Currently, there is a tendency to reduce the number of purchased apartments in high-rise buildings. At the same time, the popularity of private houses has increased. The greatest demand is for small cottages, which can be attributed to the economy class. The price for them is within two hundred thousand dollars.
Today, many people choose not to buy finished houses. They acquire a plot of land and place an order with construction companies to build a cottage that would satisfy the tastes of future owners. In this regard, a very popular idea is the construction of houses as a business.
Is this business profitable?
A small construction business, however, like a large one, is very profitable in terms of making a profit. Sometimes there are periods when you have to wait for a return for a while. Such situations arise in the case of unfinished construction.
However, as a result, all financial investments will pay off and increase significantly. The profitability of this business is in the range of fifty to seventy percent. And this is a great result. In other words, the construction business can be said in a simpler way: profitable, profitable and cost-effective.
Possible problems
First of all, you will need to correlate your capabilities and desires. The construction business will require significant start-up investments. Before you start your own business, you need to write a business plan. The construction of cottages is especially beneficial in the construction of settlements. In this case, the cost per square meter of housing is significantly reduced. But it should be borne in mind that this will require significant investments, in particular, for the acquisition of a large land plot.
Having started your own business, you should not even try to win a large part of the market right away. You have to go from one step to another.
The problem of recruiting non-professional personnel is also relevant for construction organizations. It is important that there are no such employees in the state who will try to take out the materials or agree to “cook” somewhere on the side.
Careful attention to the choice of suppliers, business partners, as well as investors will help to avoid all kinds of pitfalls. Much will depend on your business sense and acumen.
First steps
From you, first of all, you will need to draw up a business plan. The construction of cottages in this document should be considered in terms of the investment that you are ready to make in your own business. In the event that significant financial investments are provided, it is worth opening your own construction company. At the first stage, it will be expensive, but over time it will definitely pay off.
Your business plan for the construction of cottages can also be considered from the point of view of investment. In this case, third-party companies are involved. However, it should be borne in mind that the profitability of the case will be somewhat lower.
Many other questions should also reflect your pre-written business plan. The construction of cottages begins only after studying the demand for suburban real estate, average market prices. All construction costs should be calculated, which will take into account the risks. key factor at this stage is the location of the land, because the laying of engineering communications significantly increases the necessary costs.
The costs of landscape design should be taken into account, because the landscaping of the territory has a great influence on the final prices and consumer demand.
Needless to say, the construction market is highly competitive. However, you shouldn't be afraid of it. Just like competition, demand is growing. But in general, investing in the construction of cottages is the most profitable type of investment.
Company registration
There are certain steps without which your own business cannot start. First of all, you need to register with tax authority as an LLC or sole proprietorship. The form of organization depends on the scale of the planned business. Companies will need their own letterheads and seals registered at a notary's office. In addition, do not forget about paying the state fee.
After all these procedures, a bank account is opened for transfer authorized capital newly created organization.
A prerequisite for construction company is joining the SRO. It is a self-regulatory organization whose membership is legally required. Otherwise, the firm can only perform Finishing work or do some cosmetic work.
Construction of low-rise buildings
The construction industry does not stand still. New and improved technologies are constantly emerging. Thanks to them, there has recently been a significant reduction in the cost of building low-rise buildings. Construction of a cottage can take from three to six months. That is why such a direction as low-rise construction has good prospects.
The business plan of your own business should include a list of materials that will be used by the firm. Classical concrete and brick is an expensive business. These materials significantly increase the cost of building housing, which is why prices for finished houses are rising.
An alternative option is also to consider a business plan. The construction of wooden houses allows not only to reduce the cost of housing, but also to make more affordable price to the cottage. This will attract potential buyers.
Cost reduction
In the event that the use of materials such as lightweight concrete and wood provides for a business plan, the construction of cottages becomes cheaper. Developers in this case invest in the construction of housing with an area of one hundred square meters, from twenty-five to twenty-seven thousand dollars.
It is worth saying that in a similar brick cottage, one square meter costs at least four hundred dollars. In the future, it is possible that new materials will appear for the construction of low-rise buildings, which will also reduce the developer's costs.
As before, the problem of housing construction is acute in our country. Demand for comfortable individual housing remains stably high even in conditions unstable economy and falls standard of living population. This construction business plan frame houses will help entrepreneurs to open a socially significant business that will help in solving the most important task.
General concept of the project
The construction of frame houses is one of the most profitable and promising areas in the development of low-rise construction. The variety of projects and structures of these structures, low costs for construction and finishing, simplicity of technology and the absence of the need to use bulky equipment create attractive conditions for doing such a business.
In frame construction, two main technologies are distinguished:
- Using the floor as a base (platform) for the erection of vertical building elements;
- The use of a rack-and-beam system, in which the entire frame structure of the future house is a complex of interconnected beams and racks.
Both of these technologies make it possible to flexibly adjust the area of structures and their number of storeys by increasing the length of vertical and horizontal elements. After the construction of the frame, it is subjected to double-sided cladding. As a rule, from the inside it is made of drywall or wood, from the outside - from moisture and windproof materials. Between the facing layers is a heater.
advantage frame construction it is also possible to combine it with a shield one, when the shield with strapping is fixed on the frame, sheathed on both sides, between which insulation is laid. Investments in the construction of such houses are small, so they are becoming increasingly popular in Russia. When using high-quality materials and proper care of the house, the guaranteed life of its operation is at least 50 years. Compared with brick, construction costs frame house lower by about 25-30%. In addition, there is no need to use expensive specialized equipment and machinery - a small team of builders can build such a house in just a few weeks, and at any time of the year, because there are no so-called "wet" processes in the technologies.
