Where do you even start when it comes to mapping out everything in your construction projects in the UK? No, we’re not talking about the blueprints for the buildings! But rather, a business plan that takes care of how you will manage the financial, operational, sales, and marketing goals. Success in the construction industry depends on how well you are prepared for the competition. And by well prepared, we mean how you research and write it down.
The importance of a business plan
Suppose you’re still wondering how it would help? For starters, let us take an example. 5-10 years down the line, you want to achieve a certain target. It can be acquiring a business loan for your projects, deploying a trade recruitment agency, employing specialized roles, like green building tradesmen, bidding for government contracts, and keeping your business adaptable as it grows. That is a whole lot of things to keep track of! So, writing down all of it as a business plan keeps a check on what is actionable and what is not.
What to include in your construction business plan?
There are lots of templates and guidelines you can find on what to include in your construction business plan and what not to. You don’t need to follow the exact steps, but here are some of the common methods you can use in a chronological order :
- Create an executive summary: The highlights of your business plan
- Company name and details: Choose the company and domain name
- Conduct market research and analysis: A Comprehensive understanding of competitors, industry practices, and customers
- Create an operations plan: The operations plan takes into consideration the practical aspects of running the business
- Create a marketing and advertising plan: Takes care of the promotional features of the company
- Define organizational roles: Provide descriptions of key personnel
- Write Your Financial Plan: Outlines the monetary aspects of the construction business
- AppendixAs an additional point, you can include apprentices, but it all depends on what your business policies are.
1. Executive summary- The Business in a Nutshell
The executive summary is the overall summary of the business plan. It gives readers an idea of what your company’s goals, strategies, market position, and financial outlook are. Even though it is placed on top of the list, it is written after the rest of the plan has been developed.
An executive summary that is easy to understand should grab the attention of the reader.
An example of the executive summary of a construction business can be :
“ XYZ Builders is a construction business company that includes sustainable practices with a commitment to customers, innovation, and quality. We deal in residential to industrial projects, with the help of the latest technology and a strong workforce, our business aims at giving you the best in the construction sector.
2. Business name and details
To have a strong brand identity, it is important to choose a suitable name. A name that is catchy and memorable brings recognition and trust. Choose a domain name that is easy to spell and doesn’t take up space. Check for its availability and how well it will fit with your company’s presence and branding. Once you’ve found the perfect name, register it accordingly.
3. Market analysis and research
Market analysis is important in identifying customer needs, industry trends, and competitor rankings. A comprehensive study of the market provides insight into loopholes, sustainable practices, and the challenges it faces. Conducting a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis helps in understanding what the strengths, weaknesses ( residential, industrial, commercial), and threats (skills shortage, high material prices, negative economic growth) are.
4. Operations plan
An operations plan details the day-to-day workings of your business. From project management to supply chain. This section provides :
- Location: Office, construction materials storage facilities, and yard
- Equipment and technology: Tools, machinery, vehicle, software
- Supply Chain Management: How materials and workforce will be outsourced
- Project Management Process: planning, executing, monitoring, and closing projects
- Health and Safety: An important feature, as the UK construction industry emphasizes H&S regulations, CDM regulations, risk assessments, and training
- Environmental factors: Is the construction project sustainable or not?
- Legal and Regulatory Compliance: What kind of permits, insurance, and licenses do you need?
5. Marketing and Advertising Plan
What promotes your construction business? It is marketing and advertising! Strategies like digital marketing and social media marketing, and content marketing are one of the ways to engage customers and a general audience. Showcasing successful completed building projects and customer satisfaction is one way of building a reputation.
Building a reputation means having a consistent brand image, and that is achieved by creating a visual impression through logos and catchy lines that advertise your projects.
6. Organizational roles
Management is an important part of any construction business.
A clear chart that shows the role of each position, responsibilities, and staff in a hierarchical fashion. This delineation is helpful for business owners who want to assign jobs based on structure and priority.
7. A financial plan to monitor monetary aspects
A financial plan draws out key factors like funding costs, loan grants, sales forecast, profit and loss projections, cash flow projections, balance sheets, break-even analysis, key assumptions, exit strategies, risk management, and mitigation related to indemnity and insurance.
8. Appendix (optional but useful)
An appendix is important if you want to cite references based on your documentation. It is a summary or backup of the claims made by your company. It includes CVs and details of your employees and workforce, important memoranda, letters, equipment lists, tenders, and legal documents.
Conclusion : A Construction Business Plan is a Foundation for Adaptability
A construction business plan is the blueprint for organizing all your goals into a simple and coherent manner. You do market analysis, outline an operations plan, then market and advertise, assign operational roles, monitor financial aspects and lastly add an appendix.
The unique thing about these steps is how they can be swapped and removed as per your business size: big or small. And this shows how adaptable it can be for you when writing it down or applying it on your construction business projects.Hence, look no further, Trade Recruit provides you a systematic plan to achieve your construction business plans, so, contact us now!
