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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

  • Custom home building/design build
  • Home remodeling and renovation
  • Project Management
  • Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

  • Friendly and knowledgeable contractors who are able to take any project from concept to reality.
  • Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

  • Trucks: $40,000
  • Construction equipment, supplies, and materials: $100,000
  • Advertising agency in charge of promotions: $10,000
  • Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
  • Working capital: $10,000

building construction business plan writing

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

  • Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
  • Located a small office space to have a physical address for the company as well as a receptionist.
  • Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
  • Began pricing out costs for trucks and necessary construction equipment.
  • Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

  • Households in search of home remodeling services
  • Landowners who would like to build homes on their lots
  • Architects who have clients that need home building or remodeling services
  • Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

  • Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
  • Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

  • Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
  • Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
  • Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
  • Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
  • Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Monthly Average Contract Amount: $20,000
  • Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

  • How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

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How to Write a Successful Construction Business Plan That Sets You Up for Success

by: Daniel Quindemil

What if I told you there was a “copy and paste” formula that any construction business can follow and be successful?

Seriously…. there is…

Before I started I AM Builders, I helped grow a Commercial Construction Company from a $0 to $7,000,000 per year company.

I initially started I AM Builders to be an estimating firm. But as time went on I realized there was a big problem in the construction industry…. Contractors know how to build, but no one teaches them how to grow a company.

As a side a note: we specialize in estimating projects for busy contractors . If you ever need help estimating projects, we can prepare your entire estimate and bid for you and we can walk you through all strategies to help you close. Learn more about our estimating service for Contractors and Subcontractors .

Every entrepreneur wants to write a business plan. And yes, in most businesses you need a business plan to get financing, venture capital money, etc.

But construction is the only industry where you can start a business with zero financing become a million-dollar business almost overnight.

And guess what….. it doesn’t take a fancy business plan.

When I walked into Caroni, they were a drywall labor company and had just starting getting their first GC jobs. We didn’t know how to grow a construction business .

We started trying out different ways to get leads, estimating strategies, negotiations strategies….

We tried it all….

And after all was said and done, the secret to growing a construction business can be summarized in these three steps.

This is your business plan.

5 Pillars of a Contractor Business Plan

1. develop a system to get a ton of potential projects and client leads, 2. develop an estimating team that can bid jobs fast, 3. develop a follow-up system to negotiate and close sales.

4. Set Up Project Management Systems to Keep Everything Running Smoothly

5. Build Your Field Team and Perform an Outstanding Job on Every Single Project

Before you start… do this.

Here are some questions to ask yourself:

  • What do you want your reputation to be?
  • How do you want to handle your bidding process?
  • How much time do you have for your construction company?

Next, it’s time to get some specific goals.

Too many contractors are only caught up with their jobs and the busyness of their daily schedules that they never sit down and think, “ what am I working toward ?”

This is why it’s important to get into the specifics and have clear goals on what to achieve.

For more info on how to prepare detailed goals and targets read this post: Grow Your Construction Business in 3 Months .

After helping over 1200 contractors grow their company, we’ve concluded that there are 5 steps to creating an effective business plan.

Let’s get into each one.

1. Determine Your Lead Generation Strategy

How are you getting your leads?

Before doing any work on the field, before estimating the job, before even getting the job , you need to capture the lead for the job.

That’s why it’s the first step in this list.

So the question is, how do you capture leads? Well, the first thing you should probably do is educate yourself deeply on this specific topic alone. Lucky for you, we have an article on how to get more jobs for you to dive into.

Next, you need to sign up for lead generation services like iSqft and Bluebook to consistently get the opportunity to bid on jobs. They both serve as the lead generation tool and the bidding tool as well, so it’s a 2-in-1 deal.

If you want more details on these lead gen services and a few other ones, check out this article .

After investing in these lead gen services you’ll have potential jobs coming in guaranteed, but there’s also another strategy you can take to get more leads.

It involves building a Select 12 Cluster (S12C). An S12C is essentially a list of 12 potential clients that you handpick and focus on that will provide you with a steady stream of business.

For example, if you’re a general contractor you would do a quick Google search for developers in your area,

GCs near me example

Then you would pick 12 of them and either send out personalized emails, give them all a call, or visit their offices.

But you’re not just going to introduce yourself, remember that goal is to let them know you exist. Not any other contractor… but you . Stand out from other contractors, display authority and give value by helping them with their jobs, or by giving potential clients advice. This goes a long way in developing a relationship with everyone in your S12C.

The main idea with the S12C is to put your horse blinders on and laser focus on 12 ideal clients and develop relationships with them so they can start using you as the go-to when they need work with your trade.

So just to recap:

  • Invest in lead generation services
  • Set up and develop a S12C

After securing leads consistently and reliably, it’s time to have a specific plan to bid and estimate those jobs.

2. Establish Your Bidding and Estimating Process

The second step after getting leads is to have a system that bids and estimates those jobs for you at lightning speed so you can focus most of your time on selling the job.

There’s 3 options for you to consider:

  • Hire an in-house estimator to work full-time.
  • Hire an estimating service to handle each individual project.
  • Do the whole thing yourself.

If you choose to do it yourself, it will prove to be really tough to expand your business when you’re so deep in it all day. Plus, imagine working for 1 and a half days straight to estimate a project, only to find out your potential client just used you for better pricing (they really do this). Successful contractors are ones that know how to build a team , how to lead them , and how to sell jobs to bring in business.

In other words, delegate as much as possible so you can focus on the thing that really brings in revenue, selling jobs.

So if you’re estimating jobs yourself as a one-man show, then delegate that task as soon as possible, otherwise, you won’t ever be able to effectively grow.

Let’s say you finally decide to hire an estimator to work in your office. The average salary of an estimator is $81,219/Yr, according to Indeed . Then after payroll taxes and insurance (26%), you’re looking at over $102,000 a year!

Which translates to about $8,500/Mn and $2125/Wk. If you want to bid 10 average-sized projects a month, that means you’re paying your estimator $850 per project!

To save money, time, and effort to manage an extra employee(s), the best option is to outsource your estimating to a reliable firm that can produce accurate pricing and only work on a per-project basis, so you only pay when there’s a project to bid, instead of having to pay an estimator full-time whether they’re hard at work or not.

3. Create a Sales Team that Closes Jobs

After you have leads coming in and you’re bidding those jobs at lightning speed without doing the tedious work, it’s time to dedicate most of your time to sell the job.

There are many strategies to closing jobs, but as a whole, it involves investing in the client .

Investing in a client means giving , being patient, and then asking when the time is right. You can give to the client through automatic follow-up or manual follow-up.

Automatic follow-up means using a Customer Relations Manager (CRM) to systematically contact specific people at specific times. It’s a software you can also use it to send mass emails with similar pitches to different clients in your area.

Manual follow-up involves a lot of calling and talking to people. This is on your own time, that’s why it’s called “manual” follow-up.

Before bidding a project, be sure to meet your potential client in person to:

  • See if they’re someone you want to work with
  • Get them to know who you are and what you bring to the table

If someone knows who you are, gets calls from you now and then where you genuinely help them out with any problems or ask how they’re doing…

Who do you think they’re most likely to pick for the job?

This is why it’s critical for contractors to have a S12C where they focus on 12 specific clients and get 80% of their work from them.

It’s ideal for the owner of the construction company to be the main salesperson but if there’s just not enough time in the day (we understand), then hire 1-2 Account Managers who’s entire job consists of talking to potential clients, following up with previous ones, and being the main form of communication between your company and the outside.

4. Set Up Project Management Systems

At this point you’ll have leads pouring in, you’ll be estimating those jobs on autopilot, and you’ll be selling the projects. It’s only a matter of time before you suddenly have a couple projects to work on, and the hard work really begins. This is where you need to understand how to manage subcontractors .

As stated above, the owner of a construction company, or any company for that matter, should focus on leading teams and selling. That’s it. Being on the job site all day stressing and pulling your hair out is not going to bring in new business. Unless you truly love being on the field, you need to delegate everything to seasoned professionals.

But before you go running around and delegating everything, you need to set up a system to manage all your projects so your contracting business can be a coordinated, smooth-oiled machine that pumps out only quality work.

You’re going to need 3-4 software to help you manage your fieldwork:

Bid Management Software

This is what you’re going to use to bid out jobs and keep track of your bids. It’s quick, it’s easy, and it’s a whole lot better than handing people estimates all day and having to remember due dates off the top of your head. If you want to check out some bidding software go take a look at SmartBid and Quick Bid .

Project Management Software

This is software for people on the field to be in constant communication with one another. One of the first steps in professionalizing a construction company is to get a project management software that helps all the workers, supervisors, project managers, and superintendents all be on the same page all the time. Some great P.M.S are CoConstruct , Buildertrend , and Procore .

Accounting Software

It always helps to have all your finances done automatically and as hands-off as possible. Let an accounting software manage all your finances so you can focus most of your effort on bringing in revenue by selling jobs. QuickBooks is the cream of the crop here but Zipbooks and Stripe are also great alternatives.

Estimating Software

This is optional because if you outsource your estimating to qualified estimating firms, then spending money on estimating software won’t be necessary. But if you want to hire estimators in-house or want to do a mix of in-house and out-house estimating, then you’re without a doubt going to need a takeoff and estimating software that can help you be as accurate and as quick as possible. We use Planswift in our office but Bluebeam is also great as well.

You can find software packages that include all-in-one packages like Procore, Corecon, or Buildertrend that include everything you need to professionalize your construction business. The pricing will reflect that, but it’s a necessary investment for your construction company.

5. Found a Field Operations Team

Now that you have project management systems set up, it’s time to create a field operations team. Keep in mind this is only for people in the field , not in the office.

Every construction company is different, some may choose to subcontract work instead of hiring workers and training them, and then others may lease workers from other companies.

So first understand how you want your company to operate, then the next step is to understand the roles of a steamrolling field operations team and how to find the right people for the job.

General Superintendent

This is the main field operations manager. He/she is the one overseeing all the projects a company is currently working on. A general superintendent needs to be comfortable under pressure, an effective leader that gets people to work, and able to raise their voice from time to time.

Project Superintendent

There are the overseers of single projects. They put all their attention on a single job to make sure it runs well. They need to have a deep understanding of construction, their workers, and be on top of their game even when under pressure.

This is the next subdivision in the field. Larger jobs typically get broken up into multiple sections and while they’re all being managed by the project superintendent, the foreman is the one managing specific sections or trades.

Skilled laborers are the true engine behind the construction job. These are the people on the field doing the actual work. Hiring workers is relatively simple but be sure not to fall in the trap of hiring cheaper labor to save money because the reality is all the mistakes they make end up costing more than if you would have hired workers a bit more expensive.

Hire people, train them, and let them train other workers.

We’re not going to have a project manager on the list because they’re not typically on the field but a good project manager will be in the field often to help the superintendent run the job.

That’s how you set up a strategical business plan that set’s you up for success.

Construction can be a tough industry, but a great plan on how you’re going to run your business and even better execution on that plan can make your life a lot easier.

We hope you enjoyed this piece and got some real value from it. Feel free to comment below your $0.02.

Do you want more projects?

Learn how to get leads on autopilot, bid jobs faster, and close more sales.

Learn about our Contractor Sales Academy .

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How To Write a Winning Construction Company Business Plan + Template

Business Plan-TB

Creating a business plan is essential for any business, but it can be especially helpful for construction company businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every construction company business owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is a construction company business plan.

A construction company business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Construction Company Business Plan?

A construction company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Construction Company Business Plan

The following are the key components of a successful construction company business plan:

Executive Summary

The executive summary of a construction company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your construction company
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your construction firm, mention this.

You will also include information about your chosen construction company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a construction company business plan. Conduct thorough market research to determine industry trends and document the size of your market. Questions to answer include:

  • What part of the construction industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a construction company business’ customers may include:

  • Businesses (e.g., office complexes, restaurants, retail stores)
  • General contractors
  • Other construction companies

As you conduct your customer analysis, keep in mind that your target customers may not be aware of your company or product right away. You will need to have a marketing strategy to reach them and get them interested.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or construction company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your construction company business via word-of-mouth.

Operations Plan

This part of your construction company business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present. Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a construction company business include reaching $X in sales. Other examples include hiring a certain number of employees, signing up a certain number of customers, or completing a certain number of projects.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific construction industry. Include brief biography sketches for each team member. Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Construction Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Construction Company

Cash Flow Statement Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup construction business.

Sample Cash Flow Statement for a Startup Construction Company

Finish with an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any construction company. The tips we’ve provided in this article should help you write a winning business plan for your construction company.  

Finish Your Construction Business Plan in 1 Day!

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building construction business plan writing

How to Write a Construction Company Business Plan (12 Steps)

You are starting a construction business. You own a construction company. Do either of those statements sound like you? If so, you need a construction company business plan. Building a construction company is hard work, but you don’t reach success on hard work alone. You also need strategic planning, an in-depth understanding of the competition, and a way to finance your business. These are all things that construction business plans address. In this post, we take a deep dive into how to write a business plan for a construction company. Read on to learn everything you need to know.

Why Do You Need a Business Plan for Your Construction Company?

Before you get too deep into “how” to write a home-building business plan, it’s helpful to understand “why” you should write one. There are three main considerations here: competition, growth, and financing.

Competition

The 50 U.S. construction companies with the highest annual revenue all made more than $1.5 billion in 2020 , with the highest-grossing company topping $14.4 billion. This is the level thousands of construction companies in the U.S. and around the world are trying to reach, and the fight to get there is fierce. With that in mind, you need to understand your competition. This is a primary purpose of a construction company business plan. You probably already know who your competitors are, but you need to do market research and write it all down. A construction or general contractor business plan will force you to do that.

Illustration #01

Like it or not, if you’re not growing, you’re more than likely dying in the construction industry. And your financial backers will want to see that you intend to grow. That means you need to have a plan for growth — how to achieve it and how to manage it when it happens.

How are you going to fund the expansion of your business? How will you get the initial capital to buy equipment? There are plenty of questions related to finances when you’re building a construction company. And any large or small construction company business plan will answer them and help you get the financing you need in the process.

Two Types of Information to Include in a Construction Business Plan

The information you include in your commercial or residential construction business plan will fall into two categories: industry information and general business information. Both are important to your business for different reasons. Perhaps the most important reason to include thorough information in your business plan is that it demonstrates your knowledge of the industry and business in general to the investors and banks who will read the plan when considering you for a loan. See below to learn more.

Industry information:

What do you know about the construction industry that others don’t? In other words, what makes your approach to your construction business different from the rest? This is what investors in your business will want to know as they try to gauge your chance of success. Don’t rely on empty buzzwords here — words like friendly, service, reliable, and the like. These are fine words, but you need to be more specific. How does what you know about the construction industry make you capable of running a successful construction business? Make sure those points are clear in your construction company business plan.

General business information:

In addition to your expertise in home building, you need to demonstrate some knowledge of general business practices. That means construction business plans need to have detailed information on the basic running of the business, the plan to get construction jobs, cash flow, corporate taxes, and similar items.

How to write a construction business plan

A business plan for a construction company is not a single page of text. It’s a complex, multi-part document that requires a lot of information. While not all construction company business plans are the same, most of them have a similar format. They include 12 key sections, which we explore in more detail below.

Executive Summary

Your executive summary is your introduction. It needs to summarize the rest of the document but not go into too much detail. Try to limit the executive summary section to a single page if at all possible, and cover topics like the following:

  • The reason you are starting a construction company
  • Your goals for the business
  • Where you plan to operate and offer residential construction services
  • Your estimated business expenses and profits
  • How your home building business will fit into the existing market

Again, don’t go into too much detail here. The details will come later in the business plan. Just hit the high points.

Company Description

The second part of your construction business plan will echo some of the points you raised in the executive summary, but it will go into deeper detail. In the company description section, the takeaway point for a reader should be why you think your business will be successful. To that end, you need to describe any specialties you or your business partners have, any special positioning you can achieve within the market, and any revenue streams or reduced expenses that can make you more competitive. You will also need to describe the existing competition here. Who are your competitors, how successful are they and why do you expect to outperform them? These are all questions your company description should answer.

Operational Plan

You will get into even more detail in this section. But instead of focusing on who you are and what your business will be, you will use the operational plan section to describe how your business is going to run day in and day out. You’ll need to cover a few key areas: Technology: List and describe the pieces of technology and equipment you will use in the operation of your construction business. This can include initial construction equipment purchases and office technology like computers, programs, and even home design software .

Bidding processes: How do you plan to bid on residential construction jobs? This is an important part of generating revenue for your construction company, so it needs to be described in detail in your business plan.

Production schedules: When you get a home-building job, you are instantaneously on a tight schedule. As you know, it takes a lot to take a home from paper to real life, and the logistics behind that process are complex and unforgiving. So, make sure your business plan demonstrates your knowledge of production schedules and, more specifically, how you plan to structure your company’s production schedules.

Inventory partners: Being willing to build homes is one thing, but having the right partnerships in place to get the job done is entirely another. Which vendors and suppliers will you work with? Why? Do you have any existing relationships that could prove beneficial to your business? Answer these and any related questions in your operational plan.

Market and Competition

You’re probably not going to be the first construction company in town. Who else is already established in your intended service area? How successful are they? Your construction company’s business plan needs to contain an in-depth analysis of the competition you’re going to face, as well as the market for residential construction services in the place you plan to operate. The reason why is simple. You need to know who your competitors are so you can see what they’re doing and look for ways to grab some market share from them. And you need to know whether people want the service you are going to provide. This section will cover all of that — for both your knowledge and that of your financial backers.

Illustration #2

Construction is a service, but it contains within it multiple related services that you can choose to offer or not offer to your customers. This is going to be an important part of your business plan — starting a construction business without a list of services you will provide is like opening a store without knowing what you’re going to sell inside it. So, make a list. Here are some of the construction-related services you may want to consider:

  • Residential construction
  • Commercial construction
  • Home design
  • Landscape work

Sales & Marketing

You may not be a marketer at heart, but you’re going to have to have a plan to market your construction business and bring in home-building jobs. The sales and marketing plan you write in your business plan should be as detailed as possible. Include information on the following subtopics:

  • Your marketing budget
  • Your company’s marketing assets, such as a website
  • Advertising plans (such as billboards, newspaper ads, and search engine advertising)
  • Whether and how you plan to leverage social media
  • Loss leader plans, such as offering free home design consultations
  • How you will measure the success of your marketing efforts

In addition to marketing, this section of your construction company business plan will need detailed information on your sales processes. Will you have dedicated salespeople? How will your sales team get leads? Will salespeople be paid on commission? Answer these questions and more.

Managers can make or break a construction business. These are the leaders of your company — the ones who will define the path your business follows and bear the responsibility for the successes and failures you have along the way. That’s why this is an essential part of your home-building business plan. Management may shift over time, but at the start, you need to have a good idea of who’s going to be in charge of what. You will also need to include an explanation of why you have chosen these people, who they answer to, and what you are planning to pay them.

For financial backers, this is going to be one of the most important sections of your business plan. They want to know how you plan to manage the money they may give you so they have an idea of whether this is a sound investment. Give them as much detail as possible. Cover everything from your revenue projections and operational costs to employee wages and the price of your services. Wherever possible, you need to include exact figures based on hard data and research instead of soft estimates based on your own beliefs. Remember — lenders and investors have a head for numbers, so they will immediately notice if you’ve left something important out.

The funding section of a business plan for a construction company is an extension of the finance section, but it’s not the same thing. This is where you describe how you plan to obtain the money you need to start, run, and expand the business. The audience reading your business plan will hopefully play a part in the funding — that’s the whole idea, anyway — but you need to convince them that you will be able to use their funds wisely to generate revenue. Be specific about how much startup funding you’re going to need and why. Go into detail about how you will repay a loan or generate returns for investors. Describe how initial funding will be used in your business — to buy equipment, hire talented employees, market your business, and so on. With these bases covered, you will set yourself up to receive the funding you need to get this business off the ground.

Financial Projections

You’re hoping for a bright future for your new construction company. That’s a given. But you need to show that bright future with the financial projections in your business plan. Include projections for revenue, expenses, and profits for five years out from your starting date. Don’t just say you plan to bring in $100 million by the fourth quarter of year three — show the numbers behind how you’ll get there. You will be able to reference the information from the other sections of your business plan to support your projections.

Funding Request

If you need investments or a loan to start your construction business, you need to include in your business plan a specific funding request. This is where you ask for the money you need. Here again, you need to provide some detail:

  • How much money do you currently have for the business?
  • How much are you contributing alongside the investment or loan you are seeking?
  • What assets do you already own, and what assets do you still need to acquire?

Many of the facts and claims you have made in other sections of your construction company business plan will have supporting information or related documents that won’t quite fit. The appendix is where you include those references. Any extra information that could help financial backers understand your proposed business should be included here. And don’t worry — this section will not likely be read in its entirety, so you can include everything. In general, more information in a business plan is better than less.

Final Thoughts

Writing a construction company business plan is a big task, but if you break it down into small steps, you can get it done. From the executive summary to the appendix, your business plan needs to demonstrate your ability to achieve success in the residential construction industry. With your business plan written and your company started, you’ll need to get home-building jobs and please your clients. Cedreo can help with that. Our home building software can help you quickly create 3D home designs to help clients visualize the project and make them much more likely to close the deal with you. Interested? Learn more about our home building software here, or contact us for more information.

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How to Write a Business Plan for Your Construction Company

How to Write a Business Plan for Your Construction Company

What is a Business Plan?

  • Executive Summary
  • Company Description
  • Market Research

Why Do You Need a Business Plan for Your Construction Company?

  • Competition: The construction industry is very competitive. A business plan will help you research and compete against other construction companies in your area.
  • Growth: A solid business plan will help you avoid stagnation by establishing clear milestones.
  • Financing: Running a construction company is expensive . Every construction company will need to access funding at some point. A business plan will help you be approved for the financing you need to grow your business in the future.

Reasons for a business plan for your construction company: competitors, growth, financing

1. Executive Summary

  • Why you started your construction company
  • What your goals are
  • How your construction company fits into the market
  • Where your plan to offer your services
  • Projected profits and expenses

2. Company Description

  • What are your major expenses?
  • Who are your competitors?
  • What is your specialty (i.e., commercial or residential construction)?

3. Market and Competition

  • Who your competition is (similar construction companies to yours in your area)
  • How you can compete with them
  • Where the best location for your company is
  • Who your target customers are
  • How you meet your customers’ needs

4. Services

  • Commercial building
  • Design work

5. Marketing

  • Marketing budget
  • Social media
  • Your website

6. Management

  • Who your management is
  • What each person’s role is
  • How much each person is paid
  • Why each person is valuable to your business

7. Finances

  • Operating costs
  • Employee wages
  • Expected sales
  • Expected profits
  • Business expenses
  • Financial projections
  • How much funding you need
  • What you need funding for
  • How you can repay your loan
  • How much funding you expect to need in the future
  • How this funding will generate revenue for your construction company

9. Appendix

How to get a business loan for your construction company

Consider a Business Loan to Grow Your Construction Company

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The Ins and Outs of Writing a Construction Business Plan (Free Template)

By Shannon Mulligan

Woman wearing hard hat and yellow vest

A strong foundation is essential for a construction job—and starting a construction business. And how do you do that? By setting up your business for success with a solid construction business plan. 

Read on to learn about why you need a construction business plan, how to create one in six easy steps, and a free template to get you started. 

What’s a business plan for a construction company?

A business plan is a document that outlines a company’s business activities, goals, and how its activities will help achieve its objectives. It documents a business’s market research, financial projections, mission statement, and offerings. 

Every construction business can benefit from a business plan, whether you’re established or just starting. A construction business plan can help you secure funding, document your business model, forecast future business demands, and function as a guiding light for you and your team. 

The benefits of having a construction business plan

Most businesses start with a business plan—it’s a natural way to get your thoughts onto paper and organize them into actionable steps. Business plans can take a lot of time, but when done right, your business plan can function as your manual to move your business forward. 

If you’re still unsure whether your construction business needs a business plan, these four benefits might help you decide. 

Apply for funding

You’ll need a business plan if you’re looking for a business loan or planning to apply for business grants. Most financial lenders won’t even consider giving you a business loan without a well-thought-out business plan. A business plan is a way for lenders to gauge the risk level they’re taking if they lend your business money.

Your business plan should show lenders how to use their money and how to pay it back. It also allows you to build confidence in your ability to run a business from an organizational standpoint.

Attract top talent

Hiring the right people is important for any business, but it can make or break a construction business. Giving potential hires a complete understanding of your vision for your construction company can be the difference between finding the right employees versus the right now employees.

Creating a business plan will give you a clear vision for your company that you’ll easily be able to communicate to any potential hires.

Understand your competition

Industry and competitor research and analysis are a big part of creating a business plan. You might start your business plan thinking you know exactly what makes you stand out, but then again, you might not. Researching who your competitors are and what they do helps you solidify how your business can be differentiated from your peers. 

Finding what’s unique to your business is a huge factor in outbooking other local construction businesses.

Gives you clarity

Trying to get your business off the ground can feel like you get lost in the weeds of it all. Creating a business plan can help you clarify key elements of your company. A business plan gives you the big picture and lets you identify the priorities and milestones you need to focus on for your business.

How to write a business plan for a construction company

Writing a business plan for your construction company is essential in building your business. Whether you’re looking for funding or you’re looking for clarity, a business plan can help set you on the right path. Here are six key components of a successful construction business plan.

1. Executive summary

An executive summary is an overview of your construction business plan. Think of it as the CliffsNotes version of your business plan—it gives readers the basics of your business’s goals, financial projections, strategies, and more. This should be the first section of your business plan, but it’s usually the last thing you write because your plan informs it. 

An excellent executive summary reflects your construction business and should excite the reader about your company and its potential. 

2. Company description

The company overview and description section is the second section in your construction business plan. This section outlines vital details about your company, like your location, the size of the business, what you do, and what you hope to do in the future. 

When writing your company description, try to include the following information:

  • The official company name
  • Type of business structure (sole proprietorship, LLC, corporation, etc.)
  • Names of the owners/management team
  • The business location
  • A company history that outlines when the business started, why you created it, and what it does
  • Mission and vision statements

3. Market analysis

A robust market analysis gives you the foundation to create a strong construction business plan with the best chance at success. Market research is the best way to test whether your business will succeed. It can help you mitigate risks, give insights into customer preferences, and even help you decide on location and pricing. 

There are two main types of market research: primary and secondary. Primary research is gathered directly from consumers—think surveys, interviews, and focus groups you administer. Secondary research is compiled from external sources—think government census data, polling results, and research conducted by third parties. 

Both primary and secondary are great on their own; together, they’ll give you a fuller picture. 

4. Operations plan

There are a lot of moving parts that go into running a construction business. The operations plan lets you lay out all those parts and explain how you’ll run your company. This includes everything from your physical location, facilities, staffing needs, and equipment you’ll require. You can outline the types of projects your construction business will undertake, how many projects you’ll take on at once, and what resources you’ll need to deliver quality service at that scale.

5. Marketing and advertising strategies

Use the marketing and advertising strategies section of your construction business plan to highlight how you plan to promote your business. This section can outline all of the strategies you plan to use and can include a rough budget of what you plan to spend on marketing and advertising. Consider social media , digital marketing, content marketing, SEO, and local marketing strategies.

6. Financial projections

The financial projections section includes details about how you’re funding your business, projected revenues and expenses, and profitability projections. Accurate financial projections give potential lenders and investors confidence in your understanding of the industry and the viability of your business. 

Quick tips for writing a construction business plan

Now that you’ve got everything needed to start writing your business plan, here are five quick tips to help your writing process. These are big-picture ideas that you can use to get the most out of your construction business plan:

  • Get to the point: Use clear, concise language to get your point across. Skip the jargon and ensure someone outside the construction industry understands what you write.
  • Use data when you can: It’s great to have supporting data points to back you up when you’re talking about the industry and market.
  • Write for your audience: Who are you writing for? Investors? Employees? Shareholders? Lenders? When you clearly define your audience, you can write in a way that resonates.
  • Research, and then research some more: What you have to say about your industry is important, but having facts backed by research is even more powerful and convincing. 
  • Use it: Don’t let your business plan just be another PDF collecting metaphorical dust on your desktop. Use it to inform your decisions and guide you and your team through the years. And update it when needed!

Free construction business plan template

Ready to get started on your construction business plan? Our free construction business plan template can help you write a business plan with all the elements needed for success. 

Download your free construction business plan template now

Build a better business with the right tools

If you know one thing, it’s that the quality of your tools can make or break a project. The same is true for the tools you use in your business. 

With Homebase , you get everything you need to take control of your construction business . Built for teams like yours, Homebase helps you schedule your team , track their hours , and run payroll even if you’re all on different job sites. 

Homebase is the all-in-one management app that simplifies running your construction business. Get started for free .

Construction business plan FAQs

Why should you create a business plan for your construction company even if you aren’t looking for financing.

You should create a business plan for your construction company even if you aren’t looking for financing, because it can help you understand your business and competitors and give potential hires confidence in your business.

What’s the best way to create your construction business plan?

The best way to create a construction business plan is to use a business plan template. You can download your free construction business plan template above.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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How to Write a Business Plan for a Construction Contractor?

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  • September 14, 2022
  • Small Businesses

building construction business plan writing

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your construction contractor company, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your construction contractor business. Use this template to create a complete, clear and solid business plan that get you funded.

1. Construction Business Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a construction business?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write an executive summary for a construction business?

Provide a precise and high-level summary of every section that you have included in the business plan of your construction business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

  • Business overview : start by introducing your proposed construction firm, where it will be located, the types of construction services you will offer, and the pricing strategy you want to implement. Also mention what sets you apart from other construction contractors in the area
  • Market analysis : summarise the market where you will operate and provide a brief about your target market, target audience, spending capability, etc. Also give certain data points about the construction industry in the area where you want to operate (size and growth), as well as an overview of the main competitors, etc
  • People : introduce your construction business’ management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
  • Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
  • Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

building construction business plan writing

2. Construction Contractor Business Overview

In this segment of the business plan, you will provide details about your proposed construction firm.

You must answer here some important questions that potential investors and lenders often ask about your business and operations. Here are some examples of questions you must answer:

  • What is the rationale behind your opening a construction business today?
  • In which location will you operate and why?
  • What type of services will you offer?
  • Are there specific types of services that you specialize in?
  • What will be your pricing strategy and why?
  • What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

  • Passion & experience of the business owner
  • Rationale behind starting a construction business today

Passion & experience

Displaying your passion is a must, but in the construction business, you must have ample experience, too. You must reveal your experience. For instance, you may have worked as a subcontractor responsible for designing beautiful buildings for large construction companies. At the same time, you were also responsible for overlooking and managing the design execution.

Is there a certain problem (or perhaps, a set of problems) that your construction firm will try to solve when it comes into existence? For example, there may be a steady rise in demand for state-of-the-art and elegant commercial buildings because of an increasing influx of international companies.

Unfortunately, there may be only a few construction companies capable of executing such projects with precision, and you want to fill in the gap.

building construction business plan writing

b) Business Model

This section of the Business Overview should explain the model you want to adopt for your construction business. For example:

  • Who will be your target audience (homeowners, commercial entities, government, etc.)?
  • How big is the market and is there enough demand for your services?
  • What type of services are you going to offer?

What are the different construction contractor companies?

You may choose one of the following:

  • Commercial construction
  • Residential construction
  • Institutional construction
  • Infrastructure construction
  • Industrial construction
  • Energy & utilities construction

Typically, construction businesses do not operate in multiple niches at once, and even if they do, they are usually large corporations. Thus, make sure to select your niche properly after evaluating your expertise and experience.

No matter what you select, you must ensure that there is enough demand for the type of construction firm you want to open and the range of services you will offer.

c) Construction Services

This is the segment where you will outline the type of construction services you will offer. Make sure that you are precise and list the most important services that you want to offer to potential clients.

Some services that you may offer include:

  • Residential home building
  • Repairs and renovations
  • Commercial building
  • Deck building, etc.

If you want to start as a subcontractor, you may offer your services in areas like:

  • Exterior painting
  • Tile work, etc.

building construction business plan writing

d) Pricing Strategy

This is where you will provide an overview of your pricing strategy. For instance, you may charge higher than your competitors because exceptional craftsmanship, high-quality materials, etc.

Similarly, you may decide to charge lower than your competitors because you have years of relationship with suppliers who will supply raw materials at say, a 15% discount over the prevailing market rates.

Pricing table

While it may not be possible to provide a proper pricing table for all services that you will offer, it is still a great idea to provide a table that gives an overview of your pricing structure.

Consider providing a pricing range for your services. For example:

  • Flooring : $15 to $45 per square foot depending on the material used
  • Drywall Installation : $1.50 to $3.50 per square foot, etc.

However, don’t go into extreme details because potential investors are not interested in the nitty-gritty of your pricing. They just need the big picture to assess the profitability, because they will tie your pricing strategy with your financial projections later on.

building construction business plan writing

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Construction Industry Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

For example, if there is a high demand for residential and commercial construction companies but you want to focus on industrial construction despite a very small market size, it may not be a great business decision.

Therefore, you must cover here 3 important areas:

  • Industry size & growth : how big is the construction business industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
  • Competition overview : how many competitors are there? What type of customers do they serve? What type of projects do they specialize in? How do they compare vs. your business? How can you differentiate yourself from them?
  • Customer analysis : who is your target audience? What type of construction services do they need? 

a) Construction Industry Size & Growth

How big is the construction contractor industry in the us.

The construction industry is one of the largest sectors in the US: there were over 733,000 construction contracting firms in 2022 employing about 7.5 million workers!

The same year, the industry was worth about $1.9 trillion: that’s an average annual turnover of $2,600,000 per company!

In terms of new residential constructions, there were 991,000 and 390,000 building permits granted in 2020 alone for single and multi-family buildings respectively.

building construction business plan writing

How big is the construction contractor industry in your area?

After getting a clear picture of the construction business industry in the US as a whole, narrow down to your location.

It’s likely that you won’t find the number anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:

We already know that the average annual turnover of a construction firm in the USA in 2022 was $2,600,000. Therefore, if the location where you will operate has a total of 20 construction companies, the construction business industry in the area is approximately $52 million.

building construction business plan writing

How fast is the construction business industry growing in your area?

Next on our list is market growth: is the industry growing or declining in your area?

US market growth can be a great addition to your business plan, yet it doesn’t necessarily help to assess the industry in your area of service. For example, the industry might be growing in the US, but declining in your region for a number of reasons.

As you likely won’t find this information online, you can instead rely on the number of construction contractor companies in the area.

For example, if the region had only 18 construction businesses in 2018 and 20 in 2022, you can assume that the average growth rate of the construction contractor industry in your area is about 5% per year.

b) Construction Contractor Competition Overview

Studying your competitors’ business models is vital. As such, we strongly recommend you do some research and create a comparative table summarizing their businesses, the type of construction services they offer, etc.

Here is a sample table that you can use:

Construction Business SWOT Analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

  • Strengths : 10 years of experience as a subcontractor under a nationally reputed construction company; multiple successful construction designs under the belt with the most prominent ones being the commercial green building with 40% glass work for deep sunlight penetration and solar energy utilization; ability to acquire discounted construction material; etc.
  • Weaknesses : no direct clients, no initial brand reputation
  • Increased demand for residential buildings because of the increasing population in the area
  • Increased demand for commercial construction because of increased business opportunities
  • Harsh weather conditions force homeowners to repair their homes
  • Existing players expanding their services
  • Strong seasonality – contracts and products drop significantly during the winter months which can lead to cash flow shortfall in the short-term

building construction business plan writing

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience. For instance, you may want to start with residential construction, but soon want to expand your operations into commercial construction.

Some important points that you must include in your customer analysis include:

  • Who are your customers: individuals or businesses?
  • What type of construction services do they need (new vs. remodeling)?
  • What type of construction companies do they prefer (expensive, low-cost, established, new players, etc.)?

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

What is your Unique Selling Proposition (USP)?

  • What are the different marketing strategies you will use?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost?
  • What is your marketing budget?
  • What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do construction businesses use?

A few marketing channels that construction businesses typically use are:

  • Signages, vehicle branding
  • TV and radio ads
  • Print ads (newspapers, specialized magazines, flyers, etc.)
  • Email marketing
  • Word of mouth, recommendations

It is not necessary to use all channels. Instead, you can start by focusing on a few of them, and include other marketing strategies later.

building construction business plan writing

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

  • Low-cost leader : you may have a special partnership with a large construction material supplier that can allow you to underbid your competitors, thereby allowing you to offer low-cost construction services 
  • Time commitment : you may have excellent project management skill that allows you to complete constructions projects within the estimated time, and hence, prevent unwanted delays and frustrations that eventually lead to increased construction cost
  • Quality guarantee : you may offer a quality guarantee for a long duration that none of your competitors provide

5. Management & People

You must address two things here:

  • The management team and their experience / track record
  • The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your construction business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the construction business you are proposing. If they have certain experiences that will play a key role in the success of your construction business, mention that. 

For example, your General Project Manager may have years of experience in labor relations, cost control, and project supervision in a leading construction company. 

Organization Structure

Even if you haven’t already hired a general project manager, office manager, administrative assistant, quality control officer, architect, and other relevant staff members, you must provide a chart of the organizational structure defining hierarchy and reporting lines.

building construction business plan writing

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a construction contractor company.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your construction contractor company is an attractive investment.

There should be 2 sections to your financial plan section:

  • The startup costs of your company
  • The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For an construction contractor company, startup costs are all the expenses you incur before you start making sales. These expenses typically are limited especially for small businesses and include:

  • The lease deposit (if you rent an office and/or warehouse for your equipment)
  • Machines, vehicles
  • Construction equipment, tools, etc.
  • License & permits, business insurance, etc.

Of course, the startup costs depend on a number of factors, like the size of your business (employees), the services you plan to offer (which will dictate what equipment you may need), etc.

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model in the business plan of your construction company.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 10%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of contracts (customers) over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Capex (cost to buy the equipment and vehicles, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

building construction business plan writing

7. Use of Funds

This is the last section of the business plan of your construction contractor company. Now that we have explained what your business model is, what type of services you offer, how you get customers, etc., this section must now answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any business plan for a construction contractor company should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the equipment and machines?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

How to write a business plan for a construction company?

construction company business plan

Putting together a business plan for a construction company can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing construction company, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a construction company?

  • What information is needed to create a business plan for a construction company?
  • How do I build a financial forecast for a construction company?

The written part of a construction company business plan

  • What tool should I use to write my construction company business plan?

Having a clear understanding of why you want to write a business plan for your construction company will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a construction company business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your construction company. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your construction company to be in the next three to five years.

Once you have a clear destination for your construction company, you'll focus on three key areas:

  • Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
  • Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
  • Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your construction company's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed construction company business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your construction company has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a construction company, let's take a look at what information is needed to create one.

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Information needed to create a business plan for a construction company

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your construction company business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a construction company

Carrying out market research before writing a business plan for a construction company is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

For example, your construction company could find that there may be an increasing demand for eco-friendly construction materials.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your construction company.

construction business plan: successful entrepreneur

Developing the marketing plan for a construction company

Before delving into your construction company business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a construction company

Whether you are at the beginning stages of your construction company or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A construction company might incur staffing costs for laborers, supervisors, and managers. They might also need to buy supplies and equipment, such as power tools, scaffolding, ladders, safety equipment, and vehicles. Additionally, they may need to hire subcontractors to do specialized tasks, such as plumbing, electrical work, or roofing.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your construction company.

What goes into your construction company's financial forecast?

The financial forecast of your construction company will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a construction company are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a construction company shows how much revenue and profits your business is expected to generate in the future.

projected profit and loss statement example in a construction company business plan

Ideally, your construction company's P&L statement should show:

  • Healthy growth - above inflation level
  • Improving or stable profit margins
  • Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established construction company. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your construction company

The projected balance sheet of your construction company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a construction company business plan example

Analysing your construction company projected balance sheet provides an understanding of your construction company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your construction company's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your construction company has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your construction company business plan.

example of projected cash flow forecast in a construction company business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your construction company business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your construction company as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

construction company business plan: sources & uses example

Having this table helps show what costs are involved in setting up your construction company, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your construction company business plan, let's shift our focus to the written part of the plan.

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The written part of a construction company business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a construction company business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your construction company's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your construction company, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your construction company's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your construction company, you could emphasize the potential for growth in the area. You might mention that the area has a growing population, access to important resources, and a wide range of potential customers. You could also focus on the proximity to major transportation routes, as well as potential sources of new business or customers. Finally, you could emphasize the fact that the area is rapidly developing, making it an attractive location for any business.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your construction company could offer a variety of services such as design and layout, carpentry, masonry, roofing, plumbing, and electrical work. It could also provide products such as lumber, tile, shingles, and other materials needed for construction projects. Additionally, your company could offer project management services to ensure that the job is completed properly and on time. These products and services would allow customers to take advantage of the expertise and resources of your construction company to complete their projects efficiently, safely, and cost-effectively.

construction business plan: products and services section

4. The market analysis

When presenting your market analysis in your construction company business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your construction company, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your construction company is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include residential homeowners looking to remodel or upgrade their homes. They might be seeking out services such as kitchen or bathroom remodels, new decks, or even a complete home renovation. These customers typically have the financial means and are willing to invest in the services a construction company provides.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your construction company.

5. The strategy section

When you write the strategy section of your construction company business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your construction company faces many risks. It could be exposed to the risk of property damage due to natural disasters such as floods or storms. It may also face the risk of litigation if employees or contractors are injured on the job. In addition, there could be potential financial losses due to missed deadlines or cost overruns.

6. The operations section

The operations of your construction company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your construction company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have key assets such as construction equipment and building materials. These may be considered your key assets because they are necessary to complete any construction projects. Additionally, the construction company might have intellectual property such as blueprints or designs. These could be valuable to the company and could be used to distinguish themselves from competitors.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your construction company business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my construction company's business plan?

There are two main ways of creating your construction company business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your construction company's business plan

The modern and most efficient way to write a construction company business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your construction company's business plan

Outsourcing your construction company business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the construction company business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your construction company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your construction company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your construction company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your construction company's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your construction company. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start a construction company? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Page last updated on 11 Dec 2023 , as per our editorial standards (originally published on 24 Nov 2023 ).

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Sample Construction Business Plan

sample construction business plan

Writing a business plan is a crucial step in starting a construction company. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring construction business owners, having access to a sample construction business plan can be especially helpful in providing direction and gaining insight into how to draft their own construction business plan.

Download our Ultimate Construction Business Plan Template

Having a thorough business plan in place is critical for any successful construction company venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A construction business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The construction business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your construction company as Growthink’s Ultimate Construction Company Business Plan Template , but it can help you write an construction company business plan of your own.

Example – BlueprintBuilders Co.

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

BlueprintBuilders Co. is a forward-thinking construction company rooted in Indianapolis, IN, dedicated to transforming the industry by integrating sustainable practices and cutting-edge technology into our operations. We specialize in delivering high-quality construction services that not only meet the diverse needs of our customers but also contribute positively to the environment. Our commitment to eco-friendliness and innovation positions us as a leader in green construction solutions, offering energy-efficient designs, green materials, and eco-friendly construction techniques. Leveraging advancements in technology, such as Building Information Modeling (BIM) and virtual reality simulations, we streamline our operations, enhance project efficiency, and ensure superior outcomes for our clients, setting us apart in the thriving $1.4 trillion construction market.

Our success stems from our dedication to quality, innovation, and customer service. We pride ourselves on our attention to detail and commitment to exceeding client expectations through the use of sustainable materials and the latest technologies. This approach not only enhances the durability and aesthetics of our constructions but also promotes environmental sustainability. Our competitive edge is bolstered by our exceptional customer service, ensuring clear and open communication throughout the construction process and fostering a reliable, trustworthy relationship with our clients. These factors, combined with our ability to adapt to industry trends, position us as the premier construction service provider in Indianapolis.

The construction industry in the United States, with a market size of approximately $1.4 trillion, is experiencing significant growth and is expected to continue expanding at a CAGR of 4.9% from 2021 to 2026. This growth is driven by increased government spending on infrastructure, rising demand for residential and commercial buildings, and advancements in technology that improve construction efficiency. BlueprintBuilders Co. is well-positioned to capitalize on these trends, especially the growing demand for sustainable and eco-friendly building practices. Our focus on green construction solutions and the integration of technology into our operations allow us to meet the evolving needs of the market and distinguish ourselves within this competitive and lucrative industry.

Direct competitors and specific competitive advantages were not detailed in the provided information. As such, I’m unable to generate a summary for the Competitive Analysis section without these critical details.

Details regarding the Products, Services & Pricing, and the Promotions Plan were not included in the provided information. Thus, it’s not possible to create a summary for the Marketing Plan section without this essential information.

Our operations plan outlines a series of strategic milestones essential for the successful launch and growth of BlueprintBuilders Co. These include securing all necessary licenses and permits to avoid legal hurdles, officially launching with a strong brand presence in Indianapolis, and building a qualified team to uphold our commitment to quality and safety. We also prioritize establishing strong supplier relationships for cost-effective materials, developing a robust online presence to attract customers, and implementing efficient project management systems to streamline our operations. Achieving initial contracts and reaching a revenue of $15,000/month within the first 12 to 24 months are critical financial milestones, alongside establishing a commendable safety record and continuously reviewing and adjusting our business strategies to ensure adaptability and competitiveness in the dynamic construction market.

Welcome to BlueprintBuilders Co., a fresh face in the construction industry, committed to serving our community in Indianapolis, IN. As a new local construction company, we pride ourselves on filling the void left by the absence of high-quality construction services in the area. Our mission is to elevate the standard of building and design, ensuring that our clients’ visions come to life with excellence and precision. Our offerings are comprehensive, designed to meet a wide array of construction needs. We specialize in General Contracting, providing a broad range of services from project inception to completion, ensuring quality and efficiency every step of the way. Our Design-Build Services streamline the construction process, integrating design and construction phases to deliver cost-effective and innovative solutions. Additionally, our Construction Management services are tailored to keep projects on schedule and within budget, all while achieving the highest standards of construction quality. By offering these services, we aim to be the go-to source for all construction needs in Indianapolis, IN. Our base in Indianapolis, IN, positions us perfectly to serve customers throughout the city. This strategic location enables us to respond quickly to our clients’ needs, providing tailored solutions that reflect the unique aspects of our community. We are committed to contributing to the growth and development of Indianapolis, ensuring that every project we undertake enhances the city’s landscape. The foundation of BlueprintBuilders Co. rests on solid ground, thanks to our founder’s extensive experience in running a successful construction company. This expertise, combined with our commitment to outperforming the competition, sets us apart as a company poised for success. Our approach to construction is not just about building structures, but about building trust, reliability, and excellence into everything we do. We are uniquely qualified to lead the way in the construction industry, thanks to these core strengths. Since our inception on January 4, 2024, BlueprintBuilders Co. has made significant strides as a S Corporation. Our journey began with the creation of a distinctive logo and the development of our company name, reflecting our identity and mission. We also secured an excellent location, laying the groundwork for our operations and future growth. These accomplishments mark the beginning of our journey, and we are excited about the opportunities and challenges that lie ahead as we strive to redefine construction in Indianapolis, IN.  

The construction industry in the United States is a thriving sector that continues to show remarkable growth and potential. With a current market size of approximately $1.4 trillion, the construction industry plays a vital role in the nation’s economy, providing employment opportunities for millions of people and contributing significantly to the country’s GDP. Furthermore, the industry is expected to experience steady growth in the coming years, with an estimated compound annual growth rate (CAGR) of 4.9% from 2021 to 2026. This projected growth is driven by factors such as increased government spending on infrastructure projects, rising demand for residential and commercial buildings, and advancements in technology that enhance construction efficiency.

Several trends within the construction industry are aligning favorably for BlueprintBuilders Co., a new construction company serving customers in Indianapolis, IN. One such trend is the growing emphasis on sustainable and eco-friendly building practices. As more customers prioritize environmentally conscious construction, BlueprintBuilders Co. can position itself as a leader in sustainable building solutions, offering energy-efficient designs, green materials, and eco-friendly construction techniques. This aligns well with the company’s mission to provide high-quality construction services that not only meet customers’ needs but also contribute to a greener future.

Another trend that bodes well for BlueprintBuilders Co. is the increasing adoption of technology in the construction industry. From Building Information Modeling (BIM) to virtual reality simulations, technology is revolutionizing the way construction projects are planned, executed, and managed. BlueprintBuilders Co. can leverage these technological advancements to streamline its operations, improve project efficiency, and deliver superior results to its clients. By staying at the forefront of technological innovation, the company can differentiate itself and attract customers who value cutting-edge construction practices.

Below is a description of our target customers and their core needs.

Target Customers

BlueprintBuilders Co. will target local residents in search of reliable and innovative construction solutions. These customers are often in the process of renovating their homes or embarking on new home construction projects. They value quality, efficiency, and personalized service, which BlueprintBuilders will tailor its offerings to meet.

The company will also serve customers looking for eco-friendly and sustainable building options. As awareness and demand for green construction practices increase, this segment will represent a significant portion of the market. BlueprintBuilders will specialize in providing these environmentally conscious solutions, appealing to a demographic that prioritizes sustainability in their construction projects.

Moreover, BlueprintBuilders Co. will target small business owners seeking to expand or renovate their commercial spaces. This customer segment requires a construction partner that understands the unique challenges and regulations of commercial construction. By offering specialized services that cater to the needs of small businesses, BlueprintBuilders will position itself as a valuable resource for this sector.

