How to write a business plan for a small construction business

Explain how you will plan your production schedule for each contract. Ascertain your target market and determine what areas your business will service.

Bureau of Labor Statistics reports that the construction industry is one of the largest industries in the U. Identify the terms of the bond insurance and the base fee that will apply to those policies.

Target residential and commercial property owners for your plumbing business, for example, and provide services, such as main drain cleaning, pipe excavation, and repair and general plumbing services to provide consistent work throughout the year.

Consult with an accountant to determine the best method for your particular construction business. Create an appendix for the plan that consists of supporting documents, such as tax returns, supplier agreements, insurance policies and license approvals.

Identify the accounting method that your construction company will use cash or accrual. We require huge financial base to be able to acquire some of the latest heavy duty construction equipment.

A Sample Construction Company Business Plan Template

Shannon Berg Construction Company will be known for working with smaller clients various individuals as well as working for bigger clients various governments and organized private sector. Identify whether the equipment is rented, leased or purchased and include the costs for each item.

Define the strategies that your construction business will use to capture and maintain your customers. Identify if your business will use employees, contractors or a combination of both. Complete a personal financial statement for each owner of your business. It is important that we know our strength, our weaknesses, and the opportunities that we can leverage on in the industry and the threats that we are likely going to be confronted with.

Create a business description for your construction business. In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of a Dr.

Identify the suppliers and vendors that your business will use for inventory. Smaller construction companies position themselves to be able to leverage on such opportunities once it present itself.

Though small, the many businesses within the industry provide aggressive and continual competition. Provide information on any applicable warranties or insurance policies that will cover potential damages or maintenance requirements.

Well the fact that we are a new construction company could count as a weakness. Another weakness that can count against us in the industry is the fact that we may not have the financial muscles to drive the business the way we ought to drive it.

Another obvious trend in the construction industry is subletting of contracts.

How to Write a Construction Business Plan

What smaller construction companies need to do to survive in the industry is to concentrate on developing estates, schools, hospitals and hotels et al before bidding for big construction contracts like road construction, bridge construction, dam construction and skyscrapers et al.

It is normal for clients to think twice before awarding construction contracts to newbies in the industry. Our business concept, our mission and vision puts us at an advantage in the industry. Explain the steps and strategies that your business will use to compete with these businesses and overcome the strengths of those businesses.

We will start with the local market, people, organizations and the government in Michigan, but we hope to spread our nets to clients from other states in the US and thereafter other countries of the world.

Create a list of construction services that your business will provide and identify the price for each service. Include the number of workers your business will need, along with the hourly pay of the worker. Complete a balance sheet, income statement and cash flow statement for the construction business.

Another threat that we are likely going to face is the arrival of a big construction company in the location where our business has strong presence. Among these businesses, 68 percent of companies within the construction industry employ less than five individuals.A Business Plan is a written document that outlines a company's goals and how it plans to achieve them.

It also encompasses several other aspects of a company's future agenda and can serve as a tool for internal decision-making or as a business proposal to pitch to potential investors. Construction and Engineering (34) Consulting (28) How to use a sample business plan to write your own plan.

If you’re like most small business owners, you’ve never had to create a business plan before. In fact, you may have never even seen a formal business plan document let alone had to put one together.

Write a business plan that. A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it.

Write a business plan

If you jot down a paragraph on the back of an envelope. Writing a Business Plan Georgia State SBDC 2 Why Write a Business Plan? A Business Plan helps you evaluate the feasibility of a new business idea in an objective, critical, and unemotional way.

Doing that, of course, means that your plan will focus much more on the potential of the business and how you, as the entrepreneur, plan to take advantage of those opportunities.

Fosse Commercial Contractors construction business plan executive summary. Fosse Commercial Contractors, an established general contractor, plans expansion, changing target markets from residential to commercial building projects. Write your business plan with the #1 online business planning tool.

Fosse Commercial Contractors LLC is a /5(83).

How to write a business plan for a small construction business
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