Construction Business Plan

If you are creating a construction company and need investment, a custom business plan can help you to acquire the investment needed to begin operations. However, there are many custom factors that you should reflect in the plan including the type of construction performed, the financial requirements of the company, and your intended customer acquisition strategy. Pro Business Plans has worked with many construction companies to create professional plans; this article is designed to communicate what is included in the plan and how is structured.

The business model for a construction business plan should provide insight on what area of the market the company focuses on and how it is unique. For instance, the background of the management team that has prior relationships in the industry or experienced bid analysis. The business model should be comparable to existing firms, but competitively positioned in the market by having some unique competitive advantage.

A construction business plan may need to include three to five year financial projections based on the cost structure of the company. If you do not have extensive operating history, the financial ratios of comparable construction companies may be used to formulate projections. The assumptions should be structured on the size of the company, bringing a large amount of contracts on for overly large projects would cause a high bid price. Therefore, the amount of employees and assets it has often directs the size of contracts that it acquires and the frequency that contracts are awarded. Custom risk and profit models may also be performed in order to determine the break-even number of projects and cost of capital.