construction company business plan uk

How to start a construction company

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We’ll start with a caveat: construction can suffer some of the biggest losers in an economic climate like today’s. Rising energy bills, cost of supplies, and increased wages mean investment in new projects can likely slow to a standstill. Indeed, many large contractors failed as a result of the 2008 financial crisis.

However, smaller construction firms tend to do much better than the bigger industry-players during times of crisis. The housing crisis is still ongoing, and people need places to live. With proper planning, you can take advantage of failing competitors to carve out larger market share.

Still, whether your vision is to position yourself as the next big contractor in your local area, or you see yourself tapping into a certain building niche, this specialist industry has tons of safety rules and regulations, financial setup and registration requirements to consider before you even think about trading.

Luckily, once you know where to begin, and where the main challenges are, it’s a much simpler journey than first appears. Startups.co.uk has helped SMEs to weather lots of different storms over the past 20 years. Our experts have used their bounty of experience to pull together the below guide to talk you through all of the most important steps to setting up a successful construction business.

This article will cover:

What is a construction company, creating a construction business plan, construction rules and regulations, how much does it cost, how much can you earn, tips and useful contacts for starting a construction company.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have practical resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

A construction company is not a single entity and can encompass a wide range of services and roles, in both private and commercial sectors. You will also quickly discover that there are lots of different types of construction companies including small renovation contractors, general contractors and owner-builders, and it’s important that you can recognise the difference.

Here’s a closer look at the different types of construction companies:

• Small renovation contractors Small renovation contractors tend to work on projects that require small amounts of capital including jobs such as home alterations, office renovations, or small-scale commercial work. As a result, there’s no need for small renovation contractors to have an office or site base, as they tend to complete their paper work at home on evenings and weekends. The majority of small renovation contractors generally expand to general contractors, if they are good enough of course.
• General contractors General contractors tend to be experts in building or alteration work. These companies provide a number of trades within their own workforce. Specialising in a wide range of trades and sectors, you will find that many construction companies operating as general contractors tend to deal with private and commercial work on a larger scale.
• Owner-builder A company that operates as an owner-builder is not classified as a contractor. This is because this type of company only builds buildings for their own ownership in order to rent, operate, or sell on completion (there may be some overlap here with becoming a property developer ). You’ll find that the vast majority of own-builders act as a construction manager or general contractor alongside their main business.

Once you’ve decided whether to become a contractor or an owner-builder, it’s also important that you recognise the differences between sole traders, limited companies, and partnerships as this will impact the type of construction company you start. Take a look at our guide to choosing the right business structure  to compare the different liabilities, costs and tax issues you’ll need to consider. Now is also a good time to assess good construction company names; read more in our guide on how to choose a business name .

Expert Insight – Parm Bhangal, Bhangals Construction Consultants

For Parm Bhangal, managing director of Bhangals Construction Consultants , a childhood love of Lego led to a career building buildings for real. However, he warns that it can be an extremely challenging sector to work in and you need to be emotionally resilient to deal with the setbacks associated with different projects:

“So many things can go wrong on a day-to-day basis and you have to have a really thick skin to own and run a construction company. It isn’t an easy task and, I think a softer, more sensitive person would struggle.

“If you’re not outspoken and you don’t have courage in your own convictions, you get left behind. It requires an element of self-confidence. I wish I’d known that sometimes you have to dig your heels in and have the self-assurance and spirit to say exactly what you want.

“You experience the highest of highs and the lowest of lows – and that can all happen in one week, especially with multiple projects running at the same time. One can really fly and another can hit one stumbling block after another and just go terribly wrong. You need to be ready for that.”

It’s never an easy time to start a construction company in the UK, but the industry does now seem to have recovered from the impact of the pandemic – with ONS figures showing that the level of construction output was 1.4% above the February 2020 pre-coronavirus level.

There are also other encouraging signs within the sector.

Construction output grew by 3.0% in the three months to January 2022, as the government’s ‘Build Back Better’ recovery plan effected huge investment in large-scale infrastructure projects. Moreover, the Construction Products Association expects the industry to grow by 4.3% in 2022.

Such a positive outlook is due to a spending package announced by Chancellor Rishi Sunak in the 2021 Autumn Budget, which allocated £1.8m for brownfield building, as well as £1.7bn from the Levelling Up fund for UK towns and cities.

The government is also focusing on the development of renewable energy projects, pledging £3.9bn to help the country decarbonise its buildings and meet a zero-carbon emissions target of 2050.

Clearly, there are plenty of reasons to be hopeful for construction SMEs. But it is still a time to exercise caution and plan ahead if you’re thinking of setting up a new business. Despite the optimism, many big-name companies including £64m-turnover WRW Construction have gone into administration in the past couple of years.

According to the Federation of Master Builders , there are currently 300,000 construction companies in the UK – 99% of which are SMEs.

When you’re starting your own construction business, thorough planning is essential to make sure you can cut through the loud noise of your competitors and attract business.

Market research

Before you even think about starting your own construction company, you should do your market research in order to determine the profitability of your business idea.

This process will also allow you to identify whether or not there are already construction companies operating in your area, providing the same services as you. Sussing out your competition will give you an idea of how your business will fit into the market place and whether it has the potential to thrive.

As part of your market research, it’s also worthwhile looking into what other construction companies are charging in the area you plan to start your business in, as well as what kind of reputation they have.

If there are already a number of credible construction companies offering the same services in the locality, and you cannot identify how your business will fit in, it might be worth rethinking your business plan and your business idea.

Of course, one of the most effective ways to find out whether there is a demand for your services is to get out into the community and speak to local residents. This will allow you to gain a first-hand insight into whether the target market you will be looking to engage with feel that there is a need for a new construction company or contractor firm.

Be sure to always consider the demographics of the area you are targeting, as people need to be able to afford the construction services that you plan to offer.

Writing your construction company business plan

The importance of a thorough business plan should not be underestimated. A detailed business plan will not only allow you to establish clear business goals and procedures, but it is also widely recognised in the business world as an essential step in getting your idea off the ground.

A business plan is a formal document that covers everything you need to know about successfully starting and running your business. If you are planning on approaching a potential lender, you will also be asked to provide your business plan so they can assess the profitability of your idea.

What should your business plan contain?

Your business plan should be split into several sections outlining in detail how you plan to structure your business. It should explain who your target market is, the kind of construction services you will offer, how many employees (if any) you intend to have, and finally, how you will market your construction business and differentiate yourself from your competitors.

There should also be a detailed section that focuses on outlining how you plan to maintain your construction company, as well as a forecast detailing how much money you expect to make.

Download your free business plan template here .

There are lots of different tools you can use to help streamline fiddly, administrative tasks in your company.

To help with finance and invoicing, small business accounting software is a must. Or, as you’ll be dealing with a long supply chain of customers, CRM (or customer relationship management) tools can help you to keep on top of your sales pipeline.

Project management software is perhaps the most relevant tool for construction companies. As you’ll be dealing with many jobs of various sizes, the right tool can help you to stay on track of deadlines.

Click here to read more about all of the best available software and tools for small businesses.  

If you are planning on setting up a construction business, there are a number of industry specific rules, regulations and tax requirements that you should be aware of including The Construction Industry Scheme (CIS).

This scheme was set up by the government to create a payment handling system that contractors could use to handle payments made by contractors to sub-contractors.

Whether you are setting up your business as a limited, sole trader or partnership company, you will be expected to register under the CIS scheme if your business operates in any part of the construction industry.

According to the government, CIS covers most construction work for:

• A permanent or temporary building or structure
• Civil engineering work like roads and bridges
• For the purpose of CIS, construction work includes:
• Preparing the site, e.g. laying foundations and providing access works
• Demolition and dismantling
• Building work
• Alterations, repairs and decorating
• Installing systems for heating, lighting, power, water and ventilation
• Cleaning the inside of buildings after construction work

Construction health and safety regulations

It goes without saying that health and safety is important in all business environments, however it is particularly important crucial within the construction industry due to the demands that come with the job role.

It is paramount that both you and your prospective employees have the necessary skills, knowledge and expertise to confidently carry out their day-to-day role in a safe manner. It is your responsibility to ensure that all members of your staff are up to the job and you will be expected to solve any skill gaps.

For detailed health and safety regulations you should visit the Construction Skills, the Sector Skills Council and the industrial training board as they help business solve skills gaps.

Building regulations

Prior to starting a  construction company, you should have a solid understanding of building regulations as these are the standards of design and construction that will apply to the majority of commercial and private projects you will work on.

You should understand what building regulations cover, how they are enforced and who is responsible for them. The same applies for planning permission regulations.

To learn more, see The Health and Safety Executive’s detailed breakdown of UK Construction Regulations .

Charging VAT

If you’re expecting your annual turnover to exceed £85,000, then registering for VAT is compulsory. If you’re annual turnover is lower than £85,000 then the decision is voluntary.

VAT is charged on the vast majority of transactions in the UK, especially within the construction industry. If you are VAT registered you will be able to charge VAT on all of the goods or services you provide, and then claim back the VAT on goods and services you purchase for your business.

You should be aware that there are three different types of VAT, standard, reduced and zero however, nearly all construction work completed within the construction industry is charged at a standard rate of VAT.

Contrary to popular belief, the vast majority of start-up businesses are now able to get up on their feet with relatively modest budgets, especially in more traditional sectors such as the construction industry.

In fact, industry estimates indicate that the average budget for a new construction UK start-up business is approximately £5,000.

This is because many construction companies do not require a base to work from as much of their manual labour is completed off-site. This means that business owners can complete much of their paperwork and communications from home.

If you are considering starting own construction company, it’s highly likely that you have already worked in the trade, which means you will have the necessary equipment and maybe even regular clients to get your business off to a good start.

Of course, despite the low cost of starting your own construction company,  you should still plan ahead and cut down on how much you think you will need to borrow. The number of employees you will need to hire is a particularly high overhead that needs considering.

Construction companies are currently combatting a talent crisis that is hurting a lot of SMEs, as a skills shortage means there is a low number of people who are eligible to work in construction jobs.

There are various government funds and schemes available to help sub-contractors tackle the issue – such as apprenticeships and work placements. However, recruitment is still a major topic in the industry, and one that you’ll need to be aware of in order to attract fresh new talent to your company.

Read our guide to learn more about how construction SMEs can attract future talent to their workforce.

How much you will earn from setting up your own construction company is difficult to say, as every construction company is entirely different. However, as a general rule of thumb, you should expect to be paid around 8% of your total sales as salary – if you have been in business for less than five years.

Of course, if you survive the five-year point (which you should if you remain focused, motivated and driven!) your construction company should continue to go from strength to strength.

As you gain more experience operating within the world of business, you will start to notice even more opportunities for growth and progression which should allow you to increase your salary to 10% of your total sales after year five. Going forward, you can begin to increase your salary steadily based on the income your construction company is generating.

Construction finance: cashflow solutions for construction businesses

Do bear in mind that you will need to keep a strict eye on cashflow in the construction industry as you may have high upfront costs for materials and labour before earning money from your efforts. One way to combat this is to use an invoice finance service, which allows you sell your unpaid business invoices to a finance company and free up most of their value to make new purchases and payments.

This is known as ‘invoice factoring’, and it’s so common within the construction industry that there are many finance companies who offer dedicated ‘construction finance’ invoice services. Take a look at our dedicated guide to how construction finance works to learn more.

  Remember:

• Consider your options carefully first when forming your company: do you want to be an independent contractor or are you looking to own a construction firm? 
• Do your market research, analyse competitors in your local area and find a niche where your construction business will stand out to customers.
• Write a business plan to steer your construction company in the right direction – and stick to it.
• Adhere to the rules and regulations of the construction trade; make sure you comply with health and safety, building, VAT and CIS regulations.
• It’s possible to start a construction company for as little as £5,000 so do your research and you could well be on your way to making your construction company a success!

Useful contacts:

• The Construction Industry Scheme (CIS)
• Construction Industry Research and Information Association (CIRIA)
• The Construction Industry Council (CIC)
• Confederation of Construction Specialists
• The Health and Safety Executive

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

• Getting Started

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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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Upmetrics is an intuitively designed business planning app with more than 400+ sample business plans . Our business planning tool features AI assistance that will transform your business writing process. Not only that, it allows you to design, collaborate, and share your business plan in real-time with your team.

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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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Construction Company Small Business Idea and Business Plan

Starting your own small business in the UK isn’t easy but having a properly developed business plan will help you achieve success.

To start a Construction Company business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Construction Company business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Construction Company business isn’t easy, but when done right, it can lead to a lot of success.

To help you get started, you can use the free business plan builder tool to develop your own Construction Company business plan.

The business plan template is very easy to use, is interactive and will quickly and easily help you create your business plan just by answering the needed questions about your small business idea.

Create your own Construction Company business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by UKStartups.org to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Construction Company small business in the UK.

When you have completed your Construction Company business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Construction Company business startup.

If you are looking to limit your startup costs when starting up a Construction Company small business in the UK, this free business plan builder tool will be it.

Starting a Construction Company business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Construction Company business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Construction Company business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Construction Company industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Construction Company businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Construction Company business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Construction Company business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Construction Company business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Construction Company business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Construction Company business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via UKStartups.org and through the Small Business Startup Platform as a member.

If starting a Construction Company business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

• Hair Replacement Service
• Art Supply Store
• Association or Organization
• Guitar Instructor

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Your New Construction Company: How To Start It, Grow It And Succeed With It

Starting a construction company can be a robust pathway to success, offering the potential to work on varied projects from small renovations to major developments. This guide provides detailed advice on setting up a construction business, covering everything from initial planning to daily operations, helping you lay a solid foundation for a profitable and sustainable business.

What Does It Take to Start and Run a Construction Company?

Starting a construction company requires more than just knowledge of building and construction; it demands strong project management skills, understanding of regulations, and the ability to manage finances effectively. Success in this industry is built on reputation, reliability, and the quality of your workmanship.

How Can You Identify Your Target Market?

• Research local construction demands—whether residential, commercial, or industrial.
• Analyse market trends, such as sustainable construction practices or technology integration.
• Identify potential clients in your area, from private homeowners to developers and government bodies.

What Are the Essential Steps for Conducting Effective Market Research?

Effective market research is vital for understanding your competition and identifying gaps in the local market. Use online resources, industry reports, and direct surveys to gather data. Attending industry expos and networking events can also provide valuable insights.

How to Choose the Best Location for Your Construction Company?

Select a location based on the proximity to your target markets, ease of access to major transport routes, and availability of suppliers. Having a base that is central to your primary area of operations can significantly reduce costs and response times.

What Are Effective Ways to Advertise Your Construction Business?

• Develop a professional website showcasing your projects and client testimonials.
• Utilise social media platforms to post updates on current projects and share industry news.
• Invest in local SEO to ensure your business appears when local clients search for construction services.

What Should Your Business Plan Include?

Your business plan should outline your business goals, services offered, market analysis, operational structure, and financial projections. It should also detail your strategies for marketing, growth, risk management, and staffing.

What Financing Options Are Available for Starting a Construction Company?

Consider traditional financing options such as bank loans or lines of credit. Government grants or venture capital may also be available, especially if your business model involves innovative construction techniques or sustainable practices.

How Do You Set Up Your Construction Company Operations?

Setting up operations involves acquiring the necessary licenses and permits, purchasing equipment, and establishing a reliable supply chain. It’s also important to implement robust safety protocols and insurance to protect your business and employees.

How to Develop Effective Marketing and Sales Strategies?

Focus on building strong relationships with key clients and suppliers in the industry. Offering excellent customer service and following up on leads promptly can help convert inquiries into contracts. Consider hiring a sales professional if necessary to boost your business development efforts.

Why Is a Digital Presence Important for Your Construction Company?

A strong digital presence can help showcase your expertise and past projects to potential clients. It also provides a platform for engaging with clients and the community, and for marketing your services effectively.

How Can You Ensure Excellent Customer Service and Retention?

Deliver consistently high-quality work and maintain open lines of communication with clients throughout each project. Implementing a feedback mechanism can help improve services and increase customer satisfaction, fostering long-term relationships and repeat business.

Starting a construction company is a significant undertaking that can lead to a rewarding and profitable enterprise. With careful planning, a focus on quality, and strategic marketing, your construction business can build a strong reputation and a stable financial future.

Read on by clicking the 'More Essential Info' link at the top of this page.

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CONSTRUCTION BUSINESS PLAN: Templates & Best Easy Guide In 2023

• by Kenechukwu Muoghalu
• August 13, 2023

Table of Contents Hide

What is a construction business plan, #1. licenses and permits, #2. workforce and equipment, #3. target audience, #4. discover safety requirements, #1. executive summary, #2. mission statement, #3. market analysis, #4. management team, #5. products and services, #6. marketing plan, #7. financial plan, #8.  appendix, construction company business plan sample template, need help with your construction business plan, final thoughts , what are the main sources of revenues and expenses for a construction company, how do you get funding for your construction business plan, what are the main types of construction companies.

The responsibility of project managing any construction company job is hugely challenging, and it is the only factor that can make a difference in getting a business plan. Imagine managing budgets, and deadlines, keeping clients, and ordering resources all at once. What time do you have to find more leads or organize your finances? A construction business plan is what keeps you sane and ensures you keep building your business to its full potential. This article will further explain the essence of a construction company business plan and why you need a sample template when creating one.

To avert the stress of composing a business plan by yourself, you can also choose to make use of our ready-made construction business plan . 

A construction business plan is a living document that can help you with planning your finances, organizing a business project, having a stress-free operational strategy, and also knowing your customers. A business plan can perform a whole number of other functions that you didn’t think were possible in your construction company. 

Although you might believe that having the right knowledge of your company is the only important thing that can keep your construction business going, a proper business plan is equally important. If you wish to operate a less chaotic business, then get a business plan. But for this to happen, you need to read on and discover how you can write a business plan. 

Things to Consider Before Writing a Construction Company Business Plan 

Before getting down to writing your business plan, you need to consider a few sample points that your construction company’s business plan will need.

Before writing, you will need to do research on the necessary licenses and permits that your business needs to become official. These permits can differ from state to state, so it is best to get a list of the legal documents you might need before you start up your business. 

You will also need to get a list of the equipment your business will need to function effectively. Before writing your business plan, don’t forget that your construction company needs a skilled workforce that can help make a project deal happen. So it is best to source the best because they also determine the reputation of your business. You will also need to introduce your workforce while writing your business plan. 

A target audience is essential for any business to boom. Before you start, take your time to research your target audience and their preferences. As a construction company, knowledge about your target audience comes in very handy when you are pitching a project and writing a business plan. Hence, try to get in-depth information about them. 

A construction site is mostly prone to accidents, so before you start up a construction business, you need to inquire about the tools. Take measures that will ensure the safety of your workforce while on the construction site. These actions will help you avoid accidents and injuries. 

How to Write a Construction Business Plan

Some important sections should not be left out when writing a good construction business plan. Let’s analyze the contents of these sections. 

The executive summary consists of an overview of all the major sections of your business plan. It is more like a summary of what your business plan is about. This section should be the first page of your business plan because it is the most important section, especially if you are looking forward to getting your business funded. Make sure to get all-around information on your mission statement, management team, marketing analysis, and financial plan.

Your mission statement should be a clear and concise overview of your business and the goals you are hoping to achieve. It gives your reader an immediate understanding of what your company is about. While writing this section, make sure to include a summary of the business, mission statement and goals, and objectives. 

Before filling up this section, you must have conducted thorough research on your market to know their preferences and understand the industry. Write about your findings in this section. This includes its strengths, weaknesses, and competitors. Ensure that you include your industry analysis, market trends, and market segmentation in this section. 

In this section, you will give a brief introduction to your workforce. You should include the company’s organizational structure and skills. Onboarding clients or inspecting construction projects can be their roles and responsibilities. If you feel any need for an additional skill, then you can add it in this section and indicate how it will benefit the company.

In this section, you will have to give detailed information on the type of services your construction company offers. You will also explain how your selected products and services will benefit clients. Also indicate the research you have done for the services you will be providing. 

Read Also: Starting A Construction Company UK: Step By Step Guide

To attract customers and get constant sales, you need to have a marketing plan . You will need to advertise your business, products, and services. This will help create awareness for your brand and attract potential customers. When reaching out to your target audience, make sure to stand out from your competitors and be one step ahead of them. Get creative to make your company appear different and unique from a regular construction company, get creative. 

To advertise, you can use social media platforms or fliers. In summary, your marketing plan should contain a description of your services, marketing strategy, advertising strategy, and sales strategy. 

A well-composed financial plan is an important factor in running a successful construction business. Your financial plan is one section of your business plan that requires attention. It should include your profit and loss statement, balance sheet, and projected cash flow. If you are looking for a startup fund, you can include how much your business will need for it to be operational. 

Lastly, your appendix should include supporting documents and materials that will validate the information you provided in some sections of your business plan. They can be credit histories, resumes, licenses, permits, and other related legal documents.

Starting a construction company business plan comes with loads of responsibilities and to curb them, you will need a sample template. This construction business plan template checklist will help keep your activities in check while reminding you of the ones that are yet to be completed. While strategizing for your new business, always check out this list to see what you are missing out.

• Raise capital 
• Pick a niche
• Create your business plan
• Get a license
• Get a winning team
• Advertise your business
• Get customers 

How far have you gone with creating your business plan? Does it seem too tough to maneuver? Don’t fret, it’s no big deal. It is normal to experience some level of difficulty while trying to write a business plan, especially when it is your first time. 

Why don’t you opt-in for a ready-made construction business plan to save yourself this stress? At BusinessYield Consult, we have helped entrepreneurs like you create professional business plans for their new startups. Get your unique plan here and kick off that business.

If you have plans to grow your construction company into an empire, then having a business plan is a good way to start. One cannot emphasize enough having a plan that can deal with all hiccups your business goes through and yet sets out a clear road map that will lead you to success. So if you want those throbbing goals you have for your company to manifest, then go ahead and start planning. 

Most construction companies get their source of revenue from individual contracts. They may require new homes, remodelling projects, or commercial projects. And expenses are mainly based on their office space rent, paying salaries to workers, and buying equipment.

To get access to the funding, you can either go through bank loans, personal loans, commercial loans, or a line of credit. If you don’t wish to take loans, you can ask for funds from angel investors or use your savings. When you get lucky enough, you can benefit from funding opportunities that mostly cover necessary tools, machinery and other equipment. 

Most construction companies are rather classified by the type of services they perform for clients. Some construction companies are new home builders, some are renovation contractors and others are commercial construction companies. 

To get access to the funding, you can either go through bank loans, personal loans, commercial loans, or a line of credit. If you don't wish to take loans, you can ask for funds from angel investors or use your savings. When you get lucky enough, you can benefit from funding opportunities that mostly cover necessary tools, machinery and other equipment. 

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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Construction Company Business Plan Template

Are you interested in starting your own construction company Business?

Legal Requirements and Regulations

Human resources, marketing and advertising, operations and project management, sustainability.

Why write a business plan?

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
• Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
• Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
• Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
• Business plans allow you to position your brand by understanding your company’s role in the marketplace.
• Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
• Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

• Executive Summary
• Company Overview
• Industry Analysis
• Consumer Analysis
• Competitor Analysis & Advantages
• Marketing Strategies & Plan
• Plan of Action
• Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at [email protected] . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect construction company business plan, fill out the form below and download our construction company business plan template. The template is a word document that can be edited to include information about your construction company business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning

Want a bespoke business plan for your construction company business, our expertise, construction company business plan template faqs, what is a business plan for a/an construction company business, how to customize the business plan template for a construction company business, what financial information should be included in a construction company business plan, are there industry-specific considerations in the construction company business plan template, how to conduct market research for a construction company business plan, what are the common challenges when creating a business plan for a construction company business, how often should i update my construction company business plan, can i use the business plan template for seeking funding for a construction company business, what legal considerations are there in a construction company business plan.

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Creating a Business Plan for Your New Construction Company

16 jan 2023.

The UK’s construction industry has been growing considerably since the disruption that was the coronavirus pandemic; according to ONS data, the industry’s output price growth exceeded 10% between September 2021 and 2022 . These figures are particularly promising for those looking to start up a new business in the industry – but starting up a business of any kind is not as simple as starting to trade. If you are considering instituting a company in construction, how should you pull together your business plan?

Executive Summary

An executive summary is essentially a broad-strokes description of your prospective business, no more than two pages in length. Typically, executive summaries are used to assist business owners in applying for business loans or private investments, as a crib sheet for advisers and investors to quickly get on board with the nature of your company. Here, though, it can also be useful to help you finalise your thinking about the nature of your business.

Business Structure

Speaking of which, another early stage in your business plan should be to settle on the structure of your business. Through your executive summary, you will have settled on the specifics of your business – that is, what exactly you are providing to customers, and in what form. You might be starting a construction firm with a specialism in domestic property, or a business that deals solely in renovations of historic structures; alternatively, your business might be purely mercantile in nature.

Whatever the specifics of your business, you will need to decide whether you are operating as self-employed or as a limited company. Self-employment simply means any profit your business makes is treated as income and taxed accordingly. If you intend to hire salaried staff, you will need to set up a limited company .

Market Research & Competitor Analysis

Next, you will need to give careful consideration to how your business fits in the wider construction industry – both in terms of your consumers and competition. Market research will give you some key insights into the demographics you should be targeting – and potential avenues for profit in your local area. Meanwhile, competitor analysis will give you a clear picture of the local landscape, and how hard you may need to fight for market presence.

Turning plans into action can often seem difficult, but with your research and structure decided upon, the hard work is done. All that is left is to create a realistic short-term roadmap for starting up – starting with the acquisition of tools and supplies and ending with the acceptance of your first client.

Logistics, Administration, and Documentation

Though last on the list, this is of extreme importance to the legitimacy of your new company. There are several logistical and administrative hoops you will need to jump through, particularly if you have instituted a limited company. In undertaking active work on behalf of others, your workers and customers will expect your builder’s insurance policy to cover a number of things – including worker and client injury. Without insurance, one wrong move could gut your finances.

Likewise, you must record all financial information as robustly as possible. HMRC tax audits are more likely for business entities that bring in more than £85,000, making it all the more important that profits, wages, and expenses are properly recorded. It may benefit you to budget for a third-party accountant to structure this on your behalf. 

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Construction Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Construction & Engineering Industry » Construction Business

Are you about starting a construction company ? If YES, here’s a complete sample construction business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a construction business. We also took it further by analyzing and drafting a sample construction marketing plan template backed up by actionable guerrilla marketing ideas for construction businesses. So let’s proceed to the business planning section.

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A Sample Construction Company Business Plan Template

1. industry overview.

The construction industry can comfortably boast to be responsible for the infrastructural development of the world. As such, the development of any country or city can be said to be the handiwork of construction companies and other stakeholders.

In other words, all the edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers and massive structures that you see around are all products of the construction industry. Starting a construction business is capital intensive simply because of the type of heavy duty equipment that is required to carry out a construction project and also the cost of managing a large workforce.

Despite the fact that the construction industry requires huge start – up capital, the industry is highly profitable, especially if you have the expertise and capacity to deliver quality jobs. The major clients for construction companies are governments and the private sector.

Construction giants all over the world head towards developing countries, because they know that they are going to get juicy construction contracts there. Unlike in advanced economy, in developing countries and undeveloped world, there are loads of construction works to be done.

The fact that they have infrastructure deficit means that the government must be up and doing in terms of road constructions, bridge construction, public facility construction (hospitals, schools, office facilities and estates et al) and dams constructions.

After a war, the construction industry is one of the major stakeholders that contribute in the rebuilding of a country. In so doing, they work with governments in ensuring that basic infrastructures are restored and of course it will always ends up a win – win situation for both parties.

The government gets what they want and the construction company and contractors get good returns for delivering the projects.

Over and above, the success of a construction company to a larger extent depends on their relationship with the biggest clients in the industry; the government of any country. No doubt there is always enough construction contracts to go round as long as a construction company is competent and well positioned. They won’t lack construction contracts from both the government and the private sector.

2. Executive Summary

Shannon Berg Construction Company is an international construction company that has its headquarters in Grand Rapids, Michigan – USA. The fact that we are based in the united states does not in any way restrict our scope of operations to the United States of America.

We are an international construction company and we work for our clients (governments and private sectors) in any part of the world.

Shannon Berg Construction Company will be specialized in the constructions of skyscrapers, bridges, stadiums, roads, dams, Office complex, shopping malls, schools, campuses and estates et al. As a matter of fact, we are going to be known for delivering world class structures all over the globe.

Creativity, excellence and timely completion of construction projects will be our signature. We intend starting our construction business on a small scale in Grand Rapids, Michigan, but we have a bigger picture – to have our presence in any part of the world that our clients wants us to work.  We hope to achieve this feat within the first 10 years of launching the company.

As part of our plans to make our highly esteemed customers our number one priority and to become a global construction brand, we have perfected plans and strategies that will enable us work with our clients in delivering projects that can favorably compete with the best in the industry at an affordable and reasonable price within the stipulated completion date barring any unforeseen circumstance.

Shannon Berg Construction Company is fully aware that starting a construction business requires huge capital base, which is why we have perfected plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any construction project that comes our way, as long as the project is duly commissioned by the required authority.

Shannon Berg Construction Company will be owned by the principal partner; Engr. Shannon Berg and other partners (Nani David, Lois Scotland and Christopher Parkston). They also have plans in the pipeline to sell the shares of the company in the nearest future to interested investors who would want to be part owners of the company.

Shannon Berg who is the principal partner has well over 25 years of experience in the construction industry. Before starting his own construction company, he was a senior project manager and consultant with one of the world’s largest construction company based in Germany.

Engr. Shannon Berg, Nani David, Lois Scotland and Christopher Parkston will be the major financier of the company. Nonetheless, we have made a concerted decision not to limit the number of investors with similar investment ideology that may want to invest in the business.

This is necessary in order for us to be able to retain financial flexibility. Ideally, our plan is that no investment will be less than $1,000,000, which would purchase a 1 percent equity position. It is our desire that all equity partners be limited partners.

3. Our Products and Services

Shannon Berg Construction Company is a construction company that is set to undertake both small construction projects and massive construction projects for governments, private sectors and for individuals which is why we do not intend to place limitations of the scope of the projects we handle and what we do.

We know that if we are good at what we do, it will make it easier for our brand to grow beyond Grand Rapids, Michigan to other parts of the United States of America and the rest of the world. Our business offering are listed below;

• Road Construction
• Bridge Construction
• Dam construction
• Airports and Helipads Construction
• Seaports Construction
• Skyscrapers construction
• Estate construction
• Public facility construction (hospitals, schools, shopping malls, office complexes and industrial facilities et al)
• Construction of residential facilities
• Property Makeover Services
• Construction Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision is to build a first class construction company that will have active presence in North America, South America, Africa and Asia.
• At Shannon Berg Construction Company, our mission and values are to help governments, the private sector and individuals in the United States of America and throughout the world realize their dreams of building a world class structure that can compete on a global stage with the best in the construction industry.

Our Business Structure

Shannon Berg Construction Company intend starting small from Grand Rapids, Michigan, but with a vision of growing the business to becoming a global construction brand with presence in all the continents of the world. In order to achieve this vision, we just have to position our company for growth and ensure that we hire dedicated and highly competent employees at all levels.

Shannon Berg Construction Company will ensure that we build a team that will work together towards achieving the company’s vision. We will build a business that has the right structures and process in place that can support growth; a business that runs on autopilot.

In view of the above, we have made provisions for the following position in our organization based on the size of the company we intend starting but as the business grows, we will create senior level positions and also create a structure that will support the business growth at every growth and expansion stage;

• Chief Executive Officer (President)

Project Manager

Civil Engineer

• Structural Engineer
• Quantity Surveyor

Land Surveyor

Company’s Lawyer/Secretary

Admin and HR Manager

Business Developer

• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for the day to day running of the business
• Responsible for handling high profile clients and deals
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervises projects
• Ensures compliance during project executions
• Provides advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represents the organization’s interest at various stakeholders meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
• Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
• Ensures that sites meet legal guidelines, and health and safety requirements
• Assesses the environment impact and risks connected to projects
• Responsible for judging whether projects are workable by assessing materials, costs and time requirements
• Draws up blueprints, using Computer Aided Design (CAD) packages
• Discussing requirements with the client and other professionals (e.g. architects and project managers et al)
• Responsible for managing, directing and monitoring progress during each phase of a project
• Responsible for creating building designs and highly detailed drawings both by using the hands and by using specialist computer – aided design (CAD) software
• Works around constraining factors such as town planning legislation, environmental impact and project budget
• Writes and presents reports, proposals, applications and contracts
• Adapting plans according to circumstances and resolving any problems that may arise during construction
• Works with project team and management to achieve a common goal
• Responsible for applying for planning permission and advice from governmental new building and legal department.
• Responsible for undertaking land surveys/measurements using a variety of specialist technical equipment such as theodolites, laser alignment devices and satellite positioning systems et al.
• Responsible for presenting data to clients
• Responsible for producing and advising about construction plans and drawings
• Responsible for advising about technical matters and whether the construction plans are viable
• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/ securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develops company policy and position on legal issues
• Researches, anticipate and guard company against legal risks
• Represents company in legal proceedings (administrative boards, court trials et al)
• Plays a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.
• Identifies, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information (manage the company’s CRM system)
• Represents the company in strategic meetings with government agencies, private sectors and contractors
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned the line manager

6. SWOT Analysis

Surviving in the business world as a construction company requires more than knowing how to deliver standard projects but also how to network with key people that matter; decision makers that can decide who a project is given to and all that.

We know that it will be a bit difficult to compete with already established construction companies in the United States especially because we are new in the industry.

In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of a Dr. Joe Whyte, a renowned HR and business consultants in the United States of America to help us run a SWOT analysis.

It is important that we know our strength, our weaknesses, and the opportunities that we can leverage on in the industry and the threats that we are likely going to be confronted with.

With that, we will be able to map out strategies that will not only help us to survive in the industry but also to build a global construction brand. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Shannon Berg Construction Company;

Shannon Berg Construction Company can confidently boast of having a competent and highly experienced management team who are regarded as some of the best hands in Michigan.

Although we are a new construction company, but our president and board of trustee are respectable people in the United States of America who have served the US government in various capacity; we are a construction company that has the right network that is suitable for the kind of business we are into.

Well the fact that we are a new construction company could count as a weakness. It is normal for clients to think twice before awarding construction contracts to newbies in the industry.

Another weakness that can count against us in the industry is the fact that we may not have the financial muscles to drive the business the way we ought to drive it. We require huge financial base to be able to acquire some of the latest heavy duty construction equipment.

• Opportunities:

Our business concept, our mission and vision puts us at an advantage in the industry. We will start small to build trust within Grand Rapids, Michigan and there are loads of opportunities for us there simply because we are well positioned to work with both the state government and the highly organized private sector.

Generally in the construction industry, both the already established construction companies and start – up construction companies are subject to threat from government policies, global economic downturn and unforeseen natural disasters (disasters that may cause setback).

These are the threats that we are likely going to face as a newbie construction company in Grand Rapids, Michigan. Another threat that we are likely going to face is the arrival of a big construction company in the location where our business has strong presence.

7. MARKET ANALYSIS

• Market Trends

The trend in the construction industry is that construction companies are always coming out with processes that will help them achieve more within a short period; construction jobs can be time consuming especially the construction of massive infrastructures.

Most players in the construction industry are fully aware that the government of any country or state is the biggest clients they can get and they do all the lobbying and horse trading to ensure that they get government contracts.

No doubt there are loads of big time investors that have stakes in the construction industry, but one thing is certain, there is room big enough to accommodate both the big construction companies and the small construction companies.

What smaller construction companies need to do to survive in the industry is to concentrate on developing estates, schools, hospitals and hotels et al before bidding for big construction contracts like road construction, bridge construction, dam construction and skyscrapers et al.

Another obvious trend in the construction industry is subletting of contracts. It is now obvious that construction giants leverage on their brands to win contracts and in some cases after they have won the contract.

They will go ahead to sublet the contract to smaller construction company that they trust can deliver to execute the project at an agreed fee that will be good enough for both parties to make profits. Smaller construction companies position themselves to be able to leverage on such opportunities once it present itself.

8. Our Target Market

Our target market cuts across governments at all levels and countries, the organized private sector and people of different class and from all walks of life. We know that our selling points will be our excellent and timely delivery of construction projects using global best practices.

We will start with the local market, people, organizations and the government in Michigan, but we hope to spread our nets to clients from other states in the US and thereafter other countries of the world.

Shannon Berg Construction Company will be known for working with smaller clients (various individuals) as well as working for bigger clients (various governments and organized private sector). Below is a list of the people and organizations that we have specifically designed our services for;

• Organized private sector (Corporate organizations)
• Land Owners
• Businessmen and Businesswomen
• University Campuses
• Foreign investors who are interested in owning properties in the United States of America
• The government of the United States of America (Government contracts)
• The governments of other nations of the world

Our Competitive Advantage

We are quite aware that there are big – time investors and construction companies who are well recognized in the construction industry, and we maybe have to compete with them when it is time to bid for juicy government contracts.

It might be challenging competing as a newbie in the construction industry, especially in a highly organized market like that of the United States of America, which is why we were deliberate in choosing our board members. Our competitive advantage is not limited to the crop of highly experienced professions that are members of our management team but also our board members.

Our board members are highly respected professionals in the United States who have served the government of the United States at various capacities; people who are accomplished business gurus and people who have the right connections and experience to make things happen with little or no struggle. For us, it is indeed part of the competitive advantage that we are bringing to the market.

Another positive for Shannon Berg Construction Company is the fact that our Chief Executive Officer / President is a renowned Civil Engineer, he has robust experience in the construction industry and he has worked extensively as a senior project manager for one of the world’s leading construction companies.

He is sure going to bring is experience, expertise and network (connections) to make Shannon Berg Construction Company one of the leading construction brand in Grand Rapids, Michigan and also active player in the global construction market.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Shannon Berg Construction Company was established with the aim of maximizing profits through delivering quality and standard construction works for our highly esteemed clients. We will ensure that we generate income from every available means within the construction industry. Below are the sources we intend exploring to generate income for Shannon Berg Construction Company;

• Construction of residential apartments

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

We have relationship with major stakeholders in the real estate and construction industry in Grand Rapids, Michigan and also in order states in the US and we are sure of getting key construction contracts to kick start of business. Below are the projections that we were able to come up with for the first three years of Shannon Berg Construction Company;

• First Year-: $2,000,000
• Second Year-: $3,500,000
• Third Year-: $5,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that all things that will facilitate easy flow of construction contracts. From our calculations, we are likely going to make a minimum of 30 percent profits after task from executing key construction projects.

• Marketing Strategy and Sales Strategy

We have been able to clearly define our target market and have documented this in our construction marketing plan. We know how to get them to hire our services which is why we have decided to adopt some of the winning formula that construction giants utilize to win major construction contracts.

We know that it will take different marketing and sales strategies to win small clients and bigger clients. For example; there are requirements a construction company would hate to meet before they can be awarded a government contract. We have put all these factors in place before creating a workable marketing and sales strategy for Shannon Berg Construction Company.

Shannon Berg Construction Company is fully aware of the bureaucracy and horse trading that exists in bidding for construction contracts from the government and even the organized private sector, which is why we were able to put protocols in place to hire some of the best business developer to handle our sales and marketing.

No doubt, our sales and marketing team will be recruited based on their vast experience in the construction industry and their ability to fit into our Business model. We are going to pay more emphasis in the training of all our employees so as to give them all they would need to help the company achieve its aim and objectives.

Our goal is to become one of the leading construction companies in Grand Rapids, Michigan and we know we can achieve this by ensuring that our sales and marketing team are delivering on set targets. Shannon Berg Construction Company will adopt the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to all the corporate organizations and government offices in Grand Rapids, Michigan and other States in the US.
• Promptness in bidding for contracts
• Advertise our business in real estate/properties magazines and websites
• List our business on yellow pages
• Promote our business on satellite TV stations and radio stations.
• Attend expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/property to them
• Leverage on the internet (social media platforms and our official websites) to promote our business

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. First and foremost, we want our brands to be visible and well communicated, which is why our publicity strategy have been well crafted to help us achieve our aims and business objectives.

All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our property development business;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows
• Utilize our company’s website in promoting our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ et al
• Install our Bill Boards on strategic locations

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent and world class construction projects.

We are quite aware that there are major players in the construction industry in the United States of America who are not interested in small business deals and that is why we have positioned Shannon Berg Construction Company to take on such contracts.

Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopefully that whatever price we bill our customer will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way going to affect the quality of our construction projects.

• Payment Options

Our payment policy in Shannon Berg Construction Company is all inclusive because we are quite aware that different people prefer different payment options as it suits them, but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

• The Total Fee for incorporating the Business in New York: $750.
• The budget for Liability insurance, permits and license: $5,000
• The Amount needed to acquire a suitable Facility with enough space in Grand Rapids, Michigan (Re – Construction of the facility inclusive): $500,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $15,000
• The cost for acquiring heavy duty construction equipment: $2,000,000
• The Cost of Launching a Website: $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
• Working capital (investment fund): $3,000,000 (3 Million US Dollar)

Going by the report from our research and feasibility studies, we will need about $7,000,000 (7 US Million Dollars) to set up a construction company in Grand Rapids, Michigan. It is important to state that most of the heavy duty construction equipment that we will work with will be leased.

This necessary because some of these equipment are really expensive and it won’t be economical for us to acquire them from the start.

Generating Funding/Startup Capital for Shannon Berg Construction Company

• The Chief Executive Officer/President Engr. Shannon Berg will generate 20 percent of the start – up capital from his personal savings and sale of his stocks
• 30% of the capital will be generated from key partners (Nani David, Lois Scotland and Christopher Parkston)
• 50% of the capital will be sourced from banks

14. Sustainability and Expansion Strategy

Shannon Berg Construction Company was established with the aim of building a company that will outlive the founders and partners; a construction company that will have active presence in major cities in the world. Part of the vision of the company is to handover the baton of the company from one generation to generation; hence we have perfected our plans to put the right structures in place that will aid our succession plan.

In order to position of company for growth, we have been able to create strong partnerships with the government of the United States of America, organized private sector and construction giants. We are optimistic that we will continue to execute construction contracts for our clients.

Our marketing team will continue to get the needed support and encouragement that they need to be able to deliver on set goals and targets for the organization, and we will continue to improve our processes and structure to meet up with the changing trend in the construction industry.

Lastly, we will not relent in taking calculated business risks when it comes to bidding for bigger government contracts and taking on new business challenges and new business frontiers.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility in New York City: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents (Tenancy Agreements et al), and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Acquiring of heavy duty construction equipment: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant construction bodies): Completed.

• THE SECRET TO SCALING YOUR BUSINESS

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How to Start a Construction Company/Business in the UK?

• FirstHeading

Research Market Demand 

Develop a robust business plan, obtain necessary licenses, certifications and insurances, assemble a strong management team, initiate networking and marketing campaigns, complete initial pilot projects, establish operator efficiencies, access funding support programs, people are a business’ greatest asset, expand through strategic partnerships, seek out ongoing business coaching, final thoughts, get free trades business planner, organise your business & your time to increase productivity by 258%, related posts.

Are you planning to kick start a construction company? If the answer is YES, then bravo you have landed on the right page. We are here to help you with all the essential steps that can make it easy for you to proceed ahead.

We know how competitive this industry is and how challenging it can be to survive with the dominance of major firms. But, the below detailed guide on all aspects including specialized trades can make it easy for you to start a construction company in the UK and get going in the right direction. Let’s get going .

The first step towards establishing a sustainable building construction business starts with meticulous market research. Evaluate demand dynamics across different geographies and construction segments like residential, commercial, infrastructure etc. Identify gaps that could potentially be filled with specialized trades or service offerings that competitors may not provide.

According to industry experts, specialized skills in areas like refurbishment, heritage restoration, green retrofits present immense opportunities for independent operators. Consult with relevant trade coaching experts, associations, local authorities and business coaching for trades to assess viability of different niches based on current demand, future projections and compliance requirements. 

Creating a detailed business plan is imperative to translating market research insights into actionable steps and targets. The plan must clearly define goals, mission, vision and the company’s unique value proposition differentiating it from larger rivals.

Key aspects to cover include operational model details, management team capabilities, target client profiles, competitive strategy, funding requirements and 3-5 year financial projections. The plan must also address risks and mitigation tactics. Experienced advisors can help structure the plan and refine ideas to attract potential investors. Regular reviews will keep the ever-evolving plan aligned with ground realities.

Join Trade Mastermind’s Construction Business Builder Academy and you will learn how to enhance your marketing, increase your sales, and put up the business plan that is required.

Compliant paperwork forms the bedrock of any legitimate construction venture. Front-run registration requirements by securing necessary licenses from government authorities governing business registration, construction activities and trade specializations.

Certifications like Considerate Constructors Scheme registration promote high on-site standards while technical qualifications strengthen credibility. Adequate public liability, professional indemnity and employee insurances provide protection from unforeseen risks. 

No construction company succeeds without dependable leadership and technical expertise driving operations. For new ventures, outsourcing key roles may not feasible, making it crucial for founders to supplement their trade qualifications with complimentary managerial skills through training programs and business coaching for trades .

A lack of existing brand recognition requires start-ups to proactively raise awareness and drive lead generation. Make the most of local trade communities and platforms to introduce specialized offerings and credentials. Engage prospective customers through optimized website, mailers and social media marketing highlighting competence, safety standards and client testimonials.

Leverage relationships with suppliers, developers and main contractors to explore subcontracting opportunities alongside direct pitching to individual property owners and facility managers. Coordinated campaigns across multiple promotion channels will expedite business ramp-up whereas relationship management converts initial projects into long-term clientele.

Nothing establishes credibility better than demonstrable execution prowess on real projects. Hence, start small by selecting technically feasible assignments with payments structured to suit cash flow realities. While procuring work at introductory price points exposes risk of losses initially, it provides much needed experience addressing on-site challenges and refining processes/offerings based on customer and stakeholder feedback for future larger scale projects with enhanced margins. Systematic project monitoring ensures strong deliverables and references for proposal stages.

Lean organizational structures characterized minimised overheads are best suited for bootstrapped ventures. Explore digital solutions streamlining back-office functions like accounting, inventory tracking, payroll management and compliance documentation. Evaluate equipment/vehicle leasing over outright purchase depending on utilization levels to economize on capital outflow. 

Negotiate competitive supply chain and subcontracting rates leveraging growing business volumes while also establishing quality standards and payment clearance protocols. This instills financial discipline imperative for sustained growth.

Government-backed funding bodies like British Business Bank provide financing options including loans, trade credit guarantees and venture capital suitable at different stages. Loans sanctioned against equipment, stock or property being possible options at inception to initiate capex or procure initial contracts. Subsequently, working capital facilities aid scaling while research grants and investors introduce strategic guidance invaluable for transforming promising concepts into scale-ready ventures. 

Consult high-street banks alongside industry players like Build UK to amalgamate the most suitable financing solution suited to goals and risks. Investor readiness requires meticulous financial planning and compliance demonstration.

Related Podcast by Joseph Valente – Tips on Growing Your Construction Business

Aspiring entrepreneurs must remember that employees ultimately drive production and service delivery excellence critical to customer satisfaction, repeat patronage and growth. Hence, initiatives like ongoing skills training, talent recruitment drives, health & well-being programs and fair compensation structures play a big role in motivating staff and reducing attrition costs. 

Mentorship opportunities help empower individuals to independently handle varied responsibilities and address workplace issues proactively. This fosters loyal, engaged workforces integral to long-term business success over mere short-term efficiency gains.

Established partnerships create multiple cross-selling opportunities for expanding client outreach and skills base. Main contractors may outsource certain non-core trades where capabilities are lacking. Like-minded complementary specialist subcontractors could jointly pursue larger projects by combining expertise. 

Equipment/tool rental vendors may extend credit facilities. Industry bodies provide platforms for fruitful cooperation. Regular networking keeps abreast of collaboration potential that enlarges addressed market segments synergistically instead of fragmenting efforts through solo ventures. The key remains mutual trust and shared long term goals.

Constant adaptation underpins surviving industry disruptions while growing to full potential. Seasoned trade and business coaching mentors empower fledgling ventures with invaluable strategic inputs in areas beyond individual technical skills. Wider perspectives on optimizing back-office operations, exploring new verticals, leveraging emerging technologies and upskilling via tailored programs keep leadership agile amid evolving construction realities. 

Participating in initiatives promoting diversity and sustainability gains competitive advantages as well. Overall, ongoing counseling accelerates learning, mitigates risks from costly mistakes and charts higher developmental paths sustainably.

So, diligent groundwork, strong execution focus and long-term strategic vision underpin successful construction company launches. With committed effort across multiple fronts, aspiring business owners can establish thriving, profitable building construction company through prudent leveraging of local industry support systems alongside their in-depth trade coaching accumulated over years. Regular coaching also plays a big role in overcoming limitations and scaling as per ambitions. Good luck!

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The Do's and Don'ts of starting a Construction Business in the UK

21/05/23 - written by Amy Shelton

Back to community articles

Starting a construction business can be a lucrative and rewarding venture. However, like any business, there are certain do's and don'ts that you should be aware of to help ensure your success. This blog walks through the key things you could consider when starting a construction business in the UK.

1. Creating a business plan:

A solid business plan will help you secure funding and guide you through the early stages of your business. It should outline your business goals, marketing strategies, and financial projections.

2. Legal requirements:

Starting a construction business in the UK requires obtaining necessary permits and licenses.You'll also need to research the legal and regulatory requirements for starting a construction business in the UK.

3. Build a strong team:

A successful construction business requires a strong team. Hire employees who are experienced, reliable, and skilled. Consider offering ongoing training and development opportunities to retain your best employees.

4. Invest in the right equipment and tools:

High-quality equipment and tools are essential for any construction business. Invest in the right tools and equipment to ensure the quality of your work and the safety of your employees.

5. Protect your business:

Construction can be a risky business, and accidents can happen even with the most careful planning. As such, it's essential that you have adequate insurance coverage for your business. This includes public liability insurance, employers liability insurance and professional indemnity insurance. Not having the right insurance could put your business at serious risk.

Don'ts:

1. cut corners:.

In the construction business, cutting corners can lead to dangerous and costly mistakes. Always follow best practices and adhere to health and safety regulations. For tips on making sure your construction site is as safe as possible, take a look at our blog all about the 7 ways to reduce the risk of workplace injury .

2. Neglect your finances:

Proper financial management is critical to the success of any business. Make sure to track your expenses, set realistic budgets, and invest in good accounting software.

3. Disregard customer service:

Customer satisfaction is vital to the success of your business. Treat your clients with respect, communicate clearly, and always aim to exceed their expectations.

4. Over work yourself:

Starting a construction business can be exciting, but it's important not to take on more than you can handle. Ensure you maintain a healthy work life balance as this is important for your well-being and productivity.

5. Forget about marketing:

Marketing is essential for any business; you should develop a marketing plan that includes online and offline marketing strategies. This could include building a website, creating social media profiles, advertising in local newspapers, and attending industry events. Effective marketing will help you to reach your target market and build your brand.

Starting a construction business in the UK can be a challenging but rewarding experience. By following these do's and don'ts, you can help ensure that your business is successful and sustainable in the long-term.

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Blog / Small business tips / How to start a construction company

How to start a construction company

Whether you want to be a general contractor or an owner-builder, there are many things to consider when it comes to starting your own construction business: from researching the market to writing a business plan to getting funding.

Knowing where to begin and how to tackle the paperwork will get you started on the right foot. From there, the steps to launching a construction business are pretty straightforward.

In this article, we’ll cover how to research the market, register your company and write up a business plan. We’ll also address what you need to know about industry rules, financing your operation and growing your enterprise.

Table of contents

Do your market research, define and register your construction business, write up a business plan, get to know construction industry rules and regulations, prepare to manage your finances, get clients and grow your construction business, wrapping up.

Any successful startup or small business begins with a clear idea of the current market. You need to know what services are selling and how profitable your idea is before you invest time and capital to create it. 

Here are three essential insights to include in your market research. 

Identify your buyer persona

To frame your business in the best way possible, you need to know who you’re talking to. Defining your “buyer persona” means understanding your ideal customer, including the challenges that brought them to your business and their likes and dislikes.

Aim to know as much about your target customer as you can. You can begin by gathering general information about people seeking your services through online searches and sifting through forum queries. Running surveys and interviewing the types of people you’re aiming to serve are great ways to get firsthand information.

Top Tip: In-depth market research starts with understanding your target customer. To learn more about how to define your buyer persona, including what questions to ask, read our guide on how to conduct market research 🔍 

Analyse the competitive landscape

Looking at what local construction companies are doing can be one of the best ways to vet your own plan. Check the following:

• Are there other construction firms already operating in your area?
• Do they offer the same services you do? 
• What do they charge? 
• What is their reputation in the community?

If the market is saturated with what you’re planning to offer and you can’t put into words what will set your company apart, you may need to rethink your business idea. On the other hand, if you can fill a gap in construction services or offer a significantly superior customer experience, you have good reason to finalise your plans.

To make sure you tick all the boxes, you can visualise how you’ll stand out by organising the information in a chart, like this:

Top Tip: Knowing how to differentiate your construction business can get your idea off the ground and help it become successful. Learn how to find out what the competition is up to and get a handy template in our guide on how to run a competitive analysis 📋

Map your customer journey

Once you have identified your buyer persona and where your business fits in the market, you’ll want to learn how people usually go from curious prospects to converted customers in your area. 

In this important step, you’ll research how other companies typically find leads and convince them to use their construction service, plus how they care for them throughout the project. You’ll want to learn things like:

• If and how they advertise (e.g., wrapping vehicles in their branding)
• How prospects contact them (e.g., business cards or flyers with phone numbers)
• How businesses move customers through the proposal or quotation process (e.g., free quotations or initial meetings)
• What are the next steps when a prospect agrees to hire their services (e.g., sending contracts)
• How do they wrap up services (e.g., invoicing and acquiring testimonials)

Top Tip: You can create positive experiences that your customers will want to share by seeing where you can improve the customer journey. Learn more about the customer journey and how to plan your marketing and sales roadmap in our five-step guide to developing a winning go-to-market strategy 🗺

Once you’ve done your research, you must make decisions about your company. Things like what type of construction business you’ll run and what your business structure will be are foundational to how the rest of your business plan unfolds. 

Follow these three steps to make your company official. 

1. Identify what type of service provider you’ll be

Instead of trying to cater to everyone, use your research and your particular skill set to figure out what types of work you’ll do. Here are three of the most common kinds of startup construction businesses: 

Top Tip: Whatever type of construction company you run, you should be aware of the bookkeeping complexities that apply to your industry. Learn all about what to expect in our complete guide to construction accounting 💡

2. Determine a business structure

Along with the types of services you’ll offer, you should decide what structure you’ll operate under. There are three types, and each has different advantages depending on your needs. They’ll also shape your business plan, so it’s important to decide carefully.

• Sole trader: This is the simplest structure. In a sole trader business, there is no distinction between your personal and business finances—meaning you’re personally responsible for your business’s debts.
• Partnership: This is where more than one person owns the business. You form a partnership agreement that outlines the obligations and rights of each partner to help prevent or settle any disputes down the road.
• Limited company: Here your business finances are separate from your personal finances. Starting a limited company can protect your personal assets from any company troubles and can make you look more professional. However, it does come with more reporting and management responsibilities.

Each structure entails certain accounting responsibilities, and you need to be aware of them to keep things running smoothly.

Top Tip: To manage your construction business responsibly, you’ll need to understand and organise your accounts from the beginning. Get the basics, plus expert insights, in our complete guide to small business accounting 💰 

3. Register your company with HMRC 

Depending on the business structure you choose, you’ll be responsible for different types of reporting, management and accounting. And you’ll need to register accordingly. Here’s a quick overview of what it takes to register each business structure.

• To set up as a sole trader , you’ll need to register to pay tax through Self Assessment . You’ll track your business expenses and income and file a Self Assessment return every year.
• As a non-limited partnership, you’ll need to choose a business name and register with HMRC . You’ll also nominate one partner to register the partnership for Self Assessment and manage financial records and tax returns.
• A limited company (including certain types of partnerships) is required to choose a company name and register with Companies House . They must also register for corporation tax.

