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How To Start A Cement Distribution Business – Complete Guide

• by Next What Business Research Team
• Business Plans , Chemical , Construction
• August 30, 2024

Cement is an essential building element that serves as the cornerstone of infrastructure development. Cement consumption is still rising due to the nation’s fast urbanisation and rising construction activities. A profitable option for business owners looking to break into the construction sector is to open a cement dealership. This article offers a comprehensive how-to guide for starting a cement distribution business in India, covering important factors, licence requirements, and marketing tactics.

Table of Contents

What is a Cement Distribution Business?

A cement distribution business involves the procurement and distribution of cement products to various customers. It includes construction companies, contractors, builders, retailers, and individual consumers. In this business model, the distributor acts as an intermediary between cement manufacturers and end-users, facilitating the supply chain process and ensuring timely delivery of cement products to meet the demands of the construction industry.

Cement distribution businesses play a crucial role in the construction sector by providing a reliable source of cement products to meet the needs of wide industries. It includes infrastructure development, building construction, and other civil engineering projects. These businesses typically operate through distribution channels such as wholesalers, retailers, dealerships, and direct sales to customers.

The primary functions of a cement distribution business include:

• Procurement: Sourcing cement products directly from manufacturers or authorized distributors to ensure quality and reliability of supply.
• Inventory Management: Maintaining adequate stock of various types and grades of cement products to meet customer demands and market requirements.
• Distribution: Efficiently managing logistics and transportation to deliver cement products to customers’ locations promptly.
• Sales and Marketing: Promoting cement products through effective marketing strategies to attract customers and expand market reach.
• Customer Service: Providing excellent customer service by addressing inquiries, fulfilling orders, and resolving any issues or concerns related to product quality or delivery.

Is the Cement Distribution Business Profitable in India?

As per this report , India’s cement production reached 374.55 million tonnes in FY23, a growth rate of 6.83% year-on-year (you). Also, according to Crisil Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the highest in the last 10 years, driven by increasing spending on housing and infrastructure activities.

Yes, the cement distribution business can be profitable in India due to the country’s robust construction industry and growing infrastructure projects. Here are some factors contributing to the profitability of cement distribution businesses in India:

• Strong Demand: India is experiencing rapid urbanization and infrastructure development. It has led to a high demand for cement in the construction of residential, commercial, and industrial buildings, as well as roads, bridges, dams, and other infrastructure projects.
• Growth Potential: The government is focused on infrastructure development. Affordable housing schemes and initiatives such as Smart Cities Mission and Make in India further drive the demand for cement, creating growth opportunities for cement distribution businesses.
• Margins: Cement distribution businesses can earn margins through volume-based sales, negotiated pricing with manufacturers, and value-added services such as timely delivery, inventory management, and customer support.
• Brand Partnerships: Collaborating with reputed cement manufacturers and brands can enhance the credibility of the distribution business and attract more customers.
• Geographic Presence: Establishing a strong distribution network across different regions and urban centres allows cement distributors to tap into diverse markets.

7 Steps to Start a Cement Distribution Business

1. conduct market research.

Before starting a cement dealership business, it is essential to conduct thorough market research. You will need to understand the local demand for cement, existing competition, pricing trends, and potential customers. It is advisable to analyze factors such as population growth, infrastructure projects, real estate development, and government initiatives that influence cement consumption in your target market.

2. Create a Business Plan

Develop a comprehensive business plan outlining your objectives, target market, marketing strategies, financial projections, and operational logistics. Determine the scale of your dealership business, whether you intend to operate as a retail distributor catering to individual consumers or as a wholesale supplier serving construction companies and contractors.

3. Obtain Necessary Licenses and Registrations

To legally operate a cement dealership business in India, you need to obtain several licenses and registrations. These may include:

• Trade License: Obtain a trade license from the local municipal corporation or relevant authority.
• GST Registration: Register your business under the Goods and Services Tax (GST) regime for tax compliance.
• Udyog Aadhaar Registration: Obtain Udyog Aadhaar registration for availing benefits under various government schemes and subsidies.
• Cement Dealership License: Apply for a dealership license from the cement manufacturer or authorized distributor.

4. Secure Supply Agreements

Establish partnerships with cement manufacturers or authorized distributors to secure a reliable supply of cement products for your dealership. Negotiate favourable terms and conditions, including pricing, credit facilities, delivery schedules, and product warranties. Building strong relationships with suppliers is crucial for maintaining a consistent supply chain and meeting customer demand.

Read:   Top Cement Companies in India

5. Set Up Distribution Channels

Determine your distribution channels based on your target market and geographical reach. You may choose to operate through a physical retail outlet, online sales platform, or a combination of both. Ensure that your distribution channels are strategically located for easy accessibility and visibility to customers.

6. Arrange Funds

Determine the initial capital required to start and operate your cement dealership business. This includes expenses such as rental or purchase of premises, inventory procurement, licensing fees, marketing and promotional costs, employee salaries, and working capital.

Explore various funding options such as personal savings, bank loans , government schemes for small businesses, or partnerships with investors or financial institutions. Ensure that you have adequate funds to sustain operations during the initial phase of your business until it becomes profitable.

7. Marketing and Promotion

Develop a marketing plan to promote your cement dealership business and attract customers. Utilize both online and offline marketing channels such as social media, website, local advertising, hoardings, and participation in trade fairs or construction expos. Highlight the quality, variety, and competitive pricing of your cement products to differentiate yourself from competitors.

Frequently Asked Questions

How much capital investment is required to start a cement distribution business.

The capital investment required can vary depending on factors such as the scale of operations, infrastructure setup costs (storage facility, vehicles), initial inventory procurement, and marketing expenses. A rough estimate could range from several lakhs to a few crores of Indian Rupees.

What are the ongoing operational costs associated with a cement distribution business?

Operational costs include expenses related to storage facility maintenance, transportation, staff salaries, marketing and promotional activities, insurance, utilities, and administrative overheads.

What are the potential revenue streams for a cement distribution business?

Revenue streams primarily come from the sale of cement products to retailers, construction contractors, government projects, and other end-users. Additionally, value-added services such as transportation services, bulk orders, and logistics solutions can generate additional income.

How do I determine pricing and profit margins for cement products?

Pricing strategies may involve considering factors such as prevailing market rates, competitor pricing, transportation costs, and profit margins desired. Profit margins typically depend on negotiation with manufacturers, volume-based discounts, and operational efficiencies.

What are the challenges and risks associated with running a cement distribution business?

Challenges may include intense competition, fluctuations in cement prices, seasonality in demand, logistical challenges, regulatory compliance, and credit risks associated with customers. Developing contingency plans and maintaining strong relationships with suppliers and customers can mitigate these risks.

How can I expand and grow my cement distribution business?

Strategies for expansion may include diversifying product offerings, expanding geographic reach, investing in technology for logistics and inventory management, offering value-added services, and exploring partnerships with complementary businesses in the construction sector.

What are the prospects for the cement distribution business in India?

The prospects for the cement distribution business in India remain promising due to continued infrastructure development, urbanization, government initiatives, and growth in the construction industry. Adapting to evolving market trends and maintaining operational efficiency will be key to sustained success.

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The Ultimate Guide to Writing a Cement Production Business Plan

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Launching a successful cement production business requires meticulous planning and preparation. Before embarking on your business plan, it's crucial to navigate a comprehensive checklist that covers key aspects of market analysis, operational feasibility, and financial viability. From identifying target customers to ensuring regulatory compliance , this step-by-step guide will equip you with the necessary insights to turn your cement production idea into a thriving reality .

Steps Prior To Business Plan Writing

Conduct Thorough Market Research and Analysis

Developing a successful business plan for cement production requires a deep understanding of the cement industry and the market landscape. The first critical step in this process is to conduct a comprehensive market research and analysis. This exercise will provide valuable insights into the industry's dynamics, customer preferences, competitive positioning, and potential growth opportunities.

The cement industry is a highly competitive and capital-intensive sector, with a global market size estimated at around $333 billion in 2022 and expected to reach $424 billion by 2027, growing at a CAGR of 5.1% . It is essential to analyze the current market trends, demand patterns, and industry outlook to identify the most promising segments and target markets for your cement production business.

• Utilize industry reports, market research databases, and government data to gather comprehensive information about the cement industry, including production volumes, consumption trends, and pricing dynamics.
• Conduct primary research through customer surveys, interviews with industry experts, and focus groups to understand the specific needs, preferences, and pain points of your target customers.
• Analyze the competitive landscape by studying the market share, product offerings, pricing strategies, and marketing approaches of your direct and indirect competitors.

By conducting thorough market research and analysis, you can develop a deeper understanding of the cement production industry and identify the most promising opportunities for your business. This information will be crucial in shaping your overall business strategy, production capabilities, and marketing approach, ultimately increasing the likelihood of success for your cement production venture.

Identify Target Customers and Their Needs

Identifying the target customers and understanding their needs is a crucial step in developing a comprehensive business plan for cement production. EcoBlend Cement Solutions aims to cater to construction firms and projects focused on sustainability, offering an eco-friendly alternative to traditional cement products.

To effectively target this customer segment, it is essential to conduct thorough market research and analysis. This includes understanding the size and growth potential of the sustainable construction market, as well as the specific requirements and preferences of construction firms prioritizing green building materials.

• Analyze industry reports and data to determine the market size and growth rate for sustainable construction projects, which is expected to reach $327 billion globally by 2025 , growing at a CAGR of 10.5% .
• Gather insights from industry associations, trade shows, and customer surveys to identify the key factors driving the demand for eco-friendly cement products, such as reduced carbon footprint, recycled content, and alignment with green building certifications.
• Engage with potential customers to understand their specific needs, pain points, and decision-making criteria when selecting cement suppliers for their sustainable construction projects.

By thoroughly understanding the target customer segment and their needs, EcoBlend Cement Solutions can develop a tailored value proposition that effectively addresses their requirements. This includes highlighting the company's innovative production techniques, use of recycled materials, and commitment to environmental sustainability – all of which align with the growing trend towards green building and construction.

Furthermore, identifying the target customers and their needs will enable the company to optimize its marketing and sales strategies, ensuring that its eco-friendly cement products are effectively positioned and promoted to the right audience. This, in turn, will help EcoBlend Cement Solutions capture a significant share of the sustainable construction market and drive the adoption of its innovative cement solutions.

