Barnum Painters will provide top-quality interior and exterior residential and commercial painting services. The principal officers of Barnum Painters believe that most companies in this industry suffer two major problems. These are poor scheduling of job projects and poor retention of quality employees. Both lead to lower customer satisfaction, lack of repeat business and a low word-of-mouth referral rate. Barnum Painters believes it can exploit these weaknesses and gain local market share by implementing the contractor business plan.
The following are the goals for Barnum Painters in the next three years:
- To generate sales revenues of approximately $620,000 per year 3.
- To reach a customer mix that is 30% commercial and 10% residential per year.
- Expanding operations to include all of the Greater Seattle region, Kirkland Renton, and the Kitsap Peninsula.
The company will provide painting services in the quickest possible manner, with a continuous quality-control program to ensure customer satisfaction. Each contract is viewed by the principal officers as an agreement, not between a company and its customers but between partners who wish to establish a close and mutually beneficial long-term relationship. This will enable you to make long-term, more profitable referrals and repeat clients.
Barnum Painters will adopt the following key methods to help it achieve its goals.
- A position as inventory coordinator should be created. Each project should have at least one expediter.
- Each project needs a dedicated project manager who can manage quality-control concerns.
- Institute a program of profit sharing among all employees.
Barnum Painters LLC is a limited liability start-up company. The principal officers have combined industry experience of over 40 years. Barnum Painters will consist of Mr. William Barnum as well as Mr. Anthony Barnum. The principals will invest substantial amounts of their personal capital in the business and will also be seeking $7,000 for future growth and costs. A $10,000 line of credit has been obtained by the company (not shown in financial statements). This credit can be used for any unforeseen expenses.
Barnum Painters’ office will be in a rented room in the Rucker International Park at 710 Snoquamie Route. The space will include offices for the principals and a storage area for inventory. It also includes a lounge for employees. Barnum Painters offers a wide variety of services primarily focused on interior and exterior residential and commercial painting. It also offers services like drywall plastering, acoustical roofs, and pressure washing. It is designed to offer clients a wide variety of services that will decrease the need for them to employ multiple contractors. Barnum Painters will adopt a low-cost leadership approach while still maintaining a high level of quality.
Initially, the company will be focusing on residential and commercial customers within the Everett region of Washington. The company plans to serve the entire Puget Sound region by the end the three-year projections. The company thoroughly examined its financial projections. It found them to be both conservative in profits but generous in spending. This was done intentionally to allow for unexpected events. The company’s principals believe that cash flows projections are realistic.
Keys to Success
Barnum Painters principal officers have many years experience in contracting. Barnum Painters is able to solve two of the major problems facing painting contractors in this industry.
The first problem comes from scheduling of jobs. It is difficult for many painting contractors to keep their schedules straight with customers, which can lead to customer dissatisfaction and loss. Poor management, unreliable employees, and delays with inventory distribution and procurement are all factors that contribute to this problem. Another problem is retaining motivated, reliable staff. Painting companies often rely on temporary and transient workers, which can lead to high turnover rates as well as lower service quality.
Barnum Painters will establish the following key procedures
- The creation of an inventory coordinator position. Each project should have at least one expediter.
Mission
Barnum Painters has one mission: to provide outstanding interior and external residential and commercial painting services. Barnum Painters will provide the best quality services at the most reasonable prices. They also have a comprehensive quality control program that ensures 100% customer satisfaction. Principal officers of the company see every contract as an agreement between two partners, not between customers and businesses. They are meant to be a long-term partnership that is mutually beneficial. This will result in greater long-term profits via referrals and repeat customers.
Objectives
Barnum Painters’ goals for the next three-years are:
- Revenues of approximately $450,000 in the third year.
- You can achieve a client mix of 30% commercial and 10% residential building contracts each year.
- Expand operations to the entire Greater Seattle region, including Kirkland and Renton as well as the Kitsap Peninsula.