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In connection with the latest events taking place in Ukraine and in the whole world. The housing issue is becoming more and more urgent. How many houses should be built? How fast can you build a house? How to build houses with minimal harm to the environment and cities? More and more construction companies around the world are persistently dealing with these issues.
Yes, the construction business is a very costly and risky business. However, there are more and more people in this world every day, and less and less resources. Therefore, the construction business, especially one that worries about the future of our world, is one of the most relevant areas.
The purpose of the project: opening and maximizing the company's profits.
Key success factors:
● high markup on building materials;
● stable high demand;
● large assortment;
● available location;
● high average bill;
● high quality service.
The amount of initial investment is UAH 5,000,000
The break-even point is reached on the 6th month of operation.
The payback period is 34-36 months.
Average monthly profit of the first three years of project implementation UAH 130,000.

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Description of the business, product or service
The construction business has always been profitable, and in our time it has become even more relevant and profitable.
The scope of the organization is the demolition of old buildings, the processing of buildings for recyclable materials and the sale of the resulting product.
Location - the main office is located on the outskirts of the city. Since renting premises outside the city is several times cheaper. Sales growth does not depend on the traffic of people near the office, since our goods and services are quite specific.
The main functions of the construction and processing company include the following:
1. Demolition of old buildings after the consent of government agencies and the owner.
2. Recycling construction waste.
3. Sale of recyclables in the market of construction companies.

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According to Ukrstat, over the past 10 years, the average annual growth rate of the index of physical volume of sales of construction goods is 17.5%. This index characterizes the cumulative change in the mass of goods in the current period compared to the previous (base) period and shows how the turnover has changed as a result of changes only in its physical volume, excluding the impact of price changes. The dynamics of this indicator is presented in the table above.
These figures indicate the growth of the pharmaceutical industry over the past 10 years. For the most successful entry into this market, you need to understand your target audience, as well as develop the most effective ways to promote products.
The target audience
The most promising segment for a construction and processing company is the state, as well as established construction companies. They value their time, spend money wisely and are ready for long-term cooperation.

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A few weeks before the opening of the company, it is worth starting to engage in advertising.
Ways to attract new customers:
● advertising in social networks;
● advertising in local media, transport advertising;
● advertising on TV
When developing an advertising campaign, it is important to consider the following main nuances:
● Pay attention to branding. It is very important to choose a bright, memorable brand. It is important that the consumer is tied to the name, to the services that we provide. In addition, it is the brand that helps to inspire the trust of the buyer, develop loyalty to the store in him.
● Advertising on the Internet (advertising in social networks).
● Loyalty system. Offer all new customers a discount card, or a card on which they can accumulate bonus points. This will attract new customers and keep old ones. People are always happy if they are given a discount, even if it is 2-3%.
● Pricing policy. Always keep track of competitors' prices. You should keep them at or within ±3-5% for high-end items, and ±10% for mid-range and low-priced items.
● At the opening, it is necessary to have several completed transactions already completed, as we are heavily dependent on large orders.
● Make an open display of goods, which increases sales by 20-30%.

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The main goal of the project is to open a construction and processing company and maximize its profits.

Stage 1
Overview of the real estate market for the selection of the optimal premises.
Place search features
To open an office, we are considering premises outside the city, possibly immediately with a warehouse rental.
Office space requirements:
● The area of the room must be at least 50 square meters.
● The room must have good lighting, a ventilation system, a coffee machine, a mini-kitchen for staff, and a toilet. A warehouse with an area of at least 1000 square meters is also desirable.
The second point is a building recyclables store. It should be located somewhere near new buildings or in residential areas.
Store requirements:
● The area of the room must be at least 100 square meters.
● Be sure to have good lighting, air conditioning, ventilation system in the room.

Stage 2
Registration of a legal entity.
Organizing your own company for the demolition of old buildings, processing and production of building materials, special attention must be paid to organizational and legal issues. It is very important to have all the necessary information and work according to the law in order to avoid various fines.
● Legal form - individual entrepreneur or LLC.

● This kind of activity requires compulsory licensing. This is the hardest and longest part. It may take approximately four months to receive all notices, permits and licenses.
Obtaining a license involves:
1. requirements for reconstruction, equipment and equipment (water supply, drainage, ventilation, access areas, refrigerators, cabinets, etc.);
2. appropriate documentation, including requirements for lease (sublease) agreements;

Stage 3
● Recruitment;
● Search for equipment;
● Advertising campaign;
● Repair of premises;
● Purchase of necessary furniture;
● Grand opening;
● Advertising campaign for the plan of annual promotions;
● Current work of the company.

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Organizational structure
Staffing schedule:
● director - 1,
● seller - 4,
● Brigadier - 2,
● Builders - 8,
● Office workers - 6.
The total number of staff is 21 people.
Any business, no matter what you do, is based on competent and qualified personnel.
Requirements for all candidates:
● active life position;
● high communication skills;
● goodwill;
● honesty;
● discipline;
● responsibility;
● professionalism.
The management of the company needs to increase the interest of personnel in work, guaranteeing their career growth. An important aspect is also a calm and friendly atmosphere in the team, which ensures high labor productivity. When selecting personnel, company management must take into account the factor of psychological compatibility of personnel. In addition, the interest of employees should be stimulated by a constant increase in wages, the pace of which will be approximately 100% in three years.

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Investment costs for opening this business are UAH 5,000,000
"Monthly expenses"
The sales plan is based on the following data. The average number of buyers is 10-50 large orders per day, the average check is 50,000 UAH. A gradual increase in sales volumes is predicted in the first 2 years of the project. Thus, the considered base scenario is realistic, and the project has a reserve for increasing sales volumes in case of successful entry into the market.
The sales plan for the 1st year of the project implementation is below:

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Sales plan for the 1st year of the project (table)

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Sales plan for the 1st year of the project

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Sales plan for the 1st year of the project (diagram)

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Sales plan for the 1st year of the project diagram

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Sales plan for the 2st year of the project (table)

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Sales plan for the 2st year of the project

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Sales plan for the 2st year of the project (diagram)

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Sales plan for the 2st year of the project diagram

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Monthly costs include both fixed and variable costs (direct costs), depending on sales volumes. The markup on the goods is 20-25%.
The table shows the average monthly costs.

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Table one (Net profit 1 year)

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Table two (Net profit 2 year)
With a planning horizon of 2 years,
the following economic indicators can be distinguished:
The payback period is 25 months;
Profitability index - 1.33;
Before opening a construction and processing company, it is worth considering the possible risks associated with this activity:
● Exchange rate fluctuations affecting the cost of equipment, rent, consumables.
● Changes in legislation governing the demolition of old buildings and the recycling of construction waste.
● Limited cash.
● Intense competition in the construction industry.