Currently, there has been a downward trend in the number of purchased apartments in multi-storey buildings. At the same time, the popularity of private houses has increased. Small cottages, which can be attributed to the economy class, are in greatest demand. The price for them is within two hundred thousand dollars.
Today, many people prefer not to buy finished houses. They acquire a plot of land and place an order with construction companies for the construction of a cottage that would satisfy the tastes of future owners. In this regard, the construction of houses as a business is a very popular idea.
Is this a profitable business?
A small construction business, however, like a large one, is very profitable from the point of view of making a profit. Sometimes there are times when the recoil has to wait a while. Such situations arise in the case of unfinished construction.
However, as a result, all financial investments will pay off and increase significantly. The profitability of this business is in the range of fifty to seventy percent. And this is a great result. In other words, the construction business can be easier said: profitable, profitable and cost-effective.
Possible problems
First of all, you need to correlate your capabilities and desires. The construction business will require significant upfront investments. Before you start your own business, you will need to draw up a business plan. The construction of cottages is especially beneficial in the construction of villages. In this case, significantly reduced costs per square meter of housing. But it is worth bearing in mind that this will require significant investments, in particular, for the acquisition of a large land plot.
Having started your business, you should not even try to immediately conquer a large part of the market. It follows from one step to another.
The problem of selecting non-professional personnel is also relevant for construction organizations. It is important that there are no such employees on the staff who will try to take out the materials or agree to “dabble” somewhere on the side.
Careful attitude to the selection of suppliers, business partners, as well as investors will help to avoid all kinds of pitfalls. A lot will depend on your business instinct and grasp.
The first steps
From you, first of all, you will need to draw up a business plan. The construction of cottages in this document should be considered from the point of view of those investments that you are ready to make in your own business. In the event that significant financial investments are provided, it is worth opening your own construction company. At the first stage, it will be expensive, but it will definitely pay off over time.
The construction of cottages can also consider your business plan from the point of view of investment. In this case, third-party companies are involved. However, it should be borne in mind that the profitability of the case will be somewhat lower.
Many other questions should also reflect your pre-compiled business plan. The construction of cottages begins only after studying the demand for suburban real estate, average prices in the market. All construction costs must be calculated that take into account the risks. The key factor at this stage is the location of the land, because the laying of utilities significantly increases the necessary costs.
The costs of landscape design should be taken into account, because the final well-being of the territory has a great influence on final prices and consumer demand.
It is worth saying that the competition in the construction market is great. However, you should not be afraid of it. Just like competition, demand is growing. But in general, investing in the construction of cottages is the most profitable form of investing money.
Company registration
There are certain steps without which your own business cannot start. First of all, you will need to register with the tax authority as an LLC or individual entrepreneur. The form of organization depends on the scale of the planned business. Companies will need their forms and seals registered in a notary's office. In addition, do not forget to pay the state fee.
After all these procedures, an account is opened in the bank to transfer the authorized capital of the newly created organization.
A prerequisite for the construction company is the entry into the SRO. This is a self-regulatory organization, membership in which is legally necessary. Otherwise, the company can only perform finishing work or redecorate.
The construction of low buildings
The construction industry does not stand still. New advanced technologies are constantly appearing. Thanks to them, there has recently been a significant reduction in the cost of building low buildings. The construction of the cottage can take from three to six months. That is why such a direction as low-rise construction has good prospects.
The business plan of your own business should include a list of materials that will be used by the company. Classic concrete and brick are expensive. These materials significantly increase the cost of housing construction, which is why prices for finished houses are rising.
An alternative option should also consider a business plan. The construction of wooden houses allows not only to reduce the cost of housing, but also to make the cottage price affordable. This will attract potential buyers.
Cost reduction
In the event that the use of materials such as light concrete and wood provides a business plan, the construction of cottages becomes cheaper. Developers in this case invest in the construction of housing, having an area of one hundred square meters, from twenty-five to twenty-seven thousand dollars.
It is worth saying that in a similar brick cottage one square meter costs at least four hundred dollars. In the future, new materials may appear for the construction of low buildings, which also reduce the costs of the builder.
Necessary tools and special equipment
Equipment for the construction business is used during installation and general construction works. Special equipment and tools can be acquired at the expense of initial investments or leased. It should be said that you can rent almost everything, from an excavator to a drill.
The business plan of the construction company must certainly include a paragraph that lists the most profitable equipment for work. At the same time, the list of own necessary equipment can be minimal. A preliminary calculation clearly shows that it is unprofitable to purchase an excavator if it is needed only once a year. The business plan should only stipulate the purchase of equipment that is constantly in demand.
So, to perform specialized work, you will need a truck, which will transport building materials to the object, and the following tool:
- jigsaws;
- screwdrivers;
- laser levels;
- punchers;
- hammers;
- drills;
- tool kits, etc.
Calculation of financial investments
When drawing up a business plan, you will need to calculate all the costs necessary to open a business.It should be borne in mind that the construction business will require significant investment. Approximate investments in such a case:
- for the purchase of a construction tool - 1 000 000 rubles;
- for the purchase of special equipment - 10,000,000 rubles;
- for transportation costs and advertising - 220,000 rubles;
- to pay rent for premises and office - 300 000 rubles.
Costs will decrease slightly if special equipment is leased. However, do not be afraid of these numbers. As a rule, the expenses incurred are paid off during the maximum of a year.
Self-construction of a cottage
Should I start building a house with my own hands? There are pros and cons to this issue. A positive point is the saving of money. However, the construction will be very problematic if you do not have experience and not enough free time.
In addition, there is a risk of error when buying materials, and when building a house. Only if professionals deal with the matter, upon completion of construction the owner will receive a guarantee. Upon the occurrence of a warranty case, money for repairs will be saved.
