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    Construction Company Business Plan

    People need housing, farm buildings, buildings for work, and leisure. Therefore, the demand for services of construction companies remains high. The construction market’s capacity amounted to about 9,000 billion rubles, which is 5% more than in the previous period. Most of the buildings and structures erected in Moscow and the Moscow region. In other regions, there is also an upward trend. The situation is favorable for the opening of its construction organization. However, it is worth considering the market position in your area. To minimize risks, prepare a business plan in advance using a ready-made sample.

    Market analysis

    Over the first half of 2019, over 50 million square meters of residential and non-residential buildings were commissioned in the Russian Federation. 

    Experts predict that a way out of self-isolation will return to previous levels.

    However, keep in mind that there is high competition in the field of activity. To stay afloat, pay attention to business promotion. 

    Types of construction services

    Most orders are concentrated around the construction of new facilities. Therefore, start work in this area. Choose the direction of construction. Private organizations are engaged in:

    • civil engineering;
    • industrial construction;
    • road construction.

    The choice depends on the situation in the construction market of a particular region. Recently, there has been a trend towards a decrease in demand for apartments. People are actively buying houses, preferring to live outside the city.

    Small organizations often trust construction. Many private companies start activities in this area. Do not forget to indicate the direction of the organization in the business plan.

    Step-by-step instructions for opening a construction organization

    At the stage of forming a business plan, determine the scale of the construction organization. Then create a list of services based on the market situation. Enter the data on the average cost in the price list of the business plan. Based on the information, determine the approximate price for the services of the new construction organization. At the first stage, set the price slightly lower than that of competitors. Further to be:

    1. Estimate the size of the costs of starting a construction organization and the possible profit.
    2. Register a company and get an SRO permit.
    3. Find a room for a warehouse and office.
    4. Form a staff.
    5. Purchase equipment and start a business promotion.

    Construction companies work following the provisions of the Town Planning Code of the Russian Federation and the Federal Tax Service No. 315, 372 and 384. Familiarize yourself with the requirements of regulatory acts before starting a business.

    Registration of a construction company

    To work officially, register an IP or LLC. A small company working with special orders is enough to register the business owner as an individual entrepreneur. The method is associated with the least amount of cost. You will only pay a state fee of 800 rubles. The package of documents is minimal. It is necessary to provide:

    • completed application to the Federal Tax Service;
    • identification;
    • receipt of state duty;
    • TIN, If it was framed.

    Keep in mind that an individual entrepreneur is responsible for all property related to business matters.

    If you create an LLC, the company is only liable within the authorized capital. Its size is at least 10,000 rubles. To register an LLC, you will need more documents. The applicant provides:

    • completed application;
    • charter;
    • a decision to create a company, taken individually or during a meeting of founders;
    • receipt of payment of state duty for 4000 rubles;
    • legal address;
    • documented data on the method of forming the authorized capital;
    • applicant’s identity card.

    If you use a ready-made business plan for a construction company with calculations, consider the costs of starting the company, taking into account the legal form. Then select the OKVED codes. They reflect the specialization of the new organization. The company can carry out only the activities indicated in the application. For the work of the construction organization, the following codes are suitable:

    • 45.25.5 – work with stone;
    • 45.31 – electrical work;
    • 45.32 – insulation work;
    • 45.33 – sanitary work;
    • 45.42 – carpentry work;
    • 45.43 – flooring, wall covering;
    • 45.44 – painting, glasswork;
    • 45.45 – final and other finishing work.

    Taxation depends on the list of services of a construction company—suitable USN or UTII. Large firms choose OSNO.

    For the construction of buildings and structures, the SRO approval is required. He confirms that the organization meets the established requirements and can perform construction work in a high-quality manner. Tolerance is necessary for:

    • installation of roofs;
    • installation of engineering networks and equipment;
    • work with metal structures, stone structures;
    • installation of gas supply and power supply network;
    • carrying out hydraulic works;
    • organization of construction.

    Admission is not needed if you are constructing detached houses with floors not exceeding 3. However, without permission, you will not be able to participate in most tenders and public procurements. Therefore, join the SRO in advance.

    Search and rental of premises

    A construction organization needs an office. It should be located in a location with excellent transport accessibility. Customers come here, so choose a respectable and respectable room. Be sure to make a proper repair with an attractive design. According to it, the client makes the first impression of the company. Rent a room in a business center or office building. It is more convenient to come here to potential customers and partners. The scale of the company affects the area of ​​the office.

    Construction Company Business Plan

    If the company is small, a small room will do. There are no special requirements for the office.

    Additionally, you need a place to store equipment. Select a site in the residential or industrial areas of the city. Here, much lower rental prices. However, consider the convenience of traffic intersections. It is necessary to bring and take away equipment and materials regularly.

    Purchase and leasing of equipment and construction equipment

    The acquisition of equipment is the most costly stage in implementing the business plan of a construction company. Construction requires a lot of material. Get gear and accessories for development, taking into account specialization. For the construction of buildings and structures will need:

    • concrete mixer;
    • screwdrivers, punchers and hammers;
    • grinders, saws, shovels, buckets, welding machines;
    • tool kits.

    To save money, lease equipment. With the help of the service, you will receive any expensive equipment of your choice for use. During the period, the lessee makes payments. When the deadline ends, the company settles with the lessor and becomes the owner of the equipment or returns the objects. The method is convenient in that you can periodically change the fixtures for construction, each time making a return and drawing up a new leasing agreement.

    Staff recruitment

    The success of a construction organization depends on the professionalism of employees. Therefore, competently approach the choice of personnel. For companies to provide access to SROs, hire employees with professional education and work experience. Otherwise, the application will be rejected. Required:

    • laborers;
    • plumbers, electricians;
    • painters and drywall workers;
    • finishers;
    • team leader;
    • designer.
    Construction Company Business Plan

    With the expansion of the activity, hire additional staff Including architects, carpenters, lawyers, designers at the headquarters. Then you will avoid hiring an additional staff member. He will not have to deduct taxes to the budget, pay amounts to funds, or pay sick leave and vacation pay.

    We form a list of services.

    Choosing a construction company, the customer assesses the reputation of the organization. Companies with experience are hired to build extensive facilities. The client takes into account reviews about the organization. Therefore, at the beginning of the activity, you will have to make small orders or provide discounts.

    Having earned excellent customer reviews, you will ensure high demand.

    Offer your customers the following services:

    • construction of an object;
    • plastering, painting, facing;
    • design of buildings and structures;
    • performance of specific tasks at large construction sites;
    • work with engineering communications.

    Low-rise construction is associated with the least risk. However, you will come across a seasonal factor. In winter, the number of orders decreases. When forming a business plan for a construction organization, consider this fact.

    Advertising and first customer search

    The promotion of a company begins by choosing its name. It must be remembered and meaningful. When choosing a name, consider the following nuances:

    1. The target audience. If cooperation is with individuals, select a short name. It is easy to remember. If you work with large companies, you will need a name and slogan. He will highlight the organization against the general background.
    2. Stick to specifics and avoid abbreviations.
    3. Sonority. The title should sound good.

    Get the same uniform with the company logo. On vehicles, but the company name and phone number. Provide a guarantee, offer discounts.

    Develop a loyalty system for regular customers.

    Provide them with a discount card, a bonus system. So you will build a customer base. Subsequently, the services of the company will begin to recommend to other people.

    Bringing a ready-made business plan for a construction organization to life, use all the promotion channels. Design your website and groups on social networks. Fill the resource with information, publish photos of finished works. Post information on forums, thematic resources. Banners, billboards, flyers, and stretch marks also benefit. Publish information in local newspapers. But the effectiveness of promoting a construction company with the help of advertisements on television raises questions. A promotion channel is less popular, and advertising is expensive. Therefore, consider whether the target audience is watching TV.

    Read More: What can we expect from Apple WWDC conference

    Allocate funds for advertising monthly. Hire a professional who will build the reputation of the company and attract new customers.

    Financial risk analysis

    Having opened a construction business, you will quickly earn. Potential profitability reaches 70%. Investments will pay off within 1-1.5 years. However, the business is associated with significant investments. You will spend about 5 million rubles on the purchase of equipment. Nearly two million more will be required to register a company LLC, obtain an SRO permit, purchase consumables, and promote a business.

    Leasing reduces one-time upfront costs but increases monthly expenses. About 1 million rubles are spent on paying salaries to employees, renting an office, taxes, and promoting a business. The income of an average construction organization is from 2 to 2.5 million rubles. Please note that the payment is projective. You will receive the bulk of the revenue by completing the construction. Immediately reach this amount of profit will not work. Therefore, do not forget about the promotion.

    Conclusion

    The construction business will be a profitable undertaking if you approach the launch of your business competently. The probability of going into minus is minimal. There are many orders. If the company is stable and receives good reviews from customers, it will continuously work. However, the first step will require tangible investments. You can face high competition. Therefore, plan your upcoming activities by drawing up a business plan and calculating possible profits and costs.

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