Business plan template for a construction company

Business plan template for a construction company

Are you going to start a construction business?  here is an example of a complete feasibility study of a construction business plan template that you can use for FREE  .

Ok, so we’ve covered all the requirements for starting a construction business. We also took it a step further by analyzing and writing a sample construction marketing plan template backed by actionable guerrilla marketing ideas for the construction company. So let’s move on to the business planning section.

When you talk about a real estate development business, many aspiring entrepreneurs might want to take a step back, as they know that it is indeed a business that requires huge start-up capital. However, it is a business that offers a significant return on investment when seed capital can be raised.

You can actually be proud of your wealth because of the lucrative nature of the business. Those who started as newbies many years ago have managed to see their business grow from the top to the top. As with any business, there are steps you can take to get on the right track.

There are different stages that include leasing a business space, providing vital business training, purchasing everything you need to start a business and, most importantly, writing a copy. a business plan  . Therefore, the big question is to what extent is this possible –  . It may not be easy because some gray areas may need more attention.

There are a thousand and one consultants out there looking for clients they can write business plans for for a fee. These consultants know everything and require writing a business plan. However, it is entirely appropriate to say that this card may not be cheap. Writing a complete business model is quite expensive. It is for this reason that there is a shortcut by which you can write a business plan and execute it correctly.

To do this, you can easily use a sample business template to write your own. This may require some research to develop a sample business plan associated with your industry. Once that is done, you will need to make predictions and calculations so that you can come up with the things that are unique to your business.

The good news is, you don’t need to do any research because this is a sample construction business business plan that you can use to solve your own.

Example of a business plan template for a construction company

  • Overview of the construction industry

The construction industry boasts of being responsible for the development of global infrastructure. Thus, the development of any country or city can be called the business of construction companies and other stakeholders. In other words, all of the buildings, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers, and massive structures that you see around you are all products of the construction industry. .

Starting a construction business requires a large capital investment simply because of the type of heavy equipment required to complete a construction project and also because of the cost of managing a large workforce. Even though the construction industry requires huge start-up capital, it is very profitable, especially if you have the experience and the ability to provide quality jobs. The main clients of construction companies are governments and the private sector.

Construction giants around the world are heading to developing countries because they know they’re going to get hefty construction contracts there. Unlike advanced economies, there are many construction activities in developing and underdeveloped countries. The fact that they have an infrastructure deficit means that the government must be prepared to build roads, build bridges, build public facilities (hospitals, schools, offices, estates, etc.) and build dams.

After the war, the construction industry was one of the main players contributing to the reconstruction of the country. In doing so, they are working with governments to ensure that basic infrastructure is rebuilt, and of course, this will always be a win-win situation for both parties. The government gets what it wants, and the construction company and contractors get a good return on the projects.

In addition, the success of a construction company depends to a large extent on its relationships with the largest customers in the industry; government of any country. There is no doubt that construction contracts are always sufficient if the construction company is competent and well positioned. They will not be short of construction contracts from both the government and the private sector.

Construction business plan resume example

Shannon Berg Construction Company is an international construction company headquartered in Grand Rapids, Michigan – USA. The fact that we are based in the United States in no way limits our scope of activity to the United States of America. We are an international construction company serving our clients (government and private sector) around the world.

Shannon Berg Construction Company will specialize in the construction of skyscrapers, bridges, stadiums, roads, dams, office complexes, shopping malls, schools, campuses and estates, etc. In fact, we will be known for providing world class facilities across the globe. Creativity, excellence and timely completion of construction projects will be our signature.

We intend to start our small-scale construction business in Grand Rapids, Michigan, but we have a bigger vision – a presence in any part of the world where our clients want us to operate. We hope to achieve this feat within the first 10 years of starting the business.

As part of our plans to make our valued clients our number one priority and become a global build brand, we have refined plans and strategies that will allow us to work with our clients on projects that can profitably compete with them. best in the industry at an affordable and reasonable price. deadline for completion, excluding any unforeseen circumstances.

Shannon Berg Construction Company fully We understand that starting a construction business requires a huge capital base, so we have developed plans for a constant cash flow from private investors who are interested in working with us. We can confidently say that we have a strong financial position and are ready to undertake any construction project that comes our way if the project is properly commissioned by the requested authority.

Shannon Berg Development Company will be owned by the main partner; Ingres. Shannon Berg and other partners (Nani David, Lois Scotland and Christopher Parkston). They also plan to sell the shares of the company in the near future to interested investors who would like to become part owners of the company.

