business plan about construction

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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Construction Company Business Plan

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

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

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

Confused about how to write a business plan?

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

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

Let’s dive right in.

Key Takeaways

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

Why do you need a construction company business plan?

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

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

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

Key components of a construction business plan

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

Executive Summary

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

Company Overview

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

Market Analysis

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

Construction Services

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

Marketing and Sales Strategy

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

Management Team

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

Operations Plan

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

Financial Plan

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

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

Related Construction Company Resources

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

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

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

1. Get a business plan template

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

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

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

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

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Write an executive summary

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

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

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

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

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

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

3. Prepare a company overview section

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

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

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

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

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

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

For instance,

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

Business goals :

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

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

4. Conduct a competitive and market analysis

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

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

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

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

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

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

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

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

5. Describe your construction service offerings

What construction services will you offer your potential clients?

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

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

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

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

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

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

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

6. Propose marketing and sales strategies

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

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

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

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

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

Your marketing strategy should answer the following questions:

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

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

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

7. Introduce your management team

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

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

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

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

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

8. Outline your operational plan

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

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

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

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

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

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

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

9. Create a financial plan

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

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

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

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

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

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

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

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

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

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

Construction Industry Highlights 2023

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

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

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

Download a sample construction business plan

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

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

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

Fill-in-the-blanks and automatic financials make it easy.

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Upmetrics is an intuitively designed business planning app with more than 400+ sample business plans . Our business planning tool features AI assistance that will transform your business writing process. Not only that, it allows you to design, collaborate, and share your business plan in real-time with your team.

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

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

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

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

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

What are the initial startup costs for a construction company?

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

Can I get government grants for a construction business?

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

How often should I update my construction business plan?

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

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

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How To Write a Winning Construction Company Business Plan + Template

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

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

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

Download the Ultimate Construction Business Plan Template

What is a construction company business plan.

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

Why Write a Construction Company Business Plan?

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

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

Writing an Effective Construction Company Business Plan

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

Executive Summary

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

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

Company Description

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

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

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

Industry Analysis

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

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

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

Customer Analysis

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

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

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

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

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

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

Competitive Analysis

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

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

Marketing Plan

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

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

Operations Plan

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

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

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

Management Team

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

Financial Plan

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

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Construction Company

Balance sheet.

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

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

Sample Balance Sheet for a Startup Construction Company

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

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

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

Sample Cash Flow Statement for a Startup Construction Company

Finish with an appendix section which will include:

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

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

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

Finish Your Construction Business Plan in 1 Day!

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Sample Construction Business Plan

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

Download our Ultimate Construction Business Plan Template

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

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

Construction Business Plan Example – BlueprintBuilders Co.

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

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

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

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

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

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

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

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

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

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

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

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

Target Customers

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

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

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

Customer Needs

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

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

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

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

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

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

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

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

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

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

Products and Services

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

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

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

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

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

Promotions Plan

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

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

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

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

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

Our Operations Plan details:

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

Key Operational Processes

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

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

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

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

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

Charlotte Moore, CEO

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

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

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Construction Business Plan Example PDF

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

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

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

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

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

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

Competition

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

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

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

Two Types of Information to Include in a Construction Business Plan

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

Industry information:

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

General business information:

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

How to write a construction business plan

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

Executive Summary

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

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

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

Company Description

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

Operational Plan

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

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

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

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

Market and Competition

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

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

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

Sales & Marketing

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

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

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

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

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

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

Financial Projections

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

Funding Request

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

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

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

Final Thoughts

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

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

By Shannon Mulligan

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

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

What’s a business plan for a construction company?

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

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

The benefits of having a construction business plan

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

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

Apply for funding

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

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

Attract top talent

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

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

Understand your competition

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

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

Gives you clarity

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

How to write a business plan for a construction company

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

1. Executive summary

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

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

2. Company description

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

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

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

3. Market analysis

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

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

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

4. Operations plan

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

5. Marketing and advertising strategies

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

6. Financial projections

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

Quick tips for writing a construction business plan

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

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

Free construction business plan template

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

Download your free construction business plan template now

Build a better business with the right tools

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

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

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

Construction business plan FAQs

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

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

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

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

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

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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:

Contractor business name ideas

Painting business name ideas

Plumbing business name ideas

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:

Handyman business plan

Painting business plan

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

by: Daniel Quindemil

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

Seriously…. there is…

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

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

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

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

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

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

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

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

We tried it all….

