Self-development 

How to open a good construction company: from zero to the first million. How to open a construction company: a successful start without large investments

How to organize a construction company from scratch?

The market economy introduces significant changes not only in the economic activity of most enterprises, but also in the very perception of life by a modern person.

For many of us, it is no longer enough to just have a good job with a stable income, but we want to open our own business enterprise. A business started and built from scratch with your own hands is the cherished dream of truly enterprising people.

In the present conditions, one of the most profitable and promising types of business is considered to be construction. If you have chosen this type of commerce, then you need to know how to start a construction business, this will help you avoid many of the typical mistakes that most novice entrepreneurs tend to make.

Features of the construction business

Like any modern commercial enterprise, the presented business is divided into several main categories, these are:
- the sphere of civil engineering;
- road construction;
- industrial construction of buildings.

Services of a construction company can be divided into two types:

Basic services, including such types of work as: the construction of residential buildings, garages, baths, warehouses, and so on, on a turnkey basis, and: installation, dismantling, repair of apartments and other premises;
- additional services - leasing of personnel and equipment, sale of building materials, training of personnel from other companies.

To start a construction business from scratch you must adhere to the following algorithm of actions:

Writing a clear business plan;
- execution of all registration documentation;
- collection of permits;
- purchase of inventory, equipment, machinery;
- recruitment of qualified personnel;
- search for regular and new customers.

For successful commercial activity in the chosen direction, you will need to draw up a good business plan. This is necessary not only for organizing a company, but also in order to get a loan from a bank.

It usually contains everything you need to know about the liabilities and assets of your firm, as well as what methods will be chosen to increase profits. With the help of a business plan, you will accurately calculate the payback and profitability construction company business.

Pros and cons of the construction business

The main advantage of engaging in the presented type of entrepreneurial activity is the opportunity to make a good profit, though after a certain period. On average, the profitability of the construction business ranges from 50 to 70%.

Among all types of private entrepreneurial activity, this result is called the most impressive. It is also worth noting that the presented type of commercial activity pays off on average within one year.

To start a construction business from scratch be sure to have large financial resources. Also important is the ability to attract qualified and conscientious personnel and possession of sound knowledge in the chosen specialty.

However, as in any other commercial activity, you may encounter some pitfalls and problems. The most typical of them are the following:

1) A significant decrease in profits can cause problems such as difficulty in entering the market. A positive factor will be hiring employees who already have experience in this field, they will contribute to the fact that your company will have a good reputation in the market, you will not need to spend additional money on advertising. Also, hiring employees with experience is a great opportunity to avoid forced price cuts;

2) A company that has recently registered and is just entering a wide market may have serious problems obtaining a loan from large banking organizations. The fact is that banks doubt the stability and prospects of a young company. You can only convince them otherwise if you have a well-written business plan and significant assets;

3) When opening a construction company from scratch, be prepared for a high level of competition in the presented business area. To be successful, you must provide your customers with a good advantage over your competitors.

The financial component of construction activities

In order for your company to actively develop for a long time, you need to learn how to properly manage your accounting, without the correct calculation of profits and expenses it will be impossible to maintain stable development and make wise investments. What can we say about attracting new customers, and so on.

It should be noted that one of the important conditions for organizing a construction business is the implementation of constant large financial investments, the retention of money at the stages of construction that has not yet been completed. Compliance with these conditions will allow a novice entrepreneur to make a good profit after some time.

There is the following list of main attachments:
- purchase of construction equipment;
- purchase of special equipment;
- transport taxes, advertising activities, taxes;
- lease of office and industrial premises.

One of the ways to reduce financial costs is not to purchase special equipment in the property, but to rent it. Usually, a significant part of the funds from start-up entrepreneurs goes to the promotion of the company and investments in advertising activities.

A good solution is to create an Internet site for your company, which will present a complete catalog of services, projects, price list, and so on. Investments in the site and advertising are among the most important.

Collection of necessary documentation

Each construction company must have the following set of documents:
- certificate of state registration;
- certificate of registration with the tax authorities;
- the charter of the enterprise;
- seal;
- statistical codes;
- decision on the formation of the enterprise.
Licensing of the company includes the collection of the following documents:
- building permit - issued by the local government and the chief architect;
- license for engineering work;
- license for the design of structures and buildings.

Hiring

If you decide to organize your construction business from scratch, then you cannot do without hiring qualified and conscientious personnel. The reputation of the company, its performance and profitability will largely depend on this factor.

Depending on the specific conditions of doing business, the list of personnel may vary significantly, but usually it includes the following items:
- Purchasing Manager;
- designer;
- HR inspector;
- architect;
- foreman;
- lawyer;
- accountant.