Our example considers the use of the "DKR" technology, developed by experienced practitioners in the field of erection of frame structures. They celebrate high yield construction of houses using this technology, which confirms our business plan for the construction of frame houses with calculations.
Market analysis
World experience clearly demonstrates a clear turn in individual construction to wooden buildings. Such housing is this moment is perceived not only as the most comfortable and environmentally friendly, but also as prestigious.
In our country, the share of wooden frame housing construction still remains very small, although it has been constantly growing in recent years. The Russian market potential is estimated by world experts as one of the most promising due to the fact that our country has 25% of the world's timber reserves, relatively cheap labor and modern technologies in this industry.
According to experts, the fact that today many developers choose brick and stone houses is due to Soviet legacy when almost any individual housing construction was not held in high esteem. This directly affected the quality of wooden houses, the very demand for wood as an effective building material.
At present, the timber frame housing industry is growing steadily. So, over the past 20 years, its volumes have increased by 6-7 times. According to official statistics from Research.Techart, about 7 million square meters are built annually in the country. m wooden houses. And this growth is facilitated by lower prices for them.
According to statistics for the regions, the most widespread wooden houses received in the Siberian, Northwestern, Ural and Far Eastern federal districts. In the Northwest there is an increasing transition to innovative technologies frame building. There is also such a trend as a non-uniform distribution of types of houses by area between regions. In the regions, small buildings are more in demand.
Frame houses on the market are positioned as the cheapest and most affordable type of housing. This is partly due to the spread of SIP technology, as the most promising for our conditions.
There are some restraining barriers for the further development of the industry. Primarily, we are talking about the complexity of an instant increase in construction volumes. AT medium term Until 2020, the annual increase in wood-frame housing construction will increase by about 10-12%, and in some regions - by 20-25%. Thanks to this, the Research.Techart forecast provides for the achievement of a market volume of 30 million square meters by 2020. m.
The market for frame houses in the country remains very capacious. This is due to the low cost of materials and the still modest use of wood as a building material. Abroad, the indicator of its demand is 10 times higher than in Russia.
In the near future, according to experts, the most popular will be the frame-panel technology, which will take 64% of the entire volume of wooden housing construction.
Activity Licensing
To carry out work on the construction of low-rise frame houses, obtaining a license is not required. The founder registers his business as individual entrepreneur and operates under a simplified taxation system (6% of profits). This choice determines the high profitability of construction and significantly reduces financial and administrative costs.
Recruitment
For the construction of frame structures at the initial stage of the project, specialists are involved who will work under a contract. The brigade includes:
- Project manager (duties are performed by the founder, combining with the functions of a manager).
- Foreman
- Specialists in the construction of foundations, the assembly of wall frames, the arrangement of hydro-, vapor barriers, water supply and sewerage systems.
- Finishers.
Accounting services are outsourced.
It is not envisaged to select premises for an office at the initial stage of development of a business project.
Labor costs (data calculated for one house):
| Name of specialty | Contract payment | Number of specialists involved | Total (in rubles) |
| foreman | 50 000 | 1 | 50 000 |
| Foundation builders | 35 000 | 2 | 70 000 |
| Wall framing specialists | 35 000 | 2 | 70 000 |
| Specialists in the arrangement of hydro-, vapor barrier, water supply and sewerage systems | 35 000 | 2 | 70 000 |
| Finishers | 30 000 | 2 | 60 000 |
| Total | 9 | 320 000 |
Marketing and Advertising
To promote services for the construction of turnkey frame houses, the following activities are expected:
- Creating your own business card website with the possibility of ordering a house project and a gallery of completed works.
- Organization of advertising messages in local newspapers, magazines, television and radio.
- Work in social networks.
- Placement of banners on the elements of urban transport infrastructure.
The main marketing resource of the company is the high quality of construction services and a flexible pricing policy.
Financial plan
Estimate for the construction of a frame house
The cost of building one house with an area of 175 sq. m according to the DKR technology and the main stages of construction are presented in detail in the following tables.
1st stage. Acquisition and cost of materials for the foundation:
| Costs for the purchase of materials | Quantity | price, rub. | Amount of expenses, rub. | ||
| gravel screening | 21 cu. m | 1 600 | 33 600 | ||
| Formwork (boards) | 1.5 cu. m | 6 500 | 9 750 | ||
| Screening under the heel, plate and blind area | 77 cu. m | 720 | 55 440 | ||
| Reinforcement (metal 14 mm) | 650 line m | 47 | 30 550 | ||
| Reinforcement (metal 8 mm) | 220 line m | 20 | 4 400 | ||
| Grid road 2х6 for a plate and a blind area | 16 cards | 1 700 | 27 200 | ||
| Cement | 5 bags | 270 | 1 350 | ||
| FBS blocks | 12 cu. m | 4 500 | 54 000 | ||
| EPPS insulation | 12 cu. m | 3 700 | 44 400 | ||
| Geofabric | 150 sq. m | 30 | 4 500 | ||
| waterproofing film | 150 sq. m | 27 | 4 050 | ||
| Concrete B-25 (for the heel, slab and blind area) | 17 cu. m | 14 400 | 134 400 | ||
| Consumables (bolts, nails, screws, etc.) | – | – | 10 000 | ||
| Mortgages | – | – | 6 000 | ||
| Rent of automobile construction crane | 2 shifts | 12 000 | 24 000 | ||
| Shipping costs for delivering materials | – | – | 18 000 | ||
| Total | 461640 | ||||
2nd stage. Platform (foundation) construction works:
| Types of jobs | Quantity | Unit rev. | price, rub. | Amount of expenses, rub. | |
| Axis outreach, development and grading | 47,5 | cube m | 600 | 28 500 | |
| Sand cushion dumping | 69 | cube m | 250 | 17 250 | |
| Arrangement of communication trenches | 3 | PC. | 750 | 2 250 | |
| Construction of a local drainage system | 25 | points | 230 | 5 750 | |
| Sand cushion dumping | 3 | cube m | 550 | 1 650 | |
| Foundation foundation rammer | 69 | cube m | 300 | 20 700 | |
| Reinforcing and pouring the heel of the foundation | 40,5 | cube m | 2 400 | 37 800 | |
| Installation of foundation blocks | 13 | sq. m | 1 200 | 15 600 | |
| pouring foundation walls | 12 | cube m | 1 650 | 19 800 | |
| Insulation of all structural elements of the foundation | 214 | sq. m | 170 | 36 380 | |
| Foundation pavement reinforcement | 55 | sq. m | 200 | 11 000 | |
| Laying horizontal two-layer waterproofing | 115 | sq. m | 20 | 2 300 | |
| Reinforcement and pouring of the slab and blind area for the foundation | 285 | sq. m | 650 | 59 750 | |
| Loading and unloading costs | – | – | – | 5 000 | |
| Sewer installation | – | – | 5 000 | – | |
| Arrangement of stairs and technical underground | – | pcs/sq. m | 15 200 | – | |
| Construction of a parking area | – | sq. m | 750 | – | |
| Total | 262 830 | ||||
Thus, the cost of materials and work on the construction of the foundation will be 724,470 rubles.
3rd stage. The construction of the power frame:
| Name of the type of work | Quantity | Unit rev. | price, rub. | Amount of expenses, rub. | |
| Manufacturing and installation of panels | 656 | sq. m | 500 | 164 000 | |
| Treatment of structures with an antiseptic | 44 | cube m | 1 300 | 57 200 | |
| Production of wall elements | 29 | cube m | 1 200 | 34 800 | |
| Rafter installation | 229 | sq. m | 900 | 206 100 | |
| Installation of ceilings on the 1st floor | 89,5 | sq. m | 390 | 34 905 | |
| Installation of lathing and moisture resistant plywood | 458 | sq. m | 500 | 114 500 | |
| Roof installation | 229 | sq. m | 350 | 80 150 | |
| Arrangement of steam and waterproofing | 229 | sq. m | 120 | 27 480 | |
| Installation of gutters | 44 | m | 250 | 11 000 | |
| The device of supporting structures | 6 | PC. | 1 500 | 9 000 | |
| Payment for loading and unloading works | – | – | – | 20 000 | |
| Total | 759 135 | ||||
Cost estimate for the purchase of materials for the construction of the power frame of the house:
| Types of materials | Unit rev. | Quantity | price, rub. | Amount of expenses, rub. |
| Antiseptic solutions and coatings | liter | 30 | 200 | 6 000 |
| asbestos pipes | m p. | 25 | 400 | 10 000 |
| Materials for arranging steam and waterproofing | sq. m | 1100 | 20 | 22 000 |
| Materials for arranging the drainage system | m p. | 44 | 2 000 | 88 000 |
| Boards | cube m | 60 | 23 000 | 690 000 |
| Insulation materials | cube m | 80 | 1 500 | 120 000 |
| Plywood | cube m | 5,5 | 18 000 | 99 000 |
| Roofing materials | sq. m | 236 | 500 | 118 000 |
| Windows included | comp. | – | – | 170 000 |
| Entrance door | PC. | 1 | 15 000 | 15 000 |
| softboard | sq. m | 406 | 230 | 93 380 |
| Consumables | – | – | – | 50 000 |
| Payment for delivery of materials | – | – | – | 25 000 |
| Total | 1 161 380 | |||
The total cost of materials and work on the construction of the power frame of the house is 1,920,515 rubles.
4th stage. Arrangement of the thermal circuit:
| Types of jobs | Quantity | Unit rev. | price, rub. | Amount of expenses, rub. | |
| Floor insulation | 89,5 | sq. m | 150 | 13 425 | |
| wall cladding | 203 | sq. m | 130 | 26 390 | |
| Arrangement of vapor barrier | 384 | sq. m | 120 | 46 080 | |
| Installation of wall insulation | 328 | sq. m | 150 | 49 200 | |
| Installation of window sets | 17 | PC. | 1500 | 25 500 | |
| Roof insulation installation | 180 | sq. m | 350 | 63 000 | |
| Installation of external doors | – | 1 | – | 3 000 | |
| Total | 226 595 | ||||
Thus, the total cost of building a frame house using the DKR technology will amount to 2,871,580 rubles. Such a house will have excellent thermal insulation characteristics. It keeps cool in summer and warm in winter.
