  The purpose of this plan is to attain grant funding in the amount of $300,000 to pay down existing short and long-term debt, upgrade equipment, purchase a metal building and to add additional employees to assist in the work demands.

1.1 Objectives

COMPANY NAME has the following objectives.

1. Work efficiently and effectively -  The company prides itself in doing the job right the first time. Completing work in a timely basis within budget. The Company has been in business since 2001 and guarantees the work.

2. Expand Territory - The Company currently works in the Ukiah, California area and is one of the largest in Mendocino County. The Company would like to expand to the surrounding areas and service more clientele.

3. Customer Service - Give our customers the highest quality service.

4.  Hire Construction Employees  - The Company wants to hire additional employees in 2010 and one in 2011. COMPANY NAME prides itself as a company people want to work for. The company will offer a fair hourly pay with benefits and pension plans.

5. Purchase Trucks and Equipment  - The Company wants to update the truck fleet and pay off existing debt on equipment.

1.2 Mission

The mission of COMPANY NAME is to provide quality service at competitive pricing.  COMPANY NAME wants to remain one of the largest concrete construction companies in Mendocino County and aims to expand to surrounding territories.

1.3 Keys to Success

V keys to success are:

• Over 30 years of experience in the concrete and construction industry.  
• An understanding of what must occur for the success of the project at time of completion as well as long term. 
• Have the well rounded knowledge and skill to successfully complete any project. 
• Guarantee of the company using the highest grade of materials available. 
• Proper staffing to complete jobs on a timely basis and within budget.

COMPANY NAME is a California based sole-proprietorship company formed in 1991. The primary function of the Company is to provide concrete and construction work for residential homes and commercial businesses. 

2.1 Company Ownership

The company, COMPANY NAME, is a sole proprietorship registered DBA by the owner, INSERT NAME.  Some thought has been given to incorporating COMPANY NAME, but a decision has not yet been reached.

2.2 Company History

COMPANY NAME was formed in the State of California in 1991. The Company was formed and owned 100% by INSERT NAME.  The Company is run by INSERT NAMES. 

COMPANY NAME consistently provides innovative quality products and services that meet builder and homebuyer expectations and satisfies all codes, regulatory and safety requirements.

From site preparation to the inspection of the finished slabs, COMPANY NAME highly skilled team delivers full value and service to projects large and small.

COMPANY NAME was founded in 1991 by INSERT NAME, a member in the community of Ukiah, California for 55 years. Dedicated to satisfying customers, INSERT NAME has created a successful company which serves Mendocino County and its surrounding counties. Together with his team of professionals they have poured thousands of yards of concrete. With over 30 years of concrete experience, many long working days, a supportive family, he continues to still be number one in Northern California in customer satisfaction and service.

Table: Past Performance

3.0 Services

COMPANY NAME can be adapted to almost any construction requirement that calls for forming. The company's expert staff has the capability to design and manufacture any custom component or accessory item that may be required to complete the formwork package. Owners, developers, construction managers, general contractors, and concrete subcontractors have realized substantial savings in labor and material costs by using structural contours construction methods, systems and equipment. Applications include commercial and residential structures, educational projects, recreational projects, civil projects, tunnels, utility projects, environmental projects, and virtually every other type of concrete construction. COMPANY NAME formworks will offer major advances, complete adaptability, and high strength-to-weight ratio, and all at cost effective prices. Assembly will be quick and easy. During form use, maintenance will be minimal. COMPANY NAME will recommend, as a safety precaution, occasional inspection for bolts and nuts that may have loosened from handling. The required formwork drawings that COMPANY NAME will furnish to the contractor eliminate all guesswork. The company will specify the order of assembly and erection including the location of the strong backs and joists, the location and actual loading of the form ties, location of all accessories and advise clients of the maximum allowable rate of concrete placement. Accident prevention is the cornerstone of COMPANY NAME safety commitment. The company will strive to eliminate foreseeable hazards which could result in personal injury or illness; at COMPANY NAME, health and safety will not be compromised. The company will sell its services clients in the area of commercial construction.

How to Use the Telephone More Effectively

The telephone is effective when used efficiently, sparingly, and within the framework of a plan. This list includes some tested guidelines for making the phone a tool that works best for you!

