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Business Plan

VIEWS: 49 PAGES: 50

									       Business Plan
CRMT Industrial Services, Inc
  “New Engineering Solutions to the
                       Industry”
CRMT Industrial Services, Inc
“New Engineering Solutions to the Industry”
1. EXECUTIVE SUMMARY
   CRMT Industrial Services, Inc. will be formed
    as a consulting and training firm specializing
    in welding engineering services.
   A home office in Long Island City, NY will be
    established the first year of operations to
    reduce start up costs.
   The founders of the firm are professional
    engineers and managers with more than 25
    years of progressive and responsible
    experience.
Sales Projections

YEAR   SALES ($)     PROFITS ($)   SALES /
                                 PROFITS (%)
2008     $684,000        $54,720    8.00%

2009     $889,200        $80,028   9.00%

2010    $1,368,000      $150,480   11.00%
Highlights
$1,400,000.00
$1,200,000.00
$1,000,000.00
 $800,000.00
 $600,000.00
 $400,000.00
 $200,000.00
       $0.00
                2008               2009          2010

                Sales   Expenses    Net Profit
Quality System
   Quality system
    implementation
   Leadership and management
    review
   Resource management
   Design and development
    implementation
   Supplier management
   Service Provision planning
    and control
   Document and record control
Objectives and Goals
   Sales of $ 684,000 the first year,
    approaching $ 1,368,000 at the
    end of the three years.
   Achieve New York Certification to
    be listed in the Directory of
    Certified Minority and Women-
    Owned
   Become one of the contractors of
    inspection task of MTA projects
   Have an impeccable reputation in
    the engineering, inspection,
    training and materials testing
    industry in New York City.
Objectives and Goals
               Achieve 100% of market value at the end
                of the three years of operations.
               Increase gross margin to 70% by the
                third year of operations.
               Implement a quality management system
                under ISO 9000 (2nd year).
               Increase its installed capacity to 50% at
                3rd year.
               Increase its labor positions to 50 % at 3rd
                year
               Establish the level of the laboratory’s
                performance at 2nd year
               Ensure that all personnel are trained to a
                level of familiarity with the quality
                management system appropriate to the
                individual’s degree of responsibility.
Mission
      CRMT Industrial Services, Inc. is a
        materials solutions company that
        provides superior value in testing,
      consulting, training, problem solving,
       and design & engineering services.
       CRMT incorporates state of the art
      technology and equipment to provide
      highly specialized testing procedures
      and training. It is dedicated to serving
             the construction sector.
Market Opportunity
Challenge: Manufacturing
   “The NAM believes America’s future depends on a skilled, productive and
 technically trained workforce. Every citizen needs to know that the winners in
       the global marketplace will be companies with the best workers.”
                         Dream !t Do!t NAM Campaign
                          John Engler, President, NAM

 “If we don’t address the skills issue, our economy will face a serious decline.”
            Jerry Jasinowski, President, The Manufacturing Institute

 “81% of manufacturers polled by NAM/Deloitte report they can’t find the skilled
workers to keep their businesses competitive in a global 21st century economy.”
           Phyllis Eisen, Vice President, The Manufacturing Institute

 “NAM predicts that manufacturers will need as many as 10 million new skilled
workers by 2020, in part to replace aging boomers who make up a large part of
                           manufacturing jobs today.”
                               Wall Street Journal
Challenge: Welding Industry
   Manufacturing, Construction and Mining is a $3 trillion industry,
    1/3 US GDP.
   Welding is a $34.1 billion industry.
   Labor represented more than 70% of welding-relate
    expenditures, $22.4 billion in 2000.
   There are more than 500,000 welders working in US.
   The average age of welders in today’s workforce is 54.
   It is estimated that there will be a shortage of more than 200,000
    welders by 2010.
   This year, 50,000 welders will leave the industry while only
    25,000 students begin their welding education.
Financial Data
   GROSS OFFERING                                     $750,000
   LESS ESTIMATED OFFERING EXPENSES AND COMMISSIONS          0
   NET PROCEEDS                                       $750,000
   PLANNED USES
   CAPITAL EXPENDITURES
   Computer equipment                                  $ 10,000
   Purchased software y licenses                        $5,000
   Furniture and Fixtures                              $ 20,000
   Remodeling and Decorating                           $ 30,000
   Welding and Testing Equipment                      $ 450,000
   Total proceeds for capital expenditures            $ 515,000
   WORKING CAPITAL
   Salaries and wages                                 $ 100,000
   Expenses                                            $ 50,000
   Advertising                                         $ 20,000
   Reserve                                             $ 65,000
   Total proceeds for working capital and reserve     $ 235,000
   Total Uses                                         $750,000
2. COMPANY




3314 Queen Boulevard, Long Island City, NY 11106-
                      1306.
Distribution of Areas
Distribution of Areas
Company Ownership

