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General Contractors/Marketing

Making a Business Plan for your Construction Business

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There is no better time for starting your construction business than right now. The construction business industry is starting to revitalize again and boom once more in the recent years, thanks to the increasing demand in housing and in commercial business office space. Construction businesses are also among the top fastest-growing small businesses in the past decade – even the more reason to make that move into the construction industry.

Before starting your construction business, it is important to first come up with a solid and comprehensive business plan. By creating a business plan, you get to figure out ahead of time the many aspects that you will need to consider about. By also creating a business plan, you will be able to understand your construction business even more and everything that it entails and shall require of you. If you are also securing financial support from investors or a business loan from a bank, a business plan will also back up your idea of a construction business. 

Here is the basic structure of a business plan fit for a construction business plus some tips:

Executive Summary

In this section, you should provide a brief overview of your construction business. You should include a summary of the following:

  • Your company‚Äôs vision and mission or your goals and action plans. Also, provide background information about your previous construction experience or your educational background. Keep it professional and credible.
  • The products and/or services that your construction business will specialize in and what kind of customers you will cater to.
  • You should also be able to convince investors of the potential success of your construction business using market data – your strengths, your edge from the competitors, and your marketing strategies.

Company Summary

Discuss important details about your construction business such as your company name, entity, contact information, and location of base operations. Also provide a summary of the financial and other essential requirements that your construction business will need to fulfill before operating.

Products and Services

You enumerate and describe all of the products and/or services that your construction business will be offering. Writing this section is also the perfect opportunity to think about which sector your construction business will specialize in. There are three main sectors in the construction industry: a) residential and non-residential building and renovation, b) infrastructure or large-scale public works like highways, bridges, etc., and c) industrial plants and manufacturing facilities. Or you may list products and/or services that are more specific such as general plumbing services, home remodeling, etc. Make your products and/or services varied to maintain consistent work for the whole year.

Occupational Safety and Health

One of the responsibilities of having a construction business is ensuring the safety and health of your people as well as that of the surrounding communities in your construction sites. Discuss possible safety issues and health hazards and address them all by complying with relevant laws and regulations.

Market Analysis Summary

Conduct a market analysis research to fully assess the construction industry in your locality or in the national scale. State the current market conditions and how will it be promising for your construction business. Translate these into statistics, accurate data, and financial numbers to be make it more compelling.

Target Market

Provide clear information of the market that you will be targeting with your products and/or services. You may also consider having a niche for your construction business. You should be able to explain why you choose this particular target market – do you believe this is an untapped market? Do you believe your construction business will be able to stand out and succeed with this target market?

Marketing Strategy Plan

In this section of your business plan, provide a summary of how will you market your construction business to your potential customers. Outline your core marketing strategies in acquiring and retaining your potential customers.

Sales Forecast

Based on your market data, make an estimate of your sales for the first 12 to 24 months of your operation as a construction business.

Management Summary

You should be able to identify your core management team as well as your management principles that you will use as a guide. List down all the decision-making positions for your construction business and include a brief summary of their main duties and responsibilities.

Personnel Plan

In this section, list down the remaining personnel that you will be needing in the operation of your construction business and the corresponding number of personnel, how much will it cost you for at least 12 to 24 months of operation, subcontracted labor, and other employee-related expenses.

Financial Plan

Now, it is time to crunch some numbers. The financial plan and analysis must be as detailed as possible. This section of your business plan should include the following:

  • Projected Cash Flow (for at least 1-2 years of operation)
  • Break-Even Point Analysis
  • Projected Profit and Loss
  • Projected Balance Sheet (showing assets, liabilities, and capital, to indicate projected net worth)


In the last part of your business plan, include all the tables you have shown earlier like your sales forecasts, personnel numbers, cash flows, and such. Also include documents that supports or details some information you have earlier provided like your market analysis data and so on.