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Construction Company Business Plan

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

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

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

Confused about how to write a business plan?

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

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

Let’s dive right in.

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 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.

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.

Download a Sample Construction Company Business Plan

So, ready to create a construction business plan from scratch but need more guidance? Look no further; download our free construction company business plan pdf and start writing.

It’s an advanced investor-friendly template that has been crafted with construction businesses in mind. It comes with step-by-step instructions and examples to assist you in developing your own business plan. Use this sample business plan as a guide.

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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

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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In all the stages involved in getting to choose out mutual partners to accomplish your real estate small business plan , or getting to hire out contractors, a construction business plan might be the savior. It helps you in making the essential steps in mapping out a strategic achievement of construction goals. This is accomplished by incorporating project management plan tools available for users’ disposal.

• Google Docs

• Apple Pages

• A brief history of your construction company
• The customers, suppliers, and needs you have
• A sheet summary of the growth of the company, including financial details
• A brief of your long-term and short-term goals
• Steps on how you will make profits.
• Planning leads to practical and faster achievements in any company
• It foresees the future
• It acts as an added strength to a business action plan for steady growth and prosperity
• It helps one be ready to face any unexpected situation that might crop up.

More in Plan Templates

Professional construction cover page template, standard construction cover page template, construction subcontractor agreement template, construction contractor agreement template, construction project timeline template, construction gantt chart template, construction project management template, construction material requisition template, construction bid comparison template, construction job costing template.

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• Sample Plans

Construction Business Plan

Ready to launch a successful construction business but need help figuring out where to start? No worries! Dive into this comprehensive construction business plan example to understand the essentials. Use our free template to get started on the right foot.

Starting and running your own construction company can be a rewarding venture, with growing demand for quality residential, commercial, and industrial projects.

But before you begin, you’ll need a clear business plan that highlights your vision , attracts investors, and sets you apart in the market.

Need help getting your plan?

This real-life construction business plan sample is here for your help and inspiration.

Construction business plan example

If you're launching a new construction company or expanding an existing one, this sample business plan provides you with valuable insights and actionable steps to build a solid strategy.

Let’s take a closer look at Skyline Builders & Contractors business plan example and start outlining the key elements of your plan.

1. Executive summary

Dallas-based Skyline Builders & Contractors is a construction company that specializes in producing excellent projects for the commercial, industrial, and residential sectors. Skyline wants to establish itself as a dependable partner in Texas' building industry by fusing cutting-edge construction techniques with environmentally responsible procedures.

From large commercial buildings and custom residences to specialized infrastructure and renovations, the firm manages a wide range of projects while guaranteeing the development of secure, creative, and useful spaces catered to the individual requirements of its clients.

The goal of Skyline is to exceed customer expectations by offering premium, sustainable construction solutions that prioritize excellence, safety, and innovation.

Market Opportunity

Residential homeowners, business developers, real estate investors, and government organizations are among the company's varied clientele.

As the need for green, sustainable solutions in the construction sector grows, Skyline is well-positioned to make use of its experience and draw in eco-aware customers.

Services offered

Custom house building, office and retail space development, industrial facilities, and public infrastructure projects are just a few of the many construction services that Skyline provides.

By putting quality, safety, and sustainability first, Skyline produces outcomes that satisfy customers and provide long-term

Marketing and sales strategy

To reach new clients and establish a strong reputation, Skyline will build a robust digital presence, leverage Google Ads, and directly reach out to developers, architects, and municipal agencies.

The company also plans to cultivate industry partnerships and encourage referrals, positioning itself as a reputable, client-focused builder in Dallas and the surrounding area.

Funding request

Skyline Builders & Contractors is looking for $750,000 to fund marketing campaigns, manpower, materials, and equipment purchases.

The company's first year of operations will be supported by this cash, which will allow it to build a competitive footprint and take on bigger projects that promote growth.

2. Company Overview

Reputable Dallas, Texas-based SkyLine Builders & Contractors is a full-service construction firm dedicated to producing top-notch commercial, industrial, and residential projects.

With a strong emphasis on sustainability, innovation, and client happiness, we specialize in designing places that represent the individual demands of our clients.

Our broad breadth of experience positions us as a flexible and reliable partner in the Texas construction industry, encompassing anything from custom houses to expansive commercial areas and municipal infrastructure.

By offering premium, environmentally friendly building solutions that prioritize safety, creativity, and excellence in each project we take on, we hope to surpass our clients' expectations.

Core values

• Client success
• Sustainability & innovation
• Integrity and transparency
• Precision and quality
• Efficiency business model

Skyline Builders & Contractors operates on a project-based business model, providing tailored construction services for each client’s unique needs.

Our revenue is generated through project fees based on the scale, complexity, and specific requirements of each build. We offer flexible pricing structures to accommodate both residential and commercial clients, enabling us to serve homeowners, real estate developers, municipal agencies, and industrial partners alike.

3. Market research

Residential homeowners, business developers, real estate investors, and government organizations are among the varied clientele that Skyline Builders & Contractors serves in Dallas.

Skyline is in a good position to draw in clients who are concerned about the environment and are searching for green building solutions because of the growing need for energy-efficient and sustainable construction.

Target market

Individuals seeking custom home builds or renovations with a focus on energy efficiency and susDevelopers of real estate that require office buildings, retail establishments, and other commercial facilities that adhere to contemporary design and functional requirements.

• Real estate investors: Those who concentrate on long-term, high-quality, sustainable investments that enhance their portfolios.
• Municipal and Government Agencies -  Public entities requiring infrastructure projects and municipal renovations, emphasizing safety, functionality, and community value.
• Environmentally Conscious Clients - Clients across all sectors who prioritize sustainable and energy-efficient construction solutions, align with Skyline’s commitment to green building practices.

SWOT analysis

4. Competitive analysis

In a competitive Dallas market with giants like Austin Commercial and Jacobs Engineering,  McCarthy Building Companies, Skyline Builders & Contractors stands out by delivering personalized service, sustainable practices, and client-focused solutions.

Key competitor

1. Austin Commercial

• Extensive portfolio across various project types
• Strong brand reputation in Texas with deep industry ties

Weaknesses 

• Larger size makes it less delicate and adaptable to unique client needs.
• Less emphasis on sustainable construction practices

2. Jacobs Engineering Group

• Known for handling large-scale, complex projects with high technical requirements.
• Global brand with considerable financial backing and resources.
• Focuses primarily on industrial and governmental projects, with less attention to smaller, customized builds.
•  Less personal service due to a more corporate approach.

3. McCarthy Building Companies

• Experienced in a wide range of projects
• Robust project management systems
• Standardized approach can make the client experience feel less personalized.
• Less emphasis on flexible, sustainable solutions.

Competitive edge

Skyline Builders & Contractors differentiates itself from these larger competitors through:

• Sustainable practices
• Customized project management:
• Versatility and flexibility
• Client-first approach

With this unique posture, Skyline is ready to compete successfully and attract customers in the Dallas construction industry who value sustainability, quality, and attentive service.

5. Services offered

Residential construction.

We build energy-efficient homes tailored to each client’s vision, combining modern design with sustainable materials. Skyline provides remodeling and expansions that improve the style, functionality, and sustainability of existing homes.

Commercial Construction

We create diverse and contemporary commercial spaces designed for sustainability and visual appeal. Our commercial solutions help businesses minimize environmental impact while creating productive and brand-aligned workplaces.

Industrial construction

Skyline constructs efficient, well-organized warehouses and distribution centers that support safe logistics and streamlined storage operations.

For industries needing specialized structures, like manufacturing plants, we offer custom-built solutions that adhere to specific industry standards and regulations.

Public and municipal projects

Partnering with municipal agencies, Skyline builds essential public infrastructure, including schools, community centers, and transportation hubs, all designed to meet community needs and uphold quality standards.

We also renovate public buildings to improve accessibility, energy efficiency, and functionality, enhancing spaces for the benefit of the community.

7. Management team

A skilled group with a wealth of knowledge in construction management, finance, customer relations, and project execution leads Skyline Builders & Contractors, which functions as a Limited Liability Company (LLC) .

Business owner

Ethan Caldwell (CEO)

Skyline Builders & Contractors was founded by Ethan, who is its visionary. With years of expertise in the construction sector, he manages every facet of the company and makes sure that it is in line with its sustainability and excellence purpose. Long-term client relationships and strategic expansion are the main priorities of his leadership.

Key managers

Michael Bennett (COO)

Michael oversees the daily operations, resource allocation, and project logistics. His solid operations management experience helps him streamline processes and guarantee that every project is finished effectively and on time.

Jessica Harper (CFO)

Jessica contributes financial knowledge, budgeting, investment plans, and financial management to the business. She has a critical role in planning for growth, preserving profitability, and obtaining capital for further expansion.

Lucas Davis (Project Management Head)

As the team's leader, Lucas makes sure that every project complies with deadlines, quality requirements, and client specifications. His large-scale project management experience helps ensure smooth execution and satisfied clients.

Rebecca Cole (Director of Safety)

To maintain a safe workplace, Rebecca is in charge of all safety procedures, making sure that industry rules are followed and putting training plans into action. Her job reduces hazards and puts the health of the workers on the job site first.

Emily Rivera (Client Relations Manager)

Emily is responsible for managing client communications and fostering strong relationships. Her expertise in customer service and relationship management helps ensure that clients remain informed and satisfied throughout each project.

Organizational chart

8. Financial Plan

The financial plan for Skyline Builders & Contractors outlines projected revenue, operating costs, and profitability over the first three years.

These projections are based on expected growth as Skyline establishes a strong presence within the Dallas construction market.

Revenue plan

Skyline Builders & Contractors' revenue plan focuses on growth through diverse residential, commercial, industrial, and public construction projects.

Income statement

The income statement for Skyline Builders & Contractors provides a detailed breakdown of revenue, costs, and profitability over the next three years.

Cash flow statement

A cash flow statement shows the cash coming in and going out, helping Skyline Builders & Contractors track available funds for operations and projects, and ensuring smooth financial management.

Balance sheet

The balance sheet for SkyLine Builders & Contractors provides a snapshot of the company's assets, liabilities, and equity over the next three years.

Skyline Builders & Contractors seeks $750,000 for equipment, staffing, materials, and marketing to fuel growth in Dallas.

This $750,000 investment is intended to support SkyLine Builders & Contractors in acquiring essential equipment, materials, and staff while establishing a strong presence in the Dallas market.

Download the construction business plan template

Are you prepared to start writing your construction company business plan but require some advice? To get you started, here is a PDF version of our construction business plan template .

This template is especially created for construction services. It provides detailed instructions and real-world examples to assist you in creating a comprehensive and effective business plan.

With this construction business plan sample, you now have a good understanding of writing a professional plan.

However, if you’re still confused or looking for a more streamlined way to craft a detailed business plan, Bizplanr could be a great option.

Simply answer a few easy questions about your construction business, and get an investor-ready plan ready in minutes!

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Frequently Asked Questions

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

A construction business plan usually takes a few days to several weeks to complete based on your market research and the level of details you want to include.

How much does it cost to start a construction company business plan?

Starting a construction firm can cost anywhere from $50,000 to over $500,000. It basically depends on a few factors, like the construction services you offer and the size of your company.

How do you get funding for your construction company?

Here’s a list of various funding sources for your construction company:

• Traditional bank loans
• Equipment financing
• Small Business Administration (SBA) loans
• Private investors
• Government grants

Where can I get a construction business plan PDF?

You can find a variety of construction business plan templates and downloadable PDFs on platforms like Upmetrics, LivePlan, Bplans, and SCORE.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

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