In the last years, the apartment construction business has experienced one of the fastest expansions in the construction sector. There has been an increased investment in residential construction, as well as a reduction of vacancy rates that has facilitated growth in multifamily complexes. Industry revenues are expected to continue growing, so the business represents a great option for new entrepreneurs. This business plan will serve as a guide for running the company, using financial projections and marketing strategies to make the business grow, and an operations plan to organize the company in order to be successful.
Apartment Construction Business Plan
Apartment construction is a business that offers infrastructure, groundbreaking, framing and final construction services by working on both small and large scale construction, repairs, and alteration projects focused on apartment buildings. Some of these services include design planning, remodeling, site preparation and carpentry, laying foundations, painting, along with plumbing and utilities installation. In this section of the plan you will find all the business’ characteristics and a description of the company’s services.
In this section of the plan there is a complete description of the apartment construction market and how to position the business in the market it serves. You will find a market research and analysis of the industry and several strategies for the company to become well among potential customers.
The apartment construction business plan focuses in offering premium quality design, and infrastructure building services for both small and large apartment complexes. In this part of the plan there is a description of the operations plan that includes the procedures for both selling and executing projects, materials that are usually employed, key staff and job safety guidelines to make sure your business strive.
The marketing plan presents strategies to reemphasize and improve what makes the business successful by taking advantage of the opportunities that the industry has brought, experiencing one of the fastest expansions within the construction sector and leading to increased property values. This section brings a solid marketing plan that clearly shows the approach to get into the marketplace and acquire customers.
It is very important for this kind of business to divide their clients into diverse segments, grouping together those customers with similar features and needs. In this part of the business plan you will not only find different target markets, but also services that are commonly searched in the industry, by whom, and why. It identifies what actual clients need in the apartment construction industry and the best segments on which to focus your marketing efforts.
Effective advertising and promotion in this section are the key to making your company a regional household name. Increasing your advertising efforts by placing yourself as the most suitable supplier involves creating a decent website with details of your previous projects, your staff’s experience and qualifications, along with a great image gallery that serves as your company’s portfolio. Alongside, advertising on industry-related magazines and online publication will also be helpful to get you the customers you need.
The following sections are the financial projections for the apartment construction business for the next years. These projections represent a conservative estimate of revenues, expenses, and growth.
For most apartment construction businesses, there are two methods to recognize revenue. The first is the percentage of completion method and the second is the completed contract method. Both are acceptable methods and each has their own respective advantages. In this section of the plan there is a description of the main sources of revenues using both methods. Revenues for the business will come mostly from its construction and remodeling services.
In this section of the plan you will find the regular expenses of keeping the apartment construction business running. The list of operating expenses includes and explanation in detail of the direct costs, indirect costs and the overhead, including rent, lease contracts, employees and utilities.