The finances of opening your own construction company

Task # 1
– Market Research –
Your market will not just be Construction as an industry, but a niche within the broader market.
-Define what it is your company will provide as a good or service
-Put together research into the niche you are looking to compete in
What area of Construction? Who will your clients be?
-Look at equipment costs, labor rates, an overhead needed for your business
These will form basis for the first year’s operating costs
-Look at indexes to see if you can figure on what a project value might be for a simple project.
Put together a simple project and show a pro forma job cost

Put this into a document to show some basis for the assumptions you will be making in your business plan. This portion of the project should be 2-3 pages in length. Research is the foundation from which you plan is built!

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Task # 2
– Create a Business Plan –
Include the following:

1. Executive Summary
This is the total summary of the business plan. It’s like the resume for your plan, keep it to a page. Summarize your business’s product or service and how it will help your clients, what the target market is, your capital source, and financial highlights

2. Products and Services
Describe the business and what product or service you will be providing.

3. Market Analysis Summary
You need to know your target market—the types of customers you are looking for—and how it’s changing in the current and future economic environment.
Use this section to discuss your customers’ needs. How are you going to service them and possibly many of them at once?
You’ll also need to know who your competitors are and how you stack up against them—why are you sure there’s room for you in this market?

4. Strategy and Implementation Summary
Use this section to outline your marketing plan, your sales plan, and the other logistics involved in actually running your business. You’ll want to cover the technology you plan on using, your business location, facility
requirements, special equipment you might need.
Finally, you’ll want to outline the key metrics you’ll be tracking to make sure your business is headed in the right direction.

5. Company and Management Summary
This section is an overview of who you are.
It should describe the organization of your business, and the key members of the management team. This will help with knowing what lies ahead in the number of qualified people you are going to need to procure.

6. Brief Financial Plan
This section should include your basic projected revenues and first year’s expenses
A brief description of the assumptions you’re making with your projections.
Finally, you are raising money or taking out loans, you should highlight the money you need to launch the business.

This project should be 4-6 pages in length. The paper format should be 1” margins, single spaced, 12pt Calibri font.

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