Such is that it will not be possible to start it without investments. Even if a newly minted entrepreneur is a jack of all trades and knows all the intricacies of this work, he will need money to buy a tool. And it costs a lot. It is futile to engage in such activities alone, so the entire team will have to purchase equipment. If you are thinking about how to start a construction business, then you need to consider and choose one of the following areas:
- repair and finishing work of any level of complexity;
- geodetic works;
- construction of buildings and structures.
There are two ways to organize your business. The first option is to register as an individual entrepreneur and perform small amounts of work. In the second case, LLC registration will be required. This is a more profitable option for the construction business, but it will require significant investments. Those who have decided to test themselves as an individual entrepreneur are advised to pay attention to the provision of services for the construction and finishing of frame houses. Today this is the most cost-effective way to organize a construction business. You can start it with a small amount, enough to purchase the most necessary tools: circular and miter saws, thickness planer, screwdrivers, jigsaw, concrete mixer and numerous hand tools.
If you want to start a big business, you will need to study all the features and difficulties of its formation. Organizing a construction business will require a lot of effort. This is not an easy task, but it is doable.
How to open a construction company
- You need to start by registering an LLC (limited liability company). In this case, it becomes possible to enter into contracts and make settlements with legal entities, which is not available to an individual entrepreneur.
- You will need to order and purchase stamps and forms, and open an account in one of the banks. You need to put a certain amount of money on it, which from now on will be called the authorized capital.
- An important and mandatory step will be joining the SRO - a self-regulatory organization of builders. According to current Russian legislation, every company engaged in this type of activity is required to be a member of it. If this requirement is ignored, then only one type of activity will be available: cosmetic repairs and finishing work. But individual entrepreneurship is enough to fulfill them.
- To join an SRO, you will need constituent documents and construction certificates, which are proof of the organization’s compliance with the required parameters. Registration of certificates is a labor-intensive task that requires considerable time and expense. In addition to the fact that you will need to go through many authorities, you will need to collect a lot of documents. Construction certification is voluntary, but a lot depends on it, because the legislator is confident that only a certificate can become a guarantor of the quality of services and materials that the company intends to provide or produce.
- Within a month, the application to join the SRO will be considered, and after its approval, full-fledged activities can begin.
Return to contents
Financial investments
The specificity of the construction business is that all initial large-scale investments will be mothballed for some time, that is, working capital is at the stage of unfinished projects for some period, but after the order is completed, a solid return is obtained. A competent manager must take into account this feature of his business in order to ensure the payment of monthly salaries to his workers and office staff from the reserve fund during the execution of work under the contract. Currently, according to labor legislation, delays in payments to workers are punishable by substantial fines.
- start-up capital;
To acquire it, there are only two ways: either invest your own money in the business or attract investors. But to interest them, you need an accurate and detailed business plan that guarantees the profitability of the enterprise. The construction business, despite the fact that it ranks third among all other types of activity in terms of profitability, is still a rather risky business. Therefore, if you don’t have your own money, it would be wiser to draw up a business plan and try to find investors before starting to register an LLC.
- a short list of investments and approximate amounts:
- Purchase of special equipment - 10,000,000 rubles.
- Purchase of equipment and tools - RUB 1,000,000.
- Advertising, taxes, transportation costs - RUB 250,000.
- Rent of office, production and warehouse premises - RUB 300,000.
Return to contents
Recruitment and advertising
Competent and efficient staff is the key to success in any type of business. It is better to look for specialists for management positions in employment agencies. They check references from previous places of work, conduct testing and a preliminary interview. They will also give advice regarding this or that applicant. This greatly simplifies the selection of personnel for a newly formed company. Workers can be invited through advertisements in print and on television. Young professionals should not be ignored either. Their inexperience is more than compensated by their desire for career growth and high income. Often they are the ones who bring the company into the orbit of success.
An advertising campaign should be launched at the same time as hiring staff. To make yourself known, you need to use all types of it: booklets, leaflets and banners, videos on TV and audio on the radio, advertisements in newspapers and the Internet, rental of advertising posters on public transport and others. How well this campaign is carried out will determine how many clients will apply for the services you provide. Therefore, it is perhaps the most important moment in the formation of a company. Specialists - advertising managers - will help organize the promotion of services to the market.
Construction business for small and medium-sized businesses is a profitable activity. The invested money can be quickly repaid, and the initial investment amounts are not too high. But to open a construction company, you need to think through all stages of the project in advance. Where to start a construction business? What features to consider? How much money do you need to start? Read about this in the article.
Choosing a Specialization
Competition in the construction market has always been high. Before opening your own company, it is important to decide on the direction of your business. Experts identify several popular areas of construction:
- Private (individual);
- Road;
- Industrial;
- Major repairs, interior decoration of premises for various purposes.
A large construction company will require serious financial investments. As a rule, a beginning entrepreneur does not have that kind of money.
If you don’t have enough money, you should start a construction business with minor repairs and interior decoration, gradually expanding the scope of your activity. That is, it is reasonable to choose the fourth direction. The average payback of a construction company allows us to expect that the investment will pay off in about a year and a half.
After choosing the area of construction, you need to think about the potential range of services provided. In the case of organizing a small construction company for the renovation of premises, an approximate list of services looks like this:
- Finishing work;
- Installation and installation of ceiling structures;
- Installation of plumbing, doors, ventilation, air conditioners;
- Electric installation work;
- Dismantling;
- Painting, wallpapering, priming, wall putty;
- Welding, facade work.
- Furniture assembly.
Important! The best option is to carry out turnkey repair work
How to open a construction company from scratch step by step
Having decided what area of construction the company will engage in, the entrepreneur draws up a detailed business plan.
Further steps to open a construction company from scratch are as follows:
- Company registration;
- Search for premises;
- Staff formation;
- Obtaining licenses (if required);
- Purchase of equipment;
- Advertising campaign.
- construction of buildings more than 3 floors high;
- construction of facilities located underground more than 15 meters;
- installation work of reinforced concrete and metal structures;
- construction of industrial facilities and gas (oil) industry;
- major repairs of railways;
- construction of metro, roads, mines;
- construction of bridges.
Important! Since 2017, legislative amendments (Federal Law No. 372) have come into force, requiring SRO approval for construction companies that enter into contracts worth more than three million rubles. This rule also applies to companies working with tenders in the field of government procurement.
The activities of SROs, in turn, are regulated by such legislative acts as:
- Federal Law No. 190 (Town Planning Code of the Russian Federation);
- Federal Law No. 315 (On self-regulatory organizations);
- Federal Law No. 384 (Technical Regulations for the Safety of Buildings and Structures);
- Federal Law No. 384 (On technical regulation)
Organizational and legal basis of construction business
In the construction industry, LLCs or individual entrepreneurs are most often registered. For a start-up company, registration of an individual entrepreneur is suitable.
You can register an individual entrepreneur or LLC yourself or use the services of an outsourcing company. For example, whose specialists will do this work for free.
Opening an LLC is beneficial for those who plan to move from a small and medium-sized construction business to a large one. For this type of activity, additional permits will be required. They can only be obtained if there is a legal entity.
During the process of registering a company with the tax office, the following OKVED codes are indicated:
The taxation system of a company largely depends on the type of services provided. According to OKUN (All-Russian Classification of Services to the Population), repairs of premises are classified as household services.
Therefore, a businessman can use taxation systems such as “simplified” (USN) or “imputed” (UTII). The first system is suitable for companies that make repairs in commercial premises and enter into an agreement with a legal entity. The second is for those who work with individuals.
In addition to the main package of documents, you will need contract forms, a seal, a price list for services and a bank account.
