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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

  • Custom home building/design build
  • Home remodeling and renovation
  • Project Management
  • Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

  • Friendly and knowledgeable contractors who are able to take any project from concept to reality.
  • Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

  • Trucks: $40,000
  • Construction equipment, supplies, and materials: $100,000
  • Advertising agency in charge of promotions: $10,000
  • Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
  • Working capital: $10,000

financial projection construction business

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

  • Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
  • Located a small office space to have a physical address for the company as well as a receptionist.
  • Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
  • Began pricing out costs for trucks and necessary construction equipment.
  • Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

  • Households in search of home remodeling services
  • Landowners who would like to build homes on their lots
  • Architects who have clients that need home building or remodeling services
  • Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

  • Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
  • Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

  • Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
  • Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
  • Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
  • Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
  • Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Monthly Average Contract Amount: $20,000
  • Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

  • How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

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How To Write a Winning Construction Company Business Plan + Template

Business Plan-TB

Creating a business plan is essential for any business, but it can be especially helpful for construction company businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every construction company business owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is a construction company business plan.

A construction company business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Construction Company Business Plan?

A construction company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Construction Company Business Plan

The following are the key components of a successful construction company business plan:

Executive Summary

The executive summary of a construction company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your construction company
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your construction firm, mention this.

You will also include information about your chosen construction company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a construction company business plan. Conduct thorough market research to determine industry trends and document the size of your market. Questions to answer include:

  • What part of the construction industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a construction company business’ customers may include:

  • Businesses (e.g., office complexes, restaurants, retail stores)
  • General contractors
  • Other construction companies

As you conduct your customer analysis, keep in mind that your target customers may not be aware of your company or product right away. You will need to have a marketing strategy to reach them and get them interested.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or construction company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your construction company business via word-of-mouth.

Operations Plan

This part of your construction company business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present. Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a construction company business include reaching $X in sales. Other examples include hiring a certain number of employees, signing up a certain number of customers, or completing a certain number of projects.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific construction industry. Include brief biography sketches for each team member. Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Construction Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Construction Company

Cash Flow Statement Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup construction business.

Sample Cash Flow Statement for a Startup Construction Company

Finish with an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any construction company. The tips we’ve provided in this article should help you write a winning business plan for your construction company.  

Finish Your Construction Business Plan in 1 Day!

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How to Start a Construction Business- A Step-by-Step Guide

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Free Construction Company Business Plan Template

  • November 21, 2023

13 Min Read

start a construction business

  •   Startup costs: $53,100- $245,200
  • Industry trend: Growing
  • Difficulty: Moderately difficult
  • Profitability: 2-10%
  • Time to build: 3-6 months
  • Commitment: Full-time

Thousands of construction businesses start every year. However, most of these businesses fail before marking their first decade in the industry.

As someone said, being good at construction isn’t the same as being good at running a construction business. To stand tight in the competition you need to consistently offer quality services all while facing the challenges thrown at you by the uncertain environment.

Since you are here, you are thinking of translating your passion for construction into a profitable business venture.

Well, we will help you out. This article offers a step-by-step guide to help you plan, prepare, and equip for starting your construction business.

So let’s get started.

How much money do you need to start a construction business?

It takes approximately $53,100- $245,200 to start a mid-sized construction company in the USA. A variety of factors such as equipment cost, licensing fees, lease rental expenses, and cost of raw materials factor in to determine the exact costs.

Pros and Cons of Starting a Construction Company

Construction is one of the top industries suitable for startups. Yet, there are disadvantages as well to starting a business in a construction segment.

  • Diverse opportunities: Extensive marketplace and numerous business opportunities.
  • High demand: There is a high demand for construction jobs across the state.
  • High profits: Expect lucrative profit margins after getting established.
  • Extremely competitive: Competitive marketplace with more than a million players.
  • Regulatory challenges: Heavily regulated industry with tons of compliance requirements.
  • Risk and liability: Risky job work and large liabilities.

Step-by-step Guide to Start a Construction Company

Table of Contents

  • Research About The Construction Industry
  • Select A Construction Business Type
  • Brainstorm A Business Name
  • Find The Right Location For Your Business
  • Write A Construction Business Plan
  • Register Your Construction Business
  • Apply For Construction Licenses
  • Get Business Insurance
  • Apply For A Bank Account And Credit Card
  • Fund Your Business
  • Build A Team
  • Purchase Necessary Construction Equipment
  • Prepare To Launch Your Business

Rome wasn’t built in a night and the same stands true for your construction startup. This step-by-step guide offers a roadmap to starting your own business.

1. Research About the Construction Industry

Of course, a solid level of industry research is required before you can set up your own construction company.

But how? How do you conduct industry research that’s comprehensive and insightful?

Pick high-quality data from authoritative websites and industrial publications. This data is usually gathered using ground-level research methodologies and is precisely accurate.

Now, the Internet is filled with plenty of information. But not everything you read there is reliable. So here are a few sources that can help you gather quality and relevant research base for further study.

  • US Census Bureau: Get construction-related data for construction spending, housing statistics, building permits, etc.
  • Bureau of Labor Statistics (BLS): Specific data source for employment, wages, productivity, and safety in the construction sector.
  • Construction industry publications: Check out ENR, CII, NAHB- economics and housing policy, construct connect, etc. to get valuable market analysis in the form of news, data, and publications.
  • Local industry publications: Gather data from local publications and magazines.
  • US Small Business Administration: Has a variety of tools and data for small businesses to grow your construction company.

Starting your own construction business is challenging in this competitive industry. A thorough industry and market research will help you understand the industry from a macro and micro point of view.

Moreover, this research will form the foundational base for setting up a well-planned and equipped construction business.

2. Select a Construction Business Type

So you want to step into a construction market. But do you know that the construction industry is worth 1.8 trillion dollars?

You cannot start a construction company in this humongous market without a niche.

Identify the promising segments in the construction sector and pick your business type.

Here are a few different construction business models you can explore:

  • Residential construction
  • Industrial construction
  • Government construction
  • Commercial Construction
  • Infrastructure construction
  • General contracting

Each of these construction projects presents different opportunities. Considering the demand, profit opportunities, growth potential, and entry access a construction type for your business.

3. Brainstorm a Business Name

A business name is your identity. So ideally you should pick a name that encapsulates your company’s services, objectives, and core values.

Sometimes, famous contractors choose to operate their construction companies under their name. However, since you are still starting out, here are a few suggestions to keep in mind while naming your construction company.

  • Choose a small, catchy, and unique name.
  • Choose a name that highlights your services or construction niche.
  • Check the domain name availability for the names you have shortlisted.
  • Check out the state regulations for naming your business, if there are any.
  • Try to include keywords in your name. This will help boost SEO while developing your online presence.
  • Take suggestions from tools like online name generators, ChatGPT, etc.

Get opinions from friends, family, and relatives before finalizing the name. You can also hire professionals to help you name the business.

start up construction business plan

Want a Unique Name for your Construction Business?

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4. Find the Right Location for Your Business

Most construction companies initially start with a home location to avoid monthly rental expenses. If that’s the case, you don’t need to worry about picking a location.

However, if you are planning for a physical setup of your company, finding a suitable location is a bit of a chore.

Here are a few things to keep in mind while choosing a place:

  • Buying or renting a company property
  • The scale of business operations
  • Lease rental policies at a particular location
  • Renovation, modification, and decoration needed to transform it into a functional office
  • Available tax benefits

Finalize the location or at least start looking for one after studying the government rules and regulations.

5. Write a Construction Business Plan

A quality business plan offers a roadmap to form a successful business. It also identifies the potential gaps and blind spots in your planning to make it rock solid.

Regardless of what type of construction company you plan to start, your business plan should include the following components.

  • Executive summary
  • Company Overview
  • Market research and analysis
  • Construction services
  • Sales and marketing strategy
  • Construction company operations
  • Management team
  • Financial plan

Writing this entire plan with exact precision takes a lot of effort. So keep aside some time and invest your resources in quality research and tools to make an actionable construction company business plan .

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6. Register Your Construction Business

Before starting any formal projects, you need to register your business with a state. This will separate your business from you and make it a legal entity.

Follow these steps to register your construction company and make it a separate legal entity:

Select a business entity

First things first, select a business entity for your construction company. The entity you choose will determine the business strategy, liabilities, taxes, filing fees, and state taxes of a company.

Here are a few business entity options for you to explore:

  • Sole proprietorship
  • Limited Liability Company
  • Corporation
  • Limited partnership
  • Limited liability partnership

Evaluate the pros and cons of choosing a particular business structure before registering. Generally, LLC is an ideal choice for construction businesses as it will secure your personal assets against business liabilities.

Research and identify the documents required to register a particular type of entity.

Apply for tax registration & business EIN

Tax registration requirements vary depending on the type of construction business and state you will operate from.

Head over to the IRS and apply for your employer identification number (EIN). EIN is a 9-digit federal tax ID that will be required to pay business taxes, open a business bank account, and apply for a loan and business license.

After registering your business, take a step further and apply for essential licenses and permits for your construction business.

7. Apply for Construction Licenses and Permits

Construction is a heavily regulated industry. To ensure that your operations are legal, you need to apply for various business licenses and permits as regulated by federal rules. You also need to check state and local government guidelines for construction industries in your area.

Here are a few business licenses that are commonly required for construction companies:

  • General contractor’s license: Almost every state requires you to have a general contractor license to undertake construction work.
  • Specialty contractors license: You will require specialized licenses for business works like HVAC, plumbing, roofing, electrical, painting, etc. Depending on your service offerings, identify if you require some of these licenses.
  • Zoning permits:   Check the zoning ordinances in your area and ensure that your business location is legal for undertaking construction work.

Check the state-wise requirements and federal regulations for required licenses and permits on the official SBA website. To check all the requirements implied by the local government, contact the state contractor’s board.

If you want to get government contracts, you would have to take a special license for that as well.

Be very particular at this stage. Missing out on any compliance requirements can result in heavy fines and closure by the government.

8. Get Business Insurance

A variety of risks encircles the construction industry. You simply cannot afford to have an uninsured business in case of casualties.

Again, check the insurance requirements for construction companies as issued by state and local governments.

Check out these common insurance policies required in the construction field:

  • Workers compensation insurance
  • Property insurance
  • Unemployment insurance
  • Builder’s risk insurance
  • General liability insurance
  • State disability insurance
  • Vehicle insurance

According to government regulations you need general liability insurance, property insurance, and worker’s insurance compulsorily.

However, it’s ideal to get all-round coverage to insure your business against all the possible risks and casualties.

9. Apply for a Bank Account and Business Credit Cards

Even if the business operations are of small scale initially, it is advisable to keep your personal and work accounts separate. If you don’t maintain separate accounting, you are likely to risk your personal assets.

Moreover, having a business bank account makes the process of filing taxes much more effective and efficient.

Now, remember the EIN number we got while registering the business? Using that EIN you can open a bank account for your business and apply for credit cards.

As a business owner in the construction segment, you would require loan and credit facilities, time and again. A credit card will help you build a strong credit history making you eligible for different loans and credit.

Sort out these formalities before you start signing the construction contracts.

10. Fund Your Business

It takes a lot of money to start even a mid-sized construction company. Bootstrapping is not always the option and you may have to secure funding from outside.

After considering your funding requirements, here are a few funding sources you can explore:

  • Bank loans: This is the commonly used method to acquire a loan. However, it has its limitations, and loan requests can be rejected if proper documents aren’t presented.
  • SBA loans: With SBA acting as a guarantor, you can acquire SBA-guaranteed loans with higher limits, and lower interest rates for a long duration. These small business loans are specially designed for small business owners in the USA.
  • Government grants:  Avail of different government grants by checking the eligibility. This can help you bring down the capital needs.
  • Friends and family: Seek personal loans from friends and relatives and get the funds at relatively lower rates of interest.
  • Construction-specific loans: A construction business can also explore funding options like working capital loans, equipment loans, vendor financing agreements, etc.

Be it direct or indirect, these funding methods can help you get the money to build a successful business.

11. Build a Team

A business owner alone cannot make the company successful. You need a solid team to translate the construction ideas into completed projects.

While making a business plan, you must have identified the requirements for staff and employees. From project managers to construction workers, and equipment operators, a variety of people will contribute together to make a team.

Now take that plan and use it as a reference point to make hiring decisions.

Use various platforms like Glassdoor, ZipRecruiter, and others to hire employees. However, for part-time blue-collar jobs, you can use contractors’ contacts.

12. Purchase Necessary Construction Equipment

Maybe not a hundred, but you do require plenty of tools and equipment to equip a new construction company. At this stage, you have a choice to make: Rent equipment or purchase equipment.

Heavy equipment is also available on lease making it a feasible choice for construction owners.

The list of equipment and machinery gets pretty exhaustive. However, here are a few essentials you definitely require to complete construction tasks:

  • Heavy equipment: bulldozers, excavators, loaders, compactors, etc.
  • Material handling equipment: Crane, forklift, elevators, etc.
  • Power tools: Drills, saws, grinders, etc.
  • Concrete equipment: Concrete mixers, concrete pumps, vibrators, etc.
  • Hand tools: Hammers, screwdrivers, pliers, etc.
  • Safety equipment
  • Electrical tools
  • Welding and metalworking tools

The business’s future success relies largely on the quality of equipment and tools that a company has. Evaluate your financial position and make informed choices.

13. Prepare to Launch Your Business

You are all equipped to start a construction company. But hey, you still need to figure out a solid plan to launch your new business.  Here are a few things to keep in mind as you start planning the grand launch:

Develop a marketing plan

In this stage lay out a clear marketing plan using your market research and ensure that it answers the following:

  • The budget for marketing activities
  • Marketing channels to reach your potential customers
  • Social media platforms populated by your target market

Also, consider the marketing methods adopted by local companies to reach their target market. Also, keep in mind that the marketing efforts should reflect the value proposition of your construction company.

Build a website

A website is not a choice anymore. Even if you wish to operate locally, you need a website and a spectacular online presence

Now, you can hire a developer to build an entire website for you. If not, invest some time and build a website on your own.

Start by getting a domain name and choose your hosting provider. Build your website using a website builder and launch it.

That’s not it. Start working on SEO, create your GMB profile, and run paid ads to strengthen your online presence.

Now that you have figured out all the steps to start your own business, it’s time to work on your construction business plan. A forward-thinking, actionable plan will help you capture the local market and expand as the business grows.

Ready to start? Download our construction business plan sample and use it as a reference point to build your business.

Additional Resources in the Construction Industry

  • Construction Industry Institute (CII)
  • Engineering News-Record (ENR)
  • National Association of Home Builders (NAHB)

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

Is starting a construction company a good idea.

Absolutely yes. The demand for construction jobs is never getting slow and if you have the means and resources to offer quality services, you are in to earn good money. However, consider the demand in your local market before finalizing the location for your construction operations.

What is the most profitable construction business to own?

Businesses in commercial and industrial construction offer generous rewards. However, residential construction, especially sustainable and green construction, is excessively in demand. Also, there is a good scope for government projects in the construction field.

How do I secure funding for my construction business?

There are a variety of ways to secure initial funding for construction businesses:

  • SBA guaranteed loans
  • Vendor financing agreement
  • Angel investors
  • Venture capitalist firms
  • Friends and families

What kind of insurance is necessary for my construction business?

Construction is a high-risk industry. It is important to insure your new business against potential risks and casualties.

Here are a few insurance policies you can consider getting for your business:

What are the common challenges in a construction business?

The most common challenges faced by businesses in construction are labor and material shortages. Other than that, the changes in the political and legal environment, dynamic price changes in the cost of raw materials, and safety hazards are a few other challenges that are common in this industry.

Is it necessary to have construction experience to start a business in the field?

Yes. Having prior experience will help you understand the complex nuances of the construction market space. If you want to enter a construction market without any prior experience, it is advisable to have advisors or key management members with prior expertise in the construction field.

About the Author

start up construction business plan

Kruti is a passionate and skilled writer with a knack for business management. She loves to talk and write about small business, startups, business growth, and planning. Besides writing, she loves to read and explore the world. Read more

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How to Start a Construction Company

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There’s a lot that goes into learning how to start a construction company, and not just on the financial side. You’ll have to come up with a great business plan, wade through local and state registration, find great staff, and come up with a marketing strategy that sets your business apart.

No matter how you start your construction company, there are a few basic financial and business tenets you’ll need to know if you want to be successful. Here’s what to focus on, and how to make sure you build your construction company on a solid foundation.

start up construction business plan

Draft a business plan

Every successful business has to begin with a solid business plan. Your business plan does more than just commit your company’s vision to paper—it helps you make sure that the fundamental ideas behind your company make sense, and can lead to real revenue. You’ll know exactly how, when, and why you’re starting your business, as well as the steps you intend to take to make it happen.

In this regard, how you start a construction company is the same as you would any other business venture. You create a plan, refine it, show it to other business leaders or mentors you trust, and make refinements along the way. Plus, you’ll need to have a business plan for loans, should you decide to take one out later down the line.

Drafting a business plan isn’t too challenging, even if you don’t consider yourself to be a writing whiz. Most business plans follow a specific template, which takes some of the guesswork out of the process. So long as you follow the steps for writing a business plan, your experience shouldn’t be too painful.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Register your business

Once you’ve completed a business plan you’re happy with, you’ll need to look into the rules, licenses, and registrations required within your business’ location. The construction industry’s requirements make starting a business a unique procedure. Your state, county, or town may have specific laws in place, which means you should make sure you’re fully aware of everything you need to do to get going. But here are a few overarching considerations to start with as a baseline.

Deciding on a business entity

Registering a business entity is the first real step toward making your company real. There are several ways to register your construction company, or any company for that matter. But the most common and straightforward option is often to form a limited liability corporation (LLC).

LLCs provide you with easy options for paying business taxes, while also covering your personal assets in case your business goes into debt or faces legal issues. There are a few different kinds of LLCs available to you as well—some are as small as a single-owner structure that lets you pay your business taxes straight from your personal filing, and others that create more structure and allow for several business partners to draw annual salaries.

Applying for licenses

It’s almost certain that your municipality requires construction companies to have specific licenses to work within their boundaries. Some may be as simple as being a recognized contractor within the town, county, or state.

Others may be more specific, such as licenses to install HVAC equipment or do other subcontracting work. You may also need licenses and permits to bid on government contracts, which vary based on where you operate.

Insure your business

Insuring your construction company is just as important as registering it. Construction is an inherently danger-prone business, given that you’re working with heavy machinery, electricity, and all sorts of other equipment that could do a fair bit of damage.

Business insurance

Most construction companies need at least one kind of business insurance to stay on the right side of the law. General liability insurance for contractors is a must, as this protects you against worksite injuries, accidents, and other mishaps that could otherwise leave you with hefty bills (or even legal liability issues, depending on your circumstances).

You’ll also want to look into vehicle and property insurance policies to make sure your company’s machinery and equipment are covered in case of an unforeseen issue.

Employee-related insurance

If you plan to hire workers directly as part of your construction company, you’re going to need three major forms of insurance: workers compensation , unemployment, and state disability insurance.

Workers compensation helps your employees cover bills and expenses if they’re hurt on the job, and provides them with coverage for medical costs and lost wages. Unemployment insurance helps cover employees who lose their jobs due to reasons beyond their control—such as layoffs or the disbandment of a company. And state disability insurance provides employees with coverage in case they are no longer able to work but still need assistance paying bills and cost of living expenses.

Access small business loans and financing

Aside from asking how to start a construction company, you’ll likely want to know how to finance one, as well. After all, construction is an inherently costly endeavor in terms of overhead. You have to buy supplies, rent or purchase equipment, maintain your tools, and keep a fleet of vehicles running. And that’s only the beginning.

Thankfully there are several business construction loans out there that could come in handy as you start your construction company. Some offer tons of flexibility, such as a business line of credit . Others are designed to provide you with a bigger sum of cash at once, like Small Business Administration (SBA) loans. No matter your need, there’s a business loan out there that’ll help you fulfill it.

SBA loans are a great option for small businesses: they come with low interest rates, generous terms, and a wide range of loan amounts. Banks partner with the SBA to lend small businesses cash, while the SBA provides a guarantee of up to 85% of the loan’s total value. This guarantee means that the SBA will pay the bank up to 85% of what the borrower owes in the event that the company can’t pay.

These great terms come with a catch, however. SBA loans are notoriously hard to get: You’ll need to have a long personal credit history (and a good score), a ton of patience, and the diligence to wade through a heap of paperwork. But the cost savings make it all worth it if you’re approved. Here are a few of the most common SBA loans for construction companies.

1. The SBA 7(a) loan program

SBA 7(a) loans are one of the more popular options for most businesses. They offer up to $5 million and can be used for a variety of purposes. You can use an SBA 7(a) loan to increase your working capital, to refinance existing debts, or to renovate your offices. Plus, these loans come with interest rates that are far below what a conventional small business loan would cost you (and significantly less than a short-term loan).

2. The SBA microloan program

SBA microloans are great for entrepreneurs who may not need a massive amount of cash but still need access to capital. SBA microloans are made for small and new businesses seeking less than $50,000, and are designed to help these companies build out their budding enterprises. Microloan terms are fairly generous as well, as they allow the borrower to pay off the loan over the course of up to six years.

3. The SBA CDC/504 loan program

These loans are a bit different than the other two, insofar as they’re designed to help small businesses purchase major fixed assets (i.e. large equipment and commercial real estate). CDC loans provide up to $5.5 million to borrowers, and come with repayment terms of 10 or 20 years. This loan could be particularly helpful if you need help purchasing heavy machinery for your construction company.

Equipment financing

SBA loans aren’t the only options for small business owners to finance their company. In fact, there are plenty of loans out there that come with less stringent credit history requirements. Equipment financing is a particularly useful option for borrowers without a spotless or long-standing credit history. Equipment loans are designed to help business owners purchase machinery for their company. The loan amount is tied specifically to the cost of the equipment being purchased, and must only go to that purchase itself.

But in exchange for these terms, you’ll give up the collateral requirement that comes with most other loan types. The equipment’s value serves as collateral instead, which means the lender will repossess your machinery if you can’t make payments. This is a great option for businesses that are tight on cash but have a specific purchasing need.

» MORE: Best construction and heavy equipment financing options

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Business term loans

Term loans might be right for you if you don’t qualify for an SBA loan, or you need cash faster than the SBA loan process allows for. Term loans provide a lump sum to borrowers, which they can use for any of business purposes they deem fit. So long as you’ve been in business for a while, have a good personal credit score (and a business credit score), you’re likely to be a decent candidate.

These loans vary in interest rate, repayment terms, and the amount of money provided. You can work out these details with your lender and shop around offers to get the best value.

On a similar note...

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Construction Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Construction & Engineering Industry » Construction Business

Construction Business

Are you about starting a construction company ? If YES, here’s a complete sample construction business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a construction business. We also took it further by analyzing and drafting a sample construction marketing plan template backed up by actionable guerrilla marketing ideas for construction businesses. So let’s proceed to the business planning section.

A Sample Construction Company Business Plan Template

1. industry overview.

The construction industry can comfortably boast to be responsible for the infrastructural development of the world. As such, the development of any country or city can be said to be the handiwork of construction companies and other stakeholders.

In other words, all the edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers and massive structures that you see around are all products of the construction industry. Starting a construction business is capital intensive simply because of the type of heavy duty equipment that is required to carry out a construction project and also the cost of managing a large workforce.

Despite the fact that the construction industry requires huge start – up capital, the industry is highly profitable, especially if you have the expertise and capacity to deliver quality jobs. The major clients for construction companies are governments and the private sector.

Construction giants all over the world head towards developing countries, because they know that they are going to get juicy construction contracts there. Unlike in advanced economy, in developing countries and undeveloped world, there are loads of construction works to be done.

The fact that they have infrastructure deficit means that the government must be up and doing in terms of road constructions, bridge construction, public facility construction (hospitals, schools, office facilities and estates et al) and dams constructions.

After a war, the construction industry is one of the major stakeholders that contribute in the rebuilding of a country. In so doing, they work with governments in ensuring that basic infrastructures are restored and of course it will always ends up a win – win situation for both parties.

The government gets what they want and the construction company and contractors get good returns for delivering the projects.

Over and above, the success of a construction company to a larger extent depends on their relationship with the biggest clients in the industry; the government of any country. No doubt there is always enough construction contracts to go round as long as a construction company is competent and well positioned. They won’t lack construction contracts from both the government and the private sector.

2. Executive Summary

Shannon Berg Construction Company is an international construction company that has its headquarters in Grand Rapids, Michigan – USA. 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) in any part of the world.

Shannon Berg Construction Company will be specialized in the constructions of skyscrapers, bridges, stadiums, roads, dams, Office complex, shopping malls, schools, campuses and estates et al. As a matter of fact, we are going to be known for delivering world class structures all over the globe.

Creativity, excellence and timely completion of construction projects will be our signature. We intend starting our construction business on a small scale in Grand Rapids, Michigan, but we have a bigger picture – to have our presence in any part of the world that our clients wants us to work.  We hope to achieve this feat within the first 10 years of launching the company.

As part of our plans to make our highly esteemed customers our number one priority and to become a global construction brand, we have perfected plans and strategies that will enable us work with our clients in delivering projects that can favorably compete with the best in the industry at an affordable and reasonable price within the stipulated completion date barring any unforeseen circumstance.

Shannon Berg Construction Company is fully aware that starting a construction business requires huge capital base, which is why we have perfected plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any construction project that comes our way, as long as the project is duly commissioned by the required authority.

Shannon Berg Construction Company will be owned by the principal partner; Engr. Shannon Berg and other partners (Nani David, Lois Scotland and Christopher Parkston). They also have plans in the pipeline to sell the shares of the company in the nearest future to interested investors who would want to be part owners of the company.

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

Engr. Shannon Berg, Nani David, Lois Scotland and Christopher Parkston will be the major financier of the company. Nonetheless, we have made a concerted decision not to limit the number of investors with similar investment ideology that may want to invest in the business.

This is necessary in order for us to be able to retain financial flexibility. Ideally, our plan is that no investment will be less than $1,000,000, which would purchase a 1 percent equity position. It is our desire that all equity partners be limited partners.

3. Our Products and Services

Shannon Berg Construction Company is a construction company that is set to undertake both small construction projects and massive construction projects for governments, private sectors and for individuals which is why we do not intend to place limitations of the scope of the projects we handle and what we do.