Shannon Berg, who is the main partner, has over 25 years of experience in the construction industry. Before starting his own construction company, he was a senior project manager and consultant for one of the world’s largest construction companies, based in Germany.

Engr. Shannon Berg, Nani David, Lois Scotland and Christopher Parkston will be the company’s main financiers. Nonetheless, we made the decision not to limit the number of investors with a similar investment ideology who might want to invest in a company.

This is necessary so that we can maintain financial flexibility. Ideally, our plan is that no investment will be worth less than $ 1,000,000, which would allow us to acquire 1% of the shares. We strive to ensure that all shareholder partners are limited partners.

Shannon Berg Construction Company is a construction company dedicated to implementing small construction projects and large construction projects for governments, private sector and individuals, so we do not intend to set any limits. on the scope of the projects we work with and what we do.

We know that if we have a good understanding of what we are doing, it will be easier for our brand to expand beyond Grand Rapids, Michigan, to other parts of the United States of America and beyond. of the world. Our selling propositions are listed below;

  • Road construction
  • Construction of bridges
  • Construction of dams
  • Construction of airports and helipads
  • Construction of seaports
  • Skyscraper construction
  • Building construction
  • Construction of public facilities (hospitals, schools, shopping centers, office complexes and industrial facilities, etc.)
  • Construction of residential premises
  • Property conversion services
  • Construction and consulting services

Our vision

Our vision is to create a premier construction company with a strong presence in North America, South America, Africa and Asia.

  • Our mission statement

At Shannon Berg Construction Company, our mission and values ​​are to help governments, the private sector and individuals in the United States of America and around the world realize their dream of creating a world-class structure capable of competing with the best in the construction industry worldwide.

  • Company structure

Shannon Berg Construction Company intends to start small in Grand Rapids, Michigan with the intention of expanding the business and becoming a global construction brand with a presence on every continent of the world. To achieve this vision, we simply need to position our business for growth and hire dedicated and highly skilled employees at all levels.

Shannon Berg Construction Company will provide our team who will work together to achieve the company’s vision. We will build a business with the right structures and processes that can support growth; a business that operates on autopilot.

In view of the above, we have envisioned the next position in our organization based on the size of the business we intend to start, but as the business grows we will create senior positions. level and create a structure that will support the growth of the business at every stage of growth and expansion. ;

  • CEO (president)
  • Project Manager
  • Civil engineer
  • Civil engineer
  • Estimator
  • Land surveyor
  • Lawyer / company secretary
  • Administrator and HR manager
  • business developer
  • accounting
  • receptionist

roles and responsibilities

Managing Director Managing Director:

  • Responsible for business management
  • Creates, communicates and implements the vision, mission and general direction of the organization, that is, the development of leadership and the implementation of the overall strategy of the organization.
  • Responsible for the daily management of the company
  • Responsible for serving major clients and transactions
  • Responsible for pricing and signing trade agreements
  • Responsible for signing checks and documents on behalf of the company
  • Measures the success of the organization
  • Reports to the Board of Directors

Project Manager

  • Responsible for planning, managing and coordinating all projects on behalf of the company
  • Supervise projects
  • Ensures that requirements are met during project execution
  • Provides advice on project management
  • Responsible for risk assessment
  • Use of computer systems and software to track people and the progress of ongoing projects
  • Responsible for controlling accounting, costs and invoicing for each project
  • Represent the interests of the organization at various stakeholder meetings
  • Ensures that the project achieves the desired result, that the most efficient resources are used and that the various stakeholders are satisfied.

Civil engineer

  • Responsible for preparing bids and submitting reports to clients, government agencies and planning authorities
  • Ensures site compliance with legal and health and safety requirements
  • Evaluates the environmental impact and risks associated with projects
  • Responsible for evaluating the performance of projects by evaluating materials, costs and deadlines
  • Drawing using computer-aided design (CAD) software packages
  • Discuss requirements with client and other professionals (e.g. architects and project managers, etc.)
  • Responsible for managing, guiding and monitoring progress at each stage of the project

Architect

  • Responsible for creating highly detailed construction projects and drawings, by hand and using specialized computer aided design (CAD) software
  • Bypasses limiting factors such as planning legislation, environmental impact and project budget
  • Writes and submits reports, proposals, offers and contracts
  • Adaptation of plans according to circumstances and resolution of problems that may arise during construction
  • Works with the project team and management to achieve a common goal
  • Responsible for the building permit application and consultation of the new government building and legal department.

