AuctionShipper is a start-up packaging and shipping organization that caters to online auctions such as eBay as well as offering regular shipping services to walk-in customers. AuctionShipper can be described as the convenient, affordable and environmentally sensitive service provider.
AuctionShipper has identified three keys of success that will be instrumental in its sustainable success. The first is to offer affordable packaging and shipping service. The second will be to ensure its services are as convenient as possible. It will not be a long-term customer if it isn’t the most convenient. The last thing is strict financial control.
AuctionShipper targets three segments of customers: new eBay users, advanced eBay users, and intermediate eBay users. Each group will have different compelling reasons as to why they use AuctionShipper. Recognizing the two distinct groups, they will target differently. The new eBay users are able to reach 11,216 potential users at a 15% rate. While the advanced users can reach 8,097 potential customers at a 9% rate. The last group is all customers with a growth of 7% or more and 23,221 potential clients.
AuctionShipper faces two different types of competition. There are two types of competition. The first is mom-and pop shops that offer additional shipping and packaging services. These shops often offer shipping as an additional service. Franchises are another form of competition. They focus on shipping and packing. There are many different competitors in this space and as a general rule have high priced shipping options. These service providers appeal to someone who values convenience and is willing to pay for it.
AuctionShipper is led by Jack Paacker. Jack, an experienced entrepreneur who began his first business while still in school, runs AuctionShipper. Jack will succeed in using his MBA skills and his business experience to run his own business. AuctionShipper will benefit greatly from Jack’s education and experience. AuctionShipper will achieve $185,000 in revenue for year two, rising to $285,000 for year three.
1.1 Objectives
Be the best auction shipping company.
Reach profitability in the first two year.
By year three, market penetration should be 15%
1.2 Mission
AuctionShipper’s mission is to become the premier auction shipping service. This will be done by offering fair prices, timely and environmentally sound services, and maintaining 100% customer happiness.
Twin Brothers Construction (TBC), plans to be a major provider of renovation and construction services in the area. The company’s strategy will continue to improve through the setting of objectives, measuring results and providing feedback that can be used to support growth and improvement.
TBC is a company that has its principal offices in the local region. Management at TBC is highly qualified and experienced. The brothers who will be leading the team are each more than twenty-five years old in the construction industry.
Products/Services
TBC’’s owners have accumulated years of experience in developing sophisticated scheduling, bidding and materials solutions to some of today’s most challenging construction projects. The company will be able to adapt its methods to suit a wide variety of building configurations.
Utilizing the company’s construction methods, systems, and tools, developers, owners, builders, general contractors, sub-contractors, and construction managers can make substantial savings on labor and material. Applications include commercial and residential structures.
Market
Since several years, the industry of housing has experienced rapid growth. 1998 was a record year for the number of single-family homes sold on site. This represents a 10% rise from the solid total of 804,000 houses sold in 1997. Even though there was a slight decrease in sales from 2003, it is still a huge opportunity for the industry to grow.
Twin Brothers Construction plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The marketing strategy will focus on securing city, county, and state and federal government contracts.
TBC plans to use a direct sales force, relationship selling, and sub-contractors to reach its target markets. These channels are best because they have a quicker time to market and lower capital requirements. They also provide access to established distribution channels quickly.
Financial Considerations
We anticipate that we will reach break-even within the second half of the year. Although the initial cash expenditures were significant to promote sales, the cash account of the company is expected to be healthy. The company is expecting to make approximately $772,000 in sales and moderate net profits by year 3.
1.1 Mission
Our mission is to be the best partner for our customers, suppliers and employees. To realize our vision, we will strive for profitable growth, operational excellence, customer satisfaction and strong brand positioning.
1.2 Objectives
Up to three construction projects can be established in the first year.
To have two building renovation projects in progress by the end of the first year.
To find and purchase our first rental house by the end o the first year.
To achieve a minimum of 7% profit within the second calendar year.
1.3 Keys for Success
Our keys to success are:
Using the most updated materials and equipment to assure quality construction projects for ourselves and our customers.
Educating the customers and providing valuable advice during the construction planning stages.
Helping to confirm customer’s research about targeting markets and specific sectors.
Supervise the logistics of a project. This can include booking local transportation, scheduling meetings, and so on.
Delegating the actual work to qualified, experienced sub-contractors and third-party contractors.
Falls River is an older town that lost its sole movie theatre a decade ago. Residents who want to go to the movies must drive 30 miles to get there. The theatre is usually a mega-plex of antiseptics, devoid of any character once they arrive.
Falls River Theatre will bring Falls River residents a long-awaited local movie theatre. These films will be second-run releases of popular movies for young people and families. The building that will be home to the facility is the historic theatre building. Built in 1936, it has been home for the long-running acting companies of the town. It has been used for community functions only since its closure. Before its grand re-opening, the owners will restore the building to its former glory as one of the town’s main destinations for evening entertainment.
Steve Brinksman (the owner) and Samantha Farmer (the operator) have the experience, capital and expertise necessary to make this theatre a success. Samantha has managed a large moviehouse for seven year, gaining valuable skills in management and movie selection as well as establishing relationships with key figures in the industry. Steve has the skills and ability to restore and upgrade the building so that it will be comfortable and welcoming.
We see modest profits in the second year despite a large initial investment from our owners.
1.1 Keys for Success
Proper film selection for the theatre’s audience and environment.
A mix of quality snacks, beverages and traditional movie fare will bring in more revenue.
It is essential to manage internal finances carefully in order to control the costs.
Great customer service.
1.2 Objectives
A healthy year for sales and more than doubling in the third.
Concessions generate high revenues.
Year two: Moderate to stable profit margin
1.3 Mission
Falls River Theatre’s mission in life is to bring big-city entertainment to small-town residents. Our customers will enjoy comfort and high-quality presentation of second-run films, all within a quick drive or walk from home. Falls River residents are accustomed to this comfort since the theatre closed 11 years ago.
We aim to please local residents (who can only wait a few months to see their favourite movies and don’t want the high-priced new releases from big cities). We will also provide affordable snack foods and beverages to our customers.
The Center for Technology and Investment (“CTI”) is a company dedicated towards bringing technology investment to small rural businesses. This company was founded on the belief that rural small businesses are in dire need of technology consulting and experience. However, they don’t have the resources to hire large multinational companies to do the job.
CTI is a pioneering new force in rural Oregon. It will do this by utilizing innovative funding sources like grants and donations from the owner’s business and other individuals who are interested to support rural Oregon’s economic growth.
CTI’s Management Team consists of Bill Franklin. Mr. Franklin has developed technology in the Silicon Valley for over 35 years, and was one of the first Electrical Engineers to work at the Stanford Research Institute (SRI). Franklin is a leading expert on technological advancement. He owns multiple businesses and sold two of them for a profit.
The market for CTI’s services are not limited to rural Oregon, and if the business expands, it is likely to expand further into the rural West. In the Western United States, there are more than 45,000 rural “mom-and-pop” businesses. A large number of them don’t have any experience in high technology or know little about alternative funding sources.
This investment business plan helps formalize the strategy. This open credit is to provide cash flow management and a $10,000 loan to start with CTI.
1.1 Objectives
The Center for Technology and Investment will serve the needs of approximately 500 clients by Month 4 of Year 1. The Center for Technology Investment will serve the needs of approximately 500 clients by the fourth month. At least 50% will have bought one or more products, and 100% will purchase services.
Below are some financial goals:
Within the first year achieve a 25% contribution margin on books, software, academic materials, and other products.
Limit revenue costs to 20%
From Month 1 to Month 12, net revenue increased 350%
30 % net revenue margin in year 1, 35% in year 2.
1.2 Mission
The Center for Technology and Investment (a non-profit organization) was founded to assist rural small businesses in using technology more efficiently. The company’s charter was based on the fact that many rural small business owners don’t have access to the right resources and connections to make technology work for them. Our mission is to fill this gap through training and education of small business owners in how to use their resources effectively and to take advantage of technology available to improve the performance of their businesses.