If you plan to open a small finishing company, then the minimum number of people in one team is 4 people. Accordingly, they should include an electrician, a painter, a plasterer, and a carpenter. An important point is that in order to obtain a license in state institutions, at least more than half of the registered employees must have a higher construction education.

To increase productivity, be sure to provide your workers with all the necessary set of construction equipment and inventory. They must be in good condition, regularly undergo technical inspections, and also comply with safety standards and requirements. It is best to give your preference to an expensive, but high-quality tool than to purchase a cheap low-quality inventory.

How to attract new customers

For the successful development of any modern commercial enterprise, it is essential to be able not only to win your group of regular customers, but also to attract new customers. The implementation of this task will significantly expand the capabilities of your company, and reach a new level of development.

For start-up entrepreneurs, the following ways to find clients are suitable:
- Creation of own base of potential clients;
- the beginning of independent development of the site in order to further sell real estate on the market. You can start selling at any stage of construction - both at the initial and final stages;
- a good way to attract new customers is to receive orders after winning a government tender.

If you don't know how to open a construction business, then the presented material should definitely help you with this.

If you follow all the above recommendations and the proposed algorithm of actions, then starting this type of entrepreneurial activity should not cause any obstacles and difficulties. It is worth remembering that success comes only to businessmen who are strong-willed and able to strive to obtain new information.

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. Not! 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 from the 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. Thus, 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. True, it must be borne in mind that winter time for the most part refers 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.

High barriers to entry into the construction services market, represented by the need to make large investments in the project, do not frighten startups. The thing is that if you open a company from scratch and properly organize all processes, you can get a high monetary return. How to start a construction business that could become competitive and highly profitable in the future?

How to open a company: the main registration points

A startupper can choose one of two options for organizing a project: as an individual entrepreneur or a legal entity (LLC). What form of organization is better to choose? The specificity of these services is such that the larger the project in which the businessman plans to participate, the higher the requirements for contracting companies, up to the tender.

At the same time, for repair or finishing work in a private house or kindergarten, the customer is unlikely to organize a tender, giving preference to individual entrepreneurs with the lowest prices for their services. Therefore, to open a construction company in the Republic of Belarus as an individual entrepreneur or LLC, it is up to the startupper to decide, depending on the planned scale of the project.

How to start a construction business: permits, permits, licenses

From 01.01.2010, companies in this market do not need to obtain a license, however, such a company must become a member of a self-regulatory organization (SRO). The SRO is responsible for the functioning of its participants, including financial responsibility in case of poor performance of work.

To join the SRO, a company must submit a package of documents that clearly indicate the list of the company's work, as well as pay a number of membership fees and fees. Their size can range from 100,000 to 2 million rubles, which automatically filters out one-day companies. In addition to the money, there is also the organizational side of the matter, which concerns the company's personnel. This will be discussed further.

How to start your own business in construction: staff is everything

The main requirement of each self-regulatory organization is the availability of qualified personnel in the company: engineering and technical workers must have a higher or secondary vocational education within the framework of the profile of the work declared for the company to perform. Documents on education, qualifications, length of service, certification of employees should be in order.

Before starting a construction business with a million-dollar profit, Dmitry Smirnov decided to become a member of the Business Youth project. During the courses, he realized that the main guarantee of a successful startup is expertise, that is, the presence of not just skilled employees, but pros, aces, masters - experts, in a word.

You can't save on staff, so Dmitry decided to train his employees in the latest Canadian and Norwegian woodworking technologies. The decision to invest in employees led to a crazy return on capital!

Most of the major market players, before opening their business in construction, were far from building houses. Some firms and individual entrepreneurs simply traded in materials, gradually mastering the technology of their installation and then diversifying their operations.

Some of the large companies that are currently leading the market started their business with the handicraft production of materials, mixtures (concrete) with their delivery, and subsequently with installation at facilities. Feeling financial independence, the owners decided to scale the business, penetrating the market and conquering it.

The origins of a successful startup are always the ability to anticipate, analyze the market and its processes, plan processes for a long period of time. Organizers and participants of the Business Youth project will help to successfully compare different types of information, benefit from seemingly unimportant or negative events, create a team and work in a team for the benefit of the business and its participants.

The construction business is gaining momentum every year, which is associated with an increase in demand for housing and improved economic factors. Therefore, the business idea of ​​​​opening a construction company is relevant and can be implemented in fairly favorable conditions. We will talk about where to start and how to draw up a business plan for a construction company in this article.

In order to understand how profitable this direction is, let's analyze the prospects and relevance of this idea. What features does this business area take into account?

Investments, with proper planning, can pay off within a few months. And the development prospects for this industry are truly limitless.

