How much do construction company owners earn?
How much do construction company owners earn? In the modern world, most people don’t even think about how to repair or build a house themselves. That’s why they seek help from construction companies that provide a full range of work on a contract basis.
How much does a construction company make?
Since most minor tasks do not require a building permit, almost any business person registered as an individual or legal entity can participate in this activity. For experienced construction workers, it’s a great money earner There is a method, but it is difficult to answer the question of how specific money the company makes because it depends on many factors.
How to start your own business and what costs will the company bear?
To start a business in the construction business you must have the necessary experience in this field. To do so, studying in a vocational school or university is not enough, because practical knowledge is required.
So, for starters, you have to hire other teams and take note of all the actions of the team leader: from his leadership skills to making responsible decisions in a particular situation and making adjustments for himself.
During the apprenticeship period, before undertaking construction work, one should start looking for investors, develop a clear plan, and select clients for themselves.
Note:
In the second phase, a construction company must be organized. It will require financial resources to open an office and hire senior employees and an economist.
It is also important to consider the fact that firstly, you do not need a license for ongoing work.
Please note that in Smeta-spb, the experts are ready to start preparing any estimate at the best prices, as any construction company and its income is strongly linked to expected activities, all details are available on the website http://smeta-spb with
This is because, first of all, it’s expensive, and second, you need qualified employees who have to pay higher salaries. At a business start-up, this is not possible, because there are no regular customers and stable profits. It is also necessary to register the company for legal activities.
The third stage is advertisement creation. The most effective advertisement at the moment is on television and the internet because the fast pace of life does not allow you to buy and read print media. Of the two options, for beginners, the company’s business The creation of a card site, which will require the involvement of experts, or creating it yourself is appropriate.
So, it’s important to buy a program to create Artstair construction sites, which will help you build your page and publish it online in minimal time.
Then you need to make the site popular for the area in which the company provides its services.
It is recommended to create a fully active version of the site so that visitors can be familiar with the services provided, view pictures of the results of the team’s construction work, and calculate the cost of services.
IMPORTANT:
When a company earns stable monthly revenues, it should speed up by offering additional discounts or free bonuses, such as installing Windows when ordering a certain amount.
During established work, the company will cover special equipment, appliances, taxes to the state, and ad maintenance and obsolete expenses. As you can see, the list is quite solid. Therefore, you will need the services of an experienced accountant who Shows you how to save taxes, hide/transfer some portion of the profit, etc, as well as calculate the efficiency of doing business.
For work, construction workers must pay a split salary or fixed salary with a specific percentage of transactions. The first option is ideal in the beginning, and then you should go to a steady level of salaries, because the main profit will go, and the purpose of building the company is to make money Usually, about 70% of income is paid to workers, and the rest goes to the firm’s accounts and general expenses.
What determines the level of profit?
The level of profit depends on the number of items commissioned for a specific period. Therefore, it is essential to do everything possible to increase the number of customers and lose the quality of service provided.
At the stage of promotion of the company, all work should be done efficiently and on time, not take a high percentage, and not waste profit, and then invest in the company to improve customer service, open branches in different parts of the city.
Work price must be calculated carefully and correctly so that customers are satisfied and recommend this company to their friends.
Better to place multiple orders in a day, not 30-40% more expensive than the price of construction materials than to sit and wait until there’s a rich person who can pay 100% or more for services.
The number of competitors will also be reduced at a low cost.
Workers may lose interest in work over time and want higher salaries, but don’t send the question to your top officers, start raising the price of work, or get involved in the theft.
So the work of the teams should be carefully monitored and the company’s ranking should not be reduced, and the rewards and bonuses system should be developed. Income mostly depends on the degree of organization of the workers and the degree of work coordination The absence of downtime allows you to move items ahead of schedule, which also has a positive impact on income.
When placing an order, you should go to the customer and give small discounts, especially when there is not enough small money to pay: he will have money, and he will contact your company again.
How to calculate the income of a construction company?
To calculate the income of a particular company providing construction services, you must follow the following steps.
. Profit is determined by the delivery of the product to the customer. For this, value-added tax and the actual cost of construction_ materials are deducted from the contract value.
. Thereafter, the total profit is calculated by the income derived from services offered and their cost for a certain period.
. Bookable profit is calculated, which includes profit derived from sales of property, products and auxiliary production, services, and other incomes, and the exhibit is an amount that remains after all taxes are paid. . Net profit is the amount of money left after paying all taxes.
. Depending on the company’s turnover and size, net profit can range from tens to millions of rubles per month or more.
Result
With the right and responsible approach to the work, construction companies can earn quite a fortune. To do so, you just need to create and manage a work team that is interested in the growth of the company.
How much does a construction company make?
“Business Magazine” continues under the title “We move the cash desk!” “To count income and color the working days of the capital’s small businesses.”This time in the light of administrative office searchlights a small construction company was busy repairing residential and non-residential premises. The process of “taking the cash desk” for the readers’ convenience is described in a drama with proper eye-catching, process development, climax, and condemnation.
Character
One owner is a solid man of forty years, a design engineer by training, who opened a construction company a year ago. The first worker, the second worker – former PET experts. The calculator is a shameless offspring of a mathematician, always falling into the conversation and others Carefully handles incomes and expenses.
A curious visitor for the “Business Magazine” owner.
Subject investigated: Construction company.
Tip:
Specialization: Residential and non-residential premises repair; low and medium-cost parts. Staff: Owner – CEO; Assistant Office Secretary. Office – 16 square meters. Rent – 21,000 rubles per month. Scope of work: Delivery of 3-4 items per month. Annual business: about 7 million rubles.
Monthly income of the owner: 60-90 thousand rubles.
Act only
Three-bedroom apartment in full swing. “Business magazine” and calculator hesitates at the door. Owner. Come in, don’t stay. We’re finishing up here.
There was a loud explosion in the next room. From there, the first worker ran outside screaming, his head was covered in foam.
Lord. What just happened? Second worker (running behind) Hakim spray can is taken with growing foam – no foam shell. Hakim spray gun picking up a screwdriver: Explosive! Foam gone, gone – a lot on his mind! Owner. Rags and salivants, fast! (He starts wiping the worker’s face first.) “Business General.”
Yes, you’re somehow annoying. Owner. Just that all behind the eye and eye need. The first worker moves the obscure thing through the foam.
This whole construction is no business but one of the dissatisfied people in Paso. Customers are always dissatisfied with the company and workers, workers with the company, and customers.
Sometimes I want to cry with these two and the others. “Business Magazine.” Why don’t you give up? Owner. You’ll get used to it slowly. (Rags running.) For a client, the repair is pressure to order for himself for his money. For us, it’s a normal production process.
(From the previous employee) Ok, can you breathe? Do the eyes open? Get out of here – go yourself! The first worker walks off shaking his head in frustration. Owner. In this business, how? If you manage to de-stress for a client, that’s already good. They’re not likely to appreciate you, even if it gets too hard for you, but recommending friends – yes.
To be honest, I went into this business a year ago not only with this but with an idea.
Calculator. That means not just cutting money.
Lord. I devoured the other side of obstacles. Started home repairs a year and a half ago. Found a decent-looking foreman. He, as usual, spoke to the Maldivians: “They will work with survival,” he assured. “So They will have it done soon! “The Maldovians gathered, broke everything, and launched violent activities. And I, happily, went on a business trip for two months.”
I thought I’d accept it when I came back to work – but it wasn’t there. I now understand that the Maldovians viewed my apartment as a place of residence, so they were in no hurry with the deadline. Daytime, others The apartments were being renovated, and in the evening – optional – they were tinkering in the ear. I arrived, and the foreman with the Moldovan brigade left the courtyard.
And within the next two months, he has knocked out two more foremen with his brigade: They either bloom, or they do. Solid cocker! Calculator. Who are they? Owner. Who work somehow and build their own business. I had to become a foreman myself. And nothing happened, the repair was completed perfectly for a month. But the circumstances themselves upset me.
Note:
Look: There’s a huge market, and consumers are willing to pay heaps, and even extra – just in case they don’t get a headache. And average contractors can’t catch fire during the day. However, customers too They are good. Someone recently boasted to me that he did a free repair for himself – he just spent on materials.
He came to Yaroslavia outside the Moscow Ring Road, where unfinished construction workers were exchanged, hired people for work, and a week later was fired without pay and came in for new people. I can imagine that The “disposable” workers set it up! After all, hard workers aren’t stitched with the BEST, they can even spoil a disadvantaged owner.
For example, place a rotten egg under a suspended roof: it will not appear immediately, but will stink! “Business Magazine. Well, “Our Russia”…” Lord. I’m leaning toward the fact that even shareholders in this chaotic market are making good money. And if you put everything in your mind, you can get rich! Typical, I left my office and decided to build my proper business here.
“Business magazine.” The advanced age? Lord. Not yet to be honest. I’m starting to slowly change statuses now. Who have I been all year? Foreman of the “wild” construction crew. I got the sense, word of mouth got me to work and got a constant chain of customers. On that basis, you can already run a normal company.
Two months ago, she rented a small office, hired a secretary, and began advertising on the internet and in local newspapers. It became easier immediately with orders, as clients trust a “slower” company more.
What about “business magazine.” and building license?
Market repair in numbers
. The capital market of apartment repair services is controlled by 34% of legal participants – construction companies. 66% are private_ construction workers and self-made brigades. • 5 thousand – Many legal construction companies operate in the Moscow market. Repair_ services in 2007 The Ky market was up 15-20%. • More than 60,000 new unfinished apartments were built last year. • The number_ of renovated apartments in the secondary is unaccountable. • Market price distribution of repair and finishing services (dollar per square_ meter): lower class (up to 150). Medium price (150-250), High price (250-1000), Elite (from 1000).
. On average, Muscovites spend $10,000 on apartment renovations.
Step by step, according to IRN and market participants
Owner. With a license, it’s not usually clear what’s happening. When I came into this business I asked lawyers if I needed a building license or not. A serious license to construct buildings and structures “with second-level responsibility to meet state standards,” lawyers say.
Federal Building Agency and housing and public utility issues such as. I ask lawyers: where is the construction? Well, I’m just going to plaster, paint, scrape floors, trim, replace plumbing, and all that. And they put a rating on my face, where in black and white: “finishing work” and “internal engineering systems tool.”
Forgive me for paying 100 thousand rubles for licensing services for these construction works, and everything will be done perfectly! In our country, it turns out, even steel door installers must have a license to build buildings! Although there was a lawyer at the time who convinced me: they say if you’re not working with the new buildings, but you’re not included in the “secondary buildings”, you can rebuild without a license. And I immediately thought that Believed wholeheartedly and decided to work without a license. Also, the trick is that it seems that the licenses of the building have been revoked years ago, but the licensing system is only doing it to extend it. If Won’t need a license from New Year if it isn’t renewed. I made it completely “legal” after that – and even went white and white in accounting.
Calculator. Let’s calculate your income! Owner. Look every month we rent 3-4 items. It’s a cosmetic renovation of the apartments, which means two and a half months of work on everything. Recently, we’re working on 7-8 apartments in a row in our work, which makes us feel good. Last month, the income was about 620 thousand rubles. It’s just for work, the content doesn’t count. About 70% of this labor goes to the workers, the rest goes to the company. The calculator (dynamic) puts out 186 thousand rubles! Owner. Other expenses are relatively low. Office rent, advertisement, secretary salary, assistant, visiting accountant. (estimate.) Almost one lakh runs out. Calculator. In total, you get 86 thousand rubles a month! Lord. Okay, this is it for now. Apartment renovation season is already over, then it’s going to get worse. Now I’m actively switching to small office repairs to keep up to speed.”Business Magazine.” The renovation market, it should understand, is almost overwhelming. Owner.
Yes, There’s only one limit. One person isn’t able to completely control repairs on more than four sites, which I’ve understood from my own experience. My assistant and I have enough for eight items. “Business Magazine.” It turns out to be special There is nowhere to go up in volume. Owner. And here I have a plan. Stability is necessary for the surrounding chaos. After all, that’s the essence of business, right? I understood that it is necessary to collect a little money from the wise bread-drinking masters of the market and put it on their payroll. If they put $2.5 thousand monthly and some bonuses on them, they would be just as sweet as that. For stability. And I’ll upload them with the work. Intelligent people and easy to control. It’s the only way to build a brand and repair co-hackers. And Rabbi and Jamshod, who have the potential to kill themselves with a foam spray can, Would work too – but only in assistant tasks.
How to open from scratch, examples, and a prepared plan with calculations for beginners
They decided to open their own business, but can’t decide what exactly they want to do. At the same time, is the business bound to just be profitable? Then focus on the scope of construction services. Construction business will surely meet all the needs of your business.
. From where to start the inauguration of a construction company. . What will the money be invested. . Recruiting staff for a construction company. . Looking for clients for a construction company.
Plus, he pays very quickly, returns all the money invested in the initial stage, and then starts bringing in steady income. How to open a business? What is the need for this? We’re going to talk about this.
From where to start the inauguration of a construction company?
First of all, it is necessary to register a construction company according to the laws. To do so, you will have to contact the tax authority, where the company will be registered. You will also need to select the legal form of the future company. It can be either IP or LLC.
The choice depends on the size of the business, i.e. what type of construction (small or large) would be preferred.
After that, you need to buy a stamp and forms that must be notarized, pay state duty, and only after that you can open a bank account and transfer the authorized capital amount.
The next phase of the organization which features a construction company is the self-regulatory organization of the construction workers. In short – SRO. For admission, you must submit a standard package of documents. This is a full portfolio of partial documents, a statement and if there are any building certificates, they are also attached. On average, it takes a month to review an application.
IMPORTANT:
If the company is unable to become a member of the SRO for some reason, it will be allowed to perform cosmetic repairs or painting and decorating. After joining the SRO, the company is bound to pay some amount for a special compensation contribution. In case anything goes wrong during the construction work, the insurance will be paid from the same funds. Furthermore, there are many extra payments, and money Depends on the area where the company is registered.
What will the money be invested for?
1. If we talk about used objects, this is it: 2. Procurement of all construction equipment; 3. Purchasing of construction equipment; 4. Payment for advertising services, transportation expenses, tax payment; Payment of office rent
You can reduce those costs by refusing to buy equipment. It can also be rented. As a rule, the entire plan is to pay for 1 year. Quite a large amount of money goes to PR companies. A good solution is to create an internet resource where you can compile a complete list of services provided by the company. This is an important advertising step in the process of establishing a business.
Recruiting staff for a construction company
If we talk about opening your own construction company, which brings in real income even in the early stages, you have to take care of the company staff. Employees must be highly educated and, ideally, already in the construction business Must have experience. It is a good team that builds company reputation, high productivity, and profitability.
The employee roster depends on the direction of the company, but usually this:
. Manager of procurement; . Designe . Architect . Accountant . Staff Officer . Team Leader . Lawyer
When building a team of workers, keep in mind that to obtain the necessary licensing, half of the staff must have the proper education.
Looking for clients for a construction company
How to make money on construction? This is impossible without a group of regular customers, and the arrival of new ones. Successful implementation of the work will help to enhance the company’s capabilities and grow to the next level.
How much do company owners earn in construction?
How much do they earn on construction, this article will be useful for those who decide to become construction workers. Let’s take a survey, tell us about your area, how much they earn on construction sites, and what’s your average salary, And write in comments. I will tell you about my experience how much and where I earned in construction.
My work in construction
My whole work is related to biography construction. He started working as a carpenter, plasterer, roofer, and concrete worker. Before the army he entered the institute as a civil engineer in the correspondence department, as I worked What, you can read here. He continued his education after serving in the Army.
For six years I worked and studied, after getting a diploma, I didn’t immediately become an engineering and technical worker.
He worked as a worker, and a team leader in a small organization specializing in polymer coatings. He worked for the payroll, so it would be more accurate to name the article what construction workers are salaries, and not how much construction workers earn Most construction workers are looking for a salaried job, I was also not excluded.
The geography of my work in construction is Gobkan Belgorod region, Moscow, Balakova, Saratov region, Tobolsk, Tola, and Samara. I was employed in local construction firms in Gubkan and Balakovo, I am locally Wanted to work but didn’t want to go on business trips, but I didn’t manage minimum wage.
How much do construction workers earn, my salary?
Salaries vary, but the difference between regions is not that much. This spring, I sought work as a foreman in Balakowo and called all local construction organizations. He got a job at a company where he compared otto to hers Promised a very high salary.
What I didn’t understand while looking for a job in Balakowo, was why the salary level is the same, as if the leaders agree.
In interviews, he promised to give a paycheck of 15,000 to 20,000 rubles, 15,000 white, plus a bonus of a fixed salary and it did not turn out to be more than 20,000 somewhere he promised 25,000 rubles, but that’s with business trips, it’s a day I think 200 rubles.
On the question of why so small salaries, some leaders said they officially have everything, they pay taxes and their salaries are stable. In winter, when construction workers have very little work, they earn less than 10,000 rubles and Get paid or dissolved on unpaid leave.
In an organization, the salaries of the workers were higher than the foreman, but not more than 3-5 thousand. In this construction company, they promised me a monthly salary of 40,000 rubles. After interviewing companies that promised to pay up to 20,000, I thought I was lucky. After working for two months and getting a salary of fewer than 20,000 rubles, I realized I was cheated.
I wrote my resignation letter. The manager asked what’s the reason. I answered that they promised to pay less than 40,000 to 20,000 rubles. And how to understand that. I was told that I didn’t take them for an interview on how they collect salaries. Their pay depends on the volume of work, and 30% of that volume goes to pay labor, but you didn’t have much work on site.
But I had no interest in working more and waiting for when I would be paid 40,000 rubles from the volume of work I did. I was gathered to build a stadium, but I again worked on the occasion, and on business trips, I did not succeed.
The same picture in Gobakan, Belgorod Oblast, the average salary of construction workers, is less than in Balakovo, 10 000 – 15 000 rubles. How much do construction workers of Gobakan city earn, I know because relatives work in construction companies. To receive 20,000 per month, they must work seven days a week and be at work.
How much do construction workers in Moscow earn from 47,000 to 150,000 rubles, according to job.ru Is a large margin correct? On average, on the same site, they report it’s worth finding a job with a salary of 48,000, it seems true.
In the capital, the earning picture is completely different, there are lots to choose from. How do arrange an interview, if they don’t throw it away they will pay you that much, but you will know about it when you are 1-2 The months will work.
Tip:
What you need to know about construction to get a salary of more than 50,000 rubles, and how to find a job in a high-paying company, I told you myself.
In Moscow, I arrange interviews for higher salaries of at least 50,000 rubles, but often I offer white for about 13,000, and the rest is in hand.
Last year, he worked in Vorons, as a foreman on the concrete floor, the official was 11,000 rubles, not the official 40,000 at hand. Currently, I work in a Moscow company, where the official salary is 75,000 rubles. More black pay is good, but the risk of not getting it. I had several cases when they didn’t pay me that amount.
This year, worked for 3.5 months in a company in Moscow with an official salary of 11,500 rubles. And not officially 65,000.
The result was counted as white play with me, but for an unofficial, he said the whole company earned nothing in debt, and we will not pay. Nothing can be done like this.
How much they earn in construction, the picture is clear from my history. I always wondered why the value of work on construction sites in the regions is so low, why in Moscow you can find a job with reasonable salaries, and you never find it in the regions Ga. I asked the leaders of the organizations in conversation, and they answered differently, some said there are federal and regional rates. In federal, labor prices are higher than regional prices. Therefore, they earn more in Moscow. Another opinion is that the Market relationship now depends on salaries because of the agreement between the customer and contractor.
Note:
If I worked with at least a lot of Estimators I would answer these questions. Meanwhile, as I understand the situation, businesses are more in areas. The dead are replaced by others who are worth a penny. Rewards are willing to sell their hard work, no one wants to work away from home. Why should managers think of a hike in salaries if there is no staff shortage?
But it’s all rental income, to make minimum wage in construction, you have to build your own business (which I’ve been dreaming of all my life and never grew in that direction).
How much do developers earn?
Financial and Construction Corporation president “leader” Vladimir Vorvinian on the myth of the construction business’s “superb” profits:
People have been riding bikes for many years and developers have a fantastic income, that they put 2-3 of its price in every pocket of the square meter sold. Someone also gives the specific number. For example, the price of one meter is 1.5 thousand.
The dollar and we sell for nothing less than $4.5-5k. Where these figures come from, that “analysts” invented them, I don’t know. But I can assume that these very called “experts” take the cost of construction and installation works (SMR) as a basis, completely forgetting the concept of cost of investment.
If we talk about the cost of construction and installation work, it is equivalent to at least 1.5 thousand dollars. Moreover, construction and installation work does not depend much on Moscow and Moscow region Where to build. For economic class today it’s about 32 thousand rubles per meter. In “business” – about 40 thousand rubles. But hard to say elite housing.
There, construction costs can be of absolutely any size. For example, no one forbids covering the walls with gold. But seriously, the average today is somewhere 75-90 thousand rubles per square meter. It is worth mentioning here that it is exactly in line with the current price order. A small change in the price of concrete and help is enough, and all these average prices will change in an instant.
As far as the cost of investment is concerned, everything is more complicated. If they asked me a year and a half ago, I could have answered that question. Today, the value of an investment can be measured. Just because today in Moscow Nothing is being made, this is not the city to cite any statistics for.
So, we’ll do without details, I’ll just outline what the investment cost was. First of all, this island. Cost per sqm, the cost of acquiring a plot of land is 700-1000 dollars depending on location. Second, construction and installation work. This is another plus 1-1.5k. Dollar, depending on the class. Next, remember the debt. This is usually a separate issue. I see different companies with loans of 10-15-20 billion rubles.
With that much money, even if you sell a house a month for 500-600 million rubles, even if it is a billion, you will pay 200-300 million per month only on interest. If we summarize these 3 ingredients, it is already 1.5 Came out significantly more than the cost of a thousand.
IMPORTANT:
The dollar, the analysts talk about. And again I repeat, this was the order almost a year ago. Today it is impossible to calculate the cost of investment, simply because there is nothing to consider. This is exactly why it’s hard to talk about construction business profits. If we’re talking suburbs, 15-20% – that’s already great. Not talking about any 2-3 “ends”. Exactly, you can build for 1.5k.
Dollar per meter but it would be a new building in a bare field in the Moscow area, and even then, provided the network let local or federal authorities down. But for 4.5k.
Any dollar will sell, prices like this buyers just don’t understand.
I can quote my residential complex “money” for example. We were very lucky with that. We were built in a crisis when the cost of both materials and labor was much lower than it is now. As a result, we Earned an investment cost of 90-100 thousand rubles per meter.
At the same time, during the crisis, we didn’t sell much. I can’t say that it’s exactly straight at zero, but with minimum profit. Now that the complex is completed and almost all the apartments have already been sold, we sell the remaining meters there for 250-300 thousand rubles. It’s just 2-3 puts out the “end”. But if you count the total in the whole house the picture would be different.
And finally, about the real thing, what every potential real estate buyer thinks. How to make the home affordable? I have a definite answer to the question: You don’t have to do anything special, the market will regulate everything itself. There was no demand during the crisis, but there was a large volume of supply – prices were down. Nothing is being made now, nor is there any offer, but buyers have sprung. Naturally, prices are rising.
Tip:
For prices to be cheaper, you don’t need to interfere with developers to make more. That’s the whole secret.
How much can you earn on an apartment renovation?
There are several levels to a residential area renovation business, each of which determines its size of potential earnings.
. Services of a freelance master. Such activities usually involve finishing special tasks (plumbing, electrical). Freelance craftsmen often perform_ partial and cosmetic repairs. Since they work alone, deadlines are very long, and prices are minimal, which ultimately cost $200-300 K providing an income equal to the average salary. In this case, there is a risk that the work will not be paid and the master could be harmed. Repair alone takes a lot of time.
. Work in a team with the equal partnership. When combining multiple masters (3 to 4), profit increases due to a decrease in terms and an_ increase in the number of clients. Each partner’s earnings will exceed the average salary of $400 to $600, and The risk of underpaying work_ is low.
. Contractor Services. A small contractor company can operate on several sites simultaneously. They work as a salesperson between private_ customers and repair teams, and therefore their earnings depend on finding customers, and artisan work On the ability to control. Such a company or private business services cost up to 20% of total profit. At the same time, earnings are 20% higher than partnerships and are_ limited to $3,000 per month.
. Large construction and repair companies. Organizations have a consistent staff of highly educated employees who form several teams and_ can work together. They specialize in high-quality repairs. At the same time, work line What I do, which provides a pretty large income of $20,000 per month.
. House-building plants. Companies in this area do not work with private clients, and only follow complex orders for the decoration of newly_ built apartment buildings. Earnings in this category are the highest and amount to hundreds of thousands of dollars. In this sector, Work is_ only possible for companies with extensive experience and serious funding.
Minimum income or break-even point
When creating a business plan for an apartment renovation and determining the cost of services, it’s important to calculate the intervals – the level at which your income will start to generate profits (which will have fewer costs). First, To run a business, you must set a number of your expenses (excluding start-up capital). It consists of the following expenses:
. Employee salary (based on permanent and peace rate);
. Tax deductions (if a simple taxation scheme has been established, for example, a patent, is paid a fixed amount);
. Transportation costs (determined on average for the reporting period);
. Pay for communication (telephone, internet);
. Website restoration;
. Construction equipment;
. Office rent (if available).
The amount received must be equal to or less than the amount of income. Calculations are based on an item’s estimation. Calculate the analyzed period (e.g. one month or one year) to reach the breakaway point. For) how many items must be returned?
In this case, it is important to keep in mind the repair time of different types of objects.
So, for a one-room apartment of 40 square meters, it takes about 3 months for a high-quality renovation according to all technology standards.
Two-room apartments with 60 square meters are repaired for 4 to 5 months, and three-room apartments with 120 square meters or more are repaired for 6 months.
For example, the average cost of an existing renovation to a standard category is $100 per square meter of an apartment area. Your monthly fixed.
. expenses (to manage the business):
. Salary of 10 employees – $5,000;
. Organizational expenses (advertising, telephone) $1,000;
The variable cost of repairing an object with an area of 40 square meters is $2000.
Thus, you will have to rent at least 3 of these apartments a month, which currently have an average of 3 employees, or renovate an apartment with an area of 120 square meters. In this case, the income will be $12,000, which cost Would be equal. For a business to start making profits, you would have to renovate at least one more apartment.
Regional income difference.
The cost of services for apartment repairs and consequently the construction and repair company’s revenue depends on the area of activity. This quality also affects the wages of the worker’s brigade.
So, in major cities, prices are higher, because the demand for services is high. In the capital city, repairs can reach $40,000, while in a settlement of 500,000 residents, it’s rarely more than $6,000.
On the other hand, prices for craftsmen’s services and in the direct sectors differ. For example, the highest levels of payment for specialist services (salaries) in Smolensk.
IMPORTANT:
It’s $1,000, and the minimum in Nizhny Novgorod is $500. This affects the total amount of expenses.
The highest rates for 2017 are noted in the Nenets Autonomous Okrug and the lowest in the Leningrad region if we calculate the service price as a whole region.
Key drivers of low profits
When planning to make money on an apartment renovation, it’s very important to consider the circumstances in which your true income may be reduced. This includes:
. Wedding presence at work performance. The company or master makes all corrections during the work and repairs during the warranty_ period at his own expense, which can leave it completely without profit. Therefore, the right choice of personnel and equipment is very_ important.
. Violation of deadline. Increased repair time may be due to customer, contractor, or independent factor errors. If construction workers are_ found guilty, compensation for each day of delay is determined to be 0.5% of the total amount of the order, provided a maximum Refundable of up to 10% more. This point and matters that are not at fault with the contractor should be clarified in the agreement.
. Non-payment by customer. A similar problem often faces craftsmen and informal working companies (teams). In this case, your contract has_ no legal force and it will be impossible to demand payment of the loan through court. To avoid risk, the agreement provides for phased_ payment of services.
. Shortage of orders. Climate distress, economic instability, or ineffective advertising in demand for apartment renovation can lead to very few_ amenities that don’t reach the gap. In this case, revise the marketing plan and expand the target audience. Giving (adding repairs of_ commercial facilities) is a must.
. Nonprofit using technologies. Innovative ways of repair can reduce the time and materials used.
. Wrong choice of the tax system. Once a year, you have the right to change your tax payment scheme, this will allow you, after some practice, to choose the less expensive option.
On the topic: How to find clients for apartment renovations for beginner and experienced craftsmen.
How to increase your income.
Increasing profitability from apartment renovations is essential to adding additional functions that don’t require significant financial costs to your list of services. Here’s what happens:
. Design work for an additional fee (collection of wallpaper, home textiles selection, and decorative interiors).
. Partnership with furniture stores and specialty appliances for a percentage. You can recommend partner products to your customers.
. Purchasing of building and finishing materials at wholesale or dealer prices. If the original price of the equipment is less than the retail price (which is calculated with the client), you will profit from the construction materials. This would have reached 20% of the purchase price.
. Hiring unskilled staff with low wages. Such employees are attracted to simple ongoing tasks – scrapping and picking up trash. The salary of an_ unskilled craftsman is $150-200 per month.
. Work with apartments in a large area. The time, labor, and construction supplies for 3 one-bedroom apartments would equal more than a three-bedroom apartment in the total area. However, you can also reduce transportation costs.
Accurate statistics of how much you can earn on an apartment renovation in your chosen direction are determined based on information obtained practically. This means that maybe in the first few months, you’ll be able to Time will work at your expense until you work on the technology and develop the most effective marketing strategy.
Open Business | Construction Company, is it a profitable business?
Of course, this kind of work requires a business plan, but it’s not an important task. The most important thing is to get the proper education or at least have a good experience in construction. A business person needs to know all the intricacies of providing certain services, and only based on this knowledge he will be able to determine his company details.
This can be a very different business – one construction company could play this role:
. Architectural or design bureau. . General Contractor . Subcontractor . Construction materials supplier
To have the necessary knowledge and experience, it’s also important to have a team, because even the most qualified professionals won’t be able to do it all on their own. Employees are recruited according to the enterprise specifics, however, the construction company’s initial business plan will focus on recruiting at least 4-5 employees who will be able to provide a variety of services within the general concept of work framework.
The next step is the official registration and the actual creation of the company. Necessary:
1. Register IP or LLC (the first option is cheaper, but it stops the possibility of providing services to legal institutions and government agencies, so it’s better to choose the second one immediately). 2. Joining SRO is essential because businesses who are not SRO members cannot rely on orders (for this, a quote from USRLE, a copy of the_ certificate of enterprise registration, and its tax) Registration is verified by a notary, as with the company charter). 3. Develop a business plan for a construction company for the first year of operation – as a basis, you can take existing documents of the type_ that other companies have compiled. 4. Rent company offices to create jobs for employees (first you can save by inviting team members to stay home, except for orders)
You will also need to buy specialized equipment and tools required for the job. The number and features of these depend on the company’s specifications.
And of course, an important step will be market research and customer finding, and for a business to grow rapidly, a construction company should run a viable advertising campaign. Before organizing it, it’s important to read competitors’ work details and identify not only their strengths but also their weaknesses – if existing companies offer no services, their chances of implementation must be Should be considered. First place.
Business of building
Construction business is a lucrative type of activity for small and medium-sized enterprises. The amount invested can be withdrawn immediately, and the initial amount of investment is not too much.
But to open a construction company, you need to think through all the stages of the project in advance. How to start a construction business? What are the characteristics to consider? How much money do you need to get started? Read all about it in the article.
Specialist in selection
Competition has always been high in the construction market. Before opening your company, it’s important to decide on the direction of the business. Experts identify several popular construction sectors:
. private ( private ) ;
. Road;
. Industrial;
. Area overhauls and interior decoration for various purposes.
A large construction company will require a serious financial investment. As a rule, a novice entrepreneur doesn’t have much money.
If have little money, the construction business should start with minor repairs and furnishings, and gradually expand the scope of activities. That is, choosing the fourth direction is reasonable. The average construction company payout allows us to expect that the investment will pay off in about a year and a half.
After selecting a construction site, you need to consider the potential range of services. In the case of managing a small construction company to renovate the premises, the estimated list of services looks like this:
. Finishing up work;
. Roof structure installation and installation;
. Plumbing, doors, ventilation, and air conditioning installation;
. Electricity installation work;
. Finishing up
. painting, wallpaper, primer, wallpaper;
. Welding, aware work.
. Furniture assembly.
How to open a construction company from scratch step by step.
After deciding which construction sector the company will deal with, the entrepreneur creates a detailed business plan.
Here are the next steps to starting a construction company from scratch:
. Registration of the company;
. Looking for premises;
. Formation of the State;
. Obtaining a license (if needed);
. Shopping for goods;
. Advertising Campaign.
Some activities will require entry into a self-regulatory organization (SRO). For example:
. Construction of buildings of more than 3 floors;
. Construction of facilities more than 15 meters underground;
. Installation of reinforced concrete and metal structures;
. Instrument of industrial facilities and gas (oil) industry;
. Repairing the investment of railway;
. Construction of metro, roads, and tunnels;
. The building of bridges.
The activities of SROs, as a result, are organized by legislative processes such as:
. Federal Law No. 190 (Civil Planning Code of the Russian Federation);
. Federal Law No. 315 (On Self-Regulating Organizations):
. Federal Law No. 384 (Technical Regulations for the Protection of Buildings and Structures);
. Federal Law No. 384 (On Technical Code)
Organizational and legal foundations of the construction business.
In the construction industry, LLC or IE is often registered. IP design is suitable for a startup company.
Opening an LLC is profitable for those who intend to move from small and medium construction businesses to large businesses. Additional permits will be required for this type of activity. They can only be obtained with a legal entity.
In the process of registration of the company in the tax office, the following OKVED codes are identified:
Digital code name of work
45.45 finishing and other finishing work
45.43 floor, climbing the wall
45.31 electrical installation
45.25.5 stone
45.32 consistency
45.42 Joiner
45.44 painting, glass
45.33 plumbing
The taxation system of a company largely depends on the type of services provided. According to OKUN (All-Russian Classification of Services for the Population), premises repair means domestic services.
So, a trader can use such a system of taxation either as “easy” (USN) or “imputed” (UTII). The first system is suitable for companies that make repairs on commercial spaces and have contracts with a legal entity. The second of these people For those who work with individuals.
In addition to the central package of documents, a contact form, a stamp, a pricelist for services, and a bank account are required.
Choosing a room and buying stuff
Most work is done directly at the facility, so the company’s location is not as important as with other activities. For a medium-sized construction company, renting a small office in any area of the city is sufficient.
There you can negotiate with clients, and sign service agreements. Documents are safe in the same room. A small construction crew can do anything without an office. But for a leading firm in the construction business, an office is essential.
Otherwise, you just wouldn’t be taken seriously.
The number and type of equipment for the construction team depend on the type of work.
Below is a list of important tools needed to finish off a room.
. Paint rollers, brushes, postage;
. Containers for compound construction;
. Those who do holes
. Screwdriver
. spatula
. Stationery Knife;
. Roulette’s
. Coastal chapter;
. A cutter that does abrasion;
. Bulgarian;
. Electric jigsaw, planer.
Every team should be provided with a complete set of equipment to repair any complex premises. Apart from tools, uniforms, office furniture, a computer, a printer, and other office supplies are purchased.
Crew for the construction team
The construction business is riddled with serious productivity hazards, so you must devote your attention and time to thorough staff selection.
First of all, it is better to create two teams that will work on different sites. It is recommended to include professionals in the team identified in the Unified Tariff & Qualification Handbook of Jobs and Professionals of Workers (ETKS, Section “Construction, Installation, Repair, And the third issue of construction work”) is done.
The best structure of the team:
. Foreman
. Plasterer Painter;
. Installer
. Tyler
. In front of us
. Electrician;
. The locksmith.
The salary of employees of a construction company is the peace rate, i.e. it is calculated based on the total amount of the order paid. If a businessman works as a team leader, he gets 50 to 60%, and the rest – 25 to 45%. Gets. In another case, salary is distributed as follows: Company owner – 60%, team leader – 20%, and remaining employees – 20%.
Advertising of construction business.
To promote the services of a small construction team an advertising campaign has its features. The most effective way for a small company – posting advertisements and word of mouth. Service announcements are printed on bright paper and are new buildings The ones are divided into areas.
Advertising on the Internet and in newspapers is a good option to grab the attention of potential customers. Building a firm website is entrusted to the best professionals. The key principle of advertising the team on the internet is data related to types of services, discounts, and cost of work. Will have to be updated regularly.
A more expensive option is to advertise on television and radio. In that case, individual businesses or newly opened LLCs should be very careful about cost, as there may be no return on the investment.
How much does it cost to open a construction company?
It is difficult to estimate the initial cost of the project. It depends on many factors, such as the number of employees, the price of purchased equipment, and the legal form chosen by the construction company. On average, 350 to 600 thousand rubles to build a small enterprise in the construction industry Will be needed to have.
The estimated calculation to start:
Expense item Cost in rubles
Lc registration 15,000
Space for rent 10,000
Equipment (equipment) 80,000
Advertising Campaign 40,000
Expendable material 12000
Utilities 4000
PHOTO (Including Personal Income Tax) 140,000
Employee premium 11200
Pension Fund participation 30800
Services of outsourcing employees 9000
Emergency * (20%) 70400
Total: 422400
* Unexpected Expenses – Cash required to purchase additional equipment during repairs.
Potential risks
In the preparation stage of a construction business, it is important to calculate potential risks and take steps to prevent them. External risks are associated with a decrease in domestic income, increased competitiveness, and unfair customer behavior toward their responsibilities. Such risks according to experts. The probability changes every year.
The internal risks include:
. Shortage of staff;
. The incompetence of workers;
. Failure of equipment;
. Work performed under the contract is not on time.
Avoiding such situations will lead to regular oversight of the company’s operations, the ability to attract additional funds, and an accurate analysis of the construction industry market.
