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General Contractor Business Plan

Your constructional expertise, contractual knowledge, and project management skills are enough for you to start a general contracting business. However, you need something more to succeed—a well-thought-out business plan.

Having a business plan can help you secure funding, set priorities, make informed decisions, and steer your business in the right direction.

Need help writing a business plan for your general contractor business? You’re at the right place. Our general contractor business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
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How to Write a General Contractor Business Plan?

Writing a general contractor business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Introduce Your Business:

Market opportunity:, product and services:.

• For instance, construction services, project management, construction consulting, and maintenance & repair can be included as services, and specialized expertise and competitive pricing can be part of your USPs.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Residential construction
• Commercial Construction
• Civil construction
• Industrial construction
• Green building and sustainable construction

Company structure:

Mission statement:, business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the construction industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target Market:

• For instance, homeowners, property owners, real estate developers, and insurance companies can be a target audience for a general contracting company focusing on residential projects.

Market Size and Growth Potential:

• You may include statistics and information like the number of ongoing and upcoming residential or commercial projects, the value of construction spending, etc.

Competitive Analysis:

Market trends:.

• For instance, there is a growing demand for eco-friendly and sustainable construction practices; explain how you plan on dealing with this potential opportunity in the market.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your construct contractor business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the services your contracting business will offer. This list may include services like,

• Construction project management
• Renovation services
• Budgeting or cost estimation services
• Project coordination
• Maintenance and repair

Service Process:

Case studies:, additional services:.

In short, this section of your general contractor plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For instance, timely project delivery, quality craftsmanship, competitive pricing, and sustainable practices can be some of the great USPs for a general contracting company.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your construction contractor business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your general contractor business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

• Include their qualifications, relevant experience, the training required, and the duties they will perform.

Operational Policies and Procedures:

Equipment & technologies:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Contingency Plans:

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your general contractor business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include key executives, general contractors, and other department managers (e.g. project manager, safety manager.) involved in the business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your general contracting services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the construction industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your general contractor business plan should only include relevant and important information supporting your plan’s main content.

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

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This general contractor business plan sample will provide an idea for writing a successful general contractor plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our general contractor business plan pdf.

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Frequently asked questions, why do you need a general contractor business plan.

A business plan is an essential tool for anyone looking to start or run a successful general contractor business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your general contractor company.

How to get funding for your general contractor business?

There are several ways to get funding for your general contractor business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your general contractor business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your general contractor business plan and outline your vision as you have in your mind.

What is the easiest way to write your general contractor business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any general contractor business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How To Write a Winning General Contractor Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for a general contractor who wants to refine their strategy.

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

This article provides an overview of the key elements that every general contractor should include in their business plan.

Download the Ultimate Business Plan Template

What is a general contractor business plan.

A general contractor business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, 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 General Contractor Business Plan?

A general contractor 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 General Contractor Business Plan

The following are the key components of a successful general contractor business plan:

Executive Summary

The executive summary of a general contractor 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 general contractor 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 general contractor 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 general contractor firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a general contractor 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 general contractor 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 general contractor’s customers may include:

Your target customer segments may change as your business grows. As such, you should revisit this section of your business plan periodically and update it as needed.

You can include information about how your customers decide 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 general contractor 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 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 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, or launch a direct mail campaign. Or you may promote your general contractor business via word-of-mouth or referrals . 

Operations Plan

This part of your general contractor 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?
• 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 general contractor business include reaching $X in sales. Other examples include expanding to a new location, adding a new service, or increasing the number of employees.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific general contractor 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 General Contractor 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 General Contractor 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 general contractor business.

Sample Cash Flow Statement for a Startup General Contractor Company

You will also want to include 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 general contractor 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 general contractor company. The tips we’ve provided in this article should help you write a winning business plan for your general contractor business.  

Finish Your General Contractor Business Plan in 1 Day!

Wish there was a faster, easier way to finish your general contractor business plan?

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

General Contractor Business Plan Template

• Great for beginners
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Starting or expanding a general contracting business is no small feat. To secure funding, attract investors, and ensure operational success, you need a solid plan in place. ClickUp's General Contractor Business Plan Template is here to streamline the process and set you up for success!

With this template, you can:

• Clearly outline your company's goals, strategies, and financial projections
• Attract potential investors, partners, and lenders with a comprehensive business plan
• Guide your operations efficiently to achieve your business objectives

Ready to take your general contracting business to the next level? Get started with ClickUp's Business Plan Template today!

General Contractor Business Plan Template Benefits

Creating a solid foundation for your general contractor business is crucial for long-term success. The General Contractor Business Plan Template can help you achieve this by:

• Providing a clear roadmap for your business goals and strategies
• Assisting in securing funding and attracting potential investors or partners
• Guiding your operations efficiently for sustainable growth
• Outlining financial projections to ensure financial stability and success

Main Elements of General Contractor Business Plan Template

To help general contractors succeed in their business endeavors, ClickUp’s General Contractor Business Plan Template includes:

• Custom Statuses: Track progress with statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring clarity on the current stage of each business plan section
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to add detailed information and categorize different aspects of the business plan for easy reference and organization
• Custom Views: Access 5 different views including Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize and manage the business plan effectively, ensuring all necessary information is readily available
• Project Management: Enhance project planning with features like Dependencies, Milestones, and Work In Progress Limits to streamline workflow and achieve business goals efficiently.

How To Use General Contractor Business Plan Template

Crafting a solid business plan for your general contracting company is crucial for success. follow these four steps using the general contractor business plan template in clickup:, 1. define your business vision.

Start by outlining your company's mission, vision, and values. Clearly define what sets your general contracting business apart from competitors and establish your long-term goals. This will serve as the foundation for your business plan.

Utilize the Goals feature in ClickUp to set specific, measurable objectives for your contracting business.

2. Analyze the market and competition

Conduct thorough research on the current market trends, target audience, and competitive landscape. Identify opportunities for growth and potential challenges within the general contracting industry. Understanding your market will help you position your business strategically.

Use the Gantt chart view in ClickUp to create a timeline for market analysis tasks and track your progress.

3. Develop a detailed financial plan

Create a comprehensive financial plan that includes budget projections, revenue forecasts, expected expenses, and cash flow analysis. This will help you understand the financial health of your general contracting business and make informed decisions.

Utilize custom fields in ClickUp to input financial data and calculate key metrics for your business plan.

4. Outline your marketing and operational strategies

Define your marketing strategies to reach your target audience effectively. Additionally, detail your operational plan, including project management processes, team structure, and resource allocation. This will ensure that your general contracting business runs smoothly and efficiently.

Use Automations in ClickUp to streamline your marketing efforts and automate repetitive tasks for operational efficiency.

Get Started with ClickUp’s General Contractor Business Plan Template

General contractors can leverage the General Contractor Business Plan Template in ClickUp to streamline the process of outlining their company's goals and strategies for success.

To get started, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Ensure you specify the Space or location in your Workspace where you want this template applied.

Next, invite relevant team members or partners to your Workspace to begin collaborating.

Now, maximize the potential of this template to create a comprehensive business plan:

• Utilize the Topics View to categorize different sections of your business plan
• Track progress with the Status View to monitor tasks categorized as Complete, In Progress, Needs Revision, or To Do
• Visualize timelines and deadlines with the Timeline View to ensure timely completion of tasks
• Dive into the details with the Business Plan View to see the holistic view of your plan
• Refer to the Getting Started Guide View for a step-by-step walkthrough on how to use the template effectively
• Customize your plan by adding custom fields like Reference, Approved, and Section to tailor it to your specific needs
• Update statuses as tasks progress to keep all stakeholders informed
• Monitor and analyze tasks to ensure your business plan is on track for success.

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BUSINESS STRATEGIES

How to create a contractor business plan

• Jeremy Greenbaum
• Oct 30, 2023
• 12 min read

When launching a contracting business, it's essential to craft a detailed and precise business blueprint tailored to your industry. A contractor business plan is a meticulously crafted document that delineates your company's objectives, tactics and financial forecasts within the contracting sector. This blueprint serves as your guiding compass when starting a business , charting the course to success and offering solutions to potential hurdles. It spells out the specific strategies needed to efficiently operate a contracting enterprise.

Keep reading for tips on how to get started with your own business plan when starting a contractor business .

Looking to open up the doors to your business online by making a website ? Try Wix’s website builder today.

Creating a business plan for your contractor business is vital in order to establish a clear direction and ensure the success of your venture. Here are the six primary sections of a business plan to get you started:

Executive summary

Company and domain names, market analysis and research, operations plan, marketing and advertising plan, financial plan, 01. executive summary.

The executive summary is a concise overview of your entire contractor business plan. It should provide a snapshot of your business's mission, goals, products or services, target market, competitive advantage, financial projections and funding requirements. A clear executive summary succinctly communicates your business's essence and potential, serving as a compelling introduction to captivate the reader's interest.

Example of an executive summary: "GreenBuild Contractors is a dynamic and innovative construction company specializing in sustainable residential and commercial projects. With a commitment to quality craftsmanship and environmental stewardship, we aim to revolutionize the construction industry. Our team of experienced professionals combines expertise in green building practices with a passion for creating spaces that resonate with both clients and the environment. By leveraging our unique expertise, GreenBuild Contractors is poised to tap into the growing demand for eco-friendly construction solutions. We are seeking funding to scale our operations, enhance market presence and position ourselves as a leader in sustainable construction."

02. Company and domain names

Choosing the right business name is pivotal for building brand awareness and trust in your contractor business. It should resonate with your services, reflect professionalism and be memorable. To find inspiration, consider using business name generators that offer creative suggestions tailored to your industry.

Be inspired:

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Selecting a domain name is equally crucial in today's digital age. It should be aligned with your company name, easy to remember and relevant to your services. Before finalizing your choice, ensure the domain name is also available and not already in use.

Once you’ve decided on your company name and legal structure, make sure to register your business with your state.

03. Market analysis and research

Incorporating a market analysis and research section in your contractor business plan helps you understand the competitive landscape and devise an effective business strategy. Conduct market research to identify your target audience's needs, preferences and pain points. Analyze your competitors' strengths and weaknesses to uncover opportunities for differentiation. This insight will guide your marketing efforts and positioning strategy.

Find your niche:

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04. Operations plan

An operations plan within your contractor business plan outlines the practical aspects of your business, including its location, premises, equipment and staffing needs. Describe your business's physical setup, such as office or construction site locations. Detail the types of equipment required for your services and address staffing requirements, roles and responsibilities. A comprehensive operations plan ensures a smooth workflow and efficient resource allocation.

05. Marketing and advertising plan

Your business plan should lay out a detailed marketing and advertising strategy to promote your contractor business. Identify the most relevant marketing channels for your industry, such as a business website , social media, local advertising and trade shows. Highlight specific campaigns—such as showcasing completed projects, offering promotions or educational content about construction trends.

Don’t forget to think about your branding. No matter where you choose to promote your business, you’ll want to make sure that your branding is consistent. Start by using a logo maker to brainstorm construction logo ideas . Shape your visual identity around it, plus articulate your brand’s values, mission and vision (among other essential aspects).

06. Financial plan

The financial plan is a cornerstone of your contractor business plan, detailing how your business will be funded initially and outlining a timeline for achieving profitability. It includes projected revenue, expenses and cash flow statements. Specify the initial investment required for equipment, staffing and other startup costs. Outline your funding sources and clearly define your business's financial trajectory, demonstrating its sustainability and growth potential. Lay out how you plan to make money as a contractor.