In order to realize the idea of ​​​​opening a construction company, you can go in two directions:

  1. Buy a ready-made business.
  2. Create a company on your own.

The first option has its advantages due to the fact that you no longer need to spend time and money on registering a business, obtaining permits. Those who have encountered this bureaucratic red tape know firsthand how much this one takes time and effort.

Also an important point is the already selected personnel of the company, established sales channels.

But there are some drawbacks to this option as well. If the business was unprofitable, the wrong marketing technologies were implemented in it, then it will be difficult to bring the enterprise to the proper level of development. In this regard, it is much easier to create a company from the very beginning.

In addition, in the business of construction and repair services, the reputation of the company is very important. When purchasing a ready-made company, you will have to rely on the already created image of your predecessors. If it is not good enough, you will have to spend a lot of time, effort and money on promoting the company, creating a positive reputation, etc.

Pros and cons of business ideas

Despite the prospects for the development of this business, the idea itself has its pros and cons, which you should know before proceeding to the stage of implementing entrepreneurial activities.

Pros:

  • Small investment. In order to register a company, to purchase the necessary equipment, you do not need large investments. It is possible to develop and increase the turnover of the company already in the process of its implementation.
  • High demand. Today, this niche is one of the most sought after. Individuals and legal entities, small and large businesses need the services of professional builders. Therefore, with proper marketing planning and the high quality of the services provided, you can quickly reach the company's payback and good income.
  • The prospect of business development. Your company may not be limited by the geographical location of the city or region. With the right development, over time, you can open branches in other regions, which will allow you to reach a completely different level of business.
  • Possibility of making a good profit. Standard profitability, in the absence of force majeure situations, ranges from 50 to 70%.

Minuses:

  • High competition. This factor logically follows from the high demand. The higher the demand in the market, the greater the supply.
  • Financial risks associated with the unstable economic situation in the country.
  • Difficulty entering the market. Given the high competition, much attention will need to be paid to the stage of service promotion.

Employees play a big role in this business. It is from their qualifications and professionalism that the profit of the company will largely depend. When hiring employees, it is very important to analyze their experience, qualification level, possible development, etc.

With a good team and an experienced staff of builders, you can quickly reach a high level of development and earn an excellent reputation in the city. A good option to start such a business is experience in other construction firms. This will allow you to see the situation from the inside, analyzing its strengths and weaknesses.

In addition, work as a subcontractor will teach you to understand the qualifications of personnel, the competent distribution of labor and material resources.

In what direction to develop?

Having decided to enter the market with a proposal to provide construction services, it is important to understand the target audience. This parameter allows you to determine not only competitive advantages, but also draw up a financial plan for the development of the company.

The construction business can be implemented in several directions:

  • provision of services in the field of civil construction, repair;
  • road construction;
  • industrial building construction.

Each of these areas will require a different amount of investment, staff, constituent documents, etc.

The main services of a construction company include the following types of work:

  • construction of houses;
  • repair of apartments;
  • dismantling and installation;
  • construction of garages, bathhouses, warehouses, etc.

Additionally, to increase income and expand the range of services, you can rent construction equipment, sell materials, train staff, etc.

As you can see, there are a lot of development prospects and opportunities for obtaining additional income for this type of business.

In order to implement this type of business, you must adhere to the following algorithm of actions:

  1. Determine the format of the company.
  2. Make a business plan.
  3. Preparation of registration documents.
  4. Company promotion and customer search.
  5. Project implementation.

The Importance of Writing a Business Plan

The stage of implementing a business idea is always preceded by the planning stage. Without a competent market analysis, competitive advantages, studying the target audience and strategic planning, it will not be possible to achieve the desired result.

All these aspects are written in the business plan and help to understand the direction of business development, taking into account the strengths and weaknesses of the project.

Competent planning will help to avoid mistakes, anticipate difficulties and calculate the point of profitability.

Also, having a ready-made business development plan, it will be easier to attract investors, business partners, justifying the feasibility and relevance of the idea.

organizational plan

Business registration

To open your own construction company, you will first need to obtain permission for the relevant type of activity and register a private enterprise.

Each construction company must have the following package of documents:

  • Certificate of state registration;
  • A document confirming tax registration;
  • company charter;
  • printing and statistical codes.

For companies providing specialized services to the business sector, industrial enterprises, road services, etc., it is necessary to additionally obtain the appropriate permit:

  • building permit;
  • license to carry out engineering work;
  • permission to design buildings and structures.

This type of activity requires obtaining several licenses.

One of the key documents is the SRO. This is an admission to the implementation of services associated with an increased risk.

If you do not plan to build buildings over three floors, then obtaining an SRO is not required.

Also, this document does not need to be drawn up if the activity is related to the construction of block houses with an area of ​​​​less than 1.5 thousand square meters. That is, for an ordinary construction company that will be engaged in the construction of private houses and finishing work, it is not necessary to obtain an SRO.

One of the biggest expenses in this business is the purchase of equipment.

Before making a list of the necessary equipment and machinery, determine the format of the business, the number of work shifts, etc.

If the initial investment does not allow you to fully purchase a professional set of equipment, tools and inventory, then you can resort to the leasing service.

Unlike a bank loan, this service allows you to use property on a long-term basis with the right to buy it. By the way, in the future, when business development is already at a high level, you yourself can provide rental or leasing services to other start-up companies.

No need to invest a lot of money in the purchase of equipment that you will need occasionally. It is much more profitable to pay a daily rent by taking equipment for a specific project.

For a large company that plans to engage in construction and repair work in the private sector, you will need the following list of equipment:

  • tap;
  • concrete mixers;
  • lift or CMU;
  • instruments;
  • perforators;
  • chainsaws;
  • drills;
  • hammers;
  • special clothes for workers.

Without a qualified staff in this business, it is difficult to count on profitability and profitability. Therefore, the moment of search and selection of personnel must be given great attention.

In terms of their functional duties, the composition of the staff can vary significantly. It depends on the format of the activity, its specifics, etc.

Below we provide a standard set of employees for a construction company:

  • workers and builders;
  • foreman (foreman);
  • accountant;
  • Purchasing Manager;
  • Service Promotion and Customer Relations Manager
  • personnel inspector;
  • lawyer;
  • architect;
  • director.

The number of employees determines the scale of business activities.

If you plan to develop a business in the provision of finishing services, then you will have to increase the staff with more specialists in this field (plasterers, masons, plumbers, electricians, painters, carpenters, etc.).

In order to obtain a license for the provision of construction work, please note that at least 50% of the total number of builders must have a higher specialized education.

For effective productive work, it is important to provide workers with all the necessary tools and materials.

For the quality of services and in order to avoid production delays, it is important to systematically inspect equipment and inventory, check its serviceability and suitability for work.

Do not buy cheap equipment - this will reduce not only the productivity and quality of services, but also the profitability of the business, since large resources will have to be spent on repairing and replacing equipment.

Room selection

To work, you need a small office, where the administration, accountant, lawyer will be located. Keep in mind that during the implementation of the project, you will have to negotiate with customers, discuss projects.

Therefore, when choosing a room, consider that it has a place for a meeting room.

As for the location of the office, there are no special recommendations. You may not spend a lot of money on renting a room in the city center, but you need to take care of transport accessibility.

Marketing plan

To achieve profitability and a good income, it is very important to earn a positive reputation in this area and attract regular customers.

There are several options for attracting customers:

  • the beginning of development with the subsequent sale of apartments;
  • active advertising in the media, via the Internet;
  • participation in affiliate programs with hardware stores;
  • attracting customers after winning a government tender.

Be sure to create your own website, where a complete list of services will be presented, a calculator for the cost of services, contact numbers for the administration, the possibility of consultation, etc.

A good website is a kind of business card, which indicates the high level of the company and its reliability.

Video. How to open a construction company from scratch

Financial plan

Here we present only a rough cost plan, since each firm, depending on the scale and geographical location, will require its own costs.

  • purchase of equipment - 1 million rubles;
  • advertising - 100 thousand rubles a month;
  • unforeseen expenses - 100 thousand rubles
  • staff salary (15 people) - 500 thousand rubles;
  • office rent - 50 thousand rubles.

And now let's calculate the payback of this project.

As a standard, in this area a good indicator is a profitability of 10-15%. If you reach this indicator after 5-6 months, this will indicate that all aspects (marketing, organization, planning) are built correctly.

With the deterioration of the economic situation in the country, businessmen note a decrease in profitability in this sector. To date, the average figure fluctuates between 7-9%.

Remember that profitability will directly depend on the qualifications of the staff, the number of customers and the amount of costs. If you do not reach the average planned indicator, then analyze which of the factors does not “work”.

Risks and Opportunities

At the planning stage, it is very important to perform a SWOT analysis, which will allow you to see the strengths and weaknesses of the project, threats and development opportunities.

The main risks of the construction business include:

  • high competition;
  • unqualified personnel;
  • lack of orders;
  • rising prices for building materials.

Take a close look at this list. There are things in it that you can't control. So, for example, a high level of competition and high prices for building materials is not in your area of ​​expertise. But as for the low level of staff qualifications, the lack of orders - these are the factors that you can influence.

That is why it is important to draw up a competent business plan, which will become a step-by-step guide and will allow you to clearly see the prospects for development, the size of the expected profit, and the profitability of the business.

Video. How to develop a construction company