Are you planning a new business in the new future or developing an existing one? Do you need a construction investment business plan for a bank, for a private investor or for your own purposes? If so, read my article on what such a document should contain, why it is created and how you can get a business plan tailored to your needs without many hours of work on your own.
You can draw up such a business plan on your own. On our blog you will find numerous tips on how to do it. If you have a lot of time and care about reducing costs to zero - this can be a good solution. On the other hand, in case you care about time and high level of business plan - get back to us. We even create several development business plans per month (with 100% success), so we will be happy to help your company as well.
A business plan for a development project is a comprehensive document describing all aspects of a planned development project. Its main purpose is to present to potential investors, business partners and financial institutions how the planned project will be implemented, what the costs will be, what financial benefits can be achieved and what the risks associated with the project are.
The development business plan should include information such as:
A description of the development project with numerous elements to be considered including location, type of property, size, site plan, architectural and technical design, work schedule, owner's experience, legal form (e.g., what kind of company), organizational structure.
A description of the competition in the region with a focus on the strengths and advantages of your investment in the local market.
Market analysis, including analysis of competition, local market demand and forecasts of changes in the market (industry). The company does not operate in a vacuum, so it is worth referring to the legal environment as well. Below you can see a short excerpt from a professional market analysis.
Marketing and sales plan to be implemented, including planned marketing activities, sales strategy, people responsible for its implementation. It is important to identify ways in which the company's advertising will differentiate itself from the competition and attract customers.
Financial plan, including investment cost estimate, revenue and cost projections, loan repayment schedule, profit and loss account plan and profitability ratios. Financial projections should clearly indicate when the planned investment will pay off and at what level. Below you will see an example of a simple cash flow statement for a construction investment.
SWOT analysis of strengths, weaknesses, opportunities and threats. Distinguishes and shows how a factor affects or may affect the planned activity.
It is also worth including a summary or so-called executive summary in the document.
On our blog you will find more in-depth information about the structure of business plans and the various elements. If you want to deepen your knowledge in this area - I invite you to read other articles as well.
A developer's business plan is a key document for increasing the chances of attracting investors and business partners, as well as serving as a control and management tool for the developer during project implementation.
A development business plan is an important tool that is used to plan, manage and evaluate development projects. Here are some sample reasons why you should create a development business plan:
Financial Planning:
The development business plan allows you to accurately estimate the cost of the project and plan the budget for each phase of its implementation. This avoids problems related to lack of funds at later stages of the project.
Acquiring investors:
A development business plan is a tool for attracting investors or business partners. The document presents the project in a convincing manner and allows for an accurate presentation of the project's potential.
Project Management:
The development business plan also serves as a control and management tool for the developer during project implementation. It allows monitoring progress and evaluating the effectiveness of activities.
Risk minimization:
The development business plan includes an analysis of risks and ways to minimize them. This allows to minimize the risks associated with the project.
Raising prestige:
Preparing a comprehensive and reliable development business plan can increase the prestige of the developer in the eyes of investors, customers and business partners.
The conclusion is that the developer's business plan is an important tool to accurately plan the project, attract investors and manage the project. The document also makes it possible to minimize risks and, in certain circumstances, even raise the prestige of the developer.
It all depends on how high level you need the materials.
The bank or more broadly all Polish banks as of 2023 require a document about 20-40 pages long with professional financial projections in excel. You won't be able to do them on your own unless you are a financial analyst - it's not enough to enter what the income and expenses will be. An accountant probably won't be able to do it either.
Different audiences may have different expectations in terms of form and content. Therefore, before approaching the creation of a business plan, it is a good idea to establish these criteria.
Preparing a professional business plan for experienced professionals is usually 1-2 weeks. I advise against hiring your own employees for this task if they have not created business plans in the past.
The business plan of your investment can also be 100-200 pages long. There is no limitation here. It all depends on your needs and workload. For example, a market analysis can be prepared at a level of detail of 2-3 pages, but it can just as well be as long as dozens of pages. This type of level of detail usually applies to larger assignments carried out by specialized business consultants (consulting firms). For an investment in the form of a single house or a small estate, a more general study is usually sufficient.
The process of creating a business plan by an external company (such as Well Done Business) is relatively simple. It is divided into stages described in detail below.
This is the first stage of cooperation. Get back to us by email or phone, describe your project and needs. You will receive a quick response with a quote, a template for a simple contract and a questionnaire to complete. The contract has one page and we conclude it on scans (remotely). You do not need to come to the office. We work remotely with clients from all over Poland and even abroad.
In the second step, you send us back by email a completed questionnaire about your project. We need to know its location, business assumptions, get to know your company better. This is something we won't figure out or find on our own. Once the contract is concluded, you pay for the assignment. You have a satisfaction guarantee - if you make any comments on the content, we will make corrections free of charge and quickly. In practice, such a scenario happens no more than once in twenty cases. Check numerous reviews and testimonials about us.
Aha - at this point you are probably wondering "well, but how much does it cost?". I'm already rushing to answer. Well, a classic development business plan, accepted by 90% Polish banks is a net cost of PLN 6,000 as of today. The price is not independent of whether your investment is a million zlotys or ten million zlotys. It can only increase in the case of a more complicated project, because it means more work for us than usual. By more complicated, I mean more complex projects than building a couple of semi-detached or 10 row houses.
During the work, we stay in contact with you or your designated company representative. This is not involved. We may call you once or twice throughout the implementation period to inquire about something. All this is done to ensure that the document you receive, at 100%, meets your needs and actual business intentions.
After about ten days from the start of work, you will receive your business plan electronically (docx, pptx and xlsx files - word, power point and excel). Thus, you will have a version both ready to print or forward (pdf) and working files that you can freely edit yourself in the future. In addition, in the price we will provide you with financial projections in excel along with formulas, which is unique in the industry.
Entrepreneurs sometimes try to create a business plan on their own. This is possible, but sometimes it leads to problems. It all depends on the experience and skills of the author.
Making financial projections in excel requires financial knowledge. The average Kowalski will not do a balance sheet or income statement on his own. On the other hand, conducting a professional analysis of the market, SWOT or competition, is the domain of business analysts. For this reason, individuals most often turn to professionals for support. This guarantees high quality and quick completion of the process. Among the contractors of business plans are primarily consulting firms. Both large consulting firms (Boston Consulting Group, McKinsey, Bain) and smaller boutique firms such as ours - Well Done Business. Entrepreneurs other than large multinational corporations are choosing these smaller firms. This is primarily influenced by price and speed of implementation. The services of large consulting firms are often calculated in hundreds of thousands of... Euros.
In our case, it takes up to 14 days to develop a standard business plan (30-40 pages). We work with the construction and development industry on a daily basis. This is statistically the largest group of our clients. We have done dozens of business plans for this type of business. Both for smaller construction developers and companies building multi-family estates or hotels.
The Internet is, of course, full of free business plan examples, including for construction companies. I would caution against using such templates. This is important, because most often they are "ready-made" sold for a few tens of zlotys, the usefulness of which is negligible. A professional business plan should be written in terms of an individual (unique) project for a specific company. Remember that the quality of your business plan testifies to your business just like a business card.
This article presents the important aspects of preparing and presenting a business plan for a construction project. It discusses key elements that should be included in a business plan, such as a description of the construction project, market analysis, marketing plan, financial plan and risk analysis.
What needs to be emphasized is that the business plan of a construction project is not only a tool to attract investors, but also serves as a control and management tool for the developer already in the course of the project.
Performing a detailed risk analysis, or competitive analysis, reduces the commercial risks associated with a construction project.
The conclusion is that the business plan for a construction project is a key document that should be prepared with great care and consideration of all aspects related to the construction project, in order to increase the chances of its success and minimize the risks associated with the implementation of the construction project. It is of value both to the entrepreneur himself and useful to external investors (including banks) to evaluate the project.
A construction project business plan is a document describing a construction project in a comprehensive and detailed manner, taking into account financial, marketing, technical and organizational aspects.
The business plan for a construction project should include a description of the project, a market analysis, a competitive analysis, a marketing plan, a financial plan. All these elements should be developed in detail and presented in a clear and convincing manner.
The business plan for a construction project is important because it allows an accurate assessment of the opportunities and risks associated with a construction project. It is also a tool for attracting investors and serving as a control and management tool for the developer.
Preparing a business plan for a construction investment requires a thorough analysis of the market, knowledge of the technical and organizational aspects of the project, and financial skills. Risk analysis and ways to minimize risks should also be included. If you do not have experience in preparing business plans, it is advisable to get help from a specialist.
The business plan for a construction project can be prepared by a developer or investor, or by a specialist in the financial or consulting industry. In any case, it is important that the document be based on reliable data and take into account all aspects of the construction project.