We know that if we are good at what we do, it will make it 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 are listed below;

  • Road Construction
  • Bridge Construction
  • Dam construction
  • Airports and Helipads Construction
  • Seaports Construction
  • Skyscrapers construction
  • Estate construction
  • Public facility construction (hospitals, schools, shopping malls, office complexes and industrial facilities et al)
  • Construction of residential facilities
  • Property Makeover Services
  • Construction Consultancy and Advisory Services

4. Our Mission and Vision Statement

  • Our vision is to build a first class construction company that will have active presence in North America, South America, Africa and Asia.
  • 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 throughout the world realize their dreams of building a world class structure that can compete on a global stage with the best in the construction industry.

Our Business Structure

Shannon Berg Construction Company intend starting small from Grand Rapids, Michigan, but with a vision of growing the business to becoming a global construction brand with presence in all the continents of the world. In order to achieve this vision, we just have to position our company for growth and ensure that we hire dedicated and highly competent employees at all levels.

Shannon Berg Construction Company will ensure that we build a team that will work together towards achieving the company’s vision. We will build a business that has the right structures and process in place that can support growth; a business that runs on autopilot.

In view of the above, we have made provisions for the following position in our organization based on the size of the company we intend starting but as the business grows, we will create senior level positions and also create a structure that will support the business growth at every growth and expansion stage;

  • Chief Executive Officer (President)

Project Manager

Civil Engineer

  • Structural Engineer
  • Quantity Surveyor

Land Surveyor

Company’s Lawyer/Secretary

Admin and HR Manager

Business Developer

  • Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for the day to day running of the business
  • Responsible for handling high profile clients and deals
  • Responsible for fixing prices and signing business deals
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board
  • Responsible for the planning, management and coordinating all projects on behalf of the company
  • Supervises projects
  • Ensures compliance during project executions
  • Provides advice on the management of projects
  • Responsible for carrying out risk assessment
  • Using IT systems and software to keep track of people and progress of ongoing projects
  • Responsible for overseeing the accounting, costing and billing of every project
  • Represents the organization’s interest at various stakeholders meetings
  • Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
  • Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
  • Ensures that sites meet legal guidelines, and health and safety requirements
  • Assesses the environment impact and risks connected to projects
  • Responsible for judging whether projects are workable by assessing materials, costs and time requirements
  • Draws up blueprints, using Computer Aided Design (CAD) packages
  • Discussing requirements with the client and other professionals (e.g. architects and project managers et al)
  • Responsible for managing, directing and monitoring progress during each phase of a project
  • Responsible for creating building designs and highly detailed drawings both by using the hands and by using specialist computer – aided design (CAD) software
  • Works around constraining factors such as town planning legislation, environmental impact and project budget
  • Writes and presents reports, proposals, applications and contracts
  • Adapting plans according to circumstances and resolving any problems that may arise during construction
  • Works with project team and management to achieve a common goal
  • Responsible for applying for planning permission and advice from governmental new building and legal department.
  • Responsible for undertaking land surveys/measurements using a variety of specialist 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 about construction plans and drawings
  • Responsible for advising about technical matters and whether the construction plans are viable
  • Responsible for drawing up contracts and other legal documents for the company
  • Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/ securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
  • Develops company policy and position on legal issues
  • Researches, anticipate and guard company against legal risks
  • Represents company in legal proceedings (administrative boards, court trials et al)
  • Plays a part in business deals negotiation and take minutes of meetings
  • Responsible for analyzing legal documents on behalf of the company
  • Prepares annual reports for the company
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.
  • Identifies, prioritize, and reach out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact 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 growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for financial forecasting and risks analysis.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

  • Receives Visitors/clients on behalf of the organization
  • Receives parcels/documents for the company
  • Handles enquiries via e-mail and phone calls for the organization
  • Distributes mails in the organization
  • Handles any other duties as assigned the line manager

6. SWOT Analysis

Surviving in the business world as a construction company requires more than knowing how to deliver standard projects but also how to network with key people that matter; decision makers that can decide who a project is given to and all that.

We know that it will be a bit difficult to compete with already established construction companies in the United States especially because we are new in the industry.

In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of a Dr. Joe Whyte, a renowned HR and business consultants in the United States of America to help us run a SWOT analysis.

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.

With that, we will be able to map out strategies that will not only help us to survive in the industry but also to build a global construction brand. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Shannon Berg Construction Company;

Shannon Berg Construction Company can confidently boast of having a competent and highly experienced management team who are regarded as some of the best hands in Michigan.

Although we are a new construction company, but our president and board of trustee are respectable people in the United States of America who have served the US government in various capacity; we are a construction company that has the right network that is suitable for the kind of business we are into.

Well the fact that we are a new construction company could count as a weakness. It is normal for clients to think twice before awarding construction contracts to newbies in the industry.

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. We require huge financial base to be able to acquire some of the latest heavy duty construction equipment.

  • Opportunities:

Our business concept, our mission and vision puts us at an advantage in the industry. We will start small to build trust within Grand Rapids, Michigan and there are loads of opportunities for us there simply because we are well positioned to work with both the state government and the highly organized private sector.

Generally in the construction industry, both the already established construction companies and start – up construction companies are subject to threat from government policies, global economic downturn and unforeseen natural disasters (disasters that may cause setback).

These are the threats that we are likely going to face as a newbie construction company in Grand Rapids, Michigan. 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.

7. MARKET ANALYSIS

  • Market Trends

The trend in the construction industry is that construction companies are always coming out with processes that will help them achieve more within a short period; construction jobs can be time consuming especially the construction of massive infrastructures.

Most players in the construction industry are fully aware that the government of any country or state is the biggest clients they can get and they do all the lobbying and horse trading to ensure that they get government contracts.

No doubt there are loads of big time investors that have stakes in the construction industry, but one thing is certain, there is room big enough to accommodate both the big construction companies and the small construction companies.

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.

Another obvious trend in the construction industry is subletting of contracts. It is now obvious that construction giants leverage on their brands to win contracts and in some cases after they have won the contract.

They will go ahead to sublet the contract to smaller construction company that they trust can deliver to execute the project at an agreed fee that will be good enough for both parties to make profits. Smaller construction companies position themselves to be able to leverage on such opportunities once it present itself.

8. Our Target Market

Our target market cuts across governments at all levels and countries, the organized private sector and people of different class and from all walks of life. We know that our selling points 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 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.

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). Below is a list of the people and organizations that we have specifically designed our services for;

  • Organized private sector (Corporate organizations)
  • Land Owners
  • Businessmen and Businesswomen
  • University Campuses
  • Foreign investors who are interested in owning properties in the United States of America
  • The government of the United States of America (Government contracts)
  • The governments of other nations of the world

Our Competitive Advantage

We are quite aware that there are big – time investors and construction companies who are well recognized in the construction industry, and we maybe have to compete with them when it is time to bid for juicy government contracts.

