You’ve come up with the idea for your new construction business. Now what? Well, you’ll need some supporters. These supporters will probably take the form of investors. There are three steps you can take to get people to support your new construction business.
1. Present A Business Plan
Potential supporters, especially investors, want to know you have everything planned out. They don’t want to waste their time on someone who doesn’t take it seriously. Here’s what to put in your business plan before you present it.
- The concept. The basic idea your business is built on. What kind of construction will you be doing?
- Your services and how they compare to competitors in your area.
- Your strategy for success. Be specific.
- Who you’re aiming to have as customers and why you think they’ll go for it.
- The equipment you’ll need. Do you need them to help pay for tools or rent a truck with hauling ability?
- Your relevant background information.
- The background information of anyone else who will be a big part of the business.
- A rough estimate of how much financial support you need from them.
- A typical business plan is about fifteen pages.
Your business plan is basically a very detailed version of your pitch, which we’ll cover next.
2. Perfect Your Pitch
You need to learn to pitch your business. Pitching is giving someone the short version of why they should support you. Here are the key things you should know.
- You need a long pitch and an elevator pitch. An elevator pitch can be delivered in a minute or less.
- Your pitch should demonstrate your potential. Why are you different?
- It should explain the demand for your business. For instance, you might say that there are unfinished construction projects all over the city just waiting for someone to take them on.
- A pitch should have a quick reference to your marketing. You might point out that your website has thousands of viewers or that your business page has lots of followers.
- Your pitch should list some of your strengths. Mention your business experience or success so far.
- Someone should come away from your pitch with enough information to get you another meeting.
Sometimes you only have seconds to make an impression. Practice your pitch until you can deliver it flawlessly.
3. Have A Budget Ready To Present
Having a budget is important when seeking investors because it lets them know you’re a detailed person. It will give them confidence that you know what you’re doing and won’t waste their money. So how do you create a business budget?
- If you’ve already been working as a company, look at how much money you’ve made so far. Figure out how much you’ve been making monthly.
- Add up all your costs that occur regularly. Like payroll and rent for your space. Break these down into how much they cost in one month.
- Calculate all your occasional costs. These might include repairing or replacing equipment.
- Once you have all your financial information figured out you can create a profit and loss statement. This basically explains how much money you’re spending vs. how much you’re making.
- Make a plan for how the budget will change going forward. Layout what you’ll be doing to raise your profit amount.
Future investors will look at this budget to determine how much of a risk you are. They may want to see certain things change before investing. If you practice and perfect taking these three steps, you’ll be well on your way to getting people to support your new construction business.
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