Are you about starting a concrete contracting company? If YES, here is a complete sample concrete contracting business plan template & FREE feasibility report.
Do you know that construction works aren’t going away any time soon in the United States no matter how developed the country is? This goes to show that any business in the value chain of the construction industry is bound to succeed. Hence a concrete contracting business is worth starting in the United States of America.
The United States in particular has some serious infrastructure goals that will need to be filled in the coming years, meaning that as a concrete contracting company, there are loads of jobs waiting for you.
Interestingly, smaller operators comprise the majority of total establishments in the industry not just in the United States but in most countries of the world and they serve local markets.
This is one good business to start in 2019 and if you choose to start this business, then you should make sure that you carry out thorough feasibility studies and market survey. This will enable you locate the business in a community or city with the right demography; a location that can readily accept your business offerings. Business plan is yet another very important business document that you should not take for granted when launching your own business.
Below is a sample concrete contracting business plan that will help you successfully write your own business plan without stress.
A Sample Concrete Contracting Business Plan Template
- Industry Overview
The Concrete Contractors industry is made up of companies that engage in residential and nonresidential construction, additions, alterations, reconstruction and other services.
A standard concrete contracting company carries our jobs that include the following basic processes: preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work.
Concrete is an essential building material for the construction sector given its use in foundations, walls and floors. As a result, performance for the Concrete Contractors industry is closely tied to that of the broader construction sector. As a result of the steady increase of demand from downstream construction markets, job numbers have been on a steady rise.
Going forward, the construction industry is expected to continue thriving hence increase in the demand for the services of concrete contractors. So also, the industry is also expected to benefit from the increase in renovation and new construction activities.
Statistics has it that the Concrete Contractors industry in the United States of America is worth over $49 billion, with an estimated growth rate of 4.5 percent between 2014 and 2019. There are about 54,398 registered and licensed concrete contracting businesses in the United States and they are responsible for employing about 279,527 people. It is important to state that there are no company with a dominant market share in this industry.
A recent report published by IBISWorld shows that over the five years to 2019, favorable lending rates, improved per capita disposable income and record corporate profit levels have helped bolster construction activity across several sectors, increasing demand for industry services.
The report reveals that housing is expected to increase at an annualized 6.2 percent over the five years to 2019. Conversely, unemployment is expected to fall an annualized 10.7 percent during the same period, boosting the need for new office, industrial and manufacturing space.
The concrete contractors’ industry will keep on thriving in the coming decade especially if an entrepreneur in this line of business is committed to providing reliable and quality jobs for customers. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing.
The good news for would-be entrepreneurs in this business is that there is an estimate of continued annual growth for the concrete contractor industry for as high as 20 percent. Over and above, the concrete contractor services industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business.
Concrete Contracting Business Plan – Executive Summary
Rowland Barros® Concrete Contracting Services, Inc. is a licensed American concrete contractor services company. We have been able to secure a standard and well – positioned office facility in a central business district in Arlington Heights – Texas. We are set to compete in the highly competitive concrete contracting industry not only in Arlington Heights – Texas, but also throughout the United States market.
Rowland Barros® Concrete Contracting Services, Inc. is set to work in residential and nonresidential construction, additions, alterations, reconstruction and other services et al.
We will also provide the following services: preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work.
Our business goal is to become one of the leading concrete contracting companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of certified and highly experienced civil engineers, technicians and tradesmen with different areas of expertise as it relates to our service offerings. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading concrete contracting services companies in the United States.
At Rowland Barros® Concrete Contracting Services, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Rowland Barros® Concrete Contracting Services, Inc. is founded by Engr. Rowland Barros, a graduate of A and M University, Texas; B.Engr. Civil Engineering. He will run the business alongside his son Luke Barros who has a B.Sc. in Business Administration.
They have a combined experience that can help them build Rowland Barros® Concrete Contracting Services, Inc. to favorably compete with other leading concrete contractor services businesses in the United States of America.
- Our Product and Services Offerings
Rowland Barros® Concrete Contracting Services, Inc. is established with the aim of maximizing profits in the industry. We want to compete favorably with the leading concrete contracting companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every concrete contracting project carried out meets and even surpasses our customers’ expectations.
We will work hard to ensure that Rowland Barros® Concrete Contracting Services, Inc. is not just accepted in Arlington Heights – Texas but also in other cities in the United States of America. Our service offerings are listed below;
Preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); curing of the concrete while it is hardening; and quality control of the concrete work for –
- New residential construction
- New nonresidential construction
- Additions, alterations and reconstruction
Our Vision Statement
Our vision is to establish a standard concrete contracting company whose services and brand will not only be accepted in Arlington Heights – Texas but also in other cities in the United States of America.
- Our Mission Statement
Our mission is to provide globally accepted construction projects and to build a concrete contracting service company that can favorably compete with other leading brands in the industry.
- Our Business Structure
Rowland Barros® Concrete Contracting Services, Inc. intends starting small in Arlington Heights – Texas, but hopes to grow big in order to compete favorably with leading concrete contracting services companies in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. That is why we are committed to only hire the best hands within our area of operations.
At Rowland Barros® Concrete Contracting Services, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Head, Technical Services (Senior Civil Engineer)
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Civil Engineers
- Client Service Executive
Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Head, Technical Services (Senior Civil Engineer):
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and handymen
- Ensures that the organization work in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Rowland Barros® Concrete Contracting Services, Inc.
- Serves as internal auditor for Rowland Barros® Concrete Contracting Services, Inc.