Important! To organize a construction company from scratch that provides interior decoration services, a license is not required
Selecting premises and purchasing equipment
Most of the work is carried out directly on site, so the location of the company is not as important as in other types of activities. For a mid-level construction company, it is enough to rent a small office in any area of the city. There you can negotiate with clients and sign contracts for the provision of services. Documentation is stored in this room. Small construction teams can do without an office altogether. but for a reputable company in the construction business, an office is simply necessary. Otherwise, you simply won't be taken seriously.
The amount and type of equipment for a construction team depends on the type of work being performed.
Below is a list of the basic tools that you will definitely need to decorate the room.
- paint rollers, brushes, stamps;
- containers for construction mixtures;
- hammer drills;
- screwdrivers;
- spatulas;
- stationery knives;
- roulette;
- plumb lines;
- milling cutter;
- Bulgarian;
- electric jigsaw, plane.
Each team must be provided with a full set of equipment for repairing premises of any complexity. In addition to the tools, uniforms, office furniture, a computer, a printer and other office equipment are purchased.
Construction crew personnel
The construction business involves serious production risks, so you will have to pay attention and time to carefully select personnel.
At first, it is better to form two teams that will work at different sites. It is recommended to include in the team people of those professions that are listed in the third edition of the Unified Tariff and Qualification Directory of Work and Professions of Workers (ETKS, section “Construction, installation, repair and construction work”).
Optimal team composition:
- Brigadier;
- Painter-plasterer;
- installer;
- Tiler;
- Facing;
- Electrical installer;
- Locksmith.
The salary of employees of a construction company is piecework, that is, it is calculated based on the total amount of the paid order. If an entrepreneur acts as a foreman, he receives from 50 to 60%, the rest - from 25 to 45%. In another situation, the salary is distributed as follows: the owner of the company - 60%, the foreman - 20%, the rest of the employees - 20%.
Important! The services of an accountant, designer, lawyer and order receiving manager can be outsourced. To do accounting, it is better to hire a specialized company with a good reputation, for example. The prices of such a company will be affordable, and the quality of services will be high.
Construction business advertising
An advertising campaign to promote the services of a small construction team has its own specifics. The most effective way for a small company is posting advertisements and word of mouth. Advertisements for services are printed on bright paper and distributed mainly in areas with new buildings.
Advertising on the Internet and newspapers is a good option to attract the attention of potential customers. It is better to entrust the creation of a company website to professionals. The key principle of advertising a construction team on the Internet is to regularly update data on types of services, discounts, and cost of work.
How much does it cost to open a construction company?
The initial cost of the project is difficult to estimate. It depends on many factors, such as the number of employees, the price of purchased equipment, and the chosen legal form of the construction company. On average, to create a small enterprise in the construction industry you will need from 350 to 600 thousand rubles.
Approximate starting calculation:
*Unforeseen expenses - a reserve of funds necessary for the purchase of additional materials during repairs.
Important! The construction business involves constant financial investments. It is worth remembering this when organizing a construction company
Possible risks
At the preparatory stage of creating a construction business, it is worth calculating possible risks and developing measures to prevent them. External risks are associated with a decrease in household incomes, increased competition, and the customer’s dishonest attitude towards their obligations. The likelihood of such risks occurring, according to experts, changes annually.
Internal risks include:
- staff shortages;
- low qualification of workers;
- equipment breakdown;
- performance of work under the contract not on time.
Such situations can be avoided by regular monitoring of the functioning of the company, the possibility of attracting additional funds and correct analysis of the construction industry market.
Three months of accounting, HR and legal support FREE. Hurry up, offer is limited.
A construction business from scratch is a profitable investment. It is worth saying that today many people dream of opening their own business, which can bring good profits. And therefore, some people need to pay attention to the business idea of a construction business without investment. Construction is considered the most modern commerce, which will always develop and bring good profits. Therefore, it is necessary to understand the nuances of this matter and trace its features.
How to start a construction business: Features of the business
Let's now answer the question of how to start a construction business from scratch without money. So, like any commercial enterprise, the construction business is divided into several categories.
- The field of civil engineering.
- The field of road construction.
- The sphere of industrial construction of buildings.
The services of a construction company can also be divided into two types - these are basic services and additional services. The main construction work includes the construction of:
- residential buildings,
- warehouses,
- baths
The main works also include: installation, dismantling of buildings and renovation of premises.
Additional services include rental of equipment and personnel. This category also includes the sale of building materials and paid training for employees of other similar companies.
To start a construction business you should follow these steps. So, you need:
- Draw up a clear and competent business plan.
- Complete all registration documents.
- Collect all the necessary papers.
- Purchase inventory, machinery and equipment.
Also, the success of this business depends on qualified personnel. Therefore, it is worth choosing competent and skilled workers. In addition, it must be said that successful existence depends on finding new clients. It follows that finding clients also needs to be given a lot of time and attention.
You probably realized that it is important to devote a lot of time and maximum attention to compilation. Why is it worth doing this? Yes, all because this will help to competently organize a company and get a loan from a bank.
It is important to include information about the liabilities and assets of your own company in your business plan. It is also worth writing down in this paper methods that will increase and multiply profits. In general, with the help of a business plan you will not only answer the question of how to start a construction business, but also calculate the profit of your business.
Advantages and disadvantages of the construction business
The most important advantage of such activity will be a good income. The profitability of a construction business averages 50% or 70%. It is worth noting that this result is considered impressive. Such figures cannot be obtained from other commercial activities. In addition, such a business pays off within a year, and this is very pleasant.
To open a construction business from scratch, you need to have start-up capital available. In addition, it is necessary to hire qualified and conscientious personnel who will perform their duties efficiently.
Like any other commercial activity, the construction business has its pitfalls, as well as some problems. Now it’s worth listing the most famous nuances of such a case.
Difficulties in bringing it to market can simply reduce profits. To avoid this, you should hire experienced builders and other workers who will help give your company an impeccable reputation in the shortest possible time. A good reputation is the key to successful activities.
Serious difficulties may arise for those companies that have registered relatively recently and have not yet entered the large market. In this case, problems may arise with obtaining a loan. And all because reputable banks do not issue loans to start-up companies due to the fact that they are unsure of their stability. Therefore, in order to get a loan, a novice entrepreneur should offer the bank a clear business plan and information about significant assets.
We should also not forget about the high level of competition in this business area. Therefore, to be successful, you need to provide good cooperation benefits to your clients.
How to start a construction business without investment: Financial component
If you want to know how to start a construction business? Then this publication was created especially for you. So, in order for your company to develop well over many years of activity, you need to maintain proper accounting. Indeed, without correct calculation of costs and profits, it is difficult to maintain stable business development and make smart investments.
An important condition in organizing such a business is the implementation of constant and impressive financial investments. Also, success can be brought by retaining money at the stages of unfinished construction. If you comply with the above conditions, you can constantly receive good profits.
The construction business is an expensive business. Funds will have to be spent on purchasing:
- construction equipment,
- special equipment.
As you can see, such an activity will require good start-up capital and a professional approach. However, initial costs can be reduced if special equipment is rented. The money saved is best spent on an advertising campaign. It should be noted that many people spend a lot of money on advertising. Therefore, it is best to prepare for such waste in advance.
Collection of documentation
Each construction company must have the following set of documentation. So, you will need to get:
- a document confirming state registration;
- a document confirming registration with the tax service;
- company charter;
- company seal and statistical codes;
- decision to form a business.
In order to obtain an individual entrepreneur, you must also submit the following documents:
- A building permit issued by local governments.
- License for engineering work.
- License for the design of structures and buildings.
How to start a construction business: Personnel
If you have created your construction business from scratch, you will have to hire qualified and competent personnel. The reputation and profitability of the company depend on the quality of staff work. Therefore, in this article, you need to provide a list of positions. So, your construction company will have to hire:
- supply manager,
- designer,
- HR inspector
- architect,
- lawyer,
- accountant,
- foreman
If you are planning to open a small company, then the entire team staff will consist of four people. It is also important to consider that half of the workers must have a higher education. Without this point it will be difficult to obtain a license.
In order to ensure good productivity for your company, you need to provide all your employees with the necessary equipment and construction equipment. At the same time, construction equipment and special technical means must be in good condition and meet all safety requirements. To get success from such a business, you need to choose an expensive but high-quality tool that can be used for more than one year.
How to attract clients
To successfully develop a construction business, you need not only to be able to win your own group of regular customers. It is worth saying that in this matter it is necessary to be able to attract new consumers. If you accomplish this task, you can expand the capabilities of your enterprise. Moreover, new clients will help you reach a new level of development.
Beginning entrepreneurs can use the following ways to find clients. So, you need:
- Create your own database of potential clients.
- Start self-development of the site in order to sell the property on the market in the future. At the same time, you can sell not only upon completion of the construction process, but also at the initial stage.
- You can get new clients after winning the state trend.
Finally
Now you know how to start a construction business without serious financial investments. You will definitely like the tips in this article. After all, they are the most modern recommendations that will help you open a business and make a significant profit from it in the shortest possible time.
Determine whether you have sufficient funds, the ability to take out a loan to start on your own, or whether you need to attract investors. If you already have funds, you can create an individual entrepreneur; to attract a large amount from outside, the best choice would be to organize an LLC.
Research the demand for real estate in your area. Depending on this, you should choose the direction of activity: construction of townhouses, cottages for sale or wooden houses to order.
When drawing up a business plan, you should take into account seasonality, the average cost of housing in your region and the purchasing power of the population. The demand for housing construction is very high, but it is better to start with a narrow specialization and choose the most popular options that allow you to achieve payback in the shortest possible time.
Main risks
Competition in the construction industry is high. A beginner needs to choose a narrow specialization and offer clients the highest level of service. Your advantage is the ability to concentrate on the little things. Large construction companies do not have this opportunity due to the peculiarities of the management organization.
Depends on the season. All stages of cottage construction can be carried out in spring and summer. If the work is properly organized and there are sufficient funds to ensure turnkey construction in full, you can start selling your house in the fall. If these conditions are not met, the risk of freezing construction until the next season is very high. When starting work, make sure that you have everything necessary to complete the project by the scheduled date.
Location
The company's office must be located in the central or business district of the city. This is where you will hold meetings with clients and partners. Also, designers, accountants, managers for working with clients and suppliers will work in the central office.
The facility for storing equipment and producing prefabricated wooden houses should be located in an industrial area or on the outskirts of the city. Industrial and warehouse premises are suitable. An important point is convenient transport interchange and the ability to provide communications necessary for activities.
If you specialize in the construction of cottages or townhouses and their subsequent sale, the question of finding a site for construction is added. Study the city's development plans. It is unprofitable to build houses in a remote village that lacks modern infrastructure and convenient transport links. Look for vacant plots in a crowded area, with communications and in close proximity to schools, shops, medical facilities and other infrastructure facilities.
Enter into an agreement with a realtor who will provide you with information about the average cost of housing in each area. Having selected interesting areas, order a soil analysis from the geodetic service.
Equipment
There is no need to purchase expensive construction equipment. Depending on the project, at each stage of work you can rent the necessary equipment and personnel from companies specializing in providing such services. Buy only those tools and equipment that are necessary for your work on a regular basis.
If you plan to sell finished wooden houses, the situation looks different. The lumberjack team must be equipped with chainsaws and other equipment for harvesting wood. Equipment for transporting wood to the assembly site can be rented. Assembly, which is best done in winter, is also carried out using chainsaws, electric planes and a standard set of carpentry tools. To operate, you need a mini-power station. The approximate cost of a set of equipment for the work of one team is 50-60 thousand rubles.
Personnel
To build frame houses, it is necessary to hire a team of lumberjacks (5 people) in the summer. The assembly must also be carried out by 5-6 qualified specialists, whom the company owner hires full time.
