It’s all about making sure quality meets structure. And that’s exactly why you need to know how to create a construction business plan.
Just like all business plans, a construction business plan is of great importance. So, if you’re a project manager managing a group of plumbers, electricians, builders, carpenters, or architects, working on your latest fixer-upper or venturing on a new project, a well-written business plan is what you need to get the job done.
So, you may have the skills when it comes to project management, raising roofs, painting walls, or even designing top-notch modern living spaces, but if you don’t have the right plan tracking your every move from budgets to targets, you might just get lost in the noisy construction chaos.
Think of your construction business plan as an additional project that doesn’t really end in one go. In fact, it continues on for almost as long as your main project, just in a very different context. What we mean by that is that you’ll make a construction business plan at the start of your project and then continue to edit and switch it up based on your ongoing progress and deadlines.
So, now that we’ve covered some of the basics let’s catch you up to speed with just how to create a construction business plan the right way.
How to Create a Construction Business Plan? – Tips and Tricks
If you’re interested in turning blueprints into reality and building beyond boundaries, then following these right steps will craft you the perfect construction business plan for a smooth and time-effective project run.
Now, let’s narrow things down a bit and give you the golden format for your perfect construction business plan. This will make sure you’re steering in the right direction at all times.
1. Writing a Business Summary
First and foremost comes the business summary or, in other words, the executive summary, which is also usually written last. The reason is that it is written once everything is sorted and you’ve made it through the ups and downs of your journey.
The business summary goes right at the front of your construction business plan. So, make sure you’re answering all the big questions that give the reader an instant understanding of what your construction business is all about.
Here’s a list of some of the potential questions you should answer in your business summary:
- What is the business opportunity at hand?
- What is your defined problem and solution?
- What are your products and services?
- Who is your target audience made of, and what is your target market?
- How many years of experience do you have?
By answering these questions and other important ones that come to your mind, you’ll have a comprehensive business summary ready to go.
2. Deciding your Business’s Structure
Next up, you need to decide what the structure of your business will be. The structure, in turn, plays a crucial role in determining the workings of your taxes and finances as your business progresses.
In this section, you can choose between two types of business structures: sole trader and limited company.
If the structure of your company is sole trader, then essentially all the business actions and those of the owner, the sole trader themselves in this case, are the same. This is why there are many administrative requirements in this structure.
It is, however, risky in comparison as all the business’ earnings are based on performance.
If your company’s structure is that of a limited company, then the owner and the limited company itself are two different things altogether. There is also unlimited liability, and so hiring employees is possible.
But with this company structure come significantly more administrative duties.
3. Determining Your Place in The Market – Market Analysis and Competitor Research
As with any other business plan, you’ll need to conduct some market analysis and competitor research. These efforts are crucial to determine where you stand in the market in terms of market share, consumer preference, competition, and more.
Essentially, you’ll be elaborating on some of the market and competitor-specific questions you touched upon in your business summary, such as who your ideal customers are and what products and services your competitors are specializing in.
4. Numbers and More Numbers
In this section of your construction business plan, you’re tackling all things numbers. But remember, this is one of the most important sections of your construction business plan, so be careful.
All your headings in this section essentially revolve around a basic question: how much is the company expected to bring in?
Don’t worry; this figure and its associated headings can change over time. Here’s a list of some of the headings that you should consider elaborating:
- Revenue Forecasts
- Reporting Leads
- Proposal Pipeline
- A new Business Report
- Report of backlogs
- Cash Flows
5. Plans for Retaining and Attracting Customers
This is a crucial aspect when it comes to your construction business’ success and continuity. So, this is where you essentially brief a few ideas that you may have when it comes to marketing and promoting your business.
So, a good way to go about this section is by following this format to help you as you write:
- Using contacts to stay connected to old and loyal customers
- Bringing in new customers
- Evaluating your business’ value
6. Creating a Strategy for Securing Work
Now, you need to think smart for this section. Your potential clients are not just evaluating you but also your competitors to choose the better option.
So, make sure to devise a solid, promising strategy for your business plan that highlights your uniqueness and value in the market and how you will be using it to your advantage in your construction business.
7. Sort Out All Your Taxes
Lastly, you should make sure that you’ve got your taxes and finances in order. This section is specifically for you to get HMRC off your back right from the get-go. So, to save yourself from that coupled with a hefty amount and waste of time, make sure to outline the necessary tax details regarding your construction business in this section of your business plan.
So, there you have it, folks. With these tips, you’ll be formatting your construction business plan the right way. You have officially become a pro with the perfect answer to the mind-boggling question: how to create a construction business plan?
But if you’re still struggling, you can always hire a professional construction business plan writer to help you out. So, go from ideas to structures really fast with well-written construction business plans.
Frequently Asked Questions
What is the business plan of a construction company?
When we talk about how to create a construction business plan, it is one that sets your construction goals and maps out how to achieve them.
How to write an executive summary for a construction business plan?
Here is how:
1- Start by defining the problem
2- Then, recommend a solution
3- Set a Budget
4- Mention the risks and mitigations
5- Add a conclusion
How many pages should a business plan be?
It can be about 15-20 pages long.
What are the objectives of a construction business?
The objectives include constructing and executing, finding or sourcing the right equipment, smoothly operating, supporting teams, administering, and developing.