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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

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

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

Sample Construction Business Plan Outline

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

Executive Summary

Business overview.

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

Product Offering

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

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

Customer Focus

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

Management Team

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

Success Factors

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

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

Financial Highlights

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

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

financial projection construction business

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:

TotalPercent
    Total population590,157100%
        Male284,87348.30%
        Female305,28451.70%
        Under 5 years41,7497.10%
        5 to 9 years43,5097.40%
        10 to 14 years41,3247.00%
        15 to 19 years43,3017.30%
        20 to 24 years48,1198.20%
        25 to 34 years106,40718.00%
        35 to 44 years73,78812.50%
        45 to 54 years64,66911.00%
        55 to 59 years35,1095.90%
        60 to 64 years27,9954.70%
        65 to 74 years39,5396.70%
        75 to 84 years17,3942.90%
        85 years and over7,2541.20%
Total housing units260,024100%
HouseholdsFamiliesMarried CouplesNonfamily Households
Total7,5105,0814,2102,429
Income Breakdown
    Less than $10,0008.6%6.1%3.8%15.0%
    $10,000 to $14,9996.2%1.7%1.4%14.9%
    $15,000 to $24,99912.6%8.5%7.6%21.9%
    $25,000 to $34,99913.9%11.8%10.6%18.8%
    $35,000 to $49,99914.5%15.6%15.1%12.0%
    $50,000 to $74,99921.2%26.1%26.8%11.1%
    $75,000 to $99,9999.9%12.0%14.0%4.1%
    $100,000 to $149,9998.9%12.3%13.7%1.5%
    $150,000 to $199,9992.6%3.9%4.4%0.0%
    $200,000 or more1.6%2.1%2.5%0.7%

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.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

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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Event Venue Business Plan Template

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Construction Company Business Plan

Executive summary image

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.

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.

How to create a construction company business plan? A step-by-step guide

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

1. 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.

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2. 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.

3. Conduct a competitive and market analysis

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

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

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

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

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

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

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

industry analysis construction company business plan

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

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

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

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A lot of us struggle when it comes to translating our ideas into a solid construction business plan. But not with Upmetrics.

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.

So what are you waiting for?

Let’s Build your plan with our business plan builder.

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

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

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

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

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

What are the initial startup costs for a construction company?

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

Can I get government grants for a construction business?

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

How often should I update my construction business plan?

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

About the Author

sample home building business plan

Upmetrics Team

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

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How To Write a Winning Home Builder Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for home builder businesses who want to improve their strategy and/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 are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

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

Download the Ultimate Business Plan Template

What is a home builder business plan.

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

Why Write a Home Builder Business Plan?

A home builder 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 Home Builder Business Plan

The following are the key components of a successful home builder business plan:

Executive Summary

The executive summary of a home builder 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 home builder 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 home builder 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 home builder firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a home builder’s 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 home builder 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 your company’s success)?

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 home builder’s customers may include:

  • First-time homebuyers
  • Homeowners looking to renovate or expand their homes
  • Builders and developers constructing new homes

It is important to understand your target customers’ needs, as this will determine the products or services you offer and how you market your business. 

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

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

Competitive Analysis

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

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

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be 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 home builder business via referrals or word-of-mouth marketing.  

Operations Plan

This part of your home builder 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 home builder include reaching $X in sales. Other examples include adding new products or services, launching a new marketing campaign, or expanding to a new location.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific home builder 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 and 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 Home Builder  

Revenues $ 336,090 $ 450,940 $ 605,000 $ 811,730 $ 1,089,100
$ 336,090 $ 450,940 $ 605,000 $ 811,730 $ 1,089,100
Direct Cost
Direct Costs $ 67,210 $ 90,190 $ 121,000 $ 162,340 $ 217,820
$ 67,210 $ 90,190 $ 121,000 $ 162,340 $ 217,820
$ 268,880 $ 360,750 $ 484,000 $ 649,390 $ 871,280
Salaries $ 96,000 $ 99,840 $ 105,371 $ 110,639 $ 116,171
Marketing Expenses $ 61,200 $ 64,400 $ 67,600 $ 71,000 $ 74,600
Rent/Utility Expenses $ 36,400 $ 37,500 $ 38,700 $ 39,800 $ 41,000
Other Expenses $ 9,200 $ 9,200 $ 9,200 $ 9,400 $ 9,500
$ 202,800 $ 210,940 $ 220,871 $ 230,839 $ 241,271
EBITDA $ 66,080 $ 149,810 $ 263,129 $ 418,551 $ 630,009
Depreciation $ 5,200 $ 5,200 $ 5,200 $ 5,200 $ 4,200
EBIT $ 60,880 $ 144,610 $ 257,929 $ 413,351 $ 625,809
Interest Expense $ 7,600 $ 7,600 $ 7,600 $ 7,600 $ 7,600
$ 53,280 $ 137,010 $ 250,329 $ 405,751 $ 618,209
Taxable Income $ 53,280 $ 137,010 $ 250,329 $ 405,751 $ 618,209
Income Tax Expense $ 18,700 $ 47,900 $ 87,600 $ 142,000 $ 216,400
$ 34,580 $ 89,110 $ 162,729 $ 263,751 $ 401,809
10% 20% 27% 32% 37%

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 Home Builder  

Cash $ 105,342 $ 188,252 $ 340,881 $ 597,431 $ 869,278
Other Current Assets $ 41,600 $ 55,800 $ 74,800 $ 90,200 $ 121,000
Total Current Assets $ 146,942 $ 244,052 $ 415,681 $ 687,631 $ 990,278
Fixed Assets $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Accum Depreciation $ 5,200 $ 10,400 $ 15,600 $ 20,800 $ 25,000
Net fixed assets $ 19,800 $ 14,600 $ 9,400 $ 4,200 $ 0
$ 166,742 $ 258,652 $ 425,081 $ 691,831 $ 990,278
Current Liabilities $ 23,300 $ 26,100 $ 29,800 $ 32,800 $ 38,300
Debt outstanding $ 108,862 $ 108,862 $ 108,862 $ 108,862 $ 0
$ 132,162 $ 134,962 $ 138,662 $ 141,662 $ 38,300
Share Capital $ 0 $ 0 $ 0 $ 0 $ 0
Retained earnings $ 34,580 $ 123,690 $ 286,419 $ 550,170 $ 951,978
$ 34,580 $ 123,690 $ 286,419 $ 550,170 $ 951,978
$ 166,742 $ 258,652 $ 425,081 $ 691,831 $ 990,278

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 home builder .

Sample Cash Flow Statement for a Startup Home Builder

Net Income (Loss) $ 34,580 $ 89,110 $ 162,729 $ 263,751 $ 401,809
Change in Working Capital $ (18,300) $ (11,400) $ (15,300) $ (12,400) $ (25,300)
Plus Depreciation $ 5,200 $ 5,200 $ 5,200 $ 5,200 $ 4,200
Net Cash Flow from Operations $ 21,480 $ 82,910 $ 152,629 $ 256,551 $ 380,709
Fixed Assets $ (25,000) $ 0 $ 0 $ 0 $ 0
Net Cash Flow from Investments $ (25,000) $ 0 $ 0 $ 0 $ 0
Cash from Equity $ 0 $ 0 $ 0 $ 0 $ 0
Cash from Debt financing $ 108,862 $ 0 $ 0 $ 0 $ (108,862)
Net Cash Flow from Financing $ 108,862 $ 0 $ 0 $ 0 $ (108,862)
Net Cash Flow $ 105,342 $ 82,910 $ 152,629 $ 256,551 $ 271,847
Cash at Beginning of Period $ 0 $ 105,342 $ 188,252 $ 340,881 $ 597,431
Cash at End of Period $ 105,342 $ 188,252 $ 340,881 $ 597,431 $ 869,278

You will also want to include an appendix section which will include:

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

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your home builder 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 home builder company. The tips we’ve provided in this article should help you write a winning business plan for your home builder business.  

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Construction Contractor Business Plan PDF Example

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  • May 10, 2024
  • Business Plan

the business plan template for a construction contractor

Creating a comprehensive business plan is crucial for launching and running a successful construction contractor business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your construction contractor business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a construction contractor business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your construction contractor business concept into reality. Let’s dive in!

Our construction contractor business plan is meticulously structured to include all essential aspects necessary for a robust strategy. It outlines the company’s operations, marketing strategy , market environment, competitors, management team, and financial projections.

  • Executive Summary : Presents an overview of your construction contractor business concept, including market analysis , management structure, and financial strategies.
  • Company Information: Describes the company’s foundation, areas of expertise in the construction industry, and the operational standards that define the business.
  • Services : Details the comprehensive range of construction services offered, from residential building to commercial projects, including any specialized services such as eco-friendly constructions or renovations.
  • Target Market : Outlines the specific demographic and geographic segments the company aims to serve, emphasizing any particular needs of these markets like affordability, durability, or luxury finishes.
  • Key Stats: Provides statistics on the construction industry’s size and growth trends relevant to your market area.
  • Key Trends: Identifies significant trends affecting the construction sector.
  • Key Competitors : Evaluates primary competitors in the area and outlines your competitive advantages.
  • SWOT : Conducts a Strengths, Weaknesses, Opportunities, and Threats analysis.
  • Marketing Plan : Outlines effective strategies for attracting and retaining clients.
  • Timeline : Lists key milestones and objectives from the start-up through the initial years of operation.
  • Management: Shares information about the management team, detailing who manages the company and their respective roles.
  • Financial Plan: Forecasts the company’s 5-year financial performance, including revenue, profits, and significant expenses.

the business plan template for a construction contractor business

Construction Contractor Business Plan

sample home building business plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your construction contractor’s business plan, offering a concise overview of your company and its services. It should detail your market positioning, the range of construction and remodeling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your construction business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your company’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your construction business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Construction Contractor Business Plan  exec summary

Dive deeper into Executive Summary

Business Overview

For a construction contractor, the Business Overview section can be concisely divided into 3 main slides:

Company Information & Location

Our construction company specializes in handling diverse projects, including residential, commercial, and industrial builds. Located strategically near major transport hubs, our headquarters offer easy access to key construction sites, providing logistical benefits and enhanced service delivery to our clientele.

Services & Specialization

We offer a comprehensive range of services from general contracting to specialized projects like energy-efficient constructions. Our expertise in custom designs and turnkey solutions sets us apart in the industry, ensuring high-quality project management and client satisfaction.

Target Market

Our target market includes homeowners, real estate developers, and public sector contracts. We cater to clients seeking reliable, high-quality construction services, with a focus on innovation and efficiency to meet the unique needs of each segment, ensuring we are the go-to contractor for diverse construction demands.

Make sure to cover here _ Company Information & Information _ Services & Specialization _ Target Market

sample home building business plan

Market Overview

Industry size & growth.

In the Market Overview of your construction contractor business plan, start by examining the size of the construction industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable building practices, energy-efficient homes, and smart technology integration in construction. For example, highlight the demand for green building certifications and the rising popularity of renovations that focus on improving energy efficiency.

Key Competitors

Then, consider the competitive landscape, which includes a range of construction firms from large-scale contractors to local small businesses, as well as the trend toward DIY home improvements. For example, emphasize what makes your company distinctive, whether it’s through advanced project management techniques, specialization in sustainable construction, or exceptional client relations.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Construction Contractor Business Plan  market overview

Dive deeper into Key competitors

First, conduct a SWOT analysis for the construction contractor , highlighting Strengths (such as advanced project management skills and a wide array of building services), Weaknesses (including dependency on the economic cycle and market competition), Opportunities (for example, growing trends in sustainable construction and smart home technologies), and Threats (such as potential economic recessions that may reduce investment in new construction projects).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, strong online presence, and community involvement. Focus on showcasing your company’s unique capabilities and successful project completions to build trust and credibility in the market.

Finally, create a detailed timeline that outlines critical milestones for the construction business’s project completions, marketing initiatives, client relationship building, and expansion objectives, ensuring the business progresses with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Construction Contractor Business Plan  strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the construction contractor business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the construction contractor business toward its financial and operational goals.

For your construction contractor business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Construction Contractor Business Plan  management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your construction contractor business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your construction contractor business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Construction Contractor Business Plan  financial plan

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

By Homebase Team

Woman wearing hard hat and yellow vest

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

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

What’s a business plan for a construction company?

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

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

The benefits of having a construction business plan

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

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

Apply for funding

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

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

Attract top talent

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

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

Understand your competition

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

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

Gives you clarity

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

How to write a business plan for a construction company

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

1. Executive summary

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

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

2. Company description

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

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

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

3. Market analysis

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

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

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

4. Operations plan

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

5. Marketing and advertising strategies

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

6. Financial projections

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

Quick tips for writing a construction business plan

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

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

Free construction business plan template

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

Download your free construction business plan template now

Build a better business with the right tools

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

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

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

Construction business plan FAQs

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

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

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

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

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

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How to Write a Successful Construction Business Plan

by: Daniel Quindemil

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

Seriously…. there is…

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

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

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

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

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

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

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

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

We tried it all….

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

This is your business plan.

5 Pillars of a Contractor Business Plan

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

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

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

Before you start… do this.

Here are some questions to ask yourself:

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

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

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

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

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

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

Let’s get into each one.

1. Determine Your Lead Generation Strategy

How are you getting your leads?

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

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

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

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

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

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

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

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

GCs near me example

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

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

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

So just to recap:

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

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

2. Establish Your Bidding and Estimating Process

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

There’s 3 options for you to consider:

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

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

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

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

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

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

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

This is how the process works for our company.

First, submit your project plans. This can be either through email, or by submitting them on Dropbox.

Then, click “Choose from computer” and submit your plans. It should look like this.

After submitting your plans, you’ll receive a reply and a free quote for the project.

Then if you decide to move forward with the estimate, you’d just pay the invoice and have an entire estimate ready for you in 6-9 business days. If you have special circumstances and need it sooner, you’d call our office and we’d work out something that works best for our firm and your company.

 

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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Residential Construction Business Plan Sample

This residential construction business plan sample is focused on the growing Chicago , Illinois market. Building homes in the bustling and populous city of Chicago requires innovation and functionality.  Our residential construction business plan writers created this sample.

Executive Summary

Buckham Builders Inc. (herein also referred to as “Buckhum Builders” or “the company”) was incorporated on June 26, 2020 in Chicago by President, Gary Buckhum.  To date, Buckhum Builders has focused on purchasing, upgrading and selling residential properties, and is now looking to expand into the new home construction market by gaining certification through the General Construction License progra m.

Founder and President, Gary Buckhum is an experienced construction professional with 15 years in the industry. He is an experienced builder and property upgrader/seller for both residential and commercial properties, and has worked as a HVAC installation and service professional. Throughout his career, Gary has managed projects of varying sizes, but has developed an affinity for land development projects, overseeing multiple builds from idea to completion. Gary sees a clear opportunity in the growing residential market in Chicago. Today, he is looking to gain General Construction License to enter the new residential construction market, applying his knowledge and experience to this new opportunity. 

Buckhum Builders is distinct from other developers in the sense that Gary Buckhum takes pride in making each  home distinct and unique to one another. The company prides itself on providing a ‘classic modern’ architecture and design, catering to a growing niche of middle class and upper middle class homebuyers, entering the market for the first time and looking to purchase a newly built home. Primarily focused on sustainable, energy efficient homes provides the company with a competitive advantage and compliments growing market demand for this segment of new home development in Chicago.

Buckhum Builders is currently in the process of applying for General Construction License approval to build new construction residential properties.  Founder and President, Gary Buckhum has a strong existing network of key contractors, partners, and realtors that are prepared to support the company’s growth in the new residential construction market. Already having generated substantial revenue from previous builds, the company has successfully sold five properties and is able to fund this next stage of expansion without the requirement for substantial external financing. 

Business Overview

Buckhum Builders specialized in the design and development of spec residential homes.  The company currently designs, builds and lists homes on the market, catering to a specific sector in the residential construction market that is seeing impressive growth and demand. Now, looking to enter the new home market with General Construction License approval, the company will be able to build new homes that will be sold directly to the buyer via a real estate broker or realtor, providing a seamless construction and home purchase experience. 

Mission Statement

Our mission is to build high-quality, sustainable, classic modern homes catering to the growing middle and upper middle class homeowner market. 

Vision Statement 

Our vision is to become known as one of the top companies for sustainable custom and spec home design in Chicago, serving both individual homeowners and large development projects. 

Core Values

Gary Buckhum and the Buckhum Builders team strives to withhold core values of integrity, honesty, respect, team work, fairness and responsiveness. These core values are reflected internally in managing and dealing with one another, and externally when building homes and working with clients and partners. 

Integrity, Honesty, Respect, Team Work, Fairness and Responsiveness 

The company has achieved the following milestones thus far:

  • Purchased a large section of land with no need for external financing or loans
  • Purchased a large shop for inventory with no need for financing or loans
  • Achieved the company goal of purchasing, updating, and selling five homes in 2021
  • Successfully secured $600,000 in cash to finance first spec home development
  • Incorporated the company on July 7th 2020
  • Established growth and expansion goals for the next three years

Goals and Objectives

The goals and objectives for Buckhum Builders are as follows:

  • Hire a handyman, project manager and warranty specialist
  • Reinvest all profits into the company to fuel growth
  • Build 5-10 spec homes per year
  • Become known as a competitor in the custom home market in America
  • Build and establish long term relationships with tradesmen and suppliers 
  • Achieve net $2,000,000 per year in revenue 

Market Analysis

Buckhum Builders operates in the residential construction industry in Chicago. In particular, Buckhum Builders operates within the niche sector of sustainable, energy efficient homes located on larger lots. The company builds spec homes, custom homes, upgrades to existing buildings, and in the future plans to get into large scale residential development projects. The following section will outline the relevant trends, government regulations and competitive landscape as it relates to Buckham Builders in Chicago. 

Government Regulations

Occupational Health and Safety Act (OHSA) 

Construction companies are required to abide by several rules and regulations as stated under the OHSA. The various applicable regulations are detailed in the ‘Green Book’, and outline  the applicable laws and regulations as they relate to construction projects. Within each category, a construction company must abide by the various regulations and rules as they apply to each individual project. Some regulations require inspection via a third party, while others require that workers receive mandatory training and certification to operate safely on site. The categories are as follows: 

  • Construction Projects
  • Confined Space 
  • Critical Injury
  • OHS Awareness and Training
  • JHSCs- Exemption
  • Unilateral Work Stoppage
  • Inventory of Agents of Combinations of Agents 
  • Offices of the Worker and Employer Advisors

After Sales / Service Policy

Buckham Builders Inc.. follows General Construction License’s warranty policy and it is as follows:

Warranty Overview

The statutory warranties on work and materials that you provide on the home take effect on the Date of Possession and last for a total of seven years. The Date of Possession is the closing date or, in the case of a condominium unit, the occupancy date/interim occupancy date.  The statutory warranties are divided into the three timeframes outlined below. 

One-Year Warranty

  • Requires that the home is constructed in a workmanlike manner and free from defects in materials
  • Protects against unauthorized substitutions of items of construction or finishing that are referred to, or selected by the purchaser, in the purchase agreement
  • Protects against Chicago Building Code violations

Two-Year Warranty

  • Protects against water penetration through the basement or foundation 
  • Protects against defects in materials, including windows, doors and caulking, or defects in work that result in water penetration into the building envelope 
  • Covers defects in work or materials in the electrical, plumbing, and heating delivery and distribution systems 
  • Protects against Chicago Building Code violations that affect health and safety, including but not limited to fire safety, insulation, air and vapour barriers, ventilation, heating, and structural adequacy

Seven-Year Warranty

Provides coverage against major structural defects. These include:

  • Defects in work or materials that affect a structural load bearing element of the home, resulting in an actual structural failure
  • Defects in work or materials that materially compromise a structural load bearing element of the home, even if failure has not occurred or is not imminent
  • Defects in work or materials that materially and adversely affect the use of a significant portion of the home

Condominium Common Elements

For most condominiums, the common elements have the above warranty coverage. The condominium corporation is entitled to submit warranty claims for defects in work or materials in the common elements. There is no warranty coverage for the common elements of either a common elements condominium or vacant land condominium. Common elements warranty coverage begins on the date the condominium corporation is registered. 

Coverage Limits

For all purchase agreements or construction contracts signed on or after February 1, 2021, these new warranty limits are in place:

  • The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
  • The maximum coverage for condominium common elements is $100,000 multiplied by the number of units, up to a maximum of $3.5 million.
  • The maximum combined coverage for a condominium project (units and common elements) is $50 million.
  • There is a maximum of $50,000 for warranted damage caused by environmentally harmful substances or hazards, including mould, for freehold homes and condominium units.

For all purchase agreements or construction contracts signed before February 1, 2021, these warranty limits remain:

  • The maximum coverage for condominium common elements is $50,000 times the number of units, up to a maximum of $2.5 million.
  • There is a maximum of $15,000 for warranted damage caused by environmentally harmful substances or hazards, including mold, and a maximum of $25,000 for coverage of septic systems.

Market Trends 

City of Chicago trends

The city of Chicago has a population of 14.9 million people as of 2022. The total number of housing units sold in 2021 was approximately 263,799, with an average house price of $887,290. In 2021, there were a record 100,089 housing starts in the city, alongside the highest rental starts at more than 13,000. There is a strong demand for housing in Chicago, with a study done by Scotiabank noting that Chicago was the city with the lowest supply of homes per capita. Despite a noted slowing in the number of home sales in 2022 from 2021 levels, average price per home is still increasing. These market dynamics display an apparent shortage of homes in Chicago, and need for increased supply of mid-market homes for first time homebuyers and middle/upper middle class individuals and families. 

Residential Construction Trends

The Chicago home builders market was valued at $32.9BN in 2021 with a compound annual growth rate of 3.8% between 2016-2021. There are approximately 54,190 businesses in the industry, employing over 82,000 employees. The homebuilders market primarily supplies single unit houses, double house construction and row house construction, with the vast majority (85%) of jobs allocated to single unit house construction. Key drivers of this market include per capita disposable income to fund housing purchases, the overnight rate at which financial institutions lend money impacting interest rates on mortgages, the value of residential construction, and housing starts. In the USA, speculation over the housing market ‘bubble’ increased uncertainty in the market, as housing prices continue to rise in response to foreign investment in the American housing market, with young American first time home buyers increasingly becoming crowded out of the market. However, increased government support through tax policies and fiscal measures, and an increasing supply of new housing units attempt to alleviate the economic and financial pressures of homeownership while also stimulating the wider American economy.

Key Competitors

Buckhum Builders competes with other businesses located in Chicago providing services to residential homebuilders and developers. The top three competitors are as follows:

Omega Homes: is a custom home builder located in the Central Business District. Omega Homes specializes in both single home design, as well as large multi unit development projects. Similar to Buckhum Builders, Omega Homes is a registered General Construction License custom home design builder, and specializes in modern stylish homes. The Omega Homes team includes architects, designers, and trades, and operates in various locations across Chicago.  In addition to construction services, Omega Homes offers lot selection, design, planning, construction financing, interior design and decor services. 

Sanchez Homes: is a luxury custom home builder serving the Central Business District. They take a customized approach, working closely with each individual client at all planning and building stages to ensure high quality customer satisfaction. Sanchez Homes is General Construction License certified and part of the Central Business District Home Builders Association, and has won the Best of Houzz award in 2015, 2017, 2018, 2019 and 2020. They are able to deliver on any architectural style, and have experience working with Heritage Homes. 

Greenmark Builders: is a luxury custom home builder company that has been in business for over ten years. Greenmark Builders is equipped with a skilled team of architects, handymen, designers, and project managers to work closely with customers throughout the entire design process. In addition to offering homebuilding services, founder and CEO Mark also runs a YouTube channel where he shares tips and tricks on home improvement projects and current Greenmark Building Projects. 

Products and Services

Buckhum Builders specialized in spec home construction. The company purchases old homes or plots of land, updates or tears down old homes to replace with new modern homes, and sells them directly to target customers on the open market. Homes are funded and built by Buckhum Builders, and the team has a strong attention to detail in regards to customer fittings, design preferences, and customer taste. The Buckhum Builders construction process gives the buyer a custom home fitting without the hassle of managing a construction project. 

Pricing Model

Buckhum Builders currently operates in the spec home market, where Gary Buckhum will purchase homes or plots of land, build and upgrade the building envelope and re-sell the home. 

Houses are bought and sold at fair market price, with the price spread earned through the upgrades and building design done by Buckhum Builders. Spec homes are built, funded by the company, and sold directly to a buyer. Projects start a minimum of 100k per project and are set by square footage. Field workers and contractors are paid approximately $25 per hour. 

Competitive Advantage 

The company’s competitive advantage is built on the industry experience and expertise of Gary Buckhum. With over 15 years of relevant industry experience, Gary sees an opportunity in the larger lot custom home market, where he is able to deploy his expertise and knowledge to high quality home building. Gary is inspired by creating homes that are thoughtfully designed with practical features, unique touches, and tasteful interiors. With a strong existing network of key contractors, partners, and real estate professionals, the Buckhum Builders team will be able to effectively scale in the residential construction market, and develop strong customer goodwill by producing high quality homes that are on time and within budget. 

