Are you about to start a construction company? ? If yes, here is a complete sample construction business plan template feasibility report that you can use for FREE .
Okay, so we have considered all the requirements to start a construction business. We also take it further by analyzing and writing a sample construction marketing plan template backed by actionable guerilla marketing ideas for construction companies. So, let’s move on to the business planning section.
When it comes to property development businesses, many aspiring entrepreneurs may want to retire because they know that it is indeed a business that involves a lot of startup capital. However, it is a business that ensures massive returns on investment, when one can increase the initial capital involved.
In fact, one can boast of being rich. This is due to the lucrative nature of the business structure. Those who started as rookies years ago have seen their businesses grow successfully. Like any other business, you have to take steps to be seen as on the right track.
There are several steps involved and they include renting a space for the business, getting vital trade training, getting everything you need to start the business, and most importantly, writing a business plan . So the big question is, how is it possible to write one? . This may not be easy as there are some gray areas that may need more attention.
There are a thousand and one consultants who are looking for clients for whom they can write business plans with a fee involved. These consultants know everything that is needed and required to write a business plan. However, it is very convenient to state that this fee might not be cheap. It costs a lot to write a comprehensive business model. It is for that reason that there is a shortcut through which you can write a business plan and get it right /.
One of the ways you can easily do this is by using a sample business model to write your own. This would involve you doing your research for a sample business plan related to your line of commerce. Once this is done, you will need to do some projections and calculations in order to get to those things that are unique to your business.
The good news is that you won’t need to do any research as here is a
A sample construction company business plan template
- Construction Industry Overview
The construction industry can comfortably claim to be responsible for the world’s infrastructure development. As such, the development of any country or city can be said to be the work of construction companies and other stakeholders. In other words, all the buildings, bridges, dams, roads, farms, campuses, shopping malls, office complexes, skyscrapers, and massive structures seen around are all products of the construction industry.
Starting a construction business is capital intensive simply because of the type of heavy equipment that is required to carry out a construction project and also the cost of managing a large workforce. Even though the construction industry requires a lot of start-up capital, the industry is highly profitable, especially if you have the experience and ability to deliver quality jobs. The main clients of construction companies are governments and the private sector.
Construction giants around the world are heading towards developing countries, because they know they are going to get juicy construction contracts there. Unlike the advanced economy, in developing countries and the underdeveloped world, there is much work to be done. The fact that they have infrastructure deficits means that the government must be active in terms of road construction, bridge construction, construction of public facilities (hospitals, schools, office and farm facilities, etc.) and dam construction.
After a war, the construction industry is one of the main stakeholders contributing to the rebuilding of a country. In doing so, they work with governments to ensure basic infrastructure is restored, and of course it will always end in a win-win situation – the government gets what it wants and the construction company and contractors get good results from delivering the goods. the projects.
In addition, the success of a construction company depends to a large extent on its relationship with the most important clients in the world. industry; The government of any country. To be sure, there are always enough construction contracts to fulfill as long as a construction company is competent and well positioned. They will not be short of construction contracts from both the government and the private sector.
Example of executive summary of construction business plan template
Shannon Berg Construction Company is an international construction company based in Grand Rapids, Michigan – United States. The fact that we are based in the United States does not in any way restrict our scope of operations to the United States of America. We are an international construction company and we work for our clients (governments and private sectors) anywhere in the world.
Shannon Berg Construction Company will specialize in building skyscrapers, bridges, stadiums, roads, dams, office complexes, shopping malls, schools, campuses, and farms, et al. In fact, we will be known for offering world-class structures around the world. 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 broader vision: to have our presence anywhere in the world where our clients want us to work. We hope to accomplish this feat within the first 10 years of the company’s launch.
As part of our plans to make our highly esteemed clients our number one priority and become a global construction brand, we have refined the plans and strategies that will allow us to work with our clients in delivering projects that can favorably compete with the best. of the industry at an affordable and reasonable price within the stipulated completion date, barring any unforeseen circumstances.
Shannon Berg Construction Company is fully aware that starting a construction business requires a large capital base, which is why we have refined plans for a steady flow of cash from private investors who are interested in working with us. We can say with confidence that we have a solid financial position and that we are ready to take on any construction project that comes our way, provided the project is properly commissioned by the required authority.
