Free General Contractor Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $200,000 for the development of a general contracting business while showcasing the expected financials and operations over the next three years. The General Contractor, Inc. (“the Company”) is a New York based corporation that will provide home building and remodeling services to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The General Contractor is in the business of providing general contractor services. The Company is able to provide home owners and real estate investors with a multitude of services including, kitchen/bathroom remodeling, room additions, drywall repair, and other repair/upgrade services for a reasonable price and within a reasonable timeframe. The Company will also develop a program that will allow the business to develop new housing with specificity towards single family homes. This is an important profit center for the business as the Company will be able to generate profits from the outsourcing of work to subcontracted development businesses. The third section of the business plan will further describe the services offered by the General Contractor.
1.2 The Financing
Mr. Doe is seeking to raise $200,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate
1.3 Mission Statement
It is the goal of the Company to create a business that provides customers with high quality construction services that include kitchens and bathroom remodeling, drywall repairs, room additions, and development of new homes.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the construction industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individual homeowners, real estate investors, and real estate developers within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
The General Contractor, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the General Contractor requires $200,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of The General Contractor, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the General Contractor. Based on historical numbers, the business could fetch a sales premium of up to 6 to 8 times the previous year’s earnings.
3.0 Products and Services
Below is a description of the general contracting and home development services offered by the General Contractor.
3.1 General Contracting Services
The business will provide for the design and implementation of constructions that include complete kitchen remodeling (including cabinetry, appliance installation, countertop installation, and flooring), bathroom remodeling, drywall repairs and installations, and additional room additions. The Company will maintain its own staff of construction workers and project managers that oversee all interior home remodeling and contracting services. The business also has the ability to provide these services on a subcontracted basis to general contractors operating within the targeted market. The Company’s owner, Mr. Doe, will also maintain all licenses required by the State of New York to operate this business legally. Additionally, the Company will have extensive workman’s compensation, legal liability, and general insurance policies that insure that in the event of a serious injury or construction failure, the Company will be able to maintain business operations.
3.2 New Housing Development
The Company will also have the ability to develop new housing projects on behalf of its clients. This is an important revenue and profit center for the business as the Company will be able to use subcontractors to complete a majority of the interior work. The Company will maintain a small construction crew to assist subcontractors in the development of new housing projects. Management anticipates that each new housing construction will yield $100,000 to $150,000 of revenue for each completed project. The Company will have the ability to complete five of these projects within the first year of operation.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the general contracting industry, the customer profile, and the competition that the business will face as it progresses through its business operations. During developments, Management will focus on the acquisition and development of properties that have unusually high capitalization rates. Recently, the number of home sales has increased significantly within the last year. The Bureau of Economic Analysis estimates that homes on the market have increased more than 13% over last years figures. This may present a revenue issue for the business as housing prices directly impact the number of new housing constructions. In the event that housing prices fall further, Management may have trouble providing its contracting services as existing home owners will want to wait before improvements are made to the home and potential home owners will want to wait so that their new home does not immediately fall in value after it is constructed.
4.2 Industry Analysis
The construction industry is an extremely large group of contractors that generate over $490 billion dollars a year of gross management fees for the construction and management of real estate (including new home developments).This business has grown tremendously with the increase in the value of American real estate. There are over 710,000 businesses that specialize in managing specific construction projects. Additionally, the industry employs more than 1,110,000 people and generates gross annual payrolls in excess of $62 billion dollars.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The General Contractor intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the General Contractor.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Establish relationships with other contractors within the target market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the General Contractor to easily target homeowners, real estate investors, and real estate developers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The General Contractor will also use an internet based strategy. This is very important as many people seeking local services, such as general contractors, now the Internet to conduct their preliminary searches. Mr. Doe will register the Company with online portals so that potential customers can easily reach the business. The Company will also develop its own online website that will showcase the General Contractor’s ability to provide interior/exterior construction services as well as new housing developments. The business will also continue to develop relationships among general contractors, electricians, interior decorators, and other associated trade business’s and practitioners that will continually outsource work to the General Contractor and provide a regular stream of referrals for additional work.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The General Contractor will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $200,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are moderately sensitive to the overall condition of the economic markets. In times of economic recession, Management anticipates that the demand for new constructions will decrease moderately. However, the Company will be able to control its rate of build, and in times of economic recession, the General Contractor can scale down its operations very quickly.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis