People are constantly trying to improve their living conditions, they build houses, garages, baths and other structures, while they all use the services of professional craftsmen, or teams that offer a turnkey service. Recently, due to the crisis, the percentage of orders in this segment has decreased, there is nothing to say, people have begun to do cosmetic repairs more often, and not to implement design projects. But at the same time, it still makes sense to start a business in the construction industry, since apartments have been bought and will continue to be bought, houses have been built and will continue to be built, the main thing in a crisis is good quality and an adequate price with the possibility of discounts for volume orders. With this approach, you will be able to stand out among competitors and create a base of your regular customers who will advise you and bring their relatives and friends in the future.
It should be noted that the construction business can be divided into two segments.
- Companies that build serious, large turnkey facilities. These are already experienced market players, and it is difficult to compete in this segment, since not only professional builders work there, but also lawyers, marketers and other specialists who increase customer confidence and you will need a very large start-up capital in order to start working in this direction.
- Small business in construction. This includes minor repairs, such as tiling, window installation, ceiling installation, wall plastering, and more. The bottom line here is simple, you can start working by choosing a certain direction in construction services yourself, believe me, there is something to choose from and you will definitely find where to start. Take, for example, the same tile, after completing the training, you can become a highly paid specialist, since the demand for this service is high, not only in private, but also in commercial construction. You will attract customers with the price, quality and speed of work. Following three simple rules, in the future you will organize your team and will attract specialists in other areas of work, such as plasterers. In the end, you will get to the point that you will be doing complex turnkey repairs, and your earnings will grow every year.
Considering the ideas of the construction business, the teams that erect buildings also choose one of the directions and try to make a very cool portfolio to beat the competition. So we can distinguish the following types, the most frequently erected buildings:
- cottages
- garages
- hotels
- warehouses
- multi-storey residential complex
- business centers and more.
Believe me, each of these design options has its own moments that need to be fulfilled and the specifics can differ significantly. For example, for the construction of a business center, in addition to the requirements of the fire service and SES, the main requirement is the speed of work. There you need to work very quickly, because the client is interested in launching in the shortest possible time. A completely different approach is already underway in the construction of private houses, here you need to clearly carry out the project and listen to the requirements of customers, and speed plays a less important role.
One of the areas that describes the question of how to make money on construction are commodity niches. These are mainly stores of building materials, hardware, tiles and other things. Here, too, despite the seasonality, you can make good money due to bulk orders from customers. Often people buy materials for the whole apartment or house at once, and this is a very substantial amount of money.
In this section of our website, we have selected for you the most popular and proven business ideas in the construction industry. We have tried to describe not only the essence, but also to make them in the form of business plans, with calculations and profitability assessment, so that you can assess the real prospects of these areas. Read, comment and leave your feedback, it will be very useful for readers of our site.
It is not in vain that the construction industry is developing so actively today - it is a profitable niche where every entrepreneur can take his own place. Knowing how to open your construction business from scratch, you can create a profitable business with access not only to the local, but also to the regional market. Today, despite the current economic situation, new construction technologies and materials are being developed and implemented, which allows a businessman to choose the most suitable niche for business development. There are quite a few ways in which you can develop in the construction industry. But, as in any other area, here you have to think through all the nuances so as not to lose the money invested. And it will be especially difficult for beginners who do not yet know how to start a construction business from scratch. So, it is worth starting to study the issue now.
How profitable is the construction business?
According to experts, the construction business, in terms of generating income, is the most promising among others. But many aspiring entrepreneurs are put off by the long payback period. This is partly true, because many of the existing areas are high-tech, requiring large investments. But if everything is carefully thought out, the money will return very soon.
The payback period of the business will depend on the chosen direction and the invested funds. If you offer a demanded product on the local market, then the equipment will not stand idle, thereby bringing consistently high incomes.
And how “practical” is opening a construction business in a crisis? In a difficult economic situation, there is some subsidence of the market today. But everything is not as bad as it might seem at first glance - developers continue to build entire microdistricts, and the population continues to repair their houses and apartments, to improve suburban areas. The only difference is that with the decrease in purchasing power, buyers began to pay more attention to budget materials and inexpensive services. And this fact can even be turned in your direction by promoting on the market the product that consumers and customers want to see.
To minimize all financial risks, it is better to think about starting a small business, because large investments will be required to launch a large-scale production or a chain of stores.
Many types of construction business will "suffer" from seasonality. There is nothing you can do about it - a special need for materials and services arises mainly from March to October. But as practice shows, even active work only in spring and summer can provide high profits that will pay for all further downtime. In addition, with well-established contacts with 2-3 wholesale customers, you can not know the problems with seasonality at all.
The organization of a small construction business will be fraught with much less difficulties if the business project is clearly worked out. Following a certain plan, you can develop your enterprise.
Construction business: buy or organize on your own?
Managing a construction business, especially if we talk about a large enterprise, is not an easy task. And it may seem to many that acquiring a ready-made business that has been operating on the market for a long time will be much more promising. Maybe so, but where is the guarantee that the seller simply does not sell "illiquid assets"?
It will be very difficult to find a truly worthy offer for the sale of a profitable construction business! And even if such an offer is found, its price, for sure, will be considerable.
Buying a ready-made construction business is sometimes more profitable than an organization of the same kind, but from scratch, because, along with the equipment and trained personnel, the customer base also passes into the “ownership” of the buyer. And this is precisely the priority, because it is very difficult for beginners to find regular customers. Having decided on such a deal, it is better to hire a qualified lawyer for consultations, who will check all the documentation of the acquired company.
Starting your own small construction business is even more difficult, but an entrepreneur here can move in any direction, independently choosing an idea that is closer and more understandable to him.
Choosing a promising direction
It is impossible to launch a business in the construction market without analyzing it and choosing a promising idea. There are many options here, but first you need to decide on the format. What will it be - own production or outlet.
And when choosing what to do, you need to consider the following third-party factors:
- demand for a product or service.
- Purchasing power of potential consumers.
- The level of competition.
Producing is always more difficult than selling - that's a fact! But the issuing enterprise is able to provide the entrepreneur with greater profits.
It is wrong to believe that starting your own production necessarily involves large investments. Not at all - there is a new business in the construction industry, the organization of which will require minimal investment. In addition, the widest range of production equipment allows you to master a profitable idea without large-scale costs. Therefore, if there is an increased demand for a particular material in a particular market, you can think about your own mini-workshop, which, by the way, can be organized on the basis of your own garage.
Interesting construction business ideas that can bring high income to an entrepreneur can be represented by the following list:
- Provision of services for the repair and decoration of premises.
- Construction of small structures - garden houses, wells, arbors. Interesting idea - .
- Provision of services for construction work - digging wells, laying communications.
- Production of budget building materials - bricks, cinder blocks, facade and decorative tiles of various types.
As for construction stores, it is better to open them in small towns, since megacities are already literally crowded with supermarkets and wholesale warehouses offering consumers a huge range of construction products - from building materials to construction equipment.
In a remote area of the city, it is possible to organize a building goods store in the “around the corner” format, which will sell piece goods to local residents. But it will not bring big profits.
Working on a business plan
Whatever business ideas for construction are selected for implementation, the importance of working out a detailed project cannot be underestimated.
Without a business plan, no credit institution will give money to start a business!
On the pages of the project, a detailed analysis of a specific market niche is considered, the necessary costs and expected income are calculated, an example of a further marketing policy is given. To draw up a business plan, it is not necessary to resort to the help of a specialist - everything can be done independently. Following it, you can develop your business in the future, entering new markets.
We formalize business
When discussing how to start a construction business, it is important to mention the registration of an enterprise. And if in the case of a home business, at first you can do without registering an IP, then a full-fledged workshop or a large store cannot be opened without obtaining the appropriate licenses.
It will not be possible to establish cooperation with large wholesale customers without the appropriate papers and permits.
If you are going to develop large markets, it is better to register the company as an LLC. It is necessary to collect the necessary package of documents and submit them to the tax authorities. Work in the construction business is now simplified by the fact that it is not mandatory to obtain a state license to carry out activities. But in order to increase customer loyalty and establish cooperation with large customers, you will need to join an SRO.
We buy everything you need for work
Any business will require certain costs. And the equipment here is the most important item of expenditure. Organization of a construction business from scratch involves the purchase of the necessary equipment (industrial or commercial), raw materials or goods for sale.
The volume of purchases and specific product names will depend on the chosen direction. And the “scope” of the planned business will affect capital costs.
Many entrepreneurs, in order to minimize costs, purchase used equipment. When concluding such transactions, it is worth being very careful, since there is a high probability of acquiring defective equipment.
We hire working staff
Of course, you can save a lot on hiring staff if you do all the work yourself. But the best construction business in Russia still involves the involvement of workers in the process.
The lack of additional labor can lead to disruption of contacts with wholesale customers. The sooner the entrepreneur fulfills his business obligations, the sooner payment for the work will be credited to his account.
The specialties and qualifications of the hired workers should be determined depending on what is planned to be done. But practice shows that only true professionals in their field will be able to do the job perfectly, thereby bringing profit to the entrepreneur.
Organized business development
The development of the construction business is one of the most important points in the developed business plan. And having a clear understanding of the principles of marketing, you can quickly bring the business to a break-even point.
Even if the business has been successfully functioning for a year, there is no need to stop there. There is still a lot of work ahead - expanding the enterprise, entering new sales markets, opening new divisions.
Starting a construction business in 2016 involves some investment in advertising. And during a crisis, this is especially important, because competitors are not asleep. Now the main thing is to build up a client base and reduce downtime to a minimum. Which advertising platforms to use will depend on the chosen direction. But today, online advertising is showing an increasing return - this way you can attract a larger number of interested buyers and customers, especially when it comes to the service sector.
Billboards and billboards, newspapers and magazines, thematic exhibitions, participation in tenders - these are popular ways to promote business in the market.
It is necessary to expand gradually, when all loans and borrowings (if any) are repaid, and confidence in the future comes.
A section about the construction business: ideas, starting from scratch, the profitability of a particular business, new and relevant technologies, risks, analytics and advice for beginners in this area. We will try to analyze all possible business ideas in the construction industry, as well as reveal questions about how to start a small business, which one is better to choose and how to start a business in the construction industry.
Remember that in every country there are building codes and regulations in the form of technical, legal and economic regulations governing the implementation of urban planning, engineering surveys, architectural design and construction, which must be followed.
Ideas for the construction business
Everyone knows the picture in the form of houses sheathed with siding, which seems to look beautiful, but its whole appearance is spoiled by the joints of the sheets. Many people do not like this joint and therefore often refuse such siding. Yes, and it looks very cheap, so spoil your ...
One of the most popular services today is the rental of various equipment for repair and construction. This service is very convenient for customers, because it is unprofitable to purchase expensive tools for one repair, it is much more expedient to take them in...
Opening of an interior design studio
A beautifully designed house, apartment or room is always comfortable, this is a fact, but it is also a fact that, unfortunately, not everyone can cope with this task on their own. If people who still have a desire to create their ideal corner decide to do this, ...
The most reasonable way to open a promising business is to occupy one of the most free niches where your services will be in demand. Your desires, skills and talents are also important, the work should be familiar and bring pleasure. By following these rules...
Change houses are compact mobile structures, mainly intended for temporary residence, storage of tools and equipment in construction sites, summer cottages, control points and other places where it is necessary to provide comfortable living conditions...
Scaffolding production
Scaffolding is a temporary auxiliary structure for placing workers and materials during construction, installation and other works. They can be used both outside and inside the building. Most often they are assembled from unified metal ...
A swimming pool is a specific structure, most often made of such material as polycarbonate or foam concrete. They are equipped with a variety of heating systems, and are also characterized by a certain closed water cycle, which means that the pool is built with a filter,...
Road construction
Modern pavement should be endowed with such qualities as high operational durability, excellent wear resistance and excellent adhesion of the pavement to the wheels of vehicles. The main reason why the pace of...
Manufacture of fences and railings
The production of fences is most often done in the form of reinforced concrete fences, which are necessary for fencing objects of social, cultural, household purposes and for fencing residential buildings. The choice of architectural type and height is determined by the services ...
Nowadays, the introduction of modern technologies takes place on an ongoing basis, but such processes do not have such a strong impact on the main stages of technology during the production of tools. A typical example is the surface treatment of a tool using ...
The business ideas presented here will also help improve the profitability of your business, regardless of its size, open up new directions, and also, with due enthusiasm and skills, you can start your own business. The business ideas of this industry include construction from innovative, waste, other materials, high-speed construction of buildings and structures at minimal cost, as well as business ideas that require small investments when opening and developing a business.
Construction also includes major and current repairs of buildings and structures, their reconstruction, restoration and renovation, as well as technical re-equipment.
The process of this business usually includes organizational, survey, design, construction and installation and commissioning work related to the creation, modification or demolition of an object, as well as interaction with permitting and supervisory authorities regarding the production of such work.
The main advantage of the construction business is the presence of a constant growing demand. Every day, several potential clients are looking for contractors who can do renovations, build a cozy home, or install a fence around an existing structure. Of course, there are many representatives of the stronger sex who will take up the job themselves, but not every man can install a double-glazed window, replace a pipe or build a cabinet.
About how to start a construction business and what pitfalls can lie in wait for a businessman in this field, and there will be further discussion. The main rule that every entrepreneur must remember is that you cannot refuse a single client who is ready to pay money.
Market monitoring
So, the idea came to my mind to try myself in such an area as the construction business. Where to begin? Many will say that by contacting the tax office. No! With serious preparatory work associated with a detailed study of the market.
Currently, many companies are open, ready to build both an apartment building and a private cottage.
Every novice entrepreneur should understand that organizations that have worked on the market for more than one year can act as competitors. And this means that they have the trust of customers and partner suppliers. Therefore, the only right decision is to stand out "from the crowd". Leadership should be expressed either in the volume of attracted capital, or in a fundamentally new approach to construction.
Activity registration
How to start a construction business? A thorough market analysis should be followed by formal registration. The most suitable form is a limited liability company.
After that, you can start choosing a suitable company name, finding the best office location, creating an authorized capital and selecting founders. More about each item.
How to start a construction business from scratch: a plan
- With a unique and easily recognizable name.
- From the location of the company's office in a place accessible to customers.
- From the authorized capital invested by the founders or from the start-up capital, without which the company will not be able to start its stable functioning.
- From the collection of a package of documents necessary for registering a company - the passport of each founder, information about the location, the main type of activity, as well as the size of the authorized capital and the method of its formation.
All these actions can be performed independently or seek help from the appropriate specialists.
Professionalism and organizational skills. What's more important?
How to start a construction business from scratch and achieve success? Experience is an invaluable assistant in this matter. In this case, some problems disappear on their own. Although, according to statistics, there are a lot of people who started to realize themselves in this area from scratch and still climbed very high up the business ladder.
Organizational skills, the ability to create a professional team, to find a common language with any partner or client are the main components of success.
In addition, it is necessary to determine how the work will be carried out - independently or with the involvement of additional companies. So, the opinions of experts agree that it is better to go through the beginning of the construction activity together with good partners and solid sponsors who are able to support any, even a global project, or provide all possible assistance during the absence of at least some significant order.
brigade
How to start a business from scratch in the construction industry? Need to find conscientious skilled workers. This profession is recognized as the most necessary in the world.
A large enterprise with a personnel reserve can apply any measures to an unscrupulous employee, up to and including dismissal, without fear of anything. But a small company left without a specialist may lose an order due to a missed deadline.
Therefore, if a workable team was not assembled at the beginning of the activity, then it is not worth starting work.
By the way, it is necessary to complete the basis of the team only from qualified workers, and then to recruit newcomers as the company expands.
In the framework of the modern market economy, everything must be done quickly and efficiently. That is, yesterday, a specialist hired should immediately begin to implement the plan.
The tightening of requirements for personnel is observed due to the fact that construction is not only a responsible, but also a lengthy process. After all, the appearance of cracks or midges, not to mention collapses, is not an ordinary breakdown of household appliances.
Colleagues
How to start a home improvement business? Any competitive environment involves professional interaction - linking to the master plan, coordinating the project, connecting communications, etc. In view of this, it is necessary to notify colleagues in advance about the planned actions, about the niche found for oneself, about the sequence of work.
A sudden jump can turn into big problems, for example, a complete misunderstanding with the state structure, because development must be carried out in strict accordance with the law.
Financial part
How to open a construction business from scratch? It is necessary to talk with investors and discuss with them the initial "infusion".
The amount of investment costs is approximately 12,000,000 rubles. and includes the purchase and rental of several units of special equipment, the development of design documentation, as well as the conduct of geological and geodetic surveys. About 1,000,000 rubles will have to be spent on tools and overalls. Office rent will cost about 150,000 rubles / year. In addition, you need to think about travel and entertainment expenses - 200,000 rubles / year, as well as membership fees, promotional activities and website promotion - 100,000 rubles / year. Total initial costs will amount to 13,450,000 rubles.
To calculate the income and payback period, you need to arm yourself with the average value of the profitability of a small construction company. In a metropolis, this figure may be 100%, but only a beginner is unlikely to be able to take root here. Subsidized hinterland is able to provide no more than 25-30%. Orders are also present here, but they require a large number of trips. The average profitability in Russia is about 60%, which results in a payback of 20 months. True, it must be borne in mind that winter time for the most part refers to downtime.
Permits
How to start a construction business? With the decision on the entry of builders. An entrepreneur who avoids this moment will have to pay a fine of at least 5,000 rubles. Each firm that has joined the SRO pays fees, the amount of which is set by the local authorities of the region (but they are unlikely to be small). So, only requires 400,000 rubles. in year. Not all construction organizations are able to cope with such expenses, so they often prefer semi-legal work.
Entry into the SRO is not required for the following organizations:
How to start a construction business? From the sequential execution of the following actions:
- Collection of papers that allow you to engage in construction.
- Registration of a license for the design of various kinds of structures.
- Obtaining permits for conducting engineering surveys.
You will also need to visit Rospotrebnadzor and the Department for Emergency Situations.
What does a construction company do?
You can open a highly specialized or large format small construction business. Where to begin? Determine the range of services demanded by the population. So, a construction company can:
- erect various buildings and structures, both partially and on a turnkey basis;
- engage in repair and installation work;
- rent machinery, equipment and construction tools;
- develop projects;
- materials.
The breadth of the field of activity directly affects the number of investors needed to start.
Required personnel
A construction company cannot do without:
- architect or designer;
- accountant;
- personnel officer;
- supplier;
- foreman.
It will not be superfluous to have your own lawyer.
Each team must include qualified carpenters and electricians. The issuance of a state license largely depends on the availability of higher education for the main part of the company's employees.
If we are talking about a small company, then it is much more expedient to use the services of a hired accountant. The advantage lies in the absence of a monthly salary, since payment is made upon completion of the work.
Where to look for orders?
You can place an order in one of the following ways:
- Winning the tender. Please read the terms and conditions carefully before submitting an application.
- Conclusion of an agreement with a construction company. For example, some can build walls, while others can do the finishing.
- Become a subcontractor of a large organization - an executor of a large-scale project.
The most reliable way to become popular in the construction industry is a responsible approach to the implementation of any order. A positive reputation in the market has not harmed anyone yet.
Determine whether you have sufficient funds, the ability to take out a loan to start on your own, or whether you need to attract investors. If you already have funds, you can create an individual entrepreneur; to attract a large amount from outside, the organization of LLC will be the best choice.
Study the demand for real estate in your area. Depending on this, you should choose the direction of activity: the construction of townhouses, cottages for sale or wooden houses on order.
