Service sector in the construction business.

Project summary

A business plan for a potential investor who is ready to invest a relatively small amount of money in a profitable business.

Taking into account the actively under construction city of Kiev, there is a great demand for such a type of service as the removal and disposal of construction waste in a container way. At the moment, the proposal for the removal of construction waste covers 50-70% of the demand. In this regard, the margin profit for this service is 60-80%. I think this is a good indicator for a positive decision on the financing of this project.

At the moment, there is a ready-made customer base ready to take on the whole volume of services we provide. You won't have to waste time on this.

The price for the export of a cubic meter is from 280 to 450 UAH. Therefore, all our calculations will be based on the price of 330 UAH . per m3. This price is below average.

The costs required for the implementation of this project:

Multilift 1pc. (special equipment for the removal of containers) = 700,000 UAH.

Container 14 pcs. with a volume of 15.20.25 m3. The total volume is 270 m3. = UAH 1,500,000

Opening of a TOV enterprise with VAT = UAH 15,000.

Rent of a base for placing equipment and containers = UAH 15,000 (monthly).

Other costs associated with the arrangement of the office = UAH 50,000.

Total total investment amount is UAH 2,280,000.

Calculation of income and expenses by month.

We take into account 70% of the load of the total volume of containers = 200 m3.

Rotation of containers every three days, that is, out of 25 working days, 8 settlement days.

200 m3. * 330 UAH * 8 days = 528,000 UAH. per month ( income).

Cost part:

Waste disposal is 80 UAH. m3. - 1600 m3. * 80 UAH = 130,000 UAH

Fuel - 120 km. per day with rotation of 4-5 containers * 25 days = 35,000 UAH.

Depreciation of a car + containers = UAH 20,000.

Salary fund of three employees (driver, accountant, manager) = 55,000 UAH.

Base rental + utilities = 20 000 UAH.

Taxes 20% (VAT) = 105 600 UAH.

Other expenses related to doing business = UAH 10,000.

Total costs per month = 375 600 UAH.

What turns out: 528,000 UAH. (income) - 375 600 UAH. (costs) = 152 400 UAH. (net profit!)

The return on investment will be 15 months. In the worst case, a year and a half.