Are you about writing a construction business plan? If YES, here is a sample SWOT analysis for a construction company to help you form a competitive strategy.
Construction Business Plan – Economic Analysis
Starting a construction company is not like starting a mom and pop business in a street corner in down town LA; it is indeed a serious business hence critical economic analysis must be conducted to ensure that the risks and other threats associated with starting a business or investing in a business a mitigated.
If you are considering starting a construction company, you concern should not be restricted to acquiring an office facility and equipping the facility or hiring the best hands in the industry, you should also be concerned on how to attract investors who can pull the needed cash to successfully execute projects, and also how to give shareholders / partners good returns for their monies.
Lastly, it is important to mention that heavy duty construction equipment and machines can be expensive and one good thing about construction equipment and machines is that it can be rented. But you must ensure that you have done you detailed economic analysis so as know whether renting or out rightly purchasing your own construction equipment and machines will benefit you in the short run or in the long run.
A Sample Construction Business Plan SWOT Analysis
Surviving in the business world as a construction company requires more than knowing how to deliver standard projects but also how to network with key people that matter; decision makers that can decide who a project is given to and all that. We know that it will be a bit difficult to compete with already established construction companies in the united states especially because we are new in the industry.
In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of a Dr. Joe Whyte, a renowned HR and business consultants in the United States of America to help us run a SWOT analysis.
It is important that we know our strength, our weaknesses, and the opportunities that we can leverage on in the industry and the threats that we are likely going to be confronted with. With that, we will be able to map out strategies that will not only help us to survive in the industry but also to build a global construction brand. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Shannon Berg Construction Company;
- Strength:
Shannon Berg Construction Company can confidently boast of having a competent and highly experienced management team who are regarded as some of the best hands in Michigan.
Although we are a new construction company, but our president and board of trustee are respectable people in the United States of America who have served the US government in various capacity; we are a construction company that has the right network that is suitable for the kind of business we are into.
- Weakness:
Well the fact that we are a new construction company could count as a weakness. It is normal for clients to think twice before awarding construction contracts to newbies in the industry. Another weakness that can count against us in the industry is the fact that we may not have the financial muscles to drive the business the way we ought to drive it. We require huge financial base to be able to acquire some of the latest heavy duty construction equipment.
- Opportunities:
Our business concept, our mission and vision puts us at an advantage in the industry. We will start small to build trust within Grand Rapids, Michigan and there are loads of opportunities for us there simply because we are well positioned to work with both the state government and the highly organized private sector.
- Threat:
Generally in the construction industry, both the already established construction companies and start – up construction companies are subject to threat from government policies, global economic downturn and unforeseen natural disasters (disasters that may cause setback).
These are the threats that we are likely going to face as a newbie construction company in Grand Rapids, Michigan. Another threat that we are likely going to face is the arrival of a big construction company in the location where our business has strong presence.