To work permanently in a company specializing in the construction of turnkey houses, a few people are enough:
Supervisor.
- Foreman.
- Manager.
- Accountant.
All other employees can be hired on a contract basis depending on the stage of work.
Look for companies and teams with a narrow specialization:
Design.
- Excavation.
- Construction of walls.
- Internal work.
- Laying power supply and communications.
- Water supply.
- Finishing work.
- Landscape design.
There are a lot of proposals for each item. Having chosen the best options in terms of cost of services, quality and timing of work, you can subsequently enter into cooperation agreements with each of these teams or companies for the construction of the following facilities.
Documents and licenses
For low-rise construction, you do not need to obtain a license or become a member of the SRO. The owner of the company just needs to register an individual entrepreneur or LLC with the tax office and choose a convenient type of taxation.
If you have permanent employees, you need to register a company with the employment and social insurance service. Construction permits are issued by local authorities. When designing a facility, you must coordinate all the nuances with the architectural bureau and fire safety service.
Payback
Much depends on the average cost of housing in a particular region. On average, the cost of building a small house for one family, subject to cooperation with wholesalers of building materials and proper organization of work, is about 2 million rubles. The sale price of such houses fluctuates around 3 million rubles. During one season, you can earn 1 million rubles from the construction of one house.
The profitability of building finished wooden houses reaches 30-40%. With proper organization of the company's activities, it is possible to achieve payback in a year and a half.
Marketing
The main condition for success is quality, comprehensive service and speed of work.
Summary
The house construction business is highly profitable. By developing a real business plan and choosing the most popular direction, you can attract investors and achieve payback within 1-2 years.
Construction is one of the most promising and highly profitable types of business. Construction services are in demand in any crisis, at any time and anywhere in our country. We will tell you how to open a construction company from scratch, how to choose the right type of activity and how to organize everything correctly.
Introduction
Getting into the construction business is not easy, but even for beginners there are many ways to do it with minimal investment. The main thing is to create a high-quality business plan. You should also immediately think through a real development strategy, taking into account the fact that you will probably have to take out loans.
The construction business is quite profitable and promising
There is quite a lot of competition in this market. Every year, dozens of construction companies open, fighting for their place in the sun, driving down prices and providing a wide range of services. But upon closer examination, it turns out that there are very few truly high-quality construction companies - many are in pursuit of profit, saving on materials, personnel, projects, etc., which immediately leads to a deterioration in the quality of work.
In order to get started, you need to provide your clients with the maximum possible number of services, ideally, do everything on a turnkey basis. They don’t have to look for third-party contractors or hire crews—you provide everything. A quality company offers the following services:
- Delivery of all construction materials and unloading at the site.
- Services for creating a project, design project, development of a unique design.
- High-quality and professional specialists capable of performing any construction services.
- Ability to assist the customer with the preparation of documents and permits.
Typically construction companies have their own work profile:
- Private construction.
- Industrial engineering.
- Road construction.
Note: The easiest way to start is with private construction. You will gain the necessary experience, develop the necessary connections, gain a reputation and start-up capital to move to the next level.
How to start
Let's look at where to start a construction business and what prospects you will have. If you don’t have serious money to purchase construction equipment, etc., then the most logical thing to start with is creating a qualified repair and construction team. Start making repairs, laying out fences, building sheds and bathhouses. You will earn yourself a name and capital.
Construction business requires good investments, but quickly pays off
Be sure to register as an individual entrepreneur or LLC, enter into official contracts with clients, pay taxes - this is the only way you will avoid serious problems, constant fines and “discounts” from unscrupulous clients. Of course, everything needs to be done efficiently, so be sure to choose a qualified team that will be focused on results. Create your own portal on the Internet, register on various construction sites and offer your services. Positive feedback from users will be a great push forward for you - high-quality teams are worth their weight in gold, and their work is scheduled for six months in advance. You will be able to develop quickly, capturing more and more new niches, taking on more responsible and serious projects.