Whether you are a general contractor or a small renovation contractor, starting your own construction company can be a big undertaking. You’ll need a business plan to help steer you in the right direction. What special considerations should you bear in mind when writing a business plan for your construction company?
If you work in construction you’ll already understand the importance of planning when building and renovating, and planning your business is no different. Your business plan gives you the opportunity to outline your aims and goals, so that you know what you want and how you are going to get there. But there are lots of other things to think about too, and these things will ultimately help you reach your goals.
Who are your competitors in the local area? By researching this, you can find out who is doing what you are doing, what they are charging for it, where you fit in alongside them, and how you can do it better than them and reach your target market. If the market in your local area is particularly saturated with other people offering exactly the same thing, you may need to rethink your plan or think about how you are going to differentiate yourself.
There are a lot of overheads involved in the construction industry, and having a good cash flow is essential to keeping your business afloat. The finance section of your business plan will help you with this – as long as you are realistic with your current situation and your projections. You’ll also need to think about your target market when you consider your income. Can people in your area and target market afford the prices you will need to charge?
Rules and Regulations
Health and safety regulations are extremely important for construction companies, so you will need to think about how you are going to ensure you adhere to these and what impact they will have on your business. How will you ensure that your staff have the expertise to carry out every job safely? You will also need to consider your responsibilities in terms of building regulations and how you will address these. Showing that you have thought about this in your business plan will be reassuring to potential lenders and investors.
If a construction company is in your future, we can help you create a business plan - laying the foundations for you to build a successful business. Contact us online using the form on the right or call 01604 420 420 to find out more.