Project payback
The payback period of the project depends on a number of factors, the main of which are regional and seasonal. The average selling price of frame system houses built using the DKR technology is 3.5 million rubles.
We take into account the following factors:
- Construction is expected to be carried out from April to October by a phased conveyor method (transition of specialists from one type of work at one facility to another).
- The average time for the construction of a turnkey frame house is about 2 months.
During the season it is planned to build 8 houses. The volume of total revenue at such a pace of construction will amount to 28 million rubles, and total costs - 22,972,640 rubles. Thus, gross profit under the project, excluding the cost of remuneration of specialists and taxes, will amount to 5,027,360 rubles.
The salary fund for specialists for the season is 2,560,000 rubles. The amount of taxes paid for the season is 301,641.6 rubles.
Taking into account these costs, the value net profit under the project for the season will amount to 2,165,718.4 rubles.
Potential risks
There is high competition in this business area, which will only increase in the coming years. This factor is the main type of risk that may accompany the implementation of a business project. At its initial stage, minimization is achieved by choosing the narrowest specialization in construction and pursuing an active marketing policy.
The risks associated with the low qualification and labor discipline of the specialists involved in the work have a high degree. They are leveled at the preparatory stage by conducting a competitive selection of employees on the basis of recommendations.
The seasonal factor is most noticeable during periods when construction is impossible due to weather and climatic conditions, so it is closely related to the regional location of facilities.
In general, the construction of frame houses and structures refers to the type of activity with a cumulative average level of potential risks eliminated due to the competence and diligence of the founder.
Eventually
The calculations presented in this business plan clearly show that the construction of frame houses is a profitable and promising line of business. The profitability of the construction of such facilities is estimated at 30-40%. With a competent approach to organizing the business, the founder will be able in the future to move on to creating his own company specializing in fulfilling orders for the construction of entire villages.
Building low-rise buildings for sale a few years ago was quite profitable business with low risks and fairly good profitability. Cottage settlements around large cities and regional centers arose one after another. Small construction companies did not lose out, because the difference between the price per 1 square meter of finished housing and what was invested in the construction of buildings (margin) was quite high, and “entry” into the business did not require so many resources.
Now the situation has changed. It can be said with regret that the construction of low-rise buildings for sale is not a very suitable line of work for entering commerce. Even if an entrepreneur has a good start-up capital, it will be difficult to start building.
Auctions for Big Commerce
Each house begins with a piece of land on which it will be built. And it is at this stage that novice businessmen, who have already come up with plans in their minds for the cottage villages they have built, will be disappointed for the first time.
Free land for individual housing construction (individual housing construction) almost always represent a municipal asset (owned by the mayor's office or the regional administration), which the authorities try to sell or lease on the most favorable terms for themselves. How does this happen:
- Urban planning plan, which is in every major locality, reserves plots for such development in advance. As a rule, the document is updated once every five years.
- An auction or tender is announced for the right to build a site. What can the authorities “want”? Always an impressive amount of money. Even in the provinces, this amount sometimes exceeds 100 million rubles for two or three dozen hectares. And the land in most cases will not go to your property. Only rent.
Cash is not all that officials from the property management of the administration of the city, region or region may wish for. Practice recent years shows that the contract stipulates the construction of "all necessary infrastructure". This, attention: kindergartens for a certain number of places, a polyclinic or FAP, intra-quarter roads, engineering communications - electricity, water, sewerage, gas, if provided for by the development plan. Even one project for the development of such a territory costs a lot of money.
The logic of the authorities is clear. Providing infrastructure for new areas is the responsibility of the municipalities, but the latter do not have the money. So they are looking for extrabudgetary sources of funding. Failure to comply with these terms of the contract threatens with the loss of the right to lease, even if the plots already have houses in a high degree of readiness.
Another common condition for tenders for the development of new territories is the requirements for the developer company itself. This may be business reputation (already existing experience in the implementation of such projects), the size of the authorized capital, the availability of certified specialists, and a million more conditions. You can find an announcement of such an auction yourself on the federal public procurement website or its regional equivalent. We assure you, you will understand a lot.
So, despite the fact that the Ministry of Construction claims that low-rise construction is suitable for small and medium-sized businesses, practice shows the opposite. The creation of complexes is a big business with large incomes, and the path for beginners there is still booked.
But you should not despair. You can try a different, smaller business model.
Private sector, dilapidated houses
The most real way that will allow you to test your experience in construction industry and earn money for the implementation of large projects - buying dilapidated houses in the private sector of your city, demolishing this housing and building new modern houses in its place.
This is not to say that this is an easy path - in this field you can encounter numerous difficulties. They are waiting at the stage of buying a plot with a dilapidated house, developing a project and approval by the administration, connecting to engineering networks. Be prepared for the fact that you will need a qualified lawyer who will take on this bureaucratic part. It is important to note that quite a lot of time will pass from the purchase of a dilapidated house to the start of construction of new low-rise housing - from several months to a year or more. This means that money will be invested, but nothing in return. We need a solid financial reserve.
We will not describe the construction process itself, as well as calculate the amount of investments. The cost and technology of building a brick and frame house differ dramatically. But you will also have to include these investments in the estimate.
After completion of the work, you need to legalize the "fruit" of your efforts in the regulatory authorities. We will not touch on this topic at all, since it is very extensive and worthy of a whole series of articles. Delegate these issues to your specialist, whose hiring has already been mentioned.
Only after all the documents are ready, you can start selling, and here everything depends on the market. During construction, real estate prices of this kind may increase or, on the contrary, fall somewhat. The purchasing power (and hence the activity) of the client - to grow or, conversely, to decrease. This is a risk, and you need to be prepared for it.
But we can reassure a little: according to experts, since the legislative approval of private property in Russia in the post-Soviet period, real estate has been and is one of the most reliable means of investing capital and has practically not collapsed in price. Therefore, the asset will be sold necessarily, sooner or later.
Advantages and disadvantages
We summarize the cons of building houses for sale as the main type of business:
- A large amount of initial investment and investment in the conduct of work.
- The long payback of the project is 2-3 years.
- A complex procedure for obtaining a building permit and putting the facility into operation.
- Risks associated with the state of the real estate market and purchasing power clients.
Key benefits of building houses for sale:
- The opportunity to gain experience and business reputation and try your hand at major projects for the development of the area in the future.
- Obtaining a reliable and liquid asset.
- Low risks of loss of invested funds (provided that the construction was carried out in compliance with all legal norms).
Entrance from the other side
If, nevertheless, the thirst for business, and specifically the need to build houses, moves you forward, start simple. Difficulties and pitfalls are needed in order to overcome them, otherwise you are not an entrepreneur. Building company, which does not sell, but builds houses for specific clients according to their projects on their sites, risks much less. No need to invest in land or dilapidated housing, interact with officials, rent a house after construction is completed. This is the client's headache.
Quality work will create a reputation and, importantly, provide capital to move to a new level. In addition, the company will "grow muscles" in the form of the necessary production facilities (equipment, tools and special equipment), a team of specialists - from technologists and foremen to reliable and professional teams of workers. At this stage, it will be possible to acquire connections in administrations, architectural departments and regulatory bodies, which will allow solving many issues related to construction with greater efficiency. And it's worth it.
In the opinion of experts, such an entry into the business is acceptable for aspiring entrepreneurs who want to join the construction industry and eventually become major players. And we are in complete solidarity with them.
Remember that the path to a big goal consists of many small steps. Go ahead. Who knows, maybe a small construction company founded today will become a major player industry and will build not only cottage settlements in the suburbs, but also residential high-rise blocks in regional centers.
The real estate market gives a paradoxical picture: apartments, even in small towns, cost a lot of money, and country houses, country houses, taking into account all the necessary communications, cost from $23,000 to $30,000. At the same time, the area of such a building will not exceed 60 square meters. But in an apartment, families often huddle in "birdhouses", five of us for 40 square meters. Yes, and they buy such buildings for $ 35 thousand and more. But with country houses everything is different.
It is comfortable to live here, clean air, a large area of the house and a plot where you can organize a garden, a vegetable garden and raise animals. But, even looking at such advantages, people are still chasing apartments, but country houses are being built for temporary residence. But there is a demand for such services, and it has remained consistently high over the past decades.
Having comprehended the above information, it can be concluded that the construction country houses for temporary or year-round living- a very successful business. Of course, it is necessary to invest in its development a large number of efforts, and to travel around the villages in search of suitable houses is not an easy task. But, those who decide on such a thing will surely succeed. Indeed, although the work is difficult, requiring knowledge and effort in this industry, the profit will be sure to be impressive.
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Hiring a work team.
This is the first step to building a business. A good team of professionals becomes the right solution for a successful business. This is a team of 5-7 people. One must be chosen as a leader or foreman. He will be responsible for the work of the others, which means there will be more demand from him, and the maximum salary will have to be paid. All specialists are builders with good experience. When hiring people, it is important to get feedback about them. An important aspect becomes honesty. Some people make money by stealing Construction Materials from customer. It is important to know that hired people do not differ in this character. Since it is necessary to start a business in the season, it is best to choose the spring. Then after the first few months of work, it may happen that it will be necessary to hire a second team of workers. But, you just need to start with one.
Salary will be piece-rate. Of course, each worker will have his own minimum payment labor and to everything it will be necessary to add bonuses. This is to stimulate the completion of work ahead of schedule, high quality, greater returns. About $4,000-6,000 should be allocated to pay the workers of one brigade.
Room selection.
The business requires an office, as well as a warehouse for storing inventory. It is better to hire an office in a city, in a busy place, so that we pass and cars passing by can clearly see your sign. Meetings with clients will take place in the office. Here it will be necessary to organize everything for meeting the client and providing already finished works. In the first stages, it will be possible to show options or layouts, with which you are ready to work. The office may have a small area - about 27-30 square meters. All communications are important for comfortable work, office furniture.
Separately, it is necessary to organize the work of storage facilities. An excellent option is a hangar and a large garage. Here it is necessary that the work of electricity was established, the room was clean and free of pests. The tools for work and the necessary materials will be stored here. In total, about 120-150 square meters are needed. Taking into account the rent of office space and a warehouse, at least $ 1.2 thousand is needed for work.
Equipment.
For the work of a team of workers, it is necessary to buy the following devices for construction:
1. Electric planers (at least 2 units) - $500;
2. Chainsaw (at least 3 units) - from $ 700;
3. Small power plants - $600;
4. Construction cars - $200;
5. Stairs - $150;
6. Sets of construction tools - $3,000;
7. Level - $400;
8. Distance meter - $90;
9. Tools for land works(shovels, picks, crowbars, and so on) - $350;
10. Tools for concrete and formwork work (boxes, hammers, nail pullers, castings, etc.) - up to $1,000;
11. Drill - $1.2 thousand;
12. Screwdriver - $700.
The total cost of the minimum set of equipment will be at least $20,000.
For the initial stage of work, you can ask the builders to bring their tools from home. And only after the formation and promotion of the business, it will be possible to add investments in the purchase of the necessary equipment.
Materials.
A separate cost of income will be the purchase of materials for work. Some customers will tend to buy everything themselves, deciding that they will choose the best materials. But, at least half, simply because of not wasting their time, will give the issue of investing money to specialists in this industry, that is, to you. And here it will be possible to agree with companies that you have a personal discount. This percentage additional discount due to large volumes, the purchase will become your separate profit. Sometimes this amount can reach several thousand dollars when working with large objects. For the construction of country houses, materials such as timber, ceramic block, aerated concrete, materials for roofing and interior work, and so on are needed.
In total, this aspect and the purchase of a minimum set of materials require at least $ 9 thousand.
Any business requires competent advertising. In addition to the website, advertising on the Internet, work on forums, online service It is important to place a good sign in your office. You can also invest in outdoor advertising in different parts of the city and at the entrance to the city, advertising on radio and television. Distribution of leaflets, demonstrations of your own projects and any other activity that draws attention to your company is acceptable. In total, at least $1,000 is needed to start a marketing strategy.
Basic costs.
The main costs of your business will include:
1. Hiring workers - $4-6 thousand;
2. Rent of premises - $1.2 thousand;
3. Equipment - $20 thousand;
4. Materials - 9 thousand $;
5. Advertising - 1 thousand $.
When working on organizing a business for the construction of country houses, you must own a capital of at least $ 37 thousand.
Profit and payback.
The return on investment will pass in 1-2 seasons. The profitability of this business can reach 40%. About 5-10 thousand dollars are raised from one object, depending on the size and complexity of the work. Here the calculations are carried out strictly by quadrature. Working in this business, you can earn at least $15,000 per month.
Business development and clients.
Clients are individuals and legal entities who want to have a country house. Most often - these are people with average and above average incomes. Business can be developed in many directions. Here you can build not only country houses but also serious country houses. You can also do work in the city. At the same time, you can work making furniture, ennobling garden plots building baths or saunas. There is enough work in the real estate market, it is only important to bypass competitors.
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Construction of private low-rise houses for sale- a promising project, which, however, will require not only high costs, but also detailed organization, which means business plan is needed here.
Demand for private residential buildings grows every year: tired of life in the stone jungle, people strive for a quiet life, away from annoying neighbors and fuss. dream of my cozy home embody a large number of construction companies, so a novice entrepreneur needs to understand that competition in the construction market for low-rise private houses is quite high. But this is not a reason to abandon a business idea, the key to success here is competent planning and organization.
If you want to get a loan or attract investments, then a business plan for the construction of private low-rise residential buildings will be an ideal solution in such a situation.
Key Features business plan for the construction of private low-rise residential country houses for sale with settlements
Features of planning the construction of residential buildings
The construction of private residential buildings is a profitable business, but associated with some economic risks. At the development stage business plan for building houses for sale they must be taken into account.
So, the possible risks are:
- High competition in the developer market
- Business seasonality
Business plan must develop a strategy for avoiding possible economic pitfalls and transforming construction of low-rise buildings into a profitable business.
Description
Files
Main activities
Provided that the construction of a private house implies economic benefits, that is, you are building not for yourself, but for sale, it is important to understand not only the construction technology, but also the market details of the business.
Any business is a combination of several activities and construction of private houses for sale is no exception, so business plan each one needs to be analyzed. :
- Construction design (concept, drafting design and estimate documentation and other legal issues)
- Search for prospective buyers and analysis of the target audience in general
- Own construction and connection to networks
- Legal and accounting support affairs
Based on the volume of preparatory, construction works and work of a purely economic nature, we can conclude that it is necessary to carry out business plan serious calculations construction of private houses- a case involving serious investment risks which should be avoided at the stage of business planning.
1 - Summary
1.1. The essence of the project
1.2. The volume of investments to launch the construction of private low-rise residential country houses for sale with calculations
1.3. Work results
2 - Concept
2.1. Project concept
2.2. Description/Properties/Characteristics
2.3. Goals for 5 years
3 - Market
3.1. Market size
3.2. Market Dynamics
4 - Staff
4.1. staffing
4.2. Processes
4.3. Wage
5 - Financial plan
5.1. Investment plan
5.2. Funding plan
5.3. Sales plan for the development of the construction of private low-rise residential country houses for sale with calculations
5.4. Spending plan
5.5. Tax payment plan
5.6. Reports
5.7. Investor income
6 - Analysis
6.1. Investment analysis
6.2. The financial analysis
6.3. Risks of construction of private low-rise residential country houses for sale with calculations
7 - Conclusions
A business plan for the construction of private low-rise residential country houses for sale with calculations is provided in MS Word format - it already has all the tables, graphs, diagrams and descriptions. You can use them "as is" because it's ready to use. Or you can adjust any section for yourself.
