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Bureau of Labor Statistics reports that the construction industry is one of the largest industries in the U. Among these businesses, 68 percent of companies within the construction industry employ less than five individuals.
Though small, the many businesses within the industry provide aggressive and continual competition. Create a business description for your construction business.
Provide the address and contact information for your headquarters. Identify enough job variation within your specialty to maintain consistent work throughout the year. Create a list of construction services that your business will provide and identify the price for each service.
Ascertain your target market and determine what areas your business will service. Target residential and commercial property owners for your plumbing business, for example, and provide services, such as main drain cleaning, pipe excavation, and repair and general plumbing services to provide consistent work throughout the year.
Define the strategies that your construction business will use to capture and maintain your customers. Include your selected advertisement methods and costs, along with retention strategies, such as quality, exclusive designs and competitive prices.
Explain the steps and strategies that your business will use to compete with these businesses and overcome the strengths of those businesses. Focus on products and services, as opposed to prices as price wars can be costly and risky.
Explain the bidding process that your construction business will follow. Identify the suppliers and vendors that your business will use for inventory. List the costs and delivery methods for each item, as well as the names and contact information for those businesses.
Show the steps and costs that your business will incur to obtain permits and licenses that are needed for each contract. Provide information on the bonding company that your construction business will use.
Include the type of bonds your company will use, such as bid bonds, performance bonds and payment bonds. Identify the terms of the bond insurance and the base fee that will apply to those policies. Explain how you will plan your production schedule for each contract. Provide details on the procedures your construction company will use to ensure quality.
Identify if your business will use employees, contractors or a combination of both. Include the number of workers your business will need, along with the hourly pay of the worker.
Ascertain if your employees will be union or nonunion laborers. Make a list of the tools and equipment that your construction will require to complete its contracts. Identify whether the equipment is rented, leased or purchased and include the costs for each item.
Provide information on any applicable warranties or insurance policies that will cover potential damages or maintenance requirements. Identify the accounting method that your construction company will use cash or accrual.
Consult with an accountant to determine the best method for your particular construction business. Complete a personal financial statement for each owner of your business. Complete a balance sheet, income statement and cash flow statement for the construction business.
Make realistic projections and assumptions for your business and explain how your business will maintain its financial records. Create an executive summary for your construction business. Introduce your company and its owners.
Create an appendix for the plan that consists of supporting documents, such as tax returns, supplier agreements, insurance policies and license approvals.Specialized Home, Auto, and Commercial Insurance in Orlando, FL.
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