Building Your Empire: How to Write a Construction Business Plan

Starting a construction business will require a lot of planning.

If you’ve ever been interested in starting a business, you’ve probably struggled with where to start. Most people don’t understand how to write a business plan nor do they know that one will benefit them. However, a business plan is crucial if you’d like to start something like a construction business.

When you understand how to write a business plan, you can start a construction company without hitting too many roadblocks. While you’ll have your ups and downs throughout the process, the business plan will act as a guide.

Read on to learn more about how to create a construction business plan with this template.

Funding

When you start putting together a construction company business plan, the first thing you’ll need to think about is how you’ll fund it. This can be a difficult process if you don’t already have the money, but there are many loan options for those that would like to start a business.

Keep in mind that the best way to fund a business is to use your own money. However, most people aren’t prepared for this unless they have a massive savings account or they can sell something to acquire the money.

If you don’t have cash, you can go with some of these options:

Business Loan

One of the most common loans used by those that want to start a business is a business loan. These are loans these are designed exclusively for people that want to start small businesses, so they come with high borrowing limits and long repayment periods.

With a business loan, you may borrow anywhere between $50,000 to $1 million depending on your credit and what your business needs. Those that have poor credit won’t be able to borrow as much, so start working on building it before applying if you do have a low credit score.

Personal Loan

Aside from a business loan, you can apply for a personal loan. These loans don’t provide nearly as much potential as a business loan because they’re designed for regular people. However, they can give you a boost that will help you start getting things together for your business.

Money from a personal loan can be used for anything. You can purchase equipment, pay for a property, and get licensed with a personal loan. Depending on the lender, you may be able to borrow up to $100k, but this is rare because it requires outstanding credit.

Credit Cards

Similar to a personal loan, credit cards can be used to give your business a boost. The main difference between a credit card and a standard loan is that it’s much easier to obtain. You can apply for a credit card online and get it within a week or two whereas a loan will require you to visit the lender in-person.

Location

Starting a construction company will require you to think of a good location to operate out of. You’ll need a place to store equipment that isn’t too far from residential areas so that you don’t have to waste time on transportation.

Choosing a location is as simple as finding a building for sale or rent that’s large enough to store everything. You’ll want something that stands by itself so you can make noise without worrying about neighboring businesses. 

Look around for empty buildings and start taking notes so that you can compare them later. You’ll want to know how large they are, how much they cost, and where they’re at.

Equipment

After you have an idea of how you’ll fund the business and where you’ll set up shop, you need to start purchasing equipment. Getting equipment will let you start doing odd jobs until you expand, so visit a local hardware store to get basic tools like drills, screwdrivers, saws, etc. 

If you’re looking to work on large projects, you can rent out things like forklifts to help you move things on-site. A forklift rental cost won’t be much to someone that’s just starting, so it may be best to do this before purchasing one.

Website and Advertising

To truly get your construction business off the ground, you’ll need to make a website and start advertising the company. Making a website will drastically help your construction business because customers can learn more about you without having to visit you. 

People are regularly searching the web for things they need. Whenever someone needs to work with a construction company, they’ll see your business pop up as they search for construction services.

Using the likes of social media, you can advertise to people in your area to start bringing in more customers. Social media platforms offer tools to narrow down your target audience, giving you more control over who sees your ads.

You’ll want your website to look as professional as possible so that people don’t lose interest when visiting it. After making the site, you can use it in your advertisements so that customers will be redirected to it. 

Use This Construction Business Plan Template Today

After reading this article, you now understand how to write a construction business plan. These are the main things to consider when starting a construction business, so start going over them as soon as you decide you’d like to start the company.

We recommend you start thinking about funding options so that you avoid getting too far ahead without producing results. After you find out how to fund the business, everything else will fall into place. 

Check out our articles to learn more about how to start a business!