Free Blacksmith Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $200,000 for the development of a blacksmith contracting business while showcasing the expected financials and operations over the next three years. Blacksmith, Inc. (“the Company”) is a New York based corporation that will provide blacksmithing and blacksmith contracting services to residences and home builders in its targeted market. The Company was founded in 2008 by John Doe.
1.1 Products and Services
As stated above, the carpentry contractor will specialize in the installation of metal products and other parts associated with the practice of blacksmithing. The Company will work primarily and directly for residence/property owners as well as home builders and general contractors that will subcontract work to the Company. The Company’s secondary line of income will come from specially produced blacksmith products that will be forged in the Company’s facilities. The third section of the business plan will further describe the services offered by the Blacksmith.
1.2 The Financing
Mr. Doe is seeking to raise $200,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Blacksmith’s mission is to be a recognized leader and preferred blacksmithing service provider for customers; by delivering unequaled metal products though a highly qualified staff of trained professionals, with total commitment to integrity and excellence.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the blacksmithing industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target homeowners, building owners, and home developers within the target market that have onsite metal working needs.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Blacksmith, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Blacksmith requires $200,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Blacksmith, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Blacksmith. Based on historical numbers, the business could fetch a sales premium of up to 5 to 6 times earnings.
3.0 Products and Services
Below is a description of the services offered by the Blacksmith
3.1 Blacksmithing Services
The Company will primarily provide industrial blacksmith services for other businesses (especially in regards to real estate) that require specialized metal working. Many old homes have old metal worked frames and exteriors that require continuous improvement. As such, the demand for blacksmith services is strong. However, it is imperative that the Company develop relationships with high end real estate contractors and developers as the demand for industrial metal working products and contracting is predominately now among high end homeowners. The Company will also maintain a facility where metal work can be completed on a per piece basis. The Company will also develop ongoing relationships with non-real estate based companies that have specialized metal product requirements. The facility will feature a forge and all tools necessary to produce quality metal pieces.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the blacksmithing industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
According the U.S. Economic Census, blacksmiths and related specialized metal producers generated gross revenues of $18.1 billion dollars. The industry employs more than 175,000 people and outputs gross annual payrolls of $4 billion dollars. The market growth in this industry has been resilient, with its five year growth rate nearing 15%. However, this current growth is expected to taper off (until 2010) as the demand for new housing construction continues to shrink. The issues with the credit markets have caused a significant drop off in the number of new housing starts. One of the primary keys to surviving in the blacksmith (small shop_ industry is to develop relationships with property managers and building owners so that the business can generate a recurring stream of revenue from ongoing maintenance of metal work on properties.
4.3 Customer Profile
The Company anticipates that a majority of its clients will be building owners and property management firms contracting on behalf of building owners. Management expects that the client base will consist of commercial, industrial, and residential clientele. However, Management anticipates that its largest client base will come from the residential arena. As time progresses, the Company may engage more complicated industrial and high-end commercial metal installation and reconstruction projects.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Blacksmith intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Blacksmith.
5.1 Marketing Objectives
• Establish relationships with home builders within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Blacksmith to easily target homeowners, building owners, and home builders within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The business will also seek to develop relationships with property manages and building owners so that the Company is called on to maintain their metal frames and decorative exteriors. These clients are of immense importance to the success of the business as these owners/property managers have ongoing structural (related to framing) maintenance and inspection needs. There are several legal and regulatory statues that require building owners to perform periodic maintenance and inspection. These clients will ensure, that in times of business slowdowns, that the Carpentry Contractor will be able to continue to generate revenues and profits. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the blacksmith services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Blacksmith, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $200,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are sensitive to changes in the overall economy. The demand for blacksmith services usually operates in lockstep with the general housing market and general manufacturing market. As such, during times of economic recession, the Company may experience issues with top line income. However, as this is a contracting based business, the Company can scale back its operations at anytime depending on the demand for services.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis