CONTRACTOR BUSINESS PLAN

CONTRACTOR BUSINESS PLAN

Executive Summary


Twin Bros Development (TBC) programs to become a leading provider of construction and renovation solutions in the regional community. The organization’s overall technique will be based on a continuing improvement process of setting goals, calculating results, and providing reviews to accomplish further growth and progress.
TBC is a organization, with major offices located in the regional community. The organization’s control is highly experienced and qualified: the brothers who will lead the control team have each gathered over 25 decades or so of encounter in from the industry.

Products/Services

Through their decades of encounter, TBC’s entrepreneurs have developed innovative putting in a bid, arranging and materials solutions for some of the most complex construction tasks being done today. The organization will use flexible and completely convenient techniques for a variety of building options.
Owners, designers, construction supervisors, companies, and sub-contractors are required to realize significant savings in labor and material costs by using the organization’s construction techniques and systems. Applications include personal and professional components.

The Market
The housing industry has been growing at a quick pace for several decades. An all-time record was set in 1998, when 886,000 new-site single houses were marketed. That showed a 10% gain from the effective total of 804,000 houses marketed in 1997. Although there was a minor drop in the number from 2003, this makes for an excellent opportunity for future development of the industry.
Twin Bros Development programs to rapidly develop promotion alliances with industry management and engage in new revenue of its solutions to personal and professional contractors. The technique will focus on obtaining city, county, and state and government agreements.
TBC programs to use a network promotion staff, relationship selling, and sub-contractors to reach its target markets. These programs are most appropriate because of your energy and effort to promote, reduced capital requirements, and instant access to established submission programs.

Financial Considerations
We expect to pass the break-even point in the second half of the first season. Despite initial large outlays in money to promote revenue, the organization’s money account is predicted to remain healthy. The organization desires approximately $772,000 in revenue revenue and reasonable net profits by Year 3.

financial

1.1 Mission
Our objective is to be the best associate for our clients, providers and workers. To recognize our perspective, we will endeavor for successful development, functional quality, client care and powerful product placement.

1.2 Objectives

  • To have up to three development tasks recognized within the first season.
  • To have two developing remodelling tasks in improvement by the end of the first season.
  • To identify and purchase our first lease developing by the end of the first season.
  • To accomplish at least 7% benefit by the second season.

1.3 Important factors to Success

We believe our secrets of achievements will be:

  • Using the most modified components and equipment to guarantee quality development tasks for ourselves and our clients.
  • Educating the clients and offering useful advice during the development preparing levels.
  • Helping to validate client’s research about focusing on marketplaces and particular areas.
  • Overseeing the strategies associated with a venture, which can consist of organizing local transport, reservation conferences etc.
  • Assigning the real work to an knowledgeable and certified third-party companies and sub-contractors.

Company Summary

The brothers will invest a total of $90,000 combined ($55,000 and $35,000) in the start-up of the company. Initial cash requirements will total $50,000. Start-up assets total $55,000.

2.1 Start-up Summary

The following table describes our start-up requirements. One of our biggest start-up expenses involves the creation of a website. Ongoing maintenance expenses for the website are included in our Profit and Loss expenses section.

startup

Start-up Funding
Start-up Expenses to Fund $35,000
Start-up Assets to Fund $55,000
Total Funding Required $90,000
Assets
Non-cash Assets from Start-up $25,000
Cash Requirements from Start-up $50,000
Additional Cash Raised $0
Cash Balance on Starting Date $50,000
Total Assets $75,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner 1 $55,000
Owner 2 $35,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $90,000
Loss at Start-up (Start-up Expenses) ($35,000)
Total Capital $55,000
Total Capital and Liabilities $55,000
Total Funding $90,000
Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $100
Brochures $500
Consultants $2,000
Insurance $10,000
Rent (Deposit and 1st Month) $3,000
Work Equipment $6,000
Website Development $10,000
Other $1,400
Total Start-up Expenses $35,000
Start-up Assets
Cash Required $50,000
Other Current Assets $5,000
Long-term Assets $0
Total Assets $55,000
Total Requirements $90,000

2.2 Company Ownership

The company ownership will be shared by the Chairman and Chief Executive Officer in the following percentage amounts:

Chairman = 60%

Chief Executive Officer = 40%

Both owners are veterans in the building industry, each with over 25 years experience.

Products and Services

TBC will sell its solutions to customers in the area of professional development and remodelling. The organization’s staff will design specific development sketches that summarize the routine, work series and the materials needed for developing and remodelling development tasks. Entrepreneurs, designers and companies will realize significant benefits in work and material expenses by using TBC’s personalized performance techniques. TBC’s techniques will offer complete flexibility at cost-effective prices. The sketches that the organization will provide to the specialist will specify the order of set up and penile erection, such as the place of the strongbacks and joists, the place and actual running of the connections, place of components and recommend customers of the highest possible permitted rate of tangible positioning.
A longer-term service will be professional developing lease control. This will include the purchase of professional developing sites or current structures that need remodelling, handling the construction/renovation, then handling the lease of the residence. The organization will also be looking for current residence owners whose qualities need remodelling to upgrade and increase its income potential, with TBC gradually taking over the control of these qualities on part of the owner.
To get into the market with minimum expenses, TBC plans to utilize in the first year of function mainly sub-contractors and separate experts for its developing and remodelling tasks.
Accident avoidance will be the foundation of TBC’s protection dedication. The organization will endeavor to remove expected risks which could result in accidental injuries or illness; at TBC, safe practice will not be affected.

Market Analysis Summary

There were about 792,000 development companies in the United States in 2002: 237,000 were developing development contractors; 60,000 were heavy and municipal technological innovation development or road contractors; and 496,000 were specialised trade companies. Most of these businesses tend to be little, the majority employing less than 10 employees. About 4 out of 5 employees widely-used to by businesses.
Construction offers more opportunities than most other sectors for individuals who want to own and run their own company. The 1.6 million self-employed and overdue family employees in 2002 conducted work directly for home owners or served as companies on little tasks, such as improvements, renovating, and servicing tasks. The amount of self-employment will vary by individual profession in the development deals.
The regional community is growing presently, with many development tasks running both by public and by private sources. Overall company growth over the past seven decades has averaged approximately 9.5% and is expected to continue for at least the next several decades. This comprises an attractive sell for TBC. The organization will be working on office development. This is the quickest growing section of all the professional customers demanding our solutions. The other groups to provide will include developing remodelling along with a section it calls the general classification, to provide other potential professional customers.
One longer-term field of function for the organization will be the promoting of developing content and elements to companies. By slowly developing itself as a first-rate content provider, the organization desires to extend and enhance its position in the regional developing industry. Originally it will focus on purchasing supplies for its own development and remodelling tasks, then use those completed tasks as promotion illustrations to display the quality of materials used and the personalized approach used to design and build them.
The organization programs to develop promotion alliances with industry management and engage in new revenue of its solutions to professional contractors. The marketplace strategy is to take advantage of the organization’s future alliances by obtaining city, nation, and regional government agreements.
TBC also programs to use a network promotion staff, relationship promoting, and sub-contractors to reach its markets. These programs are most appropriate because of your energy and effort to promote, reduced capital requirements, and instant access to established submission programs.

4.1 Market Segmentation

The overall Construction Industry was segmented in 2002 as follows (employment in thousands):

Industry

Employment

Percent

Total, all industries

6,731.7

100.0

Construction of Buildings

1,583.8

23.5

Residential building

807.4

12.0

Nonresidential building construction

776.4

11.5

Special trade contractors

4,217.9

62.7

Building equipment contractors

1,842.5

27.4

Foundation, structure, & building exterior contractors

915.4

13.6

Building finishing contractors

879.5

13.1

Other specialty trade contractors

580.5

8.6

Highway, street, and bridge construction

344.4

5.1

Land subdivision

86.1

1.3

Other heavy and civil engineering construction

119.0

1.8

Special trade contractors

4,217.9

62.7

Building equipment contractors

1,842.5

27.4

Foundation, structure, & building exterior contractors

915.4

13.6

Building finishing contractors

879.5

13.1

Other specialty trade contractors

580.5

8.6

Source: U.S. Department of Labor, Bureau of Labor Statistics (March 9, 2004)

For the purpose of this paper we shall segment our initial targeted market as follows:

  • Office Building Construction
  • Building Facilities Renovation
  • General Construction
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Office building construction 6% 2,517 4,027 4,268 4,524 4,795 17.48%
Building facilities renovation 3% 2,750 2,833 2,917 3,005 3,095 3.00%
General construction 3% 3,264 3,362 3,462 3,567 3,674 3.00%
Total 7.90% 8,531 10,222 10,647 11,096 11,564 7.90%

4.2 Service Business Analysis

The development industry is separated into three major sections. Construction of structures companies, or companies, who develop personal, industrial, professional, and other structures. Large and municipal technological innovation development companies who develop sewers, streets, roadways, connects, channels, and other projects. Specialised business companies who are involved in specific activities such as woodworking, artwork, water system, and electric perform.
Construction usually is done or synchronized by companies, who are dedicated to one type of development, such as personal or professional developing. They take full liability for the complete job, except for specified areas the perform that may be left out from the common agreement. Although companies may do a portion of the perform with their own teams, they often sub-contract most of the perform to heavy development or specialty business companies.
Specialty business companies usually do the perform of only one business, such as artwork, woodworking, or electric perform, or of two or more closely-related deals, such as water system and heating. Beyond suitable their perform to that of the other deals, specialty business companies have no liability for the structure as a whole. They obtain purchases for their perform from companies, designers, or home entrepreneurs. Mending is almost always done on direct order from entrepreneurs, residents, designers, or lease agents.

Twin Bros Construction will concentrate its activity in the following areas:

  • Commercial Building Construction
  • Commercial Building Renovation
  • Buildings Management and Rental
  • Building Materials Supplies

Technique and Execution Summary

TBC programs to use a network promotion power, relationship selling, and sub-contractors to achieve its focus on marketplaces. These programs are most appropriate because of time to promote, reduced capital requirements, and instant access to established submission programs. The entrepreneurs of TBC want to highlight to their prospective buyers that they are more than companies, they are complete development planners.
TBC programs to advertise in magazines, magazines, and radio. Initially a web page with details on the organization entrepreneurs, their development background, and get in touch with details will be available online. Sources to the web page will be mentioned in all other forms of promotion. Channels used to achieve areas include: revenue affiliates, the Internet and mail.
In addition, The table and graph below summarize the organization’s revenue prediction for FY2005-2007. In our revenue predictions, the cost of revenue includes only immediate labor expenses.

5.1 Aggressive Edge

The organization programs to become a leading provider of development solutions in the local community. To accomplish this, TBC will invest often that will pay off in competitive advantages for its clients, for example:
Pre-job conference meetings upon request
Assist in technical or conceptual design
Assist in guidance when other companies are employed
Organize venture guidance facilities and staff
Organize delivery of purchased materials
Furnishing after-market products

5.2 Marketing Strategy

Our internet promotion method the key to our success:
Emphasize our name and unique solutions through promotion, including a Web page of get in touch with details. An amount of $10,000 for the style of the web page has been included in the Start-up expenses with ongoing maintenance expenses approximated monthly.
Focus on commercial building and renovation tasks as our initial and primary focus on marketplaces.
Use completed tasks to display our personalized development venture management software to potential clients.

5.3 Sales Strategy

Sales achievements requires planning. The organization will come up with its revenue strategy and techniques to accomplish revenue achievement by following these steps:

Step 1 – Examining The Company’s Potential: Phase through a organized process to help us create a revenue strategy.
Step 2 – Develop a plan Around Strengths: The description of revenue activity will be examined to produce a report on factors affecting revenue prospective and methods to enhance this prospective.
Step 3 – Develop Tactics: Receive guidance to create a comprehensive strategic strategy to succeed.
Step 4 – Measure Our Past Success: Develop key dimensions that mark the progress of financial reports that guide our growth.

Final Phase – Employ An Action Prepare for Success: Provide revenue agents with a strategic strategy that is arranged with management’s strategic goals.

5.3.1 Sales Forecast

The company will start its operation in the first year by focusing on two areas:

  1. Direct construction work
  2. Renovation of existing buildings

Starting later in the second year and continuing into the third year the following areas of operation will be added:

  • Renting of Industrial Spaces
  • Sale of components and other building materials and components

The following table details the forecasts.

Sales Forecast

Sales Forec

Sales Forecast
Year 1 Year 2 Year 3
Sales
Direct Construction Projects $135,000 $175,000 $218,750
Building Renovations $123,000 $153,750 $192,188
Building Rentals $0 $75,000 $200,000
Sale of Components and Goods $0 $75,000 $150,000
Other $9,000 $10,000 $12,000
Total Sales $267,000 $488,750 $772,938
Direct Cost of Sales Year 1 Year 2 Year 3
All construction work $54,000 $70,000 $87,500
Renovations $49,200 $61,500 $76,875
Rentals $0 $15,000 $40,000
Sale of Components and Goods $0 $30,000 $60,000
Other $9,000 $1,000 $1,200
Subtotal Direct Cost of Sales $112,200 $177,500 $265,575

5.4 Milestones

The objectives desk explains the actions required for the starting of functions. Steps might take longer than approximated, however the entrepreneurs and the employees will do their highest to follow this schedule.

Milestones

Milestones
Milestone Start Date End Date Budget Manager Department
Establishing Permits 1/1/2005 1/15/2005 $500 Chairman Department
Establishing office 1/15/2005 1/20/2005 $500 CEO Department
Preparing Web Site 1/15/2005 2/15/2005 $1,000 Consultant Department
Purchasing work equipment 1/15/2005 2/25/2005 $6,000 CEO Department
Hiring staff 2/1/2005 3/1/2005 $0 Chairman@CEO Department
Purcase Initial Inventory 2/15/2005 3/25/2005 $20,000 Chairman&CEO Department
Receive Stock 3/1/2005 4/1/2005 $500 Staff Department
Start Operation 4/1/2005 4/30/2005 $0 Everybody Department
Totals $28,500

Web Technique Summary

Although TBC plans to use traditional promotion methods to reach potential buyers, the entrepreneurs feel that the On the internet has become a useful source for clients to find out about the organization and for the organization to advertise its services to potential buyers. The development industry was more slowly to be a part of the On the internet group compared to other types of businesses. But now, many regional companies and developing providers have sites.
The price to make a web page has been involved in start-up costs, with web page servicing costs involved in our continuous costs. The preliminary web page will have basic contact details and qualifications about the organization entrepreneurs. Later, it will show details about current tasks as well as finished tasks as illustrations of what the organization can do. Once the developing elements part of the company is well recognized, the web page will increase to include an web shop. At this factor in the company strategy plan, there are no reports for the price of this development and it will need to be investigated and organized for more thoroughly at a later factor.
It will devote some time before the preliminary price expenditure for the web page will pay for itself in potential buyers, but once recognized, it will provide a cost-effective way to connect to new and current clients.
We will discuss our web page address as part of our other promotion press.

6.1 Website Marketing Strategy
We hope to be able to protected hyperlinks to our web page from the regional city and stage of business sites as well as regional construction-related sites that we can affiliate with.

6.2 Development Requirements
We will agreement with a Website designer to originally style the look and details provided on the web page. Our preliminary price for this style also contains the first six months of web page servicing by the web page designer. In Oct, we intend to seek the services of a specialist with experience in web page servicing to repair and maintain the Website internal.
Once the company has developed, we will either increase this individual’s hours from short-term to a full-time place, or we will seek the services of a second short-term specialized place to assist in the re-design and development of the web page. Our long-term goal is to have an web shop for the sale of developing elements and elements.

Management Summary

The organization’s management viewpoint will be depending on liability and common regard. Double Bros Development will maintain an atmosphere and framework that will motivate efficiency and regard for clients and other employees.

TBC will be accountable to its employees and sub-contractors, the men and women who will continue to perform with the organization throughout the state. At TBC everyone will be considered as an individual and the organization will regard their pleasure and identify their benefit. Employees will be motivated to have a sense of security and pleasure in their tasks. Additionally, employees will be free to make recommendations and problems. The organization will manage equivalent opportunity for career, development, and progression for those certified.

TBC employees will be dedicated to:

  • Providing a secure workplace to secure employees, the employees of clients and sub-contractors, and the public.
  • Supplying secure products for clients.
  • Continuously helping the organization’s protection program to prevent injuries and work-related sickness in a modifying workplace.
  • Encouraging employees to join in accident avoidance programs and take personal liability for their own and their co-workers’ secure practice.
  • Regulatory conformity and participation to high protection requirements for our industry.
  • Monitoring locations, implementing secure perform methods, and interacting the organization’s protection performance to employees and other stakeholders.
  • Making protection a value-added service that the organization provides to its clients.