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

This is your business plan.

5 Pillars of a Contractor Business Plan

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

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

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

Before you start… do this.

Here are some questions to ask yourself:

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

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

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

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

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

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

Let’s get into each one.

1. Determine Your Lead Generation Strategy

How are you getting your leads?

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

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

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

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

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

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

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

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

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

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

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

So just to recap:

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

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

2. Establish Your Bidding and Estimating Process

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

There’s 3 options for you to consider:

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

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

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

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

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

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

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

3. Create a Sales Team that Closes Jobs

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

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

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

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

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

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

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

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

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

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

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

4. Set Up Project Management Systems

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

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

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

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

Bid Management Software

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

Project Management Software

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

Accounting Software

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

Estimating Software

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

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

5. Found a Field Operations Team

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

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

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

General Superintendent

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

Project Superintendent

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

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

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

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

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

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

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

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

Do you want more projects?

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

Learn about our Contractor Sales Academy .

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How to write a business plan for a construction company?

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

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

Without further ado, let us begin!

In this guide:

Why write a business plan for a construction company?

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

The written part of a construction company business plan

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

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

To have a clear roadmap to grow the business

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

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

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

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

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

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

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

To anticipate future cash flows

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

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

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

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

To secure financing

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

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

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

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

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

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

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a construction company

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

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

Carrying out market research for a construction company

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

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

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

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

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

Developing the marketing plan for a construction company

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

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

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

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

The staffing and equipment needs of a construction company

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

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

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

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

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

What goes into your construction company's financial forecast?

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

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

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

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

The projected P&L statement

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

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

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

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

The forecasted balance sheet of your construction company

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

It shows three elements: assets, liabilities and equity:

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

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

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

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

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

The cash flow forecast

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

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

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

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

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

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

The initial financing plan

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

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

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

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

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

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

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

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

1. The executive summary

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

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

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

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

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

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

2. The presentation of the company

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

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

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

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

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

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

3. The products and services section

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

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

4. The market analysis

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

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

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

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

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

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

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

5. The strategy section

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

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

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

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

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

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

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

6. The operations section

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

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

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

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

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

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

7. The presentation of the financial plan

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

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

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

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

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

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

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

There are several advantages to using specialized software:

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

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

Need a solid financial forecast?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Also on The Business Plan Shop

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

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

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

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

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

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

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• > Article

How to Write a Business Plan for Your Construction Company

What is a Business Plan?

• Executive Summary
• Company Description
• Market Research

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

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

1. Executive Summary

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

2. Company Description

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

3. Market and Competition

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

4. Services

• Commercial building
• Design work

5. Marketing

• Marketing budget
• Social media
• Your website

6. Management

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

7. Finances

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

9. Appendix

How to get a business loan for your construction company

Consider a Business Loan to Grow Your Construction Company

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Plans to bring 2 major restaurants to Seaport Village were OK’d 3 years ago. They’re not close to opening

The operators of the planned Gladstone’s and Shorebird restaurants, which will take over key Seaport Village locations, say their permits have finally been approved, and they hope to start construction soon

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Nearly three years after San Diego port commissioners cleared the way to bring two well-known restaurants to San Diego’s Seaport Village, the waterfront venues have yet to open, nor has construction even begun.

Changes, however, could be coming soon as owners of the two Southern California restaurant brands — Gladstone’s and Shorebird — indicate they’re prepared to finally start building out their new spaces within the next couple of months after years of delays.

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Gladstone’s, a restaurant brand widely known for its premier oceanfront location in Pacific Palisades, is supposed to be taking over the still operating Edgewater Grill in Seaport. And Shorebird, which has locations in Newport Beach, Palm Desert and Sedona, Ariz., is moving into the now shuttered Pier Cafe, a unique two-story structure that sits on the bay.

Both restaurateurs say their city building permits have been approved, and they are hoping to begin construction soon, although an opening date is still far off.

When the Port OK’d leases with the two operators in September of 2021 , it was expected that the restaurants would open by late 2022.

“The permitting at the city just took forever, like two years,” said Heinrich Stasiuk, founder and chairman of Orange-based Wild Thyme Restaurant Group, whose portfolio of dining venues includes Shorebird, known for its coastal flavors and fresh seafood. “The process is very delayed over there. But our construction crew is mobilizing and we plan to start construction May 14.”

Stasiuk said his company plans to invest $3 million in a makeover of the former two-level Pier Cafe, which has been closed almost two years. The 4,000-square-foot site — including patio space — will be updated with a new color palette of charcoal and white accents. Stasiuk, who hopes to open the restaurant by the end of the year, said Shorebird Seaport Village will have an indoor-outdoor design with plenty of patio dining and unobstructed bay views.

In addition, plans call for repairing the pylons that allow the restaurant to be suspended over the water, as well as replacing damaged wood and anchors, according to the building permit application, which has been approved pending the payment of required fees. The city permits just haven’t been pulled yet, although Wild Thyme has been allowed to take possession of the Pier Cafe site, port spokesperson Brianne Page said Wednesday.

“We like the look and design of the building,” Stasiuk said. “It’s been there forever and is a centerpoint of Seaport Village, so we want to keep existing bones but are updating it to a fresher look. My love for Seaport Village began with our first visit in 2005. Captivated by its charm and vibrancy, I knew it was the ideal place for Shorebird.”

Meanwhile, restaurateur John Sangmeister, who operates a Gladstone’s restaurant in Long Beach, has had approval of his building permits for several months but it wasn’t until late Wednesday afternoon that they were issued by the city following payment of the fees. Sharon Cloward, president of the port tenants group, the San Diego Working Waterfront, said that Sangmeister had indicated this week that he intends to start construction by June 1.

In an interview earlier this month, Sangmeister had said he was eager to begin work on transforming the still operating Edgewater Grill into a new Gladstone’s but had expressed concerns, like Stasiuk, about the length of time it had taken to get permit approval from the city, which had eaten into his 10-year lease granted in 2021. Both Gladstone’s and Shorebird have options to extend their leases by five additional years, Page said.

“We’d like to start work tomorrow,” said Sangmeister, whose San Diego ties date back to his sailing days with the 1987 America’s Cup team helmed by Dennis Connor. “But we should start within 60 days. I don’t see any other delays. It took forever to approve our plans. I can’t explain why it took so long, other than our story is not unique. Malibu farms (in Seaport Village) had the same experience.”

Sangmeister had been seeking some specific changes to his original lease but declined to reveal what they were. Earlier this month, he received a letter from the Port of San Diego stating that the port would not be accepting Sangmeistser’s proposed amendments to his lease and advised him that “Gladstone’s must perform under their existing Lease. The District continues to incur losses as a result of Gladstone’s delays.”

As of Wednesday afternoon, port officials said Sangmeister had yet to formally notify them by mail that he had secured his permits and was ready to take possession of the Edgewater Grill site.

“Once they do receive all necessary approvals required by the lease, they are required to submit final copies of permits and any other necessary approvals to the Port within five days,” the port said in a statement to the Union-Tribune. “The premises can only be delivered to Gladstone’s once we have what’s required by the lease.”

Sangmeister declined to divulge how much he will be investing in the new Gladstone’s, calling it a “multi-million-dollar’ project. The decor, he said, will be a contemporary Cape Cod look, and a lot more outdoor seating will be added. In addition, the bar will be relocated to a more central spot in the restaurant, under an existing atrium.

“We are going to bring our menu from Gladstone’s Long Beach, which is California American seafood,” he added.

Michael Fry, a co-owner of Water View Restaurants, which includes the Edgewater Grill, says the Seaport Village venue has been in limbo ever since the lease with Gladstone’s was signed in 2021. Edgewater has operated at Seaport since 1990.

“So we’ve just been going along, month to month, business as normal, just waiting to see what happens,” said Fry. “Overall, from our standpoint, business has been good. Seaport Village is a unique place and it’s always been busiest during the summer when people are traveling and also when conventions are in town. We knew when the leases were signed, it would just be a matter of time.”

The planned Gladstone’s is among a growing portfolio of foodie-friendly dining venues that have been coming to Seaport over the past several years ever since the Port of San Diego took over management of the tourist destination in hopes of raising its profile among travelers and locals. One of the more ambitious restaurants to open most recently was Malibu Farms, a $7.5 million project that took over the former Harbor House.

It opened last September, nearly three years after Port of San Diego Commissioners approved a 10-year lease agreement for the new restaurant. The co-owner, John Stockwell, told the Union-Tribune at the time that the restaurant’s opening was delayed in part because of pandemic-related supply chain and labor challenges.

Still looming is a mega project that proposes to demolish the waterfront center should the port give final approval to what’s known as Seaport San Diego. The $3.6 billion development proposes to remake 105 acres of land and water in the Central Embarcadero region with 2.7 million square feet of mixed-use development, including a 500-foot observation tower at the foot of Pacific Highway where Seaport Village is today.

In November of 2022, following years of negotiations, the developer got the green light from port commissioners to move into the environmental review phase, which is expected to take at least two years.

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New York lawmakers pass $237 billion budget with policies to jump-start housing market

FILE - The New York state Assembly Chamber is seen during a legislative session after Gov. Kathy Hochul presented her 2025 executive state budget at the state Capitol, Jan. 16, 2024, in Albany, N.Y. New York lawmakers passed a $237 billion state budget Saturday, April 20, that includes plans to spur housing construction and combat unlicensed marijuana stores. (AP Photo/Hans Pennink, File)

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ALBANY, N.Y. (AP) — New York lawmakers passed a $237 billion state budget Saturday that includes plans to spur housing construction and combat unlicensed marijuana stores.

The package also includes a raft of other measures such as expediting the closure of some state prisons, addressing a recent influx of migrants and continuing the pandemic-era policy of allowing people to buy takeout cocktails.

The state Senate and Assembly finished working through several budget bills Saturday after hours of debate. The spending plan now moves to Gov. Kathy Hochul to be signed into law, which she is expected to do.

The negotiations, which were conducted in private between the governor and top legislative leaders, largely hinged on a sweeping proposal to jump-start the state’s housing market.

The plan offers developers a tax break if they agree to rent a portion of apartments in new buildings for below market price. The deal also includes measures to protect some tenants against unreasonable rent increases and evictions, though it was not as comprehensive as many advocates had wanted.

“This budget agreement represents the most significant improvement in housing policy in three generations,” Hochul said in a statement.

The state had a similar tax break before, but it expired in 2022. Hochul and other supporters have long said that such an incentive is a vital lure for development, though critics consider it too costly and favorable to developers.

“Governor Hochul did not solve the housing crisis — instead she pushed through a housing deal written by the real estate industry to ensure they keep getting richer off the backs of hardworking tenants,” Cea Weaver, the coalition director for Housing Justice for All, said in a statement.

Lawmakers also moved to address the explosion of unlicensed cannabis storefronts in New York City. Bureaucratic hurdles have made it difficult for the state to shut down the shops, which have become ubiquitous in the Big Apple.

To help solve the problem, the budget includes policies that would allow local law enforcement to more easily shutter stores accused of selling marijuana illicitly while their cases play out. Previously, most enforcement could only be done by the state, and such stores were able to stay open while a lengthy appeals process played out.

State officials also earmarked $2.4 billion to care for an influx of international migrants who have overwhelmed New York City’s homeless shelters. The money will go toward housing, legal services and health care for the migrant population.

State Senate Republican Leader Rob Ortt criticized that measure during floor debates, saying it would encourage more migrants to come to New York.

“We made a lot of tough decisions in this budget,” Ortt said. “But 2.4 billion goes a long way, and I just wonder what that could have done in other parts of the budget for legal New Yorkers.”

Additionally, New York will expedite the closure of up to five state prisons in an effort to save money amid the state’s declining prison population. The governor has until next March to choose which prisons will close. The state has shuttered two dozen correctional facilities since 2011 because of vacant beds, saving about $442 million annually, according to the state corrections department.

The budget also contained measures that would offer paid time off during pregnancies, enable New York City to lower its speed limits and expand access to booze, with proposals to extend the pandemic-era sale of to-go alcoholic drinks and allow movie theaters to sell hard liquor.

The budget was finalized about three weeks after its original April 1 due date and came after a cyberattack hampered the state office that drafts bills for the Legislature.

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Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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