Own business: how much does a construction company earn?
Consider how much a small construction company that repairs residential and non-residential premises can earn.
Researched object: construction company
Specialization: repair of residential and non-residential premises; lower and middle price segments.
- Personnel: owner - CEO; assistant; secretary in the office.
- Office - 16 sq. m. Rent - 21 000 rubles per month.
- Scope of work: delivery of 3-4 objects per month.
- Annual turnover: about 7 million rubles.
- Owner’s monthly income: 60–90 thousand rubles.
For a client, repair is a stress that he orders for himself for his own money. If you manage to minimize stress for the client, he will remember you and even recommend it to his friends.
Many entrepreneurs start this business with the position of construction superintendent of construction crews. Gained experience, word of mouth earned, got a steady stream of customers - and you can already do a normal company: rent a small office, put a secretary, advertise on the Internet and the regional newspaper. It immediately becomes easier with orders, because clients have more confidence in a "settled" company.
One difficult question remains - licenses. With licenses, it’s generally not clear what’s going on. Lawyers say: we need a license "for the construction of buildings and structures with a second level of responsibility in accordance with the state standard." The Federal Agency for Construction and Housing and Public Utilities issues such. But where does the construction of structures? If the company is going to just plaster, paint, screed the floors to do, lay the laminate, change the plumbing and all that. Nevertheless, the classifier says in black and white: "finishing work" and "the device of internal engineering systems." Excuse me to pay 100 thousand rubles for the licensing services for these construction works, and everything will be in the best possible way! In our country, it turns out, even the installer of steel doors must have a license to carry out the construction of buildings!
But the prevailing practice is such that if you are not working with new buildings, but you are not dealing with “secondary buildings” and re-planning, you can do it without a license. In addition, building licenses seem to have been canceled a few years ago, but the licensing regime has only since been doing so and is being extended. If it is not renewed again, then from the new year licenses will not be needed.
However, let's go directly to the calculation of revenue.
3-4 objects are rented per month. Basically, this is a cosmetic renovation of apartments, that is, two and a half months of work at each object. There are always 7-8 apartments in operation, which makes you feel good. Revenues of approximately 620 thousand rubles. This is only for work, materials do not count. About 70% of this goes to hard workers, the rest goes to the company.
186 thousand rubles are obtained. There are relatively few other expenses. Office rental, advertising, salary of a secretary, assistant, visiting accountant. Something about a hundred thousand runs over.
Total net profit of 86 thousand rubles per month!
But this is the season - the rest of the time the situation is worse - to increase revenue, many construction companies are switching to repair and decoration of small offices.
The main problem of this business is that one person is not able to fully control repairs at more than four sites
Therefore, some owners of construction companies come to the following scheme of work: collect non-drinkers with golden hands and put them on a paycheck. If they put two and a half thousand dollars a month plus some bonus, they will go for the same stability. The main thing is to upload work .. But sensible people are easier to control. This is the only way to build a brand for repair.
Repair market in numbers
- 34% of the capital's apartment repair market is controlled by legal participants - construction companies; 66% are private builders and spontaneous brigades.
- 5 thousand - so many legal construction companies work in the Moscow market.
15–20% was the growth of the market of repair services in 2007.
- Over 60 thousand new unfinished apartments were built last year; the number of apartments being repaired on the secondary is not accountable.
- Price segmentation of the market of repair and finishing services (dollars per sq. M): lower segment (up to 150), mid-price (150–250), high-price (250–1000), elite (from 1000).
- Muscovites spend an average of $ 10, 000 on apartment repairs.
According to Step by Step, IRN and market participants
Based on an article by Dmitry Denisov
published in the journal "Business Journal" No. 21-22 of November 10, 2008
* The article is more than 8 years old. May contain outdated data