When drawing up a business plan, seasonality, the average cost of housing in your area and the purchasing power of the population should be taken into account. The demand for housing construction is very high, but it is better to start with a narrow specialization and choose the most popular options that allow you to reach payback in the shortest possible time.
Main risks
The construction industry is highly competitive. A beginner needs to choose a narrow specialization and offer customers the highest level of service. Your advantage is the ability to focus on the little things. Large construction companies do not have such an opportunity due to the peculiarities of the management organization.
Dependent on the season. All stages of the construction of cottages can be carried out in spring and summer. With the right organization of work and the availability of sufficient funds to ensure the turnkey construction in full, you can start selling your house in the fall. If these conditions are not met, the risk of freezing construction until the next season is very high. Before starting work, make sure that you have everything you need to deliver the object by the scheduled date.
Location
The office of the company must be located in the central or business district of the city. Here you will hold meetings with clients and partners. Also, designers, accountants, customer and supplier managers will work in the central office.
The facility for storing equipment and manufacturing prefabricated wooden houses should be located in an industrial area or on the outskirts of a city. Suitable for production and storage facilities. An important point is convenient transport interchange and the ability to bring the communications necessary for the activity.
If you specialize in the construction of cottages or townhouses and their subsequent sale, the question of finding a site for construction is added. Examine city development plans. It is unprofitable to build houses in a remote village that lacks modern infrastructure and convenient transportation. Look for vacant sites in a crowded area, with communications and in close proximity to schools, shops, medical institutions and other infrastructure facilities.
Sign a contract with a realtor who will provide you with information about the average cost of housing in each of the areas. Having chosen interesting sites, order a soil analysis from the geodetic service.
Equipment
Buying expensive construction equipment is not worth it. Depending on the project at each stage of work, you can rent the necessary equipment with personnel from companies specializing in providing such services. Buy only those tools and equipment that are necessary for your work at all times.
If you are planning to sell finished wooden houses, the situation is different. The team of lumberjacks must be equipped with chainsaws and other equipment for logging. Means for transporting wood to the assembly site can be rented. Assembly, which is best done in winter, is also done using chainsaws, electric planers and a standard set of carpentry tools. To work, you need a mini-power plant. The approximate cost of a set of equipment for the work of one team is 50-60 thousand rubles.
Personnel
For the construction of frame houses, it is necessary to hire a team of lumberjacks (5 people) in the summer. The assembly must also be carried out by 5-6 qualified specialists, who are hired by the owner of the company on a full-time basis.
For permanent work in a company specializing in the construction of turnkey houses, a few people are enough:
Supervisor.
- Foreman.
- Manager.
- Accountant.
All other employees can be involved on a contract basis, depending on the stage of work.
Look for firms and teams with a narrow specialization:
Design.
- Excavation.
- Building walls.
- Internal work.
- Laying of power supply and communications.
- Water supply.
- Finishing work.
- Landscaping.
There are a lot of suggestions for each of the items. Having chosen the best options in terms of the cost of services, the quality and timing of the work, you can further conclude cooperation agreements with each of these teams or firms for the construction of the following facilities.
Documents and licenses
For low-rise construction, you do not need to obtain a license and become a member of the SRO. It is enough for the owner of the company to register an individual entrepreneur or LLC in the tax office and choose a convenient type of taxation.
If you have permanent employees, you need to register a company with the employment and social insurance service. Building permits are issued by local authorities. When designing an object, you must coordinate all the nuances with the architectural bureau and the fire safety service.
Payback
Much depends on the average cost of housing in a particular region. On average, the cost of building a small house for one family, subject to cooperation with wholesalers of building materials and proper organization of work, is about 2 million rubles. The selling price of such houses fluctuates around 3 million rubles. During one season, you can earn 1 million rubles on the construction of one house.
The profitability of building finished wooden houses reaches 30-40%. With the correct organization of the company's activities, it is realistic to reach payback in a year and a half.
Marketing
The main condition for success is quality, comprehensive service and speed of work.
Summary
The home building business is highly profitable. By developing a real business plan and choosing the most popular direction, you can attract investors and reach payback within 1-2 years.
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