Contractor business plan example: UrbanRenovate Builders

Below is a business plan example of a hypothetical contractor business, UrbanRenovate Builders. Feel free to use this as a guide for when you’re creating your own contractor business plan.

UrbanRenovate Builders is a forward-thinking contractor business poised to redefine urban spaces through innovative renovation solutions. With a focus on delivering exceptional craftsmanship and modern design, we aim to become a trusted partner for clients seeking transformative renovation projects. Our team of skilled professionals combines expertise in architectural design, construction and project management to create living spaces that reflect our clients' unique lifestyles. By leveraging our expertise and commitment to quality, UrbanRenovate Builders aims to establish a prominent presence in the competitive renovation market.

Company name : UrbanRenovate Builders

Domain name : www.urbanrenovatebuilders.com

The name "UrbanRenovate Builders" captures our emphasis on urban revitalization and renovation expertise. The corresponding domain name aligns with our brand identity and offers easy access to our online presence, enabling potential clients to learn about our services and portfolio.

Market analysis : UrbanRenovate Builders operates in the bustling urban renovation sector, targeting homeowners and commercial property owners seeking modernization and transformation. Our research indicates a growing demand for sustainable and aesthetically appealing renovation solutions, reflecting a shift towards environmentally-conscious living.

Competitive landscape : We have identified key competitors offering similar renovation services, emphasizing the importance of differentiation through innovation, superior customer service and sustainability.

Location : UrbanRenovate Builders will be headquartered in a central urban location, facilitating easy access to our target market.

Premises : Our office space will accommodate project management, design consultations and administrative tasks.

Equipment : We will invest in state-of-the-art construction and design tools to ensure precise execution of projects.

Staffing : Our team will consist of experienced architects, designers, project managers and skilled construction professionals.

Marketing channels : Our marketing strategy involves a mix of digital platforms (website, social media), local advertising (flyers, community events) and participation in home renovation expos.

Campaigns : We will launch a "Before & After" campaign showcasing successful transformations. We’ll additionally launch a "Sustainability Spotlight" campaign highlighting eco-friendly practices, and "Client Stories" sharing positive experiences.

Startup costs : Initial investment of $150,000 will cover equipment, office setup, marketing efforts and staff salaries.

Funding : Funding will come from personal savings ($50,000) and a bank loan ($100,000).

Financial projections (first year) : revenue: $300,000, expenses: $220,000, profit: $80,000

Financial projections (second year) : revenue: $500,000, expenses: $350,000, profit: $150,000

Profitability timeline : UrbanRenovate Builders aims to achieve profitability within the first year of operation, supported by strategic marketing efforts and excellent project execution.

Benefits of creating a contractor business plan

No matter what type of business you’re starting, a business plan offers several key advantages that can significantly contribute to your company’s success.

Funding : A well-written business plan can be instrumental in attracting investors and raising money for your business . Investors want to see a clear roadmap that outlines your business's potential for growth and profitability. A robust plan demonstrates your commitment, knowledge of the industry and strategies to mitigate risks, making it more likely for investors to feel confident in providing financial support.

Resources : A detailed business plan helps you understand the precise resources, supplies and staff required to launch your contractor business. By conducting a thorough analysis of the equipment, tools, materials and personnel needed, the plan ensures that all essential aspects are considered and allocated appropriately. This proactive approach minimizes the risk of resource shortages or mismanagement, allowing for a smoother business launch.

Operational efficiency : A business plan provides a structured outline of your business's operations. It outlines the step-by-step processes involved in executing projects, managing tasks and meeting client expectations. This clarity improves operational efficiency, reduces confusion among staff and enhances overall project management. Additionally, having a well-defined plan in place helps business owners respond effectively to unexpected challenges, ensuring that projects stay on track.

Risk mitigation : Starting a contractor business involves inherent risks, from market fluctuations to unforeseen project delays. A business plan allows you to identify potential risks and develop corresponding mitigation strategies. By addressing challenges proactively, the business is better equipped to navigate uncertainties and disruptions, maintaining its resilience and reputation.

Competitive edge : A well-researched business plan includes a thorough analysis of the market landscape and competitors. This insight will enable you to identify gaps in the market, recognize emerging trends and position your contractor business strategically to stand out. By tailoring your services to meet specific client needs, your business can gain a competitive edge and establish a unique value proposition.

Financial projections : A crucial aspect of any business plan is its financial projections and growth strategy. By outlining revenue forecasts, expense estimates and profit margins, the plan provides a clear picture of the contractor business's financial health. You can set realistic financial goals and create actionable plans to achieve them, guiding your growth trajectory in a sustainable manner.

How profitable can a contractor business be?

Contractor businesses can be very profitable. According to a report by IBISWorld, the average profit margin for contractor businesses is 10%. This means that for every $100 in revenue, contractor businesses generate $10 in profit.

Of course, not all contractor businesses are equally profitable. Some contractors are able to charge higher fees and generate more profit than others. However, even contractors with a lower profit margin can still be successful if they have a steady stream of clients.

Here are some factors that can contribute to the profitability of a contractor business:

Specialization: Contractors who specialize in a particular area of construction or remodeling can charge higher fees and attract more clients.

Experience: Contractors with more experience tend to be more efficient and can complete projects more quickly. This can lead to higher profits.

Reputation: Contractors with a good reputation are more likely to attract repeat clients and referrals. This can lead to increased business and profits.

Marketing: Contractors who effectively market their business are more likely to generate leads and close more deals. This can lead to increased revenue and profits.

If you are considering starting a contractor business, it's important to do your research and develop a plan to make your business as profitable as possible.

Here are some additional tips for increasing the profitability of your contractor business:

Invest in quality tools and equipment. This will help you complete projects more efficiently and reduce costs.

Track your expenses carefully. This will help you identify areas where you can cut costs and improve your profitability.

Negotiate favorable terms with your suppliers. This can save you money on materials and other costs.

Outsource non-essential tasks. This can free up your time so that you can focus on the most important aspects of your business.

Invest in training and development for your team. This will help your team to be more productive and efficient.

By following these tips, you can increase the profitability of your contractor business and build a successful enterprise.

How to market your contractor business

There are a number of ways to market your contractor business. Here are a few tips:

Create a strong online presence. This includes having a professional website and being active on social media. Your website should be well-designed and easy to navigate, and it should include information about your services, experience and contact information. Your social media pages should be updated regularly with interesting content and photos of your work.

Use local search engine optimization (SEO). This means optimizing your website and online content so that it ranks higher in search engine results pages (SERPs) for relevant keywords. When people search for contractors in your area, you want your website to be one of the first results they see.

Run paid advertising campaigns. You can run paid ads on search engines and social media platforms to reach a wider audience. When creating your ads, be sure to target your ideal customers and use relevant keywords.

Network with other businesses in your area. Attend industry events and join trade associations. This is a great way to meet potential clients and partners.

Offer discounts and promotions. This is a great way to attract new customers and encourage repeat business. You can offer discounts for first-time customers, bulk orders or referrals.

Get involved in your community. Sponsor local events or donate to charities. This is a great way to build relationships and generate goodwill.

Focus on your unique selling points. What makes your business different from other contractors in your area? Highlight your unique selling points in your marketing materials and online content.

Use high-quality photos and videos. Show potential customers the quality of your work by using high-quality photos and videos in your marketing materials.

Make it easy for customers to contact you. Include your contact information prominently on your website and social media pages. Make sure to respond to inquiries promptly and professionally.

Provide excellent customer service. This is essential for building a successful contractor business. Make sure to communicate regularly with your customers, keep them updated on the progress of their project and resolve any issues promptly.

Strategies to launch your contractor business plan

Here are some strategies to launch your contractor business plan:

Define your target market and services. Who are your ideal customers? What services will you offer? What are your unique selling points? Once you have a clear understanding of your target market and services, you can develop a business plan that is tailored to their needs.

Create a strong brand identity. Your brand is what will set you apart from other contractors in your area. Develop a logo, tagline and website that are professional and reflect your business values.

Market your business effectively. There are many different ways to market your contracting business. You can use online and offline marketing channels, such as search engine optimization (SEO), social media and networking events.

Get licensed and insured. In most states, contractors are required to be licensed and insured. This shows potential customers that you are a legitimate business and that you are qualified to perform the services you offer.

Build a team of reliable subcontractors. If you're unable to perform all of the services yourself, you will need to build a team of reliable subcontractors. Make sure to check their references and licenses before hiring them.

Provide excellent customer service. Customer service is key to success in the contracting business. Make sure to communicate regularly with your customers, keep them updated on the progress of their project and resolve any issues promptly.

Here are some additional tips for launching your contractor business:

Start small and scale up as you grow. Don't try to take on too much work at once. Start with small projects and gradually build up your business as you gain experience and a good reputation.

Offer competitive pricing. When setting your prices, be sure to research what other contractors in your area are charging. You want to offer competitive pricing without sacrificing quality.

Get involved in your community. Sponsor local events, donate to charities and get to know other businesses in your area. This will help you to build relationships and generate leads.

Network with other contractors. Join a trade association or attend networking events for contractors. This is a great way to learn from other professionals, get referrals and find new opportunities.

Launching a contractor business can be challenging, but it's also very rewarding. By following these tips, you can increase your chances of success.

Contractor business plan FAQ

How do you build a successful contracting business.

To build a successful contracting business, you need to focus on the following:

Provide excellent customer service. This means communicating regularly with your clients, keeping them updated on the progress of their project and resolving any issues promptly.

Deliver high-quality work. This is essential for building a good reputation and attracting repeat clients.

Be reliable and trustworthy. Show up on time and complete your projects on schedule.

Be professional and courteous. Dress appropriately and treat your clients with respect.

Market your business effectively. Let potential clients know about your services and how you can help them.

What type of construction is most profitable?

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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

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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The ultimate business plan for general contractors

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How to Draft a General Contractor Business Plan

If you’re starting out on your own as a general contractor, you likely have skills and knowledge in many specialized areas related to your trade. But crafting a general contractor business plan might still feel challenging. So, why do you need one—and where should you start?

In 2021, 5.4 million businesses launched in the U.S. A strong business plan can help you develop a strategy for business success, attract investors, create successful relationships with potential clients in your target market, and begin to make your dream a reality. Best of all, writing one can prove simpler than you think once you learn the purpose of a general contractor business plan—and how to break it down into simple, manageable steps. 

With an effective business plan at your side, your general contractor business could be one of many success stories. 

Advantages of having a business plan as a general contractor

Creating a general contractor business plan can help you clarify your strategy for your business, as well as help you explain your plan to others. 

More specifically, the benefits of having a general contractor business plan include:

• Internal planning – When crafting their business plan, many general contractors consult with other teammates and partners, such as their accountant. Creating a business plan together can provide a natural opportunity to brainstorm, clarify, and make sure everyone’s on the same page as you launch your company.
• Financial planning – A business plan can help keep you on track when it comes time to make important financial decisions and evaluate what makes the most sense for your business in both the long and short term.
• Persuading potential funders – New businesses often need funding in the form of loans or investors to help them get started. A business plan can help you win over potential funders and clearly explain your vision for your business.