Gary has experience in house flipping and building of spec homes, and plans to focus efforts in this market where he knows his team can be successful. By taking a personalized approach to each home, and designing with the homeowner in mind, he will be able to tactfully deploy resources in a way that allows the design of unique custom homes at a middle price point. 

Key Success Factors

Key success factors for this business are determined by market credibility and having proven prior success. Alongside credibility, it benefits companies to have proven financial, managerial and technical ability to undertake new projects on. Access to a skilled and trustworthy workforce, subcontractors, and tradespeople, and the ability to expand and retract operations due to changing market conditions. Finally, maintaining healthy margins is integral to success, and the ability to source raw materials at a good market price, and work efficiently to complete projects on time and within budget is imperative to success. 

Sales and Marketing Plan

The company primarily serves the Chicago market located within 200km of the nation’s capital, Central Business District. Buckham Builders designs custom classic modern homes, catering to upper and middle class families who live in city centers, suburban areas, or rural settings. 

Target Customer

The company’s target customers are middle class and upper middle class families and individuals. Some may be first time home buyers, but it is not limited to this particular sector. The company currently operates as a spec home builder, listing tasteful homes on the market, designing and building to cater to current market trends and demands for housing. 

In the USA, the middle class is defined as households ranging from $53,413-$106,837 per year in cumulative income, and the upper middle class is defined as households ranging from $106,827-$373,894 in cumulative household income. In the USA, these two categories make up 68% of the total population with 10% being in the upper middle class, and 58% being in the middle class. As such, Buckhum Builders has a substantially large market to target. 

Buckhum Builders design philosophy is luxurious classic modern. The architectural style will be in the mid-point between ultra modern and classical design, attracting a wide range of homeowners and homebuyers who are in the market to purchase a home. By selling homes directly into the market, Buckhum Builders will be able to reach their target audience with a high purchase intent, growing interest and awareness in Buckham Builders and building strong goodwill over time. 

Key Channels

The company will use a variety of digital marketing channels to advertise their services. These include social media, Search Engine Optimization (SEO), emailing, and phone calls. Additionally, key personnel from the Buckham Builders team will work to establish partnerships with key contractors, project managers and property developers to develop and maintain long term partnerships as preferred contractors. 

Since the company will sell homes directly on the market, Buckhum Builders will also leverage partnerships with key realtors to promote and sell newly built homes. This will be a key channel for Buckhum Builders, increasing exposure, brand awareness and recognition over time. By partnering with key realtors that cater to the target customer and market, the company will ensure homes are being shown to appropriate audiences to generate substantial sales. 

Key Performance Indicators

The company will track the following key performance indicators (KPI’s):

  • Profitability ratios
  • Gross Profit Margin
  • Number of homes built
  • Number of site inspections conducted
  • Total cost of rework
  • Waste/recycling per job
  • Percentage of labor/equipment downtime
  • Relative Market Share
  • YOY Sales Growth
  • Retention Rate
  • Employee Retention and Satisfaction
  • Customer Satisfaction

SWOT Analysis

sample home building business plan

Operational Plan

Buckham Builders is owned and operated by Gary Buckhum and Sharon Greyhound. The company builds and sells spec homes, working with real estate brokerage companies to sell newly built and upgraded homes. 

Buckhum Builders primarily deals directly with real estate brokerage companies, which require a 10% deposit on purchase. On closing, the remaining purchase price is deposited directly into the Buckhum Builders account, minus an additional realtor and lawyer fees. 

Health & Safety

The Chicago Health and Safety Association (OHSA) recognizes construction sites as high hazard work environments and have a variety of relevant risks dependent on the job site. As such, there are a variety of safety requirements that must be implemented in order to operate a construction site in the city. The OHSA has implemented a number of safety regulations and standards as outlined in the 1926 OHSA including general safety requirements, health provisions, occupational health, sanitation, hazardous substances, mandatory training, and PPE & life saving equipment. 

Staff and contractors may also require mandatory safety training and certification in order to work on construction sites. This include, but are not limited to, WHMIS Certification, Fall Protection, Confined Space, First Aid and more. Construction sites may also require a designated safety manager on site to monitor and implement safety policies. 

Equipment & Inventory

The company currently owns a half ton truck and a variety of required materials and tools required to build a home. Gary Buckhum and his team currently rent major heavy equipment, or rely on key contractors to supply the necessary equipment depending on job type. 

The company is registered at 6882 Lakes Park Drive in Greely Chicago, K4P 1M6

Risk Analysis

The residential construction industry is closely tied to the overall economy and national GDP. The main risks associated with the residential construction industry sector are as follows:

Design Defects and Budgetary Planning Buckhum Builders designers will pre-assess construction jobs and set project budgets accordingly. As such, there are risks associated with unforeseen accidents and defects impacting the ability for the company to complete projects on time and within budget. Buckhum Builders will mitigate these risks by using industry best practices to estimate project costs and take a proactive approach to spot potential defects prior to starting on components of the project. It is the responsibility of the Lodestone team and contractors to conduct due diligence and maintain regular check-ins to ensure the project is on track. 

Residential Construction Cost: Residential construction cost includes the cost of the land, cost per square foot, and the cost of materials and relevant equipment. The residential construction cost is directly associated with overall housing value and subsequent profits for Buckhum Builders and other contractors. Rising residential construction costs pose a risk to Buckhum Builders as they may result in less revenue for Buckhum Builders, as well as declining home purchases. While it is challenging to avoid these increasing costs, Gary Buckhum will mitigate this risk by relying on existing partnerships and long term contracts with key suppliers, aiming to avoid price increases. Additionally, the team will deploy the experts of tax planning and pricing specialists to ensure they are able to price homes competitively while also maintaining healthy margins and profits. 

The overnight rate: The overnight rate is a rate set by the Bank of America at which major financial institutions borrow and lend short-term funds to one another. When interest rates are low, construction activity typically picks up due to low-cost financing. Conversely, higher interest rates make it more difficult to obtain financing for mortgages and financing. While Buckhum Builders is not immune to overall changing economic conditions, throughout market research and understanding ensures that the company is operating in a sector that is seeing increased growth and demand in Chicago and across America. 

Management Team

Gary Buckhum

Gary Buckhum is the founder and President of Buckham Builders. He has over fifteen years  of experience in the construction industry, working as a HRAI certified contractor, house flipper, and general contractor. He is knowledgeable and experienced in residential hydronics design, with experience in installing and maintaining furnaces, boilers, water heaters, pool heaters, fireplaces, and AC units. He has worked as an independent contractor since 2015, and has developed a strong network of key contractors and partners he will leverage and deploy in future projects with Buckhum Builders. 

As the President of Buckhum Builders, Gary has experienced success in investing in residential and commercial units, performing enhancing upgrades to increase the property value, and then reselling the properties in the market at fair market value. Gary is prepared to lead the company into its next stage of expansion into the new homes market, and is committed to growing the team and resources to bring the company to success. He is a capable leader and sales professional, with experience managing projects and key team members. He is a member of the American Professional Sales Association and enjoys working with people. Gary is ambitious and committed to scaling Buckhum Builders to become a widely known and respected residential development company in Chicago. 

Sharon Greyhound

Business Manager

  • Maintains records of financial transactions by establishing accounts; posting transactions; ensuring legal requirements compliance.
  • Develop systems to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.
  • Maintains subsidiary accounts by verifying, allocating, and posting transactions.
  • Balances subsidiary accounts by reconciling entries.
  • Maintains general ledger by transferring subsidiary account summaries.
  • Balances general ledger by preparing a trial balance; reconciling entries.
  • Maintains historical records by filing documents.
  • Prepares financial reports by collecting, analyzing, and summarizing account information and trends.
  • Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions.

Key Personnel

Employee: TBC

Salary: $50,000 annually 

Responsibilities:

  • Ability to finish outstanding projects on job site
  • Clean facilities by sweeping, dusting etc.
  • Perform maintenance and light repairs
  • Perform routine landscaping on the grounds
  • Paint and fill gaps or crevices (on walls, sidewalks etc.)
  • Undertake light installation or carpentry (e.g. build cabinets)
  • Repair equipment or appliances
  • Assist tradespeople with electrical, plumbing or HVAC repairs
  • Undertake duties as assigned or emergency tasks (e.g. shoveling snow)
  • Identify and report the need for major repairs

Project Manager

Salary: $75,000 per year

Responsibilities: 

  • Determine and define scope of work and deliverables
  • Predict resources needed to complete project
  • Obtain necessary permits, approvals, and other regulatory prerequisites
  • Draft and submit budget based on scope of work and resource requirements
  • Manage costs in order to meet budget
  • Provide direction over contracts and subcontracts
  • Manage construction schedule and activities
  • Issue progress updates as needed regarding costs and timelines
  • Ensure work is done in compliance with all relevant building and safety codes
  • Select and manage subcontractor and supplier relationships
  • Coordinate efforts across entire project between all involved parties

Warranty Specialist Employee: TBC 

Salary: $75,000 annually

  • Being a point of contact for those who have sent in claims
  • Assessing, organizing and filling out paperwork pertaining to claims
  • Ensuring correct filing and storage of paperwork and records in case it is needed at a later date
  • Liaising with accounting teams to ensure payment is received for any work commissioned
  • Being in contact with any engineering or technical teams to schedule work carried out as part of a claim
  • Arranging for delivery of parts or replacement items if a claim requires it
  • Scheduling servicing or repair appointments

Key Contractors

Buckhum Builders has longstanding relationships with the following contractors and building suppliers. Each company has a strong commitment to excellence, strong customer service, and abide by all provincial safety and regulatory requirements: 

Caleb Warren

Building Materials and Truss supply

Scott Timber

Building Materials and truss supply

Fortress, Inc.

Drywall Services

Stone Life Corporation

Countertop Supply

Hopewell Plumbing and heating

Plumbing and HVAC supply 

Morris Flooring

Flooring supply and installation

Logan Electric

Electrical supply 

Marigold Kitchens

Cabinet supply

Financial Plan

The following financial plan incorporates a variety of variables including population growth in Chicago, production from competing construction companies, existing clients of competitors and the potential for economic challenges. Moreover, these projections have been conservatively developed and incorporate all potential expenses. 

Pro Forma Income Statement

sample home building business plan

Pro Forma Cash Flow Statement

sample home building business plan

Pro Forma Balance Sheet

sample home building business plan

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ProfitableVenture

Construction Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Construction & Engineering Industry » Construction Business

Construction Business

Are you about starting a construction company ? If YES, here’s a complete sample construction business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a construction business. We also took it further by analyzing and drafting a sample construction marketing plan template backed up by actionable guerrilla marketing ideas for construction businesses. So let’s proceed to the business planning section.

A Sample Construction Company Business Plan Template

1. industry overview.

The construction industry can comfortably boast to be responsible for the infrastructural development of the world. As such, the development of any country or city can be said to be the handiwork of construction companies and other stakeholders.

In other words, all the edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers and massive structures that you see around are all products of the construction industry. Starting a construction business is capital intensive simply because of the type of heavy duty equipment that is required to carry out a construction project and also the cost of managing a large workforce.

Despite the fact that the construction industry requires huge start – up capital, the industry is highly profitable, especially if you have the expertise and capacity to deliver quality jobs. The major clients for construction companies are governments and the private sector.

Construction giants all over the world head towards developing countries, because they know that they are going to get juicy construction contracts there. Unlike in advanced economy, in developing countries and undeveloped world, there are loads of construction works to be done.

The fact that they have infrastructure deficit means that the government must be up and doing in terms of road constructions, bridge construction, public facility construction (hospitals, schools, office facilities and estates et al) and dams constructions.

After a war, the construction industry is one of the major stakeholders that contribute in the rebuilding of a country. In so doing, they work with governments in ensuring that basic infrastructures are restored and of course it will always ends up a win – win situation for both parties.

The government gets what they want and the construction company and contractors get good returns for delivering the projects.

Over and above, the success of a construction company to a larger extent depends on their relationship with the biggest clients in the industry; the government of any country. No doubt there is always enough construction contracts to go round as long as a construction company is competent and well positioned. They won’t lack construction contracts from both the government and the private sector.

2. Executive Summary

Shannon Berg Construction Company is an international construction company that has its headquarters in Grand Rapids, Michigan – USA. The fact that we are based in the united states does not in any way restrict our scope of operations to the United States of America.

We are an international construction company and we work for our clients (governments and private sectors) in any part of the world.