It might be challenging competing as a newbie in the construction industry, especially in a highly organized market like that of the United States of America, which is why we were deliberate in choosing our board members. Our competitive advantage is not limited to the crop of highly experienced professions that are members of our management team but also our board members.

Our board members are highly respected professionals in the United States who have served the government of the United States at various capacities; people who are accomplished business gurus and people who have the right connections and experience to make things happen with little or no struggle. For us, it is indeed part of the competitive advantage that we are bringing to the market.

Another positive for Shannon Berg Construction Company is the fact that our Chief Executive Officer / President is a renowned Civil Engineer, he has robust experience in the construction industry and he has worked extensively as a senior project manager for one of the world’s leading construction companies.

He is sure going to bring is experience, expertise and network (connections) to make Shannon Berg Construction Company one of the leading construction brand in Grand Rapids, Michigan and also active player in the global construction market.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Shannon Berg Construction Company was established with the aim of maximizing profits through delivering quality and standard construction works for our highly esteemed clients. We will ensure that we generate income from every available means within the construction industry. Below are the sources we intend exploring to generate income for Shannon Berg Construction Company;

  • Construction of residential apartments

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

We have relationship with major stakeholders in the real estate and construction industry in Grand Rapids, Michigan and also in order states in the US and we are sure of getting key construction contracts to kick start of business. Below are the projections that we were able to come up with for the first three years of Shannon Berg Construction Company;

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

N.B : This projection is done based on what is obtainable in the industry and with the assumption that all things that will facilitate easy flow of construction contracts. From our calculations, we are likely going to make a minimum of 30 percent profits after task from executing key construction projects.

  • Marketing Strategy and Sales Strategy

We have been able to clearly define our target market and have documented this in our construction marketing plan. We know how to get them to hire our services which is why we have decided to adopt some of the winning formula that construction giants utilize to win major construction contracts.

We know that it will take different marketing and sales strategies to win small clients and bigger clients. For example; there are requirements a construction company would hate to meet before they can be awarded a government contract. We have put all these factors in place before creating a workable marketing and sales strategy for Shannon Berg Construction Company.

Shannon Berg Construction Company is fully aware of the bureaucracy and horse trading that exists in bidding for construction contracts from the government and even the organized private sector, which is why we were able to put protocols in place to hire some of the best business developer to handle our sales and marketing.

No doubt, our sales and marketing team will be recruited based on their vast experience in the construction industry and their ability to fit into our Business model. We are going to pay more emphasis in the training of all our employees so as to give them all they would need to help the company achieve its aim and objectives.

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 are delivering on set targets. Shannon Berg Construction Company will adopt the following marketing and sales strategies;

  • Introduce our business by sending introductory letters alongside our brochure to all the corporate organizations and government offices in Grand Rapids, Michigan and other States in the US.
  • Promptness in bidding for contracts
  • Advertise our business in real estate/properties magazines and websites
  • List our business on yellow pages
  • Promote our business on satellite TV stations and radio stations.
  • Attend expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/property to them
  • Leverage on the internet (social media platforms and our official websites) to promote our business

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. First and foremost, we want our brands to be visible and well communicated, which is why our publicity strategy have been well crafted to help us achieve our aims and business objectives.

All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our property development business;

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows
  • Utilize our company’s website in promoting our business
  • Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ et al
  • Install our Bill Boards on strategic locations

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent and world class construction projects.

We are quite aware that there are major players in the construction industry in the United States of America who are not interested in small business deals and that is why we have positioned Shannon Berg Construction Company to take on such contracts.

Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopefully that whatever price we bill our customer will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way going to affect the quality of our construction projects.

  • Payment Options

Our payment policy in Shannon Berg Construction Company is all inclusive because we are quite aware that different people prefer different payment options as it suits them, but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

  • The Total Fee for incorporating the Business in New York: $750.
  • The budget for Liability insurance, permits and license: $5,000
  • The Amount needed to acquire a suitable Facility with enough space in Grand Rapids, Michigan (Re – Construction of the facility inclusive): $500,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $15,000
  • The cost for acquiring heavy duty construction equipment: $2,000,000
  • The Cost of Launching a Website: $600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
  • Working capital (investment fund): $3,000,000 (3 Million US Dollar)

Going by the report from our research and feasibility studies, we will need about $7,000,000 (7 US Million Dollars) to set up a construction company in Grand Rapids, Michigan. It is important to state that most of the heavy duty construction equipment that we will work with will be leased.

This necessary because some of these equipment are really expensive and it won’t be economical for us to acquire them from the start.

Generating Funding/Startup Capital for Shannon Berg Construction Company

  • The Chief Executive Officer/President Engr. Shannon Berg will generate 20 percent of the start – up capital from his personal savings and sale of his stocks
  • 30% of the capital will be generated from key partners (Nani David, Lois Scotland and Christopher Parkston)
  • 50% of the capital will be sourced from banks

14. Sustainability and Expansion Strategy

Shannon Berg Construction Company was established with the aim of building a company that will outlive the founders and partners; a construction company that will have active presence in major cities in the world. Part of the vision of the company is to handover the baton of the company from one generation to generation; hence we have perfected our plans to put the right structures in place that will aid our succession plan.

In order to position of company for growth, we have been able to create strong partnerships with the government of the United States of America, 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 get the needed support and encouragement that they need to be able to deliver on set goals and targets for the organization, and we will continue to improve our processes and structure to meet up with the changing trend in the construction industry.

Lastly, we will not relent in taking calculated business risks when it comes to bidding for bigger government contracts and taking on new business challenges and new business frontiers.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Renting of Office Facility in New York City: Completed
  • Conducting Feasibility Studies: Completed
  • Generating capital from the CEO and Business Partners: Completed
  • Applications for Loan from our Bankers: In Progress
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents (Tenancy Agreements et al), and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Acquiring of heavy duty construction equipment: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry (networking and membership of relevant construction bodies): Completed.

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Construction Contractor Business Plan PDF Example

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  • May 10, 2024
  • Business Plan

the business plan template for a construction contractor

Creating a comprehensive business plan is crucial for launching and running a successful construction contractor business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your construction contractor business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a construction contractor business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your construction contractor business concept into reality. Let’s dive in!

Our construction contractor business plan is meticulously structured to include all essential aspects necessary for a robust strategy. It outlines the company’s operations, marketing strategy , market environment, competitors, management team, and financial projections.

