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Whether you’re a business owner getting into construction, or you’re familiar with the construction industry and hopping into owning a business, writing a construction company business plan is vital.
When you’re forming a business, there’s a lot of legwork involved. But there’s also a lot of paperwork, too, and making sure each step is addressed properly is the best way to drive your business toward success.
In many ways, writing a business plan for a construction company is similar to writing any business plan. It’s all about strategy, knowing your business, and having clear goals in mind. There are a few crucial things you’ll want to do and include.
Here’s how you can write a construction company business plan.
1. Identify Your Business
No matter where you look or where you’re starting your business, you may want to begin by understanding and identifying the vision for your business. This may seem like a simple task, but it involves asking yourself if you’re truly ready to start a business and committing to one specific vision.
Solidifying details about your business and its identity can also make many of the steps down the line much easier.
2. Define Your Objectives and Strategy
After you identify and understand your business, forming your strategy and objectives is a great next step. Figure out what you want to do with your business and how you plan to accomplish it.
Who will you employ in leadership roles, and what are the parameters of your business strategy? These are all important questions to ask.
3. Conduct Market Research
Many construction and contracting companies don’t incorporate market research into their business plans, but it can be of great value to you.
While you aren’t introducing a new product or service into the market, you are bringing your unique talents and skills — which is why you’re starting your business in the first place. Simply figuring out what you have to offer and where it will work best in your community is a part of market research.
4. Formulate an Organization and Management Strategy
Even if your company isn’t by-the-books or the most organized, figuring out your organization, leadership, and management strategy is important for your business plan. This means less work for you later and in the present.
Even if this part of your business plan simply works to name who works in the management of different parts of your business, having one place to go for all this information can be convenient and smart.
5. Define Funding Requirements
If you’re planning to ask for a loan, write a proposal, or request funding of any kind, writing out your funding requirements and designating what they’re going to be used for can help you secure the funding you need, and also keep your books in order as you progress.
6. Outline Financial Goals and Projections
You also need to lay out what you plan and hope will happen with your business financially in order to secure funding and continue the success of your business.
Lay out your financial goals for the business, as well as projections and predictions that span both high and low. That way, you can adjust as necessary even in the earliest stages.
7. Stock Your Appendix
Another important part of your business plan is the appendix. This is where you put any other relevant information you might need when writing a proposal or adding any other additions to the business plan. It might include:
- Credit histories
- Letters of reference
- Any legal documents you might need.
This is a great way to keep everything in one place so you can find and use it if you need to.
Writing Your Construction Company Business Plan
In many ways, writing a construction company business plan is just like writing any other business plan, but with a skill and trade you know well. As soon as you decide your goal is to have your own business, there’s nothing stopping you from putting together a strong plan to build on.