Shannon Berg Construction Company will be specialized in the constructions of skyscrapers, bridges, stadiums, roads, dams, Office complex, shopping malls, schools, campuses and estates et al. As a matter of fact, we are going to be known for delivering world class structures all over the globe.

Creativity, excellence and timely completion of construction projects will be our signature. We intend starting our construction business on a small scale in Grand Rapids, Michigan, but we have a bigger picture – to have our presence in any part of the world that our clients wants us to work.  We hope to achieve this feat within the first 10 years of launching the company.

As part of our plans to make our highly esteemed customers our number one priority and to become a global construction brand, we have perfected plans and strategies that will enable us work with our clients in delivering projects that can favorably compete with the best in the industry at an affordable and reasonable price within the stipulated completion date barring any unforeseen circumstance.

Shannon Berg Construction Company is fully aware that starting a construction business requires huge capital base, which is why we have perfected plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any construction project that comes our way, as long as the project is duly commissioned by the required authority.

Shannon Berg Construction Company will be owned by the principal partner; Engr. Shannon Berg and other partners (Nani David, Lois Scotland and Christopher Parkston). They also have plans in the pipeline to sell the shares of the company in the nearest future to interested investors who would want to be part owners of the company.

Shannon Berg who is the principal partner has well over 25 years of experience in the construction industry. Before starting his own construction company, he was a senior project manager and consultant with one of the world’s largest construction company based in Germany.

Engr. Shannon Berg, Nani David, Lois Scotland and Christopher Parkston will be the major financier of the company. Nonetheless, we have made a concerted decision not to limit the number of investors with similar investment ideology that may want to invest in the business.

This is necessary in order for us to be able to retain financial flexibility. Ideally, our plan is that no investment will be less than $1,000,000, which would purchase a 1 percent equity position. It is our desire that all equity partners be limited partners.

3. Our Products and Services

Shannon Berg Construction Company is a construction company that is set to undertake both small construction projects and massive construction projects for governments, private sectors and for individuals which is why we do not intend to place limitations of the scope of the projects we handle and what we do.

We know that if we are good at what we do, it will make it easier for our brand to grow beyond Grand Rapids, Michigan to other parts of the United States of America and the rest of the world. Our business offering are listed below;

  • Road Construction
  • Bridge Construction
  • Dam construction
  • Airports and Helipads Construction
  • Seaports Construction
  • Skyscrapers construction
  • Estate construction
  • Public facility construction (hospitals, schools, shopping malls, office complexes and industrial facilities et al)
  • Construction of residential facilities
  • Property Makeover Services
  • Construction Consultancy and Advisory Services

4. Our Mission and Vision Statement

  • Our vision is to build a first class construction company that will have active presence in North America, South America, Africa and Asia.
  • At Shannon Berg Construction Company, our mission and values are to help governments, the private sector and individuals in the United States of America and throughout the world realize their dreams of building a world class structure that can compete on a global stage with the best in the construction industry.

Our Business Structure

Shannon Berg Construction Company intend starting small from Grand Rapids, Michigan, but with a vision of growing the business to becoming a global construction brand with presence in all the continents of the world. In order to achieve this vision, we just have to position our company for growth and ensure that we hire dedicated and highly competent employees at all levels.

Shannon Berg Construction Company will ensure that we build a team that will work together towards achieving the company’s vision. We will build a business that has the right structures and process in place that can support growth; a business that runs on autopilot.

In view of the above, we have made provisions for the following position in our organization based on the size of the company we intend starting but as the business grows, we will create senior level positions and also create a structure that will support the business growth at every growth and expansion stage;

  • Chief Executive Officer (President)

Project Manager

Civil Engineer

  • Structural Engineer
  • Quantity Surveyor

Land Surveyor

Company’s Lawyer/Secretary

Admin and HR Manager

Business Developer

  • Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for the day to day running of the business
  • Responsible for handling high profile clients and deals
  • Responsible for fixing prices and signing business deals
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board
  • Responsible for the planning, management and coordinating all projects on behalf of the company
  • Supervises projects
  • Ensures compliance during project executions
  • Provides advice on the management of projects
  • Responsible for carrying out risk assessment
  • Using IT systems and software to keep track of people and progress of ongoing projects
  • Responsible for overseeing the accounting, costing and billing of every project
  • Represents the organization’s interest at various stakeholders meetings
  • Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
  • Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
  • Ensures that sites meet legal guidelines, and health and safety requirements
  • Assesses the environment impact and risks connected to projects
  • Responsible for judging whether projects are workable by assessing materials, costs and time requirements
  • Draws up blueprints, using Computer Aided Design (CAD) packages
  • Discussing requirements with the client and other professionals (e.g. architects and project managers et al)
  • Responsible for managing, directing and monitoring progress during each phase of a project
  • Responsible for creating building designs and highly detailed drawings both by using the hands and by using specialist computer – aided design (CAD) software
  • Works around constraining factors such as town planning legislation, environmental impact and project budget
  • Writes and presents reports, proposals, applications and contracts
  • Adapting plans according to circumstances and resolving any problems that may arise during construction
  • Works with project team and management to achieve a common goal
  • Responsible for applying for planning permission and advice from governmental new building and legal department.
  • Responsible for undertaking land surveys/measurements using a variety of specialist technical equipment such as theodolites, laser alignment devices and satellite positioning systems et al.
  • Responsible for presenting data to clients
  • Responsible for producing and advising about construction plans and drawings
  • Responsible for advising about technical matters and whether the construction plans are viable
  • Responsible for drawing up contracts and other legal documents for the company
  • Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/ securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
  • Develops company policy and position on legal issues
  • Researches, anticipate and guard company against legal risks
  • Represents company in legal proceedings (administrative boards, court trials et al)
  • Plays a part in business deals negotiation and take minutes of meetings
  • Responsible for analyzing legal documents on behalf of the company
  • Prepares annual reports for the company
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.
  • Identifies, prioritize, and reach out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information (manage the company’s CRM system)
  • Represents the company in strategic meetings with government agencies, private sectors and contractors
  • Helps increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for financial forecasting and risks analysis.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

  • Receives Visitors/clients on behalf of the organization
  • Receives parcels/documents for the company
  • Handles enquiries via e-mail and phone calls for the organization
  • Distributes mails in the organization
  • Handles any other duties as assigned the line manager

6. SWOT Analysis

Surviving in the business world as a construction company requires more than knowing how to deliver standard projects but also how to network with key people that matter; decision makers that can decide who a project is given to and all that.

We know that it will be a bit difficult to compete with already established construction companies in the United States especially because we are new in the industry.

In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of a Dr. Joe Whyte, a renowned HR and business consultants in the United States of America to help us run a SWOT analysis.

It is important that we know our strength, our weaknesses, and the opportunities that we can leverage on in the industry and the threats that we are likely going to be confronted with.

With that, we will be able to map out strategies that will not only help us to survive in the industry but also to build a global construction brand. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Shannon Berg Construction Company;

Shannon Berg Construction Company can confidently boast of having a competent and highly experienced management team who are regarded as some of the best hands in Michigan.

Although we are a new construction company, but our president and board of trustee are respectable people in the United States of America who have served the US government in various capacity; we are a construction company that has the right network that is suitable for the kind of business we are into.

Well the fact that we are a new construction company could count as a weakness. It is normal for clients to think twice before awarding construction contracts to newbies in the industry.

Another weakness that can count against us in the industry is the fact that we may not have the financial muscles to drive the business the way we ought to drive it. We require huge financial base to be able to acquire some of the latest heavy duty construction equipment.

  • Opportunities:

Our business concept, our mission and vision puts us at an advantage in the industry. We will start small to build trust within Grand Rapids, Michigan and there are loads of opportunities for us there simply because we are well positioned to work with both the state government and the highly organized private sector.

Generally in the construction industry, both the already established construction companies and start – up construction companies are subject to threat from government policies, global economic downturn and unforeseen natural disasters (disasters that may cause setback).

These are the threats that we are likely going to face as a newbie construction company in Grand Rapids, Michigan. Another threat that we are likely going to face is the arrival of a big construction company in the location where our business has strong presence.

7. MARKET ANALYSIS

  • Market Trends

The trend in the construction industry is that construction companies are always coming out with processes that will help them achieve more within a short period; construction jobs can be time consuming especially the construction of massive infrastructures.

Most players in the construction industry are fully aware that the government of any country or state is the biggest clients they can get and they do all the lobbying and horse trading to ensure that they get government contracts.

No doubt there are loads of big time investors that have stakes in the construction industry, but one thing is certain, there is room big enough to accommodate both the big construction companies and the small construction companies.

What smaller construction companies need to do to survive in the industry is to concentrate on developing estates, schools, hospitals and hotels et al before bidding for big construction contracts like road construction, bridge construction, dam construction and skyscrapers et al.

Another obvious trend in the construction industry is subletting of contracts. It is now obvious that construction giants leverage on their brands to win contracts and in some cases after they have won the contract.

They will go ahead to sublet the contract to smaller construction company that they trust can deliver to execute the project at an agreed fee that will be good enough for both parties to make profits. Smaller construction companies position themselves to be able to leverage on such opportunities once it present itself.

8. Our Target Market

Our target market cuts across governments at all levels and countries, the organized private sector and people of different class and from all walks of life. We know that our selling points will be our excellent and timely delivery of construction projects using global best practices.

We will start with the local market, people, organizations and the government in Michigan, but we hope to spread our nets to clients from other states in the US and thereafter other countries of the world.

Shannon Berg Construction Company will be known for working with smaller clients (various individuals) as well as working for bigger clients (various governments and organized private sector). Below is a list of the people and organizations that we have specifically designed our services for;

  • Organized private sector (Corporate organizations)
  • Land Owners
  • Businessmen and Businesswomen
  • University Campuses
  • Foreign investors who are interested in owning properties in the United States of America
  • The government of the United States of America (Government contracts)
  • The governments of other nations of the world

Our Competitive Advantage

We are quite aware that there are big – time investors and construction companies who are well recognized in the construction industry, and we maybe have to compete with them when it is time to bid for juicy government contracts.

It might be challenging competing as a newbie in the construction industry, especially in a highly organized market like that of the United States of America, which is why we were deliberate in choosing our board members. Our competitive advantage is not limited to the crop of highly experienced professions that are members of our management team but also our board members.

Our board members are highly respected professionals in the United States who have served the government of the United States at various capacities; people who are accomplished business gurus and people who have the right connections and experience to make things happen with little or no struggle. For us, it is indeed part of the competitive advantage that we are bringing to the market.

Another positive for Shannon Berg Construction Company is the fact that our Chief Executive Officer / President is a renowned Civil Engineer, he has robust experience in the construction industry and he has worked extensively as a senior project manager for one of the world’s leading construction companies.

He is sure going to bring is experience, expertise and network (connections) to make Shannon Berg Construction Company one of the leading construction brand in Grand Rapids, Michigan and also active player in the global construction market.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Shannon Berg Construction Company was established with the aim of maximizing profits through delivering quality and standard construction works for our highly esteemed clients. We will ensure that we generate income from every available means within the construction industry. Below are the sources we intend exploring to generate income for Shannon Berg Construction Company;

  • Construction of residential apartments

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

We have relationship with major stakeholders in the real estate and construction industry in Grand Rapids, Michigan and also in order states in the US and we are sure of getting key construction contracts to kick start of business. Below are the projections that we were able to come up with for the first three years of Shannon Berg Construction Company;

  • First Year-: $2,000,000
  • Second Year-: $3,500,000
  • Third Year-: $5,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that all things that will facilitate easy flow of construction contracts. From our calculations, we are likely going to make a minimum of 30 percent profits after task from executing key construction projects.

  • Marketing Strategy and Sales Strategy

We have been able to clearly define our target market and have documented this in our construction marketing plan. We know how to get them to hire our services which is why we have decided to adopt some of the winning formula that construction giants utilize to win major construction contracts.

We know that it will take different marketing and sales strategies to win small clients and bigger clients. For example; there are requirements a construction company would hate to meet before they can be awarded a government contract. We have put all these factors in place before creating a workable marketing and sales strategy for Shannon Berg Construction Company.

Shannon Berg Construction Company is fully aware of the bureaucracy and horse trading that exists in bidding for construction contracts from the government and even the organized private sector, which is why we were able to put protocols in place to hire some of the best business developer to handle our sales and marketing.

No doubt, our sales and marketing team will be recruited based on their vast experience in the construction industry and their ability to fit into our Business model. We are going to pay more emphasis in the training of all our employees so as to give them all they would need to help the company achieve its aim and objectives.

Our goal is to become one of the leading construction companies in Grand Rapids, Michigan and we know we can achieve this by ensuring that our sales and marketing team are delivering on set targets. Shannon Berg Construction Company will adopt the following marketing and sales strategies;

  • Introduce our business by sending introductory letters alongside our brochure to all the corporate organizations and government offices in Grand Rapids, Michigan and other States in the US.
  • Promptness in bidding for contracts
  • Advertise our business in real estate/properties magazines and websites
  • List our business on yellow pages
  • Promote our business on satellite TV stations and radio stations.
  • Attend expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/property to them
  • Leverage on the internet (social media platforms and our official websites) to promote our business

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. First and foremost, we want our brands to be visible and well communicated, which is why our publicity strategy have been well crafted to help us achieve our aims and business objectives.

All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our property development business;

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows
  • Utilize our company’s website in promoting our business
  • Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ et al
  • Install our Bill Boards on strategic locations

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent and world class construction projects.

We are quite aware that there are major players in the construction industry in the United States of America who are not interested in small business deals and that is why we have positioned Shannon Berg Construction Company to take on such contracts.

Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopefully that whatever price we bill our customer will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way going to affect the quality of our construction projects.

  • Payment Options

Our payment policy in Shannon Berg Construction Company is all inclusive because we are quite aware that different people prefer different payment options as it suits them, but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

  • The Total Fee for incorporating the Business in New York: $750.
  • The budget for Liability insurance, permits and license: $5,000
  • The Amount needed to acquire a suitable Facility with enough space in Grand Rapids, Michigan (Re – Construction of the facility inclusive): $500,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $15,000
  • The cost for acquiring heavy duty construction equipment: $2,000,000
  • The Cost of Launching a Website: $600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
  • Working capital (investment fund): $3,000,000 (3 Million US Dollar)

Going by the report from our research and feasibility studies, we will need about $7,000,000 (7 US Million Dollars) to set up a construction company in Grand Rapids, Michigan. It is important to state that most of the heavy duty construction equipment that we will work with will be leased.

This necessary because some of these equipment are really expensive and it won’t be economical for us to acquire them from the start.

Generating Funding/Startup Capital for Shannon Berg Construction Company

  • The Chief Executive Officer/President Engr. Shannon Berg will generate 20 percent of the start – up capital from his personal savings and sale of his stocks
  • 30% of the capital will be generated from key partners (Nani David, Lois Scotland and Christopher Parkston)
  • 50% of the capital will be sourced from banks

14. Sustainability and Expansion Strategy

Shannon Berg Construction Company was established with the aim of building a company that will outlive the founders and partners; a construction company that will have active presence in major cities in the world. Part of the vision of the company is to handover the baton of the company from one generation to generation; hence we have perfected our plans to put the right structures in place that will aid our succession plan.

In order to position of company for growth, we have been able to create strong partnerships with the government of the United States of America, organized private sector and construction giants. We are optimistic that we will continue to execute construction contracts for our clients.

Our marketing team will continue to get the needed support and encouragement that they need to be able to deliver on set goals and targets for the organization, and we will continue to improve our processes and structure to meet up with the changing trend in the construction industry.

Lastly, we will not relent in taking calculated business risks when it comes to bidding for bigger government contracts and taking on new business challenges and new business frontiers.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Renting of Office Facility in New York City: Completed
  • Conducting Feasibility Studies: Completed
  • Generating capital from the CEO and Business Partners: Completed
  • Applications for Loan from our Bankers: In Progress
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents (Tenancy Agreements et al), and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Acquiring of heavy duty construction equipment: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry (networking and membership of relevant construction bodies): Completed.

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Examples

Construction Business Plan

sample home building business plan

Whatever construction work you do whether it be commercial construction, landscaping , maintenance or building construction, your services alone won’t be enough to attract investors and clients. With a business plan , companies will be able to attract potential investors to help get their company from the ground up. Construction companies in particular sometimes need investors to get their project up and running. How will they be able to do that? By presenting a construction business plan to them.

15+ Construction Business Plan Examples

1. construction management business plan.

Construction Management Business Plan

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2. Construction Repair Business Plan

Construction Repair Business Plan

3. Construction Manufacturer Business Plan

Construction Manufacturer Business Plan

4. Construction Business Plan Example

Construction Business Plan Example

5. Construction Start-up Business Plan

Construction Start-up Business Plan

6. Construction Carpenter Business Plan

Construction Carpenter Business Plan

7. Simple Construction Business Plan

Simple Construction Business Plan

8. Sample Construction Business Plan

Sample Construction Business Plan

9. General Construction Business Plan

General Construction Business Plan

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10. Construction Company Business Plan Example

Construction Company Business Plan Example

11. Sample Construction Business Plan

Sample Construction Business Plan Example

Size: 105 KB

12. Sustainable Construction Business Plan

Sustainable Construction Business Plan

13. Construction Program Business Plan

Construction Program Business Plan

14. Business Plan For Construction Company

Business Plan For Construction Company

Size: 966 KB

15. Construction Plan for a Startup Business

Construction Business Plan for a Startup Business

Size: 710 KB

16. Construction Management Business Plan

Construction Management Business Plans

Size: 141 KB

What is a Construction Business Plan?

A construction business plan is a blueprint for how a construction company runs their operations. It contains information about the company itself and the construction services it provides. This business plan also contains the goals of the construction company as well as the business strategies used to achieve them. Content of a construction business plan also include safety plans and business procedures. Like all business plans it serves as a guide for the construction company on how to navigate in the world of business.

How to Create a Construction Business Plan?

According to a recent graph by Statista, the total spending of the United States has been going upwards from 2011 onwards. This means a lot of money can go in your company’s way especially once you get a hold of investors through an impressive construction business plan.

1. Create an Introduction to your Business

Everything that is important has to have a proper introduction. To get started with your business plan you need to write an introduction about your construction business first. Similar to a proposal you need to make a formal and a good impression with your readers when presenting the plan to them. Write a summary of your company; how it started, what it does, and where they currently operate. Write about the services your business provides but don’t go into the details just yet. Make it intriguing enough to make your readers want to read on.

2. State The Truth

When you are writing your construction business plan always remember to be truthful. False claims on your business plan may impress your readers at first. But when the truth is uncovered it can result in your business having a bad reputation and that can spell doom for your company . So make sure all your words are facts that can be backed up.

3. Fact Check and Include Documentation

Keeping in line with the previous step, take the time to fact check all your statements . When you are stating things about your company especially when it involves money and confidential information, make sure they are backed up by concrete evidence. Provide documentation as well as further proof when you write about your projects in your business plan so that means including photos and construction blueprints.

4. Include Your Strategies

This step is especially important when you are a startup company. When making your construction business plan write about the strategies that you have in order to reach the goals of your company. You can write about your marketing and financial strategies for a start. Write about the assets you have that enable you to achieve your plans such as the general contractors you have under your employ for example. Making this part allows you readers to know how you plan on bringing your company up and whether you have the means to achieve it.

How long does it take to write a construction business plan?

Creating a well thought out business plan for your construction company can take months depending on the knowledge you have and the detail you dedicate into making it.

How long should a construction business plan be?

A well written construction plan should take about 15 minutes to skim. In that time you should be able to convey everything important about your construction company. If it takes longer to read try to rework your plan by making it less wordy.

Who is the one who creates the construction business plan?

People who have a key position in the construction company are the ones who should be involved in creating the business plan . Somewhat such as the founder or CEO should be the one who usually prepares it but they can also be assisted by consultants with relevant knowledge.

Your construction business plan serves as a written blueprint on how to run your company. Give it a lot of thought when you are writing it down especially when you are going to use it to attract investors . With a well made plan you will be able to get even the most hesitant investors to work with your company. And with their help the clients will also be drawn to the company leading to more business and profit.

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Simple Business Plan Template (2024)

Krista Fabregas

Updated: May 4, 2024, 4:37pm

Simple Business Plan Template (2024)

Table of Contents

Why business plans are vital, get your free simple business plan template, how to write an effective business plan in 6 steps, frequently asked questions.

While taking many forms and serving many purposes, they all have one thing in common: business plans help you establish your goals and define the means for achieving them. Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small business. By following this step-by-step process, you might even uncover a few alternate routes to success.

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Whether you’re a first-time solopreneur or a seasoned business owner, the planning process challenges you to examine the costs and tasks involved in bringing a product or service to market. The process can also help you spot new income opportunities and hone in on the most profitable business models.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. However, if you’re seeking startup funding or partnership opportunities, you’ll need a write a business plan that details market research, operating costs and revenue forecasting. Whichever startup category you fall into, if you’re at square one, our simple business plan template will point you down the right path.

Copy our free simple business plan template so you can fill in the blanks as we explore each element of your business plan. Need help getting your ideas flowing? You’ll also find several startup scenario examples below.

Download free template as .docx

Whether you need a quick-launch overview or an in-depth plan for investors, any business plan should cover the six key elements outlined in our free template and explained below. The main difference in starting a small business versus an investor-funded business is the market research and operational and financial details needed to support the concept.

1. Your Mission or Vision

Start by declaring a “dream statement” for your business. You can call this your executive summary, vision statement or mission. Whatever the name, the first part of your business plan summarizes your idea by answering five questions. Keep it brief, such as an elevator pitch. You’ll expand these answers in the following sections of the simple business plan template.

  • What does your business do? Are you selling products, services, information or a combination?
  • Where does this happen? Will you conduct business online, in-store, via mobile means or in a specific location or environment?
  • Who does your business benefit? Who is your target market and ideal customer for your concept?
  • Why would potential customers care? What would make your ideal customers take notice of your business?
  • How do your products and/or services outshine the competition? What would make your ideal customers choose you over a competitor?

These answers come easily if you have a solid concept for your business, but don’t worry if you get stuck. Use the rest of your plan template to brainstorm ideas and tactics. You’ll quickly find these answers and possibly new directions as you explore your ideas and options.

2. Offer and Value Proposition

This is where you detail your offer, such as selling products, providing services or both, and why anyone would care. That’s the value proposition. Specifically, you’ll expand on your answers to the first and fourth bullets from your mission/vision.

As you complete this section, you might find that exploring value propositions uncovers marketable business opportunities that you hadn’t yet considered. So spend some time brainstorming the possibilities in this section.

For example, a cottage baker startup specializing in gluten-free or keto-friendly products might be a value proposition that certain audiences care deeply about. Plus, you could expand on that value proposition by offering wedding and other special-occasion cakes that incorporate gluten-free, keto-friendly and traditional cake elements that all guests can enjoy.

sample home building business plan

3. Audience and Ideal Customer

Here is where you explore bullet point number three, who your business will benefit. Identifying your ideal customer and exploring a broader audience for your goods or services is essential in defining your sales and marketing strategies, plus it helps fine-tune what you offer.

There are many ways to research potential audiences, but a shortcut is to simply identify a problem that people have that your product or service can solve. If you start from the position of being a problem solver, it’s easy to define your audience and describe the wants and needs of your ideal customer for marketing efforts.

Using the cottage baker startup example, a problem people might have is finding fresh-baked gluten-free or keto-friendly sweets. Examining the wants and needs of these people might reveal a target audience that is health-conscious or possibly dealing with health issues and willing to spend more for hard-to-find items.

However, it’s essential to have a customer base that can support your business. You can be too specialized. For example, our baker startup can attract a broader audience and boost revenue by offering a wider selection of traditional baked goods alongside its gluten-free and keto-focused specialties.

4. Revenue Streams, Sales Channels and Marketing

Thanks to our internet-driven economy, startups have many revenue opportunities and can connect with target audiences through various channels. Revenue streams and sales channels also serve as marketing vehicles, so you can cover all three in this section.

Revenue Streams

Revenue streams are the many ways you can make money in your business. In your plan template, list how you’ll make money upon launch, plus include ideas for future expansion. The income possibilities just might surprise you.

For example, our cottage baker startup might consider these revenue streams:

  • Product sales : Online, pop-up shops , wholesale and (future) in-store sales
  • Affiliate income : Monetize blog and social media posts with affiliate links
  • Advertising income : Reserve website space for advertising
  • E-book sales : (future) Publish recipe e-books targeting gluten-free and keto-friendly dessert niches
  • Video income : (future) Monetize a YouTube channel featuring how-to videos for the gluten-free and keto-friendly dessert niches
  • Webinars and online classes : (future) Monetize coaching-style webinars and online classes covering specialty baking tips and techniques
  • Members-only content : (future) Monetize a members-only section of the website for specialty content to complement webinars and online classes
  • Franchise : (future) Monetize a specialty cottage bakery concept and sell to franchise entrepreneurs

Sales Channels

Sales channels put your revenue streams into action. This section also answers the “where will this happen” question in the second bullet of your vision.

The product sales channels for our cottage bakery example can include:

  • Mobile point-of-sale (POS) : A mobile platform such as Shopify or Square POS for managing in-person sales at local farmers’ markets, fairs and festivals
  • E-commerce platform : An online store such as Shopify, Square or WooCommerce for online retail sales and wholesale sales orders
  • Social media channels : Facebook, Instagram and Pinterest shoppable posts and pins for online sales via social media channels
  • Brick-and-mortar location : For in-store sales , once the business has grown to a point that it can support a physical location

Channels that support other income streams might include:

  • Affiliate income : Blog section on the e-commerce website and affiliate partner accounts
  • Advertising income : Reserved advertising spaces on the e-commerce website
  • E-book sales : Amazon e-book sales via Amazon Kindle Direct Publishing
  • Video income : YouTube channel with ad monetization
  • Webinars and online classes : Online class and webinar platforms that support member accounts, recordings and playback
  • Members-only content : Password-protected website content using membership apps such as MemberPress

Nowadays, the line between marketing and sales channels is blurred. Social media outlets, e-books, websites, blogs and videos serve as both marketing tools and income opportunities. Since most are free and those with advertising options are extremely economical, these are ideal marketing outlets for lean startups.

However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers and magazines. You can include these advertising costs in your simple business plan template to help build a marketing plan and budget.

sample home building business plan

5. Structure, Suppliers and Operations

This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and responsibilities, supplier logistics and day-to-day operations. Also, include any certifications or permits needed to launch your enterprise in this section.

Our cottage baker example might use a structure and startup plan such as this:

  • Business structure : Sole proprietorship with a “doing business as” (DBA) .
  • Permits and certifications : County-issued food handling permit and state cottage food certification for home-based food production. Option, check into certified commercial kitchen rentals.
  • Roles and responsibilities : Solopreneur, all roles and responsibilities with the owner.
  • Supply chain : Bulk ingredients and food packaging via Sam’s Club, Costco, Amazon Prime with annual membership costs. Uline for shipping supplies; no membership needed.
  • Day-to-day operations : Source ingredients and bake three days per week to fulfill local and online orders. Reserve time for specialty sales, wholesale partner orders and market events as needed. Ship online orders on alternating days. Update website and create marketing and affiliate blog posts on non-shipping days.

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6. Financial Forecasts

Your final task is to list forecasted business startup and ongoing costs and profit projections in your simple business plan template. Thanks to free business tools such as Square and free marketing on social media, lean startups can launch with few upfront costs. In many cases, cost of goods, shipping and packaging, business permits and printing for business cards are your only out-of-pocket expenses.

Cost Forecast

Our cottage baker’s forecasted lean startup costs might include:

Business Need Startup Cost Ongoing Cost Source

Gross Profit Projections

This helps you determine the retail prices and sales volume required to keep your business running and, hopefully, earn income for yourself. Use product research to spot target retail prices for your goods, then subtract your cost of goods, such as hourly rate, raw goods and supplier costs. The total amount is your gross profit per item or service.

Here are some examples of projected gross profits for our cottage baker:

Product Retail Price (Cost) Gross Profit

Bottom Line

Putting careful thought and detail in a business plan is always beneficial, but don’t get so bogged down in planning that you never hit the start button to launch your business . Also, remember that business plans aren’t set in stone. Markets, audiences and technologies change, and so will your goals and means of achieving them. Think of your business plan as a living document and regularly revisit, expand and restructure it as market opportunities and business growth demand.

Is there a template for a business plan?

You can copy our free business plan template and fill in the blanks or customize it in Google Docs, Microsoft Word or another word processing app. This free business plan template includes the six key elements that any entrepreneur needs to consider when launching a new business.

What does a simple business plan include?

A simple business plan is a one- to two-page overview covering six key elements that any budding entrepreneur needs to consider when launching a startup. These include your vision or mission, product or service offering, target audience, revenue streams and sales channels, structure and operations, and financial forecasts.

How can I create a free business plan template?

Start with our free business plan template that covers the six essential elements of a startup. Once downloaded, you can edit this document in Google Docs or another word processing app and add new sections or subsections to your plan template to meet your specific business plan needs.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and logistics, website platforms, payment systems, side-gig and affiliate income, and multichannel marketing. Krista holds a bachelor's degree in English from The University of Texas at Austin and held senior positions at NASA, a Fortune 100 company, and several online startups.

How to Write a Business Plan Outline in 9 Steps (Example Included!)

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Starting a business often begins with writing a business plan , especially if you need funding . It acts as a roadmap, guiding you through each stage of launching and managing your company, and it presents a clear, compelling case to potential investors and partners. But here's the thing: not everyone finds this step intuitive. That's where a business plan outline can be incredibly helpful.

Creating a detailed business plan outline helps you organize your thoughts and ensure you cover all the key aspects of your business strategy. Plus, it might be just what you need to overcome that blank page and start typing.

Below, you'll find an easy-to-follow guide on how to craft your business plan outline, and an example to show you what it should look like.

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What is an outline of a business plan?

Think of a business plan outline as the skeleton of your entire business plan. It gives a high-level overview of the main sections you'll need to flesh out later. It's not the final document but a crucial step in getting you there.

Simply put, it's like creating a detailed table of contents for your business plan, showing you exactly what information to include and how everything fits together. A well-structured business plan outline also helps you plan things ahead, saving time and effort.

Writing a business plan outline in 9 steps

Follow these steps to build your business plan outline and learn exactly what each section should include.

(Bear in mind that every business plan is unique, tailored to the specific needs and goals of the business. While the structure below is common, the order of sections may vary—only the executive summary will always come first.)

1. Executive summary

Imagine you have just 60 seconds to convince someone to invest in your business. That's the essence of a strong executive summary. Although it appears first on your business plan, this section is often written last because it sums up the entire plan. Think of it as your elevator pitch . This section gives a quick overview of your entire business plan, highlighting key points that grab the reader's attention.

Keep it clear and concise. Start with a brief overview of your business, including its name and what it offers. Summarize your mission statement and objectives, and don’t forget to mention crucial aspects like financial projections and competitive advantages.

2. Company description

Here's where you provide detailed information about your company. Begin with the business name and location. Describe the legal structure (e.g., sole proprietorship, partnership, corporation) and ownership. If your business already exists, share a brief history.

For new ventures, explain the business's nature and the problems you aim to solve. Go into more detail about your vision and mission statements, outlining your goals and the principles guiding your business. This section helps potential investors and stakeholders grasp your company’s identity and purpose.

3. Market research and analysis

This section shares insights into your company’s industry. Start with a landscape analysis to give an overview of the market, including its size, growth rate, and key players.

Next, define your target market and customer demographics—age, location, income, and interests—detailing who your ideal customers are. Identify market needs and trends your business will address, and highlight customer pain points your product or service aims to solve.

Consider conducting a SWOT analysis to evaluate your business's strengths, weaknesses, opportunities, and threats, and gain a strategic view of where your business stands in the competitive landscape.

4. Organization and management

Describe how your business is structured and who runs it. Outline the organizational structure, and if helps, include a chart. Introduce the leadership team and key personnel, highlighting their qualifications and roles. If you have a board of directors, mention them and briefly explain their involvement.

Then, outline your production processes, detailing how your product or service is (or will be) created—from sourcing materials to delivery—to give a comprehensive view of your operational capabilities.

5. Products and services

This section of your business plan outline is crucial for showing potential investors what makes your products and services unique and valuable.

Clearly describe what your business offers, emphasizing your unique selling propositions (USPs) and the benefits and features that set you apart from the competition. Talk about the product life cycle, including any plans for future updates.

If your business holds any intellectual property or proprietary technologies, detail them here to underscore your competitive advantages.

6. Marketing strategy

Having a fantastic product or service is just half the battle. The marketing plan section should outline how you'll reach your target market and convert them into customers.

Begin with market positioning and branding, explaining how you want your brand perceived. Detail your marketing and promotional strategies, including specific tactics to reach your target audience.

Discuss your sales strategy, focusing on how you'll convert leads into customers. Lastly, include your pricing strategy and provide a sales forecast, projecting your expected revenue over a certain period.

7. Operations plan

Here, the goal is to give a detailed overview of the physical and logistical aspects of your company. Start with the business location and facilities, describing where it operates and any significant physical assets. Detail the technology and equipment needed for daily operations.

Briefly describe your supply chain and logistics processes to illustrate how you manage inventory, procurement, and distribution. Finish it by outlining your production process and quality control measures to ensure your products or services consistently meet high standards.

8. Financial plan

Use this section of the business plan to show how your company will succeed financially. Include financial projections like income statements and cash flow statements. Specify how much capital you need and how you plan to use it, discussing funding sources.

Conduct a break-even analysis to estimate when your business will become profitable. Be transparent and address any financial risks and assumptions, outlining how you plan to mitigate them.

9. Appendices and exhibits

In this section, include any additional information that supports your business plan. This might be resumes of key personnel to highlight your team's expertise and experience, or even legal documents and agreements.

Include market research data and surveys to back up your market analysis. Add financial statements for a detailed look at your financial plan. Also, provide detailed product specifications to give a clear understanding of your products and services.

Here's a business plan outline example

Not quite there yet? Take a look at this business plan outline example—it will make everything clear for you.

3.1 Executive Summary

  • Overview of the business
  • Key points of the business plan

3.2 Company Description

  • Business name and location
  • History and nature of the business
  • Legal structure and ownership
  • Vision and mission statement

3.3 Market Research and Analysis

  • Industry analysis
  • Target market and customer demographics
  • Market needs, trends
  • Customer pain points
  • SWOT analysis

3.4 Organization and Management

  • Organizational structure
  • Leadership team and key personnel
  • Roles and responsibilities
  • Board of directors (if applicable)
  • Production processes

3.5 Products and Services

  • Description of products or services offered
  • Unique selling propositions, benefits, features
  • Product lifecycle and development plans
  • Intellectual property and proprietary technologies

3.6 Marketing Strategy

  • Market positioning and branding
  • Marketing and promotional strategies
  • Sales strategy and tactics
  • Pricing strategy and sales forecast

3.7 Operations Plan

  • Business location and facilities
  • Technology and equipment
  • Supply chain and logistics
  • Production process and quality control

3.8 Financial Plan

  • Financial projections (income statements, balance sheets, cash flow statements)
  • Funding requirements and sources
  • Break-even analysis
  • Financial risks and assumptions

3.9 Appendices and Exhibits (if applicable)

  • Supporting documents and additional information
  • Resumes of key personnel
  • Legal documents and agreements
  • Market research data and surveys
  • Financial Statements
  • Detailed Product Specifications

Bonus tips on how to write a winning business plan

Once you've done your business plan outline, it's time to fill in the gaps and craft a winning business plan. Here are some bonus tips to keep in mind:

  • Tailor it to fit your business : Customize sections to meet industry-specific needs and highlight what makes your business unique.
  • Keep it clear and concise : Use straightforward language and support your points with data to ensure easy understanding and avoid any confusion.
  • Set actionable and realistic goals : Define measurable objectives with clear timelines and milestones to track your progress.
  • Update regularly : Keep your plan dynamic by making regular updates to reflect changes in goals, market conditions, and strategies.
  • Seek feedback : Gain insights from mentors and advisors to refine your plan.

Read this next: How to Start a Business in 8 Steps: A Comprehensive Guide from Concept to Launch

sample home building business plan

Construction Business Plans

Building construction business plan.

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Construction Inspection Business Plan

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Construction Manufacturer Business Plan

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Construction Repair Business Plan

HodgePodge Sealcoating Company repairs, fills, and reseals residential asphalt paved surfaces.

Formwork Construction Business Plan

Concrete Fabricators will take advantage of the current building boom, and become the premier concrete formwork provider in Oklahoma.

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Remodeling Business Plan

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Residential Remodeling Business Plan

Anywhere Remodeling is a full-service remodeling contractor.

You know how to design floor-plans, install drywall, lay down concrete, and whatever else it takes to build a home or office building. But do you know how to make an effective business plan? Luckily you can spend more time designing and building and less time planning, by starting with one of our construction business sample plans. Download and start building your business today.

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  • Air conditioning system suppliers Leads in Moscow Oblast
  • Furniture wholesalers Leads in Moscow Oblast
  • Outdoor clothing and equipment shops Leads in Moscow Oblast
  • Kitchen furniture stores Leads in Moscow Oblast
  • Children's furniture stores Leads in Moscow Oblast
  • Furniture Manufacturers Leads in Moscow Oblast
  • Bedding stores Leads in Moscow Oblast
  • Mattress stores Leads in Moscow Oblast
  • Foam rubber suppliers Leads in Moscow Oblast
  • Garden Furniture Stores Leads in Moscow Oblast
  • Sewing shops Leads in Moscow Oblast
  • Cabinet makers Leads in Moscow Oblast
  • Upholstery shops Leads in Moscow Oblast
  • Grill stores Leads in Moscow Oblast
  • Medical technology manufacturers Leads in Moscow Oblast
  • Professional services Leads in Moscow Oblast
  • Tourist information centers Leads in Moscow Oblast
  • Dive shops Leads in Moscow Oblast
  • Horseback riding services Leads in Moscow Oblast
  • Used appliance stores Leads in Moscow Oblast
  • Used office furniture stores Leads in Moscow Oblast
  • Two Wheeler Dealers Leads in Moscow Oblast
  • Beach clothing stores Leads in Moscow Oblast
  • Bed shops Leads in Moscow Oblast
  • Used auto parts stores Leads in Moscow Oblast
  • Used truck dealers Leads in Moscow Oblast
  • Hot tub stores Leads in Moscow Oblast
  • Electronics wholesalers Leads in Moscow Oblast
  • Trailer dealers Leads in Moscow Oblast
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  • Lawn mower stores Leads in Moscow Oblast
  • Store equipment suppliers Leads in Moscow Oblast
  • Special education schools Leads in Moscow Oblast
  • Diagnostic centers Leads in Moscow Oblast
  • Studying centers Leads in Moscow Oblast
  • Senior citizen centers Leads in Moscow Oblast
  • Veterinarians Leads in Moscow Oblast
  • Christian churches Leads in Moscow Oblast
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  • Presbyterian churches Leads in Moscow Oblast
  • Senior high schools Leads in Moscow Oblast
  • International schools Leads in Moscow Oblast
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  • Massage therapists Leads in Moscow Oblast
  • Road Contractors Leads in Moscow Oblast
  • Plasterers Leads in Moscow Oblast
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  • Ready mix concrete suppliers Leads in Moscow Oblast
  • Utility contractors Leads in Moscow Oblast
  • Photographies Leads in Moscow Oblast
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  • Double glazing installers Leads in Moscow Oblast
  • Drainage services Leads in Moscow Oblast
  • Architectural designers Leads in Moscow Oblast
  • Marble suppliers Leads in Moscow Oblast
  • Tool rental services Leads in Moscow Oblast
  • Containers suppliers Leads in Moscow Oblast
  • Funeral directors Leads in Moscow Oblast
  • Copy shops Leads in Moscow Oblast
  • Screen printing supply stores Leads in Moscow Oblast
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  • 3D printing services Leads in Moscow Oblast
  • Screen printers Leads in Moscow Oblast
  • Sticker Manufacturers Leads in Moscow Oblast
  • Invitation printing services Leads in Moscow Oblast
  • Embroidery shops Leads in Moscow Oblast
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  • Wedding photographers Leads in Moscow Oblast
  • Interior architect offices Leads in Moscow Oblast
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  • Magazine stores Leads in Moscow Oblast
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  • Political party offices Leads in Moscow Oblast
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  • Hot dog restaurants Leads in Moscow Oblast
  • Army facilities Leads in Moscow Oblast
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  • High ropes courses Leads in Moscow Oblast
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  • Memorial parks Leads in Moscow Oblast
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  • Monument makers Leads in Moscow Oblast
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  • Cremation Grounds Leads in Moscow Oblast
  • Alternative medicine practitioners Leads in Moscow Oblast
  • Tea Wholesalers Leads in Moscow Oblast
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  • Air compressor suppliers Leads in Moscow Oblast
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  • Employment search services Leads in Moscow Oblast
  • Internet shops Leads in Moscow Oblast
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  • Computer Wholesalers Leads in Moscow Oblast
  • Chinaware stores Leads in Moscow Oblast
  • Orthodontists Leads in Moscow Oblast
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  • Gated communities Leads in Moscow Oblast
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  • Indian takeaways Leads in Moscow Oblast
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  • Dental implants periodontists Leads in Moscow Oblast
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  • Shop supermarket furniture stores Leads in Moscow Oblast
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  • Boarding schools Leads in Moscow Oblast
  • Piano repair services Leads in Moscow Oblast
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  • Sofa stores Leads in Moscow Oblast
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  • Medical spas Leads in Moscow Oblast
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  • Kinesiologists Leads in Moscow Oblast
  • Pentecostal churches Leads in Moscow Oblast
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  • Beauty Products Wholesalers Leads in Moscow Oblast
  • Military bases Leads in Moscow Oblast
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  • Logistics Leads in Moscow Oblast
  • Eyelash salons Leads in Moscow Oblast
  • Cosmetic Products Manufacturers Leads in Moscow Oblast
  • Heating oil suppliers Leads in Moscow Oblast
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  • Cooking schools Leads in Moscow Oblast
  • After school programs Leads in Moscow Oblast
  • Racecourses Leads in Moscow Oblast
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  • Aromatherapy supply stores Leads in Moscow Oblast
  • Tool manufacturers Leads in Moscow Oblast
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  • Wool stores Leads in Moscow Oblast
  • Occupational medical physicians Leads in Moscow Oblast
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  • Real estate appraisers Leads in Moscow Oblast
  • Hotel supply stores Leads in Moscow Oblast
  • Electrical substations Leads in Moscow Oblast
  • Auto wreckers Leads in Moscow Oblast
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  • First aid stations Leads in Moscow Oblast
  • Construction machine dealers Leads in Moscow Oblast
  • Tattoo artists Leads in Moscow Oblast
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  • Temp agencies Leads in Moscow Oblast
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  • Alcoholic beverage wholesalers Leads in Moscow Oblast
  • Diesel engine repair services Leads in Moscow Oblast
  • Commercial refrigerator suppliers Leads in Moscow Oblast
  • Department of motor vehicles Leads in Moscow Oblast
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  • Self defense schools Leads in Moscow Oblast
  • Indoor cyclings Leads in Moscow Oblast
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  • Curtain supplier and makers Leads in Moscow Oblast
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  • Urologists Leads in Moscow Oblast
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  • Elevator Manufacturers Leads in Moscow Oblast
  • Ranches Leads in Moscow Oblast
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  • Appliances customer services Leads in Moscow Oblast
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  • Disability equipment suppliers Leads in Moscow Oblast
  • Islands Leads in Moscow Oblast
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  • Herb shops Leads in Moscow Oblast
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  • Veterinary cares Leads in Moscow Oblast
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  • Emergency veterinarian services Leads in Moscow Oblast
  • Pet funeral services Leads in Moscow Oblast
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  • Glass cutting services Leads in Moscow Oblast
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  • Insulation contractors Leads in Moscow Oblast
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  • Outdoor activity organisers Leads in Moscow Oblast
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  • Business administration services Leads in Moscow Oblast
  • Rest stops Leads in Moscow Oblast
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  • Public medical centers Leads in Moscow Oblast
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  • Bus depots Leads in Moscow Oblast
  • Sightseeing Tour Operators Leads in Moscow Oblast
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  • Honey farms Leads in Moscow Oblast
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  • Computer Networking Centers Leads in Moscow Oblast
  • Fruit and vegetable processings Leads in Moscow Oblast
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  • Gift basket stores Leads in Moscow Oblast
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  • Science museums Leads in Moscow Oblast
  • Pine furniture shops Leads in Moscow Oblast
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  • Neurologists Leads in Moscow Oblast
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  • Camera repair shops Leads in Moscow Oblast
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  • Portrait studios Leads in Moscow Oblast
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  • Japanese grocery stores Leads in Moscow Oblast
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  • Historical place museums Leads in Moscow Oblast
  • Castles Leads in Moscow Oblast
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  • Ruins Leads in Moscow Oblast
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  • Eastern Orthodox Churches Leads in Moscow Oblast
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  • Hawaiian restaurants Leads in Moscow Oblast
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  • Governments Leads in Moscow Oblast
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  • Photography studios Leads in Moscow Oblast
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  • Exhibits Leads in Moscow Oblast
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  • Woods Leads in Moscow Oblast
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Watch CBS News

Project 2025 would overhaul the U.S. tax system. Here's how it could impact you.

By Aimee Picchi

Edited By Anne Marie Lee

Updated on: July 12, 2024 / 1:42 PM EDT / CBS News

Project 2025, a 900-page blueprint for the next Republican president, is gaining attention for its proposals to overhaul the federal government. Among those changes: a major restructuring of the U.S. tax code. 

President Biden and Democrats have been citing Project 2025 in recent weeks as they seek to highlight what could be in store if former President Donald Trump wins at the polls in November and retakes the White House in January.  Many of the blueprint's proposals touch on economic matters that could impact millions of Americans, as well as social issues such as abortion and diversity, equity and inclusion, or DEI, topics. 

Project 2025 , overseen by the conservative Heritage Foundation, is spearheaded by two ex-Trump administration officials: project director Paul Dans, who was chief of staff at the Office of Personnel Management, and Spencer Chretien, former special assistant to Trump who is now the project's associate director.

Trump: "I know nothing about Project 2025"

For his part, Trump has distanced himself from the blueprint, writing on Truth Social early Thursday that he isn't familiar with the plan. His campaign has proposed its own goals through " Agenda 47 ," which tends to focus on social and political issues such as homelessness and immigration rather than taxes.

"I know nothing about Project 2025. I have not seen it, have no idea who is in charge of it, and, unlike our very well received Republican Platform, had nothing to do with it," Trump wrote  Thursday.

His pushback comes after Heritage Foundation President Kevin Roberts opined in a podcast interview that the U.S. is "in the process of the second American Revolution, which will remain bloodless if the left allows it to be." 

According to Project 2025's website, its goal is to have "a governing agenda and the right people in place, ready to carry this agenda out on day one of the next conservative administration."

A shift to two brackets

The tax proposals of Project 2025, if enacted, would likely affect every adult in the U.S. by tossing out the nation's long-standing system of multiple tax brackets, which is designed to help lower-income Americans pay a smaller share of their income in federal taxes compared with middle- or high-income workers. 

Currently, there are seven tax brackets — 10%, 12%, 22%, 24%, 32%, 35% and 37% — with each based on income thresholds. For instance, a married couple pays 10% in federal income tax on their first $23,200 of income, and then 12% on earnings from $23,201 to $94,300, and so on. Married couples need to earn over $487,450 this year to hit the top tax rate of 37%.

Project 2025 argues that the current tax system is too complicated and expensive for taxpayers to navigate. To remedy those problems, it proposes just two tax rates: a 15% flat tax for people earning up to about $168,000, and a 30% income tax for people earning above that, according to the document . It also proposes eliminating "most deductions, credits and exclusions," although the blueprint doesn't specify which ones would go and which would stay.

"The federal income tax system is progressive, and people who make more money pay a higher marginal tax rate than people who make less money," Brendan Duke, senior director for economic policy at the left-leaning Center for American Progress, told CBS MoneyWatch. "Conservatives look at that, and they feel that that's unfair to the wealthy to ask them to pay a greater share of their income in taxes than lower income families."

The Project 2025 proposal "is a dramatic reform of how we fund our government, where we ask the wealthy to pitch in more than lower income families," he said. "This shifts taxes from the wealthy to the middle class, full stop."

Project 2025 didn't immediately respond to a request for comment. 

In a statement, the Heritage Foundation said it will ultimately be up to the next conservative president do decide which recommendations to implement, adding "As we've been saying for more than two years now, Project 2025 does not speak for any candidate or campaign." 

Project 2025's tax rates 

Millions of low- and middle-class households would likely face significantly higher taxes under the Project 2025's proposals.

He estimated that a middle-class family with two children and an annual income of $100,000 would pay $2,600 in additional federal income tax if they faced a 15% flat tax on their income due to the loss of the 10% and 12% tax brackets. If the Child Tax Credit were also eliminated, they would pay an additional $6,600 compared with today's tax system, Duke said. 

By comparison, a married couple with two children and earnings of $5 million a year would enjoy a $325,000 tax cut, he estimated. 

"That 15% bracket is a very big deal in terms of raising taxes on middle-class families," Duke said. 

Millions of U.S. households earning less than $168,000 would likely face higher taxes with a 15% rate. Currently, the bottom half of American taxpayers, who earn less than $46,000 a year, pay an effective tax rate of 3.3%  — which reflects their income taxes after deductions, tax credits and other benefits. 

Among other tax and economic changes proposed by Project 2025: 

  • Cutting the corporate tax rate to 18% from its current 21%, which was enacted in 2017's Tax Cuts and Jobs Act. Prior to the TCJA, the corporate tax rate stood at 35%.
  • Reducing the capital gains tax to 15%. Currently, high-income earners pay a tax of 20% on their capital gains.
  • Eliminating credits for green energy projects created by the Inflation Reduction Act.
  • Considering the introduction of a U.S. consumption tax, such as a national sales tax. 
  • Eliminating the Federal Reserve's mandate to maintain full employment in the labor market.

To be sure, overhauling the tax system would require lawmakers to approve changes to the tax code, which could be difficult if either the House or Senate is controlled by the opposing party. For instance, Trump was able to get his Tax Cuts and Jobs Act passed by a Republican-led Congress, even though no Democrats voted in support of the measure. 

What does Trump say about taxes?

Trump hasn't yet proposed any concrete tax plans, but analysts expect that he would seek to extend the tax cuts enacted through the TCJA if he is reelected. Currently, many of the provisions of the TCJA, including lower tax brackets, are set to expire at the end of 2025. 

One likely scenario if Trump is reelected is that Republican lawmakers would extend the TJCA's tax cuts, while seeking to fund the reduction in tax revenue by repealing some of the clean energy and climate-related provisions in the Biden administration's Inflation Reduction Act, according to an April report from Oxford Economics. Lawmakers could also seek to cut spending on social benefits to offset the tax cuts, the research firm added.

Trump has suggested a proposal to create a 10% tariff for all imports and a 60% tariff for Chinese imports that could raise enough money to eliminate the federal income tax. 

Tax experts also say the math doesn't work out because money raised from new tariffs would fall far short of replacing the more than $2 trillion in individual income taxes collected by the IRS each year. Consumers are also likely to pay more in higher costs for imported consumer goods and services with tariffs tacked onto them, experts note.

"A tariff is a consumption tax, and there is a throughline between [Project 2025's] tax reform and what Trump has talked about, getting rid of taxes in favor of a consumption tax," Duke noted. 

  • Donald Trump

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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Chancellor Rachel Reeves is taking immediate action to fix the foundations of our economy

In her first speech as Chancellor, Rachel Reeves laid out plans to rebuild Britain and make every part of the country better off.

Rachel Reeves in front of the Union Jack.

Good morning.

Last week, the British people voted for change.

And over the last 72 hours I have begun the work necessary to deliver on that mandate.

Our manifesto was clear:

Sustained economic growth is the only route to the improved prosperity that country needs and the living standards of working people.

Where previous governments have been unwilling to take the difficult decisions to deliver growth…

… or have waited too long to act…

… I will not hesitate.

Growth [political content removed]. It is now our national mission.

There is no time to waste.

This morning I want to outline the first steps [political content removed] taken to fix the foundations of our economy.

So we can rebuild Britain and make every part of our country better off.

But first, let me address the inheritance.

I have repeatedly warned that whoever won the general election would inherit the worst set of circumstances since the Second World War.

What I have seen in the past 72 hours has only confirmed that.

Our economy has been held back by decisions deferred and decisions ducked.

Political self-interest put ahead of the national interest.

A government that put party first, country second.

We face the legacy of fourteen years of chaos and economic irresponsibility.  

That is why over the weekend I instructed Treasury officials to provide an assessment of the state of our spending inheritance so that I can understand the scale of the challenge. And I will present this to Parliament before the summer recess. 

This will be separate from a Budget that will be held later this year – and I will confirm the date of that Budget, alongside a forecast from the Office for Budget Responsibility, in due course.

All governments face difficult choices – and I will not shrink from those choices.

Those choices are made harder, however, by the absence of the economic growth necessary to not only balance the books but also to improve living standards.

New Treasury analysis that I requested over the weekend shows that, had the UK economy grown at the average rate of other OECD economies this last 13 years, our economy would have been over £140 billion larger.

This could have brought in an additional £58 billion in tax revenues in the last year alone. That’s money that could have revitalised our schools, our hospitals, and other public services.

Growth requires difficult choices – choices that previous governments have shied away from.

And it now falls to [political content removed] fix the foundations.

We have promised a new approach to growth – one fit for a changed world.

That approach will rest on three pillars – stability, investment, and reform.

Let me turn first to stability.

In the run-up to the general election, I set out the crucial first steps in our economic plans:

To deliver economic stability, so we can grow our economy and keep taxes, inflation and mortgages as low as possible.

And that commitment stands.

I emphasised this commitment in a meeting with the Governor of the Bank of England on Friday, and I will do the same when I meet the chair of the Office for Budget Responsibility this week.

These institutions are guarantors of our economic stability and I will not be playing games at their expense.

Over the weekend I made clear to Treasury officials that the manifesto commitments that we were elected on will be kept to and they will be delivered on.

That includes robust fiscal rules.

And it includes our commitments to no increases in National Insurance, and the basic, higher, or additional rates of Income Tax, or VAT.

Now I know there are some who will argue that the time for caution is past.

[Political content removed].

That a large majority in Parliament means we have the licence to row back on the principles of sound money and economic responsibility.

I know that many of you aren’t used to hearing this after recent years. But I believe that the promises that a party is elected on should be delivered on in government and we will do so.

We do not take lightly the trust of voters who have been burned too often by incompetence, irresponsibility, and recklessness.

And to investors and businesses who have spent fourteen years doubting whether Britain is a safe place to invest, then let me tell you:

After fourteen years, Britain has a stable government. A government that respects business, wants to partner with business, and is open for business.

In an uncertain world, Britain is a place to do business.

Let me turn to how we will unlock private investment that we so desperately need.

[Political content removed] …plans to launch a new National Wealth Fund, with a remit to invest – and so to catalyse private sector investment – in new and growing industries.

And in March, the former governor of the Bank of England, Mark Carney, agreed to lead a Taskforce on the establishment of a new National Wealth Fund.

I can tell you today that I have received the report from that Taskforce, and I will be announcing the next steps in short order.

Alongside investment must come reform.

Because the question is not whether we want growth, but how strong is our resolve – how prepared are we to make hard choices and face down the vested interests;

How willing, even, to risk short-term political pain to fix Britain’s foundations.

The story of the last fourteen years has been a refusal to confront the tough and responsible decisions that are demanded.

This government will be different.

And there is no time to waste.

Nowhere is decisive reform needed more urgently than in the case of our planning system.

Planning reform has become a byword for political timidity in the face of vested interests and a graveyard of economic ambition.

Our antiquated planning system leaves too many important projects getting tied up in years and years of red tape before shovels ever get into the ground.

We promised to put planning reform at the centre of our political argument – and we did.

We said we would grasp the nettle of planning reform – and we are doing so.

Today I can tell you that work is underway.

Over the weekend, I met with the Prime Minister and the Deputy Prime Minister to agree the urgent action needed to fix our planning system.

Today, alongside the Deputy Prime Minister, I am taking immediate action to deliver this [political content removed] government’s mission to kickstart economic growth;

And to take the urgent steps necessary to build the infrastructure that we need, including one and a half million homes over the next five years.

The system needs a new signal. This is that signal.

First, we will reform the National Planning Policy Framework, consulting on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets.

And, as of today, we are ending the absurd ban on new onshore wind in England. We will also go further and consult on bringing onshore wind back into the Nationally Significant Infrastructure Projects regime, meaning decisions on large developments will be taken nationally not locally.

Second, we will give priority to energy projects in the system to ensure they make swift progress…

… and we will build on the spatial plan for Energy by expanding this to other infrastructure sectors.  

Third, we will create a new taskforce to accelerate stalled housing sites in our country…

…beginning with Liverpool Central Docks, Worcester Parkway, Northstowe and Langley Sutton Coldfield, representing more than 14,000 homes.

Fourth, we will also support local authorities with 300 additional planning officers across the country.

Fifth, if we are to put growth at the centre of our planning system, that means changes not only to the system itself, but to the way that ministers use our powers for direct intervention.

The Deputy Prime Minister has said that when she intervenes in the economic planning system, the benefit of development will be a central consideration and that she will not hesitate to review an application where the potential gain for the regional and national economies warrant it.

… and I welcome her decision to recover two planning appeals already, for data centres in Buckinghamshire and in Hertfordshire.

To facilitate this new approach, the Deputy Prime Minister will also write to local mayors and the Office for Investment to ensure that any investment opportunity with important planning considerations that comes across their desks is brought to her attention and also to mine.

The Deputy Prime Minister will also write to Local Planning Authorities alongside the National Planning Policy Framework consultation, making clear what will now be expected of them…

…including universal coverage of local plans, and reviews of greenbelt boundaries. These will prioritise Brownfield and grey belt land for development to meet housing targets where needed.

And our golden rules will make sure the development this frees up will allow us to deliver thousands of the affordable homes too, including more for social rent.

Sixth, as well as unlocking new housing, we will also reform the planning system to deliver the infrastructure that our country needs.

Together, [political content removed] we will ask the Secretaries of State for Transport and Energy Security and Net Zero to prioritise decisions on infrastructure projects that have been sitting unresolved for far too long.

And finally, we will set out new policy intentions for critical infrastructure in the coming months, ahead of updating relevant National Policy Statements within the year.

I know that there will be opposition to this.

I’m not naïve to that;

And we must acknowledge that trade offs always exist: any development may have environmental consequences, place pressure on services, and rouse voices of local opposition.

But we will not succumb to a status quo which responds to the existence of trade-offs by always saying no, and relegates the national interest below other priorities.

We will make those tough decisions, to realise that mandate. 

Be in no doubt – we are going to get Britain building again.

We are going to get Britain’s economy growing again.

We will end the prevarication and make the necessary choices to fix the foundations:

We will introduce a modern industrial strategy, to create good work and drive investment in all of our communities.

We will reform our skills system, for a changing world of work.

We will tackle economic inactivity and get people back to work.

We will take on the hard work of reforming our public services, to make them fit for the future.

We will work closely with our national, regional and local leaders to power growth in every part of Britain.

And we will turn our attention to the pensions system, to drive investment in homegrown businesses and deliver greater returns to pension savers.

I know the voters’ trust cannot be repaid through slogans or gimmicks – only through action, only through delivery.

The Treasury I lead is proceeding on that basis.

I was appointed to this post less than 72 hours ago.

Upon my arrival, I told Treasury staff that the work starts straight away.

That work has begun.

I have commissioned and received economic analysis from HMT officials on the lost growth of the past 14 years, which I have set out today.

I have instructed Treasury officials to prepare an assessment of the state of our spending inheritance, to be presented to Parliament before the summer recess.

I have started working with the Prime Minister, to make the necessary preparations for the establishment of a Growth Mission Board, and that board will meet before summer recess, focused squarely on reviving our country’s economic growth and prosperity

I have established a new Growth Delivery Unit here, at the heart of  the Treasury.

I have received the recommendations of the National Wealth Fund Taskforce, and will shortly be announcing next steps.

There is much more to do.

More tough decisions to be taken.

You have put your trust in us.

And we will repay that trust.

The work towards a decade of national renewal has begun.

And we are just getting started.

Thank you very much.

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sample home building business plan

Elon Musk’s Plan to Put a Million Earthlings on Mars in 20 Years

SpaceX employees are working on designs for a Martian city, including dome habitats and spacesuits, and researching whether humans can procreate off Earth. Mr. Musk has volunteered his sperm.

Credit... Gica Tam

Supported by

Kirsten Grind

By Kirsten Grind

Reporting from San Francisco

  • Published July 11, 2024 Updated July 12, 2024

For more than two decades, Elon Musk has focused SpaceX , his rocket company, on his lifelong goal of reaching Mars.

Over the last year, he has also ramped up work on what will happen if he gets there.

Mr. Musk, 53, has directed SpaceX employees to drill into the design and details of a Martian city, according to five people with knowledge of the efforts and documents viewed by The New York Times. One team is drawing up plans for small dome habitats, including the materials that could be used to build them. Another is working on spacesuits to combat Mars’s hostile environment, while a medical team is researching whether humans can have children there. Mr. Musk has volunteered his sperm to help seed a colony, two people familiar with his comments said.

The initiatives, which are in their infancy, are a shift toward more concrete planning for life on Mars as Mr. Musk’s timeline has hastened. While he said in 2016 that it would take 40 to 100 years to have a self-sustaining civilization on the planet, Mr. Musk told SpaceX employees in April that he now expects one million people to be living there in about 20 years.

sample home building business plan

“There’s high urgency to making life multi-planetary,” he said, according to a publicly posted video of his remarks. “We’ve got to do it while civilization is so strong.”

Mr. Musk has long tried to defy the impossible and has often managed to beat tough odds. But his vision for life on Mars takes his seemingly limitless ambitions to their most extreme — and some might say absurdist — point. No one has ever set foot on the planet. NASA doesn’t expect to land humans on Mars until the 2040s. And if people get there, they will be greeted by a barren terrain, icy temperatures, dust storms, and air that is impossible to breathe.

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