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Commercial Contractor Business Plan

A complete business plan for Twin Brothers Construction

About this business plan

Twin Brothers Construction will focus predominantly on the commercial market, providing general contractor services for the new construction as well as renovations. Future goals include property management after renovation is complete. We expect to break-even point in the second half of the first year, and the cash account is expected to remain healthy.

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Executive Summary

Twin Brothers Construction (TBC) plans to become a leading provider of construction and renovation services in the local area. The company's overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress.

TBC is a company, with principal offices located in the local area. The company's management is highly experienced and qualified: the brothers who will lead the management team have each accumulated over twenty five years of experience in the construction industry.

Products/Services
Through their years of experience, TBC's owners have developed sophisticated bidding, scheduling and materials solutions for some of the most complex construction projects being done today. The company will use versatile and completely adaptable methods for a variety of building configurations.

Owners, developers, construction managers, general contractors, and sub-contractors are expected to realize substantial savings in labor and material costs by using the company's construction methods and systems. Applications include commercial and residential structures.

The Market
The housing industry has been growing at a fast pace for several years. An all-time record was set in 1998, when 886,000 new-site single family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 1997. Although there was a slight drop in the number from 2003, this makes for an excellent opportunity for future expansion of the industry.

Twin Brothers Construction plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The marketing strategy will focus on securing city, county, and state and federal government contracts.

TBC plans to use a direct sales force, relationship selling, and sub-contractors to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

Financial Considerations
We expect to pass the break-even point in the second half of the first year. Despite initial large outlays in cash to promote sales, the company's cash account is expected to remain healthy. The company expects approximately $772,000 in sales revenue and reasonable net profits by 2007.

1.1 Mission

Our mission is to be the best partner for our customers, suppliers and employees. To realize our vision, we will strive for profitable growth, operational excellence, customer satisfaction and strong brand positioning.

1.2 Objectives

To have up to three construction projects established within the first year.
To have two building renovation projects in progress by the end of the first year.
To locate and purchase our first rental building by the end of the first year.
To achieve at least 7% profit by the second year.

1.3 Keys to Success

We believe our keys to success will be:

Using the most updated materials and equipment to assure quality construction projects for ourselves and our customers.
Educating the customers and providing valuable advice during the construction planning stages.
Helping to confirm customer's research about targeting markets and specific sectors.
Overseeing the logistics associated with a project, which can include arranging local transportation, booking meetings etc.
Assigning the actual work to an experienced and qualified third-party contractors and sub-contractors.

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