Shannon Berg Construction Company will have it owned by the lead partner; Engr. Shannon Berg and other partners (Nani David, Lois Scotland and Christopher Parkston). They also have ongoing plans to sell the shares of the company in the nearest future to interested investors who wish to be co-owners of the company.
Shannon Berg, who is the Senior 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 at one of the world’s largest construction companies based in Germany.
Engr. Shannon Berg, Nani David, Lois Scotland and Christopher Parkston will be the main funders of the company. However, we have made a concerted decision not to limit the number of investors with a similar investment ideology who want to invest in the business.
This is necessary so that we can retain financial flexibility. Ideally, our plan is that no investment will be less than $ 1,000,000, which would buy a 1 percent equity position. It is our wish that all equity partners are limited partners.
- Our service offerings
Shannon Berg Construction Company is a construction company intended to undertake small construction projects and massive construction projects for governments, private sectors and for individuals, so we do not intend to limit the scope of the projects we handle and what we do.
We know that if we are good at what we do, it will be easier for our brand to grow beyond Grand Rapids, Michigan, to other parts of the United States of America and the rest of the world. Our business offering is listed below;
- Road construction
- Bridge construction
- Dam construction
- Construction of airports and heliports
- Construction of seaports
- Skyscraper construction
- Property construction
- Construction of public facilities (hospitals, schools, shopping centers, office complexes and industrial facilities, etc.)
- Construction of residential facilities
- Property renovation services
- Construction consulting and advisory services
Our vision statement
Our vision is to build a world-class construction company with an active 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 dreams of building a world-class structure that can compete in the world. global stage with the best in the construction industry.
- Business structure
Shannon Berg Construction Company intends to start from Grand Rapids, Michigan, but with a vision to grow the business to become a global construction brand with a presence on every continent in the world.To achieve this vision, we just have to position to our company for growth and to ensure we hire dedicated and highly competent employees at all levels.
Shannon Berg Construction Company will make sure to build a team that works together to achieve the company’s vision. We will build a business that has the right structures and processes that can support growth; a business that runs on autopilot.
In view of the above, we have made arrangements for the next position in our organization based on the size of the company we intend to start, but as the business grows, we will create high-level positions and also create a structure that will support the growth of the company. business at each stage of growth and expansion;
- Executive Director (President)
- Project Manager
- Civil engineer
- Structural engineer
- Lawyer / Company Secretary
- Admin and human resources manager
- Business developer
- Reception officer
Roles and responsibilities
- Responsible for providing direction for the business
- Creates, communicates and implements the organizations vision, mission and general direction, that is, lead the development and implementation of the general strategy of the organization.
- Responsible for the day-to-day business
- Responsible for handling high profile clients and businesses
- Responsible for setting prices and signing deals
- Responsible for signing checks and documents on behalf of the company
- Evaluate the success of the organization
- Reports to the board
- Responsible for the planning, management and coordination of all projects on behalf of the company
- Monitor projects
- Ensures compliance during project executions
- Provides advice on project management
- Responsible for carrying out the risk assessment
- Use of IT systems and software to keep track of people and the progress of ongoing projects
- Responsible for overseeing the accounting, cost and billing of each project
- Represents the organization’s interest in various stakeholder meetings
- Ensures that the project The desired result is achieved, the most efficient resources are used, and the different interests involved are satisfied.
- Responsible for preparing bids for tenders and informing clients, public agencies and planning bodies
- Ensures sites comply with legal guidelines and health and safety requirements
- Assess the environmental impact and risks related to projects
- Responsible for judging whether projects are feasible by evaluating materials, costs, and time requirements
- Create plans, using computer-aided design (CAD) packages
- Discuss the requirements with the client and other professionals (e.g. architects and project managers, etc.)
- Responsible for managing, directing and monitoring progress during each phase of a project
- Responsible for creating highly detailed building designs and drawings both by hand and with specialized computer-aided design (CAD) software
- It works around limiting factors such as planning legislation, environmental impact, and project budget
- Write and submit reports, proposals, requests and contracts
- Adapting plans according to the circumstances and solving any problems that may arise during construction
- Works with the team and project management to achieve a common goal
- Responsible for requesting planning permission and advice for the new government building and legal department.
- Responsible for surveying / measuring the land using a variety of specialized technical equipment such as theodolites, laser alignment devices and satellite positioning systems et al.
- Responsible for presenting data to clients
- Responsible for producing and advising on plans and construction plans
- Responsible for advising on technical matters and if construction plans are feasible
Lawyer / Company Secretary
- Responsible for drafting contracts and other legal documents for the company
- Consult and handle all corporate legal processes (e.g. intellectual property, merger acquisitions, financial / securities offerings, compliance issues, transactions, settlements, lawsuits and patents, etc.)
- Develops the company’s policy and position on legal matters
- Investigate, anticipate and protect the company against legal risks
- Represents the company in legal proceedings (administrative boards, judicial trials, etc.)
- Participates in the negotiation of commercial agreements and takes minutes of meetings
- Responsible for analyzing legal documents on behalf of the company
- Prepare annual reports for the company
Administrator and Human Resources Manager
- Responsible for supervising the proper functioning of administrative and human resources tasks for the organization
- Define jobs for recruiting and managing the interview process
- Conduct staff induction for new team members
- Responsible for the training, evaluation and assessment of employees
- Responsible for organizing the, meetings and appointments
- Supervises the smooth running of the daily activities of the office.
- Identify, prioritize and communicate with new partners, and business opportunities and others
- Responsible for overseeing implementation, advocating for client needs, and communicating with clients
- Develop, execute and evaluate new plans to expand sales growth
- Document all customer contacts and information (manage the company’s CRM system)
- Represents the company in strategic meetings with government agencies, private sectors and contractors
- Helps increase sales and company growth
- Responsible for preparing financial reports, budgets and financial statements for the organization
- Responsible for financial forecasts and risk analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for managing payroll
- Ensures compliance with tax legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Front Desk / Customer Service Officer
- Receive visitors / customers on behalf of the organization
- Receive packages / documents for the company
- Responds to email inquiries and phone calls for the organization
- Distribute emails in the organization
- Handles any other tasks assigned by the line manager
MARKET ANALYSIS Construction Business Plan Template Sample
- Market trends
The trend in the construction industry is that construction companies are always coming out with processes that will help them achieve more in a short period of time; Construction jobs can be time consuming, especially building 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 does all the lobbying and horse trading to ensure they get government contracts.
Sure, there are plenty of large investors who have interests in the construction industry, but one thing is for certain, there is enough space to accommodate both large construction companies and small construction companies.
What smaller construction companies must do to survive in the industry is to focus on the development of farms, schools, hospitals and hotels, among others, before bidding on large construction contracts such as road construction, bridge construction, construction of dams and skyscrapers, etc. p77>
Another obvious trend in the construction industry is the subleasing of contracts. It is now obvious that construction giants are leveraging their brands to win contracts and in some cases, having won the contract, they will continue to sublet the contract to a smaller construction company that they trust they can deliver to execute the project to. an agreed fee that will be good enough for both parties to make a profit. Smaller construction companies are positioned to take advantage of those opportunities once they present themselves.
- Target market
Our target market spans governments of all levels and countries, the organized private sector, and people of different classes and from all walks of life. We know that our outlets will be our excellent and timely delivery of construction projects using global best practices.
We will start with the local market, people, organizations, and the Michigan government, but we hope to expand our networks to customers in other states in the US and later in other countries around the world. Shannon Berg Construction Company will be known for working with smaller clients (multiple people) and for working for larger clients (multiple governments and the organized private sector). Below is a list of the individuals and organizations for whom we have specifically designed our services;
- Organized Private Sector (Corporate Organizations)
- Land Owners
- Businessmen and women
- University campuses
- Foreign investors who are interested in owning property in the United States of America
- The government of the United States of America (government contracts)
- The governments of other nations of the world
We are well aware that there are large investors and construction companies that are recognized in the construction industry, and we may have to compete with them when it comes time to bid on hefty government contracts.
It could be challenging to compete as a newbie in the construction industry, especially in a highly organized market like the United States of America, which is why we were deliberate in choosing our board members. limited to the harvest of highly experienced professions who are members of our management team, but also members of our board.
Our board members are highly respected professionals in the United States who have served the United States government in various capacities; people who are expert business gurus and people who have the right connections and experience to make things happen with little to no struggle. For us, it is in fact part of the competitive advantage that we are bringing to the market.
Another positive aspect for Shannon Berg Construction Company is the fact that our CEO / President is a renowned civil engineer, he has solid experience in the construction industry and has worked extensively as a senior project manager for one of the construction companies. leaders in the world.
He is sure to bring his expertise, experience, and network (connections) to make Shannon Berg Construction Company one of the leading construction brands in Grand Rapids, Michigan, and also an active player in the global construction market.
SALES AND MARKETING STRATEGY Construction Business Plan Template Example
We have been able to clearly define our target market and have documented it in our construction marketing plan, we know how to get them to hire our services, so we have decided to adopt some of the winning formulas that construction giants use to win important construction contracts .
We know that you will take different marketing and sales strategies. to win small clients and big clients. For instance; There are requirements that a construction company would hate to meet before being awarded a government contract. We have established all of these factors before creating a viable sales and marketing strategy for Shannon Berg Construction Company.
Shannon Berg Construction Company is fully aware of the red tape and horse trade that exists in bidding for construction contracts from the government and even the organized private sector, which is why we were able to establish protocols to hire some of the best business developers to handle our sales and marketing.
Without a doubt, our sales and marketing team will be recruited based on their vast experience in the construction industry and their ability to adapt to our business model. We are going to put more emphasis on training all of our employees to give them everything they need to help the company achieve its objective and goals.
Our goal is to become one of the leading construction companies. in Grand Rapids, Michigan, and we know we can achieve this by ensuring that our sales and marketing team meets their stated goals, Shannon Berg Construction Company will adopt the following sales and marketing strategies:
- Introduce our business by sending cover letters along with our brochure to all corporate organizations and government offices in Grand Rapids, Michigan and other states in the USA.
- Speed in bidding for contracts
- Advertise our business in real estate / property magazines and websites
- List our business in the yellow pages
- Promote our business on satellite television stations and radio stations.
- Attend exhibitions, seminars, and trade shows, etc.
- Create different packages for different categories of clients to work with their budgets and still deliver quality homes / properties
- Take advantage of the Internet (social media platforms and our official websites) to promote our business
Sources of Income
Shannon Berg Construction Company was established with the goal of maximizing profits through the delivery of quality and standard construction work for our highly esteemed clients. We will ensure that we generate income from all available means within the construction industry. Below are the sources we intend to explore to generate income for Shannon Berg Construction Company;
- Road construction
- Bridge construction
- Dam construction
- Construction of airports and heliports
- Construction of seaports
- Skyscraper construction
- Farm construction
- Construction of public facilities (hospitals, schools, shopping centers), office complexes and industrial facilities and others)
- Construction of residential apartments
- Property renovation services
- Construction consulting and advisory services
It is important to state that our sales forecast is based on the data collected during our feasibility studies and also on some of the assumptions readily available in the field. We have a relationship with major stakeholders in the real estate and construction industry in Grand Rapids, Michigan and also in the US states, and we are confident of securing key construction contracts to start the business. Below are the projections we were able to make during Shannon Berg Construction Company’s first three years;
- First year: $ 2,000,000
- Second year: $ 3,500,000
- Third year: $ 5,000,000
NB : this projection is made based on what can be obtained in the industry and with the assumption that everything will facilitate the flow of construction contracts. Based on our calculations, we are likely to make a minimum of 30 percent profit after the task of executing key construction projects.
Part of the business strategy is to ensure that we work within our clients’ budget to deliver world-class, excellent construction projects. We are well aware that there are large players in the construction industry in the United States of America who are not interested in small businesses and that is why we have positioned Shannon Berg Construction Company to take on such contracts.
While our prices may not be outrageously lower than what you get in the industry, we expect any price we bill our clients to be among the lowest they can get in the industry. The fact that we are going to bill our clients below what is obtainable in the industry will in no way affect the quality of our construction projects.
- Payment options
Our payment policy at Shannon Berg Construction Company is comprehensive because we are well aware that different people prefer different payment options as it suits them, but at the same time, we will not accept cash payments due to the volume of cash that will be involved in most our transactions. These are the payment options that we will make available to our clients;
- Payment by bank transfer
- Payment by online bank transfer
- Payment by check
- Payment by bank draft
In view of the above, we have chosen banking platforms that will help us achieve our plans without any itchiness.
Construction business plan template example Advertising and publicity strategy
We have been able to work with our consultants to help us map out advertising and advertising strategies that help us reach the heart of our target market. First of all, we want our brands to be visible and well communicated, so our advertising strategy has been well designed to help us achieve our business goals and objectives.
All of our advertising materials and jingles are made by some of the best hands in the industry. Below are the platforms we intend to leverage to promote and advertise our property development business;
- Place ads on print and electronic media platforms
- Sponsor relevant TV shows
- Use our company website to promote our business
- Take advantage of internet and social media platforms such as; Instagram, Facebook, Twitter, LinkedIn, Badoo, Google+ and others
- Install our billboards in strategic locations
Construction business plan template sample Financial projections and costs
- The total fee to incorporate the business in New York: $ 750.
- The budget for liability, permit and license insurance: $ 5,000
- Amount Needed to Purchase A Adequate Facility with Sufficient Space in Grand Rapids, Michigan (including Facility Rebuild): $ 500,000.
- The cost of office equipment (computers, printers, fax machines, furniture, telephones, filing cabinets, electronic and security devices, etc.): $ 15,000
- The cost of purchasing heavy duty construction equipment: $ 2,000,000
- The cost of launching a website: $ 600
- Additional expenses (business cards, signage, advertisements and promotions and others): $ 5,000
- Capital work (mutual fund): $ 3,000,000 (3 million US dollars)
Based on our investigation report and feasibility studies, we will need about $ 7,000,000 ($ 7 million) to establish a construction company in Grand Rapids, Michigan. It is important to state that most of the heavy construction equipment that we will work with will be leased. This is necessary because some of this equipment is really expensive and it will not be economical for us to buy it from the beginning.
Generation of financing / start-up capital for Shannon Berg Construction Company
- Chief Executive Officer / President Engr.Shannon Berg will generate 20% of the initial capital from his personal savings and the sale of his shares
- 30% of the capital will be generated from key partners (Nani David, Lois Scotland and Christopher Parkston)
- 50% of the capital will be obtained from the banks
CONSTRUCTION BUSINESS GROWTH: Sustainability and expansion strategy
Shannon Berg Construction Company was established with the goal of building a company that outperforms the founders and partners; a construction company that will have an active presence in the main cities of the world. Part of the company’s vision is to hand over the company’s baton from one generation to the next; therefore, we have refined our plans to establish the correct structures that will help our succession plan.
To position the company for growth, we have been able to create strong partnerships with the government of the United States of America, the organized private sector, and construction giants. We are optimistic that we will continue to execute construction contracts for our clients.
Our marketing team will continue to obtain the necessary support and encouragement to be able to meet the objectives and goals established for the organization, and we will continue to improve our processes and structure to meet the changing trend in the construction industry.
Lastly, we will not compromise on taking calculated business risks when it comes to bidding on larger government contracts and taking on new business challenges and new business frontiers.
Checklist / milestone
- Business name availability check: Completed
- Business Incorporation: Completed
- Opening of corporate bank accounts at various banks in the United States: Completed
- Opening of online payment platforms: Completed
- Request and obtain taxpayer identification: In progress
- Business Permit and License Application: Completed
- Purchase of all forms of business insurance: Completed
- New York City Office Facility Rental: Completed
- Conduct of feasibility studies: Completed
- Generation of capital from CEO and business partners: Completed
- Loan applications from our bankers: In progress
- Drafting the business plan: Completed
Drafting the employee handbook: Completed
- Drafting of contractual documents (lease agreements and others), and other relevant legal documents: In progress
- Company Logo Design: Completed
- Graphic designs and printing of packaging marketing / promotional materials: Completed
- Employee hiring: In progress
- Purchase of necessary furniture, office equipment, electronics and facelift facilities: In progress
- Acquisition of heavy construction equipment: In progress
- Creation of an official website for Business: In progress
- Building Awareness for Business (Commercial PR): In progress
- Health and Safety and Fire Safety Agreement: In progress
- Establishment of business relationships with key players in the industry (networking and membership of relevant construction bodies): Completed