If you’ve decided you’d like to invest in the construction industry and kickstart a profitable and dynamic new career, you’ll soon find you need to create a franchise business plan. This business plan will prepare you for the future, keep you on track and keep you aligned with your franchisor. It might even be something you show to potential funders in a bid for financial backing.
The commercial building construction market in the UK is worth £14 billion, and employs nearly 90,000 people [IBISWorld]. That means there is plenty of competition out there. When you’re starting your own construction franchise and building a business from the ground up (pun intended), preparation and research will be key. Building a strong business plan will be key. These tips will help you build an airtight, well-considered business plan for a construction franchise.
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Building a business plan for a construction franchise
Before diving into construction industry specifics, you should familiarise yourself with the ideal structure of a franchise business plan. When you’re building one, certain things will need to be included regardless of industry. From construction all the way to graphic design, every good plan should include:
- An executive summary
- A business description
- Product/service descriptions
- A management summary
- Market analysis
- Operational details
- Business premises details
- Sales and marketing plans
- Financial projections and requirements
When making a career change with a construction franchise, there’s bound to be a lot to cover and consider in your business plan. The industry is so wide, covering everything from home improvement to commercial services. Here are four top tips from Point Franchise, designed to help you ensure that your business plan is as useful and comprehensive as it possibly can be...
1. Take time over your financial projections
This is a very crucial tip, particularly if you’re looking to seek external funding and show this business plan to potential investors. Be careful to make all the financial details within your plan as accurate and complete as you can. Don’t rush this part of the plan, and don’t forget about additional construction industry costs like equipment and tools, and the maintenance of these kinds of items. There’s more to running a construction franchise than that initial investment amount!
Say, for instance, you’re working in the painting and decorating sub-sector. Beyond your initial investment, you’ll need to account for many other costs. How much will transport to site and the running of, say, a van full of your equipment cost? How much will the equipment itself cost, from professional-grade brushes and rollers, to more specialist tools like telescopic handles and ladders (maybe even scaffolding for bigger commercial and outdoor jobs)? Even the small stuff, like protective furniture and floor covers, can add up if left unconsidered.
Make a list of the tools and equipment that your construction [franchise] will require to complete its contracts. Identify whether the equipment is rented, leased, or purchased, and include the costs for each item. Provide information on any applicable warranties or insurance policies that will cover potential damages or maintenance requirements.
- Charmayne Smith, Chron
2. Conduct plenty of market analysis in your niche of the construction sector
As mentioned, the construction industry is undeniably competitive. This means market analysis is a crucial inclusion, and a chance for you to actively consider how you can make your franchise distinct and stand-out to customers, both in terms of your service and product provision, and in terms of your advertising and marketing strategy. The construction sector is constantly innovating and transforming, and the business plan is a great chance to get up-to-date. Cover:
- Your competitors
- Your target customer (and their wants and needs)
- The size of your target market
- Any potential growth opportunities/market gaps
3. Make management plans
When you invest in the sector and start running a construction franchise, you might find yourself managing a full team of employees. Even with an investment at a smaller scale that sees you working alone, you’ll be responsible for equipment management. Regardless of the particulars, making management plans in advance is crucial to the success of your business, and will allow you to hit the ground running.
Lay out your management strategies carefully in your business plan, looking into all the available options. If you’re managing a team of people, how will you measure employee progress? What about employee productivity? How about satisfaction rates? If you’re managing an inventory of equipment, how will you keep track of everything in a way that makes sense to you and others, and is easy to keep up with?
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4. Lay out health and safety procedures
In a field like construction, health and safety matters. You might be working in any number of dangerous locations, from building sites to very high heights. You might even work with hazardous materials. Whatever your particular area of investment is, you’ll need to pay close attention to health and safety in your business plan.
There are 54,000 non-fatal injuries to construction workers each year in the UK [UK Government Health and Safety Executive], and gold standard health and safety procedures can massively lower the risk of harm to you or your employees. It’s likely that your franchisor will have guidelines for you to follow in this area, but even listing these out for yourself in your plan will be beneficial, helping you to familiarise yourself with them.
If construction companies or building site managers don’t adhere to H&S standards, the business could be fined, sued, or even banned from operating and, in some cases, individuals have been sent to prison. Construction companies’ attitudes towards health and safety can also affect their reputations [...], and a bad reputation can affect employee retention.
Start a construction franchise today, building on the foundation of these business plan tips
With these tips, you should be well on your way to building an incredible business plan. For more advice and guidance, stay on Point Franchise. Find out how to choose a construction franchise that’s right for you, or discover the top four construction trends of 2021.
Lily Sweeney, Point Franchise ©