Construction Company Complete Sample Business Plan NEW!

Twin Brothers Construction commercial contractor business plan executive summary. TBC is a company, with principal offices located in the local area. leaders and pursue new sales of its services to residential and commercial builders. You can download this complete sample plan as a text document for FREE.
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There were about , construction companies in the United States in Most of these establishments tend to be small, the majority employing fewer than 10 workers. About 4 out of 5 workers are employed by small contractors. Construction offers more opportunities than most other industries for individuals who want to own and run their own business. The rate of self-employment varies greatly by individual occupation in the construction trades.

The local area is booming at this time, with many development projects running both by public and by private sources. Overall business growth over the past seven years has averaged approximately 9. This constitutes an attractive market for TBC. The company will be concentrating on office building construction. The other categories to serve will include building renovation along with a segment it calls the general category, to serve other potential commercial clients. One longer-term field of operation for the company will be the selling of building material and components to contractors.

By slowly establishing itself as a first-rate material provider, the company expects to broaden and strengthen its stance in the local building industry.

Initially it will focus on purchasing supplies for its own construction and renovation projects, then use those completed projects as marketing examples to showcase the quality of materials used and the customized approach used to design and construct them. The company plans to develop marketing alliances with industry leaders and pursue new sales of its services to commercial builders. TBC also plans to use a direct sales force, relationship selling, and sub-contractors to reach its markets.

This business plan will show you what should be included when it comes to starting up an electronic engineering business. A similar growth pattern will cause before tax profits to rise significantly by the end of Year 1 and continue increasing through the end of Year 3. These results will be achieved without large additions to fixed assets. Proprietary and confidential information has been disguised or omitted from this sample plan. The demand and growth potential is so overwhelming that success in selling Product Category 1 devices is virtually assured provided a few key aspects are kept in mind:.

To capitalize on the growing demand for the Product Category 1 devices, the company recently shifted from offering consulting services to the development of the Technology 1 hardware and software. Its first prototype has been vastly popular with its clients and the company soon will start shipping the improved version of its device.

The company positions itself as a developer of high-end devices and selectively targets telecommunications companies, as well as smaller industrial automation and instrumentation companies, that have strong demand for the high performance Product Category 1 devices.

Construction Business Plan

This explains why the Past Performance Table does not show inventory or accounts receivable in years and Consulting revenue dropped in as RNSE limited its consulting activities and began ramping up to produce its first product line which was introduced in Propriety and confidential information has been disguised or removed from this sample plan. Becket Nilpferd is the founder, owner, and sole stockholder. The company is not publicly traded at the time of this writing. All manufacturing is out-sourced to contract manufacturers.

A Technology 2 system is any system that is physically incorporated into a product that performs a dedicated function or specific application. Consumer examples include kitchen appliances and home entertainment systems, whereas commercial examples are point-of-sale terminals, industrial process controls, etc. The button you press which toggles back and forth between total miles travelled and the trip mileage is an example of the many Technology 2 systems found in new cars. One example is the odometer as an ultra simple Technology 2 system that does not normally require communication.

However, one can imagine a company with a large fleet of vehicles wanting accurate, up-to-date information concerning mileage for purposes of scheduling servicing, or checking routing distances. The Technology 2 device that would be needed here would require Technology 1. There is a whole array of means to connect the satellites and the server. A wire would obviously be inappropriate here. A digital radio wave would be the likely choice. Each individual odometer device would have a discrete identifier, and would communicate to the server.

A Sample Construction Company Business Plan Template | ProfitableVenture

Each would have the potential to communicate to and from anywhere on in the world. However, in our example, it being a closed system, the rest of the world would not be permitted to gain access to these identifiers. RNSE makes these Technology 1 devices. The basic device here called Product Wrasse , about the size of a credit card, is comprised of:. The Product Wrasse, described above, would be bought by original equipment manufacturers OEMs to incorporate into their appliance such as an odometer.

Going back to the odometer example: If the company with the fleet of vehicles would like to be able, once a certain mileage had been reached, to tell the driver: Some applications might even need a video screen and a keyboard like an ATM for user interface.


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These capabilities are available through Product Damselfish. OEMs who want to benefit from the trend toward Product Category One their products, typically outsource their needs. This allows the OEMs to concentrate on the design and application of their specific appliance without having to worry about the Product Category One aspect. Outsourcing this part saves the OEM in development costs, and more importantly, saves time in getting the appliance to the market.

RNSE tries to make its units compatible with all the major top-tier Technology 2 world operating systems and will work with the second- and third-tiers as well. Sourcing is not a problem, but order scheduling must be given careful attention. Shortages can occur, making it necessary to order well in advance and to stockpile in order to make certain that sales does not outstrip production.

Technology is moving at a rapid pace. Now computers are on the market that race at 1, Mhz. Although the speed may still increase, a bigger area for growth involves Technology 2 systems, rather than personal computers and especially the Technology 1 use of those Technology 2 systems. The appliance makers simply include a power cord and an appropriately sized plug. The consumer merely plugs the unit in and pays for whatever power he actually uses. The consumer will expect it, just as he or she expects a AC power cord. He will plug in the appliance and register it with that Information Utility referred to by Ms.

We also have to hope we did it right and actually record the last round of the Masters Golf Tournament and not end up with several hours of some home shopping channel. However, with the new protocol, we will be able, from wherever we are, to simply contact our Information Utility which will have all our appliance records and say: According to Forrester Research, Inc. Now available on the market are many very sophisticated appliances such as a printer, a sewing machine with computerized embroidery capability, or data stream music. At the moment these are PC-dependent. Take a high-tech sewing machine like a Pfaff Model This machine with its Technology 2 system can perform complex sequences of operations including executing pre-programmed patterns and monograms and fonts.

If this user-interface capability had to be built into the Technology 2 system of the sewing machine, the cost of that machine would skyrocket. At the moment the encoding takes place on the general-purpose PC which allows the music player to have much lower requirements for CPU and memory.


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These devices are essentially one step removed from the Internet. Technology is moving quickly to remove the PC intermediary thus making the devices able to communicate directly with a content provider. Those capabilities of the general-purpose PC will be replaced by the Internet itself thus making the appliances more flexible, more portable, and less expensive.

PCs themselves will metamorphose into very light-weight, very inexpensive units without hard disks and without extensive memory. All these aspects will be provided by the Internet itself. Just log onto the Internet and download the program or any other software you want. And, it will always be the latest version. That too, can be provided by the Internet. If the laptop is lost or damaged there will not be a crisis. All your files are safe, located elsewhere. The market for Product Category One devices is keyed to the production of Technology 2 microprocessors.

Over million bit microprocessors are being delivered annually. Some estimates are much higher. Market trends indicate that most, if not all, of these microprocessors will be wanting Technology 1. At the present time, the number of makers of off-the-shelf Product Category One devices is limited and unlikely to be able to fill the demand. Statistics related to Product Category One devices are very difficult to find, and when found, usually outdated. A number of industry newsletters Technology 2 Processor Watch, Microprocessor Report, Technology 2 Systems Programming will give dollar figures from time to time for the total embedded market.

The more products that are produced, the greater the demand for Technology 1. This does not include the bit microprocessors placed in the 80 million PCs, the three million MACs, or the approximately one million work stations. He estimates that there now exist about 35 low-end microprocessors in every middle-class North American home. It is, however, the bit sector that is growing fastest. Of this total of million bit microprocessor units, the market research firm of Information Architects, claims that the market is broken up roughly into thirds:.

It is however highly likely that the market has grown substantially over that period In addition to the new Technology 2 microprocessors, there are hundreds of millions of older 4-bit, 8-bit and bit boards that have already been sold. These too, although ignored in the market study, represent a potential demand for Product Category One devices retrofitted into many of those microprocessors. VCRs and MP3 players are good examples of products in this consumer market segment. Similar comments can be made concerning the office automation market segment as well.

These fields, although small in relation to the three major categories, still accounts for over two million microprocessors placed in high-ticket equipment, nearly all of which will need Internet connectivity. These sectors are most likely to be installing the Product Category 1 devices into high-ticket item instruments and appliances, thus making these clients less price-sensitive in relation to the high-volume consumer MP3 players, Palm Pilots, etc.

The market, whether it is a maker of telecommunication switches, industrial automation equipment, or a VAR with a time and money-saving idea for a specific industry, wants to concentrate on its special product and bring it to the market place as soon as possible—hopefully ahead of the competition. They want to out-source the Technology 1 need because they know that trying to engineer it themselves would be more expensive and slow down the launch of their end product by six to nine months.

This need would be satisfied by one of the low-end devices like Outsource Provider 3. The trend is moving so quickly that the market is having problems keeping pace with the demand. Reports of component shortages among chip makers have been in the business news. In million bit microprocessors were delivered, not counting those that were used in computers and work stations. Nearly all of these million plus 40 million annually will need Technology 1. To be successful in marketing a Product Category One device it is essential to understand the patterns and major players in the industry.

Currently, demand for the Product Category One devices outstrips supply. With the trend of adding Technology 1 to almost any appliance, demand will continue to grow. The variety of offered platforms and configurations of such devices lead to the market fragmentation where no incumbent company holds a major market share. For low-end devices, pricing is one of the major factors. The listed competition is unlikely to even come close to satisfying a small portion of the demand for Product Category One devices indicated by market research.

Obviously, much of the Technology 1 will be done by internal engineering. But this option has serious drawbacks for the company trying to develop this feature on its own.

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First, its engineers have to examine hardware and software options, which, given the number to choose from, could take months. More time is spent writing the application. Keeping up with protocols and standards will also take time away from development efforts. In the end, hundreds of thousands of dollars can easily have been spent just on the task of adding Technology 1 to the product internally. The end product, now including Technology 1, will have been delayed getting to market by six to nine months.

Operating Systems Microprocessors must have an operating system in order to function. Again, unlike the desktop market where DDDD dominates, there are many competing operating systems. In fact, the first time he hears about a particular Product Category One device it is likely to be through the salesman who sold him his operating system. There are countless VARs who develop special applications which are usually industry-specific.

For example, Reseller 1 is a VAR engaged in software related to building maintenance. This involves Product Category One thermostats and other building maintenance connected equipment in large office buildings. OEMs Original Equipment Manufacturers have quickly recognized the importance of adding the power of the Internet to their equipment, for example, the manufacturer of an automatic scale for use in a production line. The scale will weigh every packet of tea passing along the belt to check that the weight is within certain tolerances.

If not, the packet is removed from the line by compressed air. This is especially interesting for a factory with a dozen production lines. The same evolution is having an impact on almost every type of equipment. The OEMs are important customers for Product Category One devices as the device adds very little cost relative to the ticket price of the equipment. There are large established distributors of microprocessor chips, and other components. It is possible that one, or all, of these distributors may consider offering an Product Category One device soon with a few limited configurations.

The buyer may have heard about RNSE through an Technology Manufacturer 1 salesman, or through an operating system salesperson, but the sale would be handled directly. Are you a first time investor? You may want to get some guidance before you know your way around the These female entrepreneurs are breaking barriers, transforming industries and inspiring change on the continent. Making a Profit in Construction The company has successfully operated in the Houston area for the past ten years working on both small and large scale construction, repair, and alteration projects focusing on residential contracting.

In addition, skills Fosse lacks can be subcontracted. 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;. 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. 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. We will build a business that has the right structures and process in place that can support growth; a business that runs on auto pilot. 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;.

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.

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. 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. 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. 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. 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;. 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. 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.

He has hands-on experience in preparing bids, determination of subcontractor qualifications, and preparation of critical path schedules. He writes and awards all contracts. He is responsible for scheduling of all subcontractors and materials and conducts pre-construction meetings. He supervises all project progress meetings, training superintendents, and is responsible for the certification of all change orders. Ralph is involved in sales, public relations, personnel, operations, planning, purchasing, equipment, and labor.

Mark Brown has been recently hired as the Marketing Manager. He has over seven years of experience in a variety of high level management positions, working for both private industry and different levels of the United States government. Mark is involved in sales, public relations, advertising, marketing, and planning. The business is set up as a "C" corporation.

This form of legal entity was chosen primarily for liability reasons and makes it easier to secure investors. The company employs nine other highly trained employees in office management and project administration. As the business grows additional part-time or full-time employees may be added to handle the increased workload.

Currently, the national market distribution is shared by about fifty plus participants. They are located all over the country. This market segment has been relatively stable over the past five years. The Washington economy is in the midst of a particularly strong growth period. Many new jobs are being added to the local community.

Ever increasing numbers of Californians are coming to this area. All of these factors are cause for a much greater need for retail construction services. All of this activity can only help our kind of business. Listed below are just some of the reasons that the Washington and the Washington area, in particular, is growing and why it is a good time for a business such as ours. The estimated population of King County in was , people. The number of households was , Projections see this trend continuing through the next decade. From the above figures it can readily be seen that the potential local market for our services is huge.

We feel with our pricing and value we will become one of the premier retail construction companies in the country. Our customers are usually large nationally known firms in a variety of fields. Projects that Smith Contractors, Inc. We feel we have strengths in administration, overall management, human resources, quality of service, operations, servicing, quality of service, company policies, service features, reliability, desirability, and pricing.

Our minor weaknesses are in the areas of marketing and advertising and finding lenders who will finance receivables. We have just begun to look at this area. We have recently hired a marketing manager to provide expertise and direction. We have obtained the services of a highly qualified business consultant to aid in financial projections, help put together a business plan, and develop strategies to fund future growth.

A Sample Construction Company Business Plan Template

Our staff is highly trained, well motivated and provided with an excellent benefit package. Client issues are given the highest priority. The business is highly competitive and has excellent facilities which are fully equipped. The business is ready for significant increases in sales with little additional need for staff or equipment.

We perceive medium risk exposure in the competitive position, vulnerability to substitutes, financial performance, finance, and planning. We have or will soon retain the services of a full-time marketing manager, a full-time controller, and a business consultant to help in various areas such as marketing, financial controls, and general overall business operation advice. We do not perceive any high risks associated with our company. Since we are still a relatively new business we will continue to obtain help when needed in areas necessary to complement our abilities.

Pricing is based upon subcontractors price plus overhead and profit. Prices are driven by competition. Current competition dictates a percent of mark-up. We currently win about one-third of the projects we bid on. We come in second on nearly seventy percent of the rest of the jobs we bid on. At this point there is a certain amount of price inelasticity in this service. Customers are very sensitive to pricing changes. With the current level of competition we must be careful not to price ourselves out of the market.

On the other hand, if we offer additional services we can open up other opportunities to increase income. Pricing will be reviewed on a monthly basis. Our company's marketing strategy will incorporate plans to promote our line of services through several different channels and on different levels of use. We make use of referrals, cold calls, visits to customers and advertising. We plan to utilize our website as a selling tool. Advertising tools we will utilize include brochures, catalogs, targeted advertisements, lead generation, lead referral and follow-up systems, information gathering, and dissemination.

To better reach the local market we will meet with building owners and property managers to present our track record of success. In addition, we will advertise in Washington and Oregon newspapers, local trade journals, and business newspapers that target business clientele.

We will join the local association for property managers. Nationally, we will advertise by way of our brochure that will be sent to potential clients. We will advertise through the Internet. If any interest is shown, we will invite them to tour our facilities and meet our professional staff. We recognize that the key to success at this time requires extensive promotion. Advertising goals include all of the following:.

We will develop a public relations policy that will help increase awareness of our company and product. To achieve these goals we will consider some or all of the following:. Throughout this business plan we have taken a very conservative approach to developing our financial projections. The following assumptions were used in preparing the projections in this business plan:.

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