Top Tip: The business structure you register as depends upon the specifics of your company. Take an in-depth look at each structure and compare the registration process, fees and tax requirements in our guide on how to register a business in the UK   🏗

Once you know what kind of company you’re running, it’s time to write your business plan. A business plan defines how you’ll run your company and how you’ll achieve your goals. It’s also a crucial element for raising investment money or getting a loan. Potential investors and lenders will want to see that you have a solid proposal that poses minimal risk. 

There are important details for each component of a good business plan, but generally, it should contain the following sections:

• Executive summary (a high-level description of your organisation)
• Company description (your history and future plans for your company)
• Market analysis (details of your target market, customers and competitors)
• Management and company structure (how your firm is organised and who’s running it)
• Service or product information (what you offer and how it stands out in your market)
• Marketing and sales strategy (how you’ll bring customers in and drive sales)
• Funding information (the amount you need to start your business and how you’ll allocate the funds)
• Financial projections (forecasts proving a positive company financial outlook)
• Appendix (any supporting documents lenders and investors may require)

Top Tip: To give yourself the best start possible, you need a detailed plan that outlines how you’ll make your company successful. Learn everything you need to know and watch a Masterclass video in our complete guide to writing a business plan ​​🙌 

As a construction business, you’ll be accountable to some industry-specific rules, regulations and tax obligations. To avoid surprises, you should familiarise yourself with these responsibilities. 

Here are some important initiatives to know about as a new construction business. 

Construction Industry Scheme (CIS) and Value Added Tax (VAT)

If you’re working as a contractor or subcontractor in construction, you’ll need to register for the Construction Industry Scheme (CIS). This is a tax scheme that helps prevent common types of fraud in this industry. 

Under the CIS, you must follow certain rules around hiring and paying subcontractors. You must also deduct money for taxes and file monthly returns with HMRC. As a new construction business owner, you can learn more about what the CIS entails and who it applies to at GOV.UK .

Depending on your business size and activities, you may also be required (or choose) to register for VAT (the value-added tax charged at every point of sale for eligible goods and services). 

Note that CIS-registered contractors are also responsible for what’s known as the VAT domestic reverse charge . This places the responsibility for paying VAT on the consumer (contractor) instead of the supplier (subcontractor) and is in place to prevent common industry tax fraud.  

Top Tip: Understanding the VAT domestic reverse charge will help you ensure the accuracy of your returns. Learn which projects the reverse charge applies to and how it works in our complete guide to domestic VAT reverse charge procedure   ✅

Health and safety compliance

Construction work is inherently risky, so construction companies are legally required to comply with industry standards around job site health and safety. 

Do your research and make sure you know how to keep your workers safe. Knowing the rules will also help you avoid any penalties or legal action against your company. You can learn about safety regulations from the Health and Safety Executive at HSE.GOV.UK .

Building regulations

Most of the commercial and private projects you work on will be subject to national building regulations. You need to know who they apply to, what they cover and what enforcement looks like. Again, you can learn details at HSE.GOV.UK .

Insurance and liabilities

You’ll want to protect your business against costly accidents by holding the right kind of insurance. There are many types of available insurance, and the ones you need will depend on the size, structure and type of construction business you have. 

For example, public liability insurance covers you against injury or property damage. You may also want to look into insurance to cover damage or theft of tools and materials. 

Some forms of insurance may be legal requirements. Employers liability insurance, for instance,  is mandatory for construction companies that hire employees. And some clients may require that you have sufficient coverage before they’ll hire you. Be sure you know what you need and stay up to date on all your policies.

Managing your cash flow closely from the beginning is crucial to running a successful business. Here are the finance specifics you should be aware of as you start your own construction business. 

Startup costs 

The good news is that it can be relatively inexpensive to start a new construction company. Because the work happens on a job site, you often don’t need a base office. In addition, if you’re starting a company, you likely have some construction experience, so you might already own some of the equipment you’ll need.

The average budget for a construction startup in the UK is around £5,000 . These costs generally include things like registering expenses, professional fees for financial advisors, accountants or other consultants you use and marketing and branding on things like a logo, website, signage or advertising.

Fundraising 

Startup costs can be reasonable, but it’s easier to secure funding if you plan ahead to minimise what you may need to raise or borrow. When you do need financial help, here are some of the most common funding sources to consider.

• Business loans. Traditional loans through banks or other commercial lenders usually require security—either some business asset or a personal guarantee to repay the loan in case the company can’t. These loans can be difficult to secure, and if you don’t have good business or personal credit , be prepared for more strict loan requirements or costly interest rates.
• Government startup loans. The government offers government-backed personal loans from £500 to £25,000 to start or grow your venture. Unlike business loans, these are unsecured, and you can get free mentoring to help you through creating the needed business plan and cash flow projections. Learn more about government startup loans at GOV.UK .
• Angel investors. Private investors will sometimes agree to put money into your company in exchange for equity. They tend to be successful entrepreneurs and can help advise you as you learn the ropes. But taking capital from an investor means you’re also handing over some control of your company. You can find information on angel investors on the UK Business Angels Association (UKBAA) website.

Top Tip: A business bank account can be vital to building your business credit and securing a business loan. Learn all about what you should look for in our complete guide to choosing a business bank account 💸 

Cash flow considerations 

It’s important to consider the costs of keeping your company afloat once it’s up and running. In construction, cash flow isn’t always consistent. The project-based nature of the work means cash comes in when contracts are finished, and the amounts depend on project size and scope. 

Record keeping is crucial preparation for covering the costs and taxes you’re responsible for. You also want to plan for fluctuation. In addition, opening a business bank account can help keep you stable. Many offer you overdraft protection for times of low cash flow. Having a separate business bank account also helps you establish credit so you can secure a business loan.

Top Tip: To manage cash flow and achieve profit margin goals, you must accurately track and estimate project scope and costs. Construction companies and small businesses do this through a process known as job costing. Learn more about tracking costs by reading our guide to job costing 📈

The last step in starting a successful construction company is growing it. You’re ready to start earning, and it’s important to set yourself up for success when it comes to getting paying clients. Consider these three tips for expanding your business.

1. Focus on return customers and referrals

It’s easier and more profitable to retain existing clients than to onboard new ones, so you want to ensure you’re keeping customers happy. Provide top-notch customer service and always be professional on the job. 

Look to positive reviews of successful construction businesses. You might find that customers like to rave about accurate quotes and frequent communication with contractors. This means to win positive reviews for your business, you’ll want to keep on top of your bookkeeping so you know how much things cost, and you’ll want to keep the customer updated on the project at all times.

You’ll also want to create a system for gathering testimonials and encouraging referrals. You may want to register your business on third-party rating websites, like Checkatrade , and include the link on your final invoice. You can also request testimonials via email once a job is complete and feature your best reviews on your website alongside images of your work (with the customer’s permission).

Word of mouth is a powerful marketing tool. When you offer a high standard of work and are easy to work with, people will remember you and recommend you to others.

2. Market proactively 

In this day and age, extending your business’s reach usually means creating a digital marketing strategy . Customers are actively looking for social proof and visual examples of work before committing to brands, so keeping a curated website or social media accounts can help them answer their questions about your business.

You can also be proactive by regularly interacting with potential customers on social media, answering questions or sharing your expertise in the comments section. Advertising online through social media and PPC ads can aim your business specifically at customers who are searching for your services. 

Because construction companies often work with local customers, you’ll want to look at the marketing practices of your competitors (your research will come in handy here). If they are a part of local groups or forums, you should be too. This helps to build trust with your community and spread the word about your business.

However you decide to market, do your research and track your results. In particular, you should track your return on investment (ROI) on any advertising you do so you know it’s profitable and worthwhile. As your business grows, you can develop and optimise an informed marketing strategy that works. 

3. Build your brand

Branding is all about being top of mind for your potential clients. It’s more than creating a logo and handing it out on business cards. To build a truly memorable brand , you need to factor in some of the research you’ve already done and then expand on it.

Building a brand starts with knowing your audience and your competitors. Once you’ve understood who your buyers are and what they’re missing from other services, you can develop a positioning statement that explains your offer and tailor your brand personality.

For example, a construction company that builds affordable homes will have a different approach to their branding than a construction company that installs below-ground pools in multimillion pound gyms. Furthermore, a company that wants to differentiate from a high-priced competitor might emphasise their expertise in the industry or long-standing reputation in the community.

Once you’ve settled on your brand positioning and personality, you can design your assets. Create a logo that suits your brand and start putting it on customer touchpoints, like your website, social media, business cards, etc. 

As mentioned earlier, you might want to research what other companies in your area are doing to get their name out into the market. If they have printed t-shirts and vinyl signs that hang on fences where they work, you may want to increase awareness this way too.

Starting your own construction company is an exciting venture. And making that venture successful means taking a methodical approach to ensure you cover every aspect.

Building and running a successful company takes industry know-how and good financial planning. A business account will let you start building your business credit and automate recordkeeping. You can get started by opening an online business bank account with Tide.  Preparing for the future will leave you free to focus on the important work you do.

Photo by Pixabay, published on Pexels

Adelaide Carleton

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How to Create a General Contractor Business Plan

You’ve been firing on all cylinders for your clients’ construction projects, but what about your own company’s future?

It’s not that you don’t have a plan…

You haven’t gotten where you are by accident, right?

You know what needs to be done day to day, and you do it. Even if that means your work day drags into the double-digits. And they do. Often.

But there’s that little voice at the back of your mind that occasionally – or frequently – asks:

How long can this go on?

If you’re ever going to gain control over your days, not to mention work less of them, you’ll need to take that vision out of your head and translate it onto the page.

You’ve got to write a business plan.

This article will walk you through a step-by-step process to create one that’s not just simple and effective, but energizes you about the potential of your general contracting company.

What is a general contractor business plan?

A general contractor business plan is a future-focused document that outlines the financial, operational, sales and marketing strategies of a general contracting company to achieve its goals over the next five to ten years.

Why does my general contracting company need a business plan?

If you’ve been functioning without a business plan, you’re not alone. Most contracting companies don’t have one. Which is all the more reason why you should.

A business plan sets the foundation for your vision and will ultimately put you ahead of your competition. It provides numerous benefits, including:

• Providing guardrails for making financial and operational decisions.
• Giving you a scorecard to check your progress and keep you moving forward each year.
• Keeping your team informed about the company’s priorities.
• Making you a more confident leader because you know where you’re going.

What should I include in my general contractor business plan?

• Executive Summary - highlights of your business plan
• Company Overview - key details about your company and culture
• Market Analysis - industry, competitors and customers
• Marketing & Sales Strategy - how you’ll land jobs
• Operations Plan - how you’ll execute those jobs
• Financials & Revenue Forecasting - how much you’ll make from those jobs

This is an example of a standard general contractor business plan, but you don’t have to follow it exactly. If you’re searching for investors, they’ll likely expect a document similar to the above format, but otherwise… it’s your plan, you can structure it however you like.

For the record, you also don’t have to call the various sections by those titles either. You can rename them with phrases that better suit your vibe. For example, “Company Overview” could be “Who We Are.”

You also won’t want to write the sections in the above order – nor will you really be able to. You’ll have to do a bit of research on the various aspects of your business first and what you learn about one area will impact the others.

But don’t worry, we’ve got a framework you can follow.

How do I create a general contractor business plan?

• Conduct market analysis: Who’s your competition?
• Work out what matters: What’s your ‘why’?
• Study your numbers: What are your financial projections?
• Design your lead flow: What jobs do you need to land?
• Set an operational path: How will you get the work done?
• You’ve got your plan - now summarize it!

Let’s take it step by step, looking at questions to consider and where in your plan to slot your answers.

