Free Carpenter 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 free business plan is to raise $100,000 for the development of an carpentry contracting business while showcasing the expected financials and operations over the next three years. The Carpentry Contractor, Inc. (“the Company”) is a New York based corporation that will provide carpentry 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 wood frames, shelves, cabinetry, staircases, banisters, and other parts associated with the practice of carpentry. The Company will work directly for residence/property owners as well as home builders and general contractors that will subcontract work to the Company.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This free business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Carpentry Contractor’s mission is to be a recognized leader and preferred carpentry service provider for customers; by delivering unequaled carpentry services 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 carpentry contracting 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.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Carpentry Contractor, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Carpentry Contractor requires $100,000 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 Carpentry Contractor, 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 Carpentry Contractor. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the services offered by the Carpentry Contractor.
3.1 Carpentry Installations (Framing)
The Company will specialize in engaging large framing installations into new and old buildings. This will be the largest business segment of the Company. Management has developed an extensive pricing model that will allow the business to profit from all aspects of these jobs. Gross profits will be accrued through the sale of labor and consultation services and form the sale of direct job materials. Management anticipates that it will generate extremely high gross margins from these services. The Company will employ its workforce in-house, and will not outsource these jobs to subcontractors.
3.2 Wood Frame Maintenance and Inspection
The Carpentry Contractor will also generate revenue from ongoing maintenance and repair fees from its installations. This revenue will allow the Company to remain profitable regardless of the overall economic climate. As stated before, there are many state and local ordinances that require building and home owners to have regular inspections and maintenance of their properties regarding structural integrity. By virtue of the law, the market will always provide a steady income stream to market agent. As many homes are now being sold (due to the down housing market), the Company is in a position to generate significant fees from the ongoing inspection of homes. In this section of the free business plan, you should further describe the products and services that you intend to offer to your customers. If you need to add more product categories, please consult the instructions that were included in the BizPlanDB.com zip file.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the contracting 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 moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of an economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
According the U.S. Economic Census, carpentry contractors 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%. This trend is expected to continue as the demand for housing increases over time.
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 framing and related carpentry installations.
4.4 Competitive Analysis
This is one of the sections of the free 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 Carpentry Contractor 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 Carpentry Contractor.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Establish relationships with home builders within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Carpentry Contractor 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 buildings and houses. 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.
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 free 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
• The Carpentry Contractor will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 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 not sensitive to changes in the overall economy. Wood framing and carpentry contracting businesses are needed regardless of the economic climate. This is especially true since many states and municipalities have ordinances requiring building owners to have regular inspections and maintenance on their properties. Additionally, as this is a contractor 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