The organization is planning to flourish its employees to add more job superintendents as soon as the number of projects improves. These superintendents will have the following duties:

Direct guidance of all perform at the job sites:

  • Quality Control
  • Scheduling sub-contractors and material supply
  • Verifying and assuring that all perform is done according to plans
  • Insuring that all perform is conducted according to all OSHA guidelines

7.1 Personnel Plan
The employees strategy is in accordance with the two owners to guide and manage the functions that will be handled by themselves. Having been in company for over 25 decades, they have decided to sketch very low incomes for the first two decades to balanced out some of the initial costs in starting the company.
For the first year, the organization will seek the services of short-term and part-time employees and sub-contract with experts and construction experts to perform the variety of projects needed. Also, our shortened construction employees costs are shown in our Revenue Prediction as cost of sales, not aspect of our employees table, since they will not be regular employees of the company.

Personnel Plan
Year 1 Year 2 Year 3
Chairman (Principal Owner) $18,000 $25,000 $60,000
CEO (Secondary Owner) $18,000 $25,000 $60,000
Office Clerk (Temporary Hire) $17,250 $32,000 $32,000
Foreman (Temporary Hire) $21,600 $42,000 $42,000
Technical Employee (Part-time) $9,000 $25,000 $25,000
Total People 5 7 8
Total Payroll $83,850 $149,000 $219,000

7.2 Safety

TBC will be dedicated to performing in a way that defends the safe practice of all workers, clients, and individuals living in the group where it functions. To achieve this, the company will ensure that it is in accordance with current Wellness Management and Work-related Wellness and Protection regulations and will sustain its functions, techniques, technology, and guidelines accordingly.
Each worker will have the liability to fully adhere to recognized guidelines of safety and to execute work in such a way as to avoid accidents to themselves and others. TBC will be very involved about job-site safety and plans to set up a extensive safety program.

Economical Plan

The bros have long-term encounter in the local development industry. They are willing to get intensely in this new organization and their gathered encounter will guarantee success for the new project. It will be important to watch carefully the incomes and regular costs to guarantee that the organization will not experience from lack of sufficient cash to spend money on its functions.

  • We believe a traditional entry and stable growth in the market.
  • We believe a slowly financial improvement depending on originally traditional revenue against maximum costs.
  • We believe there will not be an economic accident that would significantly restrict our focus on marketplace access to their personal high-class discovers.

The following segments explain the financial records for TBC:

8.1 Projected Profit and Loss

Twin Brothers Construction is in the early on of development, thus initial forecasts have only been made in accordance with the revenue forecasts and efficient price control actions in place. Our first season monthly net earnings will become positive by Oct, but we will still close the season with negative profit. This is mainly because of employees costs, which include incomes and the price of revenue for sub-contractors.

Projected Profit and Loss1

Projected Profit and Loss2

Projected Profit and Loss3

Projected Profit and Loss4

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $267,000 $488,750 $772,938
Direct Cost of Sales $112,200 $177,500 $265,575
Other $0 $0 $0
Total Cost of Sales $112,200 $177,500 $265,575
Gross Margin $154,800 $311,250 $507,363
Gross Margin % 57.98% 63.68% 65.64%
Expenses
Payroll $83,850 $149,000 $219,000
Sales and Marketing and Other Expenses $7,500 $10,000 $0
Depreciation $0 $0 $0
Gasoline and oil $3,600 $3,750 $4,800
Telephone $1,500 $2,400 $3,500
Utilities $4,800 $11,250 $10,282
Insurance $9,000 $8,226 $24,000
Rent $7,478 $20,000 $25,000
Payroll Taxes $6,522 $0 $0
Website Maintenance & Support $4,200 $6,000 $9,375
Consultants $6,000 $7,500 $9,000
Advertising $6,000 $1,980 $3,500
Misc. Other Expenses $1,800 $2,500 $267,127
Total Operating Expenses $142,250 $222,606 $575,584
Profit Before Interest and Taxes $12,550 $88,644 ($68,222)
EBITDA $12,550 $88,644 ($68,222)
Interest Expense $625 $7,500 $11,250
Taxes Incurred $3,578 $24,343 $0
Net Profit $8,348 $56,801 ($79,472)
Net Profit/Sales 3.13% 11.62% -10.28%

8.2 Break-even Analysis

During the first year of functions, the break-even monthly product revenue is approximated as shown below. Our average percent varying shows our cost of revenue which covers shortened construction paycheck costs.

Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even $20,446
Assumptions:
Average Percent Variable Cost 42%
Estimated Monthly Fixed Cost $11,854

8.3 Estimated Money Flow

We have set our preliminary Money at $50,000 so that we have versatility in managing any surprising changes in income in the early months to protect costs. The following desk describes are income reports.

Estimated Money Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $267,000 $488,750 $772,938
Subtotal Cash from Operations $267,000 $488,750 $772,938
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $75,000 $0 $75,000
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $342,000 $488,750 $847,938
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $83,850 $149,000 $219,000
Bill Payments $152,974 $281,521 $604,604
Subtotal Spent on Operations $236,824 $430,521 $823,604
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $100,000 $0 $100,000
Dividends $0 $0 $0
Subtotal Cash Spent $336,824 $430,521 $923,604
Net Cash Flow $5,176 $58,229 ($75,667)
Cash Balance $55,176 $113,405 $37,738

8.4 Projected Balance Sheet

The following table outlines our Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $55,176 $113,405 $37,738
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $60,176 $118,405 $42,738
Long-term Assets
Long-term Assets $100,000 $100,000 $200,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $100,000 $100,000 $200,000
Total Assets $160,176 $218,405 $242,738
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $21,828 $23,256 $52,061
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $21,828 $23,256 $52,061
Long-term Liabilities $75,000 $75,000 $150,000
Total Liabilities $96,828 $98,256 $202,061
Paid-in Capital $90,000 $90,000 $90,000
Retained Earnings ($35,000) ($26,652) $30,149
Earnings $8,348 $56,801 ($79,472)
Total Capital $63,348 $120,149 $40,677
Total Liabilities and Capital $160,176 $218,405 $242,738
Net Worth $63,348 $120,149 $40,677

8.5 Business Ratios

The following Ratios table includes industry profile comparison ratios for Commercial and Office Building Contractors (Standard Industry Code #1542).

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 83.05% 58.15% -3.57%
Percent of Total Assets
Other Current Assets 3.12% 2.29% 2.06% 39.87%
Total Current Assets 37.57% 54.21% 17.61% 91.45%
Long-term Assets 62.43% 45.79% 82.39% 8.55%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 13.63% 10.65% 21.45% 34.87%
Long-term Liabilities 46.82% 34.34% 61.79% 15.42%
Total Liabilities 60.45% 44.99% 83.24% 50.29%
Net Worth 39.55% 55.01% 16.76% 49.71%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 57.98% 63.68% 65.64% 17.83%
Selling, General & Administrative Expenses 50.39% 31.80% 27.73% 7.07%
Advertising Expenses 4.95% 6.32% 5.54% 0.25%
Profit Before Interest and Taxes 4.70% 18.14% -8.83% 1.85%
Main Ratios
Current 2.76 5.09 0.82 2.34
Quick 2.76 5.09 0.82 1.12
Total Debt to Total Assets 60.45% 44.99% 83.24% 57.63%
Pre-tax Return on Net Worth 18.83% 67.54% -195.37% 4.01%
Pre-tax Return on Assets 7.45% 37.15% -32.74% 9.46%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 3.13% 11.62% -10.28% n.a
Return on Equity 13.18% 47.28% -195.37% n.a
Activity Ratios
Accounts Payable Turnover 8.01 12.17 12.17 n.a
Payment Days 27 29 22 n.a
Total Asset Turnover 1.67 2.24 3.18 n.a
Debt Ratios
Debt to Net Worth 1.53 0.82 4.97 n.a
Current Liab. to Liab. 0.23 0.24 0.26 n.a
Liquidity Ratios
Net Working Capital $38,348 $95,149 ($9,323) n.a
Interest Coverage 20.08 11.82 -6.06 n.a
Additional Ratios
Assets to Sales 0.60 0.45 0.31 n.a
Current Debt/Total Assets 14% 11% 21% n.a
Acid Test 2.76 5.09 0.82 n.a
Sales/Net Worth 4.21 4.07 19.00 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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