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Construction Business Plan Template [2020 Updated]

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I. Executive Summary


You can download the Construction business plan template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located at [insert location here] is a new residential construction and general contracting firm. The company will operate out of an office in the commercial district of [town]. [Company Name] is headed by [Founder’s Name], an engineering graduate from XYZ University with 20 years of experience working in the construction industry.

Services

[Company Name]will focus on superior service for its clients. Each home construction project will be managed from start to finish, with some services provided by employees of [Company Name] and some by subcontracted specialists.

The founder, [Founder’s Name], will be the lead project manager and focus on answering his clientele’s needs. In addition to currently running projects, [Founder’s Name] will hold webinars on home construction concerns and best practices for potential clients and the community.

[Company’s Name] services include new home construction, home additions and home renovations.

Customer Focus

[Company Name] will primarily serve architects, homeowners, and real estate development companies,constructing properties within a 20 mile radius of our location. The demographics of residents in this area are as follows:

  • 27,827 residents
  • Average income of $74,700
  • 58.9% married
  • 49.6% in Mgt./Professional occupations
  • Median age: 38 years

There is a high rate of home ownership in this area with 80% of residents being homeowners. Furthermore, [Company Name] will seek ongoing relationships with real estate development companies for multiple-home contracts.

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been aproject manager for a home construction company for the past 10 years and an assistant project manager for 10 years prior. He has spent much of his career working for First Wave Construction Company. There he specialized in new home projects, managing or assistant managing the completion of 75 homes.He consistently was named a top project manager for First Wave Construction Company.

[Company Name] will also employ an experienced assistant project manager to co-manage projects when multiple projects are running concurrently. [Assistant’s name] has construction and project management experience and has spent significant time as a contractor.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed local residents and real estate development companies and received extremely positive feedback saying that they would consider making use of our services when launched.
  • Our location is in an economically vibrant area where new home sales are on the rise and turnover in homes occurs often due to the upward mobility of residents.
  • The management team has a track record of success in the construction business.
  • The local area is currently under served and has few local home construction companies offering high customer service to home building clients.

Financial Highlights

[Company Name] is seeking a total funding of $195,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Office design/build and equipment: $130,000
  • Working capital: $45,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

 FY 1FY 2FY 3FY 4FY 5
Revenue$1,853,460 $3,535,552 $5,010,918 $6,790,374 $8,414,849
Total Expenses$1,866,345 $3,417,414 $4,801,845 $6,531,105 $7,949,711
EBITDA($12,885)$118,138 $209,073 $259,268 $465,139
Depreciation$19,560 $19,560 $19,560 $19,560 $19,560
EBIT($32,445)$98,578 $189,513 $239,708 $445,579
Interest$11,395 $9,970 $8,546 $7,122 $5,697
Pre Tax Income($43,840)$88,608 $180,967 $232,587 $439,882
Income Tax Expense$0$15,669 $63,339 $81,405 $153,959
Net Income($43,840)$72,939 $117,629 $151,181 $285,923
Homes Completed512162023
Full Time Staff End of the year11.518.022.027.030.0
Construction Business Plan Template [2020 Updated]
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