Building Materials Yard Business Plan

Building Materials Yard Business Plan

Building Materials Yard Business Plan Overview

This Building Materials Yard Business Plan refers to the business of selling building materials (commonly known simply as
‘materials’) from a yard. This is as opposed to supplying raw materials directly from the source, say a quarry, to a construction site. Materials in this case refer to stones, sand, ballast and related.

The Building Materials Yard Business owner buys materials from those who directly purchase from the source then resells to end users or small scale middlemen who then sell to end users. End users in this case mean construction site foremen, site managers, contractors, fundis or even the developers themselves.

The Building Materials Yard Business owner could own a lorry which he uses to transport materials from the source to the yard. However with this Building Materials Yard Business Plan we are working with a situation where he does not necessarily own a lorry, thus reducing the barriers to entry. Operations of a building materials transportation lorry business will be subject of a separate guide in order to cover the topic exhaustively.

This Building Materials Yard Business guide will be biased to the greater Kiambu and Nairobi areas. This could serve as a case study of sorts. The reason for not using one guide to cover the whole country is because of significant variations in costs of building materials and transport in various locations.

There might also be slight differences in preferences of particular kinds of building materials from one location to another. Still despite your location, this Building Materials Yard Business plan should give a good idea of the nature of the Building Materials Yard Business.

It’s obvious since you are dealing with building materials then the Building Materials Yard Business is tied to the real estate sector. If the latter is growing then the demand for building materials will increase and vice versa. Thus the increase in the number of Building Materials yards over the last 6 years can be tied to the growth in the real estate sector. Although overall the real estate is still performing fairly well be true to local conditions in your area of operation.

While real estate is the overall driver of the Building Materials Yard Business, they came up so to fill the small and mid level builders need for convenience in terms of quantity and accessibility. In a big way Building Materials Yard Business help break bulk in building materials by selling quantities lesser than the tonnage sold through Lorries or directly from quarries.

By locating near construction sites as compared to quarries yards let builders in quick need of small quantities of materials to access them easily. This will become much clearer in the course of this Building Materials Yard Business guide.

A key characteristic of the Building Materials Yard Business is that it is unstructured; it operates quite informally in the sense there are no set standards or regulations. This has left a wide room for all manner of tricks and definition of standards. Hence as much as this guide will try to paint as true picture as possible in all likelihood you will learn some of the tricks and ‘standards’ on the job. These never remain constant and keep evolving from time to time and place to place.

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