1. Know the purpose of your call.

Most of us talk on the phone too long. Have the purpose of your call clearly in mind before dialing. If helpful, write down a "statement of purpose", together with 3 main points you want to make on a scratch pad prior to dialing. Then "go for it"!

2. Know the audience you are calling.

Unless you're conducting "cold calling" for marketing or polling research, you probably know something about your "audience" on the other end. Think of the needs of the person/people you are calling. Then revise your "statement of purpose" accordingly prior to making the call.

3. Start off right!

State your purpose at the outset, and always ask if it is a good time for the other person to talk. If not, set a specific time to call back.

4. Use names whenever possible.

Identify yourself at the outset of each call. Spell it out, or sound it out, if necessary (e.g. I always tell people "My last name is Vuocolo; Vuh-co-lo; think "Coca-Cola!"). Establish the other person's name early in the conversation, and use it often throughout the call!

5. Pay attention and be aware of your tone.

Ask open-ended questions that invite response. Give the conversation your undivided attention - don't be tempted to do two or three things at once and expect it to be a productive call. Smile! This helps to make your voice sound friendly. If you're angry or anxious - put off the call until a later time, unless it's an absolute necessity to conduct it now.

6. Listen carefully.

Pay attention to the first words spoken by the person called. You can learn a lot in the first few seconds by listening carefully. Did you catch the person eating, arguing, gardening or partying? Decide whether to proceed with the call or to call back, depending upon what you hear in the background of the call. It's better to arrange to call back another time than to interrupt - and you'll probably get a better audience!

7. Avoid initiating major business, if possible.

Always save the most important business to be conducted in person, if possible. If not, make a careful transition from introduction to purpose of the call. Remember that a ringing phone virtually always interrupts the party being called - so give them time to adjust before hitting them with something major.

8. Avoid confrontation.

If you have bad news, or a difficult issue to discuss with someone, don't do it by phone unless it's the only way.

9. Be assertive - not aggressive!

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Construction Business Plan

Whatever construction work you do whether it be commercial construction, landscaping , maintenance or building construction, your services alone won’t be enough to attract investors and clients. With a business plan , companies will be able to attract potential investors to help get their company from the ground up. Construction companies in particular sometimes need investors to get their project up and running. How will they be able to do that? By presenting a construction business plan to them.

15+ Construction Business Plan Examples

1. construction management business plan.

• Google Docs
• Apple Pages

Size: A4 & US

2. Construction Repair Business Plan

3. Construction Manufacturer Business Plan

4. Construction Business Plan Example

5. Construction Start-up Business Plan

6. Construction Carpenter Business Plan

7. Simple Construction Business Plan

8. Sample Construction Business Plan

9. General Construction Business Plan

• Google Sheets
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10. Construction Company Business Plan Example

11. Sample Construction Business Plan

Size: 105 KB

12. Sustainable Construction Business Plan

13. Construction Program Business Plan

14. Business Plan For Construction Company

Size: 966 KB

15. Construction Plan for a Startup Business

Size: 710 KB

16. Construction Management Business Plan

Size: 141 KB

What is a Construction Business Plan?

A construction business plan is a blueprint for how a construction company runs their operations. It contains information about the company itself and the construction services it provides. This business plan also contains the goals of the construction company as well as the business strategies used to achieve them. Content of a construction business plan also include safety plans and business procedures. Like all business plans it serves as a guide for the construction company on how to navigate in the world of business.

How to Create a Construction Business Plan?

According to a recent graph by Statista, the total spending of the United States has been going upwards from 2011 onwards. This means a lot of money can go in your company’s way especially once you get a hold of investors through an impressive construction business plan.

1. Create an Introduction to your Business

Everything that is important has to have a proper introduction. To get started with your business plan you need to write an introduction about your construction business first. Similar to a proposal you need to make a formal and a good impression with your readers when presenting the plan to them. Write a summary of your company; how it started, what it does, and where they currently operate. Write about the services your business provides but don’t go into the details just yet. Make it intriguing enough to make your readers want to read on.

2. State The Truth

When you are writing your construction business plan always remember to be truthful. False claims on your business plan may impress your readers at first. But when the truth is uncovered it can result in your business having a bad reputation and that can spell doom for your company . So make sure all your words are facts that can be backed up.

3. Fact Check and Include Documentation

Keeping in line with the previous step, take the time to fact check all your statements . When you are stating things about your company especially when it involves money and confidential information, make sure they are backed up by concrete evidence. Provide documentation as well as further proof when you write about your projects in your business plan so that means including photos and construction blueprints.

