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Business Plan for construction company

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A complete Business Plan for construction company.

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    Business Plan


           For


Construction Company




       Table of contents
                                                                                                                                                                                            2



EXECUTIVE SUMMARY.................................................................................................................................................3

   BUSINESS CORE OBJECTIVES ................................................................................................................................................. 3
   BUSINESS GOALS ..................................................................................................................................................................... 4
   MISSION .................................................................................................................................................................................. 4

COMPANY SUMMARY ...................................................................................................................................................5

   BUSINESS GROWTH PROJECTIONS ............................................................................................................................................. 5

COMPANY OWNERSHIP ................................................................................................................................................6

BUSINESS MANAGEMENT PERSONNEL PLAN .........................................................................................................6

PRODUCTS AND SERVICES ..........................................................................................................................................7

   3.1 SERVICE DESCRIPTION ..................................................................................................................................................... 8
   BUSINESS PHILOSOPHY .......................................................................................................................................................... 9
   BUSINESS KEYS TO SUCCESS ................................................................................................................................................... 9

MARKET ANALYSIS SUMMARY ................................................................................................................................ 11

   MARKET SEGMENTATION .................................................................................................................................................... 11

MARKETING PLAN ....................................................................................................................................................... 12

   ECONOMICS .......................................................................................................................................................................... 12
   COMPETITION AND SUCCESS................................................................................................................................................ 13

4.2 MARKETING STRATEGY....................................................................................................................................... 14

   LITERATURE ......................................................................................................................................................................... 17
   FULFILLMENT ....................................................................................................................................................................... 17
   FUTURE SERVICES ................................................................................................................................................................ 18

MARKETING BUDGET - ............................................................................................................................................... 19

   DISTRIBUTION CHANNELS - ................................................................................................................................................. 20

OPERATIONAL PLAN ................................................................................................................................................... 20

   EXECUTION - ......................................................................................................................................................................... 20

FINANCIAL PLAN.......................................................................................................................................................... 21

   BREAK EVEN ANALYSIS ........................................................................................................................................................ 21
   PROFIT AND LOSS STATEMENT ANALYSIS ............................................................................................................................... 23
   CASH FLOW PROJECTIONS .................................................................................................................................................. 25
   SWOT ANALYSIS ................................................................................................................................................................. 28
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                                    EXECUTIVE SUMMARY


XXXXXX is a reliable constructing division of XXXXXX Contracting, Inc. specializing in
providing energy conservation/renewable energy and building services required to enhance
operating and cost efficiencies of both new and existing structures. The company offers top-tier
manufacturers reliable, high-quality alternative energy resources to in-house resources for new
and existing structures

XXXXXX Contracting, Inc.is a reputable company based in San Diego County, California
founded by Mr. Matthew J. XXXXXX in 1993. The initial office established in a quality office
space in the 1450 Frazee Rd # 100 San Diego, CA 92108-4341, United States is strategic for
business                                                                             operation.
The USA’s large constructing management companies particularly in the surroundings of
California that Xxxxxxplans to target forms a very viable market. The business secondary target
will be the medium-sized companies in high growth areas such as Project management and
Energy Management in construction industry. One of Xxxxxx XXXXXX's challenges will be
establishing itself as a real consulting company, positioned as relatively risk-free corporate
services.

Industry competition to the business comes in several forms, the most significant being
companies that choose to do business development and market research in-house. Xxxxxxwill
compete with its contemporary companies in similar business. The business will successfully
prove its strength and expertise in the field. As compare to other companies who are generalist in
nature and do not focus on a niche market, Xxxxxxproved as high quality service provider.
XXXXXX's edge over other companies as these is that XXXXXX provides high level consulting
services to help integrate market research data with the companies’ goals.

XXXXXX will be priced at the upper edge of what the market will bear, competing with the
name-brand consultants and as high-level expertise providers.

The company's founders are former marketers of contracting services, market research, and all in
international markets. They are founding Xxxxxxto honor the consulting services they offer.
XXXXXXwill therefore get management services from working partners.

BUSINESS CORE OBJECTIVES
   To achieve Sales of $400,000 in Year 2012 and $500,000 by the following Year.

   Gross margin higher than 80%

   Net income more than 15% of sales by following Year
                                                                                               4



   The business plans to use proven cost-benefit analysis on environmental approaches to
   structure building and energy consumption.

   Become the premier environmental energy consultancy in the state within five years by
   tactical planning.

   Reach profitability within three years.

BUSINESS GOALS
The XxxxxxBusiness plans to achieve the following goals

           a. Criterion to improve energy efficiency

           b. Green approach to energy resources for environmental benefits

           c. Project appraisal

           d. resource efficiency management guideline

           e. Define innovative approaches to renewable and/or sustainable energy,
              sustainability services, and energy management technology and services by
              leveraging key financial and technology partnerships

           f. Risk management in sustainable and renewable energy management strategies

           g. Making energy efficient system choices

           h. Understanding Photovoltaic Technologies and their applications

MISSION
 XXXXXX is a division of a highly reliable constructing management company XXXXXX
Contracting, Inc. that offers reliable, high-quality alternative to energy conservation/renewable
energy resources for construction and energy management services to clients, offers a very high
level of practical experience, expertise, contacts, and confidentiality. Clients must know that
working with Xxxxxxis a more professional, less risky way to develop new projects same like
working with their own people.XXXXXX must also be able to provide cost-effective services,
and delivering an even high valued outcome to its clients.

The success of the business will lie in the following:

   To provide a product of outstanding quality, guided by our corporate values and beliefs,
   through exact estimating, proficient scheduling, excellent construction and committed
   people.
                                                                                                   5



   To Show our people that they are our immediate asset by providing a rxxxxxxectful
   environment, clear expectations and challenging opportunities.

   To measure each project’s success with the ability to enhance its relationship with team
   members

The business will continue to set the standard by which the construction industry is measured
and be admired and rxxxxxxected for delivering on time projects that consistently exceed the
expectations of our customers.


COMPANY SUMMARY
 XXXXXX the consulting division of Xxxxxx is a Consulting Company. The main purpose is to
enable organizations to establish the systems and processes necessary to improve their bottom-
line through the delivery of outlined strategies. The strategies designed to cover energy
performance, including energy efficiency, use, consumption and independent preconstruction
services that help our clients set investment priorities are relevant. In addition, these values help
such clients in performing independent analysis, and rethinking their financial positioning by
providing new and innovative strategies to help advantage assets.

As it grows, it will take on people and consulting work in related markets to expand its potential
business in similar markets. It will also focus for additional advantage by taking positive
initiative.

The business has seen sustained growth and profitability in its operations. The following table
shows the growth indices for the 201 and 2012 financial year’s comparisons. This shows the
possible profitability that the business is likely to realize in the next financial year.

BUSINESS GROWTH PROJECTIONS


Table1

             SALES    2011               2012        GROWTH PERCENTAGE
             FORECAST                    PROJECTIONS        GROWTH

             Total Sales       358,968          1,286,500   927,532           2.583885
             Subtotal Direct    84,100           109,300     25,200           0.299643
             Cost of Sales




This table gives a general view of the company long-term performance. Based in the long-term
performance, the business is projected to realize the following rates of return on the capital
                                                                                                6



investment. Notably, the business plans to make great achievements in the next five years. The
following graph gives an illustration.



Chart1




COMPANY OWNERSHIP


XXXXXX Contracting, Inc created as a contracting company based in San Diego county
California, founded by Mr. Matthew J. Xxxxxx in 1993, and already established its base as a
successful company.


BUSINESS MANAGEMENT PERSONNEL PLAN


Two professional personnel will manage the business. These two also make out the two founder
members of the business. The business therefore will have high skilled personnel at the top that
will make the driving force and point of reference to the business activities.

However, the business will also make use of other personnel to help in carrying out its
objectives. The following table shows the possible increase in the level of business personnel in
the next financial year. These are the people who will be charged with the rxxxxxxonsibility of
carrying forward the business objectives. Notably, the figures showing their salaries are just
enough to ensure that the business realizes enough profits. In case the business does more
recruitment, then the salaries will outdo the sales and the business will thus not be able to make
any significant profits.
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Table 2

Personnel Plan



Personnel                                               FY 2011         FY 2012


CEO                                                     $49,200         $51,000


Operations Manager                                      $37,200         $41,000


Finance Manager                                         $28,800         $31,000


Engineer                                                $27,600         $29,000


Engineer                                                $25,200         $28,000


Field Specialist/Consultant                             $24,000         $26,500


Field Specialist/Consultant                             $24,000         $31,000


Total People                                                 7               7


Total Payroll                                          $216,000        $237,500




The business employees will however be well trained to be able to handle the technical services
and products that the business will offer to the clients and customers. Training on the job
methodology will be conducted since is less costly and more relevant to the job requirements.
This is in opposition to the in-house training of the employees. Employees trained on the job
better acquire the necessary skills faster and undertake the job activities much earlier. The
company will however make use of the available personnel to fill in the positions required. This
is to mean that there will be no new personnel hired in the coming financial year. The already
employed personnel will get their training relevant to the position them for the emergent job
opportunities in the business.

Under serious circumstances of deficit in personnel, the business will resort to contracting
employees and outsourcing. In the end, the lean human resource personnel will ensure that the
business incurs less operational costs in terms of salaries to the workers. The businesses will not
stick to stringent schedules that can bring about red tape bureaucracies. As a result, the
operations of the business will be very flexible to conform to the business clients and customers
requirements.


PRODUCTS AND SERVICES
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Project Consulting: Proposed and billed on a per-project and per-milestone basis, project-
consulting offers a client company a way to exploit our precise qualities and use our skill and
expertise to develop and implement plans, from elusive planning to turnover. Proposal costs will
be in place and well connected with each project.

Project Management: Project management services of the business include defining client
needs, preparing bid documents, tendering, bid analysis, construction review, payment
certification, contract administration, and warranty inspections. Similarly, the projects will
include new facilities, repairs, and remodeling.

Dispute Resolution: the business will draw upon its broad range of construction and contract
administration experience to provide dispute resolution services, including arbitration, mediation,
and expert reports for litigation. This work will measure to identify the cause of failures.

Restoration Engineering: similarly, the XxxxxxBusiness will provide condition survey, design,
and construction review services for the repair of building structures.

