Masonry Contractor Business Plan and SWOT Analysis

Masonry Contractor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Masonry Contractor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Masonry Contractor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

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Placing the stone in homes and on commercial properties is a very difficult job. As such, many people turn to masonry contractors in order to render the services on their behalf. Most masonry contractors are able to produce revenues in most economic climates given that stone structures are very important for most homes and businesses. Additionally, homes that feature substantial amount of masonry work typically belong to higher income and higher net worth individuals. As such, the target market typically has a higher degree of economic staying power and can continue to afford services provided by masonry contractors in any economic climate.

The barriers to entry for new masonry contractor business are relatively high given the fact that most people have to go through a significant apprenticeship in order to properly be able to produce, fabricate, and install stone structures. The startup costs associated with the new masonry contracting business can vary but usually they cost around $100,000 to $200,000 to launch operations. The nice thing about these businesses is that they are able to produce income not only from repair and maintenance but also from the sale and installation of stone structures as well. The ongoing maintenance of stone installations allows these businesses always produce revenues even during times of economic recession.

As this is a contracting business, most financial institutions are happy to provide a business loan, working capital line of credit, or equipment financing leases to masonry contracting businesses. Of course, a masonry contractor business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. Special attention within the business plan should be paid to the amount of collateral that will be provided to the financial institution with the debt proceeds. A list of equipment as well as any trucks or vehicles are going to be purchased should be included within the business plan. A demographic analysis showcasing the median household net worth, median annual household income, amount of money spent on stone structures each year, population size, and population density should be included within this document as well. As it relates to doing the competitive analysis, an overview of other masons in the market as well as general contractors should be included in order to understand the level of saturation.

A masonry contractor SWOT analysis should also be produced. As it relates to strengths, these businesses are able to produce income not only from new stone installations but also from ongoing maintenance. These maintenance contracts can provide highly predictable streams of revenue for the business especially if they are secured among property management firms. The barriers to entry or concert immoderate as are the startup costs. The gross margins from services is typically around 90% while the gross margins from sales of stone products typically is around 60%.

For weaknesses, during times of economic recession the demand for new stone installations will decline. As such, these businesses do tend to be less profitable during deleterious economic conditions. However, they are able to remain profitable given the fact that people are always going to require maintenance for their stone structures.

For opportunities, these businesses can expand by simply hiring additional qualified masons to render a greater number of services to a larger market. Some individual entrepreneurs will also acquire existing masonry contracting businesses in order to ensure that they can grow through acquisition and not just organic means.

For threats, there’s really nothing that is going to impact the way that these businesses conduct their operations. Stone masons are always going to be a strong demand in any economic climate especially among areas and have a very wealthy population.

A masonry contractor marketing plan also needs to be developed in order to ensure that not only the general public but also real estate developers and general contractors are aware of the business is brand-name. Foremost, many masonry contractors already have established contacts with real estate developers, property management firms, and general contractors within the target market. This can be an exciting source of initial revenues for the business especially as general contractors will provide the business with contracts on a subcontracted capacity. Real estate developers also frequently require the use of a masonry contractor not only for the development of homes but also for on-site landscaping services that require the installation of stone structures. This is the way that many masonry contractors initially launch their operations very quickly.

Beyond marketing to other businesses, the masonry contractor will generally market their services to the general public as well. This is primarily done through the use of an online website that showcases previous work completed by the business, pricing information, type system available, contact information, and certain amounts of preliminary pricing information. Many masonry contractors will also maintain a presence on social media platforms including FaceBook and Twitter in order to show previous work they have completed previously. Over time, by maintaining a social media can be found more quickly not only among people that use social media but also among search engine results as well. Strong search engine optimization often occurs when an individual engages both their proprietary website as well as social media platforms.

Some entrepreneurs will also distribute mailers to selected households that are known to have a higher net worth or higher income. Again as these individuals are less swayed by negative changes in the economy, they are more likely to make these purchases on an ongoing basis.

Masonry contracting will always remain popular especially in wealthy areas given that many homes that often have a cost of more than $1 million frequently feature elaborate stone structures. As such, these installations always require maintenance and from time to time homeowners are going to want to put new installations on their properties. This is going to continue to be one of the ways that these businesses grow moving forward.