Own business: cottage construction
Not everyone can afford to buy their own housing today, but modern construction methods require the ability to build your own home for a relatively small price. In this way, for example, is frame construction, but not everyone is interested in a method that 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-equipped house for a fairly affordable price. Most often, cottages are built outside of large cities, but relatively close to them, which allows customers to live essentially in rural areas, but work in large cities.
The entrepreneur who is engaged in cottage construction saves on the fact that he buys a sufficiently 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 low-cost housing, because its cost is quite low. But in any case, investments in such a project will be multimillion, so the businessman must either have his own big capital, or initially look for investors for his undertaking.
In large cities, many construction companies are engaged in cottage construction, however, given the enormous 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, and thanks to cottage villages, the city is expanding, and new territories are constantly allocated to them. In this regard, despite a fairly large level of competition, we can count on the fact that it will turn out to take its place in this market. However, one must understand that in order to make a business successful in this area and always stay on the market, it is possible only if the entrepreneur offers his customers more favorable conditions than competitors. Therefore, you should first carefully study the market, the offers of all companies and analyze whether the new offer will be interesting to consumers, or whether people do not need new services, or rather, the services of a new company that is not known and does not yet have a reputation for the company. The rest of the difficulties will be the same as any start-up construction company.
To start your work, you should 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 that allows transferring to the state’s benefit no more than 6 percent of revenue or 15 percent of operating profit. The registration procedure can take about a month, and will require about twenty thousand rubles to pay for all services. Also, for work it will be necessary to correctly indicate the OKVED codes, and such activity falls under the definition of several classifiers at once, it is best to take them from the group (OKPD 2) 42 Structures and civil works in the field of civil engineering.
It should also be noted that currently no construction license is required, but legal activity requires entry into a self-regulatory organization. Therefore, the entrepreneur is free to choose with whom to start cooperation. The conditions for joining each organization may vary slightly, so it makes sense to study all the proposals available before starting work.
An entrepreneur has two main ways to introduce such a business. Most often they are engaged in cottage construction, buying out a huge plot of land for its development with the subsequent sale of ready-made cottages to private individuals. Although another way of earning money can be used, for this the entrepreneur places his offer and develops on the territory of the customer; that is, in this case, the construction company only performs the construction of the building on the already finished land.
Much more income comes from the sale of cottages on their own land, and the point here is not the higher cost of the final project for the consumer, namely due to mass construction, that is, savings on land and materials. However, the amount of investments in such an undertaking is several orders of magnitude larger, moreover, building only after agreement with the customer, you can get an advance payment, which means many times lower the amount of your own funds invested in construction.
If the entrepreneur has sufficient investment, 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 pick up territory near a large city, and even better – on its outskirts. The size of the site may be different depending on the capabilities of the businessman, but it is almost always several hectares.