Tips On Determining Your Construction Project's Budget
If there’s one thing that we’ve tried to hammer home when it comes to construction, it’s that the appropriate planning is vital to a project’s success! One of the most critical things that you can plan for is your business’s budget. You likely have big visions for your next commercial construction build, but you’ll need to be realistic about what your business can afford. Determining your construction budget is easier said than done, but we have some expert tips that can help you bridge the gap. Read on to learn about our best advice for determining an appropriate budget!
Predict Your Future Sales
If you’ve never heard of sales forecasting before, it may be time to brush up on your knowledge! Sales forecasting uses a variety of models in addition to past data to determine how a business might perform in the future. If your new construction project goals are lofty, it’s important to have the right capital to back them up! Predicting your future sales will allow you to get an estimate of how much you’ll be able to spend right now. If your sales are predicted to take a dive, we don’t recommend getting as extravagant in your designs. While it’s important to think big, it’s even more important to be realistic!
Consider Where You’re Building
Have you picked out your ideal construction site yet? Depending on where that location might be, your construction budget will change. Think about the cost of the land, materials, utilities, and where your site is in relation to major traffic centers. All of these things will factor into your total budget and differ depending on your answers to the big questions. If you haven’t picked out a site yet, you can use this information to make an informed decision on which site would be best for your total budget.
Look At Your Fixed Costs
While some costs in your construction budget can change without warning, there are some that are set in stone. Luckily, the latter ends up accounting for over half of any construction project’s budget! You can use the fixed costs to help determine how much you can spend on the intangible costs. Give yourself a range for these costs that would be appropriate for your business without putting a ton of financial pressure on it. The earlier in the process, you determine your fixed costs, the easier making your final budget preparations will be.
Cost Estimation and Budgeting With M&M Construction Services
M&M Construction Services has spent several decades helping business owners achieve the designs of their dreams with expert construction services! We know just how important the planning process - especially determining an appropriate budget - is for a build to be successful, which is why we’re happy to help with all parts of the pre-construction process.Contact us today to get your business on the road to a successful construction project!
