The government forecasts the value of new U.S. construction in the year 2016 to be $1.1 trillion dollars. Employing over 7 million people, the industry is composed of many segments that offer plenty of opportunities for new business entrants. One of the most appealing traits of this industry is the large number of options contractors can choose among in order to define a new business. It can focus on residential or commercial jobs. It can concentrate on new construction, alterations, green retrofitting of buildings, and repairs. A construction business can limit itself to one trade, like plumbing or HVAC, or be a full-service business that includes services from ground preparation to building construction and inspection. Planning for Long Term Success The job of the construction company business is to identify the type of business, the business mission, and the plan for long term success. For smaller companies there is an ease of entry into the marketplace once …show more content…
streamlined work method, experienced crew, network of professionals, etc. • Typical projects, i.e. residential construction, commercial repairs and installations, civil projects, educational projects, environmental projects, etc. • Where the business fits in the market by presenting a market analysis that includes industry statistics and the description of market segments • The target market niche • The marketing strategy and promotional campaigns • The management philosophy, construction experience, and staffing plan Five years of pro-forma statements show revenue and expense projections, net cash flows and cash balances, assets and liabilities, and break-even analysis. Many contractors need upfront money to purchase specialized construction equipment and project materials and supplies, and to pay professional and skilled labor