For example: if you need to change the name of the project or the region where the business is located, then this is easy to do in the "Project Concept" section
Financial calculations are provided in MS Excel format - parameters are highlighted in the financial model - this means that you can change any parameter, and the model will automatically calculate everything: it will build all tables, graphs and charts.
For example: if you need to increase the sales plan, then it is enough to change the sales volume for a given product (service) - the model will recalculate everything automatically, and all tables and charts will be ready immediately: monthly sales plan, sales structure, sales dynamics - all this will be ready .
A feature of the financial model is that all formulas, parameters and variables are available for change, which means that any specialist who knows how to work in MS Excel can adjust the model for themselves.
Rates
Volume: 75 pages
MS Word MS Excel PDF
Complete business plan with financial model
- Detailed business plan for the construction of private low-rise residential country houses for sale with calculations
- Detailed financial calculations construction of private low-rise residential country houses for sale with calculations
- Project optimization for your conditions
Volume: 75 pages
MS Word MS Excel PDF
VIP tariff + Turnkey work
Feedback from our clients
Feedback on the business planconstruction and opening of a business center
We ordered the preparation of a business plan from Plan-Pro, as a result, this document helped us get a loan of 170 million for the construction and opening of a business center. Analysts have done a great job to draft the document correctly and on time. The bank received exhaustive answers and gave us a loan, so thank you very much.
Altynai Bekhsimbaeva, Volgograd
Feedback on a business plan for the construction of a shopping and entertainment center
A business plan that analysts from a consulting company website completed in accordance with all Russian and international standards allowed to attract investments totaling over 60 million rubles. Investors were pleasantly impressed by the finished business plan: very high-quality and conscientious work, the details were perfectly worked out.
Yulia Nikolaevna, Executive Director, Samara
Feedback on a business plan for the construction of private low-rise residential country houses for sale
A business plan was bought for our own needs, to calculate the payback of the project and other parameters. Formulas for calculating the break-even point and for calculating total profit set out in a fairly simple and understandable language; you can substitute and change numbers depending on inflation and profit; beautiful decoration.
Maxim Maksimovich Isaev, Moscow
Feedback on the construction business plan residential complex multi-apartment high-rise buildings
When ordering a ready-made business plan from a consulting firm, the site was a little worried, but in vain. The business plan is of the highest quality finished document worth your money. He helped me get to the bank VTB loan in the amount of 85 million rubles for the construction of a residential complex of multi-apartment high-rise buildings.
Alexandra Gavrilova, Vladivostok
Feedback on the business plan for the construction of cottages
A very high-quality financial model that allows you to change all parameters and fine-tune the project. The business plan for the construction of cottages, bought on the site, the site allowed us to attract private investment in the amount of 50 million rubles. Thanks for the exemplary work!
Vsevolod Vladimirov, Financial Director, Moscow Nizhny Novgorod
Feedback on a business plan for the construction of private low-rise buildings
The construction of a residential low-rise complex of private houses is a costly business, and at the stage of planning our business, we faced the problem of lack of funds. To obtain a loan from a bank or conclude agreements with investment partners, a financial model of the project with all calculations was required. To solve this problem, we turned to specialists and purchased a ready-made with all calculations at Plan Pro. Clear and transparent schemes for the profitability of the business, payback periods allowed us to easily get a loan from Sberbank in the amount of 90 million rubles. And the development model proposed in the business plan helped us not only quickly recoup our costs, but also get a decent income.
Vishnevsky M.A. Moy Dom LLC, Nizhny Novgorod Region
Development of a business plan for the construction of private residential buildings
The concept of a business plan for the construction of low-rise buildings
It is important to understand that the competition in the construction market is very high, so at the planning stage, you should first of all decide on the general concept of your project and the target orientation. When compiling business plan it is necessary to clearly understand what residential at home you build ( country or that urban development), for which buyer they are designed (standard or elite construction).
Due to the choice of the format construction activities marketing and advertising campaign should be planned. This is especially important for a budding entrepreneur.
The main questions of the business plan
For a complete analysis of the proposed case business plan for the construction of private residential buildings should consider the following questions:
- Market analysis and marketing strategy
- Investment Analysis
- Construction process
- Recruitment of employees
- Budget calculation
- Payback periods
Market analysis and marketing
Since the level of competition in the chosen construction business is extremely high, experts advise the aspiring entrepreneur to carefully analyze the local relevant market and choose to start with one narrow focus of the business, for example, the construction of luxury housing.
Based on the selected format in business plan for the construction of private residential buildings you should define your market advantages, for example:
- Logistically convenient office location
- Individual approach to the client and high service (at small company more likely to practice it successfully than a large one)
- Unique, modern technologies construction
- Environmentally friendly materials
- Reliability and completion of work on time
AT business plan for the construction of residential buildings for sale an advertising campaign should also be developed. The choice of advertising channels will also depend on the construction niche you have chosen, for example, when building suburban luxury housing, it is not advisable to lay out flyers in budget-level beauty salons.