- Responsible for the preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work
- Handle other related jobs as instructed by the Head, Technical Services.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
Concrete Contracting Business Plan – SWOT Analysis
Rowland Barros® Concrete Contracting Services, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured concrete contracting company that can favorably compete in the highly competitive concrete concreting industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Rowland Barros® Concrete Contracting Services, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Rowland Barros® Concrete Contracting Services, Inc.;
We can boast of having a system that runs on automation and it includes 3D concrete printing. We have been able to select a team of workforce that will give us advantage. Aside from our carefully selected workforce, our services will be guided by international best practices in the industry.
As a new concrete contracting company in Arlington Heights – Texas, it might take some time for our organization to break into the market especially in the already saturated and highly competitive concrete contracting services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
Acceleration of the housing and nonresidential construction markets in the United States is bound to support growth for a business such as ours. In the wake of all the natural disasters in the coastal areas of the United States, owners are looking for structures that will survive hurricanes, fires, and earthquakes. One imperative is that concrete infrastructure needs to be designed and built to resist corrosion.
While the US construction marketing is currently experiencing remarkable construction growth, it’s only sustainable long-term if builders embrace modern technology and practices. As of now, the labor shortage, lack of digitalization and poor coordination are the three major factors that could limit a future flourishing of construction in America and by extension is will pose a threat to our business.
Concrete Contracting Business Plan – MARKET ANALYSIS
- Market Trends
A close watch on industry activities show that the revenue increase is due to an acceleration in downstream construction markets in the United States. As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts/job numbers have been trending upward.
Going forward, the construction and real estate industry are expected to continue thriving leading to an increase in the demand for the services of concrete contractors.
Another notable trend shows that concrete contractors are moving from using technology solutions for specific tasks to having real-time and accurate information on mobile devices. Construction productivity is on the brink of a huge leap due to integrated and intuitive software that doesn’t just give you a bunch of numbers but rather provides easy-to-understand information that enables you to make good decisions.
Lastly, while paper is slowly being phased out of construction sites, many companies are still completely reliant on the material to complete jobs. As a result, information is constantly obsolete, and communication is fragmented and unproductive.
If companies are serious about meeting the increasing demands of building in the US, it means getting rid of all traces of paper and adopting a collaborative document management system that provides real time access and visibility to all project stakeholders.
- Our Target Market
Before starting our concrete contracting services company in Arlington Heights – Texas, we conducted a market survey and feasibility studies and we are certain that there is a wide range of construction companies and other players in the construction value chain that need our services. We are aware that the industry’s primary markets are the nonresidential and residential building sectors.
- Our Competitive Advantage
There are favorable conditions for growth in the concrete contracting services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably. More concrete contracting services companies are coming up and they are using the services of existing franchises to boost their competitive edge and exposure in the industry.
We are quite aware that to be highly competitive in the concrete contracting services industry means that you are not only expected to be able to deliver highly reliable concrete jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.
Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained civil engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
Concrete Contracting Business Plan – SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiff competitions in the concrete contracting services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Rowland Barros® Concrete Contracting Services, Inc.
Our corporate goal is to grow Rowland Barros® Concrete Contracting Services, Inc. to become one of the leading concrete contractor services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Arlington Heights – Texas but also in other cities in the United States of America.
Rowland Barros® Concrete Contracting Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to construction and real estate companies
- Promptness in bidding for concrete contracts from construction companies, real estate companies, the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Rowland Barros® Concrete Contracting Services, Inc. is established with the aim of maximizing profits in the concrete contracting services industry and we are going to go all the way to ensure that it meets and surpasses the expectations of our clients.
Rowland Barros® Concrete Contracting Services, Inc. will generate income by offering the following services;
Preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work for –
- New residential construction
- New nonresidential construction
- Additions, alterations and reconstruction
One thing is certain, there would always be construction and real estate companies, that would need our services.
We are well positioned to take on the available market in the concrete contracting industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.
We have been able to examine the electrical contractor services cum installation, maintenance and repair market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Rowland Barros® Concrete Contracting Services, Inc., it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year: $350,000
- Second Fiscal Year: $750,000
- Third Fiscal Year: $1.2 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
At Rowland Barros® Concrete Contracting Services, Inc. we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from construction and real estate companies who would hire our services.
In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Rowland Barros® Concrete Contracting Services, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Rowland Barros® Concrete Contracting Services, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for services rendered without any stress on their part.
Concrete Contracting Business Plan – Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of Arlington Heights – Texas and beyond which is why we have made provisions for effective publicity and advertisement company.
Below are the platforms we intend to leverage on to promote and advertise Rowland Barros® Concrete Contracting Services, Inc.;
- Place adverts on both print (newspapers and civil engineering related magazines) and electronic media platforms
- Sponsor relevant community – based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our services
- Install our Billboards in strategic locations all around Arlington Heights – Texas
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List our company in local directories/yellow pages
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo.
Concrete Contracting Business Plan – Financial Projections and Costing
From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard concrete contracting company in Arlington Heights – Texas and here are the key areas where we will spend our startup capital;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $80,000.
- The amount required to purchase the needed concrete mixers, trucks and other related equipment – $80,000
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $5,000
- Amount required to purchase the needed software applications to run our business – $ 3,500
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard concrete contracting services company in the United States of America.
Generating Funds/Startup Capital for Rowland Barros® Concrete Contracting Services, Inc.
Rowland Barros® Concrete Contracting Services, Inc. is a family business that will be owned and managed by Engr. Rowland Barros and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the start up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
CONCRETE CONTRACTING BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Rowland Barros® Concrete Contracting Services, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Rowland Barros® Concrete Contracting Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts : Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility, renovation and equipping of the facility inclusive: Competed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of concrete mixers, trucks and other related equipment: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress