construction plant hire business plan

Plant and Tool Hire Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Service Industry » Equipment Rental & Leasing Business

Are you about starting a plant tool & hire business? If YES, here’s a complete sample plant tool & hire business plan template & feasibility report you can use for FREE to get started .

Okay, so we have considered all the requirements for starting a plant tool & hire business. We have analyzed and drafted a sample plant tool & hire marketing plan backed up by actionable guerrilla marketing ideas for plant tool & hire businesses. So let’s proceed to the business planning section.

If you are looking to start a business that doesn’t require much stress or perhaps extensive period of training, then you should either look towards opening a shop to sell stuffs or start a rental business. One of the businesses that you can start that is highly profitable is a plant and tool hire business.

There are countless number of technicians, farmers and artisans who don’t have the required capital to acquire all the tools needed to run their business but can afford to rent such tools if they can find a place to rent from.

Much more than technicians and artisans, some organizations also rent tools to carry out a project or job because it is cost effective for them to rent as against purchasing such tools. Ideally, people would prefer to rent tools to do a one-off job.

There are several tools that people can rent to accomplish the task they have at hand. Tools like mower, hand drillers, heavy duty drillers, welding machines, forklifts, hand tools (pliers, spanners, screwdrivers, hammers, chisels et al), wheelbarrows, spades, rakes, sickles, power saw, filling machine, scaffoldings and virtually any tool that is needed to get any task done.

So your responsibility is to look for such tools and ensure that you have them in your store. So if you have decided to start a plant and tool hire business, then you should ensure that you carry out feasibility studies and also market survey.

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 plant and tool hire business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Plant and Tool Hire Business Plan Template

1. industry overview.

Plant and tool hire business which is part of the tool and equipment industry comprises companies that primarily rent tools and small to medium size pieces of equipment, including contractors’ and builders’ tools, equipment and home maintenance tools.

Please note that companies that mainly focus on other rentals like trucks and trailers without drivers, party and banquet equipment and personal and household goods are all excluded from this industry.

The truth is that the Tool and Equipment Rental industry falls under a larger umbrella of rental industries that have largely benefited from improving nonresidential construction markets. This industry, however, has been slower to recover.

Thus, as multifamily and nonresidential construction grew slowly in 2013, industry revenue continued declining. It was not until these markets had mostly recovered that industry operators began experiencing increased demand for their services.

Going forward, the industry will continue benefiting from contractors resuming their prominence as the industry’s largest consumer group. This will be supported by steady growth in the number of construction projects in both residential and nonresidential markets.

The Tool and Equipment Rental Industry is indeed a large and vibrant industry not only in the united states of America and but also in most countries of the world. Statistics have it that the Tool and Equipment Rental industry in the United States of America, is worth about $3 billion, with an estimated growth rate of 3.0 percent between 2012 and 2017.

There are about 9,090 registered and licensed tool and equipment rental businesses in the United States and they are responsible for employing about 26,355 people. In the United States, no company can boast of having the lion market share in the industry, the industry is still very much open for competitions from aspiring investors who would want to launch their own plant and tool hire business.

According to a report recently published by IBISWORLD, the Tool and Equipment Rental industry is in the mature phase of its life cycle as indicated by its growth rate over the 10 years to 2022 and the widespread but growing acceptance of its services in downstream markets.

This trend is not true globally, however, as the maturity of the Tool and Equipment Rental industry varies considerably depending on the country’s equipment sales performance.

Industry value added (IVA), a measure of the industry’s contribution to the overall economy, is forecast to grow at an annualized rate of 2.4 percent over the 10 years to 2022, relatively in line with the projected growth of US GDP, which is set to rise at an annualized rate of 2.0 percent during the same period. IVA is a function of wages, depreciation and profit margins.

The tool and equipment rental industry is indeed a profitable industry to venture into despite the fact that the entry bar for the business is not too difficult to scale through.

The truth is that if a plant and tool hire business is well – stocked with a wide array of tools and also well positioned in an environment with the right demography, they will sure attract regular clients and their items will be booked all through the year.

2. Executive Summary

Jonny Pardew® Plant & Tool Hire, LLC is a licensed equipment and tool rental company that will be based in Carson City – Nevada. We have been able to secure a corner piece property in a centralized and busy location in the heart of the city; a location with the right demography for the kind of business we want to run.

We are a standard equipment and tool rental company that will be involved in renting out contractors’ equipment, home tools, DIY equipment and delivery, repair and other services. We are equipped to service a wide range of clientele in and around Carson City – Nevada.

Jonny Pardew® Plant & Tool Hire, LLC is a client-focused and result driven plant and tool hire outfit that provides standard and reliable equipment and tools at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional services to all to our clients. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they rent tools and equipment from our organization.

Jonny Pardew® Plant & Tool Hire, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position Jonny Pardew® Plant & Tool Hire, LLC to become the leading brand in the equipment and tool rental industry in the whole of Nevada, and also to be amongst the top 10 plant and tool hire outfits in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Carson City – Nevada is the right place to launch our plant and tool hire business before spreading to other parts of the United States.

Jonny Pardew® Plant & Tool Hire, LLC is family business that is owned by Mr. Jonny Pardew. The organization will be managed by Mr. Jonny Pardew who has over 12 years of hands on experience working at various capacities within the equipment and tools rental industry in the United States.  Jonny Pardew has a Diploma in Mechanical Engineering from the University of Nevada – Las Vegas.

3. Our Products and Services

Jonny Pardew® Plant & Tool Hire, LLC is going to offer varieties of services within the scope of the equipment and tool rental services industry in the United States of America. Our intention of starting our plant and equipment hire company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offerings are listed below;

• Rental of contractors’ and builders’ tools and equipment
• Rental of home repair tools
• Rental of moving equipment and supplies, except trucks and vans
• Rental of floor waxing and sanding machines
• Rental of lawn and garden equipment
• Rental of various work tools and equipment

4. Our Mission and Vision Statement

• Our vision is to build a plant and tool hire business that will become the number one choice for clients in the whole of Carson City – Nevada. Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission as a plant and tool hire company is to rent out contractors’ equipment, home tools, DIY equipment rental and repair and other services to a wide range of clientele. We are going to position the business to become the leading brand in the equipment and tools rental industry in the whole of Carson City – Nevada, and also to be amongst the top 10 plant and tool hire companies in the United States of America within the first 10 years of fully launching the business.

Our Business Structure

Jonny Pardew® Plant & Tool Hire, LLC is a plant and tool hire company that intends to start small in Carson City – Nevada, but looks to grow big in order to compete favorably with leading equipment and tool rental companies both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the kind of world class plant and tools hire business we want to own. This is why we are committed to only hiring the best hands within our area of operations.

At Jonny Pardew® Plant & Tool Hire, LLC, 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 five 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 in our organization;

• Chief Executive Officer (Owner)
• Equipment and Tools Rental Manager

Admin and HR Manager

Marketing and Sales Executive

• Customer Services Executive
• Truck Driver

5. Job Roles and Responsibilities

Chief Executive Office:

• 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; developing incentives; developing a climate for offering information and opinions.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• In authority for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Equipment and Tool Rental Manager

• Manages the rental of contractors’ and builders’ tools and equipment, home repair tools, moving equipment and supplies, floor-waxing and sanding machines, lawn and garden equipment, and rental of various work tools and equipment
• Achieves maximum profitability and over-all success by controlling costs
• Responsible for plant and tools rental control policies and completion of necessary forms
• Follows proper purchasing and requisitioning procedures.
• Co-ordinates the general assembling and dismantling of plants and other heavy equipment and ensure that they are safely transported to and fro event venues.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• 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.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for increasing sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• 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
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Welcomes guests and 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 manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Truck Driver:

• Responsible for transporting contractors’ and builders’ tools and equipment, home repair tools, floor-waxing and sanding machines, lawn and gardening equipment to project site
• Runs errand for the organization
• Handles any other duty as assigned by the plant and tools rental manager

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard plant and tool hire company, we were able to engage some of the finest business consultants in Carson City – Nevada to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run this business.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Carson City – Nevada. Here is a of what we got from the critically conducted SWOT Analysis for Jonny Pardew® Plant & Tool Hire, LLC.

Notwithstanding the fact that all our tools and equipment are of world – class standard and the business is well positioned and equipped to meet the 21 st century demand of both high profile corporate and individual clients.

We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details regard assembling, servicing and maintaining plants and tools. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new plant and tool hire company, it might take some time for our organization to break into the market and gain acceptance in the already saturated equipment and tools rental industry especially from corporate clients; that is perhaps our major weakness.

• Opportunities:

The opportunities in the equipment and tools rental industry is massive considering the number of individuals and businesses that prefer renting work tools and equipment as against purchasing in the United States. As a standard plant and tools hire company, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we may likely face as a plant and tools hire company operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operation and global economic downturn which usually affects purchasing power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

If you are interested in the trends in the equipment and tools rental industry especially in the United States, you will notice that the pattern is same and it is as construction projects increase, contractors will resume their prominence as the industry’s largest consumer group.

With the recovery of construction markets, consumers have opted to hire contractors and higher per capita disposable income will encourage households to hire professionals to undertake home improvement projects.

The fact remains that the equipment and tools rental industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that were once highly successful are no longer as productive as they were in the past. Close observation of the trend in the industry reveals that the past few years have seen the rise and proliferation of social media and new tech tools.

The trend also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when making use of equipment and tools, and of course increase in demands from contractors.

Lastly, aside from excellent customer services, plant and tool rental companies ensure that they have some of the best equipment and tools they can get even if it means importing them or customizing them. This will enable them to continue to welcome repeated customers on a regular basis.

8. Our Target Market

Even though Jonny Pardew® Plant & Tool Hire, LLC will initially serve small to medium sized business, but that does not in any way stop us from growing to be able to compete with leading equipment and tool rental companies in the United States.

We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with lowly placed people and smaller businesses.

Our Competitive Advantage

Jonny Pardew® Plant & Tool Hire, LLC might be a new entrant into the equipment and tools rental industry in the United States of America, but the management staff and owners of the business are considered gurus. They are core professionals who are highly qualified to run such a business.

Other competitive advantages that we are bringing to the market are our ability to quickly adopt new technology, economies of scale and the fact that all our plant, tools and equipment are of world – class standard and the business is well positioned and well – equipped to meet the 21 st century demand of clients. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jonny Pardew® Plant & Tool Hire, LLC is established with the aim of maximizing profits in the equipment and tools rental industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Jonny Pardew® Plant & Tool Hire, LLC will generate income by offering the following equipment and tool rental services;

• Rental of floor-waxing and -sanding machines

10. Sales Forecast

One thing is certain, there would always be need to carry out jobs that require the rental of equipment and tools in the United States of America and as such the services of plant and tool hire companies will always be needed.

We are well positioned to take on the available market in Carson City – Nevada and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business beyond Carson City – Nevada to other states in the U.S.

We have been able to critically examine the equipment and tool rental market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Carson City – Nevada.

• First Fiscal Year: $250,000
• Second Fiscal Year: $600,000
• Third Fiscal Year: $900,000

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 natural disasters within the period stated above. There won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst equipment and tools rental companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience in the equipment and tools rental industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of the organization.

Our goal is to grow our plant and tools hire company to become one of the top 10 plant and tools hire cum rental companies 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 the Carson City – Nevada but also in other cities in the United States of America.

Jonny Pardew® Plant & Tool Hire, LLC 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 contractors, plumber, households and key stake holders in Carson City and other cities in Nevada
• Advertise our business in relevant related 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 quality supply and services to them
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients
• Join local chambers of commerce and industry with the aim of marketing our business
• Make use of attractive hand bills to create awareness and also to give direction to our facility
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around Carson City – Nevada
• Create a loyalty plan that will enable us reward our consistent clients especially those that refer clients to us.
• Engage in roadshows within our neighborhood to create awareness for our plant and tools hire business.

11. 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 take the equipment and tools rental industry by storm which is why we have made provisions for effective publicity and advertisement of our plant and tools hire company.

Below are the platforms we intend to leverage on to promote and advertise Jonny Pardew® Plant & Tool Hire, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
• Install our billboards in strategic locations all around Carson City – Nevada
• Engage in roadshow from time to time in target neighborhoods to create awareness of our business
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles and trucks are well branded with our company’s logo et al.

12. Our Pricing Strategy

Just like in rental and consulting business, hourly billing for rental services is also a long – time tradition in the industry. However, for some types of rental services, flat fees make more sense because they allow clients to better predict the overall service charges.

As a result of this, Jonny Pardew® Plant & Tool Hire, LLC will charge our clients both flat fee and hourly billing as long as it favors both parties.

At Jonny Pardew® Plant & Tool Hire, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. We are aware that there are some clients especially contractors that would need to rent tools and equipment on a regular basis, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

The payment policy adopted by Jonny Pardew® Plant & Tool Hire, LLC 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 Jonny Pardew® Plant & Tool Hire, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• 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 renting our equipment and tools without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard tool hire company in Carson City – Nevada and here are the key areas where we will spend our startup capital;

• The total fee for incorporating the Business in the United States of America- $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The amount needed to acquire a suitable facility that will accommodate our heavy duty plants, tools and equipment, trucks and small office facility (Re – Construction of the facility inclusive) – $150,000.
• The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The cost of launching an official website – $600
• The cost for the purchase of standard plant, equipment and tools (contractors’ and builders’ tools and equipment, home repair tools, moving equipment and supplies, floor-waxing and sanding machines, lawn and garden equipment, and various work tools and equipment) – $60,000
• The cost for the purchase of a truck – $10,000
• Budget for paying at least 4 employees for 2 months plus utility bills – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $5,000

Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand ( 450,000 ) U.S. dollars to successfully set up a medium scale but standard plant and tool hire business firm in the United States of America.

Generating Startup Capital for Jonny Pardew® Plant & Tool Hire, LLC

Jonny Pardew® Plant & Tool Hire, LLC is a family business that will be owned by Mr. Jonny Pardew and his immediate family members. They are the sole financiers of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 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.

14. 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 strategies and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Jonny Pardew® Plant & Tool Hire, LLC 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 rent our tools and equipment a little bit lower than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jonny Pardew® Plant & Tool Hire, LLC 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 six 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.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Securing a standard warehouse facility and reconstruction inclusive: In Progress
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Purchase of various sizes of standard tools and equipment: Completed
• Purchase of trucks and vans: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

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How to Write a Equipment Rental Business Plan: Complete Guide

• January 30, 2023

👇 Check all our resources on Equipment rental businesses 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your equipment rental business, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your business plan for an equipment rental company. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for an equipment rental business?

The business plan of your equipment rental company must start with a high-level overview of every section: the executive summary.

The overview must be small, attention-grabbing, and focus on the concept, problems, solutions, target audience, financial targets, etc. Ideally, the executive summary must not exceed 1-2 pages.

The executive summary usually consists of 5 major sections:

• Business overview : provide here details on your business e.g. what type of equipment or vehicles will you rent and to whom, where your store is located, your strengths, weaknesses, opportunities and threats (SWOT), etc.
• Market analysis : provide a brief of your market understanding and provide a summary of the equipment rental industry trends, who are your competitors and your target audience, etc.
• People : provide a summary of the key people involved. Provide a brief of their experience in the equipment rental industry. Also include here a chart of the different teams and their reporting lines.
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Make sure to include here a simple chart with your financial projections (revenue, gross profit, net profit , cash flow)
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How do you intend to spend the money?

Equipment Rental Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Equipment Rental Business Overview

This section should include the company description, and the following details should be covered for an equipment rental company:

• The equipment/vehicles you will rent to your customers
• The industry / target audience you are focusing on
• The prices for the different vehicles
• The legal structure of your company

Here are the important subsections of the business overview that you must include:

History of the project & mission

Start with a brief description of why you want to start the equipment rental company. The prime focus here should be:

• Why do you decided to create this business today
• Your business’ mission

For example, explain that there are certain customer needs that your competitors are not able to fulfil today, and your business would offer such solutions. This might been what gave you the idea to start your own equipment rental business.

You also need to write a mission and vision statement. A company’s business goals and strategy are all outlined in the mission statement.

Here, you can maybe explain that your rental business’s mission statement and vision is to deliver high-quality construction equipment and vehicles for business customers that cannot afford such expensive machinery, and only need them periodically.

a) Business model

You should research the different business models available to you before launching a new venture. Try to respond to these questions: 

• Would you operate an established franchise rather than starting your own equipment rental business? 
• Will you focus on renting equipment to businesses, or will you instead serve individuals? 
• Do you plan to rent out equipment on a temporary or permanent basis? 
• Will you work with numerous brands or just one to rent their machinery, vehicles, or equipment?

b) Products

Your equipment rental company would offer equipment/vehicles for rent. Explain clearly what type of equipment and vehicles you would offer.

The investors or lenders reading your business plan should get here a clear idea about the equipments, tools or vehicles you offer. For construction equipment and vehicles, this could be for example: bulldozers, forklifts, excavators, etc.

c) Pricing strategy

You should include a price list in this section. You don’t have to go into a lot of details here, use price ranges instead. For instance, the rent for an excavator for the day could range from $400 to $600. 

In addition to the daily rate, make sure to include monthly (or longer term rental rates) too.

A pricing table for each equipment/vehicles you plan to rent will make it easier for lenders or investors to connect your pricing strategy to your financial forecasts.

d) Target audience

Knowing your audience is crucial since it gives you a great competitive advantage.

For example, if you’re starting an equipment rental company for the construction sector, you may choose to focus only on individuals for their small house renovation projects or large construction companies instead.

e) Equipment rental SWOT Analysis

You also need to perform a SWOT analysis for your business. It would give a clear idea about the profitability of your business to the investors. This shall include:

• Strength: include here details such as favorable market conditions, large construction sites in the area, etc. 
• Weakness should include the factors that can hamper the growth of your company, such as your store location (far from busy roads) or your lack or brand recognition as a new small business
• Opportunities should focus on the areas that are not yet exploited by the competitors. It can focus on a specific segment of customers, such as contractors, or simply small tools rental for individuals
• Threats: should include the biggest threats your equipment rental company can face. It can be anything from macro risks (decrease in construction during a recession) to micro risks (aggressive pricing strategy from competitors)

3. Equipment Rental Market Analysis

The second most crucial component of your equipment rental business plan is market analysis. You must show potential investors that you have the right market knowledge. Investors must have faith in the business acumen of the business you intend to start.

Here are some of the important points to address in this section:

a) Market Trends

This section should focus on the market size and the growth opportunities for your equipment rental business. Does the market have less competition? Is the construction growing in the city? Are there sufficient equipment rental companies in the locality to meet the demands?

Collect market data for your area

It is good to get a clear insight into the local data so that you can be sure of your business’s success.

Do some research and include data such as the number of competitors in the locality, their growth, factors leading to growth, etc. Instead, if the market has contracted, you should also include the reasons behind this drop to make sure this isn’t something that will affect your business in the future. 

b) Equipment Rental Competitors

Before you launch your equipment rental company, be sure to research the number of nearby competitors operating in a similar market and the health of their operations. 

Here are a few questions you should address in your competitor analysis :

• The number of businesses leasing or selling the same equipment you do
• The kind of equipment these businesses offer
• Their rental rates (daily, weekly, and monthly) 
• If they provide any additional services 
• Business hours (the later you open, the more accommodating you are for contractors)
• The sectors they focus on
• Any affiliations they may have with other resellers or suppliers of equipment

Why do you need a competitive analysis in your business plan?

You need to bring out the reasons why you are opening an equipment rental company. For example, no competitors cater to the specific segment, such as roofers, or there is a lack of a wider selection of equipment that you plan to offer.

Consider how you may provide your clients with superior products or services at a lower cost.

Would you have a wider or better selection of equipment? Would you target a certain clientele, such as roofers, builders, or contractors? Will you give your consumers additional time to return equipment?

c) Customers

First, check sure there are people in your neighborhood who need the equipment you plan to rent out as a business. However, you may also rent trailers, portable restrooms, sizable tents for gatherings, and other items. The type of equipment is typically associated with construction (vehicles, heavy machinery, and other light tools). 

To decide what kind of equipment you must provide, you must conduct thorough research on the precise requirements of your potential customers. Additionally, it would assist you in figuring out how much cash your equipment can produce and what rentals you can charge for it. 

Your competitor analysis will provide a large portion of this data. Additionally, the information must back up your decision to open an equipment leasing business.

4. Sales & Marketing Strategy

The Sales & Marketing strategy section of your equipment rental business plan should outline precisely how you intend to acquire and retain customers. This can be divided into 2 sections:

• What marketing channels will you use? Common marketing channels for equipment rental businesses can be billboards, email marketing, etc.
• What are your Unique Selling Points ? In other words, what makes your company and its products and services better vs. competitors?

a) Marketing Channels

If you want to start an equipment rental company, you should only target businesses that are in urgent need of tools and equipment or who require consulting services related to those needs. 

Introduce your company to the target market in your area and city, along with any related services. You can deliver them pamphlets and do a presentation at their place of employment. 

Never undervalue the influence of traditional media like newspapers and TV, as well as print media like magazines and newspapers. They will undoubtedly aid in spreading knowledge of your company around the area. 

Utilize online resources and direct marketing strategies, such as a website, using social media, internet directories, as well as Google Ads.

b) Unique Selling Points (USPs)

What makes you stand out from the competition? In other words, how do you set yourself apart from your rivals? This is crucial since you might have to woo clients away from rival businesses especially in the early days of your business. 

A few examples of USPs for equipment rental businesses are:

• Price : You might provide more affordable prices than your rivals
• Specialization : You might offer specific equipment or vehicle that competitors don’t
• Location : your store may be located closer to your customers than your competitors

5. Management & Organizational Structure

The 5th section of your equipment rental business plan should be about people. It should include 2 main elements:

• The management team and their experience / track record
• The organizational structure: what are the different teams and who reports to whom?

a) Management

Here you should list all the management roles in your company.

Of course, the amount of details you need to include here varies depending on the size of your company. For example, a franchise business with a number of equipment rental offices would need more detail vs. an independent store.

If you plan on running your business independently, you may write a short paragraph explaining who are the co-founders and/or senior managers (if there are any in addition to yourself). It’s important to highlight their experience in the industry and previous relevant professional experiences.

b) Organizational structure

No matter how many leadership roles there are, you should now explain how you intend to run the company from a management standpoint.

What are the different teams (management, sales, operations, mechanics, finance, etc.)? Note that you should include these details even if you haven’t hired anyone yet. It will show lenders and investors that you have a solid hiring and management plan to run the business successfully.

A great addition here is to add an organizational chart that list all the roles, from Directors to managers, key supervisory roles, employees and contractors. Make sure to highlight with reporting lines who manages/supervises whom.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors instead, a solid financial plan will prove them your equipment rental business is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you start a new business, or if you plan to purchase new equipment and vehicles, etc.)
• Your 5-year financial projections

Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

Startup Costs

Unlike other businesses, the costs to start an equipment rental company vary significantly from one business to another.

On average, we found out it costs anywhere from $813,000 to $960,000 to start a heavy construction equipment business.

The actual cost depends heavily on:

• The type of equipment (or vehicles) you rent ;
• The number of units making up your fleet ;
• Whether you plan to buy or lease the equipment ;
• The loan downpayment if you take on debt to buy the equipment upfront, etc.

For example, let’s assume you want to buy 15 heavy construction vehicles as a start for your construction equipment rental business, and you take on a loan where you need to put down 20% upfront. Now, assuming these vehicles cost $75,000 each on average, this means you must put down $225,000 yourself.

Equipment Rental 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your equipment rental company.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following important financial questions :

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 20%) on your margins?
• What is your average customer acquisition cost ?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement ). This means you must forecast:

• The number of equipment you rent over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of the business plan of your equipment rental business. Now that we have explained what type of equipment your company rents, to whom, at what price, but also what’s your marketing strategy , where you go and how you get there, this section must answer the following questions:

• How much funding do you need ?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to acquire the cost for the equipment? Or will it cover mostly the cost of the salaries of your employees the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our equipment rental financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Construction Company Business Plan

Growing a construction company is much more difficult and taxing than completing projects.

From acquiring a new project to meeting deadlines, managing the budget, and many more things in between- you will find yourself drowning in responsibilities when you start a construction company.

A construction business plan can come to your rescue in such burdensome situations. If prepared well, it can become a reference point for your company as it continues to grow.

Confused about how to write a business plan?

Well, this article will serve you perfectly. It will help you understand the contents of the business plan and offer a sample template for your construction company.

So let’s build a solid construction company business plan with this detailed guide.

Let’s dive right in.

Key Takeaways

• Venture into the market by conducting thorough industry and market analysis.
• Widen the scope of your service offerings to cater varying needs of your target audience.
• Create a detailed operations plan to get thorough guidance in your business operations.
• Conduct a SWOT analysis to identify your competitive edge over the competitors.
• Determine your marketing strategies to launch your business and get it popular amongst your target market.
• Define your business objectives, goals, and mission values to create a foundation for essential business policies.
• Account for various project costs, operating costs, and office expenses to form realistic cash-flow projections.

Why do you need a construction company business plan?

Apart from the fact that investors and banks would ask for a business plan when you seek funding, here are a few more reasons you need a business plan.

• A business plan offers a roadmap to your business. It acts as a guiding block that has answers to all your how, when, where, and what.
• It helps in determining the exact target market for your business and formulating strategies to cater accordingly.
• There are millions of construction companies competing in the industry. You can identify your strengths through a business plan and design a competitive edge to stand apart.
• A well-rounded plan prepares you for emergencies that may arise in your business by making a plan for every situation.
• A whole lot of business processes repeat every day. A business plan helps bring consistency by establishing SOPs for various business activities.

And of course, you get your desired funding with a solid business plan that vouches for the potential of your construction company.

Key components of a construction business plan

Writing a business plan gets much easier with a structurally defined flow. Well, let’s have a look at key components that a construction company business plan must have.

Executive Summary

A brief summary of an entire business plan that will encourage the readers to read further.

Company Overview

A brief company description including every detail from company structure to its mission statement and future goals.

Market Analysis

A thorough analysis of the construction industry and your target market. It also includes sections for competitor analysis, future market trends, and scope of growth.

Construction Services

Outline the construction services that your company will offer. Highlight any additional services that will make you a distinct player.

Marketing and Sales Strategy

It includes a strategic plan to achieve success through marketing and sales. Determine the best course of action for your business.

Management Team

Introduce key personnel in managerial and leadership roles. Discuss their roles, qualifications, experience, and expertise.

Operations Plan

A detailed plan that streamlines the everyday operations right from construction methods to hiring employees.

Financial Plan

A financial plan highlights the prominent figures and key reports of your construction company by making necessary financial projections.

Let’s dive further into these topics and get a detailed understanding of writing your business plan.

Related Construction Company Resources

• Construction Company Marketing Plan
• Construction Company Financial Plan
• Key Stats for the Construction Sector
• Start-up Cost For Construction Company
• How to Start a Construction Business

A step-by-step guide to creating a construction company business plan

A poorly written plan serves no purpose. However, with this step-by-step guide, you will uncover every detail that goes into making a fantastic and purpose-serving business plan.

1. Get a business plan template

Writing a comprehensive business plan is taxing and time-consuming. But if you do it well, you will have a guidebook for running your construction company.

Now, there is a lot that needs to be considered, planned, and accounted for as you start writing the plan. Even if you closely follow a construction business plan outline, there are higher chances of you losing track or getting stuck at certain sections.

