Before diving into an operation plan sample in a business plan we should first discuss what is a business plan and how it can be essential for your company’s future. Easier said than done. Contractors are taught how to build, but growing a company is a completely different matter. Writing a business plan is a headache even for those who feel good about their writing. Why? Because it needs to be very detailed and precise. Not only that, but you’ll use that document to convince investors to see your potential. It needs to be well-made and specific.
How to create the best one, when you’ve never done that before? That’s where the operation plan sample in a business plan comes in. We will show you exactly what to do and what practices to avoid, to make the best guide for yourself and a perfect tool to show investors what your business is worth. I will show you a construction company business plan template so that you can easily understand what is necessary for your plan.
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What is a construction company’s marketing plan?
In the most basic sense, a home-building business plan is a document that defines in detail a business’s objectives and how it plans to achieve its goals. If made correctly, a business plan can be a perfect guide through each stage of starting and managing your company. It’s not only to convince investors but also for you to run, and grow your business throughout the time.
Not only that, but a home building business plan can help you get the necessary funding or bring on new business partners. While searching for investors, you need to realize their basic needs when it comes to your services and future cooperation. Investors want to feel safe about your plans for the future. They want stability. Business plans for construction companies will provide important elements that will make your company look well. Investors want to know whether choosing you is a good choice and thanks to home building business plan, they’ll feel confident they’ll see a return on their investment.
A business plan for construction companies is a very important document designed for internal and external audiences. Therefore, a business plan can assist to keep a company’s executive team on the same page about strategic action and milestones to keep their eyes on targets and meet goals settled prior.
Home building business plan – tip #1
Many organizations will go straight to the description of services, but before that, let’s talk for a bit about why you’re in the business in the first place. There’s going to be a story behind it. Maybe it’s a passion or a dream job since childhood. Or maybe you did it with your parents from the earliest age and with time it became a hobby and later on a family trade to a profession.
Make sure to discuss and introduce it in a company description. Make it a story worth reading, before diving into details. It will help you differentiate as to why you’re doing what you’re doing, but it’s also going to show that it’s more than just about money.
The description is the best place to show that it’s more than just a business or a chore.
Home building business plan – tip #2
The second mistake that many companies indulge in is that in the section Industry Research, they start comparing their business with their competitors right off the bat. Something about the higher prices or that their service techs are not trained adequately. That section isn’t about going for the jugular of the competitors. A home building business plan is not the place to do it and it’s not the process to follow. You have no foundation or credibility to make judgments against somebody else.
A better strategy when doing your industry research is first and foremost to do the actual research into it. Gather some industry statistics, what are some trends that are happening in the construction field. Once you do, you have laid the foundation for credibility. From that, you can start analyzing your competitors. Again, don’t talk about how bad they are, but instead, compare your competitors to some statistics. The construction company business plan in this step needs you to differentiate your company from others, but not in an aggressive way.
Business plans for construction companies – tip #3
When you are doing your funding request section for the construction company business plan first and foremost that section should be how much money you need to either start or expand your business. Make sure it’s a specific number and not a range, because your lender or investor will always go for the lowest prize. The range also shows that you really don’t know how much money you need to start.
Once you identify the precise amount of money you’ll need, move on to the next step to describe what that money will be spent. While doing that use categories.
For example: if you’re going to buy vehicles, set the budget for buying as many as you need. The same goes for creating other categories such as equipment, tools, and inventory.
Once you’ve got your categories set and you identified what they are, total up the amount of money for each category and make sure that your grand total is identical to the number you request for.
Construction company marketing plan
Most construction companies forget about this, but a marketing plan is also an important part that you as a constructor must include in the business plan. The key to your success is the right advertisement. If you plan that strategy correctly and then commit to it, investors will see you as a competent and devoted leader. It can be another chance of proving just how well you thought everything through. The construction company marketing plan needs at least a few parts of its strategy. The most common are social media marketing, website, banners, or direct mail, but an interesting one for construction companies is also writing blogs. Clients can see your expertise.
For now, it may seem overwhelming, as you’re trying to focus on what your business is really about. You probably want to get back to work you’re here to do and forget all about the marketing and business plans. Unfortunately, the construction company marketing plan is a whole section that will help you gain investors’ trust as well as more customers. A great idea is hiring a marketing specialist to take care of that part for you, but in your construction company marketing plan you have to come up with solutions that will suit your business the best. There are plenty of ways to promote your services, but not every one of them will suit your needs. Find and choose the ones that will be beneficial to you and then include an estimated budget for that section as well.
Operation plan sample in a business plan – how to?
Alright, you already know some useful tricks to make your home building business plan better, so you can avoid common mistakes. But how to create an operation plan sample in a business plan? Don’t worry, there are ways and patterns you can follow. The construction company business plan template, that I’m about to show you, will show you how to make a great document of your own.
There are several sections you’ll need to fill. I’ll introduce them to you below and explain what exactly needs to be put inside. Here’s your very own construction company business plan template.
- Executive Summary
It contains a summary of each key section of your plan. In that step, you explain to the reader what type of construction business you are operating as well as its status. Is your business a startup? Or, do you own a construction business that you would like to expand? Next, you give a brief overview of your key sections.
- Company Overview
This is the place to put the description of your business, which we talked about earlier, as well as the type of construction business you are operating such as:
- Plumbing business
- Electrician business
- Road & Highway Construction
- Single Unit Residential Housing Development
- Industry Analysis
This step is essential but is misunderstood by many companies. Create foundations for your expertise and don’t attack other businesses. Below are a few questions, so that you know what you’re looking for in your research.
- Is the market declining or increasing?
- Who are the key competitors in the market?
- How big is the construction business (in dollars)?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- Customer Analysis
The customers you serve will vary based on your type of construction business. Single-unit residential housing development companies have a very different clientele than commercial building construction companies.
Analyze your target customers and determine their demographic (ages, genders, locations, and income levels) and psychographic profiles (their wants and needs).
- Competitive Analysis
We discussed the most common mistake about that part in tip #2. How to stay professional about this part of a home building business plan? In this step, you should identify and analyze the direct competitors for your business.
Create a document in which you’ll keep an overview of your competitors’ businesses and note their strengths and weaknesses. Last but not least is to find and explore the areas of your competitive advantage.
- Marketing Plan
That part of business plans for construction companies should include a construction company marketing plan known as 4P(Product, Price, Place, Promotions). In your case “product” is more of a service, but it still needs a price. The place is the location of your construction business.
Lastly, promotion requires the answers as to how you will promote your services and the estimated budget for that.
- Operations Plan
This part of our construction company business plan template is all about the actions you’ll take to meet your goals. Divide that into two sections. One for everyday short-term processes such as doing construction, procuring supplies, hiring staff, etc.
The second section is about long-term goals and milestones you hope to achieve. It can be a date when you expect to serve your 100th customer when you hope to reach a certain amount of money in sales, or about the launch of a new service offering.
- Management Team
Operation plan sample in a business plan has an important key section “management team” where you can and should highlight your crucial players’ backgrounds, accenting those skills and experiences that prove their ability to grow a company.
- Financial Plan
In this step, you should include your 5-year financial statement. It will include your income statement, cash flow statements, and balance sheet. The key cost needed in starting a construction company could be:
- Salaries paid to staff
- Business Insurance
- Rent and utilities
- Taxes and permits
- Any purchases(equipment, tools, and input materials)
I showed you an operation plan sample in a business plan that you can easily follow whenever in need a tip about business plans for construction companies or construction company marketing plans. Make sure to remember the important tips which can help you get the investor you want. Writing it won’t be effortless and you can’t expect that after reading the operation plan sample in a business plan it’s just gonna happen. You need to analyze and evaluate many things such as finances, construction company marketing plan, and competitors. But after reading this article, you’ll know what to look for and what to avoid while focusing on making such a plan for your company.