In general, of course, it is best to use different types advertising, ranging from the usual form of ads in the media and ending with website promotion and contextual advertising.
Legal registration of business
When compiling business plan for the construction of private residential buildings it is important to immediately determine the form of organizational and legal activity (for example, individual entrepreneur or LLC). And choose a taxation system, for example, the simplified tax system.
If you are planning a permanent staff of workers, then you need to register the company with the Social Insurance Fund, Pension Fund and the employment service.
An important legal issue is the design and estimate documentation. Conventionally, this process will consist of the following steps:
- Training project documentation for the construction of private houses
- Obtaining permits and approvals from regulatory authorities and administration
The process of designing, building and commissioning a residential building is accompanied by a large number of permits (for example, from the fire department).
This type of business is not subject to licensing.
Legal registration of this type of business will require from you not only a lot of time and effort, but also financial costs(payment state fees, taxes). Therefore, all relevant costs must be included in business plan for the construction of private residential buildings.
Investment Analysis
When calculating the initial budget in business plan for the construction of private residential buildings for sale the following elements should be taken into account:
- costs for legal registration business and taxes
- purchase of land for construction
- construction and installation costs
- advertising budget
- wage workers
- payment for contractors
- communal payments
- other expenses, including "airbag"
The total investment will be approximately 100 - 500 million rubles. It is important to understand that this figure is approximate and depends on many individual factors, such as the scale of construction and the number of facilities. The most correct and correct indicators can be provided to you only by a system developed individually for you. business plan construction of low-rise residential buildings.
Thus, all calculations are directly related to the individual financial program individual business, so it is difficult to accurately predict specific investment figures. However, our company can provide you with significant assistance in the formation of your business project. For this you can download ready business plan for the construction of an individual residential building. The financial structure developed in the sample will allow you to most accurately determine the amount of investment and calculate economic efficiency affairs.
You will need a much larger amount of investment if you decide to build multi-storey buildings. will help you evaluate everything significant indicators this project, and determine the possibility of its implementation for themselves.
Construction process
The construction process itself is the most time-consuming stage of organizing a business, requiring large financial investments. Conventionally, the following stages of this process can be distinguished:
- preparation of a conceptual design
- development of design estimates
- construction and assembly
- joining networks
- acceptance
When developing these questions in residential construction business plan urban or country private houses Special attention should be drawn to some nuances
- compliance with building codes;
- construction in compliance with the conceptual design
- when choosing contractors and construction teams, preference should be given to reliable companies with a reputation
- when choosing a site for construction, it is necessary to take into account its logistics, as well as correlate it with the construction format
The issue of equipment should be taken no less seriously. Experts advise at the initial stage to rent the necessary equipment, and buy only those tools that you plan to use constantly.
Recruitment of employees
When planning construction of private residential buildings in a business plan it is necessary to determine the staff.
Among the permanent employees of the construction company include:
- Supervisor
- Accountant
- Manager
- foreman
Design and construction teams a narrow focus can be hired on a contract basis. There are many offers on this market and it is important to establish cooperation with a reliable company in order not to spoil the reputation of your company.
In any case, based on individual characteristics your business, you can correctly formulate the number of employees, as well as calculate the cost of their wages.
Budget calculation
Business plan for the construction of private low-rise residential buildings should help you not only deal with organizational structure project, but also with calculations of financial movements.
The main items at the initial stage will be: legal registration of a business, purchase of a land plot, building materials, equipment costs, wages, etc.
It is difficult to guess the amount of income now, since in the example home building business plan we cannot take into account the indicators and specific factors of a particular business.
Payback calculations
The construction business at first always requires considerable costs, however, with the right construction private house business plan it has a fairly short payback period.
Forecasting revenue from the construction of residential buildings, which for the xxx period will amount to xxx thousand rubles. carried out taking into account all the individual characteristics of a particular economy. But you can calculate the approximate amount yourself, based on the average prices for low-rise buildings in Russia, which for the period xxx amounted to xxx rubles.
The average payback period for your business will be approximately 3 to 5 years.
It is important to understand that the compiled individual business plan for the construction of a private residential building will take into account the features and real indicators of your particular business, which will allow you to correctly calculate investments and predict income.
The business plan has a clear structure, contains detailed financial calculations, and the financial model allows you to flexibly change any business parameter. This is the best solution for those who plan to attract investments, want to get a loan or have a ready-made template for developing their business plan.
Information. These are data from equipment suppliers, and industry portals, and interviews with market experts, and official statistics - such a systematic data analysis gives a complete picture of all project parameters: prices, equipment costs, premises costs, costs, etc. .
Download a ready-made business plan for the construction of private low-rise residential buildings with financial calculations and an Excel financial model
Thus, Building bussiness- a profitable business, but associated with certain rather large investment risks, which are important to avoid even at the planning stage. A competent development of a business plan will allow you to consider in detail all the nuances of the formation of this business, to calculate its economic efficiency.
To save your time and energy, you can download finished sample business plan for the construction of a private house with calculations. Economic structure and clear, precise calculations presented in the sample will help you develop financial model your project. In addition, we offer to develop for you a unique turnkey business plan, taking into account the specifics of your particular enterprise.
Business in the field of construction of private residential buildings is an enterprise, a multi-level and costly enterprise, but with detailed development residential building business your business will quickly pay off and will bring a decent income.
