Hass Irrigation Systems can serve our customers’ irrigation needs. Hass Irrigation Systems is focusing on Monroe’’s Lake Charles subdivision. For the past 10 year, the city’s population has grown by 9% every year. The city’s new construction in Lake Charles has been valued at $600million in home sales for next year.
Currently, Hass Irrigation Systems is a subcontractor with Bentwood Custom Homes, Greenridge Homes, and Landmark Homes to provide irrigation services to their new homes in the area. Hass Irrigation Systems plans to market its services from this base to homeowners in Lake Charles.
The current population of the city’s Lake Charles area is 120,000 with an income range of $100,000 – $500,000. Hass Irrigation Systems can capture a significant portion of the irrigation market in this residential area.
1.1 Objectives
Hass Irrigation Systems aims at:
Capture the majority of the irrigation business in the Lake Charles area.
Our customers will receive a high-quality service at a very affordable price.
1.2 Mission
Hass Irrigation Systems will never forget customer satisfaction. By putting the needs of our customers first, we will expand our customer base. We will not operate in the same manner as other irrigation businesses. We won’t disappear in October and then reappear in March. Instead, we will be available when our customers need us.
1.3 Keys to Success
The keys to success for Hass Irrigation Systems are:
Service that is prompt and polite
Our irrigation expertise is unrivaled by any other company
Inspect A-bode is a residential home inspection service serving Eugene, OR and the surrounding community. Inspect Abode provides home inspections that are complete. They also offer additional services like radon testing, electromagnetic field testing, and asbestos testing. The service will be available to both buyers and sellers. Most of the sales will be made by real estate agents that have formed strategic relationships with inspect A-bode.
In order to reach projected profitability, the company’s two major goals are the utilization/reference of Inspect A-bode in at least five of the top 15 real estate brokers in the area, and to increase the number of clients sold by 20% per year.
The Company
The company will operate as a sole proprietorship, owned and managed by Mr. Chek. Domisile, who has 12 years’ industry experience, will be the sole-proprietor of the company. This will allow Mr. Domisile to leverage his 12 years of industry experience and provide a competitive edge.
Selle Domisile, Chek’s wife will be a paid consultant. Selle has worked as a residential agent for the past 10 years. Selle will leverage her existing connections to generate referrals for Inspect A-bode. The company does not plan to hire any additional employees and will have all accounting and bookkeeping subcontracted.
Services
The company offers many different inspection services. These services include foundation analysis for cracks and settlement, as well as moisture influx. These inspections check for water pressure and look for any signs of deterioration or leaks. The company’s electrical inspection looks for loose wires, shorts, shock/fire hazards, and proper functioning of Ground Fault Interrupt (GFI) receptacles. A house’s interior inspection will determine whether it has adequate heating and insulation, ventilation as well as vapor barriers, dry-rot, pest infestations, and other carbon dioxide hazards. Asbestos testing, radon and electromagnetic field testing are all options.
The cost of the full service is $200-$400, depending on size of home, layout, and any areas such as a swimming pool requiring special attention.
The Market
The home inspection industry in Eugene is decent sized, about 20 different companies. Most companies are small outfits and offer a fairly standardized service. The items that are inspected are the same as their price.
Inspect Abode will be focusing its efforts on two broad groups of customers. The first is real estate agents. A financial incentive will be offered to the agents for referring Inspect Abode customers through their strategic relationships.
Individual sellers and buyers can also be targeted by inspect A-bode. Each group has something to gain from having an inspection performed on the property they wish to buy/sell. Inspect A-bode will target these groups through focused advertisements providing visibility of Inspect A-bode.
The company will launch an advertising campaign in magazines that home buyers read, as well the Yellow Pages.
1.1 Objectives
Inspect A-bode’s objectives for the first three years of operation include:
To create a service-oriented business that surpasses customer expectations.
The utilization/reference of Inspect A-bode in at least five of the top 15 real estate brokers as listed in the Eugene Chamber of Commerce book of lists.
Superior performance is required to increase the number and sale of clients by 20% annually
To develop a sustainable home business.
1.2 Mission
Inspect Abode’s mission, is to provide quality home residential inspections. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
Indonesia EEC (U.S. Energy Engineering & Construction) is a subsidiary company that offers services such as engineering, design and procurement, construction and project management, environmental consulting and management consulting, quality assurance, quality control, information management and operations maintenance and process technology development.
Management of the U.S. EEC wants Indonesia EEC’s financial performance to be good. Indonesia EEC, a subsidiary of U.S. EEC has the following objectives regarding the products and service lines for EPC power generation projects and power delivery projects.
Increase customer awareness over the planning period.
A joint venture can be established with a trusted local company, which will reduce competition and lower risks. It also helps to lower prices.
EPC prospects are not the only ones to pursue.
Utilizing the joint venture company as the main entity of EEC to conduct business in Indonesia, and to provide all aspects of energy engineering services.
2.1 Company Ownership
Indonesia EEC was founded as an Indonesian Perseroan Terbatas (PT.) Corporation based in Jakarta (Indonesia) under the Foreign Investment Laws of Republic of Indonesia. The company is owned entirely by the Energy Engineering & Construction company of U.S (U.S. EEC).
2.2 Company history
EEC has been operating a Jakarta-based representative office since the 1980s to establish its presence in Indonesia’s market. It saw the need to establish a presence in Indonesia as both a local business that can meet the needs of potential customers and its longer-term, larger U.S. customers who invest in Indonesia and the Southeast Asia Region.
Indonesia EEC was founded in 1996. U.S. EEC is the sole owner of all shares.
Past Performance
1996
1997
1998
Sales
$50,000,000
$65,000,000
$87,500,000
Gross Margin
$23,000,000
$29,900,000
$40,250,000
Gross Margin %
46.00%
46.00%
46.00%
Operating Expenses
$4,800,000
$4,850,000
$4,645,000
Collection Period (days).
72
63
63
Balance Sheet
1996
1997
1998
Current Assets
Cash
$15,000,000
$19,500,000
$26,250,000
Accounts Receivable
$6,112,981
$7,946,875
$10,697,716
Other Current Assets
$525,931
$683,710
$920,380
Total current assets
$21,638,912
$28,130,585
$37,868,096
Long-term Assets
Long-term Assets
$710,837
$924,089
$1,243,965
Accumulated Depreciation
$0
$0
$0
Total Long-term Assets
$710,837
$924,089
$1,243,965
Total assets
$22,349,749
$29,054,674
$39,112,061
Current Liabilities
Accounts Payable
$2,478,188
$3,221,644
$4,336,828
Current Borrowing
$0
$0
$0
Other Current Liabilities (interest not paid)
$0
$0
$0
Total Current Liabilities
$2,478,188
$3,221,644
$4,336,828
Long-term Liabilities
$0
$0
$0
Total Liabilities
$2,478,188
$3,221,644
$4,336,828
Paid-in capital
$1,996,500
$3,295,460
$4,743,900
Retained earnings
$116,967
$952,048
$1,781,333
Earnings
$17,758,094
$21,585,522
$28,250,000
Total Capital
$19,871,561
$25,833,030
$34,775,233
Total Capital and Liabilities
$22,349,749
$29,054,674
$39,112,061
Other inputs
Payment Days
30
30
30
Credit Sales
$31,098,365
$40,427,875
$54,422,140
Receivables Turnover
5.09
5.09
5.09
2.3 Facilities and Company Locations
The office is situated in downton Jakarta. This location provides convenience, being near the airport, but also allows the company room to grow. Indonesia EEC occupies an area of 800-square meters and has offices for each department.
Customers in the Houston area are in need of beautiful office buildings, warehouses, public works etc. The area is growing rapidly and they need a company with the right materials and high quality work to build what was needed.
Solution
Fosse Commercial Contractors strives for the highest quality design and site preparation. We also provide cost estimates, construction, repairs, and alteration services to large clients. Fosse offers the highest quality commercial construction service.
Market
Houston is booming. Businesses have grown in the Houston region for the last few decades and are expected to continue this growth for at least the next 4 years. Fosse Commercial Contractors can profit from this attractive market.
We will be focusing on the clients that will offer us the highest return, which is those who require office building construction. This is our fastest growing client segment. The other categories that we will serve include the restaurant segment, the special facilities segment, and all other potential commercial clients.
Competiton
We currently have three main competitors in the Houston area. These are TNT General Contractors, Texas Specialty Construction, and Polanski Construction. Fosse clients are targeted by all three of these companies and they have each earned a high reputation for customer service. Houston is experiencing rapid growth and demand for services is higher than supply. This is a great opportunity to increase market share and defend your position in the industry.
Why Us
Low cost and good project management are the best ways to be competitive in the construction industry. One of the most important processes for winning a contract is the bid process. Fosse has a unique competitive edge over most of its competitors. FCC’’s General Projects manager, Mr. David West, is the nephew and owner of McHoughton’’s Lumber, one the Midwest’s most important construction material suppliers. Fosse has been able obtain a very favorable supplier contract which allowed Fosse access to its materials at a significant discounted price. This gives Fosse an advantage over its competitors and allows it to take a leadership position at a low price.
Expectations
Forecast
Fosse has only a small amount of debt and intends to stay that way. We expect to see higher profits as a result of our market shift efforts before the end of year 2. As we expand our market penetration, we expect to see lower profits over the next three years. As we grow and benefit from economies of scale, we expect to be able reduce marginal costs and increase overall profitability in Year 3 and 4.
We also think we can grow. Our goal is to double our revenues for the next year to nearly $900K from $572K in 2017. We have the market and the people. It’s time to grow.
Growth can be costly. For most of the first year, we are willing to inject capital to offset losses. For years 2 and 3, we can turn a profit.
Concrete Fabricators offers services in concrete fabrication. They use formwork, lay foundations, concrete placement, excavation, and other related services. Concrete Fabricators has performed work in the Norman and Southwestern Oklahoma regions and plans to bid for contracts on commercial concrete projects at every level of the state.
The company plans to become the largest provider of formwork-services for reinforced concrete in the State. This means that Concrete Fabricators will always have the most efficient and effective facilities, processes, as well as people. To achieve this, Concrete Fabricators will invest in ways that will pay off in competitive advantages for its customers, such as structural plan review, including pre-job conferencing upon request, equipment, and a full line of forming, reinforcing, and aftermarket products. To gather feedback from customers, Concrete Fabricators developed a client assessment form. These needs will be met and the company improved.
The safety of employees and their health is the greatest concern in the concrete industry. Concrete Fabricators makes safety its number one priority. Our customers as well as our employees expect us to keep them safe on the job. The company has recognized the need to keep taking steps to develop a comprehensive infrastructure designed to make us not just a company with a safety policy, but a “safe company.”
Concrete fabricators play an important role in the concrete construction industry. This category includes contractors who specialize in concrete work such as portland cement or asphalt. Companies in this industry generated total annual sales of approximately $21 million, with an average sales per establishment of $.7 million. Portland cement concrete factories were mainly involved in the production of sales. They generated an estimated $19 million in annual sales and $6.5 million on average per establishment.
1.1 Mission
Concrete Fabricators’ mission is to be the premier contractor in providing high quality concrete and concrete masonry work.
Concrete Installation LLC hopes to be the premier provider of concrete work services in the region. This requires that Concrete Installation LLC has the most efficient and effective facilities, processes, people, and equipment. Concrete Installation invests in many areas that will provide competitive advantages to its customers.
The company’s overall strategy depends on continual improvement. It will set objectives and measure results. Feedback is provided to encourage growth and improve the company.
Concrete Installation is a Oklahoma Limited Liability company with its principal offices in Sulphur. Concrete Installation’s management team has extensive experience and is highly qualified. Barry Newman, a veteran of the construction industry for over ten years, leads the management team.
Products/Services
Concrete Installation has designed sophisticated formwork solutions for some the most complex construction projects. Concrete Installation’s standard forms are flexible and easily adaptable to various configurations like Y-walls or shafts.
Concrete Installation can be tailored to any construction need that calls for forming. The company’s experienced staff is able to design and produce any accessory item or component required to complete the formwork package.
By using structural contours construction methods systems and equipment, owners, developers and contractors as well as concrete subcontractors, they have experienced significant savings in labor and materials costs. This includes commercial and residential buildings, bridges, education projects, recreational projects as well, tunnels, utility projects, environment projects, and any other type of concrete construction.
The Market
The housing industry has experienced a rapid pace over several years. 1998 saw the sale of 886,000 single-family homes on new sites. This was an all-time high. This represented a 10% increase over the 804,000 homes that were sold in 1997 and an 8.1% increase from the 1977 record of 819,000 homes. Single-family housing construction accounted for $48 million of the total $125 million generated in the industry. This is a great opportunity to expand Concrete Installation operations, and gain significant market share within its primary target market segment. The company also plans to focus to a lesser extent on the residential and heavy construction industry, which is also very robust at the moment.
The company intends to quickly develop marketing alliances and to pursue new sales for its services to residential builders and commercial builders. Concrete Installation plans to capitalise on its alliances and secure contracts from the federal, state, city and county governments.
Concrete Installation plans to use direct sales, relationship selling and subcontractors to reach the markets. These channels offer the fastest time to market and lower capital requirements. They also have quick access to established distribution channels.
Financial Considerations
We expect to be profitable within the first year of operation. Despite the initial outlays of cash to promote sales, the company’s cash account should remain healthy. By Year 3, the company will have approximately 1.5 million USD in revenue.
1.1 Mission
Concrete Installation’s mission it to provide quality services at competitive prices.