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How to Write a Concrete Contracting Business Plan [Sample Template]
Are you about starting a concrete contracting company ? If YES, here is a complete sample concrete contracting business plan template & FREE feasibility report. The United States in particular has some serious infrastructure goals that will need to be filled in the coming years, meaning that as a concrete contracting company, there are loads of jobs waiting for you.
Interestingly, smaller operators comprise the majority of total establishments in the industry not just in the United States but in most countries of the world and they serve local markets.
A Sample Concrete Contracting Business Plan Template
1. industry overview.
The Concrete Contractors industry is made up of companies that engage in residential and nonresidential construction, additions, alterations, reconstruction and other services.
A standard concrete contracting company carries our jobs that include the following basic processes: preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work.
Concrete is an essential building material for the construction sector given its use in foundations, walls and floors. As a result, performance for the Concrete Contractors industry is closely tied to that of the broader construction sector. As a result of the steady increase of demand from downstream construction markets, job numbers have been on a steady rise.
Going forward, the construction industry is expected to continue thriving hence increase in the demand for the services of concrete contractors. So also, the industry is also expected to benefit from the increase in renovation and new construction activities.
Statistics has it that the Concrete Contractors industry in the united states of America is worth over billion, with an estimated growth rate of 4.5 percent between 2014 and 2019. There are about 54,398 registered and licensed concrete contracting businesses in the United States and they are responsible for employing about 279,527 people. It is important to state that there are no company with a dominant market share in this industry.
A recent report published by IBISWorld shows that over the five years to 2019, favorable lending rates, improved per capita disposable income and record corporate profit levels have helped bolster construction activity across several sectors, increasing demand for industry services.
The report reveals that housing is expected to increase at an annualized 6.2 percent over the five years to 2019. Conversely, unemployment is expected to fall an annualized 10.7 percent during the same period, boosting the need for new office, industrial and manufacturing space.
The concrete contractors’ industry will keep on thriving in the coming decade especially if an entrepreneur in this line of business is committed to providing reliable and quality jobs for customers. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing.
The good news for would-be entrepreneurs in this business is that there is an estimate of continued annual growth for the concrete contractor industry for as high as 20 percent. Over and above, the concrete contractor services industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business.
2. Executive Summary
Rowland Barros® Concrete Contracting Services, Inc. is a licensed American concrete contractor services company. We have been able to secure a standard and well – positioned office facility in a central business district in Arlington Heights – Texas.
We are set to compete in the highly competitive concrete contracting industry not only in Arlington Heights – Texas, but also throughout the United States market. Rowland Barros® Concrete Contracting Services, Inc. is set to work in residential and nonresidential construction, additions, alterations, reconstruction and other services et al.
We will also provide the following services: preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work.
Our business goal is to become one of the leading concrete contracting companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry. Our workers are going to be selected from a pool of certified and highly experienced civil engineers, technicians and tradesmen with different areas of expertise as it relates to our service offerings.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading concrete contracting services companies in the United States.
At Rowland Barros® Concrete Contracting Services, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Rowland Barros® Concrete Contracting Services, Inc. is founded by Engr. Rowland Barros, a graduate of A and M University, Texas; B.Engr. Civil Engineering. He will run the business alongside his son Luke Barros who has a B.Sc. in Business Administration.
They have a combined experience that can help them build Rowland Barros® Concrete Contracting Services, Inc. to favorably compete with other leading concrete contractor services businesses in the United States of America.
3. Our Products and Services
Rowland Barros® Concrete Contracting Services, Inc. is established with the aim of maximizing profits in the industry. We want to compete favorably with the leading concrete contracting companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every concrete contracting project carried out meets and even surpasses our customers’ expectations.
We will work hard to ensure that Rowland Barros® Concrete Contracting Services, Inc. is not just accepted in Arlington Heights – Texas but also in other cities in the United States of America. Our service offerings are listed below;
Preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); curing of the concrete while it is hardening; and quality control of the concrete work for –
- New residential construction
- New nonresidential construction
- Additions, alterations and reconstruction
4. Our Mission and Vision Statement
- Our vision is to establish a standard concrete contracting company whose services and brand will not only be accepted in Arlington Heights – Texas but also in other cities in the United States of America.
- Our mission is to provide globally accepted construction projects and to build a concrete contracting service company that can favorably compete with other leading brands in the industry.
Our Business Structure
Rowland Barros® Concrete Contracting Services, Inc. intends starting small in Arlington Heights – Texas, but hopes to grow big in order to compete favorably with leading concrete contracting services companies in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. That is why we are committed to only hire the best hands within our area of operations.
At Rowland Barros® Concrete Contracting Services, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Head, Technical Services (Senior Civil Engineer)
- Human Resources and Admin Manager
- Sales and Marketing Executive
Civil Engineers
Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Head, Technical Services (Senior Civil Engineer):
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and handymen
- Ensures that the organization work in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Rowland Barros® Concrete Contracting Services, Inc.
- Serves as internal auditor for Rowland Barros® Concrete Contracting Services, Inc.
- Responsible for the preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work
- Handle other related jobs as instructed by the Head, Technical Services.
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
6. SWOT Analysis
Rowland Barros® Concrete Contracting Services, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured concrete contracting company that can favorably compete in the highly competitive concrete concreting industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Rowland Barros® Concrete Contracting Services, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Rowland Barros® Concrete Contracting Services, Inc.;
We can boast of having a system that runs on automation and it includes 3D concrete printing. We have been able to select a team of workforce that will give us advantage. Aside from our carefully selected workforce, our services will be guided by international best practices in the industry.
As a new concrete contracting company in Arlington Heights – Texas, it might take some time for our organization to break into the market especially in the already saturated and highly competitive concrete contracting services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
- Opportunities:
Acceleration of the housing and nonresidential construction markets in the United States is bound to support growth for a business such as ours. In the wake of all the natural disasters in the coastal areas of the United States, owners are looking for structures that will survive hurricanes, fires, and earthquakes. One imperative is that concrete infrastructure needs to be designed and built to resist corrosion.
While the US construction marketing is currently experiencing remarkable construction growth, it’s only sustainable long-term if builders embrace modern technology and practices. As of now, the labor shortage, lack of digitalization and poor coordination are the three major factors that could limit a future flourishing of construction in America and by extension is will pose a threat to our business.
7. MARKET ANALYSIS
- Market Trends
A close watch on industry activities show that the revenue increase is due to an acceleration in downstream construction markets in the United States. As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts/job numbers have been trending upward.
Going forward, the construction and real estate industry are expected to continue thriving leading to an increase in the demand for the services of concrete contractors.
Another notable trend shows that concrete contractors are moving from using technology solutions for specific tasks to having real-time and accurate information on mobile devices. Construction productivity is on the brink of a huge leap due to integrated and intuitive software that doesn’t just give you a bunch of numbers but rather provides easy-to-understand information that enables you to make good decisions.
Lastly, while paper is slowly being phased out of construction sites, many companies are still completely reliant on the material to complete jobs. As a result, information is constantly obsolete, and communication is fragmented and unproductive.
If companies are serious about meeting the increasing demands of building in the US, it means getting rid of all traces of paper and adopting a collaborative document management system that provides real time access and visibility to all project stakeholders.
8. Our Target Market
Before starting our concrete contracting services company in Arlington Heights – Texas, we conducted a market survey and feasibility studies and we are certain that there is a wide range of construction companies and other players in the construction value chain that need our services. We are aware that the industry’s primary markets are the nonresidential and residential building sectors.
Our competitive advantage
There are favorable conditions for growth in the concrete contracting services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably.
More concrete contracting services companies are coming up and they are using the services of existing franchises to boost their competitive edge and exposure in the industry.
We are quite aware that to be highly competitive in the concrete contracting services industry means that you are not only expected to be able to deliver highly reliable concrete jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.
Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained civil engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Rowland Barros® Concrete Contracting Services, Inc. is established with the aim of maximizing profits in the concrete contracting services industry and we are going to go all the way to ensure that it meets and surpasses the expectations of our clients.
Rowland Barros® Concrete Contracting Services, Inc. will generate income by offering the following services; Preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); the curing of the concrete while it is hardening; and quality control of the concrete work for –
10. Sales Forecast
One thing is certain, there would always be construction and real estate companies, that would need our services. We are well positioned to take on the available market in the concrete contracting industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.
We have been able to examine the electrical contractor services cum installation, maintenance and repair market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Rowland Barros® Concrete Contracting Services, Inc., it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year: $350,000
- Second Fiscal Year: $750,000
- Third Fiscal Year: $1.2 million
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions in the concrete contracting services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Rowland Barros® Concrete Contracting Services, Inc.
Our corporate goal is to grow Rowland Barros® Concrete Contracting Services, Inc. to become one of the leading concrete contractor services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Arlington Heights – Texas but also in other cities in the United States of America.
Rowland Barros® Concrete Contracting Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to construction and real estate companies
- Promptness in bidding for concrete contracts from construction companies, real estate companies, the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of Arlington Heights – Texas and beyond which is why we have made provisions for effective publicity and advertisement company.
Below are the platforms we intend to leverage on to promote and advertise Rowland Barros® Concrete Contracting Services, Inc.;
- Place adverts on both print (newspapers and civil engineering related magazines) and electronic media platforms
- Sponsor relevant community – based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our services
- Install our Billboards in strategic locations all around Arlington Heights – Texas
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List our company in local directories/yellow pages
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo.
12. Our Pricing Strategy
At Rowland Barros® Concrete Contracting Services, Inc. we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from construction and real estate companies who would hire our services.
In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Rowland Barros® Concrete Contracting Services, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Rowland Barros® Concrete Contracting Services, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for services rendered without any stress on their part.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard concrete contracting company in Arlington Heights – Texas and here are the key areas where we will spend our startup capital;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $80,000.
- The amount required to purchase the needed concrete mixers, trucks and other related equipment – $80,000
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $5,000
- Amount required to purchase the needed software applications to run our business – $ 3,500
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard concrete contracting services company in the United States of America.
Generating Funds/Startup Capital for Rowland Barros® Concrete Contracting Services, Inc.
Rowland Barros® Concrete Contracting Services, Inc. is a family business that will be owned and managed by Engr. Rowland Barros and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the start up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Rowland Barros® Concrete Contracting Services, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Rowland Barros® Concrete Contracting Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check : Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts : Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility, renovation and equipping of the facility inclusive: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of concrete mixers, trucks and other related equipment: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress
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How to Start a Ready-mixed Concrete Business
Step #1: Market Research. You have to know your market if you expect to make money providing a product or service. One of the things you need to know is if there is any competition in the concrete mixer industry? If so, how much are they selling concrete for? Many potential operators think that the local ready mix plant will be their competition. Not only is that nearly always untrue, ready mix dispatchers are usually very willing to send business your way. However, knowing what they are selling mixed concrete for, what their minimums loads are and the short load fees they charge, will help you set your own pricing. How about your local demographics? There are many success indicators in a thorough demographic study that will help you with your plans. There are many more points to the research which are covered in our Market Analysis on concrete mixing opportunities for your area.
Step#2: Community Requirements. This is an area that I spend a lot of time with for potential operators. For some concrete mixing equipment we may have to look into zoning requirements. Is a conditional use permit required? What are the property set-backs and height limits? Is an air quality permit needed? These are an important part of the long-term planning for the business and we help all the way through the process.
Step #3: Material Selection. While it’s true that the ingredients to concrete are just sand, gravel, cement and water, the type and quality of materials is important to making good concrete in a mixing trailer. Particularly with the aggregates, some attention must be given. I recall one customer who wanted to save money by ordering a less expensive sand. Well, he put out terrible concrete and the start to his business was slow and it tarnished his reputation. We looked at everything and when all was said and done there was only one item that had changed since he and I had talked materials: his sand. He bought a load of that sand and the customers noticed the change immediately. So, material selection for your concrete mixer business is an important step.
Step #4: Yard Set-Up . Nothing will slow your operation down more than an inefficient yard layout that will restrict the flow of the concrete trailers. Having spent many years on your side of the fence, I can help you avoid some costly mistakes.
Step #5. Sales and Marketing. This is actually an ongoing process and we will help get you started. There are many ways to let the community know about the new concrete supply service that you provide. We know what has worked, and what hasn’t, both from personal experience and from our customer’s trials and errors. Can you guess the least expensive advertising that will help your trailered concrete business take off? I’ll let you know here on the cement mixer blog of Cart-Away.
Stay tuned and I’ll explain each of these points in more detail and how we at Cart-Away will help you succeed. By the time it’s all done you’ll know why we don’t sell concrete mixing equipment, we sell concrete business opportunities.
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Checklist for Starting a Concrete Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Concrete business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
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Customer Relations
Customer relations is the foundation of a successful selling effort, not simply because a courteous approach to selling is "nice," but because it can build sales and profit. In small businesses, it is particularly important because the customers of small retailers generally expect more personal service than they find in a major department or discount store. The personal service could be advice on the color, quality, or use of certain products. Or it might be just a friendly greeting and the confidence that comes with knowing that they are buying from people who are interested in them and their business.
A courteous greeting establishes rapport between the sales person and the customer. The traditional "May I help you?" is self-defeating. Nine times out of ten, the answer is "No, thanks, just looking." A better approach is to use a simple, common greeting such as "Good morning." Or a comment on the merchandise that the customer is examining: "Shetland sweaters are very popular this season." Or a question about the customer's purchase: "Do you want something for yourself or for a gift?" Such comments will usually prompt a positive response from the customer. In general, they are far more effective than questions that can only be answered "Yes" or "No." A greeting such as "Good morning.
What can I do for you?" is far more productive than "May I help you?" Greetings should be the beginning of conversations, not the end.
The salesperson should try to know as much about the customer's buying interest as possible. This is done by asking questions such as:
"Are you looking for a fall or a winter coat?"
"How long has your daughter been playing tennis?"
"How often do you need a power saw?"
The answers to these questions will help the salesperson direct the customer to the right product -- perhaps the winter coat, the expert model tennis racket, or the most durable saw. The salesperson will be performing a service for the customer by matching the customer's needs to the right product and will be increasing the chances of closing the sale.
As in the hiring interview, the most effective questions are those that cannot be answered "Yes" or "No." Instead, the salesperson should try to use open-ended questions that require a more complete answer. These are usually questions that begin with "Why," "What," "How," or offer a choice for the customer to make.
Even an apparently negative response can be useful. The customer who likes the style of a skirt but dislikes the color can be shown another skirt in a color she may prefer. The customer who objects to the price of an appliance can be shown a lower priced model, or can be shown how the particular appliance justifies the apparently high price.
Unless the salesperson is aware of the customer's objections, nothing can be done to overcome them.
Salespeople are responsible for selling products and services. Customers have no responsibility to buy them. It is up to the salesperson to find out what the customer wants and match a product or service to those wants.
Feature-Benefit Relationship
Whenever a salesperson describes the product or service to a customer, it should be described in terms of the "feature-benefit" relationship. Features and benefits defined as follows:
A feature is any tangible or intangible characteristic of a product or service.
A benefit is the customer's basic buying motive that is fulfilled by the feature.
For example, a salesperson says, "These all-leather hiking boots have waterproof seams. They are our highest priced line, but the leather will last a long time, look good, and keep you dry even on wet trails." The salesperson mentioned two features, "all leather" and "waterproof seams." The benefits that the owner can expect to derive from these features were also mentioned as follows:
"last a long time" - Although they are higher priced, they represent value because they won't have to be replaced frequently.
"look good" - People want things that they wear to look good.
"keep you dry" - People are naturally interested in comfort and in preserving their health.
People's buying motives vary widely. In fact, two people buying the same product might be looking for altogether different benefits. One man buys an expensive suit because of the status it confers upon him. Another man buys the same suit because its superior tailoring will make it more durable and long-lasting. A third buys it because he likes the styling.
The following are some typical benefits that people seek from the things they buy:
Safety. The desire to protect their lives and property.
Economy. Not just in the initial purchase price but in long-run savings through less frequent replacement or, in the case of certain products, lower maintenance and operating costs.
Status. People buy things to be recognized. The woman buying an evening dress may consider the designer's name all-important. A 12-year-old boy might consider the brand of blue jeans or the autograph on a baseball bat to be equally important.
Health. People buy exercise equipment, athletic equipment, and outerwear because they wish to preserve their health.
Pleasure. People attend theaters, go to athletic events, eat at restaurants, and buy books and objects of art because they expect to derive personal pleasure from these pursuits.
Convenience. People buy many things to make the routine chores of life easier. For example, the cook buys a cake mix because it is far more convenient than mixing the individual basic ingredients.
The list could go on indefinitely. The important question to consider is the customer benefits that are provided by the goods or services that you sell. Knowing these benefits, salespeople can describe your products to customers in terms of the benefits that your customers can derive from them. Relatively few customers are interested in the technical or design details of a product. The customer is primarily interested in what the product will do for him or her.
The principal reason for a salesperson to describe features of a product or service is to prove the benefits that the person can expect from it. For example, a salesperson might describe insulating material to a customer as follows:
"This insulating material creates a thermal barrier." Impressive words, perhaps, but the statement tells the customer little or nothing about the reasons for buying.
This article Provides managing your Company tips and manage business advice. But you aren't ready to begin your own company till you have given any thought to handling it. A company is an ongoing activity that does not run itself. As the supervisor you'll need to set goals, determine how to achieve those goals and make all the necessary decisions. You will need to purchase or make your product, price it, advertise it and sell it. You'll have to keep documents, and determine costs. You'll Have to Control stock, make the right buying decisions and keep costs down. You will need to hire, train and motivate employees now or as you develop. Setting Business Management Goals. Good small business management Is the secret to success and great management starts with establishing goals. Set goals for yourself for the achievement of the many activities necessary in establishing and managing your business successfully. Be specific. Write down the goals in measurable terms of functionality. Break major targets down to sub-goals, demonstrating exactly what you expect to attain in the next two to three weeks, the next six months, the next calendar year, and the next five decades. Beside each goal and sub-goal set a particular date showing when it is to be attained. Plan the action you must take to achieve the goals. While the attempt Needed to reach each sub-goal should be great enough to challenge one, it should not be so good or foolish as to discourage you. Do not plan to reach too many goals all too. Establish priorities. Plan in advance how to quantify results so you can know exactly the way Well you're doing. This is what is meant by"measurable" goals. If you can't keep score as you move along you're likely to lose motivation. Re-work your plan of action to permit for obstacles which may stand in your way. Attempt to foresee obstacles and plan strategies to avert or minimize them. Buying. Skillful purchasing is an important essential of Managing a business. This is true if you are a wholesaler or retailer of product, a manufacturer or a service business proprietor. Some retailers say it's the most significant single factor. Merchandise that's carefully purchased is not difficult to sell. Determining what to purchase means finding out the Kind, kind, quality, Brand, size, colour, fashion -whatever applies to a particular inventory - which will sell the best. This requires close attention to salespeople, trade journals, catalogs, and especially the likes and dislikes of your regular clients. Analyze your earnings documents. The producer should view the issue through the eyes of clients before determining what materials, parts, and materials to buy. Know your regular customers, and also make a good evaluation of this People you expect will become your clients. In what socioeconomic category are they? Are they homeowners or tenants? Are they searching for price, style or quality? What's the predominant age category? The age of your clients can be a prime consideration in Establishing a buying pattern. Young people purchase more often than many elderly people. They want greater, have fewer duties, and invest more on themselves. They're more conscious of fashion trends whether in sporting apparel, automobiles or electronics. If you decide to cater to the young trade because they seem dominate in your area, your buying pattern will probably be wholly different than when the more conservative middle-aged customers seem to be in most. Study trade journals, newspaper advertisements, catalogs, window Displays of businesses similar to yours. Ask advice of salespeople offering you merchandise, but purchase sparingly from several suppliers instead of one, analyzing the water, so to speak, until you understand exactly what your best lines will be. Locating suitable merchandise sources is not easy. You will buy Directly from producers or producers, from wholesalers, distributors or jobbers. Pick the suppliers who sell what you want and can provide it when you need it. (Distributors and jobbers are used by the majority of business people for fast fill-ins involving mill shipments.) You may spread purchases one of many providers to gain more Favorable rates and promotional material. Or you might focus your purchases one of a few providers to simplify your credit issues. This will also help you become famous as the seller of a certain brand or line of product, and to keep a fixed benchmark in your products, if you're buying materials for manufacturing functions. When to buy is important if your business will have seasonal Variations in sales volume. More inventory will be needed ahead of the seasonal upturn in sales volume. As earnings decline, less product is needed. This means purchases of goods for resale and materials for processing must change accordingly. At the outset, how much to buy is speculative. The best coverage is To be frugal until you have had sufficient expertise to judge your wants. On the flip side, you can't sell product in case you do not have it. To help solve buying problems, you should Start to maintain stock Control records simultaneously. This can allow you to maintain the stock in equilibrium - neither too large nor too small - with a proper proportion and decent assortment of merchandise, sizes, colors, styles and attributes. Fundamentally, there are two types of stock control - control in Dollars and control in physical components. Dollar controllers reveal the sum of money spent in each merchandise category. Unit controllers indicate the amount of individual items when and from whom purchased by class. A fantastic stock control system can help you determine what, from whom, when, and how much to purchase. Pricing. A lot of your success in manage a business will depend on How you price your services. If your Rates are too low, then You Won't cover Costs; too high and you will lose sales volume. In both cases, you will not Make a profit.
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How to Start Ready Mix Concrete Supply Business in 7 Easy Steps
Do you want to start a ready mix concrete supply business? Find here, a detailed business plan guide for your ready reference.
Concrete is the most vital material in modern construction. Actually, the latest technological developments have made it possible to use it in intricate and architecturally complex structures, requiring a high degree of performance and aesthetic appearance.
Actually, the increasing number of benefits of ready-mix concrete is the major reason for growing the demand for this product. Additionally, the increasing construction activity is another reason for increasing the demand for ready-mix concrete on the project site.
Read: Profitable Business Ideas for Civil Engineers
Starting a ready-mix concrete supply business demands strategic planning and moderate capital investment. And definitely, the business ensures lucrative revenue return on investment.
Is Ready Mix Concrete Supply Business Profitable?
Some of the major global markets are India, China, the US, Indonesia, UAE. Actually, there are several reasons for the growing demand for ready-mix concrete. The list includes the superior and consistent quality of concrete, strict selection of raw materials during production, etc. Other reasons are customizability for specific requirements and quantity and testing the physical and mechanical strength of concrete.
Also, the application of ready-mix concrete results in low wastage ensures streamlined workflow, eliminates the need for storage spaces and other raw materials at the construction site, reduces the time and workforce required, and reduces noise and dust production.
Some of the major advantages of this technology include low labor costs, fast construction, increased complexity or accuracy, less waste production, and greater integration of function.
Generally, the global ready-mix concrete market for non-residential applications accounts for the majority market share. And there are several factors that are responsible for the growth. The list includes rapid industrialization, population growth, urbanization, favorable government policies, availability of cheap resources and skilled workforce, and low operational and labor costs. So, according to the present market scenario, starting a ready-mix concrete supply business is highly lucrative for entrepreneurs.
Different Types of Ready Mix Concrete
In starting this business, you need to understand first the different types of concretes and their advantages and uses. Broadly, there are four different segments of the ready-mix concrete industry.
1. Performance-based Concrete
Generally, performance-based concretes are used in projects where high effectivity is needed. This item is perfect for RCC members with intricate and complicated shapes and sizes. Additionally, it helps to avoid defects such as segregation and honeycombing. Also, it ensures superior surface finish enabling faster construction and lower manpower requirements. It increases resistance to sulfates, reduces chloride-ion penetration, and improves resistance to aggressive environments.
2. Usage-based Concrete
Generally, architects and engineers prefer this type of concrete for big and delicate projects. Basically, it is an enhanced crack resistant and relatively ductile concrete, produced by using different types of fibers like polyester, polypropylene, glass & steel, etc. It minimizes the problems of plastic shrinkage cracks of the concrete in the green stage and substantially improves its static and dynamic properties like flexural impact and tensile strength.
3. Decorative Concrete
Generally, the decorative segment consists of two different types of concretes. These are color concretes and stamped concrete. As the name defines, these concretes are used for decoration purposes only. Color concrete comes with quality UV-resistant pigments that help in retaining the true color/shades for a longer duration. Basically, decorative concretes are ideal for driveways, patios, walkways, swimming pool decks, car parks, industrial floors, and exterior walls.
4. Green Concrete
Basically, green concrete comes with a high porosity used for concrete flatwork applications. Actually, it allows water from precipitation or other sources to pass through, thereby reducing the runoff and ensuring the recharge of groundwater. Hence, it offers numerous environmental, structural, and economic benefits and is an excellent alternative to expensive stormwater management methods.
Here are the 7 Steps to Start Ready Mix Concrete Supply Business
1. craft the business plan.
First of all, crafting a business plan is a must. Basically, this is a small and medium-scale business. You need to put a lot of thought into capital investment. And for crafting the plan, you must research the local market first. You will need to identify the demand for the specific type of concrete in your locality.
In addition to that, identify the existing concrete suppliers, their products, and pricing. It will help you to price your product in a much better way.
In your business plan, include your business objective, mission, and vision. Determine the management pattern of your business. Finally, calculate the startup cost. Actually, you will need to calculate both the fixed and working capital costs.
Generally, the fixed cost includes the plant, machinery, and other pre-operative expenses. On the other hand, the working capital cost includes raw materials, utility, and other operational expenses. Calculate an expected ROI and break even.
Have a clear marketing strategy. Have a plan and capital both for promoting your ready-mix concrete supply business. Additionally, have an expansion plan too.
2. Arrange the Finance
Arranging finance is one of the most important aspects of starting this business. Actually, it is advisable to start this type of business with bank finance. Also, you can apply for venture capital funding. And here, your business plan will help you in getting the investor’s confidence.
3. Business Registration & Licensing
According to the Federal law of your state, you must register your business. Also, consider the financial participation at the time of company formation. Additionally, check the licensing issues if there are any. Generally, this type of business doesn’t demand any type of NOC from the Pollution Control Board. However, it is better to check before initiating the plant.
4. Establish the ReadyMix Concrete Warehouse Unit
In establishing the unit, the primary requirement island. You must secure land with a covered shade area for operating the unit. Check the availability of adequate electricity and water supply. Get the floor plan from the machinery supplier and set up the unit accordingly. Your unit must have a wide entry space for easy going of your delivery vehicles. An administrative office setup is a must. You can set up the office with the unit or at other commercial spaces.
5. Procure the Machinery & Equipment
Basically, machinery, equipment, and vehicles demand major investments in this type of business. And you must select the specific machinery according to your specific requirements. It is better to install a customized plant. Additionally, the cost of the plant majorly depends on the capacity.
Generally, an RMC plant comprises a bucket elevator, screen, sand dryer, burning furnace, storage silo, screw conveyor, weighing system, and other advanced process control systems for easier handling. Finally, you will need to procure a specific type of concrete delivery vehicle.
6. Make an Operational Plan
Starting a ready-mix concrete supply business consists of so many operational aspects. And you will need to determine these before offering the products to your clients. First of all, you will need to employ human resources. Broadly, you will need manpower for production, marketing, and administrative work. In addition to that, you will need to have a logistics team also.
Prepare the entire process of getting an order, scheduling delivery, and accepting payments. Open a business bank account in your nearby bank. For accounting, billing generation, and stock maintenance, you may need an accounting software solution.
7. Promote the Ready Mix Concrete Supply Business
Any business as such can never be successful without sufficient promotion. So, you must promote your business both offline and online. And you must create a website for your company. Mention there your contact info and product details. Additionally, you must put your effort into ensuring institutional clients.
A small ready mix concrete supply business will get success when you can ensure the local clients first. However, you must think about expansion after getting the initial success in this business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.
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- 1. Farah Taleb Noor Osman Jihad Hajar
- 2. TCF is a startup concrete mixer establishment located in the North of Lebanon. TCF is expecting to catch the attention of many clients and contracting companies based on the high quality of the offered product. The Factory is planning to build a strong image and market position in the town. TCF aims to produce various kinds of concrete including quaking concrete and hard concrete, suitable for large or medium scale building works, road and bridge works. TCF’s mission is to exceed our costumer’s satisfaction and to become the single trusted source of high quality concrete.
- 3. Vision Statement: Become the most trusted single source and multi-trade industrial contracting and engineering ready mix concrete provider based on technical expertise and continuous development. Become a safety icon based on the high strength concrete we offer. Become an innovative factory which determines the concept of reliability, technology and quality in the rapidly changing world. Mission Statement: Offer a high quality of Concrete at a competitive price to meet the demand of our clients Establish a strong relationship with the area’s home builders. Provide customer satisfaction at maximum level by presenting products that are designed and manufactured in compliance with the customer needs and expectations.
- 4. Goals: Increasing sales steadily each year for the next 5 years. Increase profit and revenue. Have happy customers. Support Community. Being a great place to work. Build amazing product. Objectives: Reduce production costs. Launch new services. Have onsite customer visits. Sponsor charitable events. Apply new technologies. Offer more training programs.
- 5. Logo: Slogan: For Living Concrete
- 6. Providing a high quality of product with fair prices. Good Relationships with engineering customers. An advanced batching plant with high technology. Foresee changes in the market and it is to our clients' benefit that we proactively introduce new technologies and stay ahead of competition.
- 7. TCF offers a high quality of ready mix concrete. Our ready mix concrete is a mix of coarse aggregate, fine aggregate, sand, powder, chemicals and water. There are five types of ready mixed concrete; it differs according to their weighs. Starting from 250, 300, 350, 400, and 450 that represent the strength of the product.
- 8. 1 Bulldozer. 2 pumps. Diesel container. 2 ready-made houses. Power generator KVA 500. Electrical equipment for lighting and various uses. Equipment requires periodical maintenance. 8 mixers. 1 rapid, 2 Picanto cars.
- 9. Project manager office, including the decor, furniture, computer, telephone, files wardrobe and a big office table. The office will be a hall meeting when need. Accountant office with furniture, computer, printer, telephone, files wardrobe. Supervisor room containing simple furniture and 2 small offices. Kitchen equipment containing small refrigerator, gas and accessories and tools cabinets.
- 10. Since we are: Aiming to produce highly standardized products, using high technology, Competitors are direct and highly experienced. We chose to apply the Cost Leadership Strategy. This Strategy will allow us to: Define the market floor price, Attract buyers who buy on the basis of low prices. We also tried to merge this strategy with the differentiation strategy, since we are offering a larger variety of concrete products (varying in amount of raw material)
- 11. Planning • Thinking about and organizing the activities required to achieve a desired goal. • Involves the creation and maintenance of a plan. Organizing • Relationships betweem positions. • Relationships between people occupying these positions. Directing • Motivating Others. • Communicating with others. Controling • Helps to check the errors and to take the corrective action • Setting standards, measuring actual performance and taking corrective action.
- 12. Using the Microsoft Project, this step was done. First we mention the steps of the project taking into consideration the timing. Steps: Site Preparation. Getting our name out there through advertisements and publicity. Employment ads. Interviews to choose best employees. Analyze competitors. Set standards and internal rules of company. Financial analysis and expected sales study. Purchase all equipment. Purchase raw materials and resources. Train chosen employees to get familiar with the work. Start producing.
- 13. General Manager Accountant Salesmen Supervisor Project Manager Workers
- 14. The right person is put in the right place, The demand and supply of employees are estimated, The job analysis (job needs to achieve the objective) is performed, The job description and specification, The info of available position is delivered to as many people as possible (internet, media activity, job posting, employment agencies, job fair…) At this phase the manager of the project will receive a large amount of Curriculum Vitae (CV) that should be filtered in order to choose the right person. Interviews, examinations, work sampling or even physical test are done in order to know capability and ability of work and skills that distinguish every person from the other one.
- 15. At the end the chosen employees were: • 1 Civil Engineers, • 1 Accountant, • 2 Salesmen, • 10 Drivers, • 2 Drivers Helpers, • 2 workers. Coordination is very important so that the final product has exactly the same quality. The coordination should be held putting certain standards for results, procedure, and high level of qualification. Workers are always motivated to work harder and give their full capacity. This is done essentially by respecting the pyramid of needs Bonuses are given to those who work extra hours. Sometimes responsibility of a worker is increased in order to change their work tone. Recognition Self esteem Social Life + Being Accepted Security Biological, Physical
- 16. The project is verified if it’s oriented to the objective or not, the comparison between the results and the planning must be done. • The objective is fixed, while continuous evaluation takes place, • The results are analyzed, • Comparison takes place. It is highly important that the final product will always have the same quality and raw materials quantity. Product “A” Same Results Product “B”
- 17. The administration: general manager is responsible and he takes the strategic decisions. He represents the company and he has the power to make deals. The financial administration: the accountant is responsible. He records the daily financial operations. The supervisor: he is responsible of the production process, quality control, and leading the workers. Workers: are responsible in conducting the production process, maintenance, transportation and cleaning.
- 18. The industrial sector plays a major role in the local economy through its huge financial investment which provides job opportunity by involving expertise and human resources. This sector found itself in expansion in the last years.
- 19. Global Concrete and Cement Market research reports that worldwide market value for concrete and cement industry was US$449.4 billion in 2012. The Asia-Pacific region was the largest regional market and accounted for 58.1% of the global market. The Asia-Pacific concrete and cement market valued US$261.1 billion in 2012 A study has been created in order to know the feasibility of the project located in Tripoli North of Lebanon. This ready concrete mixer provides job opportunities since it needs at least 20 workers to operate. It appears that total sales for the first year is 5.540.400 US $, with a market growth of 3%.
- 20. The Concrete Factory (TCF) will focus on the following types of costumers: Owners of contracting companies, Structural engineers and builders 96 % [VALUE] % MARKET SEGMENTATION Owners of Contracting Companies Structural Engineers and Builders
- 21. Sales 2013 quarter 1 quarter 2 quarter 3 quarter 4 Total Daily Production 100 250 260 150 Quarter production 9000 22500 23400 13500 2013 9000 22500 23400 13500 68400 2014 9510 25000 28000 7942 70452 2015 10000 26500 30340 3680.4 70520.4 2016 10500 27000 31000 2054.6 70554.6 2017 10500 27000 31000 2054.6 70554.6 2018 10500 27000 31000 2054.6 70554.6
- 22. 67000 67500 68000 68500 69000 69500 70000 70500 71000 2013 2014 2015 2016 2017 2018
- 23. Product Year Unit Price Expected sales Total Expected Sales Ready Mix Concrete 2013 81 68400 5,540,400 Ready Mix Concrete 2014 82 70520.4 5,777,064 Ready Mix Concrete 2015 83 70554.6 5,853,160 Ready Mix Concrete 2016 84 70554.6 5,926,536 Ready Mix Concrete 2017 85 70554.6 5,997,090 Ready Mix Concrete 2018 86 70554.6 6,067,644
- 24. Helpful to achieve the objective Harmful To achieve the objective Internal Origin External Origin Equipment of high technology Qualified and Motivated workers Excellent sales staff with strong knowledge of existing product. Highest Quality at Lowest Price. Weak skills in business and marketing Weak experience in the field Similar product in the market is more expensive Raw materials as aggregate and sand are highly available Competitors are highly experienced in the field Similar strong product already exists
- 25. Two direct competitors are present in the market: Holcim and El Sabea. Our key to success is to penetrate the market is new and high technological batching plant, with high capacity of production and new equipment.
- 26. Holcim is a Swiss-based global building materials and aggregates company. The company also supplies ready-mix concrete and asphalt including associated construction services. After a visit to the field this SWOT analysis took place: Helpful to achieve the objective Harmful To achieve the objective Internal Origin Having two mixing machines, so if one is damaged the work won’t stop. Large planted areas which will reduce the amount of pollution. The two mixing machines are very small, which will lead to a low production capacity. Having only one large Kiln, so cleaning it will stop the work. External Origin High demand on the product due to fast urban growth. They have only one competitor in the region. Unsecure region. Company location is very close to the sea which will cause corrosion to the machines (repairing costs)
- 27. Helpful to achieve the objective Harmful To achieve the objective Internal Origin Having one large mixing machine, so they are capable of having high production capacity. Having three small kilns so while repairing or cleaning one of them the production won’t stop. If the mixing machine is damaged the production will stop. No planted areas which will not help in reducing the amount of pollution. External Origin High demand on the product due to fast urban growth. They have only one competitor in the region. Unsecure region. Company location is very close to the sea which will cause corrosion to the machines (repairing costs)
- 28. Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score Quality 0.30 4 1.2 4 1.2 3 0.9 Lowest Price 0.25 4 1 3 0.75 3 0.75 Customer Retention 0.25 4 1 4 1 3 0.75 Location 0.20 3 0.6 2 0.4 2 0.4 Total 1 3.8 3.35 2.8 Key Success Factors TCF HolcimEl Sabea
- 29. Industry Competitors Potential Entrants Buyers Substitutes Suppliers
- 30. Industry Competitors • Two experienced competitors are present in the market Potential Entrants • It is not very easy to start this business, so threat of new entrants is not high Buyers •Buyers can buy the product from others companies. •Low and well-chosen prices will attract buyers, so their power on the company is not that high. Suppliers • There many suppliers of rocks, aggregates, sand and other concrete raw materials. Substitutes • Concrete can’t be substituted by any other product, • Buyers may get product from others companies.
- 31. Forces Importance(1 to 5) Threat to industry (1to 5) Weighted score Rivalry among existing firms 4 3 12 Bargaining power of suppliers 2 2 4 Bargaining power of buyers 2 3 6 Threat of new entrants 1 3 3 Threat of substitution 2 3 6 Total Weighted Score = 12 + 4 + 6 + 3 + 6 = 31 Minimum Score = 5 (very attractive) Maximum Score = 125 (very unattractive) 31 is closer to 5 than 125 so the project is fairly attractive.
- 32. Questions Very Good Good Average Bad Very Bad Total What do you think about the aggregates amount used in this sample? 12 32 5 1 0 50 What do you think about the strengths of this concrete? 30 15 3 0 2 50 What do you think about the silos? 45 4 1 0 0 50 What do you think about the prices? 29 11 8 2 0 50 What do you think about the quality? 33 7 10 0 0 50 What do you think about the delivery timing? 45 5 0 0 0 50 What do you think about the relation with the company? 39 5 4 2 0 50
- 33. A technical study has been elaborated to determine the basic specification of the project and the annual costs. Project needs have been detailed from: The fixed costs: salaries, amortization. The variable costs: these variables are divided on 3 sectors (raw material, power and maintenance). Raw materials, Working power, Machines and equipment, Human resources (managers and workers). Two kinds of costs have been shown:
- 34. Site location: the project is located in Tripoli – North Lebanon. The average total area is approximately 8.000 square meters which is only 100 m away from the main highway and it’s furnished with phone lines and water supplies. It’s possible to provide employees with the lowest possible costs. Building regularization: an erect support wall should be fixed to maintain the concrete mixer.
- 35. The raw material is put in containers which are filled by a bulldozer. Ready mixed concrete production is done by mixing: coarse aggregate, fine aggregate, sand, cement powder, chemicals and water.
- 36. The mixed product is emptied in a truck. It’s noted that the production rate is 36 meters per hour of concrete. Therefore, on the basis of maximum power on a 9 daily hours shift give us 324 meter per day. The working power of the machine is estimated to be 70% of the maximum power, the real annual production is 82,782 m ( 324 m* 365 *70% ) The factory needs electrical power, electricity will be provided by a power generator (KVA500) for operating the factory.
- 37. Product Essence: it’s produced depending on the desired type and sizes. The measuring unit is meter. Product Employment: In general it’s concentrated on the contracting sector. Taxes on revenues: The incomes are subjected to the taxes and paid to the ministry of finance and since the company is a SARL the tax is calculated as per 15% on the out coming profit after deducing the expenditures.
- 38. After studying the major specifications for running the project, the annual costs can be determined as fixed and variable costs. Variable costs: are expenses that change in proportion to the activity of a business, they are related to raw material quantity utilized in production process. The quantity is shown as bellow table: 250 300 350 400 450 Cement 23.65 28.38 33.11 37.84 42.57 Sand 7.328 6.576 5.712 5.232 4.944 Coare Agregate 1.748 1.35125 2.07575 1.8515 2.11025 Fine Agregate 1.42025 1.35125 1.38575 1.48925 1.2765 Powder 1.73 1.85 1.66 0.19 1.79 Chemicals 3.542 3.542 3.542 3.542 3.542
- 39. 8 mixers, 1 Bulldozer, 2 Pumps. Price per Unit ($) Total Price Land 250,000 250,000 Batching Plant 600,000 600,000 Mixer 45,000 8*45,000 = 360,000 Bulldozer 50,000 50,000 Pump 75,000 2*75,000 = 150,000 Office Tools 30,000 30,000 Work Tools 10,000 10,000 Build Warehouse and Rooms 60,000 60,000 Stock 100,000 100,000
- 40. Fixed costs: Amortization: in this project amortization may differ between 8% and 15%. Statement Amortization 2 ready made house 8% Concrete mixer 8% Transport machines 10% Office tools 15% Batching plant Trucks Office tools Ready made house Total Amortization Price ($) 600000 560000 30000 60000 RATE 8% 10% 15% 8% Amortization 48000 56000 4500 4800 113300
- 41. Salaries expenses: annual salaries have reached 201600 US $. Position Salary/Month ($) Engineer 2000 Accountant 800 Salesmen (2) 900/salesman Drivers (10) 1000/driver Drivers Helpers (2) 600/helper Worker (2) 500/worker
- 42. Investment (at year 0 2018) $$$ Batching Plant 600.000 Trucks 8* 45 000 mixer + 2 * 75 000+ 50.000 =560 000 Office Tools 30 000 Work Tools 10 000 Stock 100.000 Land 250.000 Build warehouse and rooms 60.000 Total Costs 1.610.000
- 43. 2012 2013 2014 2015 2016 2017 2018 200.000 100.000 100.000 100.000 100.000 360.000 50.000 50.000 50.000 50.000 30.000 10.000 50.000 50.000 250.000 60.000 960.000 200.000 150.000 150.000 150.000 0 0 TOTAL COST 1.610.000
- 44. 2013 2014 2015 2016 2017 2018 Quantity 68,400 70,452 70,520 70,554 70,554 70,554 Average price / unit 81 82 83 84 85 86 Sales 5,540,400 5,777,064 5,853,160 5,926,536 5,997,090 6,067,644 FIXED COSTS 1,451,600 1,451,600 1,451,600 1,451,600 1,451,600 1,451,600 Amortization 113,300 113,300 113,300 113,300 113,300 113,300 EBIT 3,975,500 4,212,164 4,288,260 4,361,636 4,432,190 4,502,744 Interest expenses( 5% ) 198,775 210,608.2 214,413 218,081.8 221,609.5 225,1377.2 EBT 3,776,725 4,001,555.8 4,073,847 4,143,554.2 4,210,580.5 4,277,606.8 TAX (15 %) 566,508.75 600,233.37 611,077.05 621,533.13 631,587.075 641,641.02 Cash Flow 3,210,216.25 3,401,322.43 3,462,769.95 3,522,021.07 3,578,993.425 3,635,965.78 Total revenues 20,841,288.91
- 45. 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 2013 2014 2015 2016 2017 2015 2018
- 46. Thank You !!!
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Ready Mix Concret Fesiblity study
2019, Ready Mix Concret Fesiblity study
Construction activities in Addis Ababa, Ethiopia is increasing in current years, and demand for ready mix concert have increased from years to yeas. Since providing ready concert mix have advantages in the construction projects such as in roads and buildings in the city by achieving the specified quality and time schedule for completing the concrete works in projects. Furthermore, using ready mix concrete have a significant effect in reducing the labor cost needed to produce concrete mix in the site and also order the desirable and preferred concrete mix quality with fair price. This investments have a high demand in Addis Ababa, since the city construction industry is flourishing in tremendous amount. Banks and other financial sectors are building high rise buildings and road constructions in the city and in country is increasing.
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Ready-Mix Concrete
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Concrete is a composite consisting of the following main constituents: cement, aggregates, water, and admixtures.
It is a material that can be cast into different shapes, is durable, is the most attractive construction material in terms of compressive strength (construction material with highest strength per unit cost), and its increasing use is fundamental for sustainable construction.
Concrete By Design
CEMEX does not “simply manufacture concrete”, but develops solutions based on the thorough knowledge and application of concrete technology. Leveraging years of experience, a worldwide pool of knowledge, and state-of-the-art expertise about the different concrete constituents and their interaction, CEMEX offers its customers “concrete by design”—tailor-designed concrete.
CEMEX concrete technologists are able to modify the properties of concrete through the use of innovative chemical admixtures, combined with the proper proportions of the various concrete constituents. For example, depending on the type of application and jobsite requirements, we can design concrete that is more fluid, stronger, develops strength faster, and also retains workability longer.
Through the development of chemical admixtures solutions, researchers at CEMEX’s Global Center for Technology and Innovation design special concretes that fulfill the construction industry’s increasingly demanding performance requirements. CEMEX offers a special concrete portfolio, comprised of such products as ultra rapid hardening concrete, crack-resistant/low shrinkage concrete, self-consolidating concrete (SCC), architectural concrete, pervious concrete, and a number of others.
Sustainable Benefits of Ready-Mix Concrete
We continuously work to improve the properties of concrete that make it a key component of sustainable construction: durability, resistance to aggressive environments, light reflection, and capacity to store energy, among others.
We also constantly work to develop innovative solutions that advance the sustainability of structures made with concrete. In this way, our customers can design sustainable buildings that can take advantage of the benefits of concrete in a wide range of applications.
Engineered Concrete
- Harbors and Bridges: a special design of high performance concrete combines durability and low maintenance with resistance to aggressive environments.
- Industrial Applications: concrete with high acid resistance is robust and durable for such uses as cooling towers.
Building and Housing
- Structures: self-compacting concrete improves strength and durability of building structures, while reducing energy use and noise due to concrete vibration.
- Envelope: structural lightweight concrete or Insulating Concrete Forms (ICF) offer insulation solutions to improve energy efficiency in buildings.
- Building Design: concrete’s capacity to store energy—its thermal mass—minimizes temperature fluctuations in a building over the course of the day, reducing the need for additional heating and cooling.
Water and Wastewater Management
- Pervious Pavement: pervious concrete allows rainwater to filter through and reduce flooding, while helping to decrease heat concentration.
- Water Channels: concrete water channels are used in farming to reduce the amount of water lost as it flows through fields. Locally produced concrete also provides an affordable solution.
- Potable Water and Sewage Systems: high performance concrete is used for pipes, which are affordable, long-lasting, have high structural strength, and can withstand water abrasion.
- Wastewater Treatment Plants: special cements and high technology concrete design increase chemical resistance and reducing maintenance.
Roads and Pavements
- Paving: Concrete roads are durable and need little maintenance. They require less energy for street lighting, keep urban areas cooler, and decrease the urban heat island effect.
To learn more about our resilient and efficient building solutions, visit our sustainable construction section .
CEMEX has a wide range of products and services, including technical support for its different types of ready-mix concrete. Below are a few examples of ready-mix concrete technologies with special properties and performance:
Standard ready-mix concrete.
Standard ready-mix concrete is the most common form of concrete. It is prepared for delivery at a concrete plant instead of mixed on the construction site, which guarantees the quality of the concrete.
Architectural and Decorative Concrete
This type of concrete can provide a structural function, as well as an aesthetic or decorative finish. It can offer smooth or rough surfaces or textures, as well as a variety or range of colors.
Rapid-setting Concrete
Designed to enhance early strength development, this concrete allows fast formwork removal, accelerated construction sequencing, and rapid repair for such jobs as roads and airport runways. Typically used in low temperature (5-10°C) concreting during winter, this concrete can also be used in buildings, railways, and precast applications. In addition to saving time, this concrete technology offers improved durability and acid resistance.
Fiber-reinforced Concrete
Concrete designed with micro or macro fibers can be used either for structural applications, where the fibers can potentially substitute for steel rebar reinforcement, or for reducing shrinkage—primarily early age shrinkage. Macro fibers can significantly increase the ductility of concrete, making it highly resistant to crack formation and propagation.
Fluid-fill Concrete
Fluid mortar or concrete simplifies the process of laying pipe and cable by surrounding the pipe or cable with a tightly packed shell that provides protection from the elements, prevents settling, and enables crews to work quickly.
Roller-compacted Concrete
Compacted in place and cured, roller-compacted concrete is a zero slump concrete with the abrasion resistance to withstand high velocity water—making it the material of choice for spillways and other infrastructure subject to high flow conditions. It represents a competitive solution in terms of cost and durability when compared to asphalt.
Self-consolidating Concrete (SCC)
SCC has very high flow; therefore, it is self-leveling, eliminating the need for vibration. Due to the superplasiticizers used—chemical admixtures that impart very high flow—SCC exhibits very high compaction as a result of its low air content. Consequently, SCC can have very high strengths, exceeding 50 MPa.
Pervious Concrete
Because of its unique design mix, pervious concrete is a highly porous material that allows water, particularly rainwater, to filter through, reduces flooding and heat concentration by up to 4°C, and helps to prevent skidding on wet roads. This concrete is ideally used in parking lots, footpaths, and swimming pool border applications.
Antibacterial Concrete
This concrete controls bacteria growth and is used to help maintain clean environments in structures such as hospitals, laboratories, and farms.
We take a customized and flexible approach to better serve our customers in every location where we operate.
For more detailed information about our ready-mix concrete products in your area visit the CEMEX website for your country.
Raw material used to produce concrete
Aggregates, which make up roughly 60% to 75% of ready-mix concrete’s volume, are obtained from quarries and aggregate banks.
Additives are solid or liquid chemical substances that can be added to ready-mix concrete before or during preparation. Most commonly used additives either improve a hardened concrete’s durability or reduce a concrete’s water content in an effort to shorten setting times.
This is the mix’s vital fluid, which sets of a chemical reaction when it comes into contact with the cement.
No other material rivals cement’s importance in the mix; it’s the ingredient that gives concrete its resistance. Although types II and IV are also employed, the most widely used cements are gray Portland type I and Pozzolana Portland type C-2.
Concrete mixing
During the mixing phase the different components come together to produce a uniform mass of concrete. Mixing time is registered from the moment material and water are poured into the cement mixer, and it begins rotating.
While transporting concrete to a site, the cement mixer never stops revolving at a speed of two to six rotations per minute.
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A Sample Ready Mix Concrete Plant Business Plan Template 1. Industry Overview Ready mix concrete, or RMC as it's also known, refers to concrete that is specifically batched or manufactured for customers' construction projects, and supplied to the customer on site as a single product.
Ready Mixed Concrete. Quality Control Guide. National Ready Mixed Concrete Association . 66 Canal Center Plaza, Suite 250, Alexandria, VA 22314. ... of quality level will have an important impact on the degree of risk associated with the business and the type of work which can be accepted. This part of the Manual also provides detailed
Preparation of the concrete mix; delivery of the mix to the construction site; feeding, distribution, and compaction of the mix in the formwork (molds); curing of the concrete while it is hardening; and quality control of the concrete work for - New residential construction New nonresidential construction Additions, alterations and reconstruction
So, material selection for your concrete mixer business is an important step. Step #4: Yard Set-Up. Nothing will slow your operation down more than an inefficient yard layout that will restrict the flow of the concrete trailers. Having spent many years on your side of the fence, I can help you avoid some costly mistakes.
Free Concrete Business Plan PDF Template | Starting a Concrete Business Plan Doc Free Small Business Templates and Tools Here's a collection of business tools featuring dozens of templates, books, worksheets, tools, software, checklists, videos, manuals, spreadsheets, and much more. All free to download, no strings attached.
Broadly, there are four different segments of the ready-mix concrete industry. 1. Performance-based Concrete Generally, performance-based concretes are used in projects where high effectivity is needed. This item is perfect for RCC members with intricate and complicated shapes and sizes.
Ready mix concrete batching plant - business plan Apr. 07, 2014 • 63 likes • 48,883 views Download Now Download to read offline Business Business plan for a concrete batching plant Rami Taleb Follow Working at USJ Advertisement Advertisement Recommended The 10 most promising erp solution providers 2021 (3) compressed
Ready Mix Concrete is a ready-to-use material which is a mixture of Cement, Sand, Aggregate and Water. RMC is a type of Concrete which is mixed in a batching plant according to the...
Ready-mix concrete (RMC) is a ready-to-use material, with a predetermined mixture of cement, sand, aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or as per specifications of the customer, at a centrally located batching plant.
Ready-mix concrete (RMC) is a ready-to-use material, with a predetermined mixture of cement, sand, aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or as per specifications of the customer, at a centrally located batching plant.
The paper presents a model for costing production and transportation of ready-mix-concrete (RMC) based on type of the mix and customer site information. The on-floor cost of the mix is...
Sustainable Benefits of Ready-Mix Concrete. We continuously work to improve the properties of concrete that make it a key component of sustainable construction: durability, resistance to aggressive environments, light reflection, and capacity to store energy, among others. We also constantly work to develop innovative solutions that advance the ...
The first part of the business plan is the business case to purchase the batching plant and twenty steel block mouldsto make concrete blocks you can sell. The business case is a starter pack that will produce 400 m3 of concrete per month. When you add more business ideas as our plan, the business opportunity becomes very profitable. The art of ...
Many of our Ready Mix Concrete Suppliers have been providing quality concrete supplies and services to the Bay Area for more then 25 years. Our Ready Mix Concrete Suppliers have a fleet of trucks and can provide the highest quality ready mix concrete for small and large projects. You can find professional, dependable and knowledgeable Bay Area ...
of ready mix concrete in this project which reaches 941,272 m3 make investors interested in investing in ready-mix concrete production. As stated earlier, investment decision making in a project or business sector such as the construction of the batching plant for ready mix concrete must be based on a financial feasibility study. Thus this research
The Ready Mixed Concrete in India on commercial basis started in 1994 and has achieved about 2% conversion from the site-mixed concrete by the year 2001. It is heartening that the acceptability of Ready mixed concrete is increasing though at a slow pace. The entry of foreign firms and
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A&A Ready Mixed Concrete Inc. Concrete Contractors Concrete Products Ready Mixed Concrete (1) Website More Info. 74. YEARS IN BUSINESS. 12. YEARS WITH (800) 575-5799. ... From Business: Bob's Concrete Pumping Inc. is a small organization in the concrete work contractors industry located in Parkers Prairie, MN. It opened its doors in 2007 and now…