What trips up SME builders isn’t effort; it’s being trapped in reactive jobs, cash squeezes and panic hiring. This guide demonstrates how, with a five-year business plan, construction companies can turn that script around – delivering clarity, control, and improved margins. Drawing on insights from construction coach and mentor Robin Hayhurst, we’ll show why mapping the next five years lets you benchmark progress and make sharper calls on people, cash and growth instead of firefighting the next crisis.
Why a five-year plan for SME builders?
While some SME construction companies only plan a month ahead, a five-year plan provides a target to measure against, leading to better decisions regarding people, funding, and pricing. With a clear horizon, you can line up hires or training before you’re desperate, arrange finance on your terms rather than in a crunch, and price work with confidence because you understand costs, capacity and pipeline.
Think of ordering a lorry of bricks to site. I could leave it to the last minute, and while I would be able to get the bricks delivered, I am really going to pay through the nose for it. But if I started shopping around four or six weeks before I needed them, I could get a decent price. It’s the same thing with funding and cash flow. Planning ahead gives you time, options, and control to make better decisions.”
What should you consider when making your plan?
A five-year plan only works if it’s grounded in reality, not wishful thinking. Taking the time to consider the right factors upfront saves costly course corrections later and makes your plan more effective. The following checklist is a good place to start:
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One paragraph vision statement and non-negotiable values
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12–60 month revenue, profit and cash-flow forecast (quarterly)
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Team org chart now vs year 5; role scorecards
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KPI dashboard (profitability, win rate, projects in delivery, on-time completion)
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Process map - document your processes, including:
- Enquiries
- Quotes
- Pre-start requirements
- Site operations
- Handover to the client
- Client aftercare
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Risk triggers and actions (materials spikes, weather delays)
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Review Quarterly review rhythm with your team
Let's dive into the detail...
Your vision
Start by deciding what you want your business to deliver – for you and your clients, and build backwards from that. Be explicit about your lifestyle (hours, stress), personal income, profit target, the type of work you’ll take on, and the reputation you want; then size the company to fit, prioritising profit over vanity turnover.
Cash flow forecast
By building and regularly updating a rolling five-year cash forecast, construction companies can plan for the future. Even with estimates, it exposes pinch points early, allowing you to arrange overdrafts, asset finance or deposits on your terms, avoiding last-minute stress.
Beneath your five-year plan, lock in a 13-week cash view. Align invoicing milestones with site reality, including pre-start deposits, stage payments, variations signed before spend, and model best, base, and worst-case scenarios.
Having a cash flow forecast for five years – even if you don’t know exactly what will happen, means you can start to understand when you can afford to get more staff in the office. Without a plan, many business owners “employ in panic,” hiring friends or family with no clear job role or system to follow. If you have a good five-year strategy, you’ll know who you’re employing, what they’re doing, and when.”
Your team’s capacity
Take a realistic look at your team and what they can deliver. Score them in terms of skills, reliability, productivity, and attitude, and map roles for the business you’re building – not just the one you’re running today. That provides a hiring-by-need and upskilling plan, enabling you to be ready when the pressure arises.
Track your KPI’s
Key Performance Indicators (KPIs) are quantifiable metrics that track how effectively your construction company is achieving its objectives. Your figures should align with where you want the business to go, not just how big it appears.
- Profit: If profits are thin, fix pricing or delivery.
- Tender win rate: Quotes won vs quotes sent. Tells you if you’re targeting the right jobs at the right price.
- Active projects: How many jobs are live right now? Indicates if you’re at capacity or straining the team.
- Team size vs workload: Do you have the people to deliver what’s booked? Hire or upskill before you’re overloaded.
- Delivery timelines: Planned finish vs actual. On-time jobs protect margin and reputation.
Track these figures monthly, set a target for each, and ask the same question every review – what moved, why, and what will we do?
Efficient systems and processes
Document the way you work so that the job runs smoothly, regardless of who’s on site or what goes wrong.
Create templates for everything from enquiries to aftercare – including how quotes are built, variations are approved, site updates are delivered to clients, and how jobs are signed off.
Start with the high-impact workflows and keep them simple:
- Enquiry to : Standard scope template, materials, non-material site costs (insurance or permits, for example), waste allowance, and target margin.
- Pre-start: Client checklist – access, neighbours, parking, and power/water, programme summary, payment milestones, and who makes the decisions.
- Site ops: Daily site diary and photo log, delivery schedule, snag capture, and a five-minute morning brief – H&S, tasks and risks.
- Change control: One-page variation form (description, cost, time impact) signed before work starts.
- Handover and aftercare: Snag sweep, warranties/manuals pack, final photo set, and a 30-day check-in message.
Back your processes with simple tools, such as a shared calendar for programmes and deliveries, a job management app, and role scorecards, so each step has an owner. Review your core processes quarterly, and consider what created delays, disputes, or callbacks.
The payoff is consistency. Quotes are complete, clients get predictable communication, teams know the plan, and problems are caught early. That steadiness is what keeps projects on time, cash flowing, and margins intact, especially when the unexpected hits.
By having a process with templates that you can follow, you’re saving time. Following a process means you’re not reinventing the wheel every day.”
Be prepared for the unexpected
With a five-year business plan, construction companies have a direction backed by habits that keep them agile and able to handle the unexpected.
Based on your base plan, build both the best-case and worst-case versions, then run your business using the base case. Watch for key indicators, such as lead times, supplier price lists, and enquiry volume, and when a trigger hits – timber prices increasing, for example, switch to the relevant scenario you’ve already costed, rather than making it up on the fly.
Keep the horizon long but work in short 90-day sprints. Each quarter, lock in a forecast for pipeline, cash, and hires, agree on price assumptions, and set a concise list of actions, such as second-sourcing a product or pre-ordering critical items.
Use variable pricing clauses or expiry dates in quotes, include a materials escalation line, and clarify payment milestones so cash keeps pace with site progress. Maintain lists that include primary and backup suppliers, as well as simple substitutions for everyday items. This prevents delays and ensures everything runs smoothly.
Just looking at your growth for five years is such a fundamental thing to do. If you have your five-year plan for growth mapped out, you can start to measure yourself against it. That makes a huge difference.”
Schedule regular reviews
A business plan only delivers results if it’s kept alive. Every quarter, sit down with your team to look at what’s gone well, what’s slipped, and what’s changing in the market.
Keep it simple – update your forecasts, check your pipeline, and agree a few clear priorities for the next 90 days.
These reviews keep everyone aligned and accountable, turning your five-year plan into a living document that guides day-to-day decisions and keeps the business moving forward.
The last five years – Brexit, Covid, inflation and supply shocks, proved SME construction businesses can adapt. The firms that coped best weren’t guessing; they had a plan, a cadence to review it, and pre-agreed moves for when reality shifted. Do the same, and your company will be set for a successful future.
From an interview first published in the August/September 2025 edition of FMB’s Master Builder magazine.
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