Step 1. Conduct market analysis

When you’re busy managing vendors, customers and employees across multiple job sites, it doesn’t leave much space for keeping tabs on what else is happening out there.

This first stage of the business plan writing process forces you to take a step back, look at the big picture of the construction industry and research what other general contractors are doing.

The reason it works well as a starting point is because once you have a sense of the whole, you can figure out how best to position your company within it.

Stuff you want to find out includes:

• Is there likely to be an increased demand for general contractors in your region?
• What type of construction projects are prevalent? Remodels? Developments?
• Who are the big players?
• Who’s running a similar general contracting business you admire?
• Who are your ideal customers? Are they the ones you’re currently chasing?

Your answers to these questions will make up the third section of your business plan: Market Analysis.

Step 2. Work out what matters

Okay… NOW’s the time to use everything you’ve just learned to inform what is arguably the most crucial section of your business plan. This is where you’ll define your ‘why.’

Think about elements such as:

• What kind of construction projects you want to focus on
• Your competitive advantage
• Your ideal potential clients
• Your values
• The larger purpose your company offers the world
• What motivates you more than money

Your answers to these questions will become the second section of your plan: Company Overview.

Step 3. Study your numbers

This step assumes you have historical financial data to work from, which… well… isn’t always the case. We get it.

If your financial plan has consisted mainly of tossing receipts into a box at the bottom of a filing cabinet, it’s time to bring it into the light of day.

This section is easiest to complete by working with whatever number’s you’ve got, even if that means taking your best guess. Ideally, you’ll want to have a rough idea of your expenses, including both fixed overhead and variable costs.

From there, if you can figure out approximately what your net and gross profit margins have been, even better. If not, it’s okay. But definitely take a stab at calculating your financial projections, such as where you want your annual revenues to hit in the next five or ten years.

Another important aspect of this step is putting a proper budget in place. If you don’t have one, don’t fret! Download this Budget Quick Tool to get on your way to financial clarity and decisive future planning.

Even though it appears last in the document, you’ll need to have given careful consideration to your finances in order to set your sales, marketing and operational strategies (which are up next).

Your answers will help you build out the last section of your plan: Financials & Revenue Forecasting.

Step 4. Design your lead flow

Alright, so you’ve figured out how much you want to make, now you need to calculate the conversion levels needed to meet your financial goals.

This involves working through the following:

• What’s the size of your average construction project?
• How many jobs do you need to complete to meet your revenue and profit margin targets?
• How many estimates do you need to do to land that many jobs?
• How many leads?
• How are you going to attract potential clients?

The answers to these questions will go in the fourth section of your plan: Sales & Marketing.

Step 5. Set an operational path

Once you set your targets, the next step is putting the high-level plan to hit them. Emphasis on “high-level.”

• What’s your BHAG (Big Hairy Audacious Goal)?
• Who will you need on your management team?
• What systems do you need to implement?
• How will you track your progress?
• How will you keep your team accountable?

These answers will help you round out the fifth section: Operations Plan.

It will also lay the groundwork for your annual strategic planning, where you’ll break your big vision down into executable actions. Curious what that looks like? Download our Strategic Plan template.

Step 6. Summarize it!

Good news! You can give your brain a break now. You’ve got the nuts and bolts of your business plan, all that’s left is highlighting the main points from each section.

Provide a brief overview of everything, without getting bogged down in the specifics. Even though it’s the last thing you write, it will be the first section of your plan: Executive Summary.

Do’s & Don’ts of creating a general contracting business plan

Ready to put your plan into action? We’ve got you. Learn more about how to supercharge your growth … and your team.

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Table of Contents

Why should you start a construction business, how much money do you need to start a construction business, do you need qualifications to start a construction business, steps to starting a construction business, start with market research and analysis.

Create a solid business plan

Legal considerations and company formation

Company format ion

A note on health and safety considerations

Financing and funding your construction business, tips for scaling your construction business, how suaz can help you.

Starting a construction company is certainly a challenge, but it’s sure to be the most exciting and rewarding journey of your life. When it comes to entrepreneurship, the construction industry is a thriving sector to be a part of, with endless opportunities. Whether you’re laying the bricks or managing project timelines, this guide will be your go-to resource for starting a construction company so you know where to begin and how to overcome any hurdles that come your way.

Whether you’re a newcomer to the construction industry or a professional looking to break free from the typical 9-5, this guide is sure to answer how to start a construction company and encourage you to make your dream a reality.

Starting a construction business certainly isn’t a walk in the park. Becoming your own boss requires dedication, passion and the funds to get things going. There’s often a lot of business jargon and regulations to get your head around, and you’ll need to have the drive to succeed, even when obstacles get in your way. 

But as long as you’re prepared and have a detailed business plan to rely on, there’s no reason why you can’t have a thriving construction company to your name. 

There are several benefits to starting a construction business, including:

Growing industry: The construction industry is an integral part of economic development, from housing to commercial spaces. With the Department of Education planning to rebuild hundreds of schools  over the next decade, and the value of construction new work having increased by 15.8% in 2022 , you’ve chosen a bustling industry to be a part of. It’s likely you’ll never be short on work!

High earning potential: As the owner of a construction company, you have the potential to earn significant revenue, with the industry set to increase to a revenue of 476.6 billion by 2027 .

Diversity: The construction industry offers a variety of specialisations to make your mark in, from residential to commercial construction or even civil engineering. Or maybe you’d prefer to cover all bases, where your next project is in an entirely different field to your last, to keep things exciting.

Independence: Nothing compares to the feeling of being your own boss. Entrepreneurship offers complete autonomy, allowing you to foster a work culture that reflects your values.

Innovation:  The construction industry is constantly evolving, particularly in terms of technology and sustainability. Starting your own construction business allows you to encourage innovation and contribute to positive change in the industry.

How much money you’ll need to get your construction business off the ground will vary depending on the type of services you’ll offer, where you’ll be based and your business model. According to industry estimates, the average budget for a new construction UK startup is around £5,000 . 

Our guide on the cost of starting a business  explains the costs you’ll need to consider in more detail.

If you’re interested in starting a construction company in the UK, chances are your construction knowledge is up to scratch already. But there are some qualifications you may choose to have, and regulations you must adhere to, when starting a construction company, including:

Construction Industry Scheme (CIS) registration:  If you’re planning on paying subcontractors to do construction work, you’ll need to register as a contractor with the CIS  before you take on your first subcontractor. 

Construction Skills Certification Scheme: CSCS cards  serve as proof that those working on construction sites are qualified to do so. You’ll need to pass a health and safety test to qualify for a card, or be working towards a Level 2 or Level 3 N/SVQ.

Training: You may choose to gain a construction qualification, or you may ask your staff to carry out construction training to ensure they know the tricks of the trade. A well-respected qualification is Construction Skills offered by City and Guilds , which covers the key areas of the construction trade. 

Below, we’ve put together the steps you’ll need to take when starting a construction company so you’re fully prepared for your exciting new venture.

You won’t know your potential customers' value and how to appeal to them without market research. Prioritising market research can help you stand out in a competitive industry. The first step is to define your niche and the specific services you’ll offer as a construction business. Perhaps you’ll specialise in commercial construction, or maybe residential construction is more your forte. Once you’ve decided on your niche, you can identify your target demographic, from other businesses to homeowners, and start to define how you’ll appeal to them.

Other considerations include: 

Competitor analysis - identify existing construction companies in your area, their strengths and weaknesses and the gaps your business could fill.

Customer needs  - try to spot any unmet needs and where you could provide value.

Networking  - reach out to others in your industry to gain valuable insights, attend events and learn from others’ expertise.

SWOT analysis - try to carry out a SWOT (strengths, weaknesses, opportunities, threats) for your new business and use your findings to address your opportunities and limitations. 

Create a solid business plan 

Your business plan  is a written document detailing the ins and outs of your business goals, financial projections and overall strategy. It’s an essential part of your entrepreneurial journey, and something you can turn to/

Not only does your business plan hold you accountable, but it’s also crucial if you’re looking to attract investors. The financial section will explain your forecasted sales, cash-flows and expenses, which potential investors will read to decide whether their investment is worthwhile.  Your business plan can also help you to prepare for any challenges you may encounter that could impact your profit margins as a construction business , such as fluctuating material costs or changing market conditions.

You must get to grips with the legal requirements of starting a construction business - the last thing you want to do is break the rules.

The most common licences you may need when working on a construction project are the following:

Oversail licence: Should you need to bring a tower crane onto a work site to carry out a job, you may need an oversail licence if the jib of the crane needs to swing over any land that the developer doesn’t own. If this is the case, you’ll need to calculate the radius of the jib and try to get an oversail licence with each of the affected landowners.

Scaffolding licence:  Should you need to use scaffolding on or over a property that isn’t owned by the developer, you’ll need to obtain a scaffold licence. Without one, you’ll be trespassing and may face expensive legal disputes. 

Company formation

Next, you’ll need to decide how you’ll start your business from a legal perspective. You can choose to form your business yourself through the UK’s national registrar of companies, Companies House for a £50 fee. 

Alternatively, you can trust a company formation agent  to form your company on your behalf. Choosing SUAZ  as your company formation agent can alleviate any concerns you may have about forming your company - we’ll form your company directly with Companies House completely free of charge, and you’ll have our advice at hand should you need it. 

As you can expect, health and safety is a top priority in construction due to the potential hazards and risks you take on as part of the job. Not only is the wellbeing of you and your workers at risk, but so is the health of the public and the environment.  

In 2015, the Construction (Design and Management) Regulations 2015  came into effect, replacing CDM 2007. This publication describes the law that applies to the construction process, how you can manage health and safety in construction and what you must do to carry out projects safely.

Starting your own business can be expensive, but this shouldn’t deter you from making your business dream come to life. You’ll need to decide the financing or funding option that works best for you, depending on your financial circumstances. 

You may choose to take out a business loan to get you one step closer to entrepreneurship. Like other types of loans, you apply for a business loan through a bank and will need to repay the amount over time, usually through monthly repayments. How much you can borrow usually depends on your credit score and the bank’s borrowing limits. The bank will likely ask to see your business plan to understand what you’re using the funds for, and to ensure you have the means to repay. 

Alternatively, you may prefer alternative funding options such as crowdfunding, whereby you get a ‘crowd’ to fund a project, such as your new company. There are a few forms of crowdfunding to consider, such as donation-based funding where people will give you money without expecting anything in return, and equity funding where backers will receive a share of your business. Take a look at our guide to startup loans and business funding  for more details. 

As we’ve explained, scaling your construction business requires extensive planning,  decision-making and drive to achieve your goals. Perhaps you’re looking to become a contractor specialising in residential construction, or commercial construction is calling your name. The key to success is a well-executed strategy - which can be implemented with the following tips: 

Financial management: Having the funds to start your business is one thing, but making sure you keep on top of your finances is vital for business success. You’ll need to maintain up-to-date financial records, monitor your cash flow and stick to your budget. You may choose to hire an accountant to help you keep on top of things and alleviate any worries you may have.

Marketing: From digital marketing to social media, marketing your business is crucial to getting your business’ name out there. Once you’ve identified your target market, you can tailor your marketing efforts to appeal to their needs and values.

Growing your team: The construction industry is collaborative and there’s nothing that teamwork can’t solve. Why not recruit some talented construction professionals who help grow your business? 

Manage risk: Make sure you identify any potential risks to your projects ahead of time and have a strategy in place to mitigate them. 

If you’ve caught the entrepreneurial bug, what’s stopping you from chasing your dream? Starting a construction business could be life-changing, and we’d love to support you on your journey to success. Our professional company formation service can guide you through the process, with support there whenever you need it. There’s no reason to wait - form your company with SUAZ  today. 

Recommended Readings

• Business plans

Construction Company Business Plan

Used 4,997 times

The objectives and tactics of a construction company are described in a business plan for a construction company. For the creation of your business plan, use this Construction Company Business Plan Template.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

INTRODUCTION

This business plan is for a construction company that will offer a wide range of services to residential, commercial, and industrial clients. The company will be owned and operated by [Sender.FirstName] [Sender.LastName] , who has (insert number) years of experience in the construction industry.

COMPANY DESCRIPTION

​ [Sender.Company] will be located in [Sender.City] , [Sender.State] and will serve the surrounding area. The company will be registered as a(n) (LLC/Corporation) and will have (insert number) employees at the start, including the owner. The company will offer a range of services, including new construction, renovations, and repairs for residential, commercial, and industrial clients. The company will also offer project management and design services.

MARKET ANALYSIS

The construction industry is expected to grow at a rate of (percentage) over the next five years. The demand for construction services is driven by population growth, economic development, and the need to update and improve existing buildings. [Sender.Company] will target residential, commercial, and industrial clients in the [Sender.City] area, focusing on high-quality workmanship and customer satisfaction.

MARKETING STRATEGY

​ [Sender.Company] will use a combination of traditional and digital marketing techniques to reach potential clients. This will include advertising in local newspapers and industry publications, as well as utilizing social media platforms and email marketing to promote services and specials. The company will also rely on word-of-mouth referrals from satisfied customers.

​ [Sender.Company] will have a team of skilled contractors and tradespeople who will be responsible for completing projects promptly and professionally. The company will have a project manager who will oversee all projects and ensure that they are completed to the highest standards. The company will maintain a well-stocked warehouse with a variety of construction materials and equipment to ensure that projects can be completed efficiently.

FINANCIAL PLAN

​ [Sender.Company] will generate revenue through the sale of construction services to residential, commercial, and industrial clients. The company will also generate revenue through the sale of construction materials and equipment. The company will have operating expenses, including payroll, rent, utilities, and insurance. The company expects to generate (Amount) in revenue in the first year, with a projected growth rate of (Percentage) per year.

​ [Sender.Company] is well-positioned to take advantage of the growing demand for construction services in the [Sender.City] area. With a team of experienced contractors, a focus on high-quality workmanship, and a commitment to customer satisfaction, the company is confident that it will be successful in the competitive construction market.

​ [Client.FirstName] [Client.LastName] ​

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How To Grow Your Construction Business in 8 Steps

So you want to grow your construction business? No matter how long you’ve been in the business or how new you are to it, careful planning is a must if you want to grow your construction company.

The construction industry in the UK is predicted to grow by 4.4% , reaching £163,253 million in 2023.

When it comes to business growth , a variety of factors are at play. Growing your personal network, creating an online presence, utilising the appropriate tools—each action is crucial to your success.

If you’re striving to grow into a successful construction company , take a look at our top tips and strategies for growing and expanding construction businesses.

Why do construction companies struggle?

There are many reasons why your construction company may be falling on hard times, but here are the most common reasons you might be finding it hard to get off the ground.

Outdated business plans

A business strategy can’t be written in a single sitting. To keep it in line with the objectives and core values of your construction company, you should continually examine and update it. Without a current plan, it’s simple to lose focus, which can limit your business.

A leader who is overburdened by distractions will have a demotivated team. Pick no more than three or four things that are actually important, and then pay attention to the measures you must take to accomplish those objectives. 

Low operational capacity

You won’t be able to handle more construction projects if there isn’t enough manpower. And if you do, your present team will eventually grow overworked and quit. Establish an annual hiring budget to help you grow your staff and your construction company.

Despite the UK facing an economic recession in 2023, an extra 225k construction workers could be needed by 2027.

No marketing strategy

Your growth barrier may have a strong correlation with a weak construction marketing approach. Businesses with inadequate sales and marketing coordination see a drop in revenue.

Company goals and objectives are lost or misunderstood when sales and marketing operate in separate divisions. This results in contradictory information or ideas that don’t appeal to your target client. Or even worse, ones that completely miss your intended audience.

As a result, your construction company won’t be able to scale due to inadequate sales follow-up, missed sales, and an unfocused brand. This can be fixed with a strong marketing strategy .

How to grow your construction business in 8 steps

So how can you take your construction small business to the next level? Take a look at the steps below!

Comprehensive business strategy

Don’t let outdated business plans hold your construction business back. Create a comprehensive business plan that incorporates elements such as target market, services offered, pricing structure, and even marketing plans – more on these later.

You can also work with expert business strategy consultants who can help you develop a growth strategy tailored to your construction company’s needs. And with expert organic growth strategies, you can develop not only short-term profits – but a truly successful business in the long term.

Join a business growth programme

Our high performance executive (HPeX) Business Growth Programme has been recognised as the World’s TOP #2 Management Development Programme by Global Gurus . We focus on business growth services to boost your profit in as little as 6 months.

Our specialists have extensive experience working with both multinational construction enterprises and small construction businesses, so you can rest assured, that regardless of your company size, our programme can help. We can help you identify the areas holding back further growth, helping you to generate more leads and ultimately make more profit.

We will work with all departments within your business from sales and marketing to operational business systems, ensuring that all aspects of your business are optimised to achieve your business goals.

Want results like these? Grab your Free Strategy Review Call today.

Data insights.

You must demonstrate to clients that your organisation has the adaptability and inventiveness required for each work because every construction project is different. 

Effectively utilising data insights is one approach to accomplish this. These results might be shown to them during a pitch or proposal to persuade them that your team is capable of handling any situation.

You must automate portions of the workflow if you want to expand your company and take on more jobs. Employees should be able to use their smartphones to input data and create documents once a project is underway so that you can obtain updates wherever you need them. It will enable everyone to collaborate as a team, despite their various geographic locations.

Due to the possibility that not all of your contractors are local, it is a crucial component of growing your smaller construction company.

Marketing and advertising

Being active on social media and having an interesting website only gets you so far. As part of your overall growth strategy, leverage your online presence by implementing efficient digital tactics like SEO, content marketing, and advertising. Here are some ways to promote your business online:

• To improve your website’s organic rankings in search results, use SEO strategies.
• You can publish blogs to your website and social media sites. Relevant customers may visit your website due to an engaging content marketing strategy.
• Utilise online advertising channels like Facebook and Google Ads.

Great customer service

Make an effort to enhance customer service and motivate customers to post online evaluations and feedback. Additionally, keep in touch with clients and forecast their requirements to encourage them to use your services again in the future.

Putting together a team of individuals who will appreciate, be patient with, and understand your clients will go a long way towards generating significant recurring business, referrals and most importantly, satisfied customers.

Flexibility

The level of market competition is one of the major problems that construction companies have. It signifies that you must change swiftly and provide customers with something distinctive or different from what your rivals do.

To do this, adapt your business model to each client’s unique requirements and, when practical, create additional value by way of data insights. Additionally, you want to have an adaptable business strategy that enables your team to work as efficiently as possible when taking on new tasks or expanding the organisation.

Social media

If your construction firm isn’t already active on a suitable social networking platform, we advise creating accounts on relevant platforms. Making certain that each social media account you have for your company has a link to your website.

Open accounts on social media networks where your target market is active. We advise using LinkedIn, Facebook, and possibly Twitter for a construction company. Make sure to interact with your audience, upload content that is relevant on a regular basis, and check your inbox frequently because some customers may contact you there.

Looking for expert business consultants to grow your business?

Now you’ve got the steps needed to grow your construction business, it’s time to put it all into action! Our expert business growth consultants can help you define your business plan and advise on the right growth strategies for your unique needs.

With a range of business consultancy services all aimed at helping your business grow, you can rest assured that you’ll be in good hands with Growth Idea.

So why not get in touch and see what we can do for you? Successful businesses start here!

Grab your free business strategy review today to find out how we can help you reach your goals.

How to grow your construction business faqs, how much does it cost to start a construction company uk.

According to industry estimates, the typical budget for a new construction UK start-up business is about £5,000. This is due to the fact that many construction companies don’t need a base of operations as a large portion of their manual labour is performed off-site.

How do you structure a construction company?

The owner/CEO is often positioned at the top of the organisational structure, followed by the general manager, department managers, project managers, project supervisors, project coordinators, and finally the employees.

How can I start a construction business?

When you plan your construction business it’s important to think carefully about who your potential customers will be and to make an assessment of the level of existing competition. Doing some online market research will help you with this.

Next steps…

Book a complimentary breakthrough business discovery call and gain the clarity you need to take your business forward →, shweta jhajharia.

Construction Business Plan Template

Construction company business plan template.

If you want to start a construction business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow all types of construction businesses, including commercial construction, building construction and residential construction.

Construction Business Plan Outline: How To Write a Construction Business Plan

Below are links to each section of a construction business plan:

• Executive Summary – The executive summary is the most important part of your business plan. It’s where you explain what your business is and why it will be successful.
• Company Overview – This section of your construction business plan should include a brief business description, your vision and mission statement, and the company’s core values.
• Industry Analysis – This section of your plan will provide an overview of the construction industry, including market size, growth outlook, major players, and competitive landscape.
• Customer Analysis – In this section of your plan, you will identify and describe your target market(s).
• Competitive Analysis – In this section, you will analyze your competitors and explain how you plan to differentiate your company from them.
• Marketing Plan – Your marketing plan should include an overview of your marketing goals, strategies, and tactics.
• Operations Plan – Your operations plan should describe how you will produce your product or service, as well as the people and resources needed to do so.
• Management Team – In this section, you will introduce the members of your management team and their experience and qualifications.
• Financial Plan – Your financial plan should include your financial statements such as the income statement, balance sheet, and cash flow statement.
• Appendix – The appendix of your plan should include any additional supporting materials, such as market research reports, resumes, licenses and permits.

Next Section: Executive Summary >

Construction Business Plan FAQs

What is the easiest way to complete my construction business plan, where can i find a free construction business plan pdf download, what is a construction business plan, why do you need a business plan for a construction company, what are the sources of funding for construction businesses.

The main sources of funding for a small construction business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a construction business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will generally not fund a construction business.

How Do You Start a Construction Business?

What are the keys to success for a construction business.

• Vision & Focus: determine the type of construction business you want to operate and stick to that vision.
• Create your business plan: Your plan will help you set goals and outline how to achieve them.
• Get licensed, bonded, and insured: before you can bid on your first job, you need to investigate and meet the requirements for local and state licenses and do what you need to do to secure them, get your worker’s compensation and liability insurance, and find out how much you need to be bonded for.
• Build a winning team: Hire and train a team of employees with the right skills. Remember that since construction is seasonal and cyclical, you must also be willing to downsize if/when the workload decreases.
• Purchase wisely: be careful not to overspend on salaries and equipment. Consider renting equipment when possible.
• Properly price jobs: Keep factors such as overhead and actual production costs (materials, labor, inspections, etc.) in mind when pricing jobs to ensure a healthy profit on all projects.

CONSTRUCTION BUSINESS PLAN OUTLINE

• Construction Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Construction Business Plan Summary

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We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

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To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Simple Business Plan Outline

How to Start a Construction Business

How to Start a Business With No Money

How to Create a Business Plan Presentation

10 Qualities of a Good Business Plan

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