Assess the Competitive Landscape and Differentiation

To develop a successful business plan for cement production, it is crucial to thoroughly assess the competitive landscape and identify key differentiating factors that will set EcoBlend Cement Solutions apart from its competitors. This step involves a comprehensive analysis of the cement industry, including the market share, pricing strategies, and unique selling propositions of existing players.

According to the latest industry reports, the global cement market is expected to reach a value of $424.5 billion by 2025 , growing at a CAGR of 5.2% from 2020 to 2025 . The Asia-Pacific region is the largest cement market, accounting for over 60% of global cement consumption . Within this highly competitive landscape, EcoBlend Cement Solutions must carefully analyze the strengths, weaknesses, and strategies of its key competitors to identify opportunities for differentiation.

One of the key factors to consider is the environmental impact of cement production. The cement industry is a major contributor to global greenhouse gas emissions, accounting for approximately 8% of the world's total CO2 emissions . This presents a significant opportunity for EcoBlend Cement Solutions to differentiate itself by offering an eco-friendly alternative that aligns with the growing demand for sustainable construction materials.

• Analyze the market share, pricing, and unique selling propositions of key competitors in the cement industry.
• Identify the environmental impact of cement production and explore ways to reduce the carbon footprint of your operations.
• Develop a strong value proposition that emphasizes the eco-friendly and sustainable aspects of your cement products.

In addition to environmental considerations, EcoBlend Cement Solutions should also focus on differentiating its products in terms of quality, performance, and cost-effectiveness. By leveraging innovative production techniques and the use of recycled materials, the company can offer a unique value proposition that appeals to construction firms and projects with a strong focus on sustainability.

To further enhance its competitive position, EcoBlend Cement Solutions should also explore potential partnerships and collaborations with industry leaders, research institutions, and government agencies. These strategic alliances can provide access to advanced technologies, industry expertise, and regulatory support, ultimately strengthening the company's ability to deliver high-quality, eco-friendly cement products to the market.

Determine Production Capabilities and Resource Requirements

Assessing the production capabilities and resource requirements is a critical step in developing a comprehensive business plan for cement production. EcoBlend Cement Solutions must carefully evaluate its ability to manufacture cement that meets industry standards and the necessary resources to support its operations.

Begin by analyzing the company's current production facilities, equipment, and technology. Determine the production capacity, efficiency, and any potential bottlenecks or limitations. Assess the availability and quality of raw materials, such as limestone, clay, and other key ingredients, and ensure a reliable and sustainable supply chain.

• Conduct a thorough assessment of the company's production capabilities, including factors like production capacity, equipment efficiency, and raw material availability.
• Identify any potential production bottlenecks or limitations and develop strategies to address them.
• Ensure a reliable and sustainable supply chain for the necessary raw materials to support cement production.

Next, evaluate the energy and water requirements for cement production. Cement manufacturing is an energy-intensive process, and EcoBlend Cement Solutions must consider the availability and cost of electricity, natural gas, or other fuel sources. Additionally, water is a critical resource in cement production, and the company must assess its water usage and explore opportunities for water conservation and recycling.

Furthermore, the company must consider the human resources needed to support its cement production operations. This includes identifying the required skill sets, such as engineers, technicians, and production workers, and ensuring the availability of a qualified and experienced workforce. Additionally, the company should consider the necessary management and administrative personnel to oversee the production process, logistics, and quality control.

• Assess the energy and water requirements for cement production and explore strategies to optimize resource usage and reduce costs.
• Identify the necessary human resources, including the required skill sets and availability of a qualified workforce, to support cement production operations.
• Ensure the availability of management and administrative personnel to oversee the production process, logistics, and quality control.

By thoroughly evaluating the production capabilities and resource requirements, EcoBlend Cement Solutions can develop a comprehensive business plan that addresses the operational feasibility of its cement production and ensures the efficient and sustainable use of resources.

Evaluate the Financial Feasibility and Potential Profitability

Evaluating the financial feasibility and potential profitability of the cement production business is a crucial step in the development of a comprehensive business plan. This assessment will help determine the viability of the venture and guide the decision-making process.

To evaluate the financial feasibility, the first step is to conduct a thorough cost analysis of the cement production process. This includes identifying the capital expenditures required for setting up the production facility, as well as the operational expenses such as raw materials, energy, labor, and maintenance. It is essential to account for the economies of scale and the potential impact of technological advancements on the overall cost structure.

• Utilize industry benchmarks and data to estimate the average cost per ton of cement production , which typically ranges from $ 50 to $80 depending on the scale and efficiency of the operation.

Next, the potential revenue streams and market demand for the cement products must be carefully evaluated. This involves analyzing the pricing structure in the local and regional markets, as well as forecasting the sales volume based on the identified target customers and their projected needs. It is crucial to consider the competitive landscape and the company's ability to differentiate its products and capture a significant market share.

• Research industry reports to estimate the average cement price , which can range from $ 80 to $120 per ton depending on the market and product quality.
• Analyze the cement consumption trends in the target region, which typically grow at an annual rate of 3-5% in emerging markets.

