Free Welding (Welder) Supply and Service 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.
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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 $100,000 for the development of a welding service and supply business while showcasing the expected financials and operations over the next three years. Welding Service and Supply, Inc. (“the Company”) is a New York based corporation that will provide welding services as well as the distribution of welding supplies to individuals and construction contractors throughout its target market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Company will have two primary revenues streams: welding services and the distribution of welding supplies. The first revenue stream is extremely important to the business’s bottom line as the welding services rendered by the Company are in continued demand despite deleterious changes in the general economy. Additionally, this revenue stream has very high margins and will ensure the profitability of the business on a monthly basis. The second revenue center for the business will be the distribution of welding supplies, gasses, and related items that will be purchased primarily by local contractors (and also individuals that do their own welding). The Company anticipates gross margins of 50% on all welding products sold by the business. The third section of the business plan will further describe the services offered by Welding Service and Supply.
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 business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Welding Service and Supply’s mission is to become the recognized local leader in its targeted market for welding services and distribution of welding products.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the welding and construction 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 contractors and individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Welding Service and Supply, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Welding Service and Supply 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 Welding Service and Supply, 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 Welding Service and Supply. 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 welding services and welding products offered by the business.
3.1 Welding Services
The first revenue center for the business will be welding services that will be performed within the Company’s retail location and on site. At the onset of operations, Management intends to have two staff welders that will provide services for contractors (and individuals from time to time). The Company will bill these high margin services on a per hour basis as well as for metals and products used in conjunction with these services. Welding Service and Supply will only hire welders that have obtained their licensure for welding and have had at least two years experience as welders.
3.2 Sales of Welding Products
The business will provide quality welding supplies and safety gear specifically with use in the construction, plumbing, and oil/gas industries.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the welding and welding supply 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-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
Within the United States, there are approximately 3,000 companies that specialize in welding services (in a contractual capacity). Each year, these businesses collectively generate more than $4 billion dollars per year while employing 35,000 people. Aggregate payrolls in each of the last five years have exceeded $1.2 billion. Among companies that sell welding products and supplies, there are 5,000 businesses that cater to the needs of contractors among all industries. Each year, these distributors generate $11 billion of gross receipts while providing payrolls of $3 billion. This industry employs approximately 60,000 people. Both industries are mature, and they are expected to grow at a rate similar to that of the general economy and housing markets.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
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
Welding Service and Supply 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 business.
5.1 Marketing Objectives
• Establish relationships with construction contractors (plumbers, electricians, and general contractors) throughout 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 advertising.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow Welding Service and Supply to easily contractors 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/products to its target market. Welding Service and Supply will also use an internet based strategy. This is very important as many people seeking local services, such as welders and welding supply companies, now the Internet to conduct their preliminary searches. Mr. Doe will register Welding Service and Supply with online portals so that potential customers can easily reach the business. The Company will also develop its own online website, which will showcase the inventory, services offered, information about the owner, and relevant contact information. At the onset of operations, Mr. Doe will develop several ongoing purchase order and subcontracting relationships with plumbers, electricians, and general contractors that will not only outsource welding services to the business, but will also purchase welding supplies for use in conjunction with their own projects. Mr. Doe will use his extensive contacts within the local construction industry to develop these relationships.
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
• Welding Service and Supply 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 moderately sensitive to the general economy. During times of economic prosperity, new houses (and renovations) will be developed requiring a larger amount of welding services and supplies. During deleterious economic climates, the business’s top line income may be reduced as these services will not have the same level of demand. However, the Company will generate a continuous stream of revenue from contractors that require welding services/products for fixing homes and utility contracting. As such, the business will be able to remain profitable in any economic climate.
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