The organization will have fulfilled its mission when all of its clients have achieved growth rates above 20% combined.
1.3 Keys of Success
Here are some key keys to success.
Concentrate on the target market. Dig down to several layers of demographics.
Intricate planning and execution. Quarterly seminars need to be thoroughly researched, with accurate costs understood and fresh content maintained.
Retainer Consulting must remain low-cost to rural business owners. This must be a small percentage from any SBA program or technology grants that are available to them. CTI should not be seen as a broker of SBA funding, or other funding. Instead, it must serve as a consultant with the expertise to help clients obtain high-level funding in technology.
Financials must be kept above the highest standards due to nonprofit status in a largely for-profit industry.
Web Solutions, Inc., (Web Solutions) can be described as an Internet Service Provider, ISP based in Phoenix, Arizona. This company provides the following services to customers:
Dialup and dedicated Internet access (up to 64 Kbps).
High bandwidth Internet Access (128 Kbps).
Integrated Services Digital Network
Digital Subscriber Line
Wireless.
Hosting websites and virtual sites
Co-location of servers
Services for network design, installation, administration.
Web design (currently outsourced).
Web Solutions was founded to offer customers a comprehensive solution for all their Internet and private networking needs. Customers include all consumers, small to medium-sized companies, and start-ups.
Web Solutions can benefit from many strategic alliances that allow it to obtain very competitive pricing for almost all its services. This allows them to offer their customers competitive pricing.
ISPs allow people to access the Internet. International Data Corporation (IDC), a Framingham-based information technology research and consulting company, predicts that the market for consumer ISPs will grow from $10.7 billion to $37 billion by 2003.
Other ISPs based in Phoenix are competitive threats. These include Jump.Net (Arizona.Net), Arizona.Net (EarthLink), and Mindspring. Most competitors offer solutions for Windows, and perhaps Macintosh, but ignore all other operating systems. Web Solutions could be a better option than its rivals, given the success of Linux and other alternative operating system.
Web Solutions has a world-class management team with direct knowledge of the industry, extensive research experience, and unique administration skills. Its team includes Ms. Geena Williams, Mr. Jason Williams, and Mrs. Amy Williams.
Projected revenues for 2000 through 2002 substantial steady growth. The company seeks major investments to fund four areas for growth.
Increase staff to manage sales, service and development.
Increase marketing to assure future customers are aware of our offerings and aggressive pricing.
We will expand our base of operations by using wholesale providers, partnerships, or other mechanisms to reach the top 100 U.S. countries for dedicated Internet access and dialup.
You can conduct research and development in order to bring new products onto the market.
1.1 Mission
Web Solutions’ mission is to offer customers a complete solution for all of their Internet and private network requirements.
Web Solutions has a reputation for high quality work and plans on continuing to grow its position in the market. The company seeks to become a well-known and respected provider of advanced network solutions by:
Increasing the number of services offered
Increasing availability and accessibility to current and future customers.
Create innovative, cost-effective and unique solutions for customers’ problems.
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.
You should assign a project manager that can manage quality control issues for each project.
Establish a program for profit sharing among all employees.
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.
Companies need to make sure their employees have the best training and tools available. They use the retreats to help colleagues get together and work well together which helps avoid turnover. Happy coworkers mean happy customers
Solution
Corporate Retreat Professionals (CRP), an event planning company that specializes in corporate clients, is called Corporate Retreat Professionals. CRP will offer retreat training services and product launches event planning. The retreat training services include leadership development training and teaming skills training. CRP can help with both the planning and hosting of these types of retreats by partnering with one of its strategic business partners.
Market
The corporate market for event planning is steady and profitable. In some cases, large companies will have to make cuts in their training budgets due to economic downturns. But this is not true for all companies. These benchmark companies might reduce the workforce during downturns, but they don’t cut funding for training. They know that investing in human capital is always a wise investment. CRP intends to profit nicely from this. CRP will also be able to profit from product launches even during economic downturns. CRP will be able to capitalize on the ever-increasing demand for corporate event hosting/planning services.
Concurrence
In the past the purchasing patterns of large corporations were dictated by the availability of an in-house solution. This pattern is in decline as outsourcing has the potential to offer efficiency improvements.
Why Us?
Corporate Retreat professionals can help companies plan the most memorable events. Our goal is to keep customers coming back. All else will fall in line if we live by this maxim. Our services will surpass the expectations of customers.
Expectations
Financial Highlights by Year
Financing Needed
We will receive $50,000 as a gift from the founder and owner.
Despite the continuing slide in this industry, the US housing sector saw its record-breaking $550.14Billion gain last year. This sector is expected to continue its steady growth in the coming years. The segment’s top revenue-generating sector is single-family housing construction. It accounted for 67% of all residential construction in the US.
The business model of the industry has evolved over the years towards greater cost efficiency and lower entry barriers. The industry was characterized by low barriers to entry, aside from the need for state-based licensing and registration. But, the competition is mostly based on reputation and demonstrated performance. Many new competitors have difficulty establishing a foothold in this market.
Existing companies have many advantages over new entrants. They:
Get access to skilled subcontractors.
Keep in touch with your suppliers.
Establish ongoing agreements with financial institutions and property development companies.
Can display completed examples of their work in a local market and leverage off “word-of-mouth” referrals.
KnaelHaed ASPware – KnaelHaed is a provider Web based vertical market software applications. The DigitalSuspenders is an online software solution to be offered by KnaelHaed ASPware in support of the building construction process.
The Issue
In terms of R&D investment, the construction sector is behind other industries. R&D investment for mature US businesses is typically 3.5% of sales. In some industries like aerospace, that number could be as high at 7% to 14%. Construction only reinvests 0.5%. While the reasons for this low reinvestment can vary, they are often due to cost and complexity. Most construction firms employ less than 10 people and earn very low profits. Technology spending is often viewed as an expensive luxury.
The Solutions
DigitalSuspenders is a family of Web-based software programs that will support all phases of the building lifecycle, from conception to construction to management. This suite supports small contractors with online collaboration, digital takeoff and estimating as well as project and property management capabilities. It is easy to use and understand.
The Market Size
According to the latest Economic Census, 163,703 establishments are part of the home construction industry. They employ 796,880 people. According to the most recently completed Economic Census, this industry has grown to record 175,000 establishments. In contrast, 34,588 establishments are found in the US’ commercial and institutional construction industries. Construction accounts for around 8% US GDP.
Start-up cost
KnaelHaed ASPware anticipates initially requiring $120,000 to complete the beta prototype of the DigitalSuspenders, provide for legal and infrastructure expenses related to start up and to cultivate potential customers. We intend to seek capital from corporate partners as well as angel investors for the initial financing of our start-up.
Potential Payoff
KnaelHaed ASPware expects to break-even in two years. We expect royalty income from licensing our position sensing system and software technology. KnaelHaed ASPware hopes to have the company listed or sold within three to five year to drive further growth and provide liquidity to investors.
Management Team
Paul Peen, the current President & Chief Executive Officer, has over 20 years of experience in commercial software development, including stints at Microsoft and Expedia.com.
KnaelHaed ASPware combines interactivity, speed, and connectivity to create a first-of-its-kind software that offers both efficiency, and a cost-saving strategy, for builders and subcontractors. KnaelHaed offers competitive pricing on solutions by outsourcing. KnaelHaed ASPware is dedicated to the development of new ideas that are useful in achieving clients’ objectives. Together, the owners’ passion and accumulated field work has made KnaelHaed ASPware more than “just-another-outsourcing-hub”, but a catalyst for the next e-commerce re-invention.
1.1 Objectives
The mission of KnaelHaed ASPware is to provide a medium for custom builders, general contractors, design builders, engineer-contractors, joint-venture contractors, and turnkey contractors to outsource their works with greater cost saving efficiency.
This model will be a disruptive force to construction software companies who charge thousands for every copy. KnaelHaed ASPware’s model is to offer a subset of these capabilities for free. Utilizing the open-source business model, KnaelHaed ASPware’s ideal mission is to provide better solutions for all stakeholders.
1.2 Mission
Our target market is builders and subcontractors who want to profit from outsourcing. The industry today is supplied independently by software companies whose products are quite costly for small and medium sized users. Because the average home builder builds only around a dozen houses per year, only a handful of companies can be considered large enough to afford premium licensing for a software package.
According to our estimates, approximately 60% of US’s total market would fall under the small and medium builder criteria, which would mean that 118.980 buildings are possible. Our attention will be on establishments that place emphasis on cost efficiency, and produce precise results.
1.3 Keys for Success
We chose the construction market to be our target for several reasons. It is a $787 billion industry, both residential and commercial. This sector offers great growth potential. The annual unit growth of the number of establishments in the housing sector averaged 6.45% and commercial/institutional sector 0.46% last year.
Despite the low growth in the construction industry, it still remains a very fragmented market. Within the US alone there are over 200,000 establishments (both housing and commercial/institutional) on record.
These are the keys that will make us successful:
Building and maintaining strategic alliances with our software vendors and other industry related business partners
Adopting a customer-centric and market-focused sales/marketing paradigm
Managing the business by implementing, and consistently measuring and adjusting the fundamentals of a Balanced Scorecard:
Goals of Employee Learning and Growth Results
Financial Goals Vs. Results
Goals of the Internal Business Process Vs. The Results
The Southwest Veterinary Clinic will open in Richmond’s southwest. The clinic will offer a full range of medical services to the area’s pet owners. Southwest Richmond is home to both residential and industrial properties. It is home to around 20,000 residents with moderate incomes. Many of these residents are older and have multiple pets.
The three nearest veterinary clinics to southwest Richmond are located within a 15 minute drive. Southwest Veterinary Clinic will be a five minute drive from most locations in southwest Richmond.
Michelle Johnson (DVD) and Edward Anderson (DVM), have seven years’ combined experience. Edward has four-years experience at Richmond Emergency Veterinary Hospital. Michelle has been a staff veterinarian at Blue Cross Hospital for three years.
Residents in southwest Richmond have access to both Richmond Emergency Hospitals and Blue Cross Hospitals. Michelle and Edward have taken care of many pets from the southwest area of town over time. Most of these customers praised the service they received. Thirty-three customers confirmed their intention to use the new hospital services.
1.1 Mission
Our goal is to help customers’ pets live long, happy and healthy lives. We believe that a key element to a healthy pet is a great relationship with your veterinarian. Southwest Veterinary Clinic takes pride in providing personalized, caring and professional service. Southwest Veterinary Clinic is proud to offer the best veterinary medicine. We are a full-service clinic that offers state-of-the art veterinary medical technology.
1.2 Keys to Success
We treat our patients like our pets, and strive to provide the best service possible.
We take an individualized approach to the long-term care of each of our patients and are dedicated to providing our clients with enough information to make appropriate decisions concerning the health care of their animal companions.
Comgate is a custom-mill house that specializes in architectural woodwork, such as wall panels, custom cabinets and other products, for the local residential market. After initial losses and several thin profit years of competitive bidding construction projects, Comgate is creating this business plan in order to bring its mission statement into clearer focus. Prior years were marked with intense efforts to bid as many jobs and high-stakes negotiations. Margins were thin as pricing policy was “flexible†for fear that there would be insufficient work for production staff.
Comgate can increase its margins and efficiency with sufficient sales growth. This will allow Comgate to improve its overall profitability and long-overdue restructuring. We are focusing our efforts on the target market. These changes will ensure greater accuracy in pricing, billing and tracking costs for comparison purposes. Expectations are for increased profits.
The Company
Comgate’s mission is to be a profitable competitor in Connecticut’s high-end residential custom woodwork market. It will be a leader in custom work and specialize in the most difficult needs of designer homes, new or remodeled, in the price range of $3 to $15 millions.