Energy conservation/renewable energy: Finally, Xxxxxxwill focus innovative approaches to
exiting and sustainable energy needs in new and existing projects to enhance sustainability of its
services. Additionally, the key idea that the business uses based on financial consideration of its
clients is the focus to make and retain large customer base.

3.1 SERVICE DESCRIPTION


 XXXXXX offers complete construction and energy management services including sustainable
energy resources consultancy and management. We will focus on buildings with the following:

      Residential

      Commercial

      Industrial

The company is project oriented where each project involves:

      Xxxxxxvations

      Rehabilitation

      Additions

      New construction
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      energy conservation/renewable energy

   Xxxxxxwill offer pioneering and economical design services, maintaining state-of-the-art
   design technology. We meet client needs on projects of all sizes and smaller, special design
   projects.

BUSINESS PHILOSOPHY
Xxxxxxhas identified the following as the business core philosophies. These are the driving
values that the business management strives to achieve during the operation of the business.

   1. Consistent in our dealings with subcontractors, architects, vendors and consultants

   2. Fair, clear in our expectations and attentive to details

   3. Committed to creating positive relationships, building true partnerships

   4. Creative solutions while preserving the interests of all stakeholders

   5. Rxxxxxxonsible and steadfast in the support of our core beliefs and values

BUSINESS KEYS TO SUCCESS


XXXXXXhas identified three keys to its success.

The first is the need offer solutions that is based on market demand. The second is to guarantee
that all of its offerings based on economic justifications; the solution should make sense beyond
the environmental considerations because it has long-term economic value.

Xxxxxxwill be targeting contractors and individual consumers simultaneously. Xxxxxxwill work
closely with them while providing them the ability to offer environmental solutions to their
customers. This group is growing at 100% and there are several potential customers in the
region.

The seasoned management team of Michael Vargas and Eric Scheidlinger will lead Xxxxxx
XXXXXX. Both have several years of work experience within the industry along with their
formal education. Xxxxxx XXXXXX’s management team will be able to execute business
planning.

Xxxxxxhas conservatively reached sales of $358,968 for last year. This will be risen to
$1,286,500 for current year. Net profit $80% will be reached in the year 2012. Through a
combination of a proven business model, a strong management team, and this comprehensive
energy business plan to guide the organization, Xxxxxxwill be proved a long lasting, profitable
business model.
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3 Year Vision

For XXXXXXto become viable revenue stream to XXXXXX contracting by expanding the
service mix. The expansion of the product through the process called product discrimination will
be very important in ensuring risk diversification. Moreover, the company will be able to make
higher sales from the varied market products. This is so since more people will be captured in the
market. The business therefore aims to introduce tailor made products virtually for all the people
to benefit from. The following graph shoes the projected annual sales volume for the next half
decade.



Chart 2




From the graph above, it is clear that the sales increase between the year 2011 and 2012 is the
greatest. This follows the high profile marketing strategies that the business has put in place to
penetrate into the new markets. More emphasis will also be put on the increased marketing
procedures to help in the popularizing of the business products. The year 2013 will also see a
great increase in the level of sales in the business.

On the same note, it is possible to carry out a monthly sales report. For the next five years, the
business will be able to realize great amount of monthly sales. Represented in a chart, the
following will shoe the monthly sales report.




Chart 3
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Timeline

The XXXXXXplans to obtain as per the specified timelines;

   1. New project by end of Q1

   2. New project by end of each quarter


MARKET ANALYSIS SUMMARY
XXXXXXwill be focusing on top-tier services in construction management service to people
who want contracting service in the different areas of United States. These may be mostly larger
companies, or occasionally medium-sized companies or Public Domain, Federal & State
Government, Municipalities, Large Corporations, General Contractors, Architects, Mechanical
Engineers and Electrical Engineers

Our most important group of potential customers are people belongs to both small and large
organizations who seek contracting of multiple services offered by XXXXXX contracting
Inc.without any delay in working and intended to avail any opportunity at hand.

MARKET SEGMENTATION
 The current and most important market segment of XXXXXXis their various operations that
comprise a build-to-suit general contractor consultancy in Southern California. It offers diverse
services, which include construction management, preconstruction and estimating, LEED
construction for new and existing structures, quality assurance programs, and ADA compliance
assistance. The key offering of company is general contracting services for commercial and
corporate headquarters and lots more. However, the major areas of expertise are build-to-suit
services for commercial and corporate campuses, green building, and hospitality and retirement
industries.
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XXXXXXwill focus medium-sized growth companies: particularly in Construction Management
and sustainable energy management, Services and some related high-growth fields. To this end,
XXXXXX will offer an attractive development alternative to the company that is management
constrained and unable to address opportunities in new markets and new market


MARKETING PLAN

ECONOMICS
Building services in general is a very cyclical industry, and for single-building construction and
its management, it needs particular economic considerations and preparation. Given the cyclical
nature and the length of years from land purchase to structure building, it is necessary to analyze
long-term economic trends that will affect demand of customers. There is a correlation among
the three economic variables. These variables are long-term interest rates, job growth and
consumer confidence that affects the demand. Rising interest rates related to periods of increased
job growth and growth in consumer confidence and vice versa is a major factor to consider. In
conjunction with these factors, other economic characteristics affect the individual builder and
their geographic areas are in place.

        The strength of the economy is a major factor in stimulating demand for construction and
energy management. In this view, XXXXXX focuses on cost-effective and reliable services for
its customer.

Current target market comprises an array of potential clients ranging from Public Domain,
Federal & State Government, Municipalities, Large Corporations, General Contractors,
Architects, Mechanical Engineers, Electrical Engineers who seeks guideline to evaluate, develop
and execute strategies to achieve their sustainable goals and within their budgets. The growing
rate of our target market is the key to success of our potential perspective growth. Keeping in
view the reputation of company, apparently, there are least obstacles in our way to achieve set
goals.

Obstacles include;

 Market size

Following this big size of the market, the business is limited to the extent to which the market
penetration can reach its prime. The XXXXXXBusiness level of market involvement is limited
by the little capital base that the business has. However, the business is in the correct line of
growth and with continued growth, the business plans to be the main referral point in the
building and construction consultancy services.

 Unknown Costing
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The business also faces the problem of uncertain costing in the future. The extent of this
uncertain state aggravated by the unstable worldwide economic variables is a major concern. Of
late, the level of inflation and market aggregates has been on great changes. On the same note,
the business cannot succinctly outline in empirical terms to which the market variables will
change. As a result, the business cannot accurately plan for the future costing values in the
market.

 Flat demand levels

The consumer levels of quantity demand in the market where the XXXXXXBusiness operates in
not stable. The instability of the demand level in the market is actually flat at the current times.
The flat demand of the business services mean that the business cannot make high-level sales.
The low amount of sales that the business makes during the flat level of demand mean that the
profit level and profit margin remains considerably low. However, with the increase in the level
of consumer income and population growth, this trend is likely to see an about turn changes that
the business can benefit from.

Research studies show that the business is likely to experience higher demand and higher sales in
the next financial year. The business management has therefore strategically positioned the
business services to take care of the windfall changes. Actually, the company projects a growth
on the cost of sales from $84100 in the year 2011 to $109300 in the year 2012. This represents a
29.96% ROI.

 Unknown growth potential

The company is sure of a growth potential. However, it is practically impossible to state in
empirical terms the possible values of the level of business growth. This follows the wide
variations in the market economical and physical aggregates that can change the operation level
of the business. Political influence as well as the economic factors forms the major factors that
bring about the growth uncertainty.

 Insufficient staff

The business similarly faces insufficient and relevant staffing. Though the founder members are
well learned, it has been very difficult securing personalities with similar accreditations. In most
cases, this condition has forced XXXXXXBusiness to subcontract and outsource employees on
contract basis. Such employees have proved to be quiet hard to deal with in that they may lack
the organizational zeal and passion to carry out the business objectives to the next level.
However, with increased growth, the business will be in a position to recruit and train
professional workers who can carry out the business objectives sufficiently.

COMPETITION AND SUCCESS
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In current horizon of industry, XXXXXX Contracting Inc. is showing its potential strength by
providing competitive consulting services to customers. XXXXXXBusiness competitive services
success based on two factors include:

       Availability: Immediate availability of our representative whenever and wherever they
        are needed

       Convenience: Training courses and helping hands made possible success

However, as a rule, there are a few competitors in market;

•       EnerNoc – Energy Program Manager

•       CCSE - Energy Program Manager

•       Chevron - Energy Program Manager

•       O’Connor CM – Cost Consultant

•       Lenax CM – Cost Consultant

Differences include significant engineering staff and direct focus of business ideology. The main
advantage the XXXXXXBusiness has over the competitors in that customer centeredness that the
business has focused on. For any successful business, customers remain to be core. That is why
the XXXXXXBusiness has identified this critical concept and implemented customer based
focus unlike the competitors. Nevertheless, with our perspective vision and marketing strategies,
we must achieve our targets.


4.2 MARKETING STRATEGY
As the name implies, XXXXXX will be using a XXXXXX contracting approach to develop
awareness of the offered services. XXXXXX will adopt a multi-pronged marketing approach by:

       Business to business marketing; The XXXXXXBusiness has identified the need of B2B
        business promotion. The inclusion of the wholesalers and the retailers is very critical in
        increasing the market coverage and market segmentation. All these are in line with the
        company objectives of expanding its operations in the five-year plan. This will provide
        XXXXXX with great visibility in the exact community that it operate in.

       Mailings: Studies show that direct mails for a very informed and important marketing
        process. The XXXXXXBusiness will be able to keep and maintain the customer
        database. From such database, the business will be in a position to contact their old
        customers at the individual level. This method is very important in informing the existing
        customers of the newly released products and services that the business plans to roll out.
                                                                                                15



       The introduction of the energy saving tips and reliable building materials advertised to
       the existing customers will get high sales. The customers will then get the challenged to
       take the early opportunity and adopt the new trends before anybody else. Using the same
       mails, the business will also challenge the existing customers to invite and come along
       with their friends and relatives. To this effect, they can get special recognitions when the
       new clients introduced make purchases worth more than $1000 of the XXXXXXBusiness
       products and services.

      Website: XXXXXX will leverage its website as a comprehensive and efficient source of
       marketing/sales information. Such a website will easy to navigate through to ensure that
       customers get the information that they need faster. The business website will form one
       of the most important assets that it will use to reach the customers. Using strong SEO, the
       business will ensure that the website remains high ranking in the search engines.
       Moreover, the business will ensure that there is high traffic flow to the suite with strong
       ad words and backlisting.

       The strong and high maintenance of traffic to the business site will be very important in
       ensuring that majority of the potential customers come to know of the products and
       services that the business offers. The fact that the XXXXXXBusiness plans to
       concentrate on the upper and the middle class consumers as the main source of the
       market, this website service will be very critical as majority of the customers use the
       internet for their daily operations. From the business website, it will also be possible for
       the customers to make online requests for the services and product bookings. The use of
       in-built mail system in the website will ensure that the customers cheaply and
       conveniently make enquiries.

Social media marketing with a population of over three million captured using the business
website. The XXXXXXBusiness will therefore en sure that a page is maintained in each social
media market leader. The presence of the XXXXXXBusiness Facebook page as well as a similar
page on twitter will mean that majority of the social media fans will get the chance to like the
pages and consequently get updates from the company. This is an instant communication method
to the customers that the business has critically considered for careful analysis.

To achieve the above marketing strategies, the business mainly focus on the 4Ps model that still
works, just with slightly different ingredients:

      Promotion; The business will be able to put in place various marketing strategies to
       promote the products. The XXXXXXBusiness product promotion will take into
       consideration such methods as mobile marketing and network marketing. These very core
       methodologies meant to reach the customers in the market in what can be termed as the
       relationship marketing. In addition, the business will apply the viral marketing
                                                                                               16



        methodologies, all with and aim of capturing and retaining a large customer base through
        product promotions.

       Pricing

The pricing strategies that a business uses are very important factor that customers consider
before making any purchase. For the same reason, the business will ensure that workable pricing
strategies are in place. On the same note, the business will ensure that profitable discounts
offered to customers who make bulk purchases are in place. Similarly, customers who refer a
large number of new customers will also see pricing benefits to encourage them to continue
referring their friends and relatives.

Place

The XXXXXXBusiness plans to position itself in the market. With viable market segmentation,
the business will be able to make great sales from their customers. The business has identified
the various market niches to which the sales are possible. Notably, the business plans to make
their services and products available to such categories as small business owners as well as large
corporate organizations. This is the situation where the B2B business relationship becomes very
important. Similarly, government agencies and non-profit organizations also form another part of
the business niche. This marketing segment also includes the secondary and higher education.
The final market segment that the business plans to make sales to also includes various
construction-based entities.

Product

The XXXXXXBusiness products form the core of the business operations. The business has well
planned methodologies in place to help make out the right products to the people. In this
category, the business services that involve project management as well as consultancy services
that the business offers to other businesses will form part of the XXXXXXBusiness [products.
On the same note, the business also plans to carry out the cost effective and green energy
solutions to the other businesses.

 All these provided with the beneficiary businesses or agents paying for the products will help
the business make profits. It is important to note that XXXXXXBusiness plans to offer unique
services that many of the competitors do not offer. This also gives the business a competitive
advantage over the other business competitors. Product differentiation and discrimination I
therefore a very important success factor that the XXXXXXBusiness employs.

To achieve these objectives, the business marketing services, the XXXXXXBusiness plans to
implement the following marketing strategies.
                                                                                               17



       Develop a good referral system; this is important to ensure that the business remains
      relevant to the customers; referral system will help in bringing in of more customers to the
      business. The new customers’ details maintained in a properly designed database for easy
      and efficiency retrieval will be in order.

       Network extensively and develop relationships with prospects; this will help the business
      to extend and expand its customer base. At the same time, development of good
      relationships will help the business maintain good positive image in the mind of client is
      thus increasing their chance of securing tenders with the government agencies and other
      organizations.

      Target public/federal domain; the business also plans to maintain a lean and clear positive
      image in the minds of the clients. The provision of CSR (company social
      Rxxxxxxonsibility) will form part of how the XXXXXXBusiness plans to win over more
      customers and clients. Such CSR must take into consideration large numbers to cover more
      prospective customers.

      Build Library of marketing materials

The business also plans to build a library of marketing materials for use. Such a library will be
very effective in cost minimization as far as marketing procedures are in consideration. A clear
database of the marketing procedures and processes will be in place to help the business develop
a database system for marketing referrals.

      Perform more presentations

The business will perform more presentation to the prospective customers to help ion informing
such customers of the products and servicers available.

LITERATURE
General corporate brochure, pamphlets, and handbills will developed to establishing the position
of business will help to a great length. This brochure will form an integral part of the business
media campaign.

Contacting prospective customers through Literature and mailings is beneficial to sustain
business growth.

FULFILLMENT
Provide cost-consulting services such as ICE, efficiency costing elements, schematic cost
development

Provide Energy Consulting and Program Management
                                                                                               18



Technology

   1. XXXXXXwill maintain the latest automated computerizes system including:

   2. Complete e-mail facilities on the Internet, CompuServe, America-Online, and Applelink,
      for working with clients.

   3. Complete presentation facilities for preparation and delivery of multimedia presentations
      in formats including on-disk presentation, live presentation, or video presentation.

   4. Complete desktop publishing facilities for delivery of regular retainer reports, project
      output reports, marketing materials, and market research reports.

   5. The business is also studying the prospect of newsletter or electronic newsletter services,
      along with special on-topic reports.

FUTURE SERVICES
Quality Control and Assurance: Serving the needs of the energy industry, we will ensure that
certified firms and their employee are qualified to perform specific operations in accordance with
the requirements of specific projects.

Xxxxxxrication and Detailing Drawings: Serving the special needs of steel and concrete
construction, XXXXXX will be working toward offering these services to contractors in the
future.

Toll-Free Communications: We will provide our clients a toll-free number to access 24 hours a
day in the year of 2012.

Sales Strategy

The sales strategy that XXXXXX will adopt is based on developing an awareness of XXXXXX'
service as a viable alternative to exiting services within the community. This will target
advertising with local retail/commercial establishments in the area. Additionally, XXXXXX will
rely on mailings to get the word out. Lastly, XXXXXX will focus on website for marketing,
sales, and administrative purposes.

Cost Consulting

   1. Independent Cost Estimates

   2. Energy Efficiency Costing

   3. Design Schematic Pricing

   4. Proven track record
                                                                                                 19



   5. Reliable and Financially stable business partner

     The business general objectives

Niche -

 Construction Company that knows pricing and methodology of energy related projects and
   true costing best practices.

Marketing Strategy -

 Grassroots networking and SME branding, the XXXXXXBusiness will make very informed
   choices in the implementation of their marketing strategies. Notably, the business plans to
   carry out detailed networking at the grassroots levels to help in establishing the positive
   relationship with the clients and customers. This will comprise the relationship marketing
   that the business will employ. On the same note, the business will employ the B2B marketing
   with the small and medium business enterprises. This relationship marketing will form the
   major link with the XXXXXXBusiness products and services distribution channels to the
   customers.


MARKETING BUDGET -
 The XXXXXXBusiness plans to incur a monthly minimum budget of $750 and a possible
   maximum budget of $1000. This translates into a minimum total of $9000 and a possible
   maximum total figure of $120000 annually. Such ranges in figures due to the uncertain
   market economic variables.



Pricing -

 pricing strategy

       The XXXXXXBusiness has identified the low-end pricing strategy. In this pricing plan,
       the business will start by offering low prices to the customers and clients as it develop the
       customer base. The low prices will help in attracting more prospective customers to make
       purchases and thus developing a large and strong customer base4. On the same note, the
       business will provide high quality services to the clients to help in the maintenance of the
       customer confidence in the business products. This compliments the low pricing strategy
       that the business plans to offer to the customers in the market. The pricing strategy is
       therefore very important factor that the business plans to use to capture and retain their
       customers.
                                                                                                   20



DISTRIBUTION CHANNELS -
 The most efficient distribution channel will be through existing commercial clients

 The most realistic opportunity lies in public domain proposal generation


OPERATIONAL PLAN


The business will employ a professional team to carry out marketing and sale activities. To this
effect, the business will employ a team of professionals to carry out these pertinent activities.
The sales and marketing team will have the opportunity to meet the customers face to face and
sell the business products. This implementation plan is very important following the technical
nature of the products and services the XXXXXXBusiness will offer. The customers can
therefore ask questions and get immediate feedback concerning the business services.

 Produce Proposals

The business will also include the product proposals under its marketing strategy. Notably, the
product proposals will form the pilot test products to see how the customers would react to the
business new releases. This will help the management to define the modification possible on the
new products released based on the feedback that the customers give. This will make the
products to be customer focused and thus more relevant services released in the market.

 Manage Contracts

Whereas we will move forward to offer the following key services of XXXXXXto our client for
immediate and accurate result: the apt and timely management of contracts will be very
important for the business- customer relationship. Timely management of the contracts will not
only, portray the business as a reliable source of technical assistance to the other businesses, but
it will also make the business make develop more customers through referrals.

EXECUTION -
Our strategy to plan a project management is by following these key strategies

Proposal generation

The business will take the initiative to develop a proposal for the projects that will be in line with
its operations, project proposal is very important in that it will offer clear and succinct guidelines
followed during the projects implementation. Such proposal will be very detailed to include
instances of possible changes that the business can be able to realize during implantation. It will
be therefore very flexible as far as business implementation is concerned.
                                                                                                 21



Analyses

Once the business proposal is in place, a thorough analysis will follow to help the business
evaluate the proposed procedures. Analysis is very important to differentiate the workable and
the non-workable procedures that the business will undertake. This will help the business to
avoid such strategies that can bring about considerable loses whenever business funds are
committed to them.

Cost Estimating

A proper cost estimates will be given out before the business projects are in place. The business
will then base its project funding on the cost estimates. Cost estimation is important in outlining
the possible value needed to complete the project that the business has undertaken.

Customer service

The XXXXXXBusiness has realized that the customer is the most important person. Since the
business operates on a going-concern basis, customers remain the core components of the
business management. The business will therefore ensure that the customer get the first priority
in designing the products and services. These product and services will get a tailored design to
give the customers a 100% satisfaction. A proper feedback procedure will therefore be in place
to ensure that customer services id more than the customer expectations at all the time.

Delivery Energy

 Proposals

The business plans to maintain a proper proposal in line with its goals and objectives. As a result,
this will form the core drive that will see the business commitment to delivering its products and
services.


FINANCIAL PLAN

BREAK EVEN ANALYSIS
The summary reports that the business will make will be very important in informing the general
overview of the business costing. Concisely, the summary reports will be critical in estimating
the possible amount of funds needed to deliver the project that the business is undertaking.

It is also important to show the business milestone development. For the past financial year, the
business has been able to make great achievement milestones. The following graphs helps in
showing the achievements that the business is able to make.
                                                                                                     22



Chart4




Based on the above milestones, it is possible to carry out the analysis on the point of balance
between the business sales revenues and expenditure. The business break even analysis point
shoes a very viable business with the value of the business revenue being higher that the value of
the business expenses. The following table shows the break even analysis point.



Table 3




                       Break-even Analysis




                       Monthly Revenue Break-even                               $27,033




                       Assumptions:


                       Average Percent Variable Cost                               23%

                       Estimated Monthly Fixed Cost                             $20,700




For clear visual impression, the break even analysis can also be done using a graph. The graphical
representation of the break-even analysis gives the whole picture of what entails the business
exemplary performance.
                                                                                            23




Chart5




PROFIT AND LOSS STATEMENT ANALYSIS
The business will be able to make great sales. When this sales is analyzed using the profit and
loss account, it is clear the level of business growth the company will be able to realize. The
following table gives the financial analysis of business performance in the first two years of
business performance.



Table 4



Pro Forma Profit and Loss


                                               FY 2011          FY 2012


Sales                                         $358,968        $1,286,500

Direct Cost of Sales                           $84,100         $109,300

Other Costs of Sales                               $0                $0

Total Cost of Sales                            $84,100         $109,300
                                                                                            24




Gross Margin                                    $274,868         $1,177,200

Gross Margin %                                    76.57%            91.50%




Expenses


Payroll                                         $216,000          $237,500

Marketing/Promotion                                   $0                $0

Depreciation                                          $0                $0

Rent                                                  $0                $0

Utilities                                             $0                $0

Insurance                                             $0                $0

Payroll Taxes                                    $32,400           $35,625

Other                                                 $0                $0




Total Operating Expenses                        $248,400          $273,125




Profit Before Interest and Taxes                 $26,468          $904,075

EBITDA                                           $26,468          $904,075

 Interest Expense                                     $0                $0

 Taxes Incurred                                   $7,940          $271,223




Net Profit                                       $18,528          $632,853

Net Profit/Sales                                   5.16%            49.19%




At the same time, it is possible to give the monthly annual sales in the following graph.

Notably, the year 2012 shows the highest possible monthly annual sales. This is so since the
business has well planned outline of operation in the next financial year.
                                                                                              25



Chart 6




The annual gross profit projections for the half decade business operations can also be presented
as in the following graph. It has close relevance with the yearly profits above.



Chart 7




CASH FLOW PROJECTIONS
The following table gives the projected cash flow for the year 2012 from the business activities
that took place I the year 2011



Table5
                                                                   26



Pro Forma Cash Flow


                                            FY 2011     FY 2012


Cash Received




Cash from Operations



Cash Sales                                 $358,968   $1,286,500

Subtotal Cash from Operations              $358,968   $1,286,500




Additional Cash Received


Sales Tax, VAT, HST/GST Received                $0           $0

New Current Borrowing                           $0           $0

New Other Liabilities (interest-free)           $0           $0

New Long-term Liabilities                       $0           $0

Sales of Other Current Assets                   $0           $0

Sales of Long-term Assets                       $0           $0

New Investment Received                         $0           $0

Subtotal Cash Received                     $358,968   $1,286,500




Expenditures                                FY 2011     FY 2012




Expenditures from Operations


Cash Spending                              $216,000    $237,500

Bill Payments                              $116,494    $389,890

Subtotal Spent on Operations               $332,494    $627,390




Additional Cash Spent


Sales Tax, VAT, HST/GST Paid Out                $0           $0

Principal Repayment of Current Borrowing        $0           $0
                                                                                      27



          Other Liabilities Principal Repayment                  $0              $0

          Long-term Liabilities Principal Repayment              $0              $0

          Purchase Other Current Assets                          $0              $0

          Purchase Long-term Assets                              $0              $0

          Dividends                                              $0              $0

          Subtotal Cash Spent                               $332,494       $627,390




          Net Cash Flow                                      $26,474       $659,110

          Cash Balance                                       $26,474       $685,584




Balance sheet for fiscal years 2011 through 2015 are outlined in the chart below.



Table 6



           Pro Forma Balance Sheet


                                                           FY 2011         FY 2012


           Assets




           Current Assets


           Cash                                            $26,474        $685,584

           Other Current Assets                                 $0             $0

           Total Current Assets                            $26,474        $685,584




           Long-term Assets


           Long-term Assets                                     $0             $0

           Accumulated Depreciation                             $0             $0

           Total Long-term Assets                               $0             $0

           Total Assets                                    $26,474        $685,584
                                                                                             28




            Liabilities and Capital                          FY 2011          FY 2012




            Current Liabilities


            Accounts Payable                                  $7,946          $34,204

            Current Borrowing                                    $0               $0

            Other Current Liabilities                            $0               $0

            Subtotal Current Liabilities                      $7,946          $34,204




            Long-term Liabilities                                $0               $0

            Total Liabilities                                 $7,946          $34,204




            Paid-in Capital                                      $0               $0

            Retained Earnings                                    $0           $18,528

            Earnings                                         $18,528         $632,853

            Total Capital                                    $18,528         $651,380

            Total Liabilities and Capital                    $26,474         $685,584




            Net Worth                                        $18,528         $651,380




SWOT ANALYSIS
Strengths

Competent Core Group

The XXXXXXBusiness has a well-trained set of professionals to manage its operations. The
founder members are well-learned individuals in the field. Similarly, they have long-term
experience in the field of constructive and efficient building services. On the same note, their
elaborate experience on the energy conservation measures gives the business a cut above the rest
when expertise and business service consultancy is concerned. This gives the business a fair
competitive edge above the business competitors run and managed by amateurs. The competent
personnel will drive the business performance to greater and higher profit margins.

Key personnel
                                                                                                29



On the same note, the business will be able to employ key personnel to help in achieving the
business goals and objectives. The business personnel will get hands on training on the job. This
will be very important in acquiring the necessary job relevant skills meant to boost their work
confidence. The management and the workforce team will therefore be at par and work in unison
with the business aims in mind. Such a workforce will help in achieving the greatest business
growth index possible.

Relationships

Due to the large networking ability of the business owners, the business will be able to develop
very viable and healthy relationships that will spur its growth to the greater heights. Moreover,
the relationship and the B2B marketing strategies that the business has effectively put to use are
very critical strategies aimed at giving the business a cut above the rest as far as the business
competition is concerned.

Creative problem solving skills

The business workforce and personnel management have the able mind and abilities to nip all the
problems in the bud. This means that they will be proactive rather than retroactive in problem
solving. This is the gist component skill required for any business to grow. When all problems
are identified in time, the business is in a good position to plan for the counter actions that are
meant to avoid the risk altogether or harness it for the effective business growth.

Loyalty,

The business has maintained a culture whereby all the stakeholders work in accordance with the
business core objectives. The equal driving force of all stakeholders to be committed to the
business objectives is very important aspect in realization of the highest possible business
achievements. This brought about by one to one commitment in achieving their assigned duties
as per the management of objectives that the business owners have applied in the business
operations. The commitment to service that the business has put in place has seen high profit
maximization and relatively low costs.

Clarity of purpose

Of all the businesses offering similar products, it is only the XXXXXXBusiness with defined
business mission, vision, goals, and objectives. Moreover, it is the only business involved in the
move to have the objectives achieved. This has been possible from the clear instructions that the
human resource personnel get before assuming their duties.

Weaknesses/Opportunities for Improvement

Limiting our perspective based upon past experiences
                                                                                                 30



In the past few years, the business has not been performing well due to neglect. As a result, it has
somewhat negative image in the mind of the clients. This is what the business is working on to
turn around the tables and offer high quality services to the customers. This will be very core in
retaining customers through repeat purchases.

Leveraging the strengths of the entire organization

It would be very important to harmonize the operations of all the workers in the organization.
However, due to the fast rate at which the business expands, this is not an easy venture. It is
becoming practically hard to synchronize all the individual functions with the other. The
business management has therefore resorted to management by objectives to ensure that each
individual carries out their duties effectively.

Unifying standards, processes, and documentation

On the same note, it has become very hard to unify the standards of performance in the
organization. Similar difficulties realized in the provision of a standard set of uniform
documentation in the business. The business can therefore not have same processes in the system
for all the employees.

Implementation of new technologies

Because the business operates in a technology sensitive field, it is very difficult to maintain high
standards of performance in the business. Maintaining up-to-date technology in the business
operations is not only very complex process for the business management but also very
expensive investment. Maintaining latest technology with meager resources is therefore another
weakness that the business is facing.

Opportunities

Advantage expertise

The business general set of personnel management is a very able body that can easily transform
any business. The able-bodied personnel are bale to realize the highest profits ever that the
business can make. This is a very important opportunity that the business can make use of to
realize high sales.

Advantages of existing client base

The business is already having a niche in the market. This means that it has a large customer
base exploited for the benefit of the business. The business can therefore focus on the existing
customer base to help in capturing more customers and increasing their customer loyalty.

Prototype already existing through APS
                                                                                                31



Because the business has been operational in the past years, it is important to note that it has
well-outlined prototype procedures that it can follow to greater success.

Further Develop Personnel

The business has a good outline of personnel training and development. As a result, it would be
easier for the business to develop and train all the people whom they want to perform different
tasks. Such training will be very cheap, as the business does not need to involve any external
personnel to perform such duties.

Threats

Lack of Focus

The business cannot clearly focus on the future changes in the business economic and political
environment. This forms a great threat to business operations in the future.

Small business specialization

Generally, the business does not have a large asset base to undertake large orders. This is a great
limiting factor to the business. The low level of operation really threatens the business growth
rate.

Economy and Low Fees

The market economy is not stable. Various inflations and depressions have negative impacts on
the business. Such changes can have negative impacts on the business operations.




Assumptions:

As company grows naturally in a competitive environment with high rank and reputation, there
is great opportunity and probability of potential success in current industry in the year 2012.

Vital goals for 2012

Achieve foothold in professional services sector in San Diego

Customer satisfactions achieves meets or exceeds expectations 100%

Successful development of supporting team, matching results to goals

Furthering penetration into non-traditional DG and off-grid markets

								
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