Customer Needs

BlueprintBuilders Co. understands the paramount importance of delivering high-quality construction services to residents who demand excellence in their building projects. Clients can expect meticulous attention to detail, ensuring that every aspect of the construction process meets the highest standards of craftsmanship and durability. This commitment to quality not only satisfies the immediate needs of homeowners but also contributes to the long-term value and sustainability of their properties.

In addition to quality, BlueprintBuilders Co. recognizes the need for personalized and transparent communication throughout the construction process. Customers can rely on timely updates, clear explanations of the work being done, and responsive customer service that addresses their concerns and preferences. This approach fosters trust and ensures that the final product aligns perfectly with the client’s vision and expectations.

Furthermore, BlueprintBuilders Co. can adapt to the evolving needs and trends within the construction industry, incorporating the latest technologies and sustainable building practices. This not only appeals to environmentally conscious clients but also offers innovative solutions that can enhance efficiency, reduce costs, and ensure the longevity of their homes. By staying ahead of the curve, BlueprintBuilders Co. fulfills a crucial need for forward-thinking construction services that cater to the modern homeowner.

BlueprintBuilders Co.’s competitors include the following companies: Wilsoon Remodeling and Services, Right On Time, and Alexis Concrete Construction.

Wilsoon Remodeling and Services offers a wide range of services including kitchen and bathroom remodeling, home additions, and custom cabinetry. Their price points vary depending on the scope of the project, but they are known for offering competitive rates without compromising on quality. They serve primarily residential customers in the Indianapolis area and surrounding regions. Wilsoon Remodeling and Services generates revenue through their project-based services, focusing on renovations and custom projects. Their key strength lies in their extensive experience in remodeling and renovation, providing them a solid reputation in the market. However, their focus on remodeling limits their service offerings compared to competitors who may offer a broader range of construction services.

Right On Time specializes in timely, efficient construction and renovation services. They offer general contracting, project management, and a variety of renovation services. Their pricing is transparent and competitive, aimed at both residential and commercial clients in Indianapolis and its suburbs. The company prides itself on its punctuality and efficiency, ensuring projects are completed on time and within budget, which serves as their primary revenue source. Right On Time’s strengths include their strict adherence to timelines and strong project management capabilities. A potential weakness is their reliance on subcontractors, which can sometimes lead to inconsistencies in the quality of work.

Alexis Concrete Construction is focused on providing concrete construction services, including driveways, walkways, patios, and commercial foundations. They cater to both residential and commercial clients, offering competitive pricing that reflects the quality of materials and craftsmanship. They operate mainly in Indianapolis and its immediate surroundings. Their revenue comes from both small-scale residential projects and large commercial contracts, making them a versatile player in the market. Alexis Concrete Construction’s key strength is their specialization in concrete, which allows them to deliver high-quality results with durability and aesthetic appeal. However, their narrow focus on concrete services might limit their appeal to customers looking for a more comprehensive range of construction services.

At BlueprintBuilders Co., we pride ourselves on offering superior construction services that set us apart from our competition. Our team has a keen eye for detail and an unwavering commitment to quality, ensuring that every project we undertake exceeds our clients’ expectations. We use the latest technologies and sustainable materials, which not only enhances the durability and aesthetics of our constructions but also promotes environmental sustainability. Our ability to innovate and adapt to the latest trends in the construction industry allows us to offer unique solutions that meet the specific needs and preferences of our clients, providing a competitive edge that is hard to match.

Moreover, our customer service is second to none. We understand that construction projects can be overwhelming for our clients, which is why we maintain clear and open communication throughout the entire process. From the initial consultation to the final walkthrough, our team is dedicated to ensuring a seamless and stress-free experience. Our commitment to transparency, integrity, and professionalism fosters a sense of trust and reliability among our clients, making us the go-to construction service provider in the area. By combining our superior construction services with exceptional customer care, we not only meet but often exceed the expectations of those we serve, further solidifying our competitive advantage in the market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

BlueprintBuilders Co. stands out in the construction industry by offering a comprehensive suite of services tailored to meet various project requirements and client needs. The company specializes in general contracting, design-build services, and construction management, positioning itself as a one-stop shop for construction projects in the residential and commercial sectors. With a focus on quality, efficiency, and customer satisfaction, BlueprintBuilders Co. ensures that each project is executed with the utmost professionalism and attention to detail.

The cornerstone of BlueprintBuilders Co.’s offerings is its general contracting service. This service encompasses the overall planning, coordination, and control of a project from inception to completion. It is designed to meet the project’s time, cost, and quality constraints. General contracting services are priced on a project-by-project basis, but clients can expect average costs to range significantly depending on the scope and scale of their projects. This variability ensures that services are tailored to fit the specific needs and budget of each client.

In addition to general contracting, BlueprintBuilders Co. offers design-build services. This approach streamlines project delivery through a single contract between the owner and the design-build team. This method fosters collaboration and teamwork, which can significantly reduce the project timeline and costs. Design-build services are particularly beneficial for clients seeking a comprehensive solution from the initial concept through to completion. Pricing for these services is also project-specific, but on average, clients can expect to invest a competitive amount for the convenience and efficiency that the design-build approach provides.

Lastly, construction management is a critical service provided by BlueprintBuilders Co., targeting clients who require expert oversight and management of their construction projects. This service includes project planning, cost management, time management, quality management, contract administration, and safety management. Clients can expect to pay an average fee based on the overall project cost, which is typically a percentage that aligns with industry standards. Construction management services ensure that projects are completed on time, within budget, and to the highest quality standards.

BlueprintBuilders Co. prides itself on its commitment to delivering exceptional value through its wide range of services. By offering flexible pricing models and tailoring its services to meet the unique needs of each project, BlueprintBuilders Co. has established itself as a trusted partner in the construction industry. Whether clients are looking for general contracting, design-build solutions, or construction management expertise, BlueprintBuilders Co. is equipped to deliver outstanding results that exceed expectations.

Promotions Plan

To attract customers, BlueprintBuilders Co. employs a strategic mix of promotional methods, ensuring a robust presence both online and offline. Online marketing stands at the forefront of their strategy, leveraging the power of digital platforms to reach a broad audience. Through targeted social media campaigns, BlueprintBuilders Co. will engage potential customers on platforms where they spend a significant amount of time. The company will create compelling content that highlights their projects, expertise, and customer testimonials, fostering trust and interest among the audience.

Additionally, BlueprintBuilders Co. will utilize search engine optimization (SEO) to increase their visibility in search results. By optimizing their website content with relevant keywords, they will attract individuals actively searching for construction services in Indianapolis, IN. Email marketing campaigns will complement these efforts, allowing BlueprintBuilders Co. to directly communicate with potential customers, offering them special deals, and keeping them informed about the company’s latest projects and services.

Beyond online marketing, BlueprintBuilders Co. will also engage in traditional promotional methods to ensure comprehensive market coverage. Networking events and local trade shows will serve as excellent opportunities for face-to-face interaction with potential clients, building personal relationships that can lead to business opportunities. The company will also invest in high-quality brochures and business cards to distribute during these events, providing tangible reminders of their services.

Community involvement will play a crucial role in BlueprintBuilders Co.’s promotional strategy. By participating in local community projects and sponsoring events, the company will demonstrate its commitment to the Indianapolis area, building goodwill and recognition among residents. This approach not only helps in establishing a positive brand image but also fosters a sense of trust and reliability among potential customers.

Lastly, customer referrals will be encouraged through a referral program, rewarding existing customers for bringing new business. This method capitalizes on the trust and satisfaction of current clients, turning them into advocates for the company. By combining these diverse promotional methods, BlueprintBuilders Co. will effectively attract customers, establishing a strong foothold in the Indianapolis construction market.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of BlueprintBuilders Co., there are several key day-to-day operational processes that we will perform.

  • Project Planning and Management: We will meticulously plan each construction project, including timeline, budget, materials, and workforce requirements, to ensure efficient and timely completion.
  • Client Consultations: We will conduct daily consultations and meetings with clients to discuss their needs, expectations, and any changes to the project plans, ensuring client satisfaction and project feasibility.
  • Supply Chain Management: We will manage and monitor the supply chain closely to ensure that all necessary materials are available when needed and at the best possible price, avoiding delays or cost overruns.
  • Quality Control: We will perform regular quality checks on all ongoing projects to maintain high standards of construction and ensure compliance with all relevant building codes and regulations.
  • Workforce Management: We will manage our workforce efficiently, ensuring that the right teams with the appropriate skills are assigned to each project and that all workers adhere to safety standards.
  • Financial Management: We will monitor and manage the financial aspects of each project, including budgeting, billing, and invoicing, to maintain profitability and cash flow.
  • Regulatory Compliance: We will ensure compliance with all local, state, and federal regulations, obtaining necessary permits and inspections to prevent legal issues and delays.
  • Customer Service: We will provide exceptional customer service, addressing any concerns or issues promptly to maintain positive relationships with our clients.
  • Marketing and Business Development: We will engage in continuous marketing and business development efforts to attract new clients and projects, including digital marketing, networking, and participation in local and industry events.
  • Continuous Improvement: We will regularly review and analyze our operations and projects to identify areas for improvement, implementing changes to increase efficiency, reduce costs, and enhance customer satisfaction.

BlueprintBuilders Co. expects to complete the following milestones in the coming months in order to ensure its success:

  • Secure Necessary Licenses and Permits: Before beginning operations, the company must ensure it has all required local and state construction licenses and permits. This mitigates the risk of legal issues that can delay projects and add unforeseen costs.
  • Launch Our Construction Company: Officially launching the company involves setting up the legal structure, such as an LLC, and establishing a brand presence in the Indianapolis market through a combination of online and traditional marketing strategies.
  • Build a Qualified Team: Hiring skilled laborers, project managers, and administrative staff is crucial. Training programs should also be implemented to ensure quality and safety standards are met, reducing the risk of costly mistakes and accidents on the job.
  • Establish Supplier Relationships: Securing reliable suppliers for materials is essential. Negotiating favorable terms can help manage costs effectively, ensuring projects are completed on time and within budget.
  • Develop a Strong Online Presence: In today’s digital age, having a professional website and active social media profiles can attract customers. Showcasing completed projects and customer testimonials will build credibility and trust with potential clients.
  • Implement Project Management Systems: Adopting efficient project management and customer relationship management (CRM) software will streamline operations, allowing for better communication with clients and within the team, as well as more accurate budgeting and scheduling.
  • Secure Initial Contracts: Landing the first few construction contracts is crucial. This could involve bidding on both public and private projects. Achieving this milestone confirms the company’s ability to attract business and generate revenue.
  • Get to $15,000/Month in Revenue: Reaching this financial milestone within the first 12 to 24 months will be a strong indicator of the company’s viability and potential for growth. It demonstrates market demand, operational efficiency, and effective financial management.
  • Establish a Safety Record: Maintaining a record of safety, without significant accidents or violations, over the first 24 months can significantly enhance the company’s reputation, making it a preferred contractor for clients concerned about liability and project execution.
  • Review and Adjust Business Strategies: After 18 to 24 months, conducting a comprehensive review of business operations, market position, and financial health to adjust strategies as necessary will be crucial for continued growth and success. This ensures the company remains adaptive and competitive in the dynamic construction market.

BlueprintBuilders Co. management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Charlotte Moore, CEO

Charlotte Moore, CEO, brings a wealth of experience and a proven track record of success to BlueprintBuilders Co. Her background as the head of a successful construction company showcases her ability to navigate the complex challenges of the construction industry. Charlotte’s leadership skills, combined with her thorough understanding of both the operational and financial aspects of running a construction business, make her exceptionally well-qualified to guide BlueprintBuilders Co. towards achieving its strategic goals. Her experience in steering her previous company through various market conditions and her ability to foster strong relationships with stakeholders are critical assets for BlueprintBuilders Co.’s journey towards lasting success.

To achieve our growth objectives, BlueprintBuilders Co. requires $225,000 in funding. This capital will be allocated towards essential investments including location buildout, equipment, and operational expenses such as staff salaries and initial marketing efforts. These financial resources will lay the foundation for our operations, enabling us to implement our business plan effectively and position ourselves for success in the competitive Indianapolis construction market.

Financial Statements

Balance sheet.

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Income Statement

[insert income statement]

Cash Flow Statement

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Construction Business Plan Example PDF

Download our Construction Business Plan PDF here. This is a free construction business plan example to help you get started on your own construction plan.  

How to Finish Your Construction Company Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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How to Write a Construction Business Plan

  • Small Business
  • Business Planning & Strategy
  • Write a Business Plan
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How to Get Contract Work

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Starting a construction business during the chaotic, post-pandemic building climate is riskier than ever. Supply chain issues, lumber availability, a decrease in skilled labor and an increase in remote work are changing the commercial landscape. The Wild West residential housing market poses huge challenges even for long-time builders.

Looking at small construction company business plan examples may reduce your risk by helping you make more accurate forecasts and projections.

Decide on Your Niche

Before you write a business plan, do some marketplace research and decide what type of construction business you want to launch. Your options include:

  • Repairs and renovations
  • Deck building
  • Residential home building
  • Commercial building

You might start a business as a subcontractor in an area such as:

  • Exterior painting
  • Windows and doors

After you decide on a specialty, look at the companies that operate in your area, what they charge and where they advertise. Research what it will cost to equip this type of business. Find out whether you need a state license and look into how easy or difficult it will be to find and hire subcontractors to work for you.

Look for discussion forums in your target niche to see what your competitors and other contractors outside your service area discuss. This is when you start contacting suppliers to find out if you can buy directly from wholesalers or if you need to buy your equipment and supplies from big box hardware stores.

Get Some Help

You can find many free business plan templates online, including guidance from the U.S. Small Business Administration website. In addition to free workshops, your local SCORE chapter offers free mentors to help you write your business plan.

Create a Business Plan Guide

If you develop a comprehensive contents page for your business plan, it will guide you step-by-step as you write the guide. In addition to a cover page and contents page, include the following:

  • Executive summary
  • Marketplace overview
  • Business description
  • Marketing strategy
  • Financial projections

Executive Summary

This one-page section should include an overview of the business you’re proposing but without all your numbers. You’ll provide those in subsequent sections.

Marketplace Overview

Describe what your marketplace looks like, who your competitors are, who your target customers are, what pricing looks like, and any economic forecasts for this market.

Business Description

Describe your business in terms of the specific services you’ll offer, who will do the work, and what sets you apart from your competitors. Lay out how you will bid and price jobs. Discuss the business entity type you plan to choose (corporation vs. limited liability company, for example).

Marketing Strategy

Lay out how you’ll set your prices and how you’ll promote your business. You can use flyers, direct mail, cross-promotions, social media campaigns, a website, review sites, cold calls and other forms of advertising and promotion. Referrals and cross-promotions from other contractors should be a big source of your marketing.

Financial Projections

Create a pre-launch startup budget that details how much upfront money you’ll need before you start advertising for your first client. This should include all your equipment and supplies expenses, the cost of a vehicle, legal fees and insurance.

Next, create an operating budget that shows your overhead. These are the expenses necessary to run the business each month, such as phones, a website, estimating software and office expenses.

Calculate your job prices using your materials and labor costs for each contract. Then add in the percentage of startup cost and overhead you need to include. Add your desired profit per job.

Make three revenue and expense forecasts for your business: conservative, realistic and optimistic. These forecasts will include your estimated sales, expenses and profits by month and year.

End your business plan with a re-cap, especially if you’re going to use the business plan to solicit financing from a bank or investor. Your summary will re-state what’s in your executive summary, but with more financial detail.

  • U.S. Small Business Administration: Write Your Business Plan
  • SCORE: Find Your Business Mentor

Steve Milano is a journalist and business executive/consultant. He has helped dozens of for-profit companies and nonprofits with their marketing and operations. Steve has written more than 8,000 articles during his career, focusing on small business, careers, personal finance and health and fitness. Steve also turned his tennis hobby into a career, coaching, writing, running nonprofits and conducting workshops around the globe.

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Construction Business Plan

Ready to start your own construction business? Set yourself up for success by creating a solid business plan. Download this business plan template, with pre-filled examples, to inspire your own plan.

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What you'll get with this template:

  • A complete business plan Unlike other blank templates, our business plan examples are complete business plans with all of the text and financial forecasts already filled out. Edit the text to make the plan your own and save hundreds of hours.
  • A professional business plan template All 550 of our business plans are in the SBA-approved format that's proven to raise money from lenders and investors.
  • Instructions and help at every step Get help with clear, simple instructions for each section of the business plan. No business experience necessary.
  • A Word doc you can edit We don't just have PDF documents that make editing a challenge. Each plan is available in Word format so you can start editing your business plan example right away.

Key sections in this construction business plan:

All of our sample business plans are complete and include all of the sections that bankers and investors expect to see. Every plan includes the following sections:

  • Executive Summary : A quick overview of your plan and entices investors to read more of your plan.
  • Company : Describes the ownership and history of your business.
  • Products and Services : Reviews what you sell and what you're offering your customers.
  • Market Analysis : Describes your customers and the size of your target market.
  • Strategy and Implementation : Provides the details of how you plan on building the business.
  • Management Team : An overview of the people behind the business and why they're the right team to make the business a success.
  • Financial Plan : A complete set of forecasts including a Profit and Loss Statement, Cash Flow Statement, and Balance Sheet.

If you're interested in learning how to write a business plan, read our free in-depth guide to writing a business plan , download our free Business Plan Template , and check out LivePlan —our award-winning business planning software.

Looking for a sample business plan PDF? You can download a few PDF examples below:

  • Accounting and Bookkeeping Sample Business Plan PDF
  • Agriculture Farm Sample Business Plan PDF
  • Cleaning Service Sample Business Plan PDF

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October 19, 2023

Construction Business Plan: Essential Steps for Success

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Table of Contents

Tired of paperwork?

The construction industry is a vital sector in any economy, contributing to infrastructural development and job creation. However, starting and running a successful construction business can be a complex and challenging undertaking. 

A well-crafted business plan not only sets the foundation for your company's objectives and strategies but also helps secure funding from investors or banks. It encompasses every aspect of the business, from market research to financial projections, and guides the company through various stages of growth.

In this article, we’ll discuss the key elements of a construction business plan. We’ll walk you through the process of creating a comprehensive document that clearly outlines your company's goals and how you’ll achieve success in the competitive construction industry.

What Is a Business Plan for a Construction Company?

A business plan for a construction company outlines the company's objectives and the steps it’ll take to accomplish them in the coming years. It’s a crucial tool for ensuring long-term success, as it provides a clear roadmap and helps management make informed decisions.

The first aspect of a construction business plan is an executive summary. This brief section provides an overview of the company and its goals. It also offers a concise description of the owner's experience and qualifications, which can be especially important for a construction firm where the owner often has a hands-on role in managing projects.

Next, the plan details the company's operations, explaining the services offered, its target market, and the specific projects it plans to undertake. This may include residential construction, commercial projects, or specialized industries such as infrastructure or environmental work. Market research is the backbone of this section, providing data on competitors, target clients, and industry trends.

Another key component is the financial analysis, which helps determine the company’s financial viability. This section includes a projected income statement, cash flow projections, and a balance sheet. It’s important for the company to have a clear understanding of its current and future financial health to make informed decisions regarding pricing, staffing, and investments.

A comprehensive marketing and sales strategy is also outlined in the business plan, which details how the construction company will attract new clients, maintain relationships with existing customers, and drive steady growth. This may involve a mix of traditional advertising campaigns, online marketing, and networking within the industry.

Clear and actionable goals and objectives must be defined throughout the business plan. These objectives should be specific, measurable, attainable, relevant, and time-bound (SMART) so the company can track its progress and adjust its strategies as necessary.

The Importance of Good Business Plans for Construction Companies

Beat the competition.

A solid construction business plan is essential to identify your company's competitive advantage and determine how to outperform competitors. In a constantly changing market, understanding the competition helps you redefine your strategies and establish your company as an industry leader. Through a well-formulated plan, business owners can analyze strengths, weaknesses, opportunities, and threats to develop responsive and effective tactics that’ll set the company apart.

Understand How You'll Grow

You need a clear roadmap and vision in your construction business plan that outlines the goals and strategies you want to pursue. That ensures all team members are on the same page, work towards the same objectives, and are fully aligned with the company's long-term vision. By setting achievable goals, business owners can focus resources on tasks and projects that’ll yield the greatest results, allowing for a smooth and controlled growth trajectory.

The Importance of Financing

Thorough construction business plans are crucial not only for internal organization and guidance but also when seeking financing and funding. Investors, lenders, and financial institutions such as banks and angel investors will require a detailed explanation before committing their resources. A concise, clear, and confident plan will showcase your firm's potential and justify your financing request.

Highlighting your strategies, past successes, and growth potential demonstrates to lenders and investors that you’ll use the money they invest wisely to achieve specific goals. Whether through debt financing, bank loans, or partnering with investors, a well-crafted business plan can be the deciding factor in securing the funding you need.

How to Create a Construction Business Plan in 2023: 7 Steps to Writing a Business Plan for Contractors

Write your business summary.

Begin by writing an executive summary that outlines your company's mission statement, goals, and overall strategy. This section should provide a brief overview of your company, including its history, partners, and management team. Focus on explaining how your business will address the needs of your target audience while showcasing your team’s experience and expertise.

Decide on Your Business Structure

Determine the best structure for your construction business, whether it's a sole proprietorship, partnership, corporation, or limited liability company (LLC). Consult with experienced entrepreneurs or business owners to fully understand the advantages and disadvantages of each option. Consider factors like liability protection, tax implications, and operational flexibility.

Conduct a Market Analysis and Competitor Research

Thorough market analysis includes competitor and customer research. Start with an industry analysis to understand the current state of the construction sector, assess your opportunity, and identify trends that may impact your business. Then, perform a competitive analysis to identify what sets your company apart from others, focusing on strengths, weaknesses, opportunities, and threats. Analyze your target market's demographics, size, and preferences to ensure your services align with their needs.

What's Coming in and Going out?

Develop a financial plan that projects your company's revenue and expenses. It should include income statements, cash flow statements, and balance sheets. Account for overhead costs and any additional expenses required to run your business as well. Create budget forecasts that reflect different scenarios (e.g., best-case and worst-case) to provide a realistic outlook for your finances.

Detail How You’ll Win and Keep Customers

Explain the marketing strategies you'll employ to attract new customers and retain existing clients. These could be advertising, word-of-mouth referrals, or social media promotion. Develop a comprehensive marketing plan that outlines the goals, tactics, and budget for each campaign. During creation, consider the preferences of your target audience when choosing which channels to focus on.

Form a Strategy for Securing Jobs

Develop a proposal and bidding process that enables your company to manage construction projects effectively. Highlight the experience and qualifications of your project manager and staff, as well as your commitment to safety and quality control. You should also establish a network of reliable subcontractors and suppliers to ensure efficient project execution. Be prepared to address client questions or concerns promptly and professionally.

By following these steps, you'll be on your way to building a solid construction business plan that secures funding, attracts the right clients, and sets up your enterprise for success in 2023 and beyond.

Sample Construction Business Plan Outline

The example  outline below covers various important aspects of a comprehensive plan for construction businesses. Let it guide the creation of your own plan, giving careful attention to each of the following sections. 

Executive Summary : Begin your construction business plan with an executive summary. This section should provide a brief overview of the business, including the company's mission statement, objectives, and key differentiators. Highlight the unique aspects that set your construction company apart from the competition.

Company Description : In this section, describe the company in detail, outlining its structure, ownership, and legal framework. Include information about the business location, the management team, and any relevant experience in the construction industry.

Market Analysis : This part of the construction business plan should focus on understanding the target market, analyzing the industry's trends, and identifying the potential customers. Provide a detailed analysis of the competitive landscape, including the strengths and weaknesses of existing construction firms in the market. Offer insights into the company's positioning and strategies for improvement.

Services and Products : Clearly outline the services and products offered by the construction business. This should include all types of projects, such as residential, commercial, or infrastructure projects, as well as the range of services like design, construction, renovation, or maintenance. Ensure that the services and products align with the target market's needs and preferences.

Marketing and Sales Strategy : Enumerate the marketing and sales strategies the construction business will employ to attract clients and generate consistent revenue. Discuss advertising plans, promotional campaigns, online presence, and any networking or partnership opportunities that would help in business growth.

Operations Plan : This section should detail the operational aspects of the construction business, including the workflow, processes, equipment, staffing requirements, and quality control measures. Additionally, provide information about subcontractors or suppliers, if applicable.

Financial Projections : Lastly, a well-crafted construction business plan should contain a financial projection section. This includes comprehensive estimates of the company's income, expenditure, cash flow analysis, and startup costs. Moreover, include realistic financial objectives, along with a break-even analysis and financial statements.

By carefully considering each of these sections and integrating them in your construction business plan, you will be able to develop a confident, knowledgeable, and clear roadmap for the success of your venture.

Key Takeaways 

A construction business plan serves as a comprehensive blueprint for the development and growth of a home-building company. To create a successful business plan, focus on outlining your objectives, target market, and strategies for achieving those goals. 

When developing strategies for your construction business plan, it is essential to analyze your target market and identify a niche that can set you apart from competitors. Establishing a strong financial plan and working on efficient project management can also contribute to the overall success of your construction company. 

By carefully outlining the key components and focusing on strategies that produce positive results, you can set the foundation for a thriving home-building business.

How do I prepare to write a construction business plan?

Before writing your construction company business plan, it is essential to conduct market research and gather crucial information about your potential clients, competitors, and the industry. It is also crucial to outline your goals, define your target market, and create a clear business strategy. Additionally, you should gather financially-driven data, such as anticipated expenses and projected income, to include in your plan. This research entails familiarizing yourself with current market trends and regulations within the construction sector to form a comprehensive and accurate plan.

Why do I need a construction business plan?

A construction business plan is vital for numerous reasons. Primarily, it serves as a roadmap outlining your company's goals, objectives, and the strategies necessary to achieve success. A well-written business plan helps ensure that your company stays on track, maintaining focus on growth and development. Additionally, a detailed plan is essential for attracting potential investors and lenders, convincing them of your company's viability and the feasibility of your strategies. A construction business plan acts as an essential tool to secure financing and monitor progress, which ultimately contributes to the long-term success of your company.

What Should Be Included in a Construction Business Plan?

A comprehensive construction business plan should include the following elements:

Executive Summary: This section provides a brief overview of your construction company, its mission, and goals.

Company Overview: Here, you will detail the structure of your business, its history, and any accomplishments made so far.

Market Analysis: This section will provide an in-depth view of the industry, exploring current market trends, and potential clientele and competitors in your target market.

Marketing Strategy: In this part, you will delineate your plan to engage your target audience, attract new customers, and retain them long-term.

Operations Plan: This section gives a detailed account of your daily operations, project management, and the resources necessary for smooth functioning.

Financial Plan: This portion focuses on the financial aspects of your business, including projections, cash flow statements, and profit and loss balances.

How to Make Your Home Building Business Plan Successful?

To ensure the success of your home building business plan, follow these guidelines:

Maintain a clear and concise plan : Ensure that your business plan is easily understandable, with a clear focus on its goals and strategies.

Stay realistic : Avoid making exaggerated or false claims; this diminishes your credibility to potential investors and lenders.

Use accurate and up-to-date information : Base your plan on verified market research and industry trends to project achievable results.

Employ practical strategies : Develop strategies that are feasible and relevant to your target market and industry.

Monitor and adjust : Continually evaluate the progress and performance of your construction business to refine your strategies as necessary.

By following these pointers, your construction business plan stands a better chance at success, attracting investors, and securing the required funding for your company's growth.

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Construction Company Business Plan

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Growing a construction company is much more difficult and taxing than completing projects. 

From acquiring a new project to meeting deadlines, managing the budget, and many more things in between- you will find yourself drowning in responsibilities when you start a construction company.

A construction business plan can come to your rescue in such burdensome situations. If prepared well, it can become a reference point for your company as it continues to grow.

Confused about how to write a business plan?

Well, this article will serve you perfectly. It will help you understand the contents of the business plan and offer a sample template for your construction company.

So let’s build a solid construction company business plan with this detailed guide.

Let’s dive right in.

Key Takeaways

  • Venture into the market by conducting thorough industry and market analysis.
  • Widen the scope of your service offerings to cater varying needs of your target audience.
  • Create a detailed operations plan to get thorough guidance in your business operations.
  • Conduct a SWOT analysis to identify your competitive edge over the competitors.
  • Determine your marketing strategies to launch your business and get it popular amongst your target market.
  • Define your business objectives, goals, and mission values to create a foundation for essential business policies.
  • Account for various project costs, operating costs, and office expenses to form realistic cash-flow projections.

Why do you need a construction company business plan?

Apart from the fact that investors and banks would ask for a business plan when you seek funding, here are a few more reasons you need a business plan.

  • A business plan offers a roadmap to your business. It acts as a guiding block that has answers to all your how, when, where, and what.
  • It helps in determining the exact target market for your business and formulating strategies to cater accordingly.
  • There are millions of construction companies competing in the industry. You can identify your strengths through a business plan and design a competitive edge to stand apart.
  • A well-rounded plan prepares you for emergencies that may arise in your business by making a plan for every situation.
  • A whole lot of business processes repeat every day. A business plan helps bring consistency by establishing SOPs for various business activities.

And of course, you get your desired funding with a solid business plan that vouches for the potential of your construction company.

Key components of a construction business plan

Writing a business plan gets much easier with a structurally defined flow. Well, let’s have a look at key components that a construction company business plan must have.

Executive Summary

A brief summary of an entire business plan that will encourage the readers to read further.

Company Overview

A brief company description including every detail from company structure to its mission statement and future goals.

Market Analysis

A thorough analysis of the construction industry and your target market. It also includes sections for competitor analysis, future market trends, and scope of growth.

Construction Services

Outline the construction services that your company will offer. Highlight any additional services that will make you a distinct player.

Marketing and Sales Strategy

It includes a strategic plan to achieve success through marketing and sales. Determine the best course of action for your business.

Management Team

Introduce key personnel in managerial and leadership roles. Discuss their roles, qualifications, experience, and expertise.

Operations Plan

A detailed plan that streamlines the everyday operations right from construction methods to hiring employees.

Financial Plan

A financial plan highlights the prominent figures and key reports of your construction company by making necessary financial projections.

Let’s dive further into these topics and get a detailed understanding of writing your business plan.

Related Construction Company Resources

  • Construction Company Marketing Plan
  • Key Stats for the Construction Sector
  • Start-up Cost For Construction Company
  • How to Start a Construction Business

A step-by-step guide to creating a construction company business plan

A poorly written plan serves no purpose. However, with this step-by-step guide, you will uncover every detail that goes into making a fantastic and purpose-serving business plan.

1. Get a business plan template

Writing a comprehensive business plan is taxing and time-consuming. But if you do it well, you will have a guidebook for running your construction company.

Now, there is a lot that needs to be considered, planned, and accounted for as you start writing the plan. Even if you closely follow a construction business plan outline, there are higher chances of you losing track or getting stuck at certain sections.

This is why you need a business plan template to give a solid structure to your business idea. With industry-relevant examples and a guide, the Upmetrics business plan template is easy to edit and customize.

Whether you own a general contracting firm or specialize in residential construction or specialty trades- we have plenty of construction-related templates for you to choose from.

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2. Write an executive summary

The executive summary is a concise yet insightful description of your entire business plan.

This one-page document summarizes the most important questions that a reader might have and offers a peek into what they are about to uncover. Investors take a brief glance at your executive summary before deciding whether to proceed further or not.

An executive summary must outline the following details of your construction business in persuasive consecutive paragraphs.

  • The exact business opportunity
  • The target market
  • The problem and the solution to it
  • Products and services offered by you
  • Market size and growth potential
  • Financial highlights
  • Management team

Maintain a personal storytelling tone while writing this section and encapsulate every minute detail that can make a difference.

But wait, don’t start writing yet. Write your executive summary only after you are done writing an entire plan. This will help you summarize effectively.

3. Prepare a company overview section

This section of a business plan will focus entirely on the details of your construction company.

From the type of construction company to the construction company’s goals- everything in this section is about your company description.

To begin with, highlight the type of construction business you will start. For instance, a residential construction company, general contracting company, industrial construction company, or specialty trade construction.

Clarify, if this will be a new business or an extension of existing business. If the business is already operating, offer a brief description of the business history.

After that, highlight the business structure of your construction company. Are you going to be a sole trader or start a limited liability company (LLC) or a limited partnership firm? The business structure you choose will decide how the finances and taxes will work in your business.

Now, this section is your chance to weave magical stories around your construction company. Present the mission statement, company’s objectives, and future goals over here.

For instance,

Mission statement : Syncore aims to become a trusted name for sustainable residential construction projects in Arizona by 2028. With our commitment to the highest quality standards, we will penetrate the market with our premium budgeted solutions.

Business goals :

  • Onboarding and signing 15 construction projects in a span of 6 months.
  • Generating revenue of $2 million by 2025.

Like this, you will write this entire section in parts by offering a brief overview of your construction business.

4. Conduct a competitive and market analysis

In this section of a business plan, you begin with industry analysis and then narrow it down to your particular market segment. This is important to show your potential investors that there are promising opportunities in this market.

Using market research practices determine the target market for your construction business. Create a buyer persona to identify what your ideal customer will look like.

Further, highlight your competitors in this competitive construction industry. Using SWOT analysis and PESTEL, determine the strengths and weaknesses of competing construction companies. In this section, you will also highlight your strengths to gain a competitive edge over existing players.

Don’t limit your market study to merely understanding the current scenarios. Extend the research and identify future trends and growth possibilities in your targeted market.

If you are a residential construction company focused on sustainable building practices, you must include the following details in your market analysis section.

  • How large is the construction industry?
  • What segment of the construction market will you capture?
  • Who will avail of the construction services?
  • What is the spending capacity of your target customers?
  • Who are the top competing construction companies?
  • What are the emerging trends in the industry and how will you leverage those?
  • What is the growth potential of your target market?

Focus on quality market research as this will form the base of your further projections and strategies.

industry analysis construction company business plan

This screenshot of the construction business plan example highlights only the market size for HDFL construction. You can also include details like competitors analysis, growth potential, and market trends here.

5. Describe your construction service offerings

What construction services will you offer your potential clients?

Offer a detailed answer to this question, as you write a business plan section for service offerings.

Overall, this section should highlight every service offering that will bring you money. This could include services like,

  • General contracting services
  • Design and Engineering
  • Construction
  • Renovation and remodeling
  • Project management
  • Specialty services i.e. concrete work, HVAC installation, Roofing services
  • Maintenance and repairs

Offer a brief understanding of these service offerings and highlight construction jobs you will specialize in. For instance, remodeling of kitchen and bathroom.

Now, will your construction company sell any construction materials for profit? If so, include details for that as well.

It’s important to consider the breadth of your service offerings to keep the customers coming back.

Overall, this section is your chance to prove to potential investors that your services can stand solid in the competitive construction industry.

6. Propose marketing and sales strategies

According to the IBIS world report , there are more than 3,787,470 construction businesses in the USA. Starting a construction company will add one more to this list, but hey- How do you wish to make a brand that your target audience can recall easily?

All the market assessment and understanding of your potential clients will come in handy at this stage as you make your marketing plan and sales strategies.

Take an opportunity to lay out your sales plan in this section. If you have existing customers, explain how you plan to retain them.

After you are done making your sales strategies, touch the marketing aspect.

Firstly, identify the way you want your brand to be recognized- as an ordinary construction firm, a luxury construction company, a sustainable solutions firm, or an affordable construction company. This will help you make a marketing plan.

Your marketing strategy should answer the following questions:

  • Which marketing channels will you use-  Online, offline, or a mix of both?
  • How will you generate more leads?
  • Online marketing methods- search engines, social media, Email marketing, content marketing, etc.
  • If you are going to be utilizing social media platforms- which ones?
  • How much will you budget for paid ads?
  • Will you use billboards, pamphlets, and newspaper advertisements to market your business?

Keep in mind the marketing channels where you can find your potential customers. For instance, you are more likely to find conversions through Email campaigns than social media campaigns, if you are finding clients for commercial construction.

All in all, in this section you have to draw potential investors’ attention with your sales and marketing strategy.

7. Introduce your management team

Everyone is aware of the cutthroat competition in the construction industry. Knowing that you need an able team to transform your business plan into a successful venture.

After laying out your marketing strategy, it’s time to introduce the key management and leadership team to your business plan.

It’s okay to brag about the talented individuals you have in your company. From construction heads to project managers, highlight the achievements, experience, and expertise of these people and prove their asset-worthiness for your company.

Also, draw the hierarchical map to give potential investors an idea of your organizational structure.

This is your time to prove that you have both the means and manpower to run a successful company.

8. Outline your operational plan

You may know construction, but do you know how to run a construction business?

As someone said, “ Seamless operations are the silent engine of extraordinary business achievements”

Before even taking the first project, it’s important to define operations and SOPs for different business activities. Make it so thorough that it can act as a guidebook whenever a problem arises in your construction company.

As you write a business plan for this section, focus on answering the following questions:

  • What construction materials will you use?
  • What will be the supply chain process in your construction company?
  • Who will oversee the project management on site?
  • What will be the timeline for completing projects?
  • What will be health and safety protocols for construction workers?
  • What will be the process of construction work?
  • How will the communication flow within an organization?
  • What technologies and equipment will you use?
  • How will you ensure quality work?
  • How will you hire employees?
  • What accounting software will you use?

This is just a general gist of questions that can help you prepare this section. Consider it as a living document that will undergo various changes as the business commences and grows.

A thorough operations plan will lay a clear groundwork for running a company. Moreover, it will instill investors’ faith in your ability to run a construction company.

9. Create a financial plan

Writing a sound financial plan is a challenge but nothing that your determined mind can’t handle.

Whether you plan to raise funds or get bank loans, you need a sound financial plan. Investors will analyze this section and only if they find your business financially viable, will they invest.

In this section, you will make financial projections and estimates for your construction company. This includes forecasting sales, estimating startup costs , projecting overhead costs, and making a pricing plan.

Using the startup costs projection, determine how much funding is essential to start your own construction company.

Also, prepare different reports like income statements, cash flow statements, balance sheets, and break-even analyses using the projections made earlier.

To make a financial plan more relevant, consider various progressive and aggressive situations.

Lastly, prepare graphs, charts, and diagrams to make this section visually appealing and easy to grasp.

Now, stop. Don’t start writing a financial plan yet. You need a financial forecasting tool from Upmetrics to help you with projections and calculations of cash flow, sales, revenue, and everything else. Simply enter the data and it will make detailed and precise calculations for you.

Trust us, you don’t want to scratch your heads writing the entire plan from ground level.

And that’s it! With all this information you pretty much know everything that a construction business plan must have.

Construction Industry Highlights 2023

Now that you are almost set to open a construction company, here are a few industry statistics that might interest you.

  • Market size : The US construction market sector was valued at 1.8 trillion US dollars in 2022.
  • Growth of the virtual construction market : The global BIM market is 7.9 billion US dollars . North America is projected to be a market leader capturing 30% of this market.
  • Rise in prefabrication and modular construction : Healthcare facilities followed by hotels/motels and educational institutions are most likely to avail of modular construction facilities.
  • Major concerns : The leading concerns encircling the construction industry are inflation and supply chain disruptions faced by nearly 90% of constructors.
  • Sustainable and green building : There is a continuous increase in demand for sustainable and green building solutions. As for 2021, the green building market in the USA was reported to be approximately 83 billion dollars .
  • Growing investment in smart cities : According to IDC, the investment in smart cities is expected to grow to 203 billion dollars by 2024.

From sustainability to tech-centric processes, the construction industry is making huge shifts in trends. Both, small businesses and large have to evolve according to changing times to keep themselves relevant.

Download a sample construction business plan

Facing difficulty writing a business plan? Well, we have a perfect resource for you.

Download the Upmetrics sample business plan template. Our template offers step-by-step instructions and prompts to ease the entire plan writing process. It’s designed to meet modern market needs and is perfectly detailed with construction-relevant examples.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently asked questions, what kind of market research should i include in my construction business plan.

The market research for your construction business plan must include the following details:

  • The market size of your targeted market, i.e. commercial construction, residential construction, etc.
  • The target audience of your services and their buyers’ persona
  • Top competing firms and companies offering similar services
  • Emerging trends in your market
  • Growth potential for your firm

Is a SWOT analysis necessary for a construction company business plan?

Absolutely yes. There are more than a billion construction companies in the USA itself. Starting another business won’t guarantee success unless you have a business that can withstand the dynamic competitive environment. SWOT analysis will make you aware of the company’s strengths, weaknesses, and the opportunities it can avail

What are the initial startup costs for a construction company?

It is possible to start a construction company with as little as $10,000. However, if you plan to set up a mid-sized construction company, expect to spend anywhere around $50,000-$250,000 on getting a basic setup. This includes accounting for licenses, insurance, office setup, construction materials, and payroll for the initial months.

Can I get government grants for a construction business?

Yes, you can apply for government grants to start your construction business. Check the local, federal, and state regulations to see which grants are applicable to your business. Check the eligibility and apply accordingly.

How often should I update my construction business plan?

A business plan is a living document that can guide you toward success if mapped properly. Ideally, you should update your business plan every 4-6 months to make it relevant. Set aside time to do so as a renewed plan will offer deep and meaningful insight into your business goals.

About the Author

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Create a form in Word that users can complete or print

In Word, you can create a form that others can fill out and save or print.  To do this, you will start with baseline content in a document, potentially via a form template.  Then you can add content controls for elements such as check boxes, text boxes, date pickers, and drop-down lists. Optionally, these content controls can be linked to database information.  Following are the recommended action steps in sequence.  

Show the Developer tab

In Word, be sure you have the Developer tab displayed in the ribbon.  (See how here:  Show the developer tab .)

Open a template or a blank document on which to base the form

You can start with a template or just start from scratch with a blank document.

Start with a form template

Go to File > New .

In the  Search for online templates  field, type  Forms or the kind of form you want. Then press Enter .

In the displayed results, right-click any item, then select  Create. 

Start with a blank document 

Select Blank document .

Add content to the form

Go to the  Developer  tab Controls section where you can choose controls to add to your document or form. Hover over any icon therein to see what control type it represents. The various control types are described below. You can set properties on a control once it has been inserted.

To delete a content control, right-click it, then select Remove content control  in the pop-up menu. 

Note:  You can print a form that was created via content controls. However, the boxes around the content controls will not print.

Insert a text control

The rich text content control enables users to format text (e.g., bold, italic) and type multiple paragraphs. To limit these capabilities, use the plain text content control . 

Click or tap where you want to insert the control.

Rich text control button

To learn about setting specific properties on these controls, see Set or change properties for content controls .

Insert a picture control

A picture control is most often used for templates, but you can also add a picture control to a form.

Picture control button

Insert a building block control

Use a building block control  when you want users to choose a specific block of text. These are helpful when you need to add different boilerplate text depending on the document's specific purpose. You can create rich text content controls for each version of the boilerplate text, and then use a building block control as the container for the rich text content controls.

building block gallery control

Select Developer and content controls for the building block.

Developer tab showing content controls

Insert a combo box or a drop-down list

In a combo box, users can select from a list of choices that you provide or they can type in their own information. In a drop-down list, users can only select from the list of choices.

combo box button

Select the content control, and then select Properties .

To create a list of choices, select Add under Drop-Down List Properties .

Type a choice in Display Name , such as Yes , No , or Maybe .

Repeat this step until all of the choices are in the drop-down list.

Fill in any other properties that you want.

Note:  If you select the Contents cannot be edited check box, users won’t be able to click a choice.

Insert a date picker

Click or tap where you want to insert the date picker control.

Date picker button

Insert a check box

Click or tap where you want to insert the check box control.

Check box button

Use the legacy form controls

Legacy form controls are for compatibility with older versions of Word and consist of legacy form and Active X controls.

Click or tap where you want to insert a legacy control.

Legacy control button

Select the Legacy Form control or Active X Control that you want to include.

Set or change properties for content controls

Each content control has properties that you can set or change. For example, the Date Picker control offers options for the format you want to use to display the date.

Select the content control that you want to change.

Go to Developer > Properties .

Controls Properties  button

Change the properties that you want.

Add protection to a form

If you want to limit how much others can edit or format a form, use the Restrict Editing command:

Open the form that you want to lock or protect.

Select Developer > Restrict Editing .

Restrict editing button

After selecting restrictions, select Yes, Start Enforcing Protection .

Restrict editing panel

Advanced Tip:

If you want to protect only parts of the document, separate the document into sections and only protect the sections you want.

To do this, choose Select Sections in the Restrict Editing panel. For more info on sections, see Insert a section break .

Sections selector on Resrict sections panel

If the developer tab isn't displayed in the ribbon, see Show the Developer tab .

Open a template or use a blank document

To create a form in Word that others can fill out, start with a template or document and add content controls. Content controls include things like check boxes, text boxes, and drop-down lists. If you’re familiar with databases, these content controls can even be linked to data.

Go to File > New from Template .

New from template option

In Search, type form .

Double-click the template you want to use.

Select File > Save As , and pick a location to save the form.

In Save As , type a file name and then select Save .

Start with a blank document

Go to File > New Document .

New document option

Go to File > Save As .

Go to Developer , and then choose the controls that you want to add to the document or form. To remove a content control, select the control and press Delete. You can set Options on controls once inserted. From Options, you can add entry and exit macros to run when users interact with the controls, as well as list items for combo boxes, .

Adding content controls to your form

In the document, click or tap where you want to add a content control.

On Developer , select Text Box , Check Box , or Combo Box .

Developer tab with content controls

To set specific properties for the control, select Options , and set .

Repeat steps 1 through 3 for each control that you want to add.

Set options

Options let you set common settings, as well as control specific settings. Select a control and then select Options to set up or make changes.

Set common properties.

Select Macro to Run on lets you choose a recorded or custom macro to run on Entry or Exit from the field.

Bookmark Set a unique name or bookmark for each control.

Calculate on exit This forces Word to run or refresh any calculations, such as total price when the user exits the field.

Add Help Text Give hints or instructions for each field.

OK Saves settings and exits the panel.

Cancel Forgets changes and exits the panel.

Set specific properties for a Text box

Type Select form Regular text, Number, Date, Current Date, Current Time, or Calculation.

Default text sets optional instructional text that's displayed in the text box before the user types in the field. Set Text box enabled to allow the user to enter text into the field.

Maximum length sets the length of text that a user can enter. The default is Unlimited .

Text format can set whether text automatically formats to Uppercase , Lowercase , First capital, or Title case .

Text box enabled Lets the user enter text into a field. If there is default text, user text replaces it.

Set specific properties for a Check box .

Default Value Choose between Not checked or checked as default.

Checkbox size Set a size Exactly or Auto to change size as needed.

Check box enabled Lets the user check or clear the text box.

Set specific properties for a Combo box

Drop-down item Type in strings for the list box items. Press + or Enter to add an item to the list.

Items in drop-down list Shows your current list. Select an item and use the up or down arrows to change the order, Press - to remove a selected item.

Drop-down enabled Lets the user open the combo box and make selections.

Protect the form

Go to Developer > Protect Form .

Protect form button on the Developer tab

Note:  To unprotect the form and continue editing, select Protect Form again.

Save and close the form.

Test the form (optional)

If you want, you can test the form before you distribute it.

Protect the form.

Reopen the form, fill it out as the user would, and then save a copy.

Creating fillable forms isn’t available in Word for the web.

You can create the form with the desktop version of Word with the instructions in Create a fillable form .

When you save the document and reopen it in Word for the web, you’ll see the changes you made.

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Queens building materials firm relocating on Long Island 

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218 Front St. Hempstead / Courtesy of Premier Commercial Real Estate

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Featured Reviews for Design-Build Contractors & Firms in Elektrostal'

  • Reach out to the pro(s) you want, then share your vision to get the ball rolling.
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What is a design-build firm?

Questions to ask a prospective elektrostal' design-builder:, find design-build contractors near me on houzz, business services, connect with us.

High-rise under construction in West Palm Beach catches fire

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A high-rise building under construction caught fire Wednesday in downtown West Palm Beach, police said.

A battalion chief with the West Palm Beach Fire Department said the fire, which was reported at about 11:40 a.m., occurred on the 15th floor of the One Flagler building.

A video sent to WFLX showed heavy black smoke coming from the building.

#TrafficAlert Lakeview Ave westbound at Royal Park Bridge CLOSED due to a fire in a high rise under construction that @WPBfire is working. Expect delays in the area. Northbound and southbound Flagler Drive is OPEN with heavy traffic. #BreakingNews @TotalTrafficWPB pic.twitter.com/gOL8vPJRi7 — West Palm Beach Police Department (@WestPalmPD) February 14, 2024

About 30 firefighters with the West Palm Beach Fire Department responded the the scene.

The fire has closed Lakeview Avenue westbound near the Royal Park Bridge. Northbound and southbound Flagler Drive is open.

However, there is heavy traffic in the area, and drivers should expect delays in the area.

All of the construction workers inside the building were safely evacuated. No injuries have been reported.

Officials with the West Palm Beach Fire Department said the construction crews used a fire extinguisher to knock down the blaze. The battalion chief said the fire was extinguished by 12:30 p.m.

The cause of the fire is under investigation.

The 25-story office building is owned by Related Companies and is scheduled to open this summer.

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IMAGES

  1. A Sample Construction Company Business Plan Template

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  2. Building Construction Business Plan Template

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  3. Free Construction Business Plan Template

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  28. High-rise under construction in West Palm Beach catches fire

    A high-rise building under construction caught fire Wednesday in downtown West Palm Beach, police said. A battalion chief with the West Palm Beach Fire Department said the fire, which was reported at about 11:40 a.m., occurred on the 15th floor of the One Flagler building. A video sent to WFLX showed heavy black smoke coming from the building.

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