  • Executive Summary : Presents an overview of your construction contractor business concept, including market analysis , management structure, and financial strategies.
  • Company Information: Describes the company’s foundation, areas of expertise in the construction industry, and the operational standards that define the business.
  • Services : Details the comprehensive range of construction services offered, from residential building to commercial projects, including any specialized services such as eco-friendly constructions or renovations.
  • Target Market : Outlines the specific demographic and geographic segments the company aims to serve, emphasizing any particular needs of these markets like affordability, durability, or luxury finishes.
  • Key Stats: Provides statistics on the construction industry’s size and growth trends relevant to your market area.
  • Key Trends: Identifies significant trends affecting the construction sector.
  • Key Competitors : Evaluates primary competitors in the area and outlines your competitive advantages.
  • SWOT : Conducts a Strengths, Weaknesses, Opportunities, and Threats analysis.
  • Marketing Plan : Outlines effective strategies for attracting and retaining clients.
  • Timeline : Lists key milestones and objectives from the start-up through the initial years of operation.
  • Management: Shares information about the management team, detailing who manages the company and their respective roles.
  • Financial Plan: Forecasts the company’s 5-year financial performance, including revenue, profits, and significant expenses.

the business plan template for a construction contractor business

Construction Contractor Business Plan

start up construction business plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your construction contractor’s business plan, offering a concise overview of your company and its services. It should detail your market positioning, the range of construction and remodeling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your construction business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your company’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your construction business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Construction Contractor Business Plan  exec summary

Dive deeper into Executive Summary

Business Overview

For a construction contractor, the Business Overview section can be concisely divided into 3 main slides:

Company Information & Location

Our construction company specializes in handling diverse projects, including residential, commercial, and industrial builds. Located strategically near major transport hubs, our headquarters offer easy access to key construction sites, providing logistical benefits and enhanced service delivery to our clientele.

Services & Specialization

We offer a comprehensive range of services from general contracting to specialized projects like energy-efficient constructions. Our expertise in custom designs and turnkey solutions sets us apart in the industry, ensuring high-quality project management and client satisfaction.

Target Market

Our target market includes homeowners, real estate developers, and public sector contracts. We cater to clients seeking reliable, high-quality construction services, with a focus on innovation and efficiency to meet the unique needs of each segment, ensuring we are the go-to contractor for diverse construction demands.

Make sure to cover here _ Company Information & Information _ Services & Specialization _ Target Market

start up construction business plan

Market Overview

Industry size & growth.

In the Market Overview of your construction contractor business plan, start by examining the size of the construction industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable building practices, energy-efficient homes, and smart technology integration in construction. For example, highlight the demand for green building certifications and the rising popularity of renovations that focus on improving energy efficiency.

Key Competitors

Then, consider the competitive landscape, which includes a range of construction firms from large-scale contractors to local small businesses, as well as the trend toward DIY home improvements. For example, emphasize what makes your company distinctive, whether it’s through advanced project management techniques, specialization in sustainable construction, or exceptional client relations.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Construction Contractor Business Plan  market overview

Dive deeper into Key competitors

First, conduct a SWOT analysis for the construction contractor , highlighting Strengths (such as advanced project management skills and a wide array of building services), Weaknesses (including dependency on the economic cycle and market competition), Opportunities (for example, growing trends in sustainable construction and smart home technologies), and Threats (such as potential economic recessions that may reduce investment in new construction projects).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, strong online presence, and community involvement. Focus on showcasing your company’s unique capabilities and successful project completions to build trust and credibility in the market.

Finally, create a detailed timeline that outlines critical milestones for the construction business’s project completions, marketing initiatives, client relationship building, and expansion objectives, ensuring the business progresses with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Construction Contractor Business Plan  strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the construction contractor business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the construction contractor business toward its financial and operational goals.

For your construction contractor business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Construction Contractor Business Plan  management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your construction contractor business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your construction contractor business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Construction Contractor Business Plan  financial plan

Privacy Overview

Construction Business Plans

Building construction business plan.

Concrete Installation, a start-up concrete form-work contractor, hopes to garner public construction contracts.

Commercial Contractor Business Plan

Twin Brothers Construction is a start-up provider of construction and renovation services for commercial properties.

Construction Business Plan

Fosse Commercial Contractors strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services.

Construction Carpenter Business Plan

Miles Garden Carpentry will expand its current new construction business market focus to include garden remodels for existing homes.

Construction Inspection Business Plan

Inspect A-bode provides house inspection and appraisal services.

Construction Manufacturer Business Plan

Fiberglass World is a start-up manufacturing company producing fiberglass panels for building construction.

Construction Repair Business Plan

HodgePodge Sealcoating Company repairs, fills, and reseals residential asphalt paved surfaces.

Formwork Construction Business Plan

Concrete Fabricators will take advantage of the current building boom, and become the premier concrete formwork provider in Oklahoma.

Gravel Rock Products Business Plan

Durango Gravel seeks to expand its existing market niche by becoming a major supplier to the asphalt paving companies in the Four Corners area.

Remodeling Business Plan

Comgate is an established producer of custom milled architectural woodwork, moldings, and doors.

Residential Remodeling Business Plan

Anywhere Remodeling is a full-service remodeling contractor.

You know how to design floor-plans, install drywall, lay down concrete, and whatever else it takes to build a home or office building. But do you know how to make an effective business plan? Luckily you can spend more time designing and building and less time planning, by starting with one of our construction business sample plans. Download and start building your business today.

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Plan template bundle, construction business plan template bundle, construction business continuity plan bundle, construction marketing business plan template bundle, construction business development plan template bundle, 32+ construction business plan templates, construction business plan template, free sample construction business plan template, general construction business plan template, sample residential construction business plan template, free simple construction business plan template, small construction business plan template, commercial construction business plan template, building construction business plan template, 5 year construction business plan template, construction and engineering business plan template, construction company business plan template, construction management business plan template, construction start-up business plan template, construction contractor business plan template, construction carpenter business plan template, construction marketing plan template, general contractor business plan with cover page, construction business plan template download, simple real estate business plan template, printable business plan outline template, printable business plan template, sample business plan in word, construction financial business plan template, construction small business plan template, operational construction business plan template, construction startup company business plan, construction management business plan, residential housing business plan template, how to create a construction business strategy plan, construction business plan with executive summary, building project construction business plan, construction business plan final proposal in pdf, create a construction business plan in 6 steps:, step 1: business description, step 2: goals and objectives, step 3: resources needed, step 4: strategies, step 5: financial statements, step 6: review and edit, final thoughts, general faqs, 1. what is a construction business plan, 2. what is the purpose of having a business plan, 3. who needs a construction business plan, 4. what must be included in a business plan, 5. mention the advantages of business plans, plan templates, free 32+ construction business plan templates.

In all the stages involved in getting to choose out mutual partners to accomplish your real estate small business plan , or getting to hire out contractors, a construction business plan might be the savior. It helps you in making the essential steps in mapping out a strategic achievement of construction goals. This is accomplished by incorporating project management plan tools available for users’ disposal.

start up construction business plan

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  • A brief history of your construction company
  • The customers, suppliers, and needs you have
  • A sheet summary of the growth of the company, including financial details
  • A brief of your long-term and short-term goals
  • Steps on how you will make profits.
  • Planning leads to practical and faster achievements in any company
  • It foresees the future
  • It acts as an added strength to a business action plan for steady growth and prosperity
  • It helps one be ready to face any unexpected situation that might crop up.

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Construction Business Plan Template

Construction financial plan.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 customers in the first year or 20? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your construction business’ office, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a client approached you with a $100,000 contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a construction business:

  • Purchases, which include tools, equipment, and input materials (the largest expense for construction companies)
  • Payroll or salaries paid to staff (27% of a typical construction company’s costs)
  • Business insurance
  • Rent and utilities
  • Taxes and permits
  • Legal expenses

CONSTRUCTION BUSINESS PLAN OUTLINE

  • Construction Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan
  • 10. Appendix
  • Construction Business Plan Summary

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    Business Overview. VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes.

  4. Writing A Construction Company Business Plan + Template

    A construction company business plan is a formal written document describing your company's business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if ...

  5. Construction Company Business Plan Template [Updated 2024 ]

    A construction company plan is an important document for acquiring funding and bank loans. Write an exceptional plan with this detailed guide and also check the free template that will ease your plan writing. Download Template. Create a Business Plan. Growing a construction company is much more difficult and taxing than completing projects.

  6. Construction Business Plan Template & Example [Updated 2024]

    Construction Company Business Plan Template. If you want to start a construction business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow all types of construction businesses, including commercial construction, building construction and residential construction.

  7. How to Start a Construction Company

    That is where a solid, thorough business plan will be to your advantage. Here are some of the areas you'll want to cover in your construction company business plan. Executive Summary: an overview of who you are, what you will do, and where you will do it, including: Introduction: describes the organization's goals and focus.

  8. Construction Business Plan Example

    Cash at End of Period. $22,548. $66,375. $141,831. Download This Plan. Explore a real-world construction business plan example and download a free template with this information to start writing your own business plan.

  9. Free Construction Company Business Plan for Business Owners

    A construction business plan is a document that outlines a construction company's goals, strategies, and financial projections. It provides a clear vision and direction for the company, secures funding, attracts potential clients, and guides decision-making and strategic planning. A well-written business plan can help a construction company ...

  10. How To Start a Construction Company Step-By-Step [2024]

    Create a Marketing Plan. Open Your Construction Business. 1. Choose the Name for Your Construction Company. The first step to starting a construction company is to choose your business name. This is a very important choice since your company name is your brand and will last for the lifetime of your business.

  11. Building a Solid Foundation: Construction Business Plan Template Guide

    A construction business plan serves as a comprehensive document that outlines the company's goals, target market, competitive analysis, marketing strategies, and financial projections. It helps construction startups establish a strong foundation, make informed decisions, and attract potential investors or lenders.

  12. Free Construction Business Plan Template + Example

    1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

  13. How to Start a Construction Business- A Step-by-Step Guide

    First things first, select a business entity for your construction company. The entity you choose will determine the business strategy, liabilities, taxes, filing fees, and state taxes of a company. Here are a few business entity options for you to explore: Sole proprietorship. Limited Liability Company.

  14. How to Write Construction Company Business Plan? Template & Guide

    Starting a successful building construction business begins with a well-structured business plan. Your plan should encompass your business goals, target market, niche, strategies, and financial ...

  15. Sample Construction Business Plan

    The construction business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your construction company as Growthink's Ultimate Construction Company Business Plan Template, but it can help you write an construction company business plan of your own.

  16. How to Start a Construction Company in 5 Steps

    Completing research first will make it much simpler to complete the next phase of the process — writing your business plan. 2. Write a Business Plan. All construction startups need a business plan to guide you through the process of starting your company, helping raise investment funds, getting approved for loans and more. Here are the steps ...

  17. Construction Business Plan: What You Need to Know

    A construction company business plan is a robust document that outlines the goals, strategies, and financial projections of your construction business. It serves as a blueprint to plan your company's operations and helps you make informed decisions. A well-written business plan provides clarity, identifies potential challenges, and sets a ...

  18. How to Start a Construction Company

    But the cost savings make it all worth it if you're approved. Here are a few of the most common SBA loans for construction companies. 1. The SBA 7 (a) loan program. SBA 7 (a) loans are one of ...

  19. Construction Company Business Plan [Sample Template]

    13. Startup Expenditure (Budget) The Total Fee for incorporating the Business in New York: $750. The budget for Liability insurance, permits and license: $5,000. The Amount needed to acquire a suitable Facility with enough space in Grand Rapids, Michigan (Re - Construction of the facility inclusive): $500,000.

  20. Construction Contractor Business Plan PDF Example

    The Plan. Our construction contractor business plan is meticulously structured to include all essential aspects necessary for a robust strategy. It outlines the company's operations, marketing strategy, market environment, competitors, management team, and financial projections. Executive Summary: Presents an overview of your construction ...

  21. PDF Free Version of Growthinks Construction Business Plan Template

    Sample from Growthink's Ultimate Construction Business Plan Template: [Company Name] will serve individuals building their own homes, architects, and real estate development companies in [company location] and the immediately surrounding area within a 20 mile radius. The area we serve is suburban, with 80% of residents being homeowners and 20 ...

  22. Building Construction Business Plan Example

    Explore a real-world building construction business plan example and download a free template with this information to start writing your own business plan. ... Start-up: Requirements: Start-up Expenses: Legal: $500 : Stationery etc. $100 : Brochures: $500 : Consultants: $1,000 : Insurance: $15,000 : Rent: $500 : Expensed equipment: $14,000 ...

  23. Construction Business Plan 101: 10 Tips for Success

    10 Tips for Writing an Effective Business Plan. Writing an effective business plan for your construction business is crucial to its success. Here are ten tips to consider as you begin crafting your plan: Research and Analysis: Start by conducting thorough research and analysis of the construction industry, your target market and your competitors.

  24. Construction Business Plans

    Twin Brothers Construction is a start-up provider of construction and renovation services for commercial properties. Construction Business Plan Fosse Commercial Contractors strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services.

  25. FREE 32+ Construction Business Plan Templates

    Size: A4, US. Download Now. With a clean lime-green design, this construction business plan sample is the right choice when starting a construction business. This template is also supported by Google Docs and man other file formats. This template will help you get the necessary details right as needed.

  26. Construction Financial Plan Template & Example

    Learn more about the construction financial plan section to quickly & easily create a great construction business plan for your startup or existing company. Construction Financial Plan Template & Example | Updated 2024