If you want to start construction business in India. You should know basic things of construction business. In construction business, you have to buy land and then you make houses on it and sell to your customers. Following steps may be useful for you to start construction business in India.
1st Step : Purchasing of Land
First of all, you have to decide how much land you will use for your construction business. Minimum investment for buying land is Rs. 50,00,000 in small urban area. You should start from minimum investment to check whether this is best area of your business.
2nd Step : Planning of Construction of Houses
Now, in second step, you have to select no. of houses which will you make and sell. You can start construction of 5 and 10 residential houses.
3rd Step : Estimation of the Cost of Construction
This step is very important for starting construction business because you have to estimate each element's cost. You have to estimate the cost of all raw material, you have to estimate the cost of labor and other overheads like electricity consumption and other equipment cost.
4th Step : Estimating the Extra Cost of Wood Work, Electricity and Water Supply
Only estimation of construction cost is not sufficient. For completing the house, you have to hire carpenters for making doors and other wood work. You have to estimate their cost. You also complete electrical works and water supply. So, estimate these costs.
5th Step : Calculate the Sale Price of Houses
For calculating sale price, you have to add some margin in your total estimated cost of all houses. Now divide the sale price of all houses with no. of houses constructed. It will be sale price of your one house. Start to advertise for selling it.