A business plan for contractors is an essential document for a new or existing business. It is a tactical document that includes key factors that must be taken into account by a business before it can be successful in the market. It sets out the goals for the company, as well as how it intends to achieve them.
Whether you are a general contractor, home remodeler, painting, or electrical company, the tips in this article will apply to your trade.
A business plan provides a written guide for the management team to follow as the company develops. It typically involves all aspects of the company, from its core business to its development objectives, and capital structure.
These documents also detail marketing and financial plans, as well as operational details. It includes information about the company’s market, products, and services; management team; company history; and financial projections. It also outlines how a company can gain a competitive advantage over its competitors and sales goals.
By writing down your plan and goals, you can concentrate on maintaining a strategic plan and ensure that you don’t lose sight of the bigger picture. It can be used to measure how far a company has moved towards its goals and what the next steps should be.
The plan is used to communicate this information to investors, lenders, partners, and other stakeholders. It can also be used to seek funding, including venture capital financing, through presentations and business plan competitions.
A contractor business plan is like a business ‘how to’ guide. It is a compilation of ideas and concepts intended to create a blueprint for success.
Before you begin creating your plan, gather as much information as you can about your company and the industry you are getting into or wish to continue working in. Find out what is changing in the industry and who your main competitors are.
This research may appear to be a waste of time, but it will help you to understand the market and business landscape. The goal is to gain an understanding of whether your enterprise is and will remain viable.
Once you have an understanding of the industry and your goals, you can create a marketing strategy that is based on what your business can realistically achieve. The plan can be modified every year or as you see fit.
Here is a simple outline of a good contractor’s business plan. You just need to follow the structure, and fill in the details.
1. The first section includes all the information about the business, its location and the date showing when it was created.
2. It should contain a list of the owners, including their jobs, and their relationship to the company. For example, “John Smith, owner, and his wife, Mary Smith, owner.”
3. A brief summary of your business
4. Nature of Business: What products and/or services does it sell?
5. Competition: What are the company’s main competitors?
6. An outline of your business strategy
7. Details about your key priorities and objectives
8. Explain your company’s financial plan
9. Address potential risks
10. An outline of your company’s major marketing and sales channels
BONUS TIPS
9. Make a list of the goals that you want to achieve.
10. Break down the goals into smaller tasks or steps.
11. Assign managers and deadlines to each task.
12. List the resources that are needed to accomplish the tasks.
13. Write a list of the benefits of completing each task.
14. Write a list of the benefits for the company if you achieve each of the goals.