   CRMT Industrial Services
    will be created as a
    limited-liability company.
    The company will be
    privately owned by Daniela
    Romasan, Liliana Melo,
    Craig Cusanelli, and Amin
    Taurani.
Startup Summary
   Its start-up expenses amount to $25,000, which
    allows for initial legal expenses, licenses, permits,
    stationary, specialty software, office equipment, and
    furniture.
   Initial investment of $750,000 will be placed in the
    company accounts to purchase new equipment
   Daniela Romasan, Liliana Melo, Craig Cusanelli,
    and Amin Taurani will contribute $25,000 each one
    towards the overall start-up costs.
3. ENVIRONMENTAL AND
INDUSTRY ANALYSIS

   Welding industry and     Establishments         231
    engineering
    consulting services is   dollar value of   3,799,582
    a large industry not     business done
    only in New York         annual payroll     794,067
    City, but also in
                             Employees           16,128.
    entire United States.
Welding Status
   Welding is viewed as “dark & dirty”
   The critical role of welding is not fully appreciated in all corporate
    and government offices.
   High schools phasing out welding programs and discouraging
    careers despite annual earnings potential of $30,000 - $60,000.
   1/2 of US industries report difficulties locating qualified welders.
   The US infrastructure is aging.
   Shortage “barrier” resulting in fewer competitive welding
    techniques, less productivity and outsourcing to foreign markets.
   Natural disaster prone areas have immediate need for welders to
    quickly rebuild homes and cities.
   The typical salary for a Pipe Fitter in New York City is $55,027.
Welding Future
   Advancing manufacturing technology creates more uses for
    welding in the workplace and is expanding opportunities.
   Increased emphasis on certification, which ensures quality.
   Computer skills are required for welding professionals
    responsible for programming welding robots, lasers, and
    systems.
   New materials are creating a greater need for a highly educated
    and innovative welder workforce.
   Automation reinforces the need for skilled machine operators.
   US industries face foreign competition and require competitive
    welding techniques and skilled operators to stay viable.
   Skilled welders are needed to maintain the Country’s aging
    infrastructure
4. SERVICE DESCRIPTION




  Engineering Consulting     NDT Services - Laboratory




Welding Training – Welding
         School               Welding Equipment Rental
Services:
                                         CRMT
                                      SERVICE LINES



                            Material Testing          Engineering Consulting
Equipment Rental                                      in Quality and Welding
                                                                                School of Welding
                              Laboratory



                                                                                 Instructions and
            Welding Equipment                    Testing
                                                                               Classes - Seminaries



              Non Destructive
                                               Qualification
                Equipment
5. MARKETING RESEARCH
AND EVALUATION
   CRMT will focus on
    traditional
    engineering
    consulting, material
    testing and rental
    welder equipment
    contracts.
Segmentation

WELDING AREA IN NYC                      REVENUES             # Bus.

        TYPE          # Business   Less than $100,000        13

Welding Contractors   231          $100,000 - $499,999       17

Welding Services      174          $500,000 - $999,999       6

Welding Repairs       20           $1,000,000 -              8
                                   $4,999,999
Welding Inspections   21
and Consultants                    $5,000,000 and over       2
Welding Equipment     11           TOTAL                     46
Rental

           Census 2002               Classification of minority and
                                       women owned business
Business Analysis
                                                 2%       7%

 53%
                                                                       19%




                                                               7%
                                                       2%
                                          10%
       Business Services              Engineering Services
       Equipment Rental and Leasing   Management Consulting Services
       Management Services            Surveying Services
       Testing Laboratories
Advertising
   The services will be
    advertising in various
    newspapers such as
    Daily News, New York
    Times and in the free
    newspapers.
   Also, in technical
    magazines issued by
    AWS, ANSN, AISI, and
    others
Advertising
   Welding School
    services will be
    advertised in Radio
    and TV at the end of
    the first year.
    Flyers and wed site.
   Public Relations by
    participation on national
    technical events of
    Welding.
Flyer Designed
                                CRMT INDUSTRIAL SERVICES, Inc.


    CRMT provides specialized engineering consulting, testing services, and operative welding training applied
             in heavy industrial, shipbuilding, steel building erection, pipe welding and fabrication
      Go to CRMT website at www.crmtindustrial.com for more information or call us at 1-800 WELDING.




                   “New Engineering Solutions to the Industry”
Logos
CORPORATIVE LOGO                WELDING LOGO




                              It will be used for Welding
 It will be used for formal
                                Training (Manuals) and
     communications
                                       Advertising
6. OPERATIONS PLAN
   General Operating Hours:
    CRMT Industrial Services,
    Inc. intends to operate
    rental, consulting and
    testing services Monday
    thru Friday from 9 am to 5
    pm. The Welding School will
    be operated Monday thru
    Friday from 7 am to 10 pm
    and Saturday from 9 am to
    1 pm. CTMT will be
    operational year round.
Human Resources
   Mrs. Liliana Melo will work
    as Director Manager as well
    as School Welding
    Manager.
   Miss Daniela Romasan will
    work as Administrative
    Manager.
   Mr. Craig Cusanelli will work
    as Finance Manager.
   Mr.Amin Taurani will work
    as Sales Manager.
   Mr. Jonny Olarte will work
    as NDT Manager.
Selection and Recruitment

   In addition, Miss Daniela
    Romasan will select and
    recruit new personnel to
    work on these following job
    positions: (1) sales person,
    (1) Bookkeeping, (1)
    General Secretary, (1)
    Electrical Technician, (2)
    Inspectors, and (1)
    Laboratory Technician
    during November, 2007.
Work Environment
   CRMT Industrial Services, Inc. provides employee
    benefits, job and schedule flexibility, interesting
    work, and involvement of our employees in an
    empowered environment of continual improvement.
   CRMT Industrial Services, Inc. engenders total
    participation by involving employees in internal audit
    and improvement activities.
   The     Administrative     Manager     has     overall
    responsibility for identifying, implementing and
    maintaining effective employee benefit and
    workforce involvement programs.
7. MANAGEMENT TEAM

                Monthly Salary Expenses
JOB POSITION            AMOUNT SALARY TOTAL
Sales person               1      $ 4,000    $ 4,000
Bookkeeping                1      $ 3,000    $ 3,000
General Secretary          1      $ 2,600    $ 2,600
Electrical Technician      1      $ 3,500    $ 3,500
Inspector                  2      $ 5,000   $ 10,000
TOTAL SALARY EXPENSES                       $ 23,100
Organizational Chart
                                                General Manager



                                                            Management
                                     Internal Control
                                                             Committee



Sales / Customer    NDT Laboratory    Welding School        Consulting                     Administrative /
                                                                         Finance Manager
   S Manager          Manager           Manager              Manager                        HR Manager



              Marketing




            Rental Services
 8. TIMELINE
                JUN   JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR   MAY


Planning
Org. Legal
Financial
Dec. / Rem
Fixtures / Eq
Installation
Marketing
Personnel
Q/A
Adjusting
Open doors
                                                                      On time!
9. CRITICAL RISK AND
ASSUMPTIONS
   Liability for injury or death of
    employees or other people
    on CRMT premises.
   Liability for injuries or
    damage caused by services
    CRMT makes.
   Destruction or theft of
    property, equipment,
    machinery, vehicles or other
    assets.
   Loss of net income through
    lost sales or extraordinary
    expenses.
Risk.
   Out of cash before orders
    secured
   Competition price cutting
   Costs in excess of estimates
   Unmet schedule(s)
   Difficulties with credit
   Lots of orders and NO cash
   Unfavorable industry trends
   Sales projections not achieved
   Long lead times in
    procurement
   Unexpected development
    costs
Management of Risks –
Assumptions (Finance Risks)
   Purchase adequate insurance to transfer
    financial responsibility for losses to CRMT
    insurer. Obtain enough insurance to cover all
    risks.
   Know the Insurance Policies: review the
    policies with the independent insurance agent
    and, if necessary, purchase additional
    coverage to ensure that the business is fully
    protected.
Management of Risks –
Assumptions (Transfer Risks)
   Lease Business Property and
    Equipment: CRMT may be
    able to transfer
   Property and liability risks in
    whole or in part to the lessor.
   Transfer Risk to the
    Customer.
   Hire the Right
    Subcontractors.
   Decline Risky Business.
Management of Risks –
Assumptions (Control Risks)
   Take a close look at how
    CRMT does business.
    Assess equipment, facilities,
    employees, processes, and
    services.
   Take advantage of the
    excellent loss control
    services provided by many
    insurers.
10. BENEFITS TO COMMUNITY
Employee Benefits
           Provide our employees with
            opportunities to use their
            professional skills
           Provide CRMT employees with
            opportunities to use their
            professional skills outside their day-
            to-day environment.
           Link pro bono work to the
            Continuing Professional
            Development program.
           Manage the administration of the
            pro bono program to employees.
Employee Benefits
   Strengthen employees’
    leadership and motivation.
   Make employees participate
    in the growth of the
    company.
   Build new careers and
    opportunities for CRMT
    employees and suppliers.
   Fortify supplier chain by
    special program of training in
    quality assurance.
Community Benefits
   Provide internships to students
    attending surrounding schools.
   Using environment friendly
    services.
   Offering job placement
   Involvement in matters that affect
    community businesses.
   Develop the understanding of key
    social issues in your local
    community by scholarships.
Community Benefits
   Build new business contacts locally
    and regionally.
   Work collaboratively with other firms
    that need a range of professional
    skills and expertise to strengthen the
    technology and knowledge applied in
    welding industry.
   Be another alternative of technical
    education in New York City.
   Develop new opportunities in young
    people by training and special
    programs.
   Create economic opportunity to the
    community as well as New York City.
10. Financial Plan
                FINANCIAL OBJETIVES
                     2008      2009      2010
Sales                684,000   889,200 1,368,000
Operating            478,800   622,440   957,600
Expenses
Income before        205,200   266,760   410,400
Tax
Taxes (30%)           69,768    90,698   139,536
Net Income after     135,432   176,062   270,864
Taxes
Objective Needs
   A loan of $750,000 at Prime plus
    2%. This loan to be used for
    current near term expenses
    including inventory, rent and
    payroll. It will be repaid in five
    years.
   A line of credit of $50,000 to take
    advantage of discounts available,
    avoid associated penalties, and
    expand into high profit areas
    requiring positive cash flow.
Financial Statements


                  BALANCE SHEET
                       CASH FLOW
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