Make a Business Plan for Green Home Building
The Department of Commerce estimates that 116 million homes, apartments and condos were operational in 2006. American home builders built 172,000 residences in 2006 that qualified as energy-efficient properties, which was a mere 12 percent of the new homes constructed that year. As old homes and apartments begin to deteriorate, property owners will look to rebuild and renovate with green materials to reduce energy usage. Before you enter the green home building field, you need to write a business plan that addresses concerns about financing, qualifications and long-term vision by prospective investors. An accurate business plan may not assure success in green home building, but it is necessary to stay competitive in this growing field.
Instructions
1. Craft a mission statement for your green home building business plan. Your mission statement should be a 1- to 2-sentence description of your company's primary goal in the building industry. For example, a home builder that specializes in solar paneling can state in his mission statement that he wants to offer affordable panels to businesses and homeowners in the surrounding county.
2. Generate a list of your green home building company's operational activities for your business description. Cite original home building, consulting, additions, renovations, landscaping and other activities in a 1-page description of your activities.
3. Consult with a marketing agency on a marketing plan for your green home building business. Your marketing plan should start with a list of target outlets for your advertisements, including hardware stores, university extension offices and tree nurseries. A marketing agency can produce samples of posters, coupons and newspaper inserts that match your company's image.
4. Conduct market research on your competition, target demographic and area population in your business plan. Investigate home builders, architectural firms and contractors that offer green building services in your region. Look at the ages, income levels and urban/suburban breakdown of prospective clients to determine which clients are likely to seek your services.
5. Explain your personnel needs in your green home building plan as part of your financial summary. In addition to listing starting personnel and salaries, list full-time and part-time personnel that will be needed for green building projects in the next five years. Bolster the personnel section of your business plan by noting payroll increases for contractors and summer workers.
6. Research costs for front-end loaders, hand packers and pickup truckers in your business plan's equipment inventory. Your business plan must point out per unit costs for green building supplies like composite siding, solar panels and wind turbines to demonstrate your green bona fides. Complete your equipment inventory by pointing out monthly costs for fuel and equipment maintenance.
7. Account for startup financing in your business plan completely to show your financial need. Create a detailed ledger of cash on hand, revolving credit lines and savings dedicated to your green home building company. Prospective investors will be more likely to invest their money if they see your company's principals have put up some of their assets.
8. Highlight loans, venture capital and investments pending approval as part of your company's business plan. Attach copies of loan applications and correspondence with venture capitalists to your plan as documentation of potential startup funding.
9. Combine your green home building company's initial expenses with your startup funding to create a long-term balance sheet. Compound costs for vehicle maintenance, building supplies, wages and building rental over three years to show minimum financial requirements. Produce an actual balance sheet to account for exiting startup capital as well as balance projections assuming infusions of venture capital and loans.
10. Finish your green home building business plan by writing the introduction and table of contents. Your introduction should be a 1-page document that hypes your company's commitment to green building materials and processes as well as your desire to become a community leader. Match page numbers from your marketing plan, equipment inventory and other sections to the table of contents to complete your plan.
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