4. Include Your Strategies

This step is especially important when you are a startup company. When making your construction business plan write about the strategies that you have in order to reach the goals of your company. You can write about your marketing and financial strategies for a start. Write about the assets you have that enable you to achieve your plans such as the general contractors you have under your employ for example. Making this part allows you readers to know how you plan on bringing your company up and whether you have the means to achieve it.

How long does it take to write a construction business plan?

Creating a well thought out business plan for your construction company can take months depending on the knowledge you have and the detail you dedicate into making it.

How long should a construction business plan be?

A well written construction plan should take about 15 minutes to skim. In that time you should be able to convey everything important about your construction company. If it takes longer to read try to rework your plan by making it less wordy.

Who is the one who creates the construction business plan?

People who have a key position in the construction company are the ones who should be involved in creating the business plan . Somewhat such as the founder or CEO should be the one who usually prepares it but they can also be assisted by consultants with relevant knowledge.

Your construction business plan serves as a written blueprint on how to run your company. Give it a lot of thought when you are writing it down especially when you are going to use it to attract investors . With a well made plan you will be able to get even the most hesitant investors to work with your company. And with their help the clients will also be drawn to the company leading to more business and profit.

Text prompt

• Instructive
• Professional

Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

Building Materials Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » B2B Industry » General Supply & Contracting

Are you about starting a building materials supply company? If YES, here is a complete sample building materials supply business plan template & feasibility report you can use for FREE .

There are several money spinning business opportunities in the construction cum real estate industry and one of them is to start a building materials supply business.

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• Why Does the Government Sometimes Use No-Bid Contracts?

Just like all other investment vehicles, there are potential down sides that you need to look out for if you want to start a building material supply business. One of the major risks in the building materials supply business is a sudden downturn in the economy.

Part of what you need to do to make headway in this line of business is to ensure that your store is strategically positioned and you have good business relationships with contractors, constructions companies and key players in the real estate industry.

A Sample Building Material Supply Business Plan Template

1. industry overview.

This industry consists of stores and dealers (e.g. lumberyards) that retail building materials such as lumber, stones and bricks.

This industry also supplies cabinets, floor coverings, roofing materials, electrical and plumbing goods, doors and windows to the construction market. The industry does not include home improvement centers, paint and wallpaper specialty stores or hardware stores.

If you are a close watcher of the Lumber and Building Materials Stores industry, you will agree that over the past five years, the Lumber and Building Material Stores industry has struggled to rebuild itself, even as the overall economy strengthens. Industry goods are purchased by professional contractors and consumers engaged in remodeling and construction projects.

Rising consumer confidence and household income have helped ignite remodeling activity forestalled during the recession, providing additional demand for lumber and other building materials used in home improvement projects. Even so, rising competition from large home improvement stores has stifled revenue growth for lumber and building material stores.

The Lumber and Building Material Stores industry is indeed a large industry and pretty much active in most countries of the world. Statistics has it that in the united states of America alone, there are about 45,069 registered and licensed building materials supply stores scattered all across the United States responsible for employing about 301,881 people and the industry rakes in a whopping sum of $107 billion annually.

The industry is projected to grow at 4.4 percent annual growth within 2012 and 2017. It is important to state that Builders FirstSource has the lion market share in this industry.

A recent report published by IBISWORLD shows that this industry sells a range of building materials such as lumber, fencing, glass, doors, plumbing fixtures and supplies, electrical supplies, prefabricated buildings and kits, kitchen, bath cabinets and countertops to be installed.

The industry’s major product categories are the following: Lumber and other structural building materials account for 37.8 percent of sales, lumber and they dominate the industry’s product mix.

The varying types of structural materials include dimensional lumber, non treated lumber, boards, engineered wood products, glue-lam and laminated veneer lumber, floor and roof trusses, connectors, joist hangers, tie-downs and framed wall panels.

The Lumber and Building Material Stores industry is highly regulated in the United States of America and anyone who aspires to start a building materials supply business must apply and obtain a license before they can legally operate in the industry.

Over and above, the lumber and building materials store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner or you can chose to start on a large scale with outlets in key cities through the United States of America and Canada.

2. Executive Summary

Harrison Anthony™ Building Materials Store, Inc. is a registered building material supply store business that will be located in one of the busiest streets in Oklahoma City – Oklahoma.

We have been able to lease a facility that is big enough (a 15 thousand square foot facility) to fit into the design of the kind of standard building material supply store that we intend launching and the facility is located in a corner piece building in the biggest building material market in Oklahoma City – Oklahoma.

Harrison Anthony™ Building Materials Store, Inc. will retail a wide range of building materials such as lumber and other structural building materials, hardware, tools, plumbing and electrical supplies, doors and windows et al. We are set to services a wide range of clientele in and around Oklahoma City.

We are aware that there are several building material supply stores all around Oklahoma, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online service option for our customers, and our outlet is well secured with the various payment options. Harrison Anthony™ Building Materials Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our building material store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are. We will ensure that we get our customers involved in the selection of brands that will be on our store and also when making some business decisions.

Harrison Anthony™ Building Materials Store, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Harrison Anthony™ Building Materials Store, Inc. is a family business that is owned by Harrison Anthony and his immediate family members.

Harrison Anthony has a B.Sc. in Business Administration, with over 5 years’ experience in the lumber and building materials industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Oklahoma City, but there are plans to open other outlets all around major cities in the United States.

3. Our Products and Services

Harrison Anthony™ Building Materials Store, Inc. is in the lumber and building materials industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of building materials from top manufacturing brands in the United States and other countries of the world.

We will do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;

• Retailing building materials
• Retailing doors and windows
• Retailing electrical supplies
• Retailing fencing
• Retailing floor coverings (wood or ceramic only)
• Retailing lighting fixtures
• Retailing plumbing supplies

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the building materials industry in Oklahoma and to establish a one stop building materials supply store in Oklahoma City and in other key cities in the United States of America.
• Our mission is to establish a world – class building materials business that will make available a wide range of building materials from top manufacturing brands at affordable prices to the residents of Oklahoma City and other key cities in the United States of America where we intend opening of chains of building materials supply stores.

Our Business Structure

Harrison Anthony™ Building Materials Store, Inc. do not intend to start a building material supply business on a small scale; our intention of starting a building materials business is to build a standard and one stop store in Oklahoma City – Oklahoma.

Although our store may not be as big as Builders FirstSource, but we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business. We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Customer Services Executive

Truck and Van Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountability; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of building materials are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with building material manufacturers
• Controls building material distribution and supply inventory
• Supervises the workforce in the building material sales floor
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure quality building materials are purchased and retailed in good price that will ensure we make good profit
• Responsible for the purchase of building materials for the organizations
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for increasing sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analysis, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization
• Assists in loading and unloading goods/building materials
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Inspects vehicles for mechanical and safety issues and performs preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make inquiries

6. SWOT Analysis

Our intention of opening just one outlet of our building materials store in Oklahoma City – Oklahoma is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major cities in Oklahoma and the United States.

We are quite aware that there are several building material supply stores all over Oklahoma City and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

Harrison Anthony™ Building Materials Store, Inc. employed the services of an expert HR and Business Analyst with bias in supply chain business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Harrison Anthony™ Building Materials Store, Inc.;

Our business is located in a city with heavy construction and real estate activities and also, we can boast of having good business relationship with top manufacturers in the building materials manufacturing industry.

A major weakness that may count against us is the fact that we don’t have our own building material production plant, we are a new building material supply store and we don’t have the financial capacity to compete with multi – billion dollars building materials supply stores when it comes to supplying building materials at a rock bottom prices.

• Opportunities:

The fact that we are going to be operating our building material supply store in one of the busiest building material markets in Oklahoma City, Oklahoma provides us with unlimited opportunities to sell our materials to a large number of individuals.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they order building materials from us; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power especially construction materials. Another threat that may likely confront us is the arrival of a new building material store in the same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the Lumber and Building Materials Industry, you will quite agree that the changes in disposable income, consumer sentiment, ever changing trends and of course the rate of home ownership are major growth drivers for this industry.

No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth.

So also, the rising demand for both building renovations, as a result of increasing disposable income and consumer sentiment will result in revenue growth, but profit margins will stagnate as building material supply stores keep prices low to attract more sales amid growing competition.

A close watch on industry activities reveals that, the retail market for building materials was hit hard by the economic downturn experienced in recent time. As part of marketing strategies, building material supply stores partner with key players in the construction and real estate industry. They are in the best position to offer you building material supply contract.

8. Our Target Market

We have positioned our building material supply store to service the residents of Oklahoma City – Oklahoma and every other location where outlets of our building material supply stores will be located all over key cities in the United States of America.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to supply a wide range of building materials to the following;

• Construction Companies
• Home Remodeling Companies
• Small Building Material Retail Stores

Our Competitive Advantage

A close study of the lumber and building material stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete with other leading building material supply stores in Oklahoma City and throughout the United States.

Harrison Anthony™ Building Materials Store, Inc. is launching a standard building material supply store that will indeed become the preferred choice for key players in the construction cum real estate industry. Our building material supply store is located in a corner piece property in the largest building material market in Oklahoma City – Oklahoma.

One thing is certain, we will ensure that we have a wide range of building materials available in our stores at all times. It will be difficult for customers to visit our store and not see the type of building materials that they are looking for.

One of our business goal is to make Harrison Anthony™ Building Materials Store, Inc. a one stop building material shop for customers at all levels. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harrison Anthony™ Building Materials Store, Inc. is in business to retail a wide range of building material to the businesses and residents of Oklahoma City – Oklahoma.

We are in the lumber and building materials stores industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. Harrison Anthony™ Building Materials Store, Inc. will generate income by;

• Retailing plumbing supplies.

10. Sales Forecast

One thing is certain when it comes to building material stores, if your store is well stocked with various types of building materials and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Oklahoma City – Oklahoma and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the lumber and building material stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Oklahoma City, Oklahoma.

• First Fiscal Year: $450,000
• Second Fiscal Year: $950,000
• Third Fiscal Year: $1. 9 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same building materials within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing and Sales Strategy

Before choosing a location for Harrison Anthony™ Building Materials Store, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for key players in the construction and real estate industry of Oklahoma City – Oklahoma.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the lumber and building material supply stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Oklahoma City.

In summary, Harrison Anthony™ Building Materials Store, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our building material supply store in a grand style with a party for all
• Introduce our building material supply store by sending introductory letters alongside our brochure to construction companies, plumbers, home remodeling companies and other key stake holders in Oklahoma City – Oklahoma
• Ensure that we have a wide range of building materials from different manufacturing brand at all times
• Make use of attractive handbills to create awareness and also to give direction to our building materials supply store
• Position our signage/flex banners at strategic places around Oklahoma City – Oklahoma
• Create a loyalty plan that will enable us reward our regular customers
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our building material supply store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our building material supply store.

Harrison Anthony™ Building Materials Store, Inc. has a long – term plan of opening outlets in various locations all around Oklahoma and key cities in the United States which is why we will deliberately build our brand to be well accepted in Oklahoma City before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Harrison Anthony™ Building Materials Store, Inc.;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms to promote our business
• Ensure that our we position our banners and billboards in strategic positions all around Oklahoma City – Oklahoma
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our building material supply store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to building materials stores, it is normal for consumers to go to places where they can get building materials at cheaper price which is why big player in the lumber and building material supply stores industry will attract loads of clients.

We know we don’t have the capacity to compete with multi – million dollar building material stores but we will ensure that the prices and quality of all the building material that are available in our store are competitive with what is obtainable amongst building material supply stores within our level.

• Payment Options

The payment policy adopted by Harrison Anthony™ Building Materials Store, Inc. is all inclusive because we are quite aware that different customers prefer different payment options but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harrison Anthony™ Building Materials Store, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for supply of our building materials without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a building material supply store business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start up capital;

• The Total Fee for Registering the Business in Oklahoma City – Oklahoma – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
• Marketing promotion expenses for the grand opening of Harrison Anthony™ Building Materials Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• The cost for hiring Business Consultant – $2,500
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600
• The cost for shop remodeling (construction of racks and shelves) – $20,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of building materials) – $250,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $750,000 to successfully set up our building material supply store in Oklahoma City – Oklahoma.

Generating Startup Capital for Harrison Anthony™ Building Materials Store, Inc..

Harrison Anthony™ Building Materials Store, Inc. is a private business that is solely owned and financed by Harrison Anthony and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Harrison Anthony™ Building Materials Store, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality building materials a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harrison Anthony™ Building Materials Store, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphics Design and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers of building materials: In Progress

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