Construction Management Company Business Plan and SWOT Analysis

Construction Management Company Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Construction Management Company Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Construction Management Company business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Construction management companies are in a unique position to operate in a business that is subject to economic fluctuation, but they are able to aggressively control their underlying expenses and operations. This is primarily due to the fact that most construction management companies are not the actual owners of the underlying project. As such, their contracts are usually guaranteed by a number of indemnity companies as well as the bank that is providing the financing for a new development. Construction management companies are also able to operate in a general contracting capacity so that they are able to take on smaller repairs and renovations during times when new construction is not nearly as in demand.

The barriers to entry for a new construction management company are pretty high given that there needs to be a number of specialty individuals on staff that maintain all the appropriate licensure for carrying out construction management and contracting. The typical startup costs for new construction management company range anywhere from $100,000 to well over $1 million depending on whether or not equipment is going to be purchased in conjunction with operations. Many new and smaller construction management companies will frequently take to renting the equipment needed in order to ensure that they are able to keep a close watch on their cash flow. The acquisition of tangible construction equipment is very easily doable given that most financial companies will extend the appropriate credit necessary in order to acquire these assets. The gross margins generated from construction management services are extremely high given that the cost of goods sold is typically borne by the real estate development firm or property owner. In most instances, construction management companies generate gross margins ranging anywhere from 60% to 80% depending on whether or not specialized labor is considered part of the costs of goods sold.

Given the economic stability, high gross margins, and continued demand for services – most banks, lenders, and private investors are willing to put up the necessary capital in order to develop a construction management company. Of course, a business plan is going to be required in this document should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to industry research, most construction management companies within this industry are considered to be general contractors and management firms. This industry employs more than 2 million people at any given time and provides annual payrolls in excess of $105 billion. There are approximately 50,000 registered construction management companies within the United States.

Within the construction management company business plan, there should be an extensive demographic analysis as it relates to the types of clients of the company will have. This includes examining types of industries that are in need of construction management, annual revenues, annual profits, annual budget for real estate development and renovation, and other important metrics that clearly showcase the operations of these potential customers. The analysis should also include a discussion regarding competition given that there are a number of regional and national level construction management companies that the business will need to face on a day-to-day basis. These businesses are almost always able to maintain a steady short of contracts given the ongoing demand for services.

A construction management company marketing plan needs to be developed as well. Foremost, most entrepreneurs are looking to get into this industry have extensive experience as it relates to a being a general contractor. As such, many new firms will have their owners reach out to contact that they have established over a significant period of time. One of the other ways that these businesses market their services is through the development of an expansive proprietary website. This website needs to showcase the operations, services offered, photos of completed work, preliminary price information, and contact information. Most entrepreneurs will have this website listed among all major search engines including Google, Yahoo, and Bing.

A presence on social media is somewhat important for a construction management company given that many people will share images of progress and completed works. Additionally, upon seeing these works some people directly contact the business through a social media page such as FaceBook, Twitter, Instagram, and Google+. Although there does not need to be a major investment into social media marketing campaigns – it can help boost the visibility of the business in the long run. One of the things that is important as relates to social media is that these images and postings are usually picked up by search engines, and as such – additional traffic to the company’s website and social media platforms can be obtained by maintaining a moderate presence on social media.

One of the other ways of these businesses aggressively market their services is through print advertisements in trade journals that are specific to construction and contracting. In many cases, more than half of a construction management companies marketing budget is allocated towards print advertisements in these journals given that they highly target the people that are in ongoing need for these services. A third-party marketing firm can be retained in order to develop the print advertisements so that marketing messages are appropriately positioned for the target demographics.

A construction management company SWOT analysis is usually also developed as well in conjunction with the business plan and marketing plan. As it relates the strengths, construction management companies are able to easily enter this market provided that the owner or owners has the appropriate licensure necessary. The startup costs can be relatively low, the gross margins are high, and these businesses are typically always in demand.

For weaknesses, severe economic recessions or corrections in the real estate market can have a significant impact on the revenues of a construction management firm. Cost need to be carefully reviewed on an ongoing basis given that construction management firms can undertake large-scale development projects. Additionally, rising interest rates can have long-term effects on the demand for construction management.

As it relates to opportunities, these businesses can readily expand by acquiring new clients or acquiring construction management companies that are already in operation. There are always a number of individuals are looking to exit the industry after they have developed a profitable enterprise. As such, a qualified business broker can be retained in order to acquire information about businesses that are for sale within this industry. Additionally, given that this is a construction focused business – most financial institutions are willing to provide working capital lines of credit specific for ongoing expenses or new development in order to expand the operations of these companies.

For threats, outside of a major economic recession, correction will see prices, or major political event – there’s really nothing to impact the way that these companies do business outside of ongoing competitive threats. There is a modest risk of automation is more and more robots are being integrated into construction matters. However, it is going to be several decades before construction management companies operate with a heavily automated line of equipment.