By combining the cost and revenue projections, the company can then calculate the potential profitability of the cement production business. This includes estimating the gross profit margins , net profit margins , and the return on investment (ROI) . These financial metrics will help assess the long-term sustainability and viability of the business model.

• Aim for a gross profit margin of 30-40% and a net profit margin of 15-20% for a successful cement production business.
• Target an ROI of 15-20% to ensure the financial feasibility and attractiveness of the investment.

Additionally, it is crucial to evaluate the sensitivity of the financial projections to changes in key variables, such as input costs, market prices, and production volumes. This will help identify the critical factors that can impact the profitability and inform the development of risk mitigation strategies.

Investigate Regulatory Compliance and Industry Standards

Navigating the regulatory landscape and adhering to industry standards is a critical step in establishing a successful cement production business. As EcoBlend Cement Solutions aims to introduce an eco-friendly alternative to traditional cement, it is essential to ensure that the company's products and processes comply with all relevant regulations and meet the stringent requirements set by the cement industry.

The cement industry is heavily regulated to ensure product quality, environmental sustainability, and worker safety. At the national level, cement producers must comply with various regulations set by environmental protection agencies, occupational safety authorities, and construction material standards organizations. These regulations cover areas such as emissions control, waste management, worker training, and product certification.

For instance, the US Environmental Protection Agency (EPA) imposes strict limits on air pollutants, including particulate matter, nitrogen oxides, and sulfur dioxide, which are commonly associated with cement production. Failure to meet these emissions standards can result in hefty fines and production shutdowns. Similarly, the Occupational Safety and Health Administration (OSHA) mandates comprehensive worker safety protocols, including the use of personal protective equipment and the implementation of hazard control measures.

In addition to regulatory compliance, EcoBlend Cement Solutions must also adhere to industry-specific standards and certifications to ensure the quality and performance of its cement products. These standards are typically set by organizations such as the American Society for Testing and Materials (ASTM) and the American Concrete Institute (ACI) . Failure to meet these standards can hinder the company's ability to sell its products to construction firms and project owners who demand certified materials.

• Thoroughly research and understand all relevant regulations and industry standards that apply to cement production, including emissions, waste management, worker safety, and product certification.
• Develop a comprehensive compliance plan that outlines the specific actions and investments required to meet or exceed all regulatory and industry requirements.
• Establish a dedicated team or department responsible for monitoring regulatory changes, maintaining compliance, and ensuring the company's cement production processes and products are aligned with the latest standards.

By proactively addressing regulatory compliance and industry standards, EcoBlend Cement Solutions can differentiate itself in the market, build trust with customers, and position itself as a responsible and reliable provider of eco-friendly cement solutions. This strategic focus on compliance and standards will be a key competitive advantage for the company as it seeks to disrupt the traditional cement industry.

Develop a Sustainable Sourcing and Procurement Strategy

Developing a sustainable sourcing and procurement strategy is crucial for the success of EcoBlend Cement Solutions. The cement industry is known for its significant environmental impact, with traditional production methods contributing to high carbon emissions and resource depletion. To differentiate EcoBlend from its competitors and align with the growing demand for eco-friendly building materials, the company must prioritize sustainable sourcing and procurement practices.

One of the key aspects of EcoBlend's sustainable sourcing strategy is the use of recycled materials. The cement industry is a major consumer of natural resources, such as limestone, clay, and sand. By incorporating recycled materials, such as waste concrete, fly ash, and slag, EcoBlend can reduce the reliance on virgin raw materials and minimize the environmental impact of its production processes. According to industry reports, the use of recycled materials in cement production can lead to a 20-30% reduction in carbon emissions compared to traditional cement production methods.

• Conduct a thorough assessment of the availability and quality of recycled materials in the local and regional markets to ensure a reliable and consistent supply.
• Establish partnerships with waste management companies, construction firms, and other stakeholders to secure a steady flow of recycled materials for cement production.

In addition to the use of recycled materials, EcoBlend should also focus on sourcing renewable energy sources for its cement production facilities. The cement industry is a major consumer of energy, with electricity and fuel accounting for a significant portion of production costs. By investing in renewable energy solutions, such as solar panels or wind turbines, EcoBlend can further reduce its carbon footprint and align with the growing demand for sustainable building materials.

According to a recent industry report, the global cement industry accounts for approximately 8% of global carbon emissions , with the potential for a 30-40% reduction in emissions through the adoption of renewable energy sources and other sustainable practices . By positioning itself as a leader in sustainable cement production, EcoBlend can capitalize on this opportunity and differentiate itself in the market.

• Conduct a feasibility study to assess the potential for renewable energy integration at EcoBlend's production facilities, considering factors such as location, energy needs, and available renewable energy sources.
• Explore partnerships with renewable energy providers or consider on-site renewable energy generation to ensure a reliable and cost-effective supply of clean energy for cement production.

Finally, EcoBlend should also prioritize sustainable transportation and logistics in its sourcing and procurement strategy. The cement industry relies heavily on the transportation of raw materials, finished products, and waste. By optimizing transportation routes, utilizing energy-efficient vehicles, and exploring alternative transportation modes, such as rail or waterways, EcoBlend can further reduce its environmental impact and increase the overall sustainability of its operations.

According to a study by the International Energy Agency, the cement industry's transportation-related emissions account for approximately 10% of the sector's total emissions . By implementing sustainable transportation and logistics practices, EcoBlend can contribute to a significant reduction in the industry's environmental footprint.

Establish Partnerships and Collaborations with Key Stakeholders

Establishing strategic partnerships and collaborations with key stakeholders is a crucial step in developing a successful business plan for cement production. By forging these alliances, EcoBlend Cement Solutions can leverage the expertise, resources, and networks of industry leaders to enhance its competitive position and drive sustainable growth.

One of the primary stakeholders to consider for collaboration are construction firms and project developers. These entities are the primary customers for cement products, and by aligning with their sustainability goals and requirements, EcoBlend Cement Solutions can position itself as the preferred supplier of eco-friendly cement solutions. According to industry research, 65% of construction firms are actively seeking sustainable building materials to incorporate into their projects, presenting a significant opportunity for EcoBlend Cement Solutions .

Another key stakeholder group to engage with are raw material suppliers and logistics providers. By establishing long-term partnerships with suppliers of recycled materials, EcoBlend Cement Solutions can ensure a reliable and sustainable supply chain, mitigating risks and optimizing costs. Similarly, collaborating with logistics providers can help the company streamline its distribution network and deliver its products efficiently to construction sites.

• Engage with industry associations and trade organizations to stay updated on the latest trends, regulations, and best practices in the cement industry.
• Explore opportunities for joint research and development with academic institutions or technology partners to enhance the company's innovative capabilities.
• Seek out government agencies and policymakers to understand and comply with the regulatory landscape, as well as potential incentives or support programs for sustainable cement production.

By proactively building a network of strategic partnerships and collaborations, EcoBlend Cement Solutions can leverage the expertise and resources of its stakeholders to enhance its market positioning, improve operational efficiency, and drive the adoption of its eco-friendly cement solutions. This collaborative approach will be a key differentiator in the highly competitive cement industry and a crucial component of the company's overall business plan.

Assemble a Skilled and Experienced Management Team

Building a talented and seasoned management team is crucial for the success of your cement production business. The leadership and expertise of your key personnel can make or break your venture, as they will be responsible for strategic decision-making, operational efficiency, and overall company performance.

When assembling your cement production management team, consider the following key factors:

• Industry Experience: Seek out individuals with a proven track record in the cement industry, preferably with hands-on experience in production, supply chain management, and project delivery. Their deep understanding of the market dynamics and operational challenges will be invaluable in navigating the competitive landscape.
• Technical Expertise: Ensure that your team includes experts in cement manufacturing processes, quality control, and environmental compliance. These individuals will be responsible for optimizing production techniques, maintaining product quality, and ensuring adherence to industry standards and regulations.
• Financial Acumen: Incorporate financial professionals who can analyze the financial feasibility of your cement production venture, manage budgets, and make informed decisions to maximize profitability. Their expertise will be crucial in securing financing, managing cash flow, and evaluating the long-term viability of your business.
• Sustainability Focus: As EcoBlend Cement Solutions aims to provide an eco-friendly alternative, consider including individuals with a strong background in sustainable production practices, green building materials, and environmental impact mitigation. Their insights will be invaluable in developing and implementing your company's sustainability strategy.
• Collaborative Mindset: Seek team members who are adept at building partnerships and fostering cooperation with key stakeholders, such as suppliers, customers, and regulatory bodies. Their ability to navigate the complex cement industry ecosystem will be instrumental in establishing the necessary collaborations for the success of your business.
• Aim to assemble a diverse team that combines technical expertise, industry knowledge, financial acumen, and a shared commitment to sustainability.
• Consider recruiting experienced professionals from leading cement manufacturers or construction firms to leverage their existing networks and industry insights.
• Offer competitive compensation packages and opportunities for professional development to attract and retain top talent in the cement production industry.

By building a skilled and experienced management team, you can position your cement production business for long-term success, ensuring that your operations are efficiently managed, your products meet industry standards, and your sustainability goals are effectively implemented.

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How To Write a Winning Concrete Construction Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for concrete construction businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every concrete construction business owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is a concrete construction business plan.

A concrete construction business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Concrete Construction Business Plan?

A concrete construction business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Concrete Construction Business Plan

The following are the key components of a successful concrete construction business plan:

Executive Summary

The executive summary of a concrete construction business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your concrete construction company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your concrete construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your concrete construction firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a concrete construction business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the concrete construction industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a concrete construction business’ customers may include:

• Building contractors
• Commercial property developers

If you are targeting multiple customer segments, be sure to include information about how your company plans to market to each group.

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or concrete construction services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your concrete construction business via a combination of these marketing channels.  

Operations Plan

This part of your concrete construction business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a concrete construction business include reaching $X in sales. Other examples include hiring X number of new employees, or adding X new clients each month.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific concrete construction industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Concrete Construction Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Concrete Construction Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup concrete construction business.

Sample Cash Flow Statement for a Startup Concrete Construction Company

Finally,  include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your concrete construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any concrete construction company. The tips we’ve provided in this article should help you write a winning business plan for your concrete construction company.  

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BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA.

• Post author: Ane
• Post published: June 22, 2017
• Post category: Update
• Post comments: 0 Comments

The Demand:

Table of Contents

EXECUTIVE SUMMARY @  Business Proposal on Cement Distribution Business in Nigeria.

By the end of the first year the expected net profit/ earnings from sales before tax is N11,276,000 while net profit/earning after tax is N9,020,800, giving a 100.2% returns on investment (ROI) and 225.5% return on Equity (ROE). It is also expected to grow by 20% in subsequent years. This is shown by the expected earnings for the second year which gives N14,423,500 profit before tax and N 11,538,800 profit after tax generating 128% ROI and 228.5% ROE respectively.

The Competition:

Furthermore, the competitive edge of the business is in its ability to penetrate into the market freely, and the use of marketing strategies that will promote rapid turnover.  However, it has in mind to establish two other depots in Lagos area within the next three years. This project is highly recommendable, because judging from the above profitable measures.  It shows that the project offers good investment benefits which is found technically feasible, financially viable and economically desirable

NAME OF BUSINESS:

Nature of business:, site location:, office address:, business proposal on cement distribution business in nigeria – objective:.

•  To make cement available to the members of the public at a very affordable price.
•  To close the gap in cement product supply chain that always cause product scarcity. This will make cement available to the public at all times.
•  And focus the activities towards specific services delivery that will achieve the above objectives, and thereby to become a leader in this market.

Furthermore,

•  Generate customer satisfaction so that at least 80% of our customer base is repeat business.
•  To generate sufficient cash flow to finance the activities of the company, and the future growth and development of the company.
•  Provide key resources needed by the company and its owners.
•  To expand the business at a rate that is both challenging and manageable, and competitively enviable.
•  And maintain a Constant growth in sales in 12 months.

To become a household name in cement distribution in Lagos area of Nigeria. Achieve sales and services and profit growth goal of 20%, in the next three years.

MISSION STATEMENT:

A-Z Merchant Ltd mission is to become the recognized leader in its targeted local market in cement distribution, and to give customer optimum satisfaction, through its innovative, quality, and timely service delivery. PURPOSE OF THE BUSINESS PROPOSAL:

The aim of this plan is to set up . A-Z Merchant Ltd using only 55% loan from the investors and 45% equity. The plan is to liquidate the loan with the interest within the first three years. It is hoped that by this time. A-Z Merchant Ltd would have been able to generate enough fund to stand by itself. . Further expansion and diversification will be the subject of a Growth Model Plan.

A BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA – COMPANY PROFILE:

A-Z Merchant Ltd was incorporated on the 6th of April 2017 with RC No 2419 and a share capital of One million Naira of one Naira per share. It is made up of six directors and shareholders. The primary object clause of the company is cement distribution “to carry on business of trading, marketing, sales and distribution of general goods, such as cement and blocks, commission agents, manufacturers’ representatives, general suppliers and general contractors.”

The Federal Inland Revenue Services (FIRS) Tax Identification Number( TIN) , VAT registration Number and bank account are being processed.

The company is located at Lagos, Nigeria. It was founded by Mr. AB Merchant. A-Z Merchant Ltd is a 100% Nigerian owned company engaged in providing high end user services with latest and innovative business support solutions that add value to any new or existing businesses. It is constituted of other five directors and investors.

The management will work with a strategic blueprint that identifies the needs in the market and develop solutions to meet these needs beyond the expectations of our end users using every available communication/delivery technologies.

Names and briefs of the directors:

The board of directors are made up of, Mr. AB Merchant, CD Merchant, FH Merchant, JL Merchants, MO Merchants, RS Merchant. and YZ Merchant. They are all members of the same family. The CEO, Mr. AB Merchant is the prime mover and the key officer to drive the operations of the business.

PRODUCTS AND SERVICES:

Explained below is a description of the products offered by A-Z Merchant Lt d .

Wholesale Distribution of Dangote Cement:

The primary revenue source for the business will come from the wholesale of Dangote cement to the general public. The Managing Director Mr. AB Merhant intends to carry out multiple strategic marketing activities that will promote the distribution business which will generate high turnover for the business. He intends to source inventories/stock from the Dangote cement factory in Abajana, Kogi State, Nigeria.

Four employees (which include one Supervisor, one security man, one sales attendant, one driver) will be involved in the business operations and to assist customers with their needs.

Dangote Cement is a fully integrated cement company and has projects and operations in Nigeria and 14 other African countries. Its operations include, manufacturing/ importation, packaging and distribution of cements.

The Obajana Cement Plant (OCP) located in Kogi State is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25MMTPA.

Dangote Cement is also the biggest quoted company in West Africa and the only Nigerian company on the Forbes Global 2000 Companies.

CUSTOMER NEEDS:

The market characteristics show that there is steady demand for the commodity. Our survey also reveal that over 60% of the buyers ask for Dangote brand of cement. The fact that there is housing deficit and people are eager to have roof over their heads promotes the demand for cement. The location of this business is going to be in Lekki and later in Badagiri where there are a lot of building construction going on at all times.  In fact,  A-Z Merchant Ltd will sale to both retailers and direct consumers who could buy not less than 100 bags at a time.

One known fact about cement business is that it has a stable retail price which apply generally to all marketers. It is not foreseeable that a single wholesaler will be able to manipulate the price of the commodity. In such a price taker market, marketers make other marketing efforts to promote sales instead of price cut.

A-Z Merchant Ltd will take the following measure to promote sales:

• Good publicity fliers, posters, and sign- posts
•  Regular visits to customers, construction sites etc.
• Retailers friendship – good public relations with retailers, this will make him form a clique of retailers that he can always count on.

   PROMOTIONS PLAN:

The long-range goal is to gain enough visibility to leverage upon so that A-Z Merchant Ltd will be able to expand with additional two warehouses in other parts of Lagos within its three years of existence.

The unique marketing approach / analysis using word of mouth, free gifts, loyalty cards, special offers will be applied. A special awareness contact marketing will be carried out by a dedicated staff within the first two months of the start-up of the business.

BASIC ASSUMPTIONS @ Business Proposal on Cement Distribution Business in Nigeria :

• This investment business plan and feasibility study, is anchored on the following critical assumptions:
• A-Z Merchant Ltd will have an annual turnover of N405,600,000.00 in the first year with growth rate of 20% per year in subsequent years.
• The Owner (Mr. AB Merchant) will acquire N5,000,000 of debt funds and personal equity contribution of N3,000,000. In addition to the N1,000,000 authorized share capital fully subscribed, to grow and develop the business.
• The loan will have a 3 year term with a 25% interest rate. Repayment of 33.33% of the loan annually while interest accrues only on the outstanding loan annually.
• Some macro-economic indicators like the price level and exchange rate will remain stable.  At least, in the next one year, and that even when prices change, cement always maintain a constant rate of return..
• Democracy will continue to thrive thereby engendering political stability necessary for socio-economic growth and development.

The present macro-economic indicators, (economy-wide trends), government economic policies and the conditions peculiar to cement trading business in Nigeria provide reasonable assurance that the assumptions are realistic and will hold. Therefore, one is assured that some of the necessary conditions for the unhindered operations of A-Z Merchant Ltd. can be guaranteed.

Business Proposal on Cement Distribution Business in Nigeria – MANAGEMENT TEAM:

• This will be made up of the Managing Director Mr. AB Merchant and the following;
• Supervisor = 1 person
•  Sales Man/Girl = 1 people
• Driver = 1 person
• Security = 1 person

Activities are scheduled as follows:

· Start-up capital to be ready by 5th July, 2017 · Every preparations to be concluded by 26th July, 2017 · The business to start off 1st August 2017 · Acquisition and disposal of five truck load of cement each week. · Opening of two other branches within or after three years. · Sales promotion activities at construction sites.

SWOT ANALYSIS:

The proposed A_Z Merchants Ltd is going to be located in Lekki, Badagiri and Egbeda areas of Lagos where there are a lot of competitors.

A SWOT analysis carried out on the project reveals the following:

•  A_Z Merchants Ltd is a new comer in the business.
•  The source of product supply is Abajana in Kogi state
•  The choice of selling only Dangote cement for now.

A BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA.

OPPORTUNITIES

The external environmental analysis reveals certain new opportunities for profit and growth of the business. Some examples of such opportunities include:

•  The market trends favours Dangote Cement brand
•  Households, social organizations favours relocation to Lekki and Badagiri
•  Market trend reveals an all-year-round demand

Changes in the external environment also may present threats to the business. Some examples of such threats include:

• The presence of other variety of product in the market
• Environment and Health regulations agency threats
• Tendency of existence/emergence of price war
• Lack of market entry barriers.

BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA – MARKET ANALYSIS:

We identify cement distribution business as non-gender sensitive. What we have found out is that every human needs house to live in. We have identified that every one from the age of twenty upwards wants to own a personal house. There are five key factors that drive the demand for cement in Lagos:

• Every family needs a roof over her head.
• And, every grown up person; ages 20 and above need to be in his/her house.
• Governments (Local, State, and Federal) embark on infrastructural development efforts
• Estate investors continue to build more houses.
• Urban growth – Lagos has continued to grow and develop all round.
• Social organizations like Churches, Mosques build regularlly

Segment Expected Demand:

•  Constructions firms 20%
• Block moulding firms 25%
• Government agencies 15%
• Households 8%
• Estate owners and managers 15%
• Retailers 7%
• Social organizations 10%

BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA – MARKET PLAN

Since cement business is a standard price market , that is to say, a price taker, A_Z Merchants Ltd will adopt various service delivery strategies to attract and sustain customer loyalty. These will be in the form of:

• Use of the business van to deliver goods to customers
• Making bulk delivery direct to customers sites
• And, making flexible purchase plan for customers’

MARKETING OBJECTIVES:

Marketing objectives are to:

• Attract buyers
• Increase turnover
• Create customer
• Create customer satisfaction.

MARKETING STRATEGIES:

A_Z Merchants Ltd will apply a lot of marketing strategies which will aim at increased turnover. These will include:

1. Good public relations

2. Advertising methods – distribution of fliers, use of banners etc.

3. Sales incentives like free delivery service, advisory services etc.

BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA – FINANCIAL ANALYSIS:

In order to carry out this project, plans on how to raise the venture capital are stated below.

Table: Source of Funds:

REQUIRED START-UP CAPITAL

FIXED CAPITAL INVESTMENTS/EXPENSES:

Table: Fixed Capital Investment

OPERATING EXPENSES:

FINANCIAL PROJECTIONS

MARKET DEMAND ASSUMPTIONS: In this proposal.

Estimate: 5 Trucks must be sold per week

Growth rate is 20% in year 2 and 3

BREAK EVEN ANALYSIS:

Break even analysis based on sale of number of trucks per week for 52 weeks of the year. The monetary values are in Naira.

From these break even analysis:

• The company must not sell less than 5 trucks in a month
• As a distributive trade all start-up expenses are considered as fixed
• The company intends to expand within 3 years with additional 2 branches
• The Business Plan is bench marking 5 trucks per week for 52 weeks of the year.  This will enable proper utilization of borrowed fund and make it achieve its objectives
• Because most of the fixed costs are due towards the year end, the company can increase its turnover and earnings above 5 trucks a week for 52 weeks in the year without incurring further costs.

Business Proposal on Cement Distribution Business in Nigeria – BUSINESS RATIOS:

All the business ratios generated in this business proposal are shown in this table

Economically, this business will not only create wealth and benefits to its promoters, the project will fetch its entrepreneur’s good financial resources for business expansion.

Business Proposal on Cement Distribution Business in Nigeria – CONCLUSION

Based on the projections of A_Z Merchants Ltd above, the project has a very good chance to be financially successful. More importantly is the positive economic impact it will have in the lives of the people of Lekki and its environs.

The management is free to make their expansion decisions after three years of operations.

Keep in touch by sending in your comments, sign up for regular post into your mails,click any of the social media buttons above to like us or follow us.

If you like this and need our services , make contacts. [email protected] or +234 8034347851

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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Concrete Contracting Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » B2B Industry » General Supply & Contracting

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.

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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 stakeholders.

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 corporate 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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A BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA

This proposal is for establishment of cement distribution company, details of its start-up operations and the raising of additional N3,000,000 for its operations. In fact, the high demand for cement in Nigeria for both private, industrial and government infrastructural development needs entails that there has always been a continual need for cement distributors all over the country at all times. As a matter of fact, the problem of inadequate housing for the teeming population of approximately 180 million Nigerians is getting even more complicated as the years go by. The housing deficit at the moment is put at about 17 million units. In short, this shows that the market is large enough to accommodate more new comers. SAMEZ VENTURE is going to be a wholesale distributor in this market. Its marketing strategy entails that it does not stock the commodity for more than two days.

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OMONIYI BASHIR

A business whether small or big, simple of complex, private or public is created to provide competitive prices. Business in Nigeria, has been classified as small, medium and large. In both the developed and developing countries, the government is turning to small and medium scale industries, as a means of economic development and a veritable means of solving problems. It is also a seedbed of innovations, inventions and employment. Presently in Nigeria, SMEs assist in promoting the growth of the country's economy, hence all the levels of government at different times has policies which promote the growth and sustenance of SMEs. Small scale industry orientation is part of the Nigerian history. Evidence abound in the communities of what successes our great grand parents, made of their respective trading concerns, yam barns, cottage industries, and the likes. Abstract-A business whether small or big, simple of complex, private or public is created to provide competitive prices. Business in Nigeria, has been classified as small, medium and large. In both the developed and developing countries, the government is turning to small and medium scale industries, as a means of economic development and a veritable means of solving problems. It is also a seedbed of innovations, inventions and employment. Presently in Nigeria, SMEs assist in promoting the growth of the country's economy, hence all the levels of government at different times has policies which promote the growth and sustenance of SMEs. Small scale industry orientation is part of the Nigerian history. Evidence abound in the communities of what successes our great grand parents, made of their respective trading concerns, yam barns, cottage industries, and the likes. This paper identifies the historical development and orientation of SMEs in Nigeria, tackles the operational definition and scope, describes the role of the Nigerian government as a participant, regulator and facilitator, both legally and politically in the growth of SMEs. It identifies the marketing problems of SMEs in Nigeria, the provision and enactment of beneficial and supportive laws, the provision of infrastructural facilities, constant manpower and development, direct financial assistance and the establishment of finance institutions to support SMEs. It identifies the roles of SMEs in Nigeria's development and growth. It concludes by clearly specifying the role of marketing to the survival of SMEs in Nigeria, and Advances relevant recommendations. For SMEs to survive marketing practice and principles must be given prominence.This paper will use the secondary data and sure empirical data collected from research studies in SME development in Nigeria.

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Regional market integration and value chain development are seen as key to promoting economic transformation across African countries. This study looks at cement in West Africa to better understand the challenges of this agenda. Cement is a key sector in West Africa in terms of value addition to low-value minerals, construction sector employment, and high levels of public spending. Despite regional trade and industrialisation policies and rising cement investments, prices remain nearly three times the world average. ECOWAS commitments to liberalise regional trade in cement and clinker are undermined by national measures to limit imports, often under pressure from a major industry player. As such, trade policy and trade dynamics are inherently tied up with company strategies and the political weight that these producers exert. Disentangling state business relations and political concerns within and between countries, and across sectors including transport and energy, are all key to understanding the region’s cement market and for assessing the potential of promoting industrial, infrastructural and social development through the cement value chain.

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Proposal on Cement Distribution Business in Babile

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