Own business: cottage construction

Today, not everyone can afford to buy their own housing, but modern construction methods suggest the ability to build their own home for a relatively small price. Such a method, for example, is frame construction, but not every person is interested in this method, which also has its drawbacks. Recently, the so-called cottage construction is being carried out more and more often, and the consumer ultimately receives a fully comfortable house for a fairly affordable price. Most often, cottages are built outside of big cities, but relatively close to them, which allows buyers to live essentially in the countryside, but work in large metropolitan areas. 

An entrepreneur who is engaged in cottage construction saves on the fact that he buys out a fairly large plot for construction, and thus saves the territory by placing the houses very close to each other. Thanks to complex construction, all costs are reduced, and the customer receives inexpensive housing, because its cost is quite low. But in any case, investments in such a project will be multimillion-dollar, so a businessman must either have his own large capital, or initially look for investors for his undertaking.

In large cities, many construction companies are engaged in cottage construction, however, given the huge pace of construction in general in many cities, we can say that today even a start-up company can receive an order for the construction of a cottage village, while thanks to cottage villages, the city is expanding, and under they are constantly allocated new territories. In this regard, despite the rather high level of competition, one can count on the fact that it will be possible to take its place in this market. However, you need to understand that in order to make a successful business in this area and always stay on the market, you can only if the entrepreneur offers his customers more favorable conditions than competitors. Therefore, you should first carefully study the market, the proposals of all companies and analyze, whether the new offer will be of interest to consumers, or whether people do not need new services, or rather, the services of a new company that is unknown to anyone and does not yet have a reputation. Otherwise, the difficulties will be the same as for any start-up construction company.

To start your work, you must register as a business entity. It is best to register a legal entity, and the preferred form is a limited liability company. It is in this case that a simplified taxation system will be available, which allows transferring no more than 6 percent of income or 15 percent of operating profit to the state. The registration procedure can take about a month and will require about twenty thousand rubles for payment of all services. Also, for work, you will need to correctly indicate OKVED codes, and such activities fall under the definition of several classifiers at once, it is best to take them from the group (OKPD 2) 42 Structures and construction work in the field of civil engineering.

It should also be noted that currently it is not required to obtain a construction license, however, for legal activity, it is necessary to join a self-regulatory organization. Therefore, the entrepreneur himself is free to choose with whom to start cooperation. The conditions for joining each organization may be slightly different, so it makes sense to study all the available offers before starting work.

There are two main ways for an entrepreneur to enter such a business. Most often, cottage construction is carried out by buying out a huge plot of land for its development, followed by the sale of ready-made cottages to private individuals. Although another way of earning can be used, for this the entrepreneur places his offer and builds on the territory of the customer; that is, in this case, the construction company performs only the construction of the building on the already finished land. 

It is the sale of cottages on their own land that brings much more income, and the point here is not the higher cost of the final project for the consumer, but precisely due to mass construction, that is, saving on land and materials. However, the amount of investment in such an undertaking is several orders of magnitude larger, moreover, by carrying out construction only after agreement with the customer, you can receive an advance payment, which means that you can significantly reduce the amount of your own funds invested in construction. 

If an entrepreneur has sufficient investments, it is advisable for him to turn to the construction of a whole cottage village. To do this, the first step is to find suitable land, and it is best to choose an area near a large city, and even better – on its outskirts. The size of the plot may vary depending on the capabilities of the businessman, but it is almost always several hectares, because you need a place not only to accommodate residential buildings, but also for laying roads, building infrastructure and supplying communications. 

By the way, initially you need to look for a place closest to the general communications node, because their supply can be very costly if the central systems are located several kilometers or even tens of kilometers from the future village. This is another reason why cottage settlements are located near other settlements. General construction preparatory work for arranging the site can be a significant part of the budget, but the consumer ultimately pays for these costs, and the entrepreneur can add an extra charge. 

The site is also selected depending on its suitability for construction, because sometimes it is not advisable to carry out a huge set of preparation works. An entrepreneur at this stage can turn to a third-party construction company that is mainly engaged in land work, so as not to purchase expensive equipment or rent it, and also not to hire certain categories of workers. Even in this case, the businessman has an advantage due to the fact that he orders a large set of works, which means he can count on some discount from a third-party company.

Today, there are many ways to build cottages, while new, more advanced and cost-effective ones are constantly appearing. However, a cottage is usually understood as the construction of a permanent structure, so you need to obtain all the necessary permits for the construction procedure. For this, site plans are drawn up, all construction documentation is collected and transferred to a large number of departments (Urban Planning, Architecture, etc.). Usually, a self-regulatory organization in which the entrepreneur’s firm is a member can provide significant support and assistance in this matter. However, one way or another, consumers are used to the fact that the cottage is a full-fledged house, and therefore either aerated concrete or brick is used as the main material. Both materials have their advantages and disadvantages, but aerated concrete is somewhat cheaper, and this often becomes a determining factor for the consumer. Some construction companies are building cottages from aerated concrete lined with bricks, which should ideally give the advantages of a brick house, combined with some savings. However, there are cottages built using wooden structures or sandwich panels, sometimes you can even come across offers of frame construction. 

The peculiarity of the construction of the cottage is that it is being built in a few months, unlike a full-fledged brick house, the construction of which often takes more than a year. The cost of one square meter of a cottage is about 20 thousand rubles, but even a slight change in this price may lead to an outflow of consumers or, on the contrary, increase their interest.

For full-fledged work, specialized equipment will be required, but the list of auxiliary equipment may vary depending on the technology used. If a plan is developed according to which there is no need for the constant use of construction equipment, then it can simply be rented as needed. Cottage construction is usually low-rise, so large-sized and expensive equipment is usually not required. 

You also need to pay a lot of attention to the selection of personnel. The entrepreneur must hire not only directly builders and foremen, but also architects, engineers, designers, although all business processes that are not related to making a profit by the organization should be outsourced. It is necessary to have not only a permanent team, but also reserve workers who will be engaged in construction in case someone from the main team cannot go to work. Usually, the staff does not receive a fixed salary, but a percentage of the project, which increases the motivation of employees. The size of the staff is determined by the desire of the entrepreneur to save money or complete the construction process as soon as possible. It should be noted that when building a cottage village, you can start selling objects that have already been put into operation, while the general construction is not yet completed. Some entrepreneurs are starting to sell unfinished objects at a slightly reduced price, but not every consumer trusts this practice.

Cottage construction is characterized by multimillion-dollar investments, but at the same time it allows you to complete the project and start selling in just a few months. All this affects the rate of capital turnover. Thus, the entrepreneur has the opportunity to relatively quickly make a profit and start building a new site. Having gained sufficient experience in this area, you can count on the fact that the consumer will contact an already proven company, and the speed of selling cottages will increase significantly. This business also has development prospects, because a company with a good reputation can begin to engage in other types of construction, including more complex ones. On the other hand, the construction of cottages can be the development of an already existing small construction business.

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