A construction business plan is an important document that showcases your company’s objectives and your strategies for growth.
Whether your construction business is a startup or a more established enterprise, you may find yourself in a situation where you need to develop and present a construction business plan.
If you’ve never written one before, you’re probably confused on where to start. Even if you have created a construction business plan in the past, it’s helpful to catch up with modern expectations and trends. Here’s what you need to know about writing your construction business plan—and if you’re creating one to obtain financing, why you might not always need one.
A construction business plan is a formal description of your business goals and how you plan on achieving those objections. It’s essentially an overview of your entire business and a roadmap of the strategies you’ll implement to achieve the next level of growth.
A construction business plan can be used to strategize and think through the next phases of growth. You may also be required to present a business plan in order to secure funding from a bank.
Many construction businesses will create a business plan for one of two reasons – either you want to strategize the next phases of growth, or you’re looking to secure financing.
In many ways, a construction business plan is like a blueprint—it allows you to assess your situation, define your next moves, and think through ideas before initiating them. It also helps you evaluate the feasibility of different decisions and test their outcomes.
By walking through possible scenarios, you’ll gain insight into your goals and avoid possible pitfalls. Ultimately, a construction business plan can help you execute your next steps with confidence.
Construction companies will also create a business plan when they are applying for financing. Many lenders, especially banks, require a formal construction business plan as part of the application process.
Lenders want to know that their money will be put to good use and that any activities your business pursues will be profitable. By reviewing your construction business plan, among other factors such as your credit score, company history, financials, and more, lenders are able to mitigate their risk.
Not all lenders will make you draw up and submit a formal construction business plan. While this is a common requirement for traditional lenders and banks, online lenders are much more accommodating.
If you’re applying for financing with a traditional lender or bank, know that your chances of approval will rely heavily on your construction business plan. That’s why it’s incredibly important to include all the information lenders will be looking for. Make sure you have the following:
If you’ve never written a construction business plan before, the process may seem daunting. It helps if you consult team members or other business advisors before you send it in.
You may also want to double check information with your accountants, legal team, or other relevant staff members. As you work to write your business plan, make sure to define the following:
A construction business plan can prove invaluable if you’re charting the course of your company’s growth. But if you’re only creating one to check a box on a loan application, remember that not all lenders will require you to take on the monumental task of creating a formal proposal—especially as your business rapidly grows.
Writing up a construction business plan can be time-consuming and tedious. If you’d prefer to direct your attention towards more pressing business activities, make sure to consult with National.
National Business Capital helps businesses secure financing by giving them access to a platform of online lenders – and doesn’t require a business plan. Even better, our Business Financing Advisors can help you obtain the funds you need based on qualifications and terms that work for you.
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Joseph Camberato, CEO at National Business Capital & Services, developed a passion for business at a young age. Joseph has a true respect for anyone who owns a business and enjoys engaging them in discussions of how they “made it happen.”