Construction Business Environment 283
pany description should also indicate the structure of the company (sole proprietorship, partnership,
corporation, etc.).
Management.
Even if you are a one-person operation, a key ingredient of your potential business success is the
strength of your management skills. When the business consists of more than one person, the busi-
ness plan should identify the people who will be active in this business and include a short biography
of principals and senior personnel as well as their backgrounds, positions, responsibilities, and
strengths they bring to this new venture.
Market and Services Offered.
Describe in depth the services offered, the market for your service, how you fit into that market, and
your plans for achieving your share of the market. State the factors that give your firm a competitive
advantage over others in this field. Examples may include level of quality or special skills or experience.
Outline the pricing or fee structure of the services offered. Include any photos or sales brochures in an
appendix.
The Successful Business Plan.
A business plan is basically a written document that describes the business, its objectives, its strate-
gies, its market, and its financial forecasts. Explain the type of company and services to be provided.
If this is an existing business, give its history. If it is a new business, describe the product and/or serv-
ice and note some of the qualifications to start this business. Also explain why this business is needed
and what its chance for success is. Describe any unique features that will attract customers to this
business.
An effective plan must outline the marketing strategy that is to be implemented. A business plan is
thus a useful operating tool, which, if properly used, will help manage the business and facilitate its suc-
cess. Although a business plan serves many functions from securing external funding to measuring
success within the business, its main purpose is twofold: First, it helps ensure that you have researched
and thought out the various aspects of running the business so you don’t encounter any sudden un-
pleasant surprises. Second, lenders require it, and it can help convince banks or potential investors that
your firm is worthy of receiving financial assistance. The concept here is to communicate ideas to oth-
ers while providing the basis for a financial proposal.
Setting up a business is rarely easy; statistics show that over half of all new businesses fail within
the first 10 years. The reason for such failure is often due to lack of planning and lack of funding. The
best way to enhance the chances of success is to plan and follow through on that plan.
Financial Plan.
This section of your business plan is critical. The credibility of your projections is essential to establishing
the likelihood of success or failure for your business. Investors and lenders will use the information in this
section to evaluate the financial prospects of your business. Be sure to check how many years of finan-
cial projections your lender requires—three years is the norm. State the business’ financial requirements