Products
Comgate is engaged with custom architectural woodwork. This includes wall paneling in various forms, moldings, moldings, pilasters in radius units, circular stairs in special woods, elaborate dressing areas, and specialty kitchen work. With the recent addition to state-of-the art CAD capability, Comgate will be able to significantly increase sales for higher-end product lines by targeting design professionals who can influence subcontractors when building homes that are trophy’ homes. These homes are more expensive than $3 million. Comgate is all about ‘#8220’customer. The average home wouldn’t use our products. Custom woodworking of the type carried out by Comgate is made to order only. No finished goods can be held in stock. It is not common for finished goods to be made up for stock.
Market
The industry has a long history and is well represented. Many mill shops can be found in the same market, but they are all focused on different areas. One mill shop may concentrate on custom furniture and form special alliances with upholstery shops. Other mill shops may focus on standard kitchen cabinetry. Comgate targets the residential market at the top ($3-15 million homes). This work is not as price-sensitive and can be maintained even during economic downturns. The company’s most important competitive weapon is its CAD capabilities. This program is specifically tailored to the custom woodwork market. It is expected to have a significant impact on the residential market at the highest end. Comgate will be able stand out from the rest and fully exploit its newly expanded production capacity.
Comgate is integrating its CAD capability and the practices design professionals to allow it to outsource parts that are less complex to other mill shops. However, Comgate will continue to build trophy homes. Comgate will be able present a mill shop with exact CAD drawings and precise material lists. This will help increase sales and profits.
Financial Projections
The recent addition of over $110,000 in advanced new Computer Numerical Control (CNC) machinery, coupled with the building of an in-house industry-adapted Computer Aided Drafting (CAD) capability, will propel sales to nearly $800,000 by the end of Year 1, and $1.2 million by the end of Year 3. Profits will grow as well. In order to maximize trade discounts and increase receivables, it is possible to reduce accounts payable in Year 2. This will create a short-term need to borrow more bank lines of credit.
1.1 Mission
Comgate’ is a company that aims to be profitable in the Connecticut high-end residential market for custom woodenwork. We will place a high value on quality custom work and be able to meet the most stringent requirements of designer homes that are being built or renovated in the price range of $3 to $15 millions.
1.2 Keys to Success
Success in the contractor industry is dependent on these key factors
Industries that are involved in mill shop manufacturing include:
Avoid bidding for projects based solely on price.
Price the job correctly. This will require:
Accurate takeoffs and listings
A clear understanding between the company and the client, in reference to quality and terms of payment.
Calculate accurately the material required for completion of the project (including wastage).
Properly applying overhead factors and profit margins as well as any other considerations is key.
A system that supports the operation of operating procedures and keeps track of job costs. It compares job bids with actual job costs. Continuous adjustments to bid formulas.
Reliable production staff that can communicate with administration in order to produce the job on time, as per bid, using maximum labor, materials and machinery.
1.3 Objectives
ComgateՉ۪s major goals are:
Increase production. The new machinery and four production workers have been carefully measured to ensure that the full productive capacity is reached. The goal is to reach, on a monthly basis, 80% of this capacity in the last quarter of Year 1, 85% in Year 2, and 90% in Year 3. This 80% capacity means that 342 feet worth of crown molding, 22 pilasters and 54 doors in various grades are produced each month. There is also a need for 77 feet cabinets or an equivalent combination. This will result in monthly sales of $60,816.
It is much easier to keep site contractors (six). At present, full employment levels generate monthly revenue of $34,623, which (after expenses), nets the company $21,794.
Continue to increase awareness of the company’s in house CAD capability, especially in Hartford, New Haven Stamford, Stamford, Norwalk and Shelton. These are the areas that have the highest concentration of the $3-15 million residential homes.
Join the Connecticut Chapter of American Society of Interior Designers as an industry partner and the Connecticut Society of Architects as a CSA member. Get listed in their resource directories.
Make the necessary administrative changes to ensure that all work has been properly billed.
Work to complete an operations manual that has been started.