Know your business

Profitable construction business. How to start a construction business from scratch: promising ideas, a step-by-step plan

The main advantage of the construction business is the presence of a constant growing demand. Every day, several potential clients are looking for contractors who can do renovations, build a cozy home, or install a fence around an existing structure. Of course, there are many representatives of the stronger sex who will take up the job themselves, but not every man can install a double-glazed window, replace a pipe or build a cabinet.

About how to start a construction business and what pitfalls can lie in wait for a businessman in this field, and there will be further discussion. The main rule that every entrepreneur must remember is that you cannot refuse a single client who is ready to pay money.

Market monitoring

So, the idea came to my mind to try myself in such an area as the construction business. Where to begin? Many will say that by contacting the tax office. No! With serious preparatory work associated with a detailed study of the market.

Currently, many companies are open, ready to build both an apartment building and a private cottage.

Every novice entrepreneur should understand that organizations that have worked on the market for more than one year can act as competitors. And this means that they have the trust of customers and partner suppliers. Therefore, the only right decision is to stand out "from the crowd". Leadership should be expressed either in the volume of attracted capital, or in a fundamentally new approach to construction.

Activity registration

How to start a construction business? A thorough market analysis should be followed by formal registration. The most suitable form is a limited liability company.

After that, you can start choosing a suitable company name, finding the best office location, creating an authorized capital and selecting founders. More about each item.

How to start a construction business from scratch: a plan

  1. With a unique and easily recognizable name.
  2. From the location of the company's office in a place accessible to customers.
  3. From the authorized capital invested by the founders or start-up capital, without which the company will not be able to start its stable functioning.
  4. From the collection of a package of documents necessary for registering a company - the passport of each founder, information about the location, the main type of activity, as well as the size of the authorized capital and the method of its formation.

All these actions can be performed independently or seek help from the appropriate specialists.

Professionalism and organizational skills. What's more important?

How to start a construction business from scratch and achieve success? Experience is an invaluable assistant in this matter. In this case, some problems disappear on their own. Although, according to statistics, there are a lot of people who started to realize themselves in this area from scratch and still climbed very high up the business ladder.

Organizational skills, the ability to create a professional team, to find a common language with any partner or client are the main components of success.

In addition, it is necessary to determine how the work will be carried out - independently or with the involvement of additional companies. So, the opinions of experts agree that it is better to go through the beginning of the construction activity together with good partners and solid sponsors who are able to support any, even a global project, or provide all possible assistance during the absence of at least some significant order.

brigade

How to start a business from scratch in the construction industry? Need to find conscientious skilled workers. This profession is recognized as the most necessary in the world.

A large enterprise with a personnel reserve can apply any measures to an unscrupulous employee, up to and including dismissal, without fear of anything. But a small company left without a specialist may lose an order due to a missed deadline.

Therefore, if a workable team was not assembled at the beginning of the activity, then it is not worth starting work.

By the way, it is necessary to complete the basis of the team only from qualified workers, and then to recruit newcomers as the company expands.

In the framework of the modern market economy, everything must be done quickly and efficiently. That is, yesterday, a specialist hired should immediately begin to implement the plan.

The tightening of requirements for personnel is observed due to the fact that construction is not only a responsible, but also a lengthy process. After all, the appearance of cracks or midges, not to mention collapses, is not an ordinary breakdown of household appliances.

Colleagues

How to start a home improvement business? Any competitive environment involves professional interaction - linking to the master plan, coordinating the project, connecting communications, etc. In view of this, it is necessary to notify colleagues in advance about the planned actions, about the niche found for oneself, about the sequence of work.

A sudden jump can turn into big problems, for example, a complete misunderstanding with the state structure, because development must be carried out in strict accordance with the law.

Financial part

How to open a construction business from scratch? It is necessary to talk with investors and discuss with them the initial "infusion".

The amount of investment costs is approximately 12,000,000 rubles. and includes the purchase and rental of several units of special equipment, the development of design documentation, as well as the conduct of geological and geodetic surveys. About 1,000,000 rubles will have to be spent on tools and overalls. Office rent will cost about 150,000 rubles / year. In addition, you need to think about travel and entertainment expenses - 200,000 rubles / year, as well as membership fees, promotional activities and website promotion - 100,000 rubles / year. Total initial costs will amount to 13,450,000 rubles.

To calculate the income and payback period, you need to arm yourself with the average value of the profitability of a small construction company. In a metropolis, this figure may be 100%, but only a beginner is unlikely to be able to take root here. Subsidized hinterland is able to provide no more than 25-30%. Orders are also present here, but they require a large number of trips. The average profitability in Russia is about 60%, which results in a payback of 20 months. Indeed, it must be taken into account that winter time mostly related to downtime.

Permits

How to start a construction business? With the decision on the entry of builders. An entrepreneur who avoids this moment will have to pay a fine of at least 5,000 rubles. Each firm that has joined the SRO pays fees, the amount of which is set by the local authorities of the region (but they are unlikely to be small). So, only requires 400,000 rubles. in year. Not all construction organizations are able to cope with such expenses, so they often prefer semi-legal work.

Entry into the SRO is not required for the following organizations:


How to start a construction business? From the sequential execution of the following actions:

  1. Collection of papers that allow you to engage in construction.
  2. Registration of a license for the design of various kinds of structures.
  3. Obtaining permits for conducting engineering surveys.

You will also need to visit Rospotrebnadzor and the Department for Emergency Situations.

What does a construction company do?

You can open a highly specialized or large format small construction business. Where to begin? Determine the range of services demanded by the population. So, a construction company can:

  • erect various buildings and structures, both partially and on a turnkey basis;
  • engage in repair and installation work;
  • rent machinery, equipment and construction tools;
  • develop projects;
  • materials.

The breadth of the field of activity directly affects the number of investors needed to start.

Required personnel

A construction company cannot do without:

  • architect or designer;
  • accountant;
  • personnel officer;
  • supplier;
  • foreman.

It will not be superfluous to have your own lawyer.

Each team must include qualified carpenters and electricians. The issuance of a state license largely depends on the availability of higher education for the main part of the company's employees.

If we are talking about a small company, then it is much more expedient to use the services of a hired accountant. The advantage lies in the absence of a monthly salary, since payment is made upon completion of the work.

Where to look for orders?

You can place an order in one of the following ways:

  • Winning the tender. Please read the terms and conditions carefully before submitting an application.
  • Conclusion of an agreement with a construction company. For example, some can build walls, while others can do the finishing.
  • Become a subcontractor of a large organization - an executor of a large-scale project.

The most reliable way to become popular in the construction industry is a responsible approach to the implementation of any order. A positive reputation in the market has not harmed anyone yet.

Ideas in the construction business today are varied and attractive to start-up entrepreneurs. Below are tips for translating ideas into the construction industry.

Business ideas in the construction industry

Before starting active operations, novice businessmen ask themselves the question - to grow a business idea from scratch, to acquire an already established commercial enterprise, or to find a compromise by concluding a commercial agreement.

It is important to understand that today, during a protracted crisis, before opening a company, it is necessary to carry out a number of organizational measures that will help not only determine the most demanded direction for a commercial project, but also a strategy for its further development:

  • analyze the most demanded areas in production;
  • identify the strongest competitive positions;
  • establish contact with reliable suppliers of building material.

After the main direction of commercial activity has been chosen and approved by you, you can proceed to the search for ideas for making money in the field of construction and repair. According to experts, recently the most relevant areas of commercial activity are: the production of building materials and finishing repairs of apartments. Speaking of finishing works, it can be noted that the problem of import substitution bypassed them, which, unfortunately, cannot be said about the construction industry.

A profitable business idea in construction, or how to open a new production

Incarnate new business Reality is not always easy. Novice managers should remember that despite the problems with the substitution of foreign products, Russian manufacturers have also become noticeably more active, trying to reduce the cost of work, but at the same time they do not spare the quality of the services provided.

A pleasant ratio of price and quality will help to stand out noticeably against the background of enterprising businessmen, which is not as easy to achieve as it seems. Here are a few things you can do to help you succeed:

  • collect all available technologies of construction production;
  • conduct independent testing of samples and select the 3 most acceptable in terms of quality;
  • gather a professional board that will choose the best technique in terms of quality, price and manufacturing complexity;

Modernization and further development of manufacturing techniques will soon provide buyers with decent building materials that will meet international standards by all criteria, and a pleasant bonus in the form of an attractive price for the material will significantly increase the demand for domestically produced products sold. Summing up, it should be said that no one wants to assume the probability of a fatal outcome of an idea, but you should not forget about it either.

Today compress solution between purchase ready business and a start-up from scratch, the franchise agreement program is deservedly considered, as it incorporates the best features of both techniques. Thus, an inexperienced manager will receive not only a delayed system of technological equipment, but also important information and analytical support, which includes training employees of the enterprise to meet the standards of the purchased franchise.

A very profitable business is the construction of houses for sale, especially for those entrepreneurs who have decent capital to invest.

At the same time, it is not necessary to be a professional builder, your enthusiasm and a serious approach to business are enough. Such a business can bring you good profits and become a reliable source of income. Our recommendations and advice will help you realize this business idea.

Decide what exactly you will be building. Whether it will be a cottage settlement, an apartment building, a townhouse or a separate country house, decide for yourself. But do not forget that the popularity of cottages is not falling. There are a lot of people who want to buy such a house. Therefore, the best idea is the construction of country cottages.

Plot, project, communications

We are purchasing a plot of land for construction. Ideal if you already have it. Choose a site in a popular direction, in a crowded area and with communications. Buyers will not be satisfied with an uncomfortable and uninteresting place, so pay attention to the surrounding landscape, estimate the location of the house. Contact a realtor you know to help you choose a site and tell you the approximate cost of houses in the area. It is a good idea to purchase a plot of land through an auction, but this requires an increase in cash investments.

Contact a geodetic service for a soil analysis. This must be done in order to be sure of the reliability of the earth under the foundation.

The next stage is project documentation. Order a preliminary design and a package of documents for it from specialists. When it is ready, submit it to the regulatory authorities for approval. All this takes time and money. After approval, you will receive TU ( specifications) for connection to power grids, as well as to sewerage and water supply if you are building within the city.

We bring communications. These works should be carried out by special organizations to which you pay for the work itself, as well as the cable and pipes that are laid to your connection point. All connections to engineering networks must be performed with high quality. Agree, a good idea is to bring a telephone line and the Internet to the house.

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Home construction

We are looking for a team of builders who will perform the necessary work with high quality and on time. Make sure that the team owns the technique of laying, cladding, pouring the foundation. Inviting a construction company for this business is a bad idea. It's unprofitable. She will "swallow" all the profits. A hired team will cost much less, but you will need strict control and frequent visits to the construction site.

If you yourself are a qualified builder and the project of the house is simple, then you can carry out the construction yourself by connecting assistants. Or some separate construction stages in which you are a master, do it yourself. This will help you maintain a high profitability of the project.

Buying building materials from large wholesalers or directly from factories, bypassing shops and markets, you save about 20% of your money. Never skimp on the quality and reliability of building materials.

It is best to start construction in early spring, so that by autumn you will have made a profit. But for this it is necessary to carry out work at a fast pace, without breaking deadlines. If construction is accelerated, then the house can be sold in 2 months. In order for this business idea to give maximum profit, it is better to build several houses at once. You need to decide on the finish option: rough finish or final. There are buyers who want to get a turnkey house right away. But someone may not like the way you designed the room.

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Calculation and sale

Let's talk about the most difficult - cash settlements. This business requires funds to buy land, building materials, pay for project documentation and contractors. If you plan to attract investors, you will need a business plan with detailed calculations in the financial section. After construction, make a calculation of the entire process to determine the market value of the house. Of course, the cost of houses in different regions of Russia varies. For example, 1 sq. m of construction in the middle zone of our country costs about 20 thousand rubles (in large cities up to 40 thousand). Having spent 2 million rubles on building a house and selling it for 3 million, you will make a profit of 1 million rubles.

The house is built, now it needs to be sold. You can look for a buyer yourself or pay a realtor. Economy class houses sell faster than expensive ones. Post advertisements in the media. Consider that most buyers will come from the Internet. Great idea - shields and streamers.

It is not in vain that the construction industry is developing so actively today - it is a profitable niche where every entrepreneur can take his own place. Knowing how to open your construction business from scratch, you can create a profitable business with access not only to the local, but also to the regional market. Today, despite the current economic situation, new construction technologies and materials are being developed and implemented, which allows a businessman to choose the most suitable niche for business development. There are quite a few ways in which you can develop in the construction industry. But, as in any other area, here you have to think through all the nuances so as not to lose the money invested. And it will be especially difficult for beginners who do not yet know how to start a construction business from scratch. So, it is worth starting to study the issue now.

How profitable is the construction business?

According to experts, the construction business, in terms of generating income, is the most promising among others. But many aspiring entrepreneurs are put off by the long payback period. This is partly true, because many of the existing areas are high-tech, requiring large investments. But if everything is carefully thought out, the money will return very soon.

The payback period of the business will depend on the chosen direction and the invested funds. If you offer a demanded product on the local market, then the equipment will not stand idle, thereby bringing consistently high incomes.

And how “practical” is opening a construction business in a crisis? In a difficult economic situation, there is some subsidence of the market today. But everything is not as bad as it might seem at first glance - developers continue to build entire microdistricts, and the population continues to repair their houses and apartments, to improve suburban areas. The only difference is that with the decrease in purchasing power, buyers began to pay more attention to budget materials and inexpensive services. And this fact can even be turned in your direction by promoting on the market the product that consumers and customers want to see.

To minimize all financial risks, it is better to think about starting a small business, because large investments will be required to launch a large-scale production or a chain of stores.

Many types of construction business will "suffer" from seasonality. There is nothing you can do about it - a special need for materials and services arises mainly from March to October. But as practice shows, even active work only in spring and summer can provide high profits that will pay for all further downtime. In addition, with well-established contacts with 2-3 wholesale customers, you can not know the problems with seasonality at all.

The organization of a small construction business will be fraught with much less difficulties if the business project is clearly worked out. Following a certain plan, you can develop your enterprise.

Construction business: buy or organize on your own?

Construction business management, especially when it comes to large enterprise, not an easy task. And it may seem to many that acquiring a ready-made business that has been operating on the market for a long time will be much more promising. Maybe so, but where is the guarantee that the seller simply does not sell "illiquid assets"?

It will be very difficult to find a truly worthy offer for the sale of a profitable construction business! And even if such an offer is found, its price, for sure, will be considerable.

Buying a ready-made construction business is sometimes more profitable than an organization of the same kind, but from scratch, because, along with the equipment and trained personnel, the customer base also passes into the “ownership” of the buyer. And this is precisely the priority, because to find regular customers very difficult for beginners. Having decided on such a deal, it is better to hire a qualified lawyer for consultations, who will check all the documentation of the acquired company.

Starting your own small construction business is even more difficult, but an entrepreneur here can move in any direction, independently choosing an idea that is closer and more understandable to him.

Choosing a promising direction

It is impossible to launch a business in the construction market without analyzing it and choosing a promising idea. There are many options here, but first you need to decide on the format. What will it be - own production or outlet.

And when choosing what to do, you need to consider the following third-party factors:

  • demand for a product or service.
  • Purchasing power of potential consumers.
  • The level of competition.

Producing is always more difficult than selling - that's a fact! But the issuing enterprise is able to provide the entrepreneur with greater profits.

It is wrong to believe that the launch own production necessarily involves large investments. Not at all - there is a new business in the construction industry, the organization of which will require minimal investment. In addition, the widest range of production equipment allows you to master a profitable idea without large-scale costs. Therefore, if there is an increased demand for a particular material in a particular market, you can think about your own mini-workshop, which, by the way, can be organized on the basis of your own garage.

Interesting construction business ideas that can bring high income to an entrepreneur can be represented by the following list:

  • Provision of services for the repair and decoration of premises.
  • Construction of small structures - garden houses, wells, arbors. Interesting idea - .
  • Provision of services for construction work - digging wells, laying communications.
  • Production of budget building materials - bricks, cinder blocks, facade and decorative tiles of various types.

As for construction stores, it is better to open them in small towns, since megacities are already literally overflowing with supermarkets and wholesale warehouses, offering consumers a huge range of construction products - from building materials to construction equipment.

In a remote area of ​​the city, it is possible to organize a building goods store in the “around the corner” format, which will sell piece goods to local residents. But it will not bring big profits.

Working on a business plan

Whatever business ideas for construction are selected for implementation, the importance of working out a detailed project cannot be underestimated.

Without a business plan, no credit institution will give money to start a business!

On the pages of the project, a detailed analysis of a specific market niche is considered, the necessary costs and expected income are calculated, an example of further marketing policy. To draw up a business plan, it is not necessary to resort to the help of a specialist - everything can be done independently. Following it, you can develop your business in the future, entering new markets.

We formalize business

When discussing how to start a construction business, it is important to mention the registration of an enterprise. And if in the case of a home business, at first you can do without registering an IP, then a full-fledged workshop or a large store cannot be opened without obtaining the appropriate licenses.

It will not be possible to establish cooperation with large wholesale customers without the appropriate papers and permits.

If you are going to develop large markets, it is better to register the company as an LLC. It is necessary to collect the necessary package of documents and submit them to the tax authorities. Work in the construction business is now simplified by the fact that in order to carry out activities in without fail no state license required. But in order to increase customer loyalty and establish cooperation with large customers, you will need to join an SRO.

We buy everything you need for work

Any business will require certain costs. And the equipment here is the most important item of expenditure. Organization of a construction business from scratch involves the purchase necessary equipment(industrial or commercial), raw materials or goods for sale.

The volume of purchases and specific product names will depend on the chosen direction. And the “scope” of the planned business will affect capital costs.

Many entrepreneurs, in order to minimize costs, purchase used equipment. When concluding such transactions, it is worth being very careful, since there is a high probability of acquiring defective equipment.

We hire working staff

Of course, you can save a lot on hiring staff if you do all the work yourself. But the best construction business in Russia still involves the involvement of workers in the process.

The lack of additional labor can lead to disruption of contacts with wholesale customers. The sooner the entrepreneur fulfills his business obligations, the sooner payment for the work will be credited to his account.

The specialties and qualifications of the hired workers should be determined depending on what is planned to be done. But practice shows that only true professionals in their field will be able to do the job perfectly, thereby bringing profit to the entrepreneur.

Organized business development

The development of the construction business is one of the most important points in the developed business plan. And having a clear understanding of the principles of marketing, you can as soon as possible bring the business to a breakeven point.

Even if the business has been successfully functioning for a year, there is no need to stop there. There is still a lot of work ahead - expanding the enterprise, entering new sales markets, opening new divisions.

Starting a construction business in 2016 involves some investment in advertising. And during a crisis, this is especially important, because competitors are not asleep. Now the main thing is to build up a client base and reduce downtime to a minimum. Which advertising platforms to use will depend on the chosen direction. But today, online advertising is showing an increasing return - this way you can attract a larger number of interested buyers and customers, especially when it comes to the service sector.

Billboards and billboards, newspapers and magazines, thematic exhibitions, participation in tenders - these are popular ways to promote business in the market.

It is necessary to expand gradually, when all loans and borrowings (if any) are repaid, and confidence in the future comes.

Construction technologies are constantly improving. New discoveries differ in terms of use, but the developers pursue a common goal: to make the construction process easier, and life in new-style buildings more comfortable and modern. Let's look at the most interesting know-how of 2017.

salt blocks

The author of the idea was the architect from the Netherlands, Eric Jobers. The building material looks unusual, but very impressive. Salt is extracted from water using solar energy. Natural starch obtained from algae is used to hold the particles together. In fact, non-waste production. Such blocks can be used even in countries with arid climates. The mixture is also suitable for the design of flexible arched structures. To protect against external factors, the blocks are coated with an epoxy-based compound. It remains to be seen whether the novelty will be widely adopted.

Plates Isoplat

Invented in Estonia by Skano Fibreboard specialists. This is a natural heat-insulating material made from the fibers of coniferous trees. They are pre-soaked in boiling water, pressed and cut into sheets of different thicknesses. To give moisture resistance, the plates are treated with paraffin. Isoplat has high vapor permeability and sound insulation, protects from wind, retains heat. Due to the fibrous structure, the plates are fireproof, resistant to pests and protozoa (mold, fungi). The elements are connected to each other in a tenon-groove type, suitable for insulating the roof, flooring and frame. Width varies from 60 to 120 cm, thickness - from 12 to 50 mm.

Lego blocks EverBlock

Outwardly, they really look like elements of a popular children's designer. Perhaps they were inspired by an engineer from the USA, Arnon Rosan. The blocks are made of foam concrete and are connected according to the tongue-and-groove type without the use of adhesives. Only vertical seams need to be processed. The water permeability of the material is less than 3%. For the construction of two-story or more buildings, the Lego block is reinforced through technological holes. The most common block size is 25x25x50 cm.

Light blocking glass facade

Facades made of transparent glass easily let the sun's rays through, increasing the temperature in the rooms. The development of scientists from the Frankfurt Institute allows you to adjust the light transmission of glasses. Theoretically, the facade consists of many round segments. Each of them contains a fabric disk with titanium-nickel alloy wires - they have shape memory and react to ambient temperature. If the room temperature drops, the material curls up, returning transparency to the glass; when the temperature rises, it darkens the glass.

"Live tile"

A liquid tile that reacts to steps or touches by changing the pattern. The surface is made of tempered glass. She can finish not only floor coverings, but also walls, countertops. It well absorbs sounds, suppresses vibration. You can walk on such a tile almost silently. Of the shortcomings - instability to high loads, fear of sharp objects (chips may remain). But this tile looks great.

Conductive concrete Shotcrete

The brainchild of a team of scientists from the University of Nebraska-Lincoln. Conductive concrete that absorbs and reflects electromagnetic waves of various origins. The standard concrete filler was replaced by magnetite, a mineral of natural origin with excellent ferromagnetic properties. There are also metal and carbon components. Initially, the material was designed for runway hair, but can also be used in residential areas. Can be applied by spraying.

thermal wallpaper

Their trick is that when the air temperature in the room changes, the pattern on the canvas also changes. The invention of a designer from China reacts to a change in the thermal regime. Under the influence of heat, buds appear on the wall, and then flowers bloom. The inventor applies special thermal ink to the surface. Wallpapers react both to the sun's rays and to touch, but they are afraid of moisture, they cannot be washed.

Flexible wood WoodSkin

An amazingly flexible material that can be molded into any abstract shape. Consists of sandwich tiles. Polymer mesh, composite nylon composition and plywood are used. The novelty is produced in rolls and sheets. The form is given with the help of special three-dimensional machines, connecting small elements together. Sheet thickness can vary from 4 to 30 millimeters.

Sheep wool insulation

A novelty, which since November 2017 is also available in Russia. Environmentally friendly fiber isolates noise well, does not burn, and is suitable for warming any premises. Oregon Shepherd currently produces two types of insulation - Batt and Loft. Insulation is also good because it absorbs harmful substances emitted by furniture, synthetic finishing materials and other interior elements.

Plaster that regulates moisture

Condensation is a problem familiar to many. Developers from the Swiss company STO AG presented an innovative material. The plaster effectively absorbs excess water vapor from the air (about 90 g per 1 sq.m.). The thickness of the applied layer is up to 2 centimeters. There is no condensation, no mold and fungi, but there is a smooth, environmentally friendly coating.

Naturally, the developers are not going to stop there and new interesting discoveries await us ahead. Maybe they will change your life for the better!


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