Docstoc

Business Plan for Excavation Services

Document Sample
Business Plan for Excavation Services Powered By Docstoc
					This Business Plan for an Excavation Services company allows entrepreneurs or
business owners to create a comprehensive and professional business plan. This
template form allows a business to outline the company's objectives and detail both
current company information as well as any past performance. Companies should
include a complete market analysis in their plan to help showcase why their business
strategy will be effective in the market. Future company plans, including production
targets, management strategy, and financial forecasting, should be used to demonstrate
and confirm that the company's short-term and long-term objective can and will be met.
This model plan can be customized to best fit the unique needs of any entrepreneur or
owner that is seeking to create a strong business plan.
                                [Company Name]




                                         [Name]
                                Office Phone: XXX-XXX-XXXX
                                 Cell Phone: XXX-XXX-XXXX
                                     Address: [Address]
                                       Email: [Email]




© Copyright 2012 Docstoc Inc.                                1
                                     Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [Company Name]in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name].

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to [Company
Name].

Upon request, this document is to be immediately returned to [Company Name].




___________________
Signature




___________________
Name (typed or printed)




___________________
Date




               This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                      2
                                                                Table of Contents



1.0 Executive Summary .................................................................................................................... 1
    Chart: Highlights .......................................................................................................................... 2
  1.1 Objectives.................................................................................................................................... 2
  1.2 Mission .......................................................................................................................................... 2
  1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 3
  2.1 Company Ownership ............................................................................................................... 3
  2.2 Company History ...................................................................................................................... 4
    Table: Past Performance ........................................................................................................... 4
    Chart: Past Performance ........................................................................................................... 5
3.0 Services ............................................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
  4.1 Market Segmentation ............................................................................................................. 6
    Table: Market Analysis ............................................................................................................... 6
    Chart: Market Analysis (Pie) .................................................................................................... 6
  4.2 Target Market Segment Strategy ...................................................................................... 7
  4.3 Service Business Analysis ..................................................................................................... 7
    4.3.1 Competition and Buying Patterns .............................................................................. 7
5.0 Web Plan Summary ..................................................................................................................... 8
  5.1 Website Marketing Strategy ................................................................................................. 8
  5.2 Development Requirements ................................................................................................. 8
6.0 Strategy and Implementation Summary ............................................................................ 8
  6.1 SWOT Analysis .......................................................................................................................... 8
    6.1.1 Strengths ............................................................................................................................. 8
    6.1.2 Weaknesses ........................................................................................................................ 9
    6.1.3 Opportunities ..................................................................................................................... 9
    6.1.4 Threats ................................................................................................................................. 9
  6.2 Competitive Edge ..................................................................................................................... 9
  6.3 Marketing Strategy .................................................................................................................. 9
  6.4 Sales Strategy ......................................................................................................................... 10
    6.4.1 Sales Forecast.................................................................................................................. 10
      Table: Sales Forecast ........................................................................................................... 10
      Chart: Sales Monthly ............................................................................................................ 11
      Chart: Sales by Year ............................................................................................................. 11
  6.5 Milestones.................................................................................................................................. 12
    Table: Milestones ....................................................................................................................... 12
7.0 Management Summary ............................................................................................................ 13
  7.1 Personnel Plan ......................................................................................................................... 13
    Table: Personnel ......................................................................................................................... 13
8.0 Financial Plan ............................................................................................................................... 13
  8.1 Important Assumptions ....................................................................................................... 14
  8.2 Break-even Analysis .............................................................................................................. 14
    Table: Break-even Analysis.................................................................................................... 14
    Chart: Break-even Analysis ................................................................................................... 14

                                                                                                                                                 Page 1
                                                              Table of Contents



  8.3 Projected Profit and Loss ..................................................................................................... 15
    Table: Profit and Loss ............................................................................................................... 15
    Chart: Profit Monthly ................................................................................................................ 16
    Chart: Profit Yearly .................................................................................................................... 16
    Chart: Gross Margin Monthly................................................................................................. 17
    Chart: Gross Margin Yearly .................................................................................................... 17
  8.4 Projected Cash Flow .............................................................................................................. 18
    Table: Cash Flow ........................................................................................................................ 18
    Table: Cash Flow (Continued) ............................................................................................... 19
    Chart: Cash .................................................................................................................................. 19
  8.5 Projected Balance Sheet ...................................................................................................... 20
    Table: Balance Sheet ................................................................................................................ 20
  8.6 Business Ratios ....................................................................................................................... 21
    Table: Ratios ................................................................................................................................ 21
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 1
Table: Profit and Loss ......................................................................................................................... 2
Table: Cash Flow .................................................................................................................................. 3
Table: Balance Sheet .......................................................................................................................... 4




                                                                                                                                            Page 2
                                                           [Company Name] 2010

1.0 Executive Summary

   Company: [Company Name]
   Contact: [Name]
   Address: [Address]
   Office Phone: XXX-XXX-XXXX
   Cell Phone: XXX-XXX-XXXX
   Email: [Email Address]

   Introduction
   The long-term goal of [Company Name] is to expand the company as well as start a new
   mulching company, reduce the Company's debt, purchase equipment and hire additional
   employees. [Company Name] creates a solid foundation for building, excavating and erosion
   control services, while providing peace of mind and quality work. [Company Name]is
   expanding its exposure through effective marketing as well as introducing the area to market
   segments that have not yet discovered the Company.

   Location
   [Company Name] is headquartered in Worthington, PA, which is located in Armstrong County.

   The Company
   [Company Name] provides excavation work for the residential and commercial population of the
   Worthington, Pennsylvania area. The Company's owner is [Name], who established the
   excavation company as a sole proprietorship in 1997. [Name]has been in the excavation
   industry for over 30 years. His excavation experience started when he worked for his father,
   then he branched out to start his own company.

   Our Services
   [Company Name] provides numerous excavation services such as; landscaping, mulching and
   erosion control. Additionally, the Company works with gas companies in the Worthington area
   as well as companies that do underground drilling to excavate and install water and gas lines.

   The Market
   [Company Name] caters to residential and commercial clients, as well as gas well drawing
   companies and building contractors near the Armstrong County and Worthington,
   Pennsylvania area. [Company Name]will focus on the ability to complete any project with the
   required equipment by having all the necessary tools. [Company Name]would like to see a 10%
   increase in customers on a yearly basis.

   Financial Considerations
   The current financial plan for [Company Name]is to obtain grant funding in the amount of
   $653,000. The grant will be used to

      Reduce debt
      Hire additional employees
      Purchase equipment
      Cover general operations expenses
      Cover lease expenses




                                                                       [Name]| XXX-XXX-XXXX
                                                           [Company Name] 2010

   Chart: Highlights




1.1 Objectives

   [Company Name]has four main objectives:

      To expand as well as start a mulching company
      Reduce the Company's debt
      Purchase equipment
      Hire additional employees

1.2 Mission

   [Company Name]’s mission is to create a solid foundation for building, excavating and erosion
   control services, while providing peace of mind and quality work.

1.3 Keys to Success

   [Company Name]'s keys to success are:

   1. Understanding each avenue of the building process.
   2. 30 years of building experience from every level of the building process.
   3. An understanding of what must occur for the success of the project at time of completion as
      well as long term.
   4. Have the well rounded knowledge and skill to successfully complete any project.




                                                                        [Name]| XXX-XXX-XXXX
                                                          [Company Name] 2010

2.0 Company Summary

   [Company Name]is headquartered in Worthington, PA 16262

   Contact: [Name]
   Office Phone: XXX-XXX-XXXX
   Cell Phone: XXX-XXX-XXXX
   Address: 226 County Line Road, Worthington, PA 16262
   Email:[Email Address]

   [Company Name]provides excavation work for the residential and commercial population of the
   Worthington, Pennsylvania area. The Company's owner is [Name], who established the
   excavation company as a sole proprietorship in 1997. [Name]has been in the excavation
   industry for over 30 years. His excavation experience started when he worked for his father,
   then he branched out to start his own company.

   [Company Name]plans to expand and start a new mulching company. The Company currently
   provides numerous excavation services such as; landscaping, mulching and erosion control.
   Additionally, the Company works with gas companies in the Worthington area as well
   as companies that do underground drilling to excavate and install water and gas lines.

2.1 Company Ownership

   [Company Name]is a sole proprietorship business. The owner of the Company is [Name], who
   established the full-service excavation Company in 1997.




                                                                      [Name]| XXX-XXX-XXXX
                                                             [Company Name] 2010


2.2 Company History

    The following table and chart shows the past financials for [Company Name]

    Sales for 2007, 2008, and 2009 were $656,644, $739,485 and $638,047, respectively. The
    gross margin for this period was $363,830, $349,094 and $307,922. Earnings for this period
    were ($25,113), ($20,480) and ($20,696).

    The Company's sales and earnings were affected by the bad economy.

Table: Past Performance


Past Performance
                                                     2007             2008           2009
Sales                                            $656,644         $739,485       $638,047
Gross Margin                                     $363,830         $349,094       $307,922
Gross Margin %                                    55.41%           47.21%         48.26%
Operating Expenses                               $388,943         $369,574       $328,618

Balance Sheet
                                                     2007             2008           2009

Current Assets
Cash                                                   $0               $0             $0
Other Current Assets                                   $0               $0             $0
Total Current Assets                                   $0               $0             $0

Long-term Assets
Long-term Assets                                       $0               $0       $989,000
Accumulated Depreciation                                                         $200,543
Total Long-term Assets                                 $0               $0       $788,457

Total Assets                                           $0               $0       $788,457

Current Liabilities
Accounts Payable                                       $0               $0             $0
Current Borrowing                                      $0               $0       $140,000
Other Current Liabilities (interest free)              $0               $0             $0
Total Current Liabilities                              $0               $0       $140,000

Long-term Liabilities                                  $0               $0             $0
Total Liabilities                                      $0               $0       $140,000

Paid-in Capital                                         $0               $0             $0
Retained Earnings                                  $25,113          $20,480      $669,153
Earnings                                         ($25,113)        ($20,480)      ($20,696)
Total Capital                                           $0               $0      $648,457

Total Capital and Liabilities                          $0               $0       $788,457

Other Inputs
Payment Days                                           30               30             30




                                                                         [Name]| XXX-XXX-XXXX
                                                            [Company Name] 2010

   Chart: Past Performance




3.0 Services

   [Company Name]provides excavation services such as:

      Landscaping
      Mulching
      Erosion control

   Additionally, the Company works with gas companies in the Worthington area as well
   as companies that do underground drilling to excavate and install water and gas lines.

   In the future, [Company Name]plans to start a new mulching company.

4.0 Market Analysis Summary

   According to the U.S. Department of Commerce, the U.S. excavation work industry includes
   more than 18,000 establishments and employs more than 116,000 workers. This industry
   covers special trade contractors primarily engaged in excavation work and digging foundations.
   Contractors in this industry may also perform incidental concrete work.

   Small, independent operators remain the backbone of the excavation work industry. They
   generally work as subcontractors to home building companies, commercial construction firms,
   and others. Still, several large companies hold dominant market positions in this industry,
   though they tend to be regional and not national in scope.

   [Company Name]'s business plan focuses solely on residential and commercial clients, as well
   as gas well drawing companies and building contractors. [Company Name]has the services
   necessary to flourish within these markets. Additionally, the Company will expand its market by
   bidding on government department jobs. By delivering superior customer service and having an
   outstanding reputation, [Company Name]'s potential is excellent.


                                                                        [Name]| XXX-XXX-XXXX
                                                           [Company Name] 2010

4.1 Market Segmentation

   [Company Name]will focus on the ability to complete any project with the required equipment
   by having all the necessary tools. [Company Name]'s market segmentation scheme is fairly
   straightforward, and focuses on the target market, residential and commercial clients, as well
   as gas well drawing companies and building contractors near the Armstrong County and
   Worthington, Pennsylvania area. These customers prefer certain quality of work and timeliness
   and its [Company Name]'s duty to deliver on their expectations.

   [Company Name]knows that there will always be a need for excavation companies. Customers
   within the excavation industry want exceptional workmanship and affordable rates. [Company
   Name]'s customers appreciate the quality service that the Company offers, as well as the
   knowledgeable and experienced staff. These customers have the option to go elsewhere, but
   they understand that giving their business to [Company Name]is beneficial to them because the
   Company delivers the dedication that they desire.

Table: Market Analysis



Market Analysis
                                     2010       2011       2012       2013       2014
Potential Customers       Growth                                                           CAGR
Worthington, PA               2%       778        794        810        826        843     2.03%
Armstrong County              2%    68,790     70,166     71,569     73,000     74,460     2.00%
Total                      2.00%    69,568     70,960     72,379     73,826     75,303     2.00%




   Chart: Market Analysis (Pie)




                                                                        [Name]| XXX-XXX-XXXX
                                                             [Company Name] 2010

4.2 Target Market Segment Strategy

   [Company Name] caters to residential and commercial clients, as well as gas well drawing
   companies and building contractor customers near the Armstrong County and Worthington,
   Pennsylvania area. [Company Name]knows how to meet the needs of its clients. The Company
   knows that satisfied customers aid the Company by referring its business to other clients who
   need the services.

   Currently, [Company Name] serves the excavation market segment. [Company Name] choice
   of target markets is based on an in-depth understanding of the customer's needs. [Company
   Name]skills and capabilities will allow the Company to effectively compete and build on to
   its reputation within its area. Therefore, obtaining grant funding and developing a marketing
   strategy will improve the Company's profitability levels and aid them in building a strong
   customer base.

   [Company Name]will utilize the following sales literature to reach its target market:

      magazines/journals
      online listings
      fliers and letters
      yellow pages
      trade directory

4.3 Service Business Analysis

   The excavation industry requires equipment that is very costly                to   purchase   and
   move. Additionally the talents and integrity varies with each company.

   As simple as it may be, [Company Name]'s method of executing exceptional customer service
   has an important effect on the bottom line: People want to give their business to those who
   appreciate it. Skillful use of advertising, having the necessary equipment and strong
   communication will bring the business the Company desires.

4.3.1 Competition and Buying Patterns

   [Company Name] exists in a mildly competitive market. Companies who need mulching have a
   hard time finding the service. Other companies cannot compete with the Company's work ethics
   and impeccable customer service skills. [Company Name] will compete directly with these other
   companies by effectively meeting customer's needs. [Company Name]'s goal is to fulfill client's
   demands because it will aid the Company in generating future business. If clients are happy,
   they will recommend the Company to others who need the service.

   Having longevity in the excavation market enables [Company Name] to effectively compete
   with other excavation companies. [Company Name] knows that image and visibility aids in
   getting its name out.




                                                                          [Name]| XXX-XXX-XXXX
                                                               [Company Name] 2010

5.0 Web Plan Summary

   [Company Name]'s website will be an opportunity to offer current information on service
   offerings, company background, announcements and updates. The website will be another
   method to generate steady business in our area.

5.1 Website Marketing Strategy

   [Company Name]'s website will be promoted on all of its marketing materials. The
   Company will advertise its site on its business cards as well as in other industry related
   publications and advertisements.

5.2 Development Requirements

   [Company Name]will have an attractive, simple and informative internet focused website. It will
   be a user friendly site from a dependable hosting company. [Company Name]'s administrative
   team will keep the website current.

6.0 Strategy and Implementation Summary

   [Company Name] has clearly defined the target market and has differentiated the Company by
   offering a solid solution to fulfilling its customers' needs. Reasonable sales targets have been
   established with an implementation plan designed to ensure the goals set forth below are
   achieved.

6.1 SWOT Analysis

   The SWOT analysis aids in displaying the internal strengths and weaknesses that [Company
   Name]must address. It allows us to examine the opportunities presented to [Company
   Name]as well as potential threats. The company's strength will help it to succeed. These
   strengths are: having an outstanding reputation, over 30 years of industry experience, expert
   excavating company you would want to do your project, having a knowledgeable and friendly
   staff and lack of competitors in the Worthington, PA area. Strengths are valuable, but it is also
   important to realize the weaknesses [Company Name]must address. [Company Name]'s main
   weakness is the cost factor associated with keeping state-of-the-art equipment and its lack of
   staff to assist with everyday duties.

   [Company Name]'s strengths will help it capitalize on emerging opportunities. These
   opportunities include, but are not limited to, a growing market with a significant percentage
   of the target market still not knowing that the Company exists as well as strategic
   alliances offering sources for referrals and joint marketing activities to extend its reach. Threats
   that [Company Name]should be aware of include, not having proper equipment and having to
   turn down jobs offered to the Company because of that.

6.1.1 Strengths

   [Company Name]has much notable strength. These strengths include:

      Outstanding reputation.
      Over 30 years of industry experience.
      Expert excavating company you would want to do your project.
      Knowledgeable and friendly staff.
      Lack of competitors in the Worthington, PA area.
                                                                            [Name]| XXX-XXX-XXXX
                                                              [Company Name] 2010

6.1.2 Weaknesses

   [Company Name] has a few weaknesses. These weaknesses include:

      Cost factor associated with keeping state-of-the-art equipment.
      Lack of staff to assist with everyday duties

6.1.3 Opportunities

   Opportunities for [Company Name] include:

      Growing market with a significant percentage of our target market still not knowing we
       exist.
      Strategic alliances offering sources for referrals and joint marketing activities to extend our
       reach

6.1.4 Threats

   [Company Name] greatest threat includes not having proper equipment and having to turn
   down jobs offered to the Company because of that. Furthermore, a bad economy affects the
   Company because [Company Name]'s service request from home builders has decreased.

6.2 Competitive Edge

   [Company Name] has a strong competitive edge over its competitors because the
   Company offers many excavation services in its area. Additionally, the Company has an
   advantage because other competitors in its area don’t offer landscape and mulching services.
   By building a business based on satisfying clients, [Company Name]simultaneously build
   defenses against competition. The Company will continue to help clients understand what it
   offers them and why they need it.

6.3 Marketing Strategy

   [Company Name] marketing strategy involves sending out mailing advertising (fliers and
   letters), online listings, industry journals and magazines, placing ads in the yellow pages and
   word-of-mouth advertising. [Company Name]plans to attend construction/trade shows in the
   future. The Company's goal is to provide exceptional service to its clients. [Company
   Name]knows what each customer needs and aims to satisfy them.

   Currently, [Company Name] has an advantage because the owner, Lynn is a superior
   business man      that   has    excellent    work    ethics,   service   and    communication
   skills. [Name]offers over 30 years of experience to the excavation industry. [Company Name]'s
   quality of work and level of integrity has helped the Company build a strong reputation
   within its community.




                                                                           [Name]| XXX-XXX-XXXX
                                                                [Company Name] 2010

6.4 Sales Strategy

    The owner of [Company Name] has excellent customer relation skills and work ethics; these
    skills will be useful in making customers comfortable in trusting the Company to provide their
    excavation services. Keeping customers happy is an implicit part of building a relationship that
    will encourage repeat business.

    [Company Name] is providing the confirmation that its clients need to help the
    Company become one of their preferred excavation companies. Additionally, [Company
    Name]advertises in the local phone directory, online ads and use word-of-mouth marketing
    techniques to gain customers in the area.

6.4.1 Sales Forecast

    The chart and table below show [Company Name]'s projected Sales Forecast. Annual
    projections for three years are shown here, with first year monthly figures in the appendix.

    [Company Name]'s sales forecast include excavation services.

    The Company expects a 15% sales increase in 2011 and a 10% increase in 2012. The sales
    forecast for 2010, 2011 and 2012 are $762,389, $876,747 and $964,422.

Table: Sales Forecast

Sales Forecast
                                                         2010             2011              2012
Sales
Excavation Services                                  $762,389          $876,747         $964,422

Total Sales                                          $762,389          $876,747         $964,422

Direct Cost of Sales                                     2010              2011             2012
Excavation Services                                  $345,037          $379,541         $417,495

Subtotal Direct Cost of Sales                        $345,037          $379,541         $417,495




                                                                          [Name]| XXX-XXX-XXXX
                       [Company Name] 2010

Chart: Sales Monthly




Chart: Sales by Year




                             [Name]| XXX-XXX-XXXX
                                                             [Company Name] 2010

6.5 Milestones

   In order to achieve the growth and marketing goals that have been outline in this business
   plan, the Company has deadlines to meet and ideas to implement. Some of these are outlined
   below:

   1.    Obtain grant funding in the amount of $653,000 to improve business
   2.    Reduce debt
   3.    Hire additional employees
   4.    Purchase equipment
   5.    Cover general operations expenses
   6.    Cover lease expenses

   With funding, [Company Name]'s possibilities are endless. After each of the Company's
   goals are achieved, there will be opportunities for additional success.

Table: Milestones

Milestones

Milestone                    Start Date     End Date        Budget        Manager        Department
Debt Reduction                 8/1/2010      8/1/2011      $140,000        [Name]          Financial
Hire Additional                8/1/2010      8/1/2011      $130,000        [Name]      Administrative
Employees
Purchase Equipment             8/1/2010      8/1/2011      $323,000           [Name]   Administrative
Cover general operations       8/1/2010      8/1/2011       $45,000           [Name]     Operations
Cover lease expenses           8/1/2010      8/1/2011       $15,000           [Name]   Administrative

Totals                                                     $653,000




                                                                         [Name]| XXX-XXX-XXXX
                                                            [Company Name] 2010

7.0 Management Summary

   The owner [Name] has over 30 years of experience in the excavation industry and has
   extensive knowledge of this market. [Name] has impeccable managerial skills as well as a
   strong managerial background. [Name]'s secretary Debbie Presko aids in handling the
   Company's administrative and office duties.

7.1 Personnel Plan

   The table below contains the details of our personnel plan. The detailed monthly personnel plan
   for the first year is included in the appendix.

   [Name] is the owner and manager of [Company Name]. Currently, the personnel consist of a
   part-time secretary and full-time laborers, equipment operators and a truck driver. Upon
   receipt of grant funding, the owner will hire additional employees to assist with the workload.

Table: Personnel

Personnel Plan
                                                             2010            2011             2012
Secretary                                                 $15,600         $15,600          $15,600
Laborers                                                  $50,952         $50,952          $50,952
Equipment Operators                                      $100,884        $100,844         $100,844
Truck Driver                                              $31,200         $31,200          $31,200
New Employees                                             $43,332        $130,000         $130,000
Total People                                                   11              11               11

Total Payroll                                            $241,968        $328,596         $328,596


8.0 Financial Plan

   The current financial plan for [Company Name]is to obtain grant funding in the amount of
   $653,000. The grant will be used to

        Reduce debt
        Hire additional employees
        Purchase equipment
        Cover general operations expenses
        Cover lease expenses

   The following sections of this plan will serve to describe [Company Name]'s financial plan in
   more detail:

   •   General Assumptions
   •   Break-even Analysis
   •   Profit and Loss
   •   Cash Flow
   •   Balance




                                                                         [Name]| XXX-XXX-XXXX
                                                          [Company Name] 2010

8.1 Important Assumptions

   The table below presents the assumptions used in the financial calculations of this business
   plan.

   The average percent variable cost is estimated to be 45%. The estimated monthly fixed cost is
   $28,336.

8.2 Break-even Analysis

   For the break-even analysis, the monthly revenue needed to break-even is $51,762. The break-
   even analysis has been calculated on the "burn rate" of The Company. [Company Name]feels
   that this gives the investor a more accurate picture of the actual risk of the venture.

Table: Break-even Analysis



Break-even Analysis

Monthly Revenue Break-even                      $51,762

Assumptions:
Average Percent Variable Cost                      45%
Estimated Monthly Fixed Cost                    $28,336



   Chart: Break-even Analysis




                                                                       [Name]| XXX-XXX-XXXX
                                                             [Company Name] 2010

8.3 Projected Profit and Loss

    [Company Name]'s Pro Forma Profit and Loss statement was constructed from a conservative
    point-of-view, and is based in large part on past performance.

    The sales for 2010, 2011 and 2012 are $762,389, $876,747 and $964,422, respectively. The
    net profit for the same period is $61,858, $34,240 and $73,769, respectively. The percentages
    of the net profit sales for this period are 8.11%, 3.91% and 7.65%, respectively. The net profit
    is decreased slightly in 2011 due to a full year of payroll.

    Once the Company receives grant funding to add the new assets, the depreciation of the new
    fixed assets will be over a 10 year period.

Table: Profit and Loss

Pro Forma Profit and Loss
                                                    2010              2011              2012
Sales                                           $762,389          $876,747          $964,422
Direct Cost of Sales                            $345,037          $379,541          $417,495
Other Costs of Sales                                  $0                $0                $0
Total Cost of Sales                             $345,037          $379,541          $417,495

Gross Margin                                    $417,352          $497,207          $546,927
Gross Margin %                                   54.74%            56.71%            56.71%


Expenses
Payroll                                         $241,968          $328,596          $328,596
Rent/Mortgage                                    $30,000           $30,000           $30,000
Depreciation                                     $10,768           $32,300           $32,300
Vehicle                                           $9,600            $9,696            $9,890
Utilities                                         $5,700            $5,757            $5,872
Insurance                                        $25,056           $25,056           $25,056
Payroll Taxes                                    $16,938           $23,002           $23,002
Other                                                 $0                $0                $0

Total Operating Expenses                        $340,030          $454,407          $454,716

Profit Before Interest and Taxes                 $77,322           $42,800           $92,212
EBITDA                                           $88,090           $75,100          $124,512
 Interest Expense                                 $4,900                $0                $0
 Taxes Incurred                                  $14,484            $8,560           $18,442

Net Profit                                       $57,938           $34,240           $73,769
Net Profit/Sales                                  7.60%             3.91%             7.65%




                                                                             [Name]| XXX-XXX-XXXX
                        [Company Name] 2010

Chart: Profit Monthly




Chart: Profit Yearly




                              [Name]| XXX-XXX-XXXX
                              [Company Name] 2010

Chart: Gross Margin Monthly




Chart: Gross Margin Yearly




                                    [Name]| XXX-XXX-XXXX
                                                             [Company Name] 2010

8.4 Projected Cash Flow

    [Company Name] has applied for a grant of $653,000. In 2010, the Company forecasts that it'll
    receive the funding in the month of August. During this period, the Company will use $323,000
    to purchase equipment. This purchase is reflected in the purchase of long-term assets.

    [Company Name] has allocated $140,000 towards reducing the principle of its current liabilities.

    The following table displays [Company Name]'s cash flow and the chart illustrates monthly cash
    flow in the first year. Monthly cash flow projections are also included in the appendix.

Table: Cash Flow



Pro Forma Cash Flow
                                                          2010             2011             2012
Cash Received

Cash from Operations
Cash Sales                                            $762,389         $876,747         $964,422
Subtotal Cash from Operations                         $762,389         $876,747         $964,422

Additional Cash Received
Sales Tax, VAT, HST/GST Received                            $0               $0               $0
New Current Borrowing                                       $0               $0               $0
New Other Liabilities (interest-free)                       $0               $0               $0
New Long-term Liabilities                                   $0               $0               $0
Sales of Other Current Assets                               $0               $0               $0
Sales of Long-term Assets                                   $0               $0               $0
New Investment Received                              $653,000                $0               $0
Subtotal Cash Received                              $1,415,389         $876,747         $964,422




                                                                          [Name]| XXX-XXX-XXXX
                                                     [Company Name] 2010


Table: Cash Flow (Continued)

Expenditures                                     2010        2011         2012

Expenditures from Operations
Cash Spending                                $241,968     $328,596     $328,596
Bill Payments                                $411,824     $481,919     $525,800
Subtotal Spent on Operations                 $653,792     $810,515     $854,396

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                    $0          $0           $0
Principal Repayment of Current Borrowing     $140,000           $0           $0
Other Liabilities Principal Repayment               $0          $0           $0
Long-term Liabilities Principal Repayment           $0          $0           $0
Purchase Other Current Assets                       $0          $0           $0
Purchase Long-term Assets                    $323,000           $0           $0
Dividends                                           $0          $0           $0
Subtotal Cash Spent                         $1,116,792    $810,515     $854,396

Net Cash Flow                                $298,597      $66,233     $110,026
Cash Balance                                 $298,597     $364,830     $474,857




   Chart: Cash




                                                             [Name]| XXX-XXX-XXXX
                                                          [Company Name] 2010

8.5 Projected Balance Sheet

    [Company Name]'s net worth is $1,359,395, $1,393,635 and $1,467,404, for 2010, 2011 and
    2012, respectively

Table: Balance Sheet

Pro Forma Balance Sheet
                                                  2010           2011            2012
Assets

Current Assets
Cash                                          $298,597        $364,830        $474,857
Other Current Assets                                $0              $0              $0
Total Current Assets                          $298,597        $364,830        $474,857

Long-term Assets
Long-term Assets                             $1,312,000     $1,312,000      $1,312,000
Accumulated Depreciation                       $211,311      $243,611        $275,911
Total Long-term Assets                       $1,100,689     $1,068,389      $1,036,089
Total Assets                                 $1,399,286     $1,433,219      $1,510,946

Liabilities and Capital                           2010           2011            2012

Current Liabilities
Accounts Payable                               $39,892         $39,584         $43,542
Current Borrowing                                   $0              $0              $0
Other Current Liabilities                           $0              $0              $0
Subtotal Current Liabilities                   $39,892         $39,584         $43,542

Long-term Liabilities                               $0              $0              $0
Total Liabilities                              $39,892         $39,584         $43,542

Paid-in Capital                                $653,000      $653,000        $653,000
Retained Earnings                              $648,457      $706,395        $740,635
Earnings                                        $57,938        $34,240         $73,769
Total Capital                                $1,359,395     $1,393,635      $1,467,404
Total Liabilities and Capital                $1,399,286     $1,433,219      $1,510,946

Net Worth                                    $1,359,395     $1,393,635      $1,467,404




                                                                   [Name]| XXX-XXX-XXXX
                                                        [Company Name] 2010

8.6 Business Ratios

    The table below presents the projected business ratios from the excavation markets as a
    reference.

Table: Ratios

Ratio Analysis
                                                2010       2011         2012    Industry Profile
Sales Growth                                  19.49%     15.00%       10.00%            -3.05%

Percent of Total Assets
Other Current Assets                           0.00%      0.00%        0.00%           40.82%
Total Current Assets                          21.34%     25.46%       31.43%           65.97%
Long-term Assets                              78.66%     74.54%       68.57%           34.03%
Total Assets                                 100.00%    100.00%      100.00%          100.00%

Current Liabilities                            2.85%      2.76%        2.88%           34.49%
Long-term Liabilities                          0.00%      0.00%        0.00%           47.63%
Total Liabilities                              2.85%      2.76%        2.88%           82.11%
Net Worth                                     97.15%     97.24%       97.12%           17.89%

Percent of Sales
Sales                                        100.00%    100.00%      100.00%          100.00%
Gross Margin                                  54.74%     56.71%       56.71%           46.49%
Selling, General & Administrative Expenses    47.14%     52.81%       49.06%           18.39%
Advertising Expenses                           3.93%      3.42%        3.11%            0.66%
Profit Before Interest and Taxes              10.14%      4.88%        9.56%            6.62%

Main Ratios
Current                                          7.49       9.22        10.91             1.56
Quick                                            7.49       9.22        10.91             1.37
Total Debt to Total Assets                     2.85%      2.76%        2.88%           82.11%
Pre-tax Return on Net Worth                    5.33%      3.07%        6.28%          233.82%
Pre-tax Return on Assets                       5.18%      2.99%        6.10%           41.82%

Additional Ratios                               2010       2011         2012
Net Profit Margin                              7.60%      3.91%        7.65%                n.a
Return on Equity                               4.26%      2.46%        5.03%                n.a

Activity Ratios
Accounts Payable Turnover                       11.32      12.17        12.17               n.a
Payment Days                                       27         30           29               n.a
Total Asset Turnover                             0.54       0.61         0.64               n.a

Debt Ratios
Debt to Net Worth                                0.03       0.03         0.03               n.a
Current Liab. to Liab.                           1.00       1.00         1.00               n.a

Liquidity Ratios
Net Working Capital                          $258,706   $325,246     $431,315               n.a
Interest Coverage                               15.78       0.00         0.00               n.a

Additional Ratios
Assets to Sales                                  1.84       1.63         1.57               n.a
Current Debt/Total Assets                         3%         3%           3%                n.a
Acid Test                                        7.49       9.22        10.91               n.a
Sales/Net Worth                                  0.56       0.63         0.66               n.a
Dividend Payout                                  0.00       0.00         0.00               n.a

                                                                   [Name]| XXX-XXX-XXXX
[Company Name] 2010




      [Name]| XXX-XXX-XXXX
                                                                     Appendix

Table: Sales Forecast



Sales Forecast
                                   Jan        Feb        Mar        Apr       May       Jun        Jul      Aug       Sep       Oct       Nov       Dec
Sales
Excavation Services             $56,843    $57,980    $59,140    $60,323   $61,529   $62,760   $64,015   $65,295   $66,601   $67,933   $69,292   $70,678

Total Sales                     $56,843    $57,980    $59,140    $60,323   $61,529   $62,760   $64,015   $65,295   $66,601   $67,933   $69,292   $70,678

Direct Cost of Sales                Jan        Feb        Mar        Apr      May        Jun       Jul      Aug       Sep        Oct      Nov        Dec
Excavation Services             $24,312    $25,041    $25,792    $26,566   $27,363   $28,184   $29,030   $29,901   $30,798   $31,722   $32,674   $33,654

Subtotal Direct Cost of Sales   $24,312    $25,041    $25,792    $26,566   $27,363   $28,184   $29,030   $29,901   $30,798   $31,722   $32,674   $33,654



Table: Personnel



Personnel Plan
                                     Jan        Feb        Mar       Apr      May        Jun       Jul      Aug       Sep        Oct      Nov        Dec
Secretary                         $1,300     $1,300     $1,300    $1,300    $1,300    $1,300    $1,300    $1,300    $1,300    $1,300    $1,300    $1,300
Laborers                          $4,246     $4,246     $4,246    $4,246    $4,246    $4,246    $4,246    $4,246    $4,246    $4,246    $4,246    $4,246
Equipment Operators               $8,407     $8,407     $8,407    $8,407    $8,407    $8,407    $8,407    $8,407    $8,407    $8,407    $8,407    $8,407
Truck Driver                      $2,600     $2,600     $2,600    $2,600    $2,600    $2,600    $2,600    $2,600    $2,600    $2,600    $2,600    $2,600
New Employees                         $0         $0         $0        $0        $0        $0        $0        $0   $10,833   $10,833   $10,833   $10,833
Total People                           7          7          7         7         7         7         7         7        11        11        11        11

Total Payroll                    $16,553    $16,553   $16,553    $16,553   $16,553   $16,553   $16,553   $16,553   $27,386   $27,386   $27,386   $27,386




                                                                                                                                                 Page 1
                                                                      Appendix

Table: Profit and Loss

Pro Forma Profit and
Loss
                                  Jan       Feb       Mar       Apr       May         Jun       Jul      Aug       Sep         Oct       Nov         Dec
Sales                         $56,843   $57,980   $59,140   $60,323    $61,529    $62,760   $64,015   $65,295   $66,601    $67,933    $69,292    $70,678
Direct Cost of Sales          $24,312   $25,041   $25,792   $26,566    $27,363    $28,184   $29,030   $29,901   $30,798    $31,722    $32,674    $33,654
Other Costs of Sales               $0        $0        $0        $0         $0         $0        $0        $0        $0         $0         $0         $0
Total Cost of Sales           $24,312   $25,041   $25,792   $26,566    $27,363    $28,184   $29,030   $29,901   $30,798    $31,722    $32,674    $33,654

Gross Margin                  $32,531   $32,939   $33,348   $33,757    $34,166    $34,576   $34,985   $35,394   $35,803    $36,211    $36,618    $37,024
Gross Margin %                57.23%    56.81%    56.39%    55.96%     55.53%     55.09%    54.65%    54.21%    53.76%     53.30%     52.85%     52.38%


Expenses
Payroll                       $16,553   $16,553   $16,553   $16,553    $16,553    $16,553   $16,553   $16,553   $27,386    $27,386    $27,386    $27,386
Rent/Mortgage                  $2,500    $2,500    $2,500    $2,500     $2,500     $2,500    $2,500    $2,500    $2,500     $2,500     $2,500     $2,500
Depreciation                       $0        $0        $0        $0         $0         $0        $0        $0    $2,692     $2,692     $2,692     $2,692
Vehicle                          $800      $800      $800      $800       $800       $800      $800      $800      $800       $800       $800       $800
Utilities                        $475      $475      $475      $475       $475       $475      $475      $475      $475       $475       $475       $475
Insurance                      $2,088    $2,088    $2,088    $2,088     $2,088     $2,088    $2,088    $2,088    $2,088     $2,088     $2,088     $2,088
Payroll Taxes            7%    $1,159    $1,159    $1,159    $1,159     $1,159     $1,159    $1,159    $1,159    $1,917     $1,917     $1,917     $1,917
Other                              $0        $0        $0        $0         $0         $0        $0        $0        $0         $0         $0         $0

Total Operating               $23,575   $23,575   $23,575   $23,575    $23,575    $23,575   $23,575   $23,575   $37,858    $37,858    $37,858    $37,858
Expenses

Profit Before Interest         $8,956    $9,364    $9,773   $10,182    $10,591    $11,001   $11,410   $11,819   ($2,055)   ($1,647)   ($1,240)    ($834)
and Taxes
EBITDA                         $8,956    $9,364    $9,773   $10,182    $10,591    $11,001   $11,410   $11,819      $637     $1,045     $1,452     $1,858
 Interest Expense                $700      $700      $700      $700       $700       $700      $700        $0        $0         $0         $0         $0
 Taxes Incurred                $1,651    $1,733    $1,815    $1,896     $1,978     $2,060    $2,142    $2,364    ($411)     ($329)     ($248)     ($167)

Net Profit                     $6,605    $6,931    $7,259    $7,586      $7,913    $8,241    $8,568    $9,455   ($1,644)   ($1,318)     ($992)     ($667)
Net Profit/Sales              11.62%    11.95%    12.27%    12.58%      12.86%    13.13%    13.38%    14.48%     -2.47%     -1.94%     -1.43%     -0.94%




                                                                                                                                                 Page 2
                                                                                 Appendix

Table: Cash Flow

Pro Forma Cash Flow
                                                   Jan       Feb       Mar       Apr       May       Jun        Jul       Aug        Sep        Oct        Nov        Dec
Cash Received

Cash from Operations
Cash Sales                                      $56,843   $57,980   $59,140   $60,323   $61,529   $62,760   $64,015    $65,295    $66,601    $67,933    $69,292    $70,678
Subtotal Cash from Operations                   $56,843   $57,980   $59,140   $60,323   $61,529   $62,760   $64,015    $65,295    $66,601    $67,933    $69,292    $70,678

Additional Cash Received
Sales Tax, VAT, HST/GST                 0.00%       $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
Received
New Current Borrowing                                $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
New Other Liabilities (interest-free)                $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
New Long-term Liabilities                            $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
Sales of Other Current Assets                        $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
Sales of Long-term Assets                            $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
New Investment Received                              $0        $0        $0        $0        $0        $0        $0   $653,000         $0         $0         $0         $0
Subtotal Cash Received                          $56,843   $57,980   $59,140   $60,323   $61,529   $62,760   $64,015   $718,295    $66,601    $67,933    $69,292    $70,678

Expenditures                                       Jan       Feb       Mar       Apr       May       Jun        Jul       Aug        Sep        Oct        Nov        Dec

Expenditures from Operations
Cash Spending                                   $16,553   $16,553   $16,553   $16,553   $16,553   $16,553   $16,553    $16,553    $27,386    $27,386    $27,386    $27,386
Bill Payments                                    $1,123   $33,712   $34,523   $35,357   $36,213   $37,093   $37,997    $38,907    $39,249    $38,201    $39,207    $40,241
Subtotal Spent on Operations                    $17,676   $50,265   $51,076   $51,910   $52,766   $53,646   $54,550    $55,460    $66,635    $65,587    $66,593    $67,627

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                    $0        $0        $0        $0        $0        $0        $0          $0        $0         $0         $0         $0
Principal Repayment of Current                      $0        $0        $0        $0        $0        $0        $0    $140,000        $0         $0         $0         $0
Borrowing
Other Liabilities Principal                         $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
Repayment
Long-term Liabilities Principal                     $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
Repayment
Purchase Other Current Assets                        $0        $0        $0        $0        $0        $0        $0                    $0         $0         $0         $0
Purchase Long-term Assets                            $0        $0        $0        $0        $0        $0        $0   $323,000         $0         $0         $0         $0
Dividends                                            $0        $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0
Subtotal Cash Spent                             $17,676   $50,265   $51,076   $51,910   $52,766   $53,646   $54,550   $518,460    $66,635    $65,587    $66,593    $67,627

Net Cash Flow                                   $39,167    $7,715    $8,064    $8,413    $8,763    $9,114    $9,465   $199,835      ($34)     $2,346     $2,699     $3,051
Cash Balance                                    $39,167   $46,882   $54,946   $63,359   $72,121   $81,235   $90,701   $290,536   $290,501   $292,848   $295,547   $298,597



                                                                                                                                                                  Page 3
                                                                                            Appendix


Table: Balance Sheet

Pro Forma Balance Sheet
                                                    Jan        Feb        Mar        Apr        May        Jun         Jul         Aug          Sep          Oct          Nov          Dec
Assets                      Starting Balances

Current Assets
Cash                                  $0         $39,167    $46,882    $54,946    $63,359    $72,121    $81,235    $90,701    $290,536     $290,501     $292,848     $295,547     $298,597
Other Current Assets                  $0              $0         $0         $0         $0         $0         $0         $0          $0           $0           $0           $0           $0
Total Current Assets                  $0         $39,167    $46,882    $54,946    $63,359    $72,121    $81,235    $90,701    $290,536     $290,501     $292,848     $295,547     $298,597

Long-term Assets
Long-term Assets                $989,000        $989,000   $989,000   $989,000   $989,000   $989,000   $989,000   $989,000   $1,312,000   $1,312,000   $1,312,000   $1,312,000   $1,312,000
Accumulated                     $200,543        $200,543   $200,543   $200,543   $200,543   $200,543   $200,543   $200,543    $200,543     $203,235     $205,927     $208,619     $211,311
Depreciation
Total Long-term Assets          $788,457        $788,457   $788,457   $788,457   $788,457   $788,457   $788,457   $788,457   $1,111,457   $1,108,765   $1,106,073   $1,103,381   $1,100,689
Total Assets                    $788,457        $827,624   $835,339   $843,403   $851,816   $860,578   $869,692   $879,158   $1,401,993   $1,399,266   $1,398,921   $1,398,928   $1,399,286

Liabilities and Capital                             Jan        Feb        Mar        Apr        May        Jun         Jul         Aug          Sep          Oct          Nov          Dec

Current Liabilities
Accounts Payable                      $0         $32,562    $33,346    $34,151    $34,978    $35,828    $36,700    $37,597     $37,977      $36,895      $37,867      $38,866      $39,892
Current Borrowing               $140,000        $140,000   $140,000   $140,000   $140,000   $140,000   $140,000   $140,000          $0           $0           $0           $0           $0
Other Current Liabilities             $0              $0         $0         $0         $0         $0         $0         $0          $0           $0           $0           $0           $0
Subtotal Current                $140,000        $172,562   $173,346   $174,151   $174,978   $175,828   $176,700   $177,597     $37,977      $36,895      $37,867      $38,866      $39,892
Liabilities

Long-term Liabilities                 $0              $0         $0         $0         $0         $0         $0         $0          $0           $0           $0           $0           $0
Total Liabilities               $140,000        $172,562   $173,346   $174,151   $174,978   $175,828   $176,700   $177,597     $37,977      $36,895      $37,867      $38,866      $39,892

Paid-in Capital                        $0             $0         $0         $0         $0         $0         $0         $0    $653,000     $653,000     $653,000     $653,000     $653,000
Retained Earnings               $669,153        $648,457   $648,457   $648,457   $648,457   $648,457   $648,457   $648,457    $648,457     $648,457     $648,457     $648,457     $648,457
Earnings                        ($20,696)         $6,605    $13,536    $20,795    $28,381    $36,294    $44,535    $53,103      $62,559      $60,915      $59,597      $58,605      $57,938
Total Capital                   $648,457        $655,062   $661,993   $669,252   $676,838   $684,751   $692,992   $701,560   $1,364,016   $1,362,372   $1,361,054   $1,360,062   $1,359,395
Total Liabilities and           $788,457        $827,624   $835,339   $843,403   $851,816   $860,578   $869,692   $879,158   $1,401,993   $1,399,266   $1,398,921   $1,398,928   $1,399,286
Capital

Net Worth                       $648,457        $655,062   $661,993   $669,252   $676,838   $684,751   $692,992   $701,560   $1,364,016   $1,362,372   $1,361,054   $1,360,062   $1,359,395




                                                                                                                                                                                  Page 4
                                                               Appendix


				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:305
posted:12/21/2011
language:English
pages:32
Description: This Business Plan for an Excavation Services company allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan.