Construction Business Plan

Business Plan Articles

If you are creating a construction company and need investment, a custom business plan can help you to acquire the investment needed to begin operations. However, there are many custom factors that you should reflect in the plan including the type of construction performed, the financial requirements of the company, and your intended customer acquisition strategy. Pro Business Plans has worked with many construction companies to create professional plans; this article is designed to communicate what is included in the plan and how is structured.

construction business plan

Construction Business Plan

A custom business plan for construction is structured around several custom factors that will determine the profitability and risk level of your company. This often includes the location of the company, area it specializes in, prior operating history, and size of the operation. A construction company that has 30 employees based in the Southwest specializing in local government contracts will be entire different than a 15-person Startup company focusing on commercial real estate. These unique factors will be reflected in the business model, marketing plan, and financial projections as explained in the following sections.

Business Model

The business model for a construction business plan should provide insight on what area of the market the company focuses on and how it is unique. For instance, the background of the management team that has prior relationships in the industry or experienced bid analysis. The business model should be comparable to existing firms, but competitively positioned in the market by having some unique competitive advantage.

Marketing Plan

The marketing plan for a construction business plan should include information about how leads will be acquired, the bidding process, and customer relationship management. The marketing process depends on the business structure. For instance, private focused construction firms may receive request for proposals from the government and using bidding software to quickly provide competitive rates . Other private firms may establish relationships with others in the supply chain to provide affiliate deals or in some cases, promote their services online.

Financial Projections

A construction business plan may need to include three to five year financial projections based on the cost structure of the company. If you do not have extensive operating history, the financial ratios of comparable construction companies may be used to formulate projections. The assumptions should be structured on the size of the company, bringing a large amount of contracts on for overly large projects would cause a high bid price. Therefore, the amount of employees and assets it has often directs the size of contracts that it acquires and the frequency that contracts are awarded. Custom risk and profit models may also be performed in order to determine the break-even number of projects and cost of capital.

What is Included in Our Custom Construction Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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