How Much Does a Construction Company Owner Really Make?

How Much Do Business Make

Entrepreneurs are always looking for new and innovative ways to make more money. The construction industry has a lot of potential for income growth. However, many entrepreneurs don’t clearly understand how much they can make as the owner of a construction company. 

This article will explore the average earnings of a construction company owner, as well as the factors that affect profitability. We will also provide some tips to help construction company owners increase their profitability.


The Average Earnings of a Construction Company Owner

The average construction company owner earns a salary of $85,000 per year but can make up to $145,000 per year with experience. The average construction company earns about $30 million per year in revenue with a profit margin of around 6%. However, construction company profitability can vary greatly depending on several factors.


Factors that Affect Profitability

Many factors can affect the profitability of a construction company.

Size of the company

Construction companies with more employees tend to be more profitable than smaller construction companies.

Experience of the company

Construction companies that have been in business for longer tend to be more profitable than newer construction companies.

Type of projects

Construction companies specializing in commercial or industrial projects tend to be more profitable than those focusing on residential projects.


Construction companies in major metropolitan areas tend to be more profitable than those in rural areas.


Tips to Increase Profitability

There are a few things construction company owners can do to increase their profitability.

Reduce Expenses

One way to increase profitability is to reduce expenses. This can be done by negotiating better rates with suppliers, cutting unnecessary costs, and increasing efficiency.

Get More Clients

Another way to increase profitability is to get more clients. This can be done by marketing the construction company more effectively, networking, and providing superior quality services.

Only Hire The Staff You Need

It’s essential to only hire the staff you need to avoid unnecessary costs.

Raise Your Rates

If you’re providing high-quality services, you may be able to raise your rates and increase your profits. You should also raise your rates if you are not meeting your target profit margin.



As the owner of a construction company, there is potential to earn a good income. However, it’s important to understand the factors that affect profitability and how to increase profits. 

Following the tips in this article, you can ensure your construction company is as profitable as possible.