What to include in a general contractor business plan

Your business plan may vary depending on your specific vision for your general contracting business. But as you begin shaping that plan, your business plan should focus on these key sections :

• Cover page – Including a cover page with your contact info can make it easier for potential funders to contact you if they like your business or marketing plan. 
• Executive summary – This section quickly and simply describes what your business will do (general contracting), what problem you’ll solve for customers in your community, and five reasons your business will succeed. You can also include how much funding you’re hoping to acquire and your high-level financial projects for your company.
• Company overview – In this section, describe your company location and your legal classification—individual, partnership, or corporation. You can also highlight any successes you’ve achieved or other aspects that will help people better understand—and believe in—your company.
• Analysis of your industry, customers, and competitive advantage – In these three sections, you can break down information about the market you’re competing in, the customers you hope to reach, and why you’ll have a competitive advantage over any other businesses offering similar services. For example, do you have more experience? More existing customer connections? A more cost-effective approach? A higher quality of service? This section lets you show off how well you know your business and how you can improve your customers’ lives.
• Management team – A strong management team with in-depth business planning experience can help guide a business through the first few years. In this section, you can show off your existing team, along with noting any other roles you’re hoping to fill soon. 
• Operations and financial plan – An operations plan focuses on the day-to-day work and goals of your contractor business, along with some important milestones you plan to accomplish in the next few years. The financial plan gives you an opportunity to dive into the numbers, showing your funding goals, your revenue goals, and your expected costs. You can also include an appendix with more detailed financial projections, such as balance sheets, cash flow statements, and income statements.
• Marketing strategy – This section can explain how you’ll present your company and services to customers, and any contractor marketing strategies you plan on using to reach new and existing customers.

If you’re finding a particular section challenging, it might be a sign for you to take a step back and do some more planning or research before trying to write that portion of your contractor plan. You can also consult an expert like small business accountant Amanecer Accounting in New Jersey, or a digital marketing consultant at Agency Partner Interactive in Texas.

Lastly, consider joining a local small business owners group. It’s often a useful and energizing opportunity to receive advice and forge connections with others in your city’s small business community. 

Strategies to launch your business plan from paper to prosperity

Once you’ve crafted a business plan, the next step is to act on it. And if you’re just starting out, one of the most important steps you can take is to make your business known in the community. 

Many years ago, people often found out about new businesses through ads in magazines, newspapers, and the radio, or through word of mouth in the community. Businesses often connected with a customer through the mail or through an in-person conversation. 

Today, many potential customers discover, connect, and talk about customers online. About 3.8 million Google searches happen every minute, and that’s not including all the searches that happen on other search engines. When a potential customer needs a contractor for a home repair or renovation, there’s a good chance they’ll type “General contractor + [City name]” into a search bar. When that happens, you want your business to be one they find. Creating a strategy for how you’ll build an online presence can help improve the odds of customers finding you online. 

Here are some key ways to help your general contractor business stand out from the crowd using your online presence.

Make your business searchable

Some of the factors that can help your web content appear higher in search engine results include: 

• High quality content, including reliable and accurate business information
• Keywords, meta data, complete links, and other internal details that improve search engine optimization (also known as SEO)
• Backlinks, aka other websites that share links to yours
• Easily navigable websites optimized for both abled and disabled users
• A fast loading speed
• Responsive web design, or a website that displays well on both cell phones and desktops

Create a well-rounded digital presence

A digital presence often starts with a website, but it can also include much more. To reach customers through a well-rounded digital presence, consider the following options: 

• Website – A website can help potential customers learn what services you offer, as well as learn about successful work you’ve done in the past and how to contact you. You can build your own website using a template model like Wix or Squarespace, or you can hire a local web design company like Oregon-based business Gray’s Web Design for a more personalized touch.
• Social media – Social media can provide another opportunity to connect with customers, but that doesn’t mean you have to produce content for every possible platform. Instead, try to focus on building a presence on platforms where your customers already hang out, and on platforms that make sense for the type of content you want to produce. For example, if you want to show off “Before and After” photos of completed jobs, you probably want to pick a social media platform where people like to share photos and talk about home and business renovations. 
• Paid advertising campaigns – You can also reach potential customers by running a paid digital advertising campaign. This might involve running digital banner ads on a specific website, social media platform, or simple text ads for specific search engine results. Depending on where you’re advertising, you can often target your ad to a specific geographic location so that you’re not wasting resources advertising to someone on the other side of the country. 
• Nextdoor business account – Nextdoor lets businesses connect specifically with potential customers in the geographic area your general contractor business serves. Through Nextdoor, you can create a free Business Page to connect with customers and establish an online presence. You can also gather recommendations from members to build your reputation as a trustworthy, competent business. Lastly, you can use Nextdoor Ads to promote deals and interact individually with potential customers.

Build your community presence with Nextdoor

Ultimately, you want to ensure that your general contractor business plan includes not just the vision for what your business may one day be—but also the steps you will take to get there. By outlining your funding needs, laying out your key steps, and spreading the word with marketing components, you can build vital connections and gain support within the community you plan to serve.

But you don’t have to do all of this without help. Used by nearly 1 in 3 households across the U.S., Nextdoor helps connect neighbors, organizations, and businesses to build a better community. 

Nextdoor offers key features to help local businesses connect with the customers in their neighborhoods. Creating a free Business Page can make it easier for your customers to find you and for you to build an online presence. Business Posts can help you share information about your services, as well as start conversations with potential customers. Nextdoor Ads can help you run promotions and provide additional exposure for your business. 

Whether you’re taking the first steps toward founding your business or looking for a way to take an established business to the next level, we offer a way for small businesses to connect with their customers. 

NPR. New businesses soared to record highs in 2021. Here's a taste of one of them. https://www.npr.org/2022/01/12/1072057249/new-business-applications-record-high-great-resignation-pandemic-entrepreneur#:~:text=That's%20the%20takeaway%20from%20new,in%202020%20of%204.4%20million . 

National Funding. Why a Construction Business Plan Is Essential and How to Build One. https://www.nationalfunding.com/blog/construction-business-plan/

Forbes. Business Plan Template: What To Include. https://www.forbes.com/sites/davelavinsky/2013/07/18/business-plan-template-what-to-include/?sh=9f26b417fc63  

Forbes. Building A Brand: Why A Strong Digital Presence Matters. https://www.forbes.com/sites/forbesagencycouncil/2020/07/02/building-a-brand-why-a-strong-digital-presence-matters/?sh=16b186db49f2  

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How To Write A Construction Business Plan

Create your small construction company business plan using our free construction business plan template. We guide you through the steps of taking your business idea from dream to reality.

Construction Business Plan (Free PDF)

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Business Plan Template: What You Get

• Create a construction business plan step by step
• Receive support for the creation of all chapters in the business plan
• Outline the objectives of your business, goals set for future growth and profitability as well as strategic planning

This Business Plan Template is Suitable For:

Applicable for founders, freelancers & small business owners

Your Benefits:

• Free of cost: Download the business plan template for free!
• Time-saving: Save time and open your business faster!
• Correct data: Avoid unnecessary mistakes!

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Find The Best & Worst States to Start Your Business

A state with ideal conditions for startups and young companies offers – for example – access to cash, a skilled workforce and affordable office space. In a study, WalletHub compared the 50 states on 27 key indicators of startup success. Find the ideal location for your startup now.

Microloan Program For Small Businesses: Facts Finder

With a microloan, founders successfully start their own business. Create a business plan with Zandura and prepare perfectly for your bank interview. This is how you get a microcredit from the SBA microloan program.

8 Factors For Choosing The Right Business Loan

A quick loan can be very tempting for small businesses. However, there are a number of things you should look for before making a long-term commitment to a bank and its terms. These eight points are essential when choosing suitable loans and funding:

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Construction Business Plan Template [Updated 2024]

Construction Business Plan

If you want to start a new construction company or expand your established business, you need a business plan.

The following construction business plan template gives you the key elements to include in an effective business plan. It can be used to create a commercial construction business plan, a general contractor business plan or business plans for residential construction, building construction or industrial construction.

You can download the Construction business plan template (including a full, customizable financial model) to your computer here.

Sample Business Plan For a Residential Construction Company

Below are links to each of the key sections of a construction company business plan example:

• Executive Summary – The executive summary provides an overview of your business opportunity and summarizes the business plan.
• Company Overview – The company analysis includes information about your business idea, the full service design and construction services you offer, and the business structure.
• Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the construction industry.
• Customer Analysis – The customer analysis provides an overview of your target market and the demographics and purchasing habits of these target customers.
• Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
• Marketing Plan – The marketing plan includes your overall marketing strategy, pricing strategy and what marketing techniques you will try to attract potential customers (i.e., email marketing, paid advertising, etc.).
• Operations Plan – The Operations Plan includes information on your construction company’s day to day operations, expected operating costs and the bidding process for new construction jobs.
• Management Team – The management team section includes a profile of the business owner and management team including the officer manager and project managers, their experience and responsibilities.
• Financial Plan – The financial plan includes financial projections, including cash flow statements, income statements, and balance sheets for the next 5 years.

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Twin Brothers Construction

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Twin Brothers Construction (TBC) plans to become a leading provider of construction and renovation services in the local area. The company’s overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress.

TBC is a company, with principal offices located in the local area. The company’s management is highly experienced and qualified: the brothers who will lead the management team have each accumulated over twenty five years of experience in the construction industry.

Products/Services Through their years of experience, TBC’s owners have developed sophisticated bidding, scheduling and materials solutions for some of the most complex construction projects being done today. The company will use versatile and completely adaptable methods for a variety of building configurations.

Owners, developers, construction managers, general contractors, and sub-contractors are expected to realize substantial savings in labor and material costs by using the company’s construction methods and systems. Applications include commercial and residential structures.

The Market The housing industry has been growing at a fast pace for several years. An all-time record was set in 1998, when 886,000 new-site single family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 1997. Although there was a slight drop in the number from 2003, this makes for an excellent opportunity for future expansion of the industry.

Twin Brothers Construction plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The marketing strategy will focus on securing city, county, and state and federal government contracts.

TBC plans to use a direct sales force, relationship selling, and sub-contractors to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

Financial Considerations We expect to pass the break-even point in the second half of the first year. Despite initial large outlays in cash to promote sales, the company’s cash account is expected to remain healthy. The company expects approximately $772,000 in sales revenue and reasonable net profits by Year 3.

1.1 Mission

Our mission is to be the best partner for our customers, suppliers and employees. To realize our vision, we will strive for profitable growth, operational excellence, customer satisfaction and strong brand positioning.

1.2 Objectives

• To have up to three construction projects established within the first year.
• To have two building renovation projects in progress by the end of the first year.
• To locate and purchase our first rental building by the end of the first year.
• To achieve at least 7% profit by the second year.

1.3 Keys to Success

We believe our keys to success will be:

• Using the most updated materials and equipment to assure quality construction projects for ourselves and our customers.
• Educating the customers and providing valuable advice during the construction planning stages.
• Helping to confirm customer’s research about targeting markets and specific sectors.
• Overseeing the logistics associated with a project, which can include arranging local transportation, booking meetings etc.
• Assigning the actual work to an experienced and qualified third-party contractors and sub-contractors.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The brothers will invest a total of $90,000 combined ($55,000 and $35,000) in the start-up of the company. Initial cash requirements will total $50,000. Start-up assets total $55,000.

2.1 Start-up Summary

The following table describes our start-up requirements. One of our biggest start-up expenses involves the creation of a website. Ongoing maintenance expenses for the website are included in our Profit and Loss expenses section.

2.2 Company Ownership

The company ownership will be shared by the Chairman and Chief Executive Officer in the following percentage amounts:

Chairman = 60%

Chief Executive Officer = 40%

Both owners are veterans in the building industry, each with over 25 years experience.

Products and Services

TBC will sell its services to clients in the area of commercial construction and renovation. The company’s staff will design specialized construction drawings that outline the schedule, work sequence and the materials needed for building and renovation construction projects. Owners, developers and general contractors will realize substantial savings in labor and material costs by using TBC’s customized performance methods. TBC’s methods will offer complete adaptability at cost-effective prices. The drawings that the company will furnish to the contractor will specify the order of assembly and erection, including the location of the strongbacks and joists, the location and actual loading of the ties, location of accessories and advise clients of the maximum allowable rate of concrete placement.

A longer-term service will be commercial building rental management. This will include the purchase of commercial building sites or existing buildings that need renovation, coordinating the construction/renovation, then managing the rental of the property. The company will also be looking for existing property owners whose properties need renovation to update and increase its income potential, with TBC eventually taking over the management of these properties on behalf of the owner. 

To enter the market with minimum overhead costs, TBC plans to utilize in the first year of operation mainly sub-contractors and independent experts for its building and renovation projects.

Accident prevention will be the cornerstone of TBC’s safety commitment. The company will strive to eliminate foreseeable hazards which could result in personal injury or illness; at TBC, health and safety will not be compromised. 

Market Analysis Summary how to do a market analysis for your business plan.">

There were about 792,000 construction companies in the United States in 2002: 237,000 were building construction contractors; 60,000 were heavy and civil engineering construction or highway contractors; and 496,000 were specialty trade contractors. Most of these establishments tend to be small, the majority employing fewer than 10 workers. About 4 out of 5 workers are employed by small contractors.

Construction offers more opportunities than most other industries for individuals who want to own and run their own business. The 1.6 million self-employed and unpaid family workers in 2002 performed work directly for property owners or acted as contractors on small jobs, such as additions, remodeling, and maintenance projects. The rate of self-employment varies greatly by individual occupation in the construction trades.

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One longer-term field of operation for the company will be the selling of building material and components to contractors. By slowly establishing itself as a first-rate material provider, the company expects to broaden and strengthen its stance in the local building industry. Initially it will focus on purchasing supplies for its own construction and renovation projects, then use those completed projects as marketing examples to showcase the quality of materials used and the customized approach used to design and construct them.

The company plans to develop marketing alliances with industry leaders and pursue new sales of its services to commercial builders. The market strategy is to capitalize on the company’s future alliances by securing city, county, and state government contracts.

TBC also plans to use a direct sales force, relationship selling, and sub-contractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

4.1 Market Segmentation

The overall Construction Industry was segmented in 2002 as follows (employment in thousands):

Source: U.S. Department of Labor, Bureau of Labor Statistics (March 9, 2004)

For the purpose of this paper we shall segment our initial targeted market as follows:

• Office Building Construction
• Building Facilities Renovation
• General Construction

4.2 Service Business Analysis

The construction industry is divided into three major segments. Construction of buildings contractors, or general contractors , who build residential, industrial, commercial, and other buildings. Heavy and civil engineering construction contractors who build sewers, roads, highways, bridges, tunnels, and other projects. Specialty trade contractors who are engaged in specialized activities such as carpentry, painting, plumbing, and electrical work.

Construction usually is done or coordinated by general contractors, who specialize in one type of construction, such as residential or commercial building. They take full responsibility for the complete job, except for specified portions of the work that may be omitted from the general contract. Although general contractors may do a portion of the work with their own crews, they often sub-contract most of the work to heavy construction or specialty trade contractors.

Specialty trade contractors usually do the work of only one trade, such as painting, carpentry, or electrical work, or of two or more closely-related trades, such as plumbing and heating. Beyond fitting their work to that of the other trades, specialty trade contractors have no responsibility for the structure as a whole. They obtain orders for their work from general contractors, architects, or property owners. Repair work is almost always done on direct order from owners, occupants, architects, or rental agents.

Twin Brothers Construction will concentrate its activity in the following areas:

• Commercial Building Construction
• Commercial Building Renovation
• Buildings Management and Rental
• Building Materials Supplies

Strategy and Implementation Summary

TBC plans to use a direct sales force, relationship selling, and sub-contractors to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels. The owners of TBC want to emphasize to their potential customers that they are more than general contractors, they are complete construction coordinators.

TBC plans to advertise in magazines, newspapers, and radio. Initially a website with information on the company owners, their construction background, and contact information will be available online. References to the website will be mentioned in all other forms of advertising. Channels used to reach market segments include: sales associates, the Internet and direct mail.

In addition, The table and chart below outline the company’s sales forecast for FY2005-2007. In our sales forecasts, the cost of sales includes only direct labor costs.

5.1 Competitive Edge

The company plans to become a leading provider of construction services in the local area. To achieve this, TBC will invest in many ways that will pay off in competitive advantages for its customers, for example:

• Pre-job conferencing upon request
• Assist in technical or conceptual design
• Assist in supervision when other contractors are employed
• Organize project supervision facilities and staff
• Organize delivery of purchased materials
• Furnishing after-market products

5.2 Marketing Strategy

Our marketing strategy is the key to our success:

• Emphasize our name and unique services through advertising, including a Web page of contact information. An amount of $10,000 for the design of the website has been included in the Start-up expenses with ongoing maintenance costs estimated monthly.
• Focus on commercial building and renovation projects as our initial and primary target markets.
• Use completed projects to showcase our customized construction project management to prospective clients.  

5.3 Sales Strategy

Sales success requires planning. The company will formulate its sales strategy and tactics to achieve sales success by following these steps: 

Step 1 – Analyzing The Company’s Potential: Step through a structured process to help us develop a sales strategy.

Step 2 – Strategize Around Strengths: The description of sales activity will be analyzed to produce a report on factors impacting sales potential and ways to strengthen this potential.

Step 3 – Develop Tactics: Receive guidance to develop a comprehensive tactical plan to achieve success.

Step 4 – Measure Our Past Success: Develop key measurements that mark the progress of financial estimates that guide our growth.

Final Step – Employ An Action Plan for Success: Provide sales force with a tactical plan that is aligned with management’s strategic objectives.

5.3.1 Sales Forecast

The company will start its operation in the first year by focusing on two areas:

• Direct construction work
• Renovation of existing buildings

Starting later in the second year and continuing into the third year the following areas of operation will be added:

• Renting of Industrial Spaces
• Sale of components and other building materials and components

The following table details the forecasts.

5.4 Milestones

The milestones table describes the steps required for the beginning of operations. Steps might take longer than estimated, however the owners and the staff will do their utmost to adhere to this timetable.

Web Plan Summary

The cost to create a website has been included in start-up costs, with website maintenance costs included in our ongoing expenses. The initial website will have basic contact information and background about the company owners. Later, it will show information about current projects as well as completed projects as examples of what the company can do. Once the building materials portion of the business is well established, the website will expand to include an online store. At this point in the business plan, there are no estimates for the cost of this expansion and it will need to be researched and planned for more thoroughly at a later point.

It will take time before the initial cost outlay for the website will pay for itself in potential customers, but once established, it will provide a cost-effective way to communicate to new and existing customers.

We will mention our website address as part of our other advertising media.

6.1 Website Marketing Strategy

We hope to be able to secure links to our website from the local city and chamber of commerce websites as well as local construction-related websites that we can affiliate with.

6.2 Development Requirements

We will contract with a Website developer to initially design the look and information provided on the website. Our initial cost for this design also includes the first six months of website maintenance by the website developer. In October, we plan to hire a technician with experience in website maintenance to troubleshoot and maintain the Website internally.

Once the business has progressed, we will either increase this person’s hours from temporary to a full-time position, or we will hire a second temporary technical position to assist in the re-design and expansion of the website. Our long-term goal is to have an online store for the sale of building materials and components.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The company’s management philosophy will be based on responsibility and mutual respect. Twin Brothers Construction will maintain an environment and structure that will encourage productivity and respect for customers and fellow employees.

TBC will be responsible to its employees and sub-contractors, the men and women who will work with the company throughout the state. At TBC everyone will be considered as an individual and the company will respect their dignity and recognize their merit. Employees will be encouraged to have a sense of security and pride in their jobs. Additionally, employees will be free to make suggestions and complaints. The company will afford equal opportunity for employment, development, and advancement for those qualified.

TBC employees will be committed to:

• Providing a safe work environment to protect employees, the employees of customers and sub-contractors, and the public.
• Supplying safe products for customers.
• Continuously improving the company’s safety program to reduce the risk of accidents and occupational illness in a changing work environment.
• Encouraging employees to participate in accident prevention programs and take personal responsibility for their own and their co-workers’ health and safety.
• Regulatory compliance and contribution to high safety standards for our industry.
• Monitoring workplaces, enforcing safe work practices, and communicating the company’s safety performance to employees and other stakeholders.
• Making safety a value-added service that the company provides to its customers.

The company is planning to expand its personnel to add more job superintendents as soon as the number of projects increases. These superintendents will have the following duties:

Direct supervision of all work at the job sites:

• Quality Control
• Scheduling sub-contractors and material deliveries  
• Verifying and insuring that all work is done in accordance with plans
• Insuring that all work is performed in accordance with all OSHA guidelines

7.1 Personnel Plan

The personnel plan is based on the two owners to guide and oversee the operations that will be managed by themselves. Having been in business for over 25 years, they have agreed to draw very low salaries for the first two years to offset some of the initial expenses in starting the business. 

For the first year, the company will hire temporary and part-time employees and sub-contract with consultants and construction professionals to perform the variety of tasks needed. Also, our contracted construction personnel expenses are reflected in our Sales Forecast as cost of sales, not part of our personnel table, since they will not be regular employees of the business.

TBC will be committed to conducting business in a manner that protects the health and safety of all employees, customers, and persons living in the community where it operates. To accomplish this, the company will ensure that it complies with current Health Administration and Occupational Health and Safety laws and will maintain its operations, procedures, technologies, and policies accordingly.

Each employee will have the responsibility to fully comply with established safety rules and to perform work in such a manner as to prevent injuries to themselves and others. TBC will be very concerned about job-site safety and plans to set up a comprehensive safety program.

Financial Plan investor-ready personnel plan .">

The brothers have long-term experience in the local construction industry. They are willing to invest heavily in this new company and their accumulated experience will insure success for the new venture. It will be important to watch closely the salaries and regular expenses to assure that the company will not suffer from lack of sufficient cash to fund its operations.

• We assume a conservative entrance and steady growth in the market.
• We assume a slow financial progress based on initially conservative sales against highest expenses.
• We assume there will not be an economic crash that would greatly hinder our target market’s access to their personal luxury finds.

The following sections describe the financials for TBC:

8.1 Projected Profit and Loss

Twin Brothers Construction is in the early stage of development, thus initial projections have only been made based on the sales projections and efficient cost control measures in place. Our first year monthly net profits will become positive by October, but we will still close the year with negative profit. This is primarily because of personnel expenses, which include salaries and the cost of sales for sub-contractors.

8.2 Break-even Analysis

During the first year of operations, the break-even monthly sales volume is estimated as shown below. Our average percent variable reflects our cost of sales which covers contracted construction payroll costs.

8.3 Projected Cash Flow

8.4 Projected Balance Sheet

The following table outlines our Balance Sheet.

8.5 Business Ratios

The following Ratios table includes industry profile comparison ratios for Commercial and Office Building Contractors (Standard Industry Code #1542).

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Table of Contents

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A construction business plan is vital for any businessman who wants to conduct a profitable venture in that particular field. It should include financial planning, marketing research, strategic planning , planning implementation, and evaluation. Your business plan will need to be regularly updated as well. It is a highly competitive industry out there, and you need mindful planning and execution to attract clients and boost your business. Here you find the best construction business plan templates .

• Google Docs

Step 1: Explain Your Business in Detail

Step 2: understand the market requirements, step 3: plan your finances, step 4: draw a marketing/advertising plan, step 5: use diagrams, graphs, and charts.

• Microsoft Word
• Apple Pages

• Apple Numbers
• Google Sheets

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