Business Plan For Interior Enterprises example essay topic

Executive Summary The name of the business is Interior Enterprises located in Brookfield, Illinois at 17201 West 55th Street. The business is a partnership between James Faitz and Michael Rohan, both from the Chicagoland area with extensive background in interior restoring, remodeling, and refinishing. Interior Enterprises will undertake jobs in the five to twenty thousand dollar ranges to make back startup costs within the first two years. Initial startup costs are expected not to exceed $80,000 range.

Family members of both owners will invest money. Loans will be repaid at eight- percent interest over twenty-four months. Truck 20,000 Storage Space 18,000/ yr. Insurance 7,000/ yr. Initial Projects / Tools 35,000 Advertising 4,000 The partnership is split equally between both owners. Each of them will contribute $10,000 towards the initial startup costs.

Business will be expected ly slow at the start and smaller, consistent jobs will stem from clients James has worked for in the past. Once a reputation for quality work has been established, approximately twelve to eighteen months, business will begin to find the company for their interior projects. Objectives The company will begin with only the two owners. As a reputation is established, the company will begin to hire on full time laborers at an hourly wage. The company is looking for clients that want to have their home or business "renewed". With such experience on the owner's part in restoring older homes, remodeling, and refinishing both older and new homes, the company is devoted strictly to the interior aspect of construction work and ensuring the homeowner's satisfaction.

Chart of Competition Comparison These are several of the companies in the surrounding area and the labor charges for specific jobs. As one can see from the chart, prices are moderately the same with the exception of two companies that charge a lot more than we do. Company 12 x 14 room (paint) 12 x 14 hardwood floors Cabinet Installation Demolition Interior Enterprises. 15 SQFT. 32 SQFT 18/hr 16/hr Wright Remodeling. 14 SQFT.

29 SQFT 18/hr 17/hr Interior Do-It -All. 19 SQFT. 42 SQFT 21/hr 20/hr Pucker Interiors. 11 SQFT. 27 SQFT 16.5/hr 15/hr Che in Construction. 21 SQFT.

53 SQFT 24/hr 22/hr Prices are relatively close between Interior Enterprises, Wright, and Pucker. However, it was interesting to find out that the higher charging companies are mainly targeted toward commercial remodeling and sell less to residential customers. Interior Enterprises will divide projects evenly between both residential and commercial work priced at relatively the same figures. Pucker Interiors is the cheapest in the area, but studies have shown that many customers will usually take on of the moderately priced contractors before they will chose the high or the low. Market Analysis This is a pie graph forecasting how much work will be done in which areas of our expertise. Most of the company time will be spent in the restoration of older homes, with remodeling and refinishing following respectively.

There also is time allotted for having to go back and do rework for something that is not up to the customer's satisfaction. At Interior Enterprises, we strive to commit ourselves to doing the job correctly and completely the first time, but as is with everything, customers will always find something they do not like and that is where our reputation will surpass the rest. As discussed earlier, jobs will mainly be equally split between residential and commercial work. Much of the restoration work will come from residential units. Remodeling will largely come from commercial properties.

For example, new restaurants will require different lay outs, warehouses sometimes need more office space, and jobs along those lines. Market Needs According to ENR magazine, work on residential units is increased by 3% since the year 2000. However, construction has lost approximately 7% of the increase since 2001, mainly due in part to the 9-11 tragedy. As we move away from the recession, people will continue to need work done in their homes and businesses. Our satisfaction guarantee will help to not only establish a good reputation, but will also make loyal customers.

Strategy and Implementation Summary The sale and marketing strategy is fairly simple in our company. We have an initial basis of clientele to get the company started that already have knowledge of our performance. Besides "word of mouth", advertising in local papers, and Internet advertisements will be enough to attract customers. Also, people who have recently bought a new home or business, can receive discounts for using Interior Enterprises as their first contract company. This will produce repeat customers and loyal partners which is a main part of our goal.

Sales Forecast In this industry, as stated in "market needs' " business is up which means there is more of a demand than there is supply. Many of the jobs in the beginning of business are expected to generate a profit of up to 5-6,000 dollars, not including personal labor costs. This is the money that will begin paying interest for the loans, overhead, gas, and other daily expenses. Payroll will be the last to come from the profit budget. James and Michael both understand the meaning of breaking even and this will have to be very carefully executed to not go under in the first months.

Management Summary The management of Interior Enterprises will be as follows: both partners will equally run the business... James Faitz will be in charge of public relations, finding the work and scheduling all jobs. Michael will run the office and the books. Aside from these jobs, both partners will need to work in the field in order to get the work done.

As the company grows, there will be more money to be able to afford office help as well as field laborers. Financial Plan Family and friends will support the $60,000 in startup fees and costs. The $60,000 will cost the company $9600 over the two year loan period in interest. First payments will begin six months after start up and will then extend for eighteen months thereafter until the entire loan is paid back. This will come out to approximately $3900 every month in loan payments.

Income will be approximately $15,000 per month. $4,000 of that will go towards repaying loans, approximately $800 in fuel charges, rental costs are projected at $2500 for larger equipment that may be necessary for certain jobs, i.e. scaffolding, concrete saws, etc. Payroll will come out of this money and 15% will go into company savings. Business Plan for Interior Enterprises "If you don't like it, we " ll redo it".