Good afternoon. My name is Kirichenko Egor, I am from the Krasnodar region. For the last ten years I have been building houses for sale. He started working alone, and each time he found a new team for construction. At the moment, I have organized a company (LLC), there is a permanent staff, its own designers and builders. This approach allows you to quickly build houses and deliver the finished building on a turnkey basis to the customer.
Business parameters:
- initial costs – from 300 thousand rubles;
- number of employees – 20 people;
- several offices in the region;
- monthly income (depending on the volume of orders) – from two million rubles.
Before we begin
Determine whether you have sufficient funds, the ability to take out a loan to start on your own, or whether you need to attract investors. If you already have funds, you can create an individual entrepreneur; to attract a large amount from outside, the best choice would be to organize an LLC.
Research the demand for real estate in your area. Depending on this, you should choose the direction of activity: construction of townhouses, cottages for sale or wooden houses to order.
When drawing up a business plan, you should take into account seasonality, the average cost of housing in your region and the purchasing power of the population. The demand for housing construction is very high, but it is better to start with a narrow specialization and choose the most popular options that allow you to achieve payback in the shortest possible time.
We build a private house from scratch
Building site
First of all, we decide on the site. Pay attention to the nature of the area: how good the ecology is here, how fertile the land is. Will it be convenient for your family to live? How likely is the risk of flooding and other natural disasters?
Be as careful and scrupulous as possible when preparing documents. These are papers confirming your ownership of the plot, a certificate of registration in the State Register, a cadastral passport with a copy from the master development plan.
Once the location of the future construction site has been determined, we move on to developing a full-fledged project. Without this, you are guaranteed to receive a significant increase in the price of your future home, with a lot of shortcomings and miscalculations. And the design of the finished building will require a lot of hassle.
Project and permissions
To draw up a project, a number of initial data called “design assignment” are required. They must take into account your requirements, technical conditions for connecting communications (electricity, gas, water, sewerage), geological and climatic conditions.
The project will determine the necessary thermal characteristics, the orientation of the house to the cardinal points, the type of foundation, roof, etc.
Only a specialist can do everything right. If you are not confident in your capabilities, entrust the development of the project to professionals, with your participation.
The next step is to obtain a building permit from the local administration. Then you have to choose which method to carry out the construction.
Main risks
Competition in the construction industry is high. A beginner needs to choose a narrow specialization and offer clients the highest level of service. Your advantage is the ability to concentrate on the little things. Large construction companies do not have this opportunity due to the peculiarities of the management organization.
Depends on the season. All stages of cottage construction can be carried out in spring and summer. If the work is properly organized and there are sufficient funds to ensure turnkey construction in full, you can start selling your house in the fall. If these conditions are not met, the risk of freezing construction until the next season is very high. When starting work, make sure that you have everything necessary to complete the project by the scheduled date.
Location
The company's office must be located in the central or business district of the city. This is where you will hold meetings with clients and partners. Also, designers, accountants, managers for working with clients and suppliers will work in the central office.
The facility for storing equipment and producing prefabricated wooden houses should be located in an industrial area or on the outskirts of the city. Industrial and warehouse premises are suitable. An important point is convenient transport interchange and the ability to provide communications necessary for activities.
If you specialize in the construction of cottages or townhouses and their subsequent sale, the question of finding a site for construction is added. Study the city's development plans. It is unprofitable to build houses in a remote village that lacks modern infrastructure and convenient transport links. Look for vacant plots in a crowded area, with communications and in close proximity to schools, shops, medical facilities and other infrastructure facilities.
Enter into an agreement with a realtor who will provide you with information about the average cost of housing in each area. Having selected interesting areas, order a soil analysis from the geodetic service.
What material is best to use in the business of building houses for sale?
I often get asked what is the best material to build houses from. There are several options here. In first place is the brick. Its advantages are reliability, low cost and decent appearance.
If desired, the built house can always be decorated to your liking. Moreover, a brick cottage will last much longer and is guaranteed to protect against natural disasters.
The main thing is not to skimp on the thickness of the walls, which should be at least “one and a half times the length of a brick.” According to statistics, almost 50% of houses are built using this material.
In second place in popularity is wood. Today, glued (profiled) timber or rounded logs are becoming more and more popular. The advantage of such houses is the absolute naturalness of the material.
The house literally “breathes”; it is filled with the aroma of natural wood. The main disadvantage of buildings is their “weakness” to fire. But despite this, wooden cottages are being built more and more often. You can give preference to a combined option when two types of materials are used - brick and wood.
The third option is the construction of buildings from sandwich panels. So far, such houses are built very rarely. Their advantages are excellent thermal insulation, the inside of buildings is always dry (even without heating).
Over the years, the walls hardly shrink, which for many is the main advantage. In addition, houses made of sandwich panels are quickly erected. Disadvantage: low service life (about 40-45 years).
Moreover, regardless of the chosen material, you can produce any type of finishing - brick, natural stone, stucco, and so on.
There are many possibilities for decoration - all that remains is to coordinate the plans with the customer and implement them in practice.
Studying and choosing from the Catalog of the best franchises in Russia and Ukraine is the first step to starting a successful business with an easy and simple start. When making a decision to purchase a franchise, it is necessary to follow the professional recommendations of the section: “All about franchises.”
You can read about the latest news and trends in the franchise business here >>
Equipment
There is no need to purchase expensive construction equipment. Depending on the project, at each stage of work you can rent the necessary equipment and personnel from companies specializing in providing such services. Buy only those tools and equipment that are necessary for your work on a regular basis.
If you plan to sell finished wooden houses, the situation looks different. The lumberjack team must be equipped with chainsaws and other equipment for harvesting wood. Equipment for transporting wood to the assembly site can be rented. Assembly, which is best done in winter, is also carried out using chainsaws, electric planes and a standard set of carpentry tools. To operate, you need a mini-power station. The approximate cost of a set of equipment for the work of one team is 50-60 thousand rubles.
Conditions for termination of the contract
The conditions may be different, they must be clearly stated in the contract.
For example, the customer may indicate the following reasons for terminating the contract:
- work is being carried out too slowly and there are fears that it will not be completed on time;
- the quality of work does not meet the stated requirements, and the contractor does not want or is in no hurry to eliminate the deficiencies;
- other conditions that interfere with the normal execution of the terms of the transaction, in the opinion of the customer.
For the contractor, the following actions on the part of the customer may be significant reasons for terminating the contract:
- he provided materials of poor quality or unsuitable for construction, the contractor must first tell him about this and ask him to replace it;
- did not provide technical documentation;
- delays payment or does not want to pay;
- indicates a method of work that is unacceptable for the contractor;
- interferes with the progress of construction in every possible way;
- violates other terms of the contract.
The parties agree on what points to include in the contract at the stage of its approval.
In any case, contractual relations must be transparent, understandable and fair for everyone. If the work has been completed, it must be paid for. The opposite is also true: if payment has been received, the terms of the transaction must be fulfilled.
Personnel
To build frame houses, it is necessary to hire a team of lumberjacks (5 people) in the summer. The assembly must also be carried out by 5-6 qualified specialists, whom the company owner hires full time.
To work permanently in a company specializing in the construction of turnkey houses, a few people are enough:
- Supervisor. - Foreman. - Manager. - Accountant. All other employees can be hired on a contract basis depending on the stage of work. Look for companies and teams with a narrow specialization:
— Design. - Excavation. — Construction of walls. — Internal work. — Laying power supply and communications. - Water supply. - Finishing work. — Landscape design.
There are a lot of proposals for each item. Having chosen the best options in terms of cost of services, quality and timing of work, you can subsequently enter into cooperation agreements with each of these teams or companies for the construction of the following facilities.
What does a business plan for the construction of wooden houses look like in terms of costs and profitability?
Given the popularity of wooden houses, you can safely try yourself in this industry. Moreover, there are several directions available here.
Thus, you can build frame houses from wood, cottages from rounded logs, log structures (manual assembly), and buildings from profiled laminated veneer lumber.
The most budget option is wooden frame buildings. They are warm, but in terms of environmental friendliness and comfort, of course, they are inferior to their “big brothers”. Houses made of rounded logs are 10-15% more expensive, but they are considered the most prestigious. In Europe, such cottages are the most popular.
Timber buildings are inexpensive and easy to construct. The main disadvantage is the difficulty in insulation. Such a house is blown much more strongly than a log building. To reduce heat loss, it is necessary to consider additional thermal insulation of the house.
The average price for building a wooden cottage made of laminated veneer lumber is from 25 thousand rubles (cubic meter), a house made of profiled timber will cost half as much - about 10-15 thousand rubles per “cube”.
The most budget option is a house made of rounded logs. Its cost is from 6-8 thousand rubles per “cube”.
The total costs for the purchase of all equipment, registration of a license, construction, purchase of tools - from 500 thousand rubles. Business profitability is about 40%.
Table No. 1. Potential of house construction services in Russia
Documents and licenses
For low-rise construction, you do not need to obtain a license or become a member of the SRO. The owner of the company just needs to register an individual entrepreneur or LLC with the tax office and choose a convenient type of taxation.
If you have permanent employees, you need to register a company with the employment and social insurance service. Construction permits are issued by local authorities. When designing a facility, you must coordinate all the nuances with the architectural bureau and fire safety service.
Conclusion
Even without being a professional builder, today it is possible to understand all the nuances, both independently and with the help of more experienced comrades and a lot of tools (editors, calculators, training videos, courses conducted by large manufacturers of building materials). The main thing is desire and faith in success, and we didn’t come up with the idea of a lying stone.
Within reason, you can save on building materials - if you know how, and on the project. An accessible and understandable technology in terms of ease of execution, but labor-intensive, is the construction of houses from homemade concrete blocks using the casting method. The video shows a useful example for self-builders of laying the first row of aerated concrete blocks.
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Payback
Much depends on the average cost of housing in a particular region. On average, the cost of building a small house for one family, subject to cooperation with wholesalers of building materials and proper organization of work, is about 2 million rubles. The sale price of such houses fluctuates around 3 million rubles. During one season, you can earn 1 million rubles from the construction of one house.
The profitability of building finished wooden houses reaches 30-40%. With proper organization of the company's activities, it is possible to achieve payback in a year and a half.
Marketing
Advertisements in the media, banners, street advertising, website on the Internet - all methods can be used to attract buyers. Cooperate with real estate companies, they will provide a constant flow of potential clients.
The main condition for success is quality, comprehensive service and speed of work.
