Concrete Block Business Plan

Learn about our concrete block business plan by using our business planning tool

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Concrete Block Business Plan

Done For You Business Plans

This article is for people wishing to purchase a concrete batching plant and plan to make the correct purchase decision. We have also completed some done for you business plan examples.

Click on a links below to review them.

 

  1. Business plan example
  2. Interlocking business plan – net profit of >£200k
  3. Concrete to collect business plan – net profit of >£350k.
  4. Onsite batching business plan v net profit of >£500k
  5. Recycled concrete building block business plan – net profit of >£1m

How To Create Your Business Plan

Interlocking Block Business Plan

Concrete interlocking blocks are very popular can be used for many construction structures. For example material bays, retaining walls, buildings, temporary structures, for example, piling mats.

 

Executive Summary

By selling the interlocking blocks as retaining walls, you can add value by selling them as a solution rather than a commodity.

The business plan casts seventy interlocking blocks per day. The quantity of concrete is 50 m3 per day.

The batching plant we have selected is the 1800 model with a capacity of 25 m3 per hour. The daily output is 400 m3. 

The extra capacity can produce other pre-cast concrete products or be sold by supplying concrete to construction sites and creating a concrete to collect business.

The breakeven volume of concrete to be sold each day is 14% of capacity, 35 m3 or 700 m3 per month.

When the plant runs at 40% capacity, the net profit with finance is £376,000 and without finance £436,000. You can review the table below to see the full range of capabilities and net profits.

To see how the business planning tool works, watch the video above.

 

The Done For You Business Plan

The done for you business plan is built up using a spreadsheet we have developed to make the process simple and easy. It can take just ten minutes to complete if all the data we need is at hand.

The business plan is based on the UK market and uses pounds as the currency. The business plan can be adjusted to use any currency and any market data.

The capacity we have allowed for the done for you business plan is 20%. We wanted to make a realistic business plan that can be developed over a period of time to deliver higher profits.

 

Profit & Loss

  1. Sales = £1,109,100
  2. Cost of sales = £660,034
  3. Gross Profit = £449,065
  4. Overhead = £240,024
  5. Net profit =£209,041

 

Variable Costs

The variable costs within the business plan are the costs of materials; these are mainly cement, sand, aggregate and chemicals. The business plan uses the cost to produce the concrete from the sales cost to give the variable cost. We have included a calculator to work out the cost for various concrete design strengths for accuracy.

 

Plant List

The plant list includes everything you need to manufacture large quantities of interlocking blocks.

  • FS1800 batching plant
  • 25-ton cement silo
  • Concrete elevator
  • Second-hand forklift truck
  • Second-hand bucket loader
  • 30 600 x 600 x 1800 moulds
  • 30 800 x 800 x 1600 moulds
  • 10 600 x 300 x 1800 moulds
  • Mould magnets, lifting bolts
  • Lifting clamp
  • Block turner

The plant list is costed out to allow us to work out the monthly finance required to purchase it. The monthly finance is then added to the overhead within the business plan.

People

The business will need people to run it. We have allowed for:

  • One sales manager
  • One transport and admin manager
  • Three operatives to make the blocks and produce concrete.

As more capacity is added to the business plan, more operatives can be added.

 

Overheads

The overhead sheet adds the people section automatically. We have then added overhead costs to run the business, such as fuel, office rent, marketing, banking, and finance. The overhead costs can be adjusted to suit your business. 

 

Sales

The sales section of the business plan is the ultimate test to see if the plan will work.

It is vital that we know the market and the prices the market can take for the products and services being sold.

The model’s sales prices are based on the UK market and are accurate at the time of producing the plan. (2021)

From experience, we know each country is different, and the margin on concrete is different. We have designed our business planning tool to allow you to see if you can develop a good business in your country. We are here to help you.

 

Results

The table below shows you the business potential of producing interlocking blocks and selling the spare capacity of concrete at various capacity outputs.

What to do next

The next step is to review some of our done for you business plans and complete the form on the page or this page. We will then get in touch with you, and we can complete your business plan together. It usually only takes 30 minutes if you have all the information at hand.

Your Fibo Business Consultant

Hi, My name is Martin Fischer. I am more than happy to go through the business planning process with you. Why buy a plant if it does not earn you money?

Complete this form, and I will make time to help you develop a sustainable concrete business plan. We are an international business and can speak many languages. I am looking forward to our call.

Thanks, Martin.

Complete the form and we will make contact with you to discus your requirements or to answer any questions you may have. Alternatively chat to use using the WhatsApp chat on the page.

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