home » Cash transactions » Business plan for a construction company. Coursework: Business plan in construction Examples of business plans for a construction company

Business plan for a construction company. Coursework: Business plan in construction Examples of business plans for a construction company

Construction and repair for an entrepreneur is a gold mine. This is a popular business niche with a 30-60% yield. Demand for construction goods and services is high – so there is enough work for everyone. Even newbies.

Everything more people living in big cities, tend to shift everyday tasks and minor repairs onto other people's shoulders. That is why the service "husband for an hour" is now so in demand in the market.

Every year, laminate flooring is becoming more and more popular type of flooring, ahead of the once more popular linoleum in popularity. But the production of laminate flooring is not for beginners.

The production of self-tapping screws does not require a large number of personnel and strict conditions for the areas, and thanks to a rich selection of equipment, unnecessary costs can be avoided. And most importantly - everyone needs self-tapping screws.

This article discusses the main aspects of opening a building materials store: profitability, a list of goods for the initial purchase and the choice of assortment groups for sale. ...

Brick is one of the most popular building materials in Russia. Brick production as a business is interesting because, along with large enterprises, it is possible to produce bricks with minimal investment.

The production of cinder blocks is a cost-effective business that can bring significant profits. The equipment for the production of cinder block is quite affordable, the technology and raw materials are available in...

Phytodesign is called the business of the future. The business idea came to us from abroad and is new in Russia. This is a great chance to start a promising green business that brings a high income to the owner.

A design studio is a rather specific business that requires professional knowledge in the field of design from the entrepreneur. Opening your own design studio is quite easy, it is much more difficult to make it successful.

Business plan for opening a hardware store in a city with a population of more than 1 million people. Starting investments - 1,408,000 rubles. Net profit in the first year of operation - 1,082,000 rubles. Payback period - 15...

The volume of investment costs in the organization of an enterprise for the production of ash blocks is 1,505,000 rubles. The simple and discounted payback period of the project is 5 months.

The investment costs of the project amount to 26.42 million rubles. The main volume is spent on the purchase of a production line, as well as on the formation of a fund working capital before the release of the project for payback ...

The amount of investment costs in an enterprise for the production of frame-modular buildings is 2,050,000 rubles. Simple (PP) and discounted (DPP) payback period is 6 months.

Investment costs in opening a mobile concrete plant amount to 6.83 million rubles, the bulk of the amount is directed to the purchase of equipment and the creation of a working capital fund up to...

The amount of investment to open a studio landscape design is 1,670,000 rubles. To implement the project, own cash.

Starting investments will amount to 228.5 thousand rubles. The financial calculations of this business plan are made for a three-year period of activity. According to them, the payback period of the project will be 5 months.

Ready-made business plan for the sawmill "Pili-Pila"

The total amount of investment costs is 7.17 million rubles. Of these, 2.0 million - own funds. 5.17 million rubles it is planned to attract in the form of a bank loan at 18% per annum, for a period of 48 months.

The amount of required investment costs is 3.33 million rubles, a significant share of which falls on the purchase of equipment and the formation of working capital until the payback is reached. Also, pre...

“I want to open a construction company, but I don’t know where to start,” this question is often asked to specialists by novice entrepreneurs. The choice of activities is certainly good. Construction in Russia, regardless of the situation inside the country and abroad, can always rely on favorable market conditions.

Classification of construction companies

But to create a construction company from scratch, you need to have special knowledge and experience, as well as own a PC. It will be very difficult for a person who has no idea what load diagrams are, moisture resistance or thermal conductivity of a material, covering ability of paint, to create a successful enterprise. The first thing you need to open a construction company is to learn that construction is a developed and complex industry, and there are no “just construction companies”. They have their own classification and a certain set of functions.

Only the organization of a subcontractor firm specializing in performing a certain type of work will give good opportunities to beginners. After the status of the company is indicated, you can wonder where to start opening a construction company.

Enterprise opening algorithm

Before you open a construction company from scratch, you need to determine its purpose. The company can carry out cosmetic repairs of premises, build houses, roads, install windows and doors, combine all types of activities. Having chosen the type of activity, the entrepreneur must draw up a business plan for a construction company, which allows you to study in detail each of the stages of the organization. Step-by-step instruction opening looks like this:

registration of the enterprise and the choice of the form of taxation;
obtaining permits from relevant organizations;
acquisition of machinery, equipment and inventory;
recruitment;
possible risks;
search for customers.

In addition, the business plan for opening a construction company should include financial calculations, which determine the amount needed to start. As well as information about assets and liabilities, the company being created, and methods for increasing profits. The financial part of the project will show the profitability and payback of the emerging enterprise.

Business Advantages and Disadvantages

A construction company as a business is a profitable enterprise (up to 75%), which will pay off within 12-18 months. The main advantage of construction is its stability. But to create a strong company, you need serious investments, conscientious staff and a large client base.

Typical problems that often arise when creating a construction company are the high level of competition, insufficient funding, and the difficulty of entering the market. Experienced staff will help to develop a positive reputation for the company in a short time. The competitiveness of the company is directly related to the quality of the work performed. And you can attract bank capital or investors with the help of a competent business plan.

Company registration

What is the best way to register a company: LLC or IP? Even small construction companies are considered to be fairly large-scale businesses. Therefore, it is desirable to register a construction company as an LLC. But some entrepreneurs create IP, which allows you to perform work on a patent basis. The package of documents for registration includes:

application for registration;
passport data for individual entrepreneurs, information about the organization for LLC;
"Certificate of state registration legal entity" and an extract from the USR.
company charter;
an agreement on the share distribution of funds between the founders;

You also need to get tax code enterprises and registration with the statistical office. The profitability of a company often depends on the choice of taxation system: general or simplified. It is better to consult with a specialist on the issue of paying taxes.

Collection of permits: to join or not to join the SRO

Joining a self-regulatory organization of builders (SRO) is an important step in registering a company. The organization of the work of a construction company without the permission of the SRO threatens the entrepreneur with a fine in the amount of 5,000 rubles. and higher. Firms that have joined the SRO must pay contributions, the total amount of which varies depending on the region, but everywhere it is quite large. For example, deductions to the compensation fund alone will amount to 400,000 rubles. in year. Not every company can afford such expenses, so many of them work semi-legally.

The following organizations can operate without joining the SRO:

construction and repair company engaged in the repair and decoration of premises and facades;
construction and assembly company that performs the installation of light structures: windows, doors.

That is, a small enterprise, in principle, can do without the permission of the SRO, and save on the payment of contributions.

Other documents required to open a construction company:

a building permit costs about 600,000 rubles;
license for structural design services;
permission to conduct engineering surveys.

You will also have to visit the SES and the department for emergency situations. The total amount of expenses for paperwork is from 1,000,000 to 3,000,000 rubles.

Field of activity of the construction company

The enterprise can be both highly specialized and large-format. The range of services offered to the population depends on the desire of the owner and his capabilities. Construction company services:

construction of various buildings and structures, both partially and on a turnkey basis;
repair and installation works;
leasing of machinery and equipment;
training and advanced training of specialists;
project development;
trade in building materials.

The wider the proposed scope of the company, the more investments will be required at the start for its organization.

Equipment and personnel

To organize a large-scale enterprise, it will be necessary to purchase large-sized construction machinery and equipment, the installation of which will take up a large area. Small firms rent the necessary devices, or take them on lease, which is much more profitable than a loan. It is important to carefully study the terms of the contract with the leasing company. You can also save money by buying used equipment. In this case, it is better to check with the seller the reason for the sale and ask technical documentation supplied with the equipment.

The organization of management of a construction company should be thought out to the smallest detail. Modern construction has long enjoyed information technology and specialized software: CAD, GIS, project management system and estimate software. Therefore, even the smallest construction team should have at least one qualified specialist who understands the software.

A staff of conscientious and responsible people is the first step towards creating a successful enterprise.

The construction company will need the following specialists:

supplier;
personnel officer;
architect or designer;
accountant;
foreman.

It is advisable to find an opportunity to maintain your own lawyer. Each team must have qualified painters, plasterers, electricians, carpenters. State licenses are issued to companies where the majority of employees have higher education. Naturally, the salary of such specialists should be decent. On average, salaries in the construction industry range from 35,000 and above.

Often small firms refuse to hire an accountant, preferring to invite reporting period a specialist who will make accounting and put the documentation in order. The advantage is that you don't have to pay a monthly salary. Work is paid upon completion.

Order search

There are several ways to receive orders:

win the tender. But before applying for participation in the competition, it is necessary to study its conditions. If the construction of a large facility is played out, then preference will be given to powerful organizations with a large staff and their own fleet of equipment.
Conclude a cooperation agreement with companies involved in the construction of new buildings. Premises in new buildings require finishing.
Become a subcontractor of a large firm that has received a large-scale project to work.
For several years, we have been providing various high quality construction services, working for a reputation. A company with a positive reputation in the market will always be provided with orders.

Economic justification of the project

purchase of tools (trowel, jigsaw, drill or puncher, screwdriver, etc.) - from 200,000 rubles;
purchase vehicle for the transportation of equipment and personnel - from 450,000 rubles;
fund wages– from 35,000 rubles, but the total amount should not exceed 40% of total cost executed works;
construction company advertising and payment telephone communication- from 25,000 rubles.

As a result, it turns out that the initial investment is 650,000 rubles, and monthly expenses- from 165,000 rubles. The calculation is made for a company whose staff is minimal and consists of 4 people, together with the organizer and the driver.

The profitability of the company depends on the tariffs set by the management, the complexity and urgency of the work performed, and the season. Prices for repair and construction companies in 2015:

cosmetic repairs, interior decoration - from 1,000 to 1,500 rubles. for 1 m2;
economy repair - from 1,800 rubles. per m2;
luxury repair - from 3,300 rubles. for 1 m2.

The "average check" of a construction company varies within 30,000 rubles. The deadline for completing the work is set by the contractor. A customer in need of an urgent repair pays the contingency costs. But on average, a typical repair takes 14 to 28 days.

The profitability of the construction company is 50%. The most profitable enterprises are electrical installation companies, and companies involved in the installation of air conditioners, double-glazed windows, doors.

Company name

Another important nuance: you need to come up with a name for the construction company. This business is quite troublesome, because the name should not only be memorable, but also carry information about the company. How to name a construction company depends on target audience. Individuals I remember bright and concise names. Large suppliers and it is better for customers to present themselves more seriously and succinctly.

Often the name of the company is an abbreviation that stands for succinctly and beautifully. But it should be remembered that it is unlikely that a simple layman will puzzle over decryptions. In addition, pronouncing "SGS" is inconvenient, and "modern housing construction" is long. Therefore, it is better to beat the name right away. For example: SovZhilStroy, or OmskZhilStroy and so on.

The scale of construction in modern Russia, despite the crisis, are simply huge. Which means, " warm place» more than one firm will be able to find itself in this industry. Those who believe that millions of rubles are needed to enter the construction business are seriously mistaken - you can start with a small store of building materials, gradually mastering new areas of activity. Since this is a highly profitable business, you can develop quite well by investing only a quarter or a third of your net income in the process. The main thing is a well-written business plan.

Preparatory stage

Ready business plan of the analyzed business is designed for implementation in an average Russian city (population 300-600 thousand people) with an initial investment of 500 thousand rubles. Of these, 350 thousand are planned to be used for the organization from scratch construction company, and the rest of the amount - for the opening of a store of related products.

In general, the procedure for founding a construction company is in many ways similar to a similar process in any other business area. A ready-made construction business is best suited to such an organizational and legal form as a limited liability company. It is necessary to clearly spell out the main points in the sequence as done in the reviewed business plan:

Thus, developing ready plan for a company, you need to take into account the need for the following documents during registration:

Photocopies of the founders' passports, as well as knowledge of the registration data of legal entities acting as founders: name, address, TIN, OKATO;
Data on the location of the legal entity undergoing registration;
Specific information about what your company plans to do (provision of construction services, repair work, the operation of a store selling building materials, etc.);
Size authorized capital(in our case, 1.5 million rubles) and the source of its formation (in our case, the personal funds of the founders in equal shares). remember, that ready business cannot be registered if the size of the UK is less than 10 thousand rubles.

At the same time, the finished plan of this business project contains one very important difference - for the functioning of a construction company, in some cases, you need to obtain a special permit for certain types services provided: the so-called SRO, which can cost several tens of thousands of rubles and take a month to complete.

List of rendered services

One more important point The preliminary stage that needs to be included in the finished company plan is the definition of the areas of activity of your company. There are quite a lot of them, but a small firm can only do civil construction, repair of premises up to 1 thousand square meters. m., trade in materials and equipment through own store. These services should be recorded in the form of a table, having simultaneously calculated the planned monthly income from each of them.

Note that the mentioned volumes of profit are achievable if at least two fully staffed teams of specialists of 10 people each with a foreman at the head work in your company. The business plan prescribes the possibility of staff rotation and splitting teams into smaller ones, if necessary.

Permits

The construction industry is a unique business environment in which, in addition to a lot of money, a lot of various certificates, permits, and permits are concentrated.

For example, SRO ( self-regulatory organizations) is not a ready-made admission of the company to work, but rather the status of the company, giving the go-ahead for the performance of some particularly complex services. If the business plan of your construction company prescribes that you are building 1-3 storey houses with an area of less than 1501 sq. m. or objects that fall under the definition of "individual housing construction", there is no need for SRO approval.

Unlike the above document, without a building permit issued by the local municipality and endorsed by the chief city architect, no construction work, such as the construction of a small one-story store, is possible.

In some cases, it is necessary to obtain a license for the design of buildings and structures, as well as a similar document for engineering surveys during construction. Registration of all these documents is not so expensive (within 7 thousand rubles), but it takes a lot of time, and therefore should be included in the plan-contract for holding construction works companies.

Search for orders and development options

A ready-made plan for a company specializing in construction and repair work must necessarily provide for mechanisms for searching for orders and cooperation with other organizations in the construction industry.

One of the most common options is participation in a contract during large-scale construction work. large organizations. The main difficulty here is in interaction with other firms that will work at the same facility. Despite the fact that you will work in different areas of the construction front, you will have the same ultimate goal - to hand over the finished object as quickly as possible and with as few shortcomings as possible.

Many small firms themselves approach a large developer with requests for work, so it would be a very good option to use personal contacts and maintain ties with the leadership of the construction "giants" of the region.

Many firms focus on private construction, building facilities such as baths, garages, small households. In this case, advertising in local media would be a good development option. mass media and the Internet, as well as the conclusion of a cooperation agreement or even the independent opening of a store of building materials and related products.

Of course, one should not forget about such a form of mutually beneficial cooperation as leasing your construction equipment and personnel to those organizations that need it. In turn, it will be much more profitable for your company, if necessary, to rent a bulldozer with a bulldozer driver from a business colleague for several days, rather than buying the mechanism itself and paying regular salary a specialist who in your enterprise will perform his work only occasionally.

The construction business is gaining momentum every year, which is associated with an increase in demand for housing and improved economic factors. Therefore, the business idea of opening a construction company is relevant and can be implemented in fairly favorable conditions. We will talk about where to start and how to draw up a business plan for a construction company in this article.

In order to understand how profitable this direction is, let's analyze the prospects and relevance of this idea. What features does this business area take into account?

Investments, with proper planning, can pay off within a few months. And the development prospects for this industry are truly limitless.

In order to realize the idea of opening a construction company, you can go in two directions:

Buy a ready-made business.
Create a company on your own.

The first option has its advantages due to the fact that you no longer need to spend time and money on registering a business, obtaining permits. Those who have encountered this bureaucratic red tape know firsthand how much this one takes time and effort.

Also an important point is the already selected personnel of the company, established sales channels.

But there are some drawbacks to this option as well. If the business was unprofitable, the wrong marketing technologies were implemented in it, then it will be difficult to bring the enterprise to the proper level of development. In this regard, it is much easier to create a company from the very beginning.

In addition, in the business of construction and repair services, the reputation of the company is very important. By acquiring ready-made company, you will have to rely on the already created image of the predecessors. If it is not good enough, you will have to spend a lot of time, effort and money on promoting the company, creating a positive reputation, etc.

Pros and cons of business ideas

Despite the prospects for the development of this business, the idea itself has its pros and cons, which you should know before proceeding to the stage of implementing entrepreneurial activities.

Pros:

Small investment. In order to register a company, to purchase the necessary equipment, you do not need large investments. It is possible to develop and increase the turnover of the company already in the process of its implementation.
High demand. Today, this niche is one of the most sought after. The services of professional builders are needed by physical and legal entities, small and big business. Therefore, with proper marketing planning and high quality of the services provided, you can quickly reach the payback of the company and good income.
The prospect of business development. Your company may not be limited by the geographical location of the city or region. With the right development, over time, you can open branches in other regions, which will allow you to reach a completely different level of business.
Possibility of making a good profit. Standard profitability, in the absence of force majeure situations, ranges from 50 to 70%.

Minuses:

High competition. This factor logically follows from the high demand. The higher the demand in the market, the greater the supply.
Financial risks associated with the unstable economic situation in the country.
Difficulty entering the market. Given the high competition, great attention it will be necessary to pay attention to the stage of service promotion.

Employees play a big role in this business. It is from their qualifications and professionalism that the profit of the company will largely depend. When hiring employees, it is very important to analyze their experience, qualification level, possible development, etc.

With a good team and an experienced staff of builders, you will quickly be able to reach a high level of development and earn an excellent reputation in the city. A good option to start such a business is experience in other construction firms. This will allow you to see the situation from the inside, analyzing its strengths and weak sides.

In addition, work as a subcontractor will teach you to understand the qualifications of personnel, the competent distribution of labor and material resources.

In what direction to develop?

Having decided to enter the market with a proposal to provide construction services, it is important to understand the target audience. This parameter allows you to determine not only competitive advantages, but also to draw up financial plan company development.

The construction business can be implemented in several directions:

provision of services in the field of civil construction, repair;
road construction;
industrial building construction.

Each of these areas will require a different amount of investment, staff, constituent documents, etc.

The main services of a construction company include the following types of work:

construction of houses;
repair of apartments;
dismantling and installation;
construction of garages, bathhouses, warehouses, etc.

Additionally, to increase income and expand the range of services, you can rent construction equipment, sell materials, train staff, etc.

As you can see, there are a lot of development prospects and opportunities for obtaining additional income for this type of business.

In order to implement this type of business, you must adhere to the following algorithm of actions:

Determine the format of the company.
Make a business plan.
Preparation of registration documents.
Company promotion and customer search.
Project implementation.

The Importance of Writing a Business Plan

The stage of implementing a business idea is always preceded by the planning stage. Without proper market analysis, competitive advantage, studying the target audience and strategic planning will not be able to achieve the desired result.

All these aspects are prescribed in the business plan, and help to understand the direction of business development, taking into account the strengths and weaknesses of the project.

Competent planning will help to avoid mistakes, anticipate difficulties and calculate the point of profitability.

Also, having a ready-made business development plan, it will be easier to attract investors, business partners, justifying the feasibility and relevance of the idea.

organizational plan

Business registration

To open your own construction company, you will first need to obtain permission for the relevant type of activity and register a private enterprise.

Each construction company must have the following package of documents:

Certificate of state registration;
A document confirming tax registration;
company charter;
printing and statistical codes.

For companies providing specialized services to the business sector, industrial enterprises, road services, etc., you must additionally obtain the appropriate permit:

building permit;
license to carry out engineering work;
permission to design buildings and structures.

This type of activity requires obtaining several licenses.

One of the key documents is the SRO. This is an admission to the implementation of services associated with an increased risk.

If you do not plan to build buildings over three floors, then obtaining an SRO is not required.

Also, this document does not need to be drawn up if the activity is related to the construction of block houses with an area of less than 1.5 thousand square meters. That is, for an ordinary construction company that will be engaged in the construction of private houses and finishing work, it is not necessary to obtain an SRO.

One of the biggest expenses in this business is the purchase of equipment.

Before making a list necessary equipment and technology, determine the format of the business, the number of work shifts, etc.

If the initial investment does not allow you to fully purchase a professional set of equipment, tools and inventory, then you can resort to the leasing service.

Unlike a bank loan, this service allows you to use property on a long-term basis with the right to buy it. By the way, in the future, when business development is already at a high level, you yourself can provide rental or leasing services to other start-up companies.

No need to invest a lot of money in the purchase of equipment that you will need occasionally. It is much more profitable to pay a daily rent by taking equipment for a specific project.

For a large company that plans to engage in construction and repair work in the private sector, you will need the following list of equipment:

tap;
concrete mixers;
lift or CMU;
instruments;
perforators;
chainsaws;
drills;
hammers;
special clothes for workers.

Without a qualified staff in this business, it is difficult to count on profitability and profitability. Therefore, the moment of search and selection of personnel must be given great attention.

By their own functional duties staff composition can vary significantly. It depends on the format of the activity, its specifics, etc.

Below we provide a standard set of employees for a construction company:

workers and builders;
foreman (foreman);
accountant;
Purchasing Manager;
Service Promotion and Customer Relations Manager
personnel inspector;
lawyer;
architect;
director.

The number of employees determines the scale of business activities.

If you are planning to develop a business in the service sector finishing works, then you will have to increase the staff with more specialists in this field (plasterers, masons, plumbers, electricians, painters, carpenters, etc.).

In order to obtain a construction license, please note that at least 50% of total staff of builders must have a higher specialized education.

For effective productive work, it is important to provide workers with all the necessary tools and materials.

For the quality of services and in order to avoid production delays, it is important to systematically inspect equipment and inventory, check its serviceability and suitability for work.

Do not buy cheap equipment - this will reduce not only the productivity and quality of services, but also the profitability of the business, since large resources will have to be spent on repairing and replacing equipment.

Room selection

To work, you need a small office, where the administration, accountant, lawyer will be located. Keep in mind that during the implementation of the project, you will have to negotiate with customers, discuss projects.

Therefore, when choosing a room, consider that it has a place for a meeting room.

As for the location of the office, there are no special recommendations. You may not spend a lot of money on renting a room in the city center, but here's about transport accessibility need to take care.

Marketing plan

To achieve profitability and a good income, it is very important to earn a positive reputation in this area and attract regular customers.

There are several options for attracting customers:

the beginning of development with the subsequent sale of apartments;
active advertising in the media, via the Internet;
participation in affiliate programs with hardware stores;
attracting customers after winning a government tender.

Be sure to create your own website, where it will be presented complete list services, a calculator for the cost of services, contact numbers of the administration, the possibility of consultation, etc.

A good website is a kind of business card, which indicates the high level of the company and its reliability.

Video. How to open a construction company from scratch

Financial plan

Here we present only a rough cost plan, since each firm, depending on the scale and geographical location, will require its own costs.

purchase of equipment - 1 million rubles;
advertising - 100 thousand rubles a month;
unforeseen expenses - 100 thousand rubles
staff salary (15 people) - 500 thousand rubles;
office rent - 50 thousand rubles.

And now let's calculate the payback of this project.

As a standard, in this area a good indicator is a profitability of 10-15%. If you reach this indicator after 5-6 months, this will indicate that all aspects (marketing, organization, planning) are built correctly.

With the deterioration of the economic situation in the country, businessmen note a decrease in profitability in this sector. To date, the average figure fluctuates between 7-9%.

Remember that profitability will directly depend on the qualifications of the staff, the number of customers and the amount of costs. If you do not reach the average planned indicator, then analyze which of the factors does not “work”.

Risks and Opportunities

At the planning stage, it is very important to perform a SWOT analysis, which will allow you to see the strengths and weaknesses of the project, threats and development opportunities.

The main risks of the construction business include:

high competition;
unqualified personnel;
lack of orders;
rise in prices for Construction Materials.

Take a close look at this list. There are things in it that you can't control. So, for example, a high level of competition and high prices for building materials is not in your area of expertise. But as for the low level of staff qualifications, the lack of orders - these are the factors that you can influence.

That is why it is important to draw up a competent business plan that will become step by step guide and will allow you to clearly see the prospects for development, the size of the expected profit, the profitability of the business.

Video. How to develop a construction company

Profitability calculator for this business

Setting up a gun shop can be a good start, as the demand for weapons in big cities is only growing, and there are not always very many players in the market. This is due to a rather serious...

If you are a specialist in your field, have the appropriate qualifications and work experience, then you should think about opening your own training center. Moreover, a large investment for ...

No special education is required to organize an independent auto repair shop. Any experience car repair will certainly help, but knowing the basic procedures is all that's really...

Making stamps is not difficult, but profitable business which will require a small investment to start. But the payback in this business is no more than two months! And this is understandable, because the press, se ...

Climbing wall at competent organization promises the entrepreneur a good income. Today, with a well-developed business plan, it is possible to quickly occupy a significant market share, most importantly, do not forget about constantly ...

The total cost of organizing a small production of crayons ranges from 100 thousand rubles (including the purchase of raw materials).

Today, the window repair niche is almost empty. Most often, repair services exist as an additional service to the main business. While the opportunities for implementing a stand-alone business model in this...