This is why you need a business plan template to give a solid structure to your business idea. With industry-relevant examples and a guide, the Upmetrics business plan template is easy to edit and customize.

Whether you own a general contracting firm or specialize in residential construction or specialty trades- we have plenty of construction-related templates for you to choose from.

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2. Write an executive summary

The executive summary is a concise yet insightful description of your entire business plan.

This one-page document summarizes the most important questions that a reader might have and offers a peek into what they are about to uncover. Investors take a brief glance at your executive summary before deciding whether to proceed further or not.

An executive summary must outline the following details of your construction business in persuasive consecutive paragraphs.

• The exact business opportunity
• The target market
• The problem and the solution to it
• Products and services offered by you
• Market size and growth potential
• Financial highlights
• Management team

Maintain a personal storytelling tone while writing this section and encapsulate every minute detail that can make a difference.

But wait, don’t start writing yet. Write your executive summary only after you are done writing an entire plan. This will help you summarize effectively.

3. Prepare a company overview section

This section of a business plan will focus entirely on the details of your construction company.

From the type of construction company to the construction company’s goals- everything in this section is about your company description.

To begin with, highlight the type of construction business you will start. For instance, a residential construction company, general contracting company, industrial construction company, or specialty trade construction.

Clarify, if this will be a new business or an extension of existing business. If the business is already operating, offer a brief description of the business history.

After that, highlight the business structure of your construction company. Are you going to be a sole trader or start a limited liability company (LLC) or a limited partnership firm? The business structure you choose will decide how the finances and taxes will work in your business.

Now, this section is your chance to weave magical stories around your construction company. Present the mission statement, company’s objectives, and future goals over here.

For instance,

Mission statement : Syncore aims to become a trusted name for sustainable residential construction projects in Arizona by 2028. With our commitment to the highest quality standards, we will penetrate the market with our premium budgeted solutions.

Business goals :

• Onboarding and signing 15 construction projects in a span of 6 months.
• Generating revenue of $2 million by 2025.

Like this, you will write this entire section in parts by offering a brief overview of your construction business.

4. Conduct a competitive and market analysis

In this section of a business plan, you begin with industry analysis and then narrow it down to your particular market segment. This is important to show your potential investors that there are promising opportunities in this market.

Using market research practices determine the target market for your construction business. Create a buyer persona to identify what your ideal customer will look like.

Further, highlight your competitors in this competitive construction industry. Using SWOT analysis and PESTEL, determine the strengths and weaknesses of competing construction companies. In this section, you will also highlight your strengths to gain a competitive edge over existing players.

Don’t limit your market study to merely understanding the current scenarios. Extend the research and identify future trends and growth possibilities in your targeted market.

If you are a residential construction company focused on sustainable building practices, you must include the following details in your market analysis section.

• How large is the construction industry?
• What segment of the construction market will you capture?
• Who will avail of the construction services?
• What is the spending capacity of your target customers?
• Who are the top competing construction companies?
• What are the emerging trends in the industry and how will you leverage those?
• What is the growth potential of your target market?

Focus on quality market research as this will form the base of your further projections and strategies.

This screenshot of the construction business plan example highlights only the market size for HDFL construction. You can also include details like competitors analysis, growth potential, and market trends here.

5. Describe your construction service offerings

What construction services will you offer your potential clients?

Offer a detailed answer to this question, as you write a business plan section for service offerings.

Overall, this section should highlight every service offering that will bring you money. This could include services like,

• General contracting services
• Design and Engineering
• Construction
• Renovation and remodeling
• Project management
• Specialty services i.e. concrete work, HVAC installation, Roofing services
• Maintenance and repairs

Offer a brief understanding of these service offerings and highlight construction jobs you will specialize in. For instance, remodeling of kitchen and bathroom.

Now, will your construction company sell any construction materials for profit? If so, include details for that as well.

It’s important to consider the breadth of your service offerings to keep the customers coming back.

Overall, this section is your chance to prove to potential investors that your services can stand solid in the competitive construction industry.

6. Propose marketing and sales strategies

According to the IBIS world report , there are more than 3,787,470 construction businesses in the USA. Starting a construction company will add one more to this list, but hey- How do you wish to make a brand that your target audience can recall easily?

All the market assessment and understanding of your potential clients will come in handy at this stage as you make your marketing plan and sales strategies.

Take an opportunity to lay out your sales plan in this section. If you have existing customers, explain how you plan to retain them.

After you are done making your sales strategies, touch the marketing aspect.

Firstly, identify the way you want your brand to be recognized- as an ordinary construction firm, a luxury construction company, a sustainable solutions firm, or an affordable construction company. This will help you make a marketing plan.

Your marketing strategy should answer the following questions:

• Which marketing channels will you use-  Online, offline, or a mix of both?
• How will you generate more leads?
• Online marketing methods- search engines, social media, Email marketing, content marketing, etc.
• If you are going to be utilizing social media platforms- which ones?
• How much will you budget for paid ads?
• Will you use billboards, pamphlets, and newspaper advertisements to market your business?

Keep in mind the marketing channels where you can find your potential customers. For instance, you are more likely to find conversions through Email campaigns than social media campaigns, if you are finding clients for commercial construction.

All in all, in this section you have to draw potential investors’ attention with your sales and marketing strategy.

7. Introduce your management team

Everyone is aware of the cutthroat competition in the construction industry. Knowing that you need an able team to transform your business plan into a successful venture.

After laying out your marketing strategy, it’s time to introduce the key management and leadership team to your business plan.

It’s okay to brag about the talented individuals you have in your company. From construction heads to project managers, highlight the achievements, experience, and expertise of these people and prove their asset-worthiness for your company.

Also, draw the hierarchical map to give potential investors an idea of your organizational structure.

This is your time to prove that you have both the means and manpower to run a successful company.

8. Outline your operational plan

You may know construction, but do you know how to run a construction business?

As someone said, “ Seamless operations are the silent engine of extraordinary business achievements”

Before even taking the first project, it’s important to define operations and SOPs for different business activities. Make it so thorough that it can act as a guidebook whenever a problem arises in your construction company.

As you write a business plan for this section, focus on answering the following questions:

• What construction materials will you use?
• What will be the supply chain process in your construction company?
• Who will oversee the project management on site?
• What will be the timeline for completing projects?
• What will be health and safety protocols for construction workers?
• What will be the process of construction work?
• How will the communication flow within an organization?
• What technologies and equipment will you use?
• How will you ensure quality work?
• How will you hire employees?
• What accounting software will you use?

This is just a general gist of questions that can help you prepare this section. Consider it as a living document that will undergo various changes as the business commences and grows.

A thorough operations plan will lay a clear groundwork for running a company. Moreover, it will instill investors’ faith in your ability to run a construction company.

9. Create a financial plan

Writing a sound financial plan is a challenge but nothing that your determined mind can’t handle.

Whether you plan to raise funds or get bank loans, you need a sound financial plan. Investors will analyze this section and only if they find your business financially viable, will they invest.

In this section, you will make financial projections and estimates for your construction company. This includes forecasting sales, estimating startup costs , projecting overhead costs, and making a pricing plan.

Using the startup costs projection, determine how much funding is essential to start your own construction company.

Also, prepare different reports like income statements, cash flow statements, balance sheets, and break-even analyses using the projections made earlier.

To make a financial plan more relevant, consider various progressive and aggressive situations.

Lastly, prepare graphs, charts, and diagrams to make this section visually appealing and easy to grasp.

Now, stop. Don’t start writing a financial plan yet. You need a financial forecasting tool from Upmetrics to help you with projections and calculations of cash flow, sales, revenue, and everything else. Simply enter the data and it will make detailed and precise calculations for you.

Trust us, you don’t want to scratch your heads writing the entire plan from ground level.

And that’s it! With all this information you pretty much know everything that a construction business plan must have.

Construction Industry Highlights 2023

Now that you are almost set to open a construction company, here are a few industry statistics that might interest you.

• Market size : The US construction market sector was valued at 1.8 trillion US dollars in 2022.
• Growth of the virtual construction market : The global BIM market is 7.9 billion US dollars . North America is projected to be a market leader capturing 30% of this market.
• Rise in prefabrication and modular construction : Healthcare facilities followed by hotels/motels and educational institutions are most likely to avail of modular construction facilities.
• Major concerns : The leading concerns encircling the construction industry are inflation and supply chain disruptions faced by nearly 90% of constructors.
• Sustainable and green building : There is a continuous increase in demand for sustainable and green building solutions. As for 2021, the green building market in the USA was reported to be approximately 83 billion dollars .
• Growing investment in smart cities : According to IDC, the investment in smart cities is expected to grow to 203 billion dollars by 2024.

From sustainability to tech-centric processes, the construction industry is making huge shifts in trends. Both, small businesses and large have to evolve according to changing times to keep themselves relevant.

Download a sample construction business plan

Facing difficulty writing a business plan? Well, we have a perfect resource for you.

Download the Upmetrics sample business plan template. Our template offers step-by-step instructions and prompts to ease the entire plan writing process. It’s designed to meet modern market needs and is perfectly detailed with construction-relevant examples.

The Quickest Way to turn a Business Idea into a Business Plan

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Upmetrics is an intuitively designed business planning app with more than 400+ sample business plans . Our business planning tool features AI assistance that will transform your business writing process. Not only that, it allows you to design, collaborate, and share your business plan in real-time with your team.

So what are you waiting for?

Let’s Build your plan with our business plan builder.

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Frequently asked questions, what kind of market research should i include in my construction business plan.

The market research for your construction business plan must include the following details:

• The market size of your targeted market, i.e. commercial construction, residential construction, etc.
• The target audience of your services and their buyers’ persona
• Top competing firms and companies offering similar services
• Emerging trends in your market
• Growth potential for your firm

Is a SWOT analysis necessary for a construction company business plan?

Absolutely yes. There are more than a billion construction companies in the USA itself. Starting another business won’t guarantee success unless you have a business that can withstand the dynamic competitive environment. SWOT analysis will make you aware of the company’s strengths, weaknesses, and the opportunities it can avail

What are the initial startup costs for a construction company?

It is possible to start a construction company with as little as $10,000. However, if you plan to set up a mid-sized construction company, expect to spend anywhere around $50,000-$250,000 on getting a basic setup. This includes accounting for licenses, insurance, office setup, construction materials, and payroll for the initial months.

Can I get government grants for a construction business?

Yes, you can apply for government grants to start your construction business. Check the local, federal, and state regulations to see which grants are applicable to your business. Check the eligibility and apply accordingly.

How often should I update my construction business plan?

A business plan is a living document that can guide you toward success if mapped properly. Ideally, you should update your business plan every 4-6 months to make it relevant. Set aside time to do so as a renewed plan will offer deep and meaningful insight into your business goals.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How To Write a Winning Construction Company Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for construction company businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every construction company business owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is a construction company business plan.

A construction company business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Construction Company Business Plan?

A construction company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Construction Company Business Plan

The following are the key components of a successful construction company business plan:

Executive Summary

The executive summary of a construction company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your construction company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your construction firm, mention this.

You will also include information about your chosen construction company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a construction company business plan. Conduct thorough market research to determine industry trends and document the size of your market. Questions to answer include:

• What part of the construction industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a construction company business’ customers may include:

• Businesses (e.g., office complexes, restaurants, retail stores)
• General contractors
• Other construction companies

As you conduct your customer analysis, keep in mind that your target customers may not be aware of your company or product right away. You will need to have a marketing strategy to reach them and get them interested.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or construction company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your construction company business via word-of-mouth.

Operations Plan

This part of your construction company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present. Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a construction company business include reaching $X in sales. Other examples include hiring a certain number of employees, signing up a certain number of customers, or completing a certain number of projects.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific construction industry. Include brief biography sketches for each team member. Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Construction Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Construction Company

Cash Flow Statement Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup construction business.

Sample Cash Flow Statement for a Startup Construction Company

Finish with an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any construction company. The tips we’ve provided in this article should help you write a winning business plan for your construction company.  

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How to write a business plan for a construction equipment rental firm?

Writing a business plan for a construction equipment rental firm can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a construction equipment rental firm business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a construction equipment rental firm?

• What information is needed to create a business plan for a construction equipment rental firm?
• What goes in the financial forecast for a construction equipment rental firm?
• What goes in the written part of a construction equipment rental firm business plan?
• What tool can I use to write my construction equipment rental firm business plan?

Having a clear understanding of why you want to write a business plan for your construction equipment rental firm will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a construction equipment rental firm business plan.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a construction equipment rental firm is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your construction equipment rental firm to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To get visibility on future cash flows

If your small construction equipment rental firm runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your construction equipment rental firm's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your construction equipment rental firm business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your construction equipment rental firm's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your construction equipment rental firm.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your construction equipment rental firm and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your construction equipment rental firm's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your construction equipment rental firm, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for a construction equipment rental firm

Drafting a construction equipment rental firm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a construction equipment rental firm

Before you begin writing your business plan for a construction equipment rental firm, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your construction equipment rental firm.

1. Your construction equipment rental firm might find that the demand for larger pieces of equipment, such as bulldozers and backhoes, is increasing. 2. Your construction equipment rental firm could discover that the demand for smaller pieces of equipment, such as power drills and saws, is declining.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your construction equipment rental firm.

Developing the marketing plan for a construction equipment rental firm

Before delving into your construction equipment rental firm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a construction equipment rental firm

As you embark on starting or expanding your construction equipment rental firm, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

Staffing costs for a construction equipment rental firm may include salaries for sales staff, customer service representatives, and mechanics who maintain the equipment. Equipment costs may include the purchase and repair of the equipment, as well as any special tools or safety gear that may be needed. Additionally, the firm may incur costs for renting storage space for the equipment.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your construction equipment rental firm's financial forecast?

The financial forecast of your construction equipment rental firm's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a construction equipment rental firm are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your construction equipment rental firm forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established construction equipment rental firm will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your construction equipment rental firm

The projected balance sheet of your construction equipment rental firm will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your construction equipment rental firm projected balance sheet provides an understanding of your construction equipment rental firm's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your construction equipment rental firm's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your construction equipment rental firm has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your construction equipment rental firm business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your construction equipment rental firm business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a construction equipment rental firm.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the construction equipment rental firm, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your construction equipment rental firm business plan, let's have a look at the written part of the plan.

The written part of a construction equipment rental firm business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a construction equipment rental firm business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your construction equipment rental firm's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your construction equipment rental firm, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your construction equipment rental firm's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your construction equipment rental firm, you may mention that it is in a prime location where there is a high demand for construction equipment rentals. The area may have a growing population due to new businesses and residential developments that could lead to an increase in rental activity. Additionally, the area may be easily accessible by public transportation, which could make it easier to access the equipment and get it to the job site. Finally, the area may be close to other businesses and services that may be needed for the construction projects. All of this could indicate that the location is a good fit for your construction equipment rental business.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your construction equipment rental firm business plan should include a detailed description of what your company sells to its customers. 

For example, your construction equipment rental firm can provide customers with heavy machinery such as backhoes, excavators, and bulldozers for large-scale construction projects. It can also offer services such as delivery and on-site repairs to ensure that the equipment is working properly and that your customers’ projects are completed on time. Additionally, your firm can provide the necessary safety and operational training to ensure that the job is done safely and efficiently.

The reader will want to understand what makes your construction equipment rental firm unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When presenting your market analysis in your construction equipment rental firm business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your construction equipment rental firm, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your construction equipment rental firm is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include homeowners who need access to construction equipment for a one-time project. These homeowners might not want to purchase the equipment outright, so they would benefit from renting it instead. They may need equipment for a renovation, landscaping project, or construction of a new structure.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your construction equipment rental firm.

5. The strategy section

When crafting the strategy section of your business plan for your construction equipment rental firm, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your construction equipment rental firm may face the risk of theft. Equipment could be stolen from the jobsite or from the rental yard. To minimize this risk, your firm could equip each piece of equipment with a GPS tracking device and require proof of identification from customers before any rentals are made. Your firm may also face the risk of equipment breakdowns. Equipment could be damaged due to improper use or due to normal wear and tear. To mitigate this risk, your firm could provide thorough training to rental customers on the proper use of the equipment and have regular maintenance and inspections done on the equipment to ensure it is in good working order.

6. The operations section

The operations of your construction equipment rental firm must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your construction equipment rental firm - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as a fleet of construction equipment and real estate. These could be important to the business operations and could be considered IP. Additionally, you might have proprietary software or processes that are used in the rental process and could be protected as IP.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a construction equipment rental firm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my construction equipment rental firm's business plan?

In this section, we will be reviewing the two main solutions for creating a construction equipment rental firm business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your construction equipment rental firm's business plan

Using online business planning software is the most efficient and modern way to create a construction equipment rental firm business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your construction equipment rental firm's business plan

Outsourcing your construction equipment rental firm business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your construction equipment rental firm business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your construction equipment rental firm's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your construction equipment rental firm business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your construction equipment rental firm business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your construction equipment rental firm and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your construction equipment rental firm business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Is business model canvas a business plan?
• Guide for a business plan for a supplier
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a construction equipment rental firm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Create a Business Plan for a Construction Equipment Rental Company

No matter what kind of business you’re interested in starting, you’re going to need a well-put-together business plan if you’re going to succeed.

Not only is planning essential to your success, but it’s also something that any lender will have to see before providing a loan to start your business. With a good small equipment rental business plan, you can make a great impression and get the funding you need.

Your business plan should start with an industry overview, which serves as a sort of introduction. This brief section will discuss the general state of the construction industry to serve as a lead in to why you believe that your business will be profitable in this area.

The Industry Overview section should include some publicly available statistics on construction and rental industries, total revenue in the country and the state, growth percentages over the last few years, and other very general information at this point in your plan.

The Industry Overview

The executive summary.

The executive summary is just that, a summary. In this section, you can go over why you’re interested in starting a construction equipment rental company, what kinds of services you’re going to provide, and some details about your background.

While this is one of the first sections of any heavy equipment rental business plan PDF template , it’s often the best practice to write it last. Because it serves as an introduction to the remainder of the plan, you should have a very firm idea of what’s to follow.

Your Services

Next, you’ll need a thorough description of what your actual services are going to be. In the case of equipment rentals, you’ll describe that you’ll be acquiring equipment to rent to individuals and companies in your area.

At this point, you should consider if rentals are going to be your only service. Most rental businesses sell at least accessories for some equipment and often provide repairs as well. If you intend to provide additional services, you’ll have to include them here.

The Mission Statement and Vision

While this section might seem like a bit of departure from the more practical parts of the business plan, it is expected and will be included in any construction equipment rental business plan PDF templates.

Here, you’ll generally explain that your mission statement and vision are to provide quality service as a rental business and to thrive within the market. You don’t have to make up something about values or principles; you’re here to start a business.

The Structure and Roles

Getting back to the details of how your business is going to run, you’ll have to define what the roles in your company are going to be. Depending on the size of the business you’re setting up, are you going to be the CEO, owner, manager, or all three?

Small businesses could just be one person, or perhaps several who all share in a variety of duties. For larger endeavors, you’ll have to define roles like maintenance manager, rentals and leasing manager, and more.

The SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s a way of looking at your business to find which areas you believe you’ll excel in and which will present challenges.

For your strengths, you might like to mention any past experience in either equipment or business in general. You don’t want to go too far into your weaknesses, perhaps just mentioning that there are plenty of competitors, but make sure to mention how your business plans to differentiate itself.

Your Sales and Marketing Strategies

Here, you’ll have to explain how your business plans to present itself and put itself out there to get started and find customers. Some common strategies might include brochures, a website, social media, or ads in local print publications.

You should also specify who your target market is supposed to be. Are you exclusively renting heavy equipment to construction contractors? Are you renting smaller equipment to mostly homeowners?

Your Sales Forecast

When dealing with lenders, they’re going to want to know how much money your business plans on making. While determining these kinds of forecasts can be difficult, you can often base them on industry averages within your region.

These should be broken down by fiscal year, so basically stating what you forecast your sales to be in the first, second, and third years of operation. Any information about a similar business would be very helpful in putting this together.

Your Pricing Strategy

So you’ve acquired some equipment to rent out, but how much does it cost to rent? Are there additional fees? Do customers have to put down deposits? What payment methods are accepted? These are some important questions to answer in your pricing strategy.

This section should also reference the ratio between equipment costs and rental rates to demonstrate that equipment rentals will be profitable over the lifetime of the equipment.

Your Business Expenses

Of course, your business plan is going to have to include a breakdown of your expected expenses. This breakdown will have to include both the initial expenses of opening your business and the ongoing operational expenses you can expect to continue into the future.

Your startup expenses will play a big part in justifying any loans you’re seeking, and a well-defined explanation of operational expenses will play a big part in demonstrating that your business can be profitable.

If this all sounds like a bit much, you can greatly streamline the process of developing your equipment rental business plan by downloading our straightforward business plan template PDF.

Setting Up Your New Rental Business for Success With Quipli

Even with an effective business plan, your rental business needs careful oversight and the right tools to succeed. Quipli provides an integrated platform that combines your inventory management and online presence to make online bookings that much easier for your customers.

To find out more about the many features of the Quipli platform and what they can do for your business, Contact our Team at Quipli for a demo of online equipment rental checkout software t oday!

Get Started With Quipli’s Construction Rental Equipment Software Today

Learn about Quipli’s rental software

About the author

Kyle Clements is the Founder & CEO of Quipli, a provider of modern software for independent equipment rental companies. Kyle has a decade of software startup experience and has been part of several successful ventures that have become publicly traded or been privately acquired, such as Uber and Clutch Technologies. In the past few years, Kyle has completed thousands of customer interviews understanding needs and trends in the growing equipment rental market. Kyle brings a unique perspective to the equipment rental industry and is passionate about partnering with independent equipment rental companies to run their operations more effectively and assist them in creating an impactful experience for their customers.

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The Ins and Outs of Writing a Construction Business Plan (Free Template)

By Shannon Mulligan

A strong foundation is essential for a construction job—and starting a construction business. And how do you do that? By setting up your business for success with a solid construction business plan. 

Read on to learn about why you need a construction business plan, how to create one in six easy steps, and a free template to get you started. 

What’s a business plan for a construction company?

A business plan is a document that outlines a company’s business activities, goals, and how its activities will help achieve its objectives. It documents a business’s market research, financial projections, mission statement, and offerings. 

Every construction business can benefit from a business plan, whether you’re established or just starting. A construction business plan can help you secure funding, document your business model, forecast future business demands, and function as a guiding light for you and your team. 

The benefits of having a construction business plan

Most businesses start with a business plan—it’s a natural way to get your thoughts onto paper and organize them into actionable steps. Business plans can take a lot of time, but when done right, your business plan can function as your manual to move your business forward. 

If you’re still unsure whether your construction business needs a business plan, these four benefits might help you decide. 

Apply for funding

You’ll need a business plan if you’re looking for a business loan or planning to apply for business grants. Most financial lenders won’t even consider giving you a business loan without a well-thought-out business plan. A business plan is a way for lenders to gauge the risk level they’re taking if they lend your business money.

Your business plan should show lenders how to use their money and how to pay it back. It also allows you to build confidence in your ability to run a business from an organizational standpoint.

Attract top talent

Hiring the right people is important for any business, but it can make or break a construction business. Giving potential hires a complete understanding of your vision for your construction company can be the difference between finding the right employees versus the right now employees.

Creating a business plan will give you a clear vision for your company that you’ll easily be able to communicate to any potential hires.

Understand your competition

Industry and competitor research and analysis are a big part of creating a business plan. You might start your business plan thinking you know exactly what makes you stand out, but then again, you might not. Researching who your competitors are and what they do helps you solidify how your business can be differentiated from your peers. 

Finding what’s unique to your business is a huge factor in outbooking other local construction businesses.

Gives you clarity

Trying to get your business off the ground can feel like you get lost in the weeds of it all. Creating a business plan can help you clarify key elements of your company. A business plan gives you the big picture and lets you identify the priorities and milestones you need to focus on for your business.

How to write a business plan for a construction company

Writing a business plan for your construction company is essential in building your business. Whether you’re looking for funding or you’re looking for clarity, a business plan can help set you on the right path. Here are six key components of a successful construction business plan.

1. Executive summary

An executive summary is an overview of your construction business plan. Think of it as the CliffsNotes version of your business plan—it gives readers the basics of your business’s goals, financial projections, strategies, and more. This should be the first section of your business plan, but it’s usually the last thing you write because your plan informs it. 

An excellent executive summary reflects your construction business and should excite the reader about your company and its potential. 

2. Company description

The company overview and description section is the second section in your construction business plan. This section outlines vital details about your company, like your location, the size of the business, what you do, and what you hope to do in the future. 

When writing your company description, try to include the following information:

• The official company name
• Type of business structure (sole proprietorship, LLC, corporation, etc.)
• Names of the owners/management team
• The business location
• A company history that outlines when the business started, why you created it, and what it does
• Mission and vision statements

3. Market analysis

A robust market analysis gives you the foundation to create a strong construction business plan with the best chance at success. Market research is the best way to test whether your business will succeed. It can help you mitigate risks, give insights into customer preferences, and even help you decide on location and pricing. 

There are two main types of market research: primary and secondary. Primary research is gathered directly from consumers—think surveys, interviews, and focus groups you administer. Secondary research is compiled from external sources—think government census data, polling results, and research conducted by third parties. 

Both primary and secondary are great on their own; together, they’ll give you a fuller picture. 

4. Operations plan

There are a lot of moving parts that go into running a construction business. The operations plan lets you lay out all those parts and explain how you’ll run your company. This includes everything from your physical location, facilities, staffing needs, and equipment you’ll require. You can outline the types of projects your construction business will undertake, how many projects you’ll take on at once, and what resources you’ll need to deliver quality service at that scale.

5. Marketing and advertising strategies

Use the marketing and advertising strategies section of your construction business plan to highlight how you plan to promote your business. This section can outline all of the strategies you plan to use and can include a rough budget of what you plan to spend on marketing and advertising. Consider social media , digital marketing, content marketing, SEO, and local marketing strategies.

6. Financial projections

The financial projections section includes details about how you’re funding your business, projected revenues and expenses, and profitability projections. Accurate financial projections give potential lenders and investors confidence in your understanding of the industry and the viability of your business. 

Quick tips for writing a construction business plan

Now that you’ve got everything needed to start writing your business plan, here are five quick tips to help your writing process. These are big-picture ideas that you can use to get the most out of your construction business plan:

• Get to the point: Use clear, concise language to get your point across. Skip the jargon and ensure someone outside the construction industry understands what you write.
• Use data when you can: It’s great to have supporting data points to back you up when you’re talking about the industry and market.
• Write for your audience: Who are you writing for? Investors? Employees? Shareholders? Lenders? When you clearly define your audience, you can write in a way that resonates.
• Research, and then research some more: What you have to say about your industry is important, but having facts backed by research is even more powerful and convincing. 
• Use it: Don’t let your business plan just be another PDF collecting metaphorical dust on your desktop. Use it to inform your decisions and guide you and your team through the years. And update it when needed!

Free construction business plan template

Ready to get started on your construction business plan? Our free construction business plan template can help you write a business plan with all the elements needed for success. 

Download your free construction business plan template now

Build a better business with the right tools

If you know one thing, it’s that the quality of your tools can make or break a project. The same is true for the tools you use in your business. 

With Homebase , you get everything you need to take control of your construction business . Built for teams like yours, Homebase helps you schedule your team , track their hours , and run payroll even if you’re all on different job sites. 

Homebase is the all-in-one management app that simplifies running your construction business. Get started for free .

Construction business plan FAQs

Why should you create a business plan for your construction company even if you aren’t looking for financing.

You should create a business plan for your construction company even if you aren’t looking for financing, because it can help you understand your business and competitors and give potential hires confidence in your business.

What’s the best way to create your construction business plan?

The best way to create a construction business plan is to use a business plan template. You can download your free construction business plan template above.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

• Custom home building/design build
• Home remodeling and renovation
• Project Management
• Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

• Friendly and knowledgeable contractors who are able to take any project from concept to reality.
• Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

• Trucks: $40,000
• Construction equipment, supplies, and materials: $100,000
• Advertising agency in charge of promotions: $10,000
• Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
• Working capital: $10,000

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

• Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
• Located a small office space to have a physical address for the company as well as a receptionist.
• Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
• Began pricing out costs for trucks and necessary construction equipment.
• Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

• Households in search of home remodeling services
• Landowners who would like to build homes on their lots
• Architects who have clients that need home building or remodeling services
• Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

• Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
• Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

• Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
• Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
• Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
• Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
• Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Monthly Average Contract Amount: $20,000
• Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

• How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

Other Business Plan Templates

Food Truck Business Plan Template

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Construction Equipment Rental – Profitable Business Plan

Construction businesses require heavy equipment for several tasks. And it is not always possible to purchase this bulky equipment and block their finances and space. So instead, they will prefer to rent the heavy equipment and return it to the company once their job is done. Hence, more and more construction businesses are looking for corporations that can provide them the requisite equipment on a rental basis. 

Well, if you decided to go into the heavy construction equipment rental business, congratulations! You are good to go! But you are supposed to remember a few facts about this venture. For instance, remember that it is a capital-intensive business. If you have limited capital, you cannot think of diving into this business. Secondly, it is advisable to seek the advice of a consultant or an advisor regarding the planning and implementation matters.

You cannot simply start this business just because an idea stuck with you. You ought to do your research and feasibility studies and not miss out, a lot of business planning before starting this venture. 

Writing a business plan is crucial , and that’s why we are here to help you out. Follow the below business plan sample that will help you in starting the business.

Construction Industry Overview 

The revenue generated out of the construction equipment rental is a whopping $38 billion and is projected to grow at the rate of 4.8 percent in the last five years. You can find more than 18,000 equipment rental businesses in the United States. Since construction activities have been on the rise in the country due to several factors, there is a surging demand for related equipment hire. 

But one has to note that there is more demand for hi-tech machinery that is also eco-friendly and has low maintenance elements. Compared to the demand for traditional equipment, the demand for such advanced yet sustainable equipment can be seen on the rise. Consumers have higher purchasing abilities to rent the equipment instead of buying it. 

Executive Summary 

Being a standard and registered business, your company should have a unique yet easy-to-recollect name and must have a good location in a city where construction activities can be seen in a large number. The next thing is to specify your services, intentions, work values, and ethical standards, promises, and other aspects that will drive the person’s attention reading your business plan. It should also serve as a motivating factor for the business partners in the future when they lose the energy to carry forward the business. 

Mention all the driving factors, including the experience and qualifications of the owners involved in the business. You can also write down the work standards you will be following while delivering service and client support as and when needed. 

Services 

The equipment rental services provided by your company are of all types and are time-bound. The intention is to generate profit but as per the laws defined by the United States. 

• To provide equipment on the rental basis such as trenchers that are useful for construction companies. 
• To sell materials and tools such as chainsaws. 
• To distribute equipment for all manufacturing companies. 
• To repair equipment and tools set up at the manufacturing units of companies. 
• To train staff on how to use certain equipment as it is rented to them. This ensures that you will get your equipment back in order and not with issues. 
• To provide consultancy and advisory services accordingly. 

Mission Statement

To set unique goals and objectives for the business, to thrive and be the number one in the relevant business, and create no competition in the industry. To become a well-known rental brand in the country.

To be the best equipment rental business in the city, and rank in the top equipment rental businesses in the United States in the coming five years.” 

Business Structure – Jobs and Responsibilities 

The business structure consists of several job positions and responsibilities that can be created to provide your specific products and services to the customers. Remember that you will need a huge number of manual staff as well as skilled staff to carry out the said duties and responsibilities. 

• CEO – The pioneer, he is the person to evaluate, monitor, and take over project work. 
• Manager – Rental and Leasing – He will handle the given projects, allocate resources, and check at each stage whether the project is at par with the expectations or not. 
• Manager – Maintenance and Purchasing – He will be responsible for the purchase and maintenance of the said equipment. 
• Truck drivers, security guards – they are required for the said tasks. 
• HR Executive – He will handle the administrative as well as recruitment and selection of staff activities. 
• Marketing Executive – A business needs to be promoted, and a marketing executive knows how to do it. 
• Accountants – They will process accounts and financial statements on a per-project basis and as a whole. 
• Client Executive Officers – They will communicate with the clients on behalf of the company. 

SWOT Analysis 

This assessment tool seems to be classic as it still helps a business gauge its abilities and discrepancies without lowering morale. 

• Strengths – Online available, easy response to the queries, a keen desire for customer requirements, and more prior experience in the rental industry. 
• Weaknesses – Chances of saturation of the businesses and insufficient finances. 
• Opportunities – Long-term goals, advisory services, and other opportunities. 
• Threats – Competition and economic recession. 

Market Analysis 

Even if the name says you need to rent equipment, you can indulge in several activities such as the sale of heavy equipment, distribution services, advisory and consultancy, and training services. It doesn’t have to be limited to rental activities. The following target audience will be interested in availing your services: 

• Construction companies and agricultural entities. 
• Mining and aviation industry. 
• Business organizations are involved in the supply of medical devices, forestry, and other equipment. 
• Waterways and railways. 
• Households. 

Business Sales Forecast 

If you have planned to provide all the services mentioned in the Services Section of this business plan, you shouldn’t aim less. You should raise your revenue standards as you can expect clients and businesses all the time availing your services. 

It could be $800,000 in the first year, and you can double it in the following years. But ensure that you have a solid marketing and sales strategy going in hand with the sales objectives you set. 

Sales, Marketing, and Advertising Strategies 

You should know to hit the hammer at the right place. It means if you are into the rental business, you should target only those companies who are in dire need of equipment and tools or need advisory services in connection with the same. 

• Introduce your business and associated services to the target audience in your area and city. You can send them brochures and make a presentation at their workplace. 
• Do not underestimate the power of print media – newspapers and magazines, and traditional media such as newspapers and TV. They will surely help you to create awareness of your brand in the city. 
• Use digital media and direct marketing techniques – website, social media, and meeting with concerned authorities. 
• Listing in online and print directories. You never know who will come across your brand. 
• Advertise business using Google AdSense. 

Business Pricing Strategy

Pricing strategies will only be effective if you do enough feasibility analysis in connection with the costs and charges levied by other companies. Go a little overboard and study cases of reputed rental companies and how they achieved success. It really helps you to set competitive and reasonable prices and still achieve the sales predictions. 

Since you understand client specifications, ensure that you customize packages and payment modes for them. 

Business Expense Estimates 

The expenditure during the start-up phases of the company is a huge concern. Since you will be purchasing heavy construction equipment, you cannot lower or compromise the budget. It could be between $1,000,000 and even more than the said amount. A proper financing strategy can help you get out of the mess and streamline your funds. 

We are hopeful that this business plan is of help to you. 

You can rent a variety of construction equipment such as excavators, skid steers, boom lifts, scissor lifts, trenchers, and more.

Rentals can be for as long as you need them—from days, to weeks, to months.

Rental options include short-term, long-term, and rent-to-own options.

Yes, most construction equipment rental providers have a minimum rental period which is typically a day or a week.

Yes, most providers will require some sort of insurance coverage on their equipment.

This depends on the rental provider and the terms of the rental agreement.

Yes, most companies offer discounted rates for long-term rentals.

Yes, many companies offer delivery options for an additional fee.

Most companies accept cash, checks, major credit cards, or wire transfers.

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Borrow My Tools is a start-up company serving the San Mateo, CA community with home improvement tools for lease or rental.

Starting an equipment rental business makes a ton of sense in today’s world. With a trend towards minimalism and reducing environmental impact, allowing customers to rent the equipment they need versus purchasing outright is a win-win for both you and your customers. You might be wondering how much inventory should I take in, and how long should rental terms be, and the like.

The only want to determine these scenarios is putting the effort into creating a business plan that will unpack and optimize your equipment rental business opportunity. Get started today by perusing our selection of equipment rental business plans.

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7 Tips for Running a Plant Hire Company for Young Players

1. plant hire cashflow problems - you’re either a hero, or at zero..

The lumpiness of cash flow in construction subcontracting, at every level of the industry, has taken down literally thousands of companies in what seems like a blink of an eye - from some of the biggest and best contractors and plant hire companies, to the smallest of owner-operators. Over the last six years, we’ve watched hundreds of companies go down in smoke over non-payment of contracts, or delayed payments.

This is one aspect of the industry that is spectacularly unfair and not correctly regulated - which is made even more ridiculous when you consider that a big pile of the ‘liquidity’ in the contracting industries is paid by the government, and is done so purely for the purpose of redistribution through the community and economic growth.

But my opinion on the macro-economic flaws of construction aside is you have to play the game, the way its played. If you work in construction, you need to manage your cash-flow to prepare for the worst eventuations and possibly act way more prudently than if you work in any other industry, because these problems are rife. There is no need for you to become a statistic. You need to expect that you won’t get paid, or payment will be delayed, and keep more cash in your business than you otherwise would if you are working in any other industry.

So many of our customers have told us (slightly amusing) tales of mistakenly believing their a ‘big dog’ when they take a lumpy invoice payment, then they start splashing it around on things like helicopter pilot lessons, dirt bikes, tricked out beamers and boats (real-world examples). Indeed, when you start doing things like this, you are on borrowed time and borrowed money. Most of that money will go out the door, with little more than 17% - 20% will stay in the business (based on the average gross margin of plant hire companies across the board). But as per my previous advice, you should keep all the business for a rainy day, and permanently delay your helicopter pilot aspirations until you actually own a helicopter, which for most plant hire companies - is a LONG time from now.

HOT TIP: If you are in a cash-flow bind and you need payment of one of your invoices early to keep the wheels of your business greased, you can use ‘factoring’ or debtors solutions to bring the payment of those invoices forward by outsourcing them to someone else. We have a great partner in this space, called Premium Funding - click here to learn about how debtors solutions can work .

2. BAS payments for plant hire companies - the sneaky buggers really creep up on you

BAS payments in a plant hire company are like the grim reaper lurking in the distance -  they seem to descend on you when you least expect it (even though they are due at the same time every quarter - wink, wink). Given the payment delays of many contractors to payment terms exceeding 90-120 days, your BAS can be due on revenue you’ve not received any cash for. In some cases, you might not receive for another 30-60 days beyond needing to account for it as revenue, and then needing pay your GST.  This can sometimes be the thing that quickly sinks a small business if it's not managed the right way.

HOT TIP: ATO Payment Plans for plant hire companies - the ATO does offer payment plans to going concerns that are in reasonable financial shape and interestingly, let you pay your tax obligations down at an agreed rate, plus about 8% interest (this might be subject to change). Those of us who run small businesses will know that it's really hard (after the banking royal commission) to obtain low cost debt and cash-flow solutions. So the ATO payment plans can actually be, in some cases, the lowest cost debt available to your business. It can just be a good way of smoothing out your statutory payments over a short-term cash-flow issue. Click here to use their calculator .

3. Sponsoring race cars

Sponsoring race cars, in the opinion of a very experienced construction marketer - is straight up the dumbest thing you can do with your money, if you are seeking to invest your hard earned dollary-dos in growing your business. If it's a hobby, fine - go ahead - but don’t do it under the delusional assumption that it will actually provide your business with any meaningful advertising, lead generation or brand awareness for the money you will spend. Having your brand wedged on a speeding car, next to a million other brands, as it wurrs in circles in front of a crowd of drunken monkeys sitting in stadium seating at a distance that makes your tiny brand illegible, provides no meaningful benefit to your business and will not, in anyway, convert a lamen in the stands to a customer. Unless you're Coates Hire and sponsoring the whole event (and even then there are literally A MILLION other things I would do to generate online leads before I did this).

HOT TIP: Don’t sponsor race cars.

4. Dodgy Tax deductions

“No, your mountain bike rack ISN’T a tax deduction’ The above example (of a mountain bike rack being used to store a ladder) is not a tax deduction, it's funny, but it's not a tax deduction. Buying a camping generator and saying it's for the business is not a tax deduction either. Naming your boat ‘Mini Excavator’ and getting the workshop to service it - is borderline, but not a tax deduction and not a normal expense (despite being incredibly creative - and indeed a real-world example).

The ATO is getting very good through the use of data analytics at flagging submissions that have higher-than-average amounts of deductions or claims (based on industry and occupation profile) and can arbitrarily go after you - which causes a costly, life-changing, impossible to actually pass audit and flags all of your future submissions. You cannot underestimate how bad this can be for your business, and generally your quality of life if this happens to you.

HOT TIP: Here is a link from the ATO around the total list of claimable expenses for small businesses . Don’t forget, keep receipts!

5. Bad (or no) Contracts (if your client won’t sign one, run….)

The majority of our smaller plant hire companies are bad at admin. I’m not trying to sledge 47% of my customer base - I’m just being honest about what see going on everyday at iSeekplant . Bad correspondence, non-legally binding agreements, no contracts, no actual paperwork, no PPSR and no correct documentation. It's at chronic levels in the industry - and it's pretty much the source of all other headaches in this article. If you have crap contracts with a customer - that are not complete, not legally binding and not signed, then you have nothing in the case of a dispute over payment or hours, and very limited risk protection if they go under.

If a client won’t sign a contract to hire your machine, don’t hire it to them. You can’t tell me that a civil engineer or project manager isn’t used to signing contracts to hire machines - they do it every day with the big guys when they hire from ( Tutt Bryant , Kennards , Brooks , Delta Rent , you name it). They sign contracts to hire god-damn gensets, they can sign a contract to hire your 20 tonne excavator.

If a client is trying to do handshake deal with you because your a small operator, all the while signing the contracts of other big plant hire companies for smaller machines and companies that have WAY less to lose than you, then they are trying to screw you whether they ever admit it or not, or you can admit it to yourself (even if you are excited to have the work). They want the flexibility, they don’t want liability and they don’t want recourse - which means they are the most likely to off-hire you in a heartbeat, not pay you or screw you down to no margin when you’re onsite.

These guys are used to signing contracts - so get them to sign yours. You have a right to protection.

6. Hitching your wagon (literally and figuratively) to a bad finance company

Most first-time machine purchasers for their business get screwed when financing a machine. This is because they have very little credit leverage to use in a finance conversation, and often-times because they access the wrong types of credit to fund them into a machine. This can have ongoing consequences for burgeoning plant hire companies for years (because you’re paying your machine off for years).

In the early years, as you are building your business - you often have to do a bunch of jobs at lower-than-market rates, so you can prove yourself and develop a reputation and quoting practise that you will evolve and take with you from job-to-job. So, your margin is already low, and your making massive machine repayments. It will put financial pressure on your business, sometimes to the point that you’re in a hole (pardon the pun) that you can’t get out of. HOT TIP: Our partners at Finlease are the experts in finding the right finance product for the stage your business is it, and ensure that you get the best deal available to you. They are also great blokes. Click here, you can tinker with their finance calculator or email them your details.

7. PPSR for plant hire and rental companies - It's so boring and hard, but so worth it.

If you don’t register your machines on the PPSR, and update every time you shift a machine onto a site, then if a contractor becomes insolvent and is forced into liquidation, your machine can be considered their property and retained by the liquidators until you can prove ownership - usually with your PPSR registration. We’ve heard some CRAZY situations where someone’s entire fleet has been locked behind a fence in a contractors yard waiting for the liquidators to pull their finger out and do a stocktake, and determine machine ownership. We’ve also heard other crazy stories where, in lieu of the correct ownership paperwork, the plant hire company has not been able to prove ownership and they’ve lost the machine to the liquidators.

It's boring, it's paperwork, it's hard to get right, but it's critical. Click here for the full work up.

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• Jun 2, 2023

How to Run a Profitable Earthmoving Plant Hire Business

Updated: Jun 6, 2023

The earthmoving industry plays a crucial role in construction, mining, and infrastructure development. Running a profitable earthmoving plant hire business requires careful planning, effective management, and a thorough understanding of the industry. In this comprehensive guide, we will discuss key strategies and important factors to consider when starting and operating a successful earthmoving plant hire business.

Section 1: Market Research and Planning

1.1 Identifying the Target Market Understanding your target market is crucial to the success of your earthmoving plant hire business. Identify the industries, construction projects, and geographic areas that require earthmoving equipment. Conduct thorough market research to determine the demand for various types of machinery and equipment.

1.2 Competitor Analysis Analyze your competition to gain insights into their pricing, services, and customer base. Identify gaps in the market that your business can fill, and develop strategies to differentiate yourself from competitors.

1.3 Business Plan Development Create a detailed business plan that outlines your goals, target market, pricing structure, marketing strategies, and financial projections. A well-defined business plan will serve as a roadmap for your earthmoving plant hire business and help you make informed decisions.

Section 2: Equipment Acquisition and Maintenance

2.1 Equipment Selection Investing in the right equipment is critical to the success of your business. Determine the types of machinery and equipment that are in high demand in your target market. Consider factors such as versatility, reliability, fuel efficiency, and maintenance requirements when selecting equipment.

2.2 Equipment Financing Purchasing earthmoving equipment can be a significant financial commitment. Explore financing options such as leasing, equipment loans, or partnerships to acquire the necessary machinery. Evaluate the pros and cons of each option and choose the one that aligns with your long-term business goals.

2.3 Maintenance and Repair Regular maintenance and timely repairs are essential to ensure the optimal performance and longevity of your equipment. Develop a comprehensive maintenance schedule and train your staff to conduct routine inspections. Establish relationships with reliable equipment service providers to minimize downtime.

Section 3: Pricing and Financial Management

3.1 Pricing Strategies Determining the right pricing structure is crucial to running a profitable earthmoving plant hire business. Consider factors such as equipment depreciation, operating costs, labor expenses, and market demand when setting your prices. Conduct periodic pricing reviews to ensure competitiveness while maintaining profitability.

3.2 Financial Management Implement robust financial management practices to track revenue, expenses, and cash flow. Use accounting software to monitor financial performance, prepare accurate invoices, and manage payroll. Regularly review financial statements and seek professional advice when necessary to make informed business decisions.

Section 4: Marketing and Customer Acquisition

4.1 Online Presence Build a strong online presence through a well-designed website and active social media profiles. Optimize your website for search engines to increase visibility and attract potential customers. Share relevant content, industry news, and case studies on your website and social media platforms to establish credibility.

4.2 Networking and Partnerships Develop strong relationships with contractors, builders, and other industry professionals who can provide referrals and recommendations. Attend industry conferences, trade shows, and networking events to expand your professional network. Consider forming partnerships with complementary businesses to offer bundled services and increase your customer base.

4.3 Customer Service Provide excellent customer service to foster long-term relationships and generate repeat business. Respond promptly to inquiries, address concerns, and exceed customer expectations. Regularly seek feedback and implement improvements based on customer suggestions to enhance your service quality.

Section 5: Health, Safety, and Compliance

5.1 Health and Safety Standards Maintain a strong focus on health and safety to protect your employees, clients, and the environment. Adhere to all relevant regulations and industry standards. Implement comprehensive safety training programs and conduct regular inspections to ensure compliance.

5.2 Insurance Coverage Obtain appropriate insurance coverage to protect your business from potential liabilities. Consult with an insurance professional to identify the types of insurance required, such as general liability, equipment insurance, and worker's compensation.

Running a profitable earthmoving plant hire business requires careful planning, diligent execution, and continuous adaptation to market conditions. By conducting thorough market research, acquiring the right equipment, implementing effective pricing strategies, and providing exceptional customer service, you can position your business for success. Remember to prioritize safety, maintain strong financial management practices, and stay updated with industry trends to stay ahead of the competition. With dedication and perseverance, your earthmoving plant hire business can thrive and generate substantial profits.

Ten Biggest Challenges When Running a Plant Hire Business

Running a plant hire business, like any other business, comes with its own set of challenges. Some of the significant challenges you may face in running a plant hire business include:

Equipment maintenance and repair: Managing a fleet of equipment requires ongoing maintenance and occasional repairs. This can be a significant challenge, as breakdowns can disrupt projects and incur costs. Ensuring timely maintenance, scheduling repairs, and having backup equipment available are crucial to minimize downtime.

Equipment utilization and availability: Maximizing equipment utilization and availability is essential for profitability. However, achieving a balance between meeting customer demands and avoiding equipment idle time can be challenging. Predicting demand, optimizing scheduling, and managing multiple projects simultaneously require careful planning and coordination.

Capital investment: Acquiring and updating equipment involves substantial capital investment. Balancing the need to expand your fleet with financial constraints can be a challenge. It requires careful financial planning, assessing market demand, and making informed decisions about purchasing or renting equipment.

Hiring and retaining skilled operators: Skilled operators are critical for operating heavy machinery efficiently and safely. However, finding and retaining qualified operators can be challenging due to the competitive job market and specialized skill requirements. Offering competitive wages, training programs, and providing a positive work environment can help attract and retain skilled operators.

Compliance with regulations: The plant hire industry is subject to various regulations related to health and safety, environmental protection, transport, and licensing. Staying up to date with these regulations and ensuring compliance can be complex and time-consuming. Failing to comply with regulations can lead to penalties, legal issues, and damage to your business reputation.

Managing logistics and transportation: Coordinating equipment transport to and from customer sites requires efficient logistics management. Factors such as transport permits, route planning, and timing need to be carefully considered to ensure timely delivery and pick-up. This becomes more challenging when handling multiple projects in different locations simultaneously.

Seasonal demand variations: Plant hire demand can fluctuate based on seasonal factors or economic conditions. Managing these variations and maintaining a steady cash flow can be a challenge. Strategies such as diversifying services, exploring new markets, and building long-term customer relationships can help mitigate the impact of seasonal fluctuations.

Competition: The plant hire industry can be highly competitive, with numerous companies vying for the same projects. Differentiating your business from competitors and providing exceptional customer service becomes crucial. Offering competitive pricing, ensuring equipment quality, and developing a strong reputation can help you stand out in the market.

Insurance and risk management: As a plant hire business, you need to have appropriate insurance coverage to protect against potential risks, such as equipment damage, accidents, and liability claims. Assessing risks, understanding insurance requirements, and implementing effective risk management strategies are essential but can be complex tasks.

Technological advancements: Keeping up with technological advancements in the plant hire industry can be a challenge. New equipment models, telematics, software solutions, and automation are constantly evolving. Evaluating and adopting new technologies that can improve operational efficiency, equipment performance, and customer experience require ongoing research and investment.

Overcoming these challenges requires careful planning, adaptability, continuous learning, and a customer-centric approach. By addressing these hurdles effectively, you can position your plant hire business for success in a competitive market.

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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
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $110,000 for the development of a heavy equipment rental business while showcasing the expected financials and operations over the next three years. Heavy Equipment Rental Service, Inc. (“the Company”) is a New York based corporation that will provide for the rental of construction equipment to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

The Heavy Equipment Rental Service is primarily in the business of renting equipment in conjunction with minor and major construction sites that require specialized construction equipment.

The Company will maintain an expansive inventory of construction equipment that are commonly used in conjunction with construction. Currently, Mr. Doe is sourcing a number of vendors from which the business can acquire large inventories of rentable products.

The third section of the business plan will further describe the services offered by Heavy Equipment Rental Service, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $110,000 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. The financing will be used for the following:

Acquisition of a Compan vehicle for delivery.

Financing for the first six months of operation.

Heavy equipment inventory purchases.

Mr. Doe will contribute $25,000 to the venture.

1.3 Mission Statement

Heavy Equipment Rental Service, Inc.’s mission is to become the recognized local leader in its targeted market for rental of construction and heavy equipment.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as an entrepreneur. 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 construction companies and contractors within the target market.

2.1 Registered Name and Corporate Structure

Heavy Equipment Rental Service, Inc. The Company is registered as a corporation in the State of New York .

At this time, Heavy Equipment Rental Service, Inc. requires $110,000 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 Heavy Equipment Rental Service, 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 Heavy Equipment Rental Service, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

3.1 Rental of Heavy Equipment

The primary revenue center for the business will come from providing construction companies and contractors with a plethora of construction equipment. Equipment that the business will provide includes, but is not limited to:

Large Scale Construction Equipment

3.2 Ancillary Services

The Company will generate secondary streams of revenues from other services related to renting equipment such as delivery of items, setup, onsite management and cleanup/pickup of equipment. Management expects 20% of the Company’s aggregate revenues will come from these services.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the equipment rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is moderate. Unemployment rates have declined while asset prices (such as equities and real estate) have increased significantly. As such, the Heavy Equipment Rental Service will be able to remain profitable and cash flow positive at all times through its high gross margins.

4.2 Industry Analysis

The tools and construction equipment rental and supply business consists of 4,500 suppliers across the Untied States that rent saws, presses, drills, cranes, large scale construction equipment, and related items used in conjunction with construction.

Among these market agents, aggregate yearly revenues are approximately $4 billion dollars per year. The industry employs more than 30,000 people, and provides annual payrolls in excess of $900 million dollars.

The growth of this industry has remained on par with the growth of the economy in general, and is expected to remain as such as time continues.

4.3 Customer Profile

The primary clients of the Company will consist of small to medium sized construction companies and contractors. Among these customers, Management has outlined the following demographics:

Operates as a construction company.

Operates as a general contractor or subcontractor.

Annual revenues of $250,000 to $5,000,000

Annual EBITDA of $100,000 to $1,000,000

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

Heavy Equipment Rental Service, Inc. 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 Company.

5.1 Marketing Objectives

Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.

Establish relationships with general contractors througout the target market.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow Heavy Equipment Rental Service, Inc. to easily target individuals and businesses 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 Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the heavy equipment rental services that the Company is selling.

Heavy Equipment Rental Service, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as renters of construction equipment, now the Internet to conduct their preliminary searches. Mr. Doe will register Heavy Equipment Rental Service, Inc. with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services offered by the business, relevant contact information, and preliminary pricing information.

Finally, the business will develop ongoing relationships with general contractors that will subcontract the rental of construction equipment to the Company.

5.3 Pricing

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.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 Company has based its proforma financial statements on the following:

Heavy Equipment Renta l Service will have an annual revenue growth rate of 16% per year.

The Owner will acquire $110,000 of debt funds to develop the business.

The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. In the event of an economic recession, the Company may have issues with top line income as individuals and businesses scale down new constructions. However, despite decreases in revenues, Heavy Equipment Rental Service, Inc. will be able to remain profitable due to the very high gross margins generated by the business.

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

Moscow major projects

Since launching modern Russia’s largest construction program in 2011, Moscow has more than doubled its territory. To catalyze the full potential of this rapidly-growing metropolitan area of 19.5 million people, the City of Moscow’s government pays significant attention to infrastructure as one of the key pillars of urban development—with a current focus on projects that create livable and comfortable urban spaces for both citizens and tourists.

Following its first five years of projects, Moscow was given special recognition for “demonstrating outstanding strategic commitment and ambition” by the International Association of Public Transport (UITP). That period saw 50 million square meters of real estate developed, 370 social infrastructure objects built, and the metro expanded by 30 percent—including 101 kilometers of metro lines and 55 new stations. Innovative finance solutions, necessitated by the city government’s debt-free approach to development, enabled all this whilst maintaining a budget surplus and remaining a net donor region within Russia.

On 30-31 May 2018, the City of Moscow and Mosinzhproekt—a large Russian engineering, construction and project management company—hosted an Innovation Site Visit to showcase Moscow’s major projects to the Global Infrastructure Initiative (GII) community. Through roundtable discussions and site visits with project executives, participants explored where innovation and technology have enabled the step-changes that have allowed Moscow to deliver major projects on a short timeline—and how to apply these lessons to other cities and major projects.

The following insights emerged during GII’s Innovation Site Visit in Moscow:

• Establish a structure for citizen involvement. Major urban infrastructure projects are an extremely visible expenditure of taxpayer funds while also often being large disruptors of daily life. A foundation of citizen support is essential for success and requires a thoughtful engagement program. In Moscow, citizens are encouraged to participate in the planning process by steering major initiatives through the “Active Citizen” application—a portal for online referendums on topics appropriate for democratic decision-making. To date, almost 2 million citizens have cast more than 90 million votes on over 3,000 issues through the platform. The purpose of this structure is to increase the opportunity for citizen engagement and involvement with their city’s major investments.
• Manage the disruption ‘cost’. Major urban projects cannot be delivered without disrupting daily life. While citizens can be enrolled to accept the disruption as a necessary investment for a better outcome, equal attention needs to be given to managing the disruption ‘cost’ as to managing real expenditures. For example, MyStreets, a project to upgrade and enhance Moscow’s urban environment through reconstruction of streets and building façades, was disruptive to many citizens and commuters. However, through staging and swift execution, the disruption was minimized and the intended lifestyle improvements were quickly delivered to Muscovites and tourists who traverse newly styled pedestrian streets every day.
• Invest in technology to optimize sequencing. Moscow’s cohesive vision for urban transformation has allowed early investments in technology to assist future delivery. One of the first projects completed was the centrally-controlled traffic management system which can monitor traffic conditions and urban movement through more than 2,000 traffic cameras and 160,000 CCTV cameras installed across the city. Data collected on current conditions, and knowledge of planned activities, allows real-time rerouting of traffic through the city’s dynamic signage. It also allowed identification and analysis of permanent traffic flow changes that could further ease disruptions like those created by the major construction projects.

Moscow traffic speed increased over 13% in 201.

• Maximize utility of brownfield sites. A key reason the Moscow Central Circle (MCC), a new light-rail system integrated into the Moscow Metro, was completed in a record four-year period was the repurposing of existing brownfield networks which allowed the installation of modern technology on existing rail transport routes. The MCC’s 31 new stations will revitalize formerly abandoned industrial areas when its next stage of development builds an expected 300,000+ square meters of hotels, 250,000+ square meters of retail, and 200,000+ square meters of offices. This will give districts with historically poor infrastructure access a chance to develop at the same pace as the rest of the city.
• Leverage PPPs to enhance basic services. To manage public cost and investment while delivering world-class infrastructure, municipalities need access to additional financing tools. Based on a structure that took an act of federal legislation, the MCC is an example of enhancing publicly developed foundations with private services. The tracks and land are owned by the Moscow Metro, with the rolling stock subcontracted to Russian Railways under a life cycle contract with a guaranteed buyback. The innovation is that Moscow Metro is licensing the development rights of its individual stations to private investors. Though all stations will exist under the same covenants, individual investors will assume their station’s construction cost and operational risk and rewards.
• Create citizen-centric spaces. In addition to serving as open spaces, today’s city residents expect their parks to provide for entertainment and consumer services too. Many modern parks offer architectural features, charismatic vistas, and social, educational, and artistic spaces for all ages. When Zaryadye Park, an area of prime real estate next to the Kremlin was converted to parkland, an international contest resulted in 10 hectares being densely designed for this multi-function purpose. The outcome was two concert venues, restaurants, a parking garage, an entertainment complex, and a biological education center, all neatly camouflaged into a natural landscape that represents Russia’s ecological diversity.
• Innovate where needed but not excessively. Moscow’s planners and builders did not shy away from technological innovation. The MCC used weldless joint rails to create a smoother and quieter system that is easier on riders and less disruptive to residents living near the railway tracks. The retrofit designs for Luzhniki Stadium were fully modeled in building information management (BIM)—a step which identified more than 100,000 conflict points before they could escalate into project delays. However, the project teams were also careful not to force innovation where it could create unnecessary risk and complications. Instead, they delivered the massive project portfolio by tactically melding innovations with highly-proficient execution of well-known and proven methods.

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Moscow International Business Centre (MIBC)

The Moscow International Business Centre (MIBC) is an ambitious engineering project in the centre of Moscow. The site is

Estimated Investment

$12 billion

Construction Started

Moscow, Russia

Project Type

Business complex (city within a city)

CITY JSC, Moscow City Government

The Moscow International Business Centre (MIBC) is an ambitious engineering project in the centre of Moscow. The site is on an old urban area near the river embankment. The goal of the project is to create a new business district within the city.

The whole complex is to be built on a 100ha site (divided into 30 plots) designated for new development on the Krasnopresnenskaya embankment. The management company for the project is CITY Joint Stock Company (CITY JSC), a company first set up in 1992 as a collaboration between the Russian government and private investors.

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The project was first launched in the early 1990s but has been stalled for much of the last 10 years due to a lack of investment. In 2003 the project started to attract investment again and has been gaining momentum ever since.

PLOT 1: BAGRATION BRIDGE AND TOWER 2000 OFFICE COMPLEX

The first major building constructed in the MIBC project on Plot 1 was the Bagration Bridge (pedestrian bridge) and mall, completed in 1999. The second project was the Tower 2000 office complex, a multi-use business complex begun in 1996 and completed in 2001. The building is 106m high and has 30 storeys above ground and four storeys below. The total floor area of the complex is 60,000m².

The underground area contains parking garages, restaurants, retail areas and a fitness centre. Floors 3–15 and 17–26 are business offices while floors 8 and 27 have a media centre, large exhibition hall and piano bar.

The business areas are served by structured cable network, fibre optic cable, satellite broadcasting, Wi Fi and ADSL Internet access, automatic digital telephone exchange with integration of services, local broadcasting system, municipal broadcasting network, electric timing system, data collection and processing system, audio and video systems, simultaneous interpreting system, conference system, video projection system and security systems including biometric access control and a monitoring system.

The tower also has a central air conditioning system, auxiliary exhaust ventilation system, cooler and heat supply systems, Uninterruptible Power Supply system (UPS), automatic fire security system, automatic volumetric fire-fighting system, sprinkler system and automatic smoke removal system.

The general contractor for the tower was Promstroytechnologia-M Company Ltd. The facade of the tower, which is made of glass and structured concrete, was constructed by Transwall Technology. The tower is equipped with 17 computerised rapid elevators, supplied and installed by Schindler Aufzuege AG, and an outer panoramic elevator, supplied and installed by Kone Lifts. The exterior lighting equipment was supplied and installed by Thorn.

PLOTS 2 AND 3: MOSCOW WEDDING PALACE AND CITY SQUARE

The sites designated by plots 2 and 3 are now to be developed as the Moscow Wedding Palace and City Square. This will include a city square, an underground retail complex and a 14 storey multipurpose complex, which will include the Wedding Palace, banquet halls, restaurants, shops and a hotel.

The developer is Capital City Developments. The architect is Mosproject – 2. The construction started in 2005 and is scheduled to be complete by the end of 2007.

PLOT 4: AQUAPARK

The Aquapark leisure complex was started in 2002 and was completed in 2005. The site occupies a 1.74ha area adjacent to Krasnopresnenskaya embankment. It includes:

• Complex of swimming pools, water mountains and leisure attractions, restaurants and cafes and retail areas (24,352m²)
• Five-star, 30-storey hotel complex (54,640m²) built on a six-storey podium containing retail areas, restaurants and nightclubs
• Parking to accommodate 425 vehicles (13,050m²)
• The aqua park will be connected with a mooring on the Moscva River

The developer of the complex was Aqua-City Palas Company Ltd. The project required an estimated investment of $230 million. The general contractor was Liard Stroy Ltd and the designers were Mosproekt-2 of Russia and Tkhomesto Engineering of Finland.

PLOTS 6, 7 AND 8: UNDERGROUND MALL AND METRO STATIONS

A large underground complex containing the central core of the MIBC, an underground mall and two metro stations is located on these plots. Construction started in late 2001 on the 5.1ha site and was completed in mid-2004. The complex has a total floor area of 150,000m² and includes:

• 35,000m² shopping mall
• 20,000m² multi-purpose performance complex
• 10,000m² dancing complex
• 15,500m² sports and leisure complex
• 30,000m² ‘Wonderful World of Entertainment’ theme park
• 7,000m² restaurant complex
• 30,000m² hotel

The complex developer was CITY JSC and the designers were Mosproekt-2. The construction engineers were Bovis Europe and Jones Lang Lassale of the UK.

PLOT 9: CAPITAL CITY PROJECT

This project involves the construction of two connected tower blocks and a dome. The towers will be of 73 and 62 storeys high, with a 16-storey domed building containing an atrium. Connecting the buildings will be a podium building with three storeys above ground and 4–6 below ground.

The lower levels of each tower will be for office space (200,000m²), while the upper levels (above 80m) will be residential and the dome will be used as a retail area. The investment for the project is $250 million.

The developer is Capital Group; the construction engineers are Bouygues Construction and the architects are Erick van Egeraat Associated Architects of Holland. Construction has been underway since 2005 and the project is scheduled for completion in mid-2007.

PLOT 10: NABEREZHNAYA TOWER

This project involves the construction of a new office and apartment complex consisting of three A-Class buildings 16 (86m), 27 (135m) and 52 (250m) storeys high, with a total floor area of 220,000m². The construction began in mid-2003 on the 2.55ha site with the smallest of the three buildings.

The first building was completed in autumn 2004. Enka, a Turkish construction company , is carrying out the development and construction. Enka has invested a total of $150 million so far. Work is continuing on the other two buildings with completion expected in 2007.

PLOTS 11 AND 12: MIXED-USE TOWER BLOCK

The major project on these plots will be a 300m, 75-storey, mixed-use tower block with over 204,000m² of floor space. The facilities will include commercial and government offices, residential areas, retail space, leisure and health centres and a four-star hotel.

Offices will occupy the floors 4–45, while apartments are on floors 48–66. The building was designed as a two-tier skyscraper, 30 floors in the first tier and 37 in the second one. The second floor of the building will be occupied by a casino. The 47th floor will be occupied by a gymnasium.

The designers for the project are Swanke Hayden Connell Architects and the investors are Techinvest, who are investing $270 million. The contractors for the construction are Summa, a Turkish development company. Groundwork was carried out by Kaskatas. Construction on the building started in the third quarter of 2004 with completion scheduled for late 2006.

PLOT 13: FEDERATION OFFICE COMPLEX

The Federatsiya (Federation) office complex is to consist of two towers, one 57 storeys high and the other 87 storeys (345m), and a podium. The 87-storey tower will hold offices and the 57-storey tower will include residential apartments and a hotel. The total floor area of the complex will be 240,000m².

The podium will have three to five levels and 30,000m² of floor space and will contain retail areas, banking facilities, cafes, restaurants and leisure facilities. The complex will have 14 lifts built between the two towers, including four ‘Shuttle’ round-observation lifts.

Stroimontage and NIKoil Financial Group will invest more than $500 million in the project. The architects for the project are P Schweger, S Tchoban and A Asadov of Germany. Stroimontage is the general contractor for the project. Construction started in April 2004 and the complex is scheduled for completion by 2008.

PLOT 15: CITY HALL AND DUMAS

Plots 2 and 3 are owned by the Moscow City Government and original plans were for the new City Hall and Dumas (Parliament) buildings to be located there. However, these buildings will now occupy Plot 15.

The construction on Plot 15 consists of four 70-storey interconnected 308.4m buildings. The project started in November 2005 and will be finished by the end of 2007.

It is expected that all government administration will be accumulated in the new complex to provide better organisation, allowing the buildings currently in use to be sold.

The four skyscrapers will be connected by several two storey bridges between towers and eight storey bridges at the top. The highest bridges will be built in shape of letter ‘M’ for ‘Moscow’.

PLOT 16: RUSSIA TOWER

Plans for a 600m-tall tower to be built in Moscow to designs by British architect Sir Norman Foster were released in March 2006. ST Towers is the developer behind the project and is part of the ST Group.

The Russia Tower will be more than 50% higher than the Empire State Building and is to be built within the Moskva-City development on Plot 16 near the site’s border with the Third Ring Road. It will overshadow the 430m Federation Tower under construction at Moskva-City, which developers say will be the tallest building in Europe when it is completed in 2008.

The 420,000m² tower is a striking design comprising three blade-like structures arranged in a trefoil-like plan around a central core and tapering sharply toward the top, with part of the steel structure exposed on the outside like an exoskeleton.

Described by the architect as a vertical city, the tower is to house parking and retail space on nine underground levels, a public ice rink on the first floor under a spacious, pyramidal atrium, a hotel with serviced apartments above, 24 floors of office, high-end apartments on the top levels and a public observation deck at the very top. The resident population of the tower could be 25,000.

The Russia Tower is billed as an environmentally friendly project, maximizing natural ventilation and lighting, with solar cells, the collection of rainwater and snow to reduce water demand and the recycling of energy between areas with varying levels of demand. In addition, atria several floors high are to be spaced throughout the building’s central core and decorated with plants, providing the luxury apartments on the upper floors with private gardens in the sky.

The construction of the tower is expected to cost about $1.5 billion; of this about $150 million to $200 million would be supplied by ST Towers. Plans for the tower have been approved and it should be finished by about 2010. Construction has not yet started.

PLOT 17 AND 18: MULTI-PURPOSE OFFICE-HOTEL COMPLEX

The multipurpose complex will include two towers (80 and 78 floors), with a common underground space for parking. The high tower will contain office premises and the second tower will be a hotel.

The complex will also contain a roof-top restaurant with a panoramic view, cafes and bars, conference halls and billiard club. The architect is Skidmore, Owinds, and Merrill LLP. No dates have yet been announced.

PLOT 19: NORTHERN TOWERS

An office complex is being developed on this plot by ZAO Severnaya Bashnya. The Northern Towers will consist of three buildings – two 12-storey and one 29-storey. These will contain 135,000m² of floor space.

The architect is Project Institute 2 and the construction engineer is Bau Holding Strabag AG (Austria). Interior design in the building will be carried out by ABD Limited, and legal services with regard to lease documents are provided by PricewaterhouseCoopers.

The first phase of Northern Tower is scheduled for shell and core delivery by the fourth quarter of 2006. The marketing and leasing campaign has already started. Raiffeisenbank has agreed to become the first tenant of the complex.

Northern Tower will feature spectacular atriums, prime office premises and a multi-level parking for 688 cars. There will also be a multi-functional conference hall for up to 200 people, banking premises, restaurants and cafes, a fitness centre with a swimming pool operated by Reebok, a professional dental clinic and a beauty parlour.

POWER PLANT CONSTRUCTION

The power supply for the new MIBC has been a subject of much contention among foreign investors. The complex requires an efficient power distribution system operating at 20kV rather than the more typical 10kV.

CITY JSC and power supplier Mosenergo JSC put forward a proposal in 1999 to the Moscow City Government to develop a new power network for the MIBC, mini-metro, metro junction core, Eurostation and Sheremetyevo-Moscow Rapid Transit System.

The power and heat supply for the MIBC will be provided from three sources: the Mosenergo power station ‘SS-CITY-1’; the district heat and power station ‘Krasnya Prsnya’; and the MIBC power plant on Plot 7A, which entered its first phase of construction in 2002–2003 and is now well into its second phase with completion expected in 2006.

Having established the power supply sources, the next part of the project was the bulk power and distribution network to support the MIBC. Phase 1 of the MIBC power plant has seen the construction of a Gas Turbine Unit (GTU) and Heat and Power Plant (HPP) with a capacity of 50MW and a substation with two transformers for 110V from 20kV and 110V from 10kV and two 63MVA distribution units. The next phase will see an increase of capacity up to 100MW.

The developers of the power plant are CITY JSC and CITY-ENERGO Company Ltd. The contractors for the project are Liard-Stroy Ltd and the designers of the plant were Mosproekt-2 and VNIPI Energoprom.

TRANSPORTATION CONSTRUCTION

The Moscow–Sheremetyevo line is the first phase of the RTS to connect the three satellite airports to the centre of Moscow. This first line, 34.3km in length, will provide interconnectivity between the airport, regional centres and urban junctions and also interconnect with the existing municipal transport system. The project was started in 2001 and eight stations were planned. This stage is now complete.

The developer for the RTS is CITY JSC in collaboration with the City of Moscow; the designer is SNC Lavalin of Canada. The Phase 2 section of the project to extend the line to cover Vnukovo Airport was started in 2004 and is now nearing completion (scheduled to open in 2007).

The RTS development not only concerns rail links to the new commerical centre of Moscow but it is also a development in its own right. The Plot 11 development will include the construction of the new Moscow transport terminal uniting the RTS, three lines of the underground and the intercity bus terminal.

The complex will include transport stations with waiting rooms, boarding areas for VIPs, a hall of customs inspection, left-luggage offices, a 342 room hotel and ticket offices.

For this section of the development Citer Invest B.V. of the Netherlands is the developer, Behnish and Behnish Architekten of Germany are the architects. The investment is $200 million and construction is underway with an expected completion in 2007.

MINI-METRO LINE

A mini-metro line was also constructed to provide transportation within the MIBC and to connect with the historical centre of Moscow. There are three stations, one constructed in Phase 1 of the project and two in Phase 2. The three stations are Dorogomilovskaya, International and Moscow – City.

The length of the line is 5.85km. The engineering and transport contractors were Metrogiprotrans JSC. The line along with the International and Moscow – City stations came into operation in September 2005.

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• Other Industries

Monster group of construction companies collapse owing more than $80m

Two companies that made up a major Queensland construction firm have collapsed, leaving nearly 1000 creditors more than $80 million out of pocket.

Albo’s ambitious plan ‘won’t be achieved’

ASX lifts after Fed rates news

Sign housing crisis will drag on

At the end of last month, news.com.au reported that Allroads Pty Ltd had gone into in liquidation owing $24 million to 721 creditors.

Another subsidiary of the business, Allroads Plant Pty Ltd, also collapsed that month.

In a document obtained by news.com.au in recent days, the appointed administrators of Allroads Plant have revealed that the company owes an eye-watering $59 million.

All up, that means across these two companies, creditors are owed $83 million.

The Allroads construction group specialised in civil construction and had taken on a number of major road and defence projects in Brisbane, Townsville and the Gold Coast adding up to more than $200 million.

It was headquartered in Larrapinta in outer Brisbane.

Allroads Plant was reliant on its construction arm to make most of its money.

But unfortunately for the firm, its main construction business, Allroads Pty Ltd, went into administration in March and then later a court forced it to go into liquidation.

This saw the Plant entity’s profits dry up overnight and its directors decided to place it, too, under external administration.

The administrators of Allroads Plant Pty Ltd, Darryl Kirk and Stephen Earel of insolvency firm Cor Cordis, said in their report to creditors that the way it made money was “to own and lease assets” used by its construction entity, which accounted for about 80 per cent of its revenue.

“The company also leased equipment to other related entities and external businesses,” they continued.

Its “main source of revenue was from invoicing Allroads for the use of its assets”.

The administrators have identified 700 assets which they are now looking to sell in a marketing and sales campaign to recoup funds for creditors.

A lot of these assets are heavy machinery for road construction, including excavators, rollers, body trucks, dozers and trailers. They noted many of these were under loan.

They also recovered 76 laptops and 36 vehicles from the company’s premises.

Do you know more or have a similar story? Get in touch | [email protected]

Of Allroads Plant’s $59 million in liabilities, $13 million of that is secured debt that creditors will be able to recover.

The bulk of its massive debt comes from money it owes to related businesses in the Allroads group, which makes up more than half the amount, at $35 million.

The rest of the debt is unsecured creditors.

They noted this debt level was expected to rise, as not everyone has submitted proof of debt claims.

Collapse of sister company Allroads Pty Ltd

News.com.au previously reported that the construction company in the Allroads group had more than 12 multimillion dollar jobs underway when it collapsed, including a $50 million project for an Australian Defence Force base in Central Queensland, a $35 million project for RAAF barracks in Townsville and a $92 million contract to build a metro depot in Brisbane’s CBD.

More Coverage

Of the debts of Allroads Pty Ltd, 145 staff are owed $3.9m in wages, super and entitlements.

David Stimpson of insolvency firm SV Partners is the liquidator of Allroads Pty Ltd.

[email protected]

A new report lays bare the extent of Australia’s housing crisis, and offers a grim outlook to one of Anthony Albanese’s key promises.

Australian shares notched a tepid bounce on Thursday following some dovish rhetoric from the US Fed and positive sentiment around half-year results from NAB.

The number of new homes signed off for construction continues to lumber at a mid-2020 pace, according to new data from the Bureau of Statistics.

Moscow's Plans to Build Atop Radioactive Waste Pipes Spark Alarm from Experts, Industry

N early four decades ago today, the Soviet Union witnessed the worst nuclear disaster in history when the fourth reactor at the Chernobyl nuclear power plant in Ukraine exploded.

In the present-day Russian capital, another potential radioactive threat lies dormant beneath Muscovites’ feet.

In Moscow’s northwestern Shchukino district, city authorities are planning new developments atop underground pipes carrying liquid radioactive waste, with plans to erect business and residential buildings, a school and a kindergarten.

Locals and experts say these extensive construction works could damage the pipes, potentially spilling this radioactive waste into the environment.

“Inside the old pipes, there are centimeter-thick deposits of radioactive salts. There's a huge cocktail there, with many different radionuclides present,” said Andrei Ozharovsky, a nuclear physicist and antinuclear campaigner.

“In the event of damage to a functioning pipe ... it could lead to the simple spillage of its contents, resulting in local contamination,” Ozharovsky told the Moscow Times.

If the project goes forward, it will entail demolishing a garage complex on Shchukino’s Rogova Ulitsa — further angering residents with cars from over 1,400 garages congesting the already crowded local courtyards.

Covered threat

Moscow’s Shchukino district is home to several scientific institutions. The district was the cradle of Russia’s nuclear industry in the 1940s and instrumental in the creation of the first Soviet atomic bomb.

Among them are the Kurchatov Institute and the Bochvar Institute of Inorganic Materials, both involved in nuclear science to this day. For decades, their research has generated nuclear waste, transported via underground pipes to Moscow’s liquid radioactive waste processing plant in the same district.

Due to the secrecy surrounding this nuclear cluster, with information often classified during correspondence with authorities, the exact volume of radioactive materials involved and the scale of a hypothetical accident remain unclear, Ozharovsky said.

Experts familiar with nuclear research offered their best guesses.

“As someone with a specialized education, I can say that enterprises like radiochemical experimental workshops at the Bochvar Institute, as well as nuclear reactors and other facilities at the Kurchatov Institute, cannot operate without generating radioactive waste, primarily liquid waste,” Ozharovsky said.

According to Ozharovsky, the worst-case scenario would see radioactive substances leak from damaged pipes into the ground in liquid form, eventually finding their way into streams feeding the Moskva River, Moscow’s main waterway.

“They [spilled substances] will disperse, creating a zone of radioactive contamination that will need to be fenced off,” he said. “No construction can take place within this area, and it will be very expensive to clean up since radioactive substances tend to disperse quite easily but are very difficult to collect back — we know this from Chernobyl and other accidents.”

Vladimir Mordashov, a leading expert at the Kurchatov Institute, where he has worked since 1955, voiced similar concerns this month.

“The soil beneath the [garage] cooperative is essentially a graveyard of long-lived radioactive waste,” Mordashov said during a roundtable discussion on the issue at the Moscow City Duma that included concerned deputies, experts and locals.

“The radiation levels there are [so high] that it's not safe to build anything there. The only option for this area is to fill the entire cooperative with soil and plant vegetation," he said.

Besides directly affecting the pipes, the operation of heavy construction machinery could also set off ground movement. According to Moscow’s general city plan, the site sits on unstable land prone to dangerous geological events.

At the roundtable, several Shchukino residents also spoke out against the development plans and urged authorities to halt the project.

“In general, all the people we talked to on the street ... were unanimous that we need to preserve this [garage] complex. We don't need any specific development there; our area is already oversaturated with both cars and residential buildings,” said Alexander, who lives close to the site.

Local resident Galina said that officials have systematically ignored residents' calls despite their numerous attempts to knock on all doors.

“The residents, who are not very familiar with legislative activities, write their letters from the heart. And I believe that the Moscow government is simply, one might say, taunting the residents who protest, who send out cries from their soul, but only receive bureaucratic replies,” she said.

A petition against construction has garnered 1,200 signatures so far.

Powerful interests

Throughout Mayor Sergei Sobyanin’s tenure, the Russian capital has poured money into construction projects, drawing criticism for corruption-prone schemes that disregard the opinions of locals.

Public discontent regularly flares over various development plans, often those involving the clearance of green spaces. In 2019, residents also protested the construction of a highway that they warned could unleash buried radioactive materials from the nearby nuclear waste site.

At a first glance, the conflict in Shchukino is hardly unusual in this regard.

State Duma deputy Denis Parfenov, who has met with hundreds of residents opposing the project on Rogova Ulitsa, claimed that the Moscow government puts the construction industry’s agenda before locals’ concerns.

“We see widespread lobbying efforts aimed at designating various areas of Moscow for urban development, the vast majority of which boil down to … generating high profits for those carrying out this development," Parfenov said during an April roundtable at the Moscow City Duma.

However, this time, the developers’ interests collide with those of state nuclear energy corporation Rosatom in addition to those of Moscow residents worried for their health and the environment.

Careless activities near the pipes could directly impact Rosatom’s institutions, which would prefer the functioning of the pipes and proper disposal of the hazardous waste they carry to continue undisturbed.

According to Dmitry Grinchik, a representative of Rosatom’s Bochvar Institute, which manages the pipes, regular monitoring shows normal radiation levels at the site.

"We [at Rosatom] understand the priority of safety,” Grinchik said this month. “In the case of uncoordinated actions, these works [construction atop the pipes] may affect our site [the pipes].”

The Bochvar Institute also confirmed the threat in an official letter to the Moscow government last year, warning about the “special drainage” under the garages on Rogova Ulitsa and the sanitary protection zone established around it.

Russian legislation prohibits the construction of residential and public buildings, including schools and kindergartens, within a sanitary protection zone.

Yet a year later, city authorities do not appear keen for dialogue, having notably been absent from the recent Moscow City Duma meeting.

The Moscow government did not respond to The Moscow Times’ request for comment.

Ozharovsky warned that sweeping the issue under the rug would risk potential accidents.

He also urged the nuclear enterprise cluster in Shchukino to declassify information about the pipes and visibly mark the sanitary protection zone to prevent any future construction there.

"There is radioactive waste here, after all,” he said.

“This could indeed lead to serious problems, both now and in the future."

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Reporting by Alexander Cornwell and Maha El Dahan. Editing by Jane Merriman

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Maha reports on energy and commodities across the Middle East region. She has been working as a Reuters journalist for the past 15 years and has covered stories across Egypt, the Gulf, Yemen, Iraq, Syria, Lebanon and Jordan. She has previously managed the Lebanon, Syria, Jordan bureau. Contact: @mahaeldahan

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