Construction Business Plan Template [Updated 2024]

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V.Competitive Analysis

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

Direct & Indirect Competitors

The following residential construction companies do projects within a 20 mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Wellbilt Home Improvements Co.

Wellbilt focuses on remodeling with general contracting of new homes as a secondary focus. The company has relationships with many architects and a good reputation among homeowners in the area.

Wellbilt’s remodeling projects are generally with customers at the upper-end of the market, who choose to improve their current home either for sale or for their own purposes. Wellbilt is weaker in the new home construction area, in part because of the company name focus on improvements and because of the experience it has accrued.

John Doe Construction

John Doe Construction is an independently-owned and operated firm which was founded by John Doe ten years ago. John Doe Constructionemploysthree full-time project managers and maintains multiple building projects at a given time.

John Doe Construction has a reputation for missing schedules, and those who have used their services recommend that new clients add 50% to schedules the company makes. They also prefer to work on a cost plus basis by adding a profit margin on top of the labor, materials, and equipment cost for each job, making it difficult for clients to estimate the total cost of the project.

American Home Construction Co.

American Home Construction Co. is a national company which works through a network of regional and local subcontractors. They start over 500 homes per year and often build homes in the [location] area. They focus on efficiency, attempting to complete each home project in less time than quoted by any other company.

The focus on efficiency appeals to some real estate developers who are interested in putting properties to market as fast as possibly, but does not attract individuals focused on quality above speed as much. Furthermore, sometimes the far reach of the subcontractor network of American has them work with firms with subpar quality.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Local Focus: [Company Name]’s location is near the center of town and works with local employees and vendors only.
  • Client-oriented service: [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with his clients and the community through monthly webinars on topics of interest.
  • Management: [Founder’s Name] has been extremely successful working in the home construction sector and will be able to use his previous experience to make clients feel comfortable with the home construction process. His unique qualifications will serve customers in much more sophisticated a manner than many of [Company Name’s] competitors.
  • Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences.
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