Introduction
Compton Geotechnical Associates Inc., (CGA), will provide innovative solutions to geological engineering service throughout Maine.
CGA will target this narrow geographic area and leverage its collective reputation. This will allow CGA to enter the market with long-term, cost-effective contracts that focus on quality service. We believe we can serve this market better than larger companies and have better service packages than other comparable-sized firms.
The Company
CGA will be a Delaware limited liability partnership for tax purposes. Its founder is Mr. Martin Compton, a former engineering geology department head with Wilson and Brown, Inc. Mr. Compton has brought together a highly respected group of geologists, hydrologists, engineers and graphic art specialists who, combined, have a total of 35 years of experience in this industry.
The company currently has only a small number of private investors. They do not intend to become public. The company has its main office in Augusta Maine. The facility includes a soil/rock/water test lab, conference room and office spaces. The company plans to start offering its services in January 1, 2001.
The main clients of the company will be large construction companies, local, state, and municipal governments, as well as utility and water companies. Our focus on institutions that have special needs will allow us to provide better service and a superior service.
The Services
CGA offers complete geo-engineering service to all of our clients. Our services fall into two main categories of geotechnical engineering services and construction monitoring/laboratory testing.
Some of these services include surface and groundwater evaluation, slope stability analysis, bluff studies, laboratory analysis of soils, rocks and groundwater, load testing, and settlement analysis. Each project is custom-tailored to each client. The scope, cost, reach, depth, and reach of each project are all unique.
The Market
This market is full of potential, especially because many potential customers are required to perform geotechnical surveys and monitoring prior to construction.
Since 2000, the geoengineering business has experienced rapid growth. According to Journal of Hydrology & Geoengineering over the past five-years, the industry averaged around 22% annually. For every few dozen well-known firms, there are thousands of smaller consulting companies and individual consultants. These companies range in size from multinational corporations with a strong brand to small local businesses that employ tens of thousands.
Financial Considerations
You will need to start-up assets [see the Start-up Table]. This includes expenses as well as the cash required to support operations up until revenues become acceptable. While most of the company’s obligations will come from outside investors and management investments, we have secured [see Startup Funding table] in current borrowings from Bank of America Commercial Investments. This principal will be paid off in two year. Charter Bank of Augusta will pay off a long-term loan of [see Start up Funding table] in ten years.
The company expects to be profitable in year one, and has no plans for serious cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be about $8,000. We expect that about three projects per month will guarantee a break-even point.
1.1 Objectives
The three year goals for Compton Geotechnical Associates (CGA) are the following:
- Breakeven within two years
- At least four clients should be signed up for long-term agreements.
- To build long-term relationships and word-of mouth marketing, we must achieve a minimum 95% customer satisfaction rate.
1.2 Mission
CGA strives to be innovative in providing geological engineering services. CGA also strives for long-term client relationships. CGA delivers excellent services in a timely, cost-effective way.
1.3 Keys to Success
The keys to CGAՉ۪s sustainability and long-term profitability are listed below: