How to organize a business for the installation of heating systems

My home is my castle. Housing is one of the basic human needs. The first man’s house was a cave, then a hut. Today we live in comfortable apartments and individual households. It would seem that many centuries of evolution have paved an insurmountable chasm between modern ancient houses and they cannot have anything in common. However, there are still more similarities than it might seem at first glance. And one of them is warmth. In the cold, a person – today, like thirty thousand years ago – is uncomfortable. A strong and prolonged cold may well be a threat to life. For this reason, we try to heat our home. In the cave, a fire was the means of heating. Heating systems have evolved over time. There were also fireplaces heated by coal and wood. There was steam heating. Today, water heating is most often used;

According to one of the definitions, a heating system is a set of technical elements designed to receive, transfer and transfer to all heated rooms the amount of heat necessary to maintain the temperature at a given level.

What are these elements? To obtain heat, sources of various sizes and levels of technical complexity can be used – from thermal power plants and nuclear power plants to wall-mounted gas boilers. As a means of transfer, piping systems filled with heat carriers are used – as a rule, liquids with a high heat capacity and low viscosity. In most cases, ordinary water is used. The transfer of heat from the coolant directly into the atmosphere of the room occurs through heating radiators – cast iron, steel, aluminum or bimetallic. All together, as mentioned earlier, these elements constitute a heating system.

Another important human need is the need for water. To meet this need, a water supply system was created that delivers sufficient water to our homes for drinking and domestic needs. The pipeline is also a means of transporting water, which makes heating and water supply systems essentially similar.

It is for this reason that heating and water supply often coexist with each other – when studying at universities, in the structure of departments of design institutes, in the lists of services of installation organizations, or otherwise – installers of engineering systems. We will talk about the latter in detail in this article.

The engineering systems market is quite clearly diversified: there are design organizations, there are suppliers of engineering equipment and tools, and there are installation organizations. In rare cases, two, extremely rarely – three functions are combined within one organization. Usually there is an efficient division of labor.

The tasks of the installation organization are the purchase of equipment, its installation according to the existing project and the subsequent maintenance of the system. Nothing complicated, it would seem. However, not everything is so simple. As in many other industries and business areas, personnel is everything here. You can use the best tools and only work with the best suppliers, but spoil all this glamor with a lack of skilled workers. Therefore, the most important task of an entrepreneur who decides to invest in opening an installation organization for heating and water supply systems is the selection of highly qualified specialists. And here we are talking not only about the possession of one or another editing technique and the availability of experience, but about the adequacy and learning ability. Today, products and technologies are rapidly evolving, and their manufacturers and suppliers hold seminars and workshops for specialists, so you need to constantly be aware of the news and stay in trend. This will provide the company with high competitiveness.

Installation organizations can be classified according to a huge number of features, which indicates ample opportunities for specialization, which, in turn, indicates the presence of a large number of large areas and narrow niches with completely different levels of competition and profitability. For example, according to the sectoral affiliation of customers, the market is segmented as follows: 30% – the primary construction market, 25% – operating organizations of housing and communal services, 10% – construction and repair of industrial enterprises, 35% – retail and intermediaries. As a rule, installers form a sales structure, focusing on their own connections and capabilities. For example, if the founder has connections in the housing and communal services sector, 90% of his turnover will fall on this area. As practice shows, it is the housing and communal services that are by far the most corrupt,

In addition, when repairing existing networks, poor-quality materials are used in the bulk, which will make it possible to repeat the repair of the same section for new kickbacks after a while.

New construction is a different matter. Typically, subcontracting issues are resolved here through tenders. You can win not only due to a low price, but also by offering a more complete set of services than competitors, a guarantee, etc. Of course, there is no getting away without kickbacks, such is the bitter truth. But in fairness, it is worth recognizing that this method of achieving results is being used less and less today. Personal acquaintances also play an important role: not all builders choose subcontractors on a competitive basis.

And yet, despite the crisis, the volume of new construction continues to grow. According to some reports, their growth is limited to 1-2% of real estate funds, but in the current economic and political situation, this is a good indicator. In addition, developers strive to build a long-term business, which requires a good reputation. Engineering systems, with their low relative cost (up to 5% of total construction costs), have a very significant impact on the comfort of residents. Therefore, they try to save on them less and less.

As for the retail market (retail refers to the installation and repair of heating and water supply systems for private customers), it is both interesting and complex. If the entrepreneur does not plan to limit himself to orders only through word of mouth, you need to be puzzled by opening an office (about 30,000 rubles per month) and a small warehouse of materials. This is ideal. Having a proven supplier of materials and equipment, as they say, at hand, you can completely refuse to freeze money in stock. For office work, a sales manager will be enough to answer incoming calls and advise visitors. It would be superfluous to remind that the manager must be more or less tolerably versed in the proposed equipment and installation technology.

The main difficulty in this segment is the need to find an individual approach to each client. In order to make yourself known, you need large-scale advertising – as a rule, in specialized print media, the Internet. When entering the market, the advertising budget should be at least 50,000 rubles a month, in the event that, of course, the founder plans to overcome the break-even point during the first year of operation.

When choosing a direction, it should be remembered that new construction means lower profitability, but, in case of obtaining a contract, it means job security for a long period, during which you can participate in a number of other tenders, providing yourself with work ahead of time. The retail market is heterogeneous, more sensitive to economic and social disturbances – in a word, more capricious.

Next, you should decide on the market segment (economy, standard or premium) and the materials and technologies used. This gives a few more possibilities for differentiation. The price segment will certainly set the limits for the choice of materials and technologies, but only up to a certain limit. In the middle price category, for example, imported polypropylene pipes and metal-plastic pipes with two or three types of connections can compete. Each of the types will require knowledge of the technology and the availability of an appropriate tool, the cost of which can reach several thousand euros. Although the installation team of average hand manages with the simplest – manual – tool; the more expensive and efficient ones – electric or electro-hydraulic – can usually be rented from an engineering equipment supplier. You will also need a general construction tool – a grinder, a puncher, and so on. The entire set for one brigade will cost about 100 thousand rubles. The optimal number of people in the team is 2-3 people. The number of teams will depend on the expected scope of work.

It is quite logical that the installer earns at the expense of the work performed. The average installer has practically no opportunity to make an extra charge on materials. The profitability of installation work is on average 15-18%. Thus, with the sum of monthly fixed costs for advertising, office and staff maintenance of 150-170 thousand rubles, the monthly revenue should be at least 1 million rubles. This figure at current rates for work is quite easily achievable. For example, the installation of a circulation pump today costs about 5,000 rubles, the installation of one heating radiator costs 2,500 rubles, and a ball valve costs from 500 to 1,000 rubles, depending on the diameter.

Additional profit in the presence of an office will be provided by retail trade in components for heating and water supply systems. In this case, you can set a retail margin of up to 20% on average. The most effective location of the office-shop will be within a large construction market. Installation of sewerage systems can also provide additional income. In the main part of the article, this direction was not considered due to the ease of installation and rather low profitability.

The most appropriate organizational and legal form for this type of organization is, perhaps, an individual entrepreneur operating under a simplified taxation system; In this case, the tax base will be income reduced by the amount of expenses. The store will be taxed only under the UTII system (single tax on imputed income) in accordance with legally established physical indicators; in other words, the amount of tax payments will directly depend on the area occupied by the store.

Since 2008, the law on self-regulatory organizations (SROs) has been in force in the Russian Federation. Its essence lies in the fact that the state actually transfers the function of regulating the construction market to its participants – construction, survey and design organizations. Market participants must join SROs, which independently analyze the activities of their members in order to ensure that their actions comply with the law; in case of violation of this SRO has the right to apply disciplinary measures to the violator. Such measures, first of all, include a monetary fine. The funds are withdrawn from the contribution to the compensation fund, which the organization makes when joining a self-regulatory organization. The amount of the contribution is 300,000 rubles, which must also be taken into account when planning investment costs.

Own business: construction of baths

Financial calculation: real estate agency