Loan Proposal for Civil Engineering Consulting Company Intelligent Engineering, LLC
Mariusz K Mazur March 10, 2005
Executive summary Statement of Proposal In this document I will introduce facts and statistics that will convince you about my business goal. In the era of global communication world became smaller then ever in history. Today we can speak about global marketplace and global world economy as reality. This vivid interaction between business and varies countries busted enormous opportunities for growth of infrastructures of all types. As a result, Civil Engineering Services became in huge demand for some period of time now, and this trend is expected to grow even faster as our global village expends. Civil Engineering Consulting Services meet the demands for professional design, development and construction of infrastructure of all kind: from commercial buildings, private buildings to extending the network of roads, railroads marine ports and airports. Building and maintaining of those infrastructure calls for experienced professional in the area of Civil Engineering, and my company will meet the demand for those services. Background Civil Engineering Consulting Company provides services to private, commercial and government clients in the area of designing, building and maintaining all kinds of facilities and infrastructure like buildings, airports, roads, bridges, sewage system and storm water systems. Teams of professional engineers meet with the client to recognize the situation and discuss possible solutions, depending on nature and scope of the client’s problem. The range of problems that my company could be dealing with is as wide as the whole Civil Engineering area. We can recognize 5 main categories of Civil Engineering: Construction, Environmental, Geotechnical, Structural and Transportation Engineering. In all of those areas teams of specialized professional engineers can help their clients to find a solution to a client’s problem and finally meet the client’s demands. Goals and Returns The profits from this kind of business are high and well recognized by the professionals in the area of consulting services. No branch of Civil Engineering practice gives is as much financial rewards as consulting. The level of responsibility resting on consulting company is considerable. Accordingly, the financial benefits are equally heavy and rewarding, balancing the vast amount of professional knowledge expected from consulting company. The investors who will decide to take a part in creating the consulting services business will be significantly rewarded with the income that this business will generate. The rate of return for this kind of business is high for investors and relatively shortly (compared to other businesses) the investors get their money back and start collecting profits.
Qualifications As the person who proposed and developed the business plan, I have both competence and experience in the area of the market. From a professional side, I am holding a Master of Science degree in Civil Engineering with the concentration in Construction Management. This gives me a cutting edge education in leading my future consulting company to a success. Both during the undergraduate and graduate studies, I went into specifics of managing various civil engineering projects. During my graduate studies I concentrated on details of Construction Management as a future Project Manager. This gave me excellent qualification as a prospective team leader, manager and executive. With this knowledge I entered the field of Civil Engineering with a success, quickly moving up on the ladder of management. During the last 10 years I gained invaluable experience on different levels of management, starting as a field engineer (and working in the field), to an executive manager in a mid-size Civil Engineering private company.
Business Model Location information My business would be a consultation company. It provides consultation services to clients within a wide area of civil engineering. Very important for my business is a location of the main office. It is crucial to my business that I will locate it close to the area that needs my services. As I stated above, my clients are from both private and commercial sector. The highest demand for civil engineering consultants is in the area where infrastructure develops the fastest. Mainly those areas are urban areas, and that’s where my consulting company will operate. The company’s main office will be located in Hoboken, NJ which gives me a quick access to Manhattan, NY – the heart of business. Location in Hoboken, NJ also is an advantage in terms of good connection to the north and mid parts of New Jersey. Due to the professional regulations, my consulting engineers have a professional permit for sealing a civil engineering plans and proposals only in the area of New Jersey and New York. Once again the location in Hoboken , NJ gives my business an easy access to the largest markets of New Jersey located in North New Jersey, and main markets of New York located in and around of City of New York. Organization of Work Space The office space that I will use for my consulting business located is a small office building close to a major road leading to Rt3. This again proves quick access to NYC and New Jersey highways, giving my clients and my stuff engineers advantage of moving fast to the point of interest, specifically from office to a job site and vice versa. The office space itself is a 2 story building giving me a net office area of 2,500 ft. sq. This relatively large area gives me ability to accommodate my stuff engineers and offer them a space to work. Each of my engineering stuff members has his/her own cubicle. Cubicles are located mainly on the second floor, the first floor is reserved for the management offices and for meeting rooms with our clients. The cubicles are equipped with state-of-the-art computer systems with the latest engineering software. Depending on the area of expertise, each engineer will have specialized software to help him/ her work more effectively and efficiently. Also all the cubicles are connected to the intranet which enables quick internal communication between engineers and management. On the first floor, the meeting rooms will be equipped in state-of-the-art multimedia equipment. High quality projectors and computerized control systems will enable efficient presentations of projects for the future clients. Second largest office on the first floor will be a conference room. This room will be equipped in state-of-the-art communication systems to enable quick and efficient communication between parties. The system will include a satellite communication link for video conference, and also high speed internet link for video conference backup line.
Dealing with the Assigned Projects In my company the engineers will focus on creativity and efficiency when dealing with clients. As the number of our clients will grow, the projects will be reviewed by a senior engineer within a certain department, responsible for the particular area of civil engineering that deals with my client’s problem. For example if a City of Edison, NJ asks my company to prepare a detailed plan for construction of new road link in the city, this project will be automatically forwarded by the management to the executive engineer and after review he will forward it to the department of transportation. Some projects, like the one I gave example of, requires a cooperation of more than one department. In those cases the project will be discussed within the two departments and one engineer from each department will be assigned to jointly work on the project. In this particular case of designing and building an additional road link in the City of Edison, NJ, the department of transportation will cooperate with the department of construction. The two engineers from both departments will answer to their own senior engineers from their department, but during the final phase of the projects, all the issues will be presented on the meetings jointly hosted by executive stuff from those two departments and supervised by executive engineer of my company. Organization of Labor Taking into consideration the scope of the projects that my consulting company will be dealing with, and the needs of the market that I will operate within, I came up with the number of engineers that needs to be hired for each department. The Construction Department is expected to have the largest number of projects, and naturally will require the largest number of engineers to work on the projects. I expect to hire 4 construction engineers at the beginning of operation of my business. Later I expect to increase that number as the demand will call for it. Another department that I will create within my company is Structural Department. I expect to hire 2 professional engineers with structural engineering license to practice. They will be dealing with all the structural calculations and report to the management. This department is expected to grow fast as numerous project demands complicated calculations and analysis. Third department will be geotechnical department with the initial stuff of 3 geotechnical engineers. They concern will be within a range of soil and foundation engineering projects. The stuff of this department will report to an executive engineer of my company. Fourth department will be Environmental Department with 2 environmental engineers responsible for preparing so called Environmental Assessments. Their work will be supervised also by an executive engineer in my consulting company.
The fifth department within my company will be transportation department. I will hire 3 transportation engineers responsible for road design, traffic analysis and traffic lights calculations. Their work will be supervised by executive engineer and also management of my consulting company. Current Market and Predictions for Future As I already stated in the document, we live in the era of global communication and the world became smaller then ever before. In the Tri-State Area where my business will be located there are enormous opportunities for growth of infrastructures of all types. As a result, Civil Engineering Consulting Services became in huge demand for some period of time now, and it is expected to grow even faster in future. Civil Engineering Consulting Services will meet the demands for professional design, maintenance, development and construction of infrastructure of all kind including but not limited to commercial buildings, private buildings, commercial facilities, network of roads, railroads, marine ports and airports. Designing, building and maintaining those infrastructures calls for experienced professionals in the area of Civil Engineering, and my company will definitely meet the demand for those services.
Budget
Startup Budget
cost of equipment cost of professional software real estate startup costs advertising of the new business professional training of the crew decorating of the office space cost of vehicles Projected Cost $500,000 $100,000 $80,000 $100,000 $70,000 $70,000 $80,000 $1,000,000
Subtotals
Operating Budget
cost of rent of the main office cost of rent of the second office Phone Electricity Gas Water and sewer Cable Waste removal Maintenance or repairs cost of vehicle maintenance office supplies salary for workers (weekly estimate)
Projected Cost $4,500 $2,000 $850 $800 $150 $100 $95 $80 $400 $2,000 $700 $30,000 $41,675 Estimated Average charge number of per client / clients per project weekly $50,000 $40,000 $35,000 $15,000 $25,000
Subtotals
Income budget
structural consulting geotechnical consulting transportation consulting construction consulting environmental consulting
Total
1 2 2 5 2 17
$50,000 $80,000 $70,000 $75,000 $50,000 $325,000
Subtotals
Estimated Weekly Profits
Weekly Income Operating Costs TOTAL TAXES $325,000 - $41,675 $283,325 - 40% $169,995
Subtotals