Land surveyor

  • Responsible for carrying out ground surveys / measurements using various special technical means such as theodolites, laser alignment devices and satellite positioning systems, etc.
  • Responsible for presenting data to clients
  • Responsible for drafting and advising on construction plans and drawings
  • Responsible for technical advice. and if the construction plans are viable

lawyer / company secretary

  • Responsible for drafting contracts and other legal documents for the company
  • Advise and manage all corporate legal processes (e.g. intellectual property, mergers, financial / securities offers, compliance issues, transactions, agreements, litigation and patents, etc.)
  • Develops company policy and position on legal issues
  • Find, predict and protect the company from legal risks
  • Represent the company in litigation (administrative advice, litigation, etc.)
  • participates in negotiations on commercial transactions and writes meeting minutes
  • Responsible for analyzing legal documents on behalf of the company
  • Prepares annual reports for the company

Administrator and HR manager

  • Responsible for overseeing the proper execution of personnel and administrative tasks in the organization.
  • Identify jobs for recruitment and manage the interview process.
  • Introduces staff to a new team. members of
  • Responsible for training, evaluation and evaluation of employees
  • Responsible for organizing trips, meetings and appointments
  • Monitors the proper functioning of the office.

Business Developer

  • Identifies, prioritizes and contacts new partners, as well as business opportunities, etc.
  • Responsible for overseeing implementation, advocating for client needs and communicating with clients
  • Develops, implements and evaluates new plans to increase sales growth
  • Documents all contacts and customer information (managed by the company’s CRM system)
  • Represent the company in strategic meetings with government agencies, the private sector and entrepreneurs
  • Helps increase sales and business growth

Accounting

  • Responsible for the preparation of the financial statements, budgets and financial statements of the organization
  • Responsible for financial forecasts and risk analysis.
  • Responsible for the development and management of financial systems and policies
  • Payroll manager
  • Ensures compliance with tax laws
  • Manages all the financial transactions of the company
  • Serves as the company’s internal auditor

Registration and customer service

  • Receives visitors / customers on behalf of the organization
  • Receives packages / documents for the company
  • Handles email and phone requests for the organization
  • Distributes letters to the organization
  • Perform any other task as directed by the supervisor

Example of a construction business plan template MARKET ANALYSIS

  • Market trends

The trend in the construction industry is that construction companies are always developing processes to help them achieve more in a short period of time; construction work can take time, especially the construction of massive infrastructure.

Most players in the construction industry are fully aware that the government of any country or state is the biggest customer they can get, and they do all the lobbying and bargaining to make sure that ‘they get government contracts.

There are undoubtedly many large investors who have stakes in the construction industry, but one thing is for sure, there is ample room here to accommodate both large construction companies and small construction companies. .

What small construction companies need to survive in this industry is to focus on developing estates, schools, hospitals and hotels, etc., before betting on big construction contracts. construction such as road building, bridge building, dam building etc. skyscrapers, etc.

Another obvious trend in the construction industry is sublease contracts. It is now clear that construction giants are using their brands to win contracts and in some cases after winning a contract they will sublet a contract with a small construction company that they hope they can supply to carry out. well the project. agreed fees. this will be enough for both parties to make a profit. Small construction companies are positioning themselves to take advantage of these opportunities as they arise.

  • Target market

Our target market permeates governments at all levels and countries, the organized private sector, and people of all classes and walks of life. We know that our outlets will be an excellent and timely implementation of construction projects using the world’s best practices.

We will start with the local market, individuals, organizations and the Michigan government, but hope to expand our networks to customers in other states in the United States and then around the world. Construction company Shannon Berg will be known for working with smaller clients (various people) as well as larger clients (various governments and the organized private sector). Below is a list of the people and organizations for whom we have specifically designed our services;

  • Families
  • Organized private sector (companies)
  • Land owners
  • Businessmen and women
  • University campuses
  • Foreign investors interested in real estate ownership in the United States of America
  • Government of the United States (government procurement)
  • Governments of other countries of the world

Competitive advantage

We are well aware that there are large investors and well known construction companies in the construction industry and we may have to compete with them when it comes to applying for hefty government contracts.

It can be difficult to be competitive as a newcomer to the construction industry, especially in a highly organized market like the United States of America, which is why we intended to select the members of our board of directors. Our competitive advantage is not limited to having highly skilled occupations that are part of our management team. but also members of our board of directors.

Members of our Board of Directors are respected professionals in the United States who have served the United States government at various levels; people who are professional business gurus and people who have the right connections and the experience to get things done with little or no difficulty. For us, this is really part of the competitive advantage we bring to the market.

Another bright spot for construction company Shannon Berg is the fact that our CEO / President is a renowned civil engineer, he has extensive experience in the construction industry and has worked extensively as a senior project manager in one of the leading construction companies. the world.

He is confident that he will bring his experience, knowledge and network (connections) to make Shannon Berg Construction Company one of the leading construction brands in Grand Rapids, Michigan, as well as an active player in the global market. construction.

Sample Construction Business Plan Template SALES AND MARKETING STRATEGY

We were able to clearly define our target market and document it in our construction plan. We know how to get them to hire our services, so we decided to embrace some of the winning formulas that the construction giants use to win big construction contracts.

We know it will require different marketing and sales strategies to gain small customers and large customers. For example; There are requirements that a construction company would not want to meet before they can get a contract with the government. We worked on all of these factors before creating a viable marketing and sales strategy for construction company Shannon Berg.

Construction company Shannon Berg is fully aware of the bureaucracy and equestrian trade that exists when bidding for construction contracts with government and even the organized private sector, so we were able to implement protocols to hire one of the best business developers to handle sales and marketing.

Without a doubt, our sales and marketing team will be recruited on the basis of their extensive experience in the construction industry and their ability to fit into our business model. We will put more emphasis on training all of our employees to give them everything they need to help the company achieve its goals and objectives.

Our goal is to become one of the premier construction companies in Grand Rapids, Michigan, and we know we can achieve this by ensuring that our sales and marketing team are on track for the role. Shannon Berg Construction Company will adopt the following marketing and sales strategies:

  • Introduce our business by sending cover letters along with our brochure to all businesses and government offices in Grand Rapids, Michigan and other states in the United States.
  • Quick participation in calls for tenders on contracts
  • Advertising our business in magazines and on real estate / real estate websites
  • List our company on the yellow pages
  • Promote our business on satellite TV channels and radio stations.
  • Attend exhibitions, seminars and trade shows, etc.
  • Create different packages for different categories of customers to work with them. their budgets and always provide them with quality housing / properties
  • Leverage the Internet (social media platforms and our official websites) to promote our business

Source of income

Shannon Berg Construction Company was founded with the goal of maximizing profits by providing quality and standard construction work to our valued customers. We will ensure that income is generated from all available funds in the construction industry: Here are the sources we will explore to generate income for the Shannon Berg Construction Company;

  • Road construction
  • Construction of bridges
  • Construction of dams
  • Construction of airports and helipads
  • Construction of seaports
  • Skyscraper construction
  • Building construction
  • Construction of public facilities (hospitals, schools, shopping centers, office complexes and industrial facilities, etc.)
  • Construction of residential apartments
  • Real estate conversion services
  • Construction and consulting services

Sales forecasts

It is important to note that our sales forecasts are based on data collected during feasibility studies and on certain assumptions that are readily available locally. We have relationships with major real estate and construction players in Grand Rapids, Michigan as well as the US states and are confident that key construction contracts will help start the business. Here are the predictions we were able to formulate over the first three years of the Shannon Berg construction company;

  • First year-:  $ 2,000,000
  • Second year-:  $ 3,500,000
  • Third year –  $ 5,000,000

NB  : This prediction is based on what is available in the industry and on the assumption that everything will contribute to the easy completion of construction contracts. Based on our calculations, we are likely to receive a profit of at least 30% after completing the task of carrying out key construction projects.

Part of the business strategy is to make sure that we work within our clients’ budgets to deliver excellent, world-class construction projects. We are well aware that there are major players in the construction industry in the United States of America who are not interested in small business transactions, and therefore we have agreed with Shannon Berg Construction Company to enter into such contracts.

While our prices are not prohibitive compared to those offered by the industry, we hope that any price we charge our customers will be one of the lowest they can get in the industry. The fact that we will charge our clients less than what is available in the industry does not affect the quality of our construction projects.

  • payment methods

Our payment policy at Construction Company Shannon Berg is comprehensive, as we are well aware that different people prefer different payment options that are suitable for them, but at the same time we will not accept cash payments due to the amount of money. who will be involved in most of our transactions. Here are the payment methods that we will make available to our customers;

  • Payment by bank transfer
  • Internet bank transfer payment
  • Payment by check
  • Payment by bank transfer

In view of the above, we have chosen banking platforms that will help us carry out our projects without any problem.

Example of construction business plan template Advertising and advertising strategy

We were able to work with our consultants to help us define advertising and advertising strategies that will help us penetrate the heart of our target market. Above all, we want our brands to be visible and knowledgeable, which is why our advertising strategy has been carefully designed to help us achieve our business goals and objectives.

All of our promotional materials and jingles are executed by some of the best hands in the industry. Below are the platforms we intend to use to promote and advertise our real estate development activities;

  • Placement of advertisements on print and electronic media platforms
  • Sponsor of relevant TV shows
  • Use our company website to promote our company.
  • Use on the Internet and social networks such as; Instagram, Facebook, Twitter, LinkedIn, Badoo, Google+, etc.
  • Install our bulletin boards at strategic points

Example of a construction business plan template: financial forecasts and costs

  • Total New York Business Registration Fee: $ 750.
  • Budget for liability insurance, permits and licenses: $ 5,000.
  • The amount required to purchase. Suitable property with adequate space in Grand Rapids, Michigan (including site redevelopment): $ 500,000.
  • Cost of office equipment (computers, printers, fax machines, furniture, telephones, filing cabinets, security gadgets and electronics, etc.): US $ 15,000.
  • The cost of purchasing heavy equipment. construction equipment: $ 2,000,000
  • Website launch cost: $ 600
  • Additional costs (business cards, signage, advertisements and promotions, etc.): $ 5,000
  • Working capital (investment fund): 3,000,000 USD (3 million USD)

Based on our research and feasibility report, we would need approximately $ 7,000,000 ($ 7 million) to set up a construction company in Grand Rapids, Michigan. It is important to note that most heavy construction equipment that we will be working with will be rented. This is necessary because some of this equipment is very expensive and we will not buy it economically from the start.

Fundraising / Seed Capital Creation for Shannon Berg Construction Company

  • CEO / Chairman Engr Shannon Berg to generate 20% of seed capital from personal savings and sale of shares
  • 30% of the capital will be generated by key partners (Nani David, Lois Scotland and Christopher Parkston)
  • 50% of the capital will come from banks

GROWTH OF THE CONSTRUCTION ACTIVITY: A strategy of sustainable development and expansion

Shannon Berg Construction Company was founded with the goal of creating a business that will outlive the founders and partners; a construction company that will have an active presence in major cities around the world. Part of the company’s vision is to pass the baton from generation to generation; therefore, we have refined our plans to create the right structures to help our succession plan.

In order to position the company for growth, we have been able to forge strong partnerships with the United States government. America is organized by the private sector and the construction giants. We hope that we will continue to execute construction contracts for our customers.

Our marketing team will continue to receive the support and encouragement they need to be able to achieve their stated goals and objectives for the organization, and we will continue to improve our processes and structure to keep pace with the change. changing trend in the construction industry.

Finally, we will not tolerate calculated business risk when it comes to bidding on larger government contracts and accepting new business challenges and new business limits.

Checklist / step

    • Company name availability check:  complete
    • Business registration:  complete
    • Opening of corporate bank accounts with various US banks:  complete
    • Opening of online payment platforms:  completed
    • Application and obtaining of the tax identification number:  in progress
    • Business license and permit application:  Completed
    • Purchase of all forms of commercial insurance:  Completed
    • New York office space rental:  Completed
    • Feasibility studies:  Completed
    • Raising capital from CEO and business partners:  completed
    • Loan requests from our bankers:  in progress
    • Preparation of the business plan:  Completed

Compilation of employee handbook:  complete

  • Drafting of contractual documents (rental contracts, etc.) and other relevant legal documents:  under development
  • Creation of the company logo:  finished
  • Graphic design and packaging printing Marketing / promotional material:  finished
  • Recruitment:  in progress
  • Purchase of furniture, office equipment, facelift of necessary electronic devices and equipment:  In progress
  • Acquisition of heavy construction equipment:  in progress
  • Creation of an official website for the company:  in progress
  • Strengthening of the reputation of companies (Business PR):  in progress
  • Organization of health, safety and fire safety:  in progress
  • Establishment of business relationships with key industry players (networking and membership in relevant construction organizations):  Completed
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