Business Ideas | Small Business Ideas: Business Plans for a Brick Making

You might be thinking of entering the construction industry. One business that you can look into is becoming a brick manufacturer. Bricks are the building blocks of many historical and ancient structures that remain standing after thousands of years and that we continue to admire until now. Read more how you can participate in this timeless and lucrative business.

Bricks proven reliability passes the test of time in any climate. Its insulating capabilities and passive solar heat retention make brick equally suitable for hot summers and cold winters. Nature creates the basic material used in brick manufacture. The weather and chemical reactions break up rocks producing fine-grained earth called clay. Clay is workable when wet and can be molded to any shape. A brick is made by wetting clay, pressing it into a mold, which creates blocks. These blocks are fired in a kiln until they are hard.

The process of making bricks generally consists of the following steps:

Gathering, crushing, grinding, screening, and mixing the raw materials producing the brick
The setting, drying, firing
Packaging and inventorying is the final processing in the manufacture of bricks

Before you start manufacturing consider completing a business course. This will be invaluable as you will learn about financial management, sales, marketing, understanding a balance sheet and more.

Brick making is considered an ancient art. Bricks stood the test of time and are still being used in modern construction. Ancient people used different kinds of bricks but the result is the same – amazing creations that some were even considered as the Wonders of the World. The pyramids of Egypt were built with from mud bricks while the Colosseum and other Roman structures were made with fired bricks.

They can be used practically in any type of structure so that makes a wide range of target market for you. There are also different types of materials that you can choose from to begin your brick business. Besides clay, brick manufacturers also use fly ash, slate, calcium silicate, shale and concrete. Natural stones like sandstone, marble and granite can also be made into bricks.

Brick manufacturers differ in materials they use, how they fire the brick and to what degree they are fired. You can use traditional kilns or modern ones to do the firing work.

Making bricks is a simple process. You should learn how it is made so you can have an idea how you can set up your manufacturing business. The process starts with mixing sand, water and additives to clay and ground it well. Sand is important so that you can remove the brick from the mold. The mixture is pressed into moulds or you can shape it through a die and then cut up in sizes you desire. The standard size of a brick is 14” x 10” x 4”. The molded bricks are fired in a kiln or oven at high temperatures. Don’t worry if some bricks will be damaged in the process because they can be recycled and reused.

Bricks are now refined by technology and machines are available to produce them in mass quantity in less time. You can purchase Do-it-yourself (DIY) machines that can produce as much as 3,000 bricks a day. You must also learn how you will package and manage inventory of bricks that you will produce.

Before you start becoming a brick manufacturer, it would be helpful if you can attend some business courses to teach you how to manage your finances, understand balance sheets, and sell and market your products. It is also essential to come up with your comprehensive business plan to lay out your strategies in terms of production, operations, marketing, hiring staff and raising capital. Your business plan will give you a clear picture of what you want to accomplish in your business.

Prepare a business plan

It is very important to have a comprehensive business plan which should include your strategic focus, a marketing plan, operations plan, staffing plan and a financial plan. A business plan helps to clarify objectives and spells out what you want to achieve in your business.

Business plans are the guiding documents of both new and established businesses. Business plans quantify the business concept, the market the business will serve and the necessary finances, according to "Entrepreneur" magazine. Plans for a brick-making business outline who will run the company and how, the types and quantity of bricks the company will manufacture and how it will sell them. A brick maker's business plan also defines how and where he acquires clay and other raw materials, the quantities he needs and the facilities he needs to create bricks, and then how those bricks build a profitable business.

Equipment

There are DIY Machines available in South Africa and there are easy to use brick-making machines at affordable prices, such as:

A DIY Brick machine, making standard stock bricks from R2 600
Output per drop: 6
Production per day: 3000 Build Burning system

Build Burning system

There are types of kiln for burning bricks .After we got a deal about machines, engineers will be sent to guide you design and build kilns as per your actual situation.

Defining the Business

Business plan sections such as the Company Description and Organization and Management take a high-level look at the business, according to the Small Business Administration (SBA), which means they describe how the business works. When drafting these sections, describe the types of bricks you make and the raw materials you use, such as fly ash, clay or silicate, as well as your target market -- landscapers, wholesalers, individuals or a combination of consumers. List the number of facilities you have, how many kilns you use to make bricks and the role each employee, such as a kiln operator, plays in the manufacturing process.

Market Analysis

The business plan's Market Analysis, Marketing and Sales Management and Product Line sections analyze buying patterns in your target market, according to the SBA. These sections quantify which customers buy which types of bricks and in what quantity. Tracking consumption trends allows you to predict which bricks are likely to be in demand at certain times and then plan accordingly. If fly ash bricks consistently sell twice as well as clay bricks, for example, then these sections of your business plan would indicate that you should buy twice as much fly ash as clay. Buying patterns also help you predict how to develop and sell new bricks, such as those made from natural stones like granite and sandstone; they also indicate which bricks are not popular with your market and are a questionable use of finances.

Business Finances

Business plans for new and established brick makers should include current financial data from balance sheets, income statements and cash flow statements, according to the SBA. Balance sheets compare your business expenses to revenue to arrive at profitability; the balance sheet would reflect gross income by subtracting the cost of making bricks from the revenue generated by selling them. Income statements describe the amount of income generated by each type of brick you make, as well as which customers make up the greatest amount of your business's income. Cash flow statements track the path revenue takes through your business by quantifying how much money you spend on operating kilns, buying raw materials, paying employees and covering other costs.

The Plan's Audience

External investors, lenders and company management are all part of a potential audience for a business plan, as are grant providers, business partners and people interested in buying the brick-making operation, according to Business Link. "Masonry" magazine identifies three types of business plans: the mini-plan, the working plan and the presentation plan. The mini-plan is the germ of an idea, such as how to convince a landscaper who usually buys fly ash bricks to try silicate bricks. Working plans detail the day-to-day operations of the brick-making business and are updated regularly. These plans are typically informal guidelines that are useful for company management and department leaders. Presentation plans are formal, polished business plans to present to potential investors, grant providers or business partners.

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Sunday, January 4, 2015

Business Plans for a Brick Making | Business Ideas