Is a construction business profitable? Do you want to start a building construction company from scratch? Or do you need a sample building construction business plan?

Building construction or industry is a multi-billion dollar industry; billions of dollars are spent each year on the construction of new flats, office complexes, shopping malls, etc. You can take advantage of this industry and build a multi-million dollar business for yourself in time, especially if you are in the engineering field.

Most people see the building company as a big dream that only money bags or extremely rich people can achieve; establishing a building construction company is a capital intensive business quite well, but you, as an individual, can start a small building construction company and turn it into a money empire.

In this article, I will cover everything you need to start all that is required to start a building company; including sub topics such as: why you should undertake to start a building company, the steps to start your own building company and the best ways to start the building contract source.

Why you should start a building construction company

If you have had the idea to start your own building construction company before, you should think about taking the first steps to make your dream come true for the following reasons:

Multi-million dollar business: the building construction company is one of the few businesses that has the capacity to make millions of dollars in a few years; I am not saying that it will be rosy all the time because it can even find a difficult start; but with hard work, determination and networking with the right people, you can build a multi-million dollar business.

Easy access to capital: I mentioned earlier that this business is very capital intensive and requires hundreds or even millions of dollars to get established. but the truth is that financial institutions are very willing to lend to construction companies who want to expand because they know that a good construction company has a better potential to pay back loans and interest on schedule. even if you do not have the initial capital to start, you can take your business plan to the bank to access a small loan to create a smaller construction company.

You are your own boss: starting your own building construction business makes you the business owner and gives you the ability to move out of the proverbial rat race lifestyle. However, being a boss brings its own challenges and responsibilities; for example, you need good leadership skills and the ability to keep your workers motivated at all times to meet the company’s goals.

Starting a building construction company plan

1. Write an explicit business plan:

I cannot emphasize too much the need to have a well detailed business plan for your business. in the case of a construction company, your business plan should cover every detail of your business; the estimated capital you will need to establish the business?

How will you seek the capital? what machines and equipment will you work with? will you buy or lease them from other companies to get started? what kind of construction contracts will you handle? how will you advertise your business? will the business be one-man operation, or will there be other partners? what will be the role of each partner?

The answers to the above questions will help you to write a detailed business plan. If you have problems writing your business plan, you can seek help from a professional and work with the person to develop a business plan.

It is important that your business plans look as professional as possible because you may need to present them in some places, for example, you may need to present them to access a loan from the bank. Here is a sample business plan template from a construction company that you can use for free.

2. Train yourself:

I assume that you have the right training to enter this line of business; but if you do not, then it is right to take advanced courses on construction technology and other related courses; This business is sensitive and it is necessary to be as professional as possible, since a simple mistake in a construction project can endanger other people’s lives.

3. Obtain the required licenses:

you need to obtain a business permit, a contractor’s license and commercial insurance to run this business; not excluding your tax identification number (tin). commercial insurance is very important; in fact, some states will not allow you to run this type of business without insurance coverage. insurance should be able to cover third parties; in the future, it will save you several million in liability costs.

4. Get a site:

you need a place that serves as the site or complex of your construction company. the space should be large enough to contain all the equipment and machinery, including the large construction vehicles that your company will work with. you should have an attached office complex, to contain other company departments such as the accounting department; receptionist, legal department and other company departments.

5. Buy the necessary machines:

this is where you make most of the expenditure when setting up a building construction company; you will need to buy machinery such as; excavators, crawlers, earth moving machines, loaders, mini loaders, graders, wheel loaders and many others; and they are worth thousands of ideas.

If you do not have the initial capital to buy this equipment, you can lease it from other companies at a lower price; but try to buy your own machinery as soon as you can afford it; it is cheaper in the long run, and you can also earn some extra money by renting it to people.

6. Hire construction workers:

for this to work, you need competent hands to work in your company; you will need construction engineers, civil engineers, site engineers and other professionals to work for your company; you can employ them as contract staff, if you don’t have the funds to keep them as full staff to start with.

7. Source of work:

this is where the need for a construction marketing plan comes in. Some of the ways to look for jobs in this industry include

Applying for government contracts, both state and federal.
Networking with other construction companies, they can subcontract some of their excess work to your company.
Attend real estate events, meet real estate agents and network with them; they may have one of two contracts to sublet your company.

In conclusion, I have detailed everything you need to start your own construction company, including ways to obtain construction contracts.

How to start a building construction business plan