Business Plan Example Hardhats

8/6/2019 Business Plan Example Hardhats

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January, 2001

This sample business plan has been made available to users ofBusiness Plan Pro, businessplanning software published by Palo Alto Software. Our sample plans were developed byexisting companies or new business start-ups as research instruments to determine marketviability, or funding availability. Names, locations and numbers may have been changed, andsubstantial portions of text may have been omitted to preserve confidentiality and proprietaryinformation.

You are welcome to use this plan as a starting point to create your own, but you do not havepermission to reproduce, publish, distribute or even copy this plan as it exists here.

Requests for reprints academic use and other dissemination of this sample plan should be


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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ inthis business plan is confidential; therefore, reader agrees not to disclose it without theexpress written permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in allrespects confidential in nature, other than information which is in the public domain throughother means and that any disclosure or use of same by reader, may cause serious harm ordamage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


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1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Keys To Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2 Company History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3.0 Start-Up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

4.0 Product/Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

5.0 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.3 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.4 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.5 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

6.0 Strategy and Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

6.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

7.0 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

8.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108.2 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

8.3 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128.4 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table of Contents


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1.0 Executive Summary

Hard Hats Construction (HHC) is a medium-sized commercial construction company withoffices in Seattle, Portland, San Francisco, and Los Angeles. HHC has been fortunate to beawarded some initial sizable contracts for several projects among its four locations. Localcontacts and competitive pricing have propelled rapid growth of this new company.

1.1 Mission

Hard Hats Construction aims to provide high quality craftsmanship in the commercialconstruction industry at a very competitive cost. It is the goal of the company to achieve agreater reputation for quality and on-time delivery than the current competitors in the PacificNorthwest region. HHC is committed to delivering on-time completion. HHC maintains highintegrity on all promised timelines and quality assurances.

1.2 Keys To Success

HHC's keys to success are comprised of the following factors:

Many relationships among the commercial real estate community. Impeccable and unique workmanship. Retaining high-quality, on-site management. Ensuring estimates on price and completion dates are as accurate as possible. Track the progress of each construction project to insure the scope cost and schedule

of each is maintained.

2.0 Company Summary

Hard Hats Construction is a start-up managed by two partners who have 30 years of combinedexperience in the commercial construction business. With the extensive contacts that the twopartners have in the commercial real estate business, it is estimated that the company will

have a significant number of contracts within the first three years. These two partnersrepresent sales/management, and finance/administration areas, respectively. The companywill be seeking a $4.2 million Small Business Association (SBA) loan to cover the purchase oflong-term assets, office setup, and cash requirements.

Hard Hats Construction


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2.2 Company History

Jack Daniels and Hank Foreman have known each other for many years. Mr. Daniels beganworking in the construction business immediately out of high school, and has proved himselfas a equipment operator, construction foreman, and project manager. Mr. Foreman, aftergraduating from college with a degree in civil engineering, began work in the constructionbusiness with the North Carolina state highway system. After moving to San Francisco, Mr.Foreman received an MBA and worked for several construction firms in Oregon and NorthernCalifornia as a general manager and financial analyst. Over the years, both individuals realizedthat the Pacific Northwest lacked a commercial construction company that could consistentlyprovide high quality work and on-time delivery. With this in mind, and wishing to capitalize onthis opportunity, the two investors have formed Hard Hats Construction.

3.0 Start-Up Summary

The following chart and table show projected initial start-up costs for the firm.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Expenses Assets Investment Loans

Start-up



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Table: Start-up

Start-up

Requirements

Start-up ExpensesLegal $5,000Office Setup $500,000Rent $12,000Insurance $5,000Utilities $1,200Other $1,000Total Start-up Expense $524,200

Start-up Assets NeededCash Balance on Starting Date $1,500,000Other Short-term Assets $100,000Total Short-term Assets $1,600,000

Long-term Assets $2,500,000Total Assets $4,100,000Total Requirements $4,624,200

Funding

InvestmentInvestor 1 $360,000Investor 2 $30,000Other $0Total Investment $390,000

Short-term LiabilitiesAccounts Payable $1,000Current Borrowing $0Other Short-term Liabilities $0

Subtotal Short-term Liabilities $1,000

Long-term Liabilities $4,233,200Total Liabilities $4,234,200

Loss at Start-up ($524,200)Total Capital ($134,200)Total Capital and Liabilities $4,100,000

4.0 Product/Service Description

HHC provides commercial construction services, with a primary focus on large urban structuredevelopment. This includes the following types of construction:

Office buildings Strip malls

C i l ki l d



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5.0 Market Analysis

The total market demand in the U.S. commercial construction industry sector is huge. It isestimated that the total demand was $173 billion for fiscal year 1999. For the California,Washington, and Oregon area, the total demand is $24.6 billion. Even with HHC's expectedlarge-scale growth due to its contacts and reputation, the market is so large that, by the endof 2003, HHC's projected market share for the Pacific Northwest will only be one quarter ofone percent.

HHC has a focus on meeting the development demand for urban located properties. HHC willhope to bid on government projects as resources permit.

The Market Analysis chart and table show the estimated total number of potential customers inthe three states HHC will be operating in. The majority of the company's revenue lies oncommercial contracts. This market sector provides significant growth and ample projects forthe future.

Commercial Buildings

Government Contracts

Other

Market Analysis (Pie)

Table: Market Analysis

Market AnalysisPotential Customers Growth 2001 2002 2003 2004 2005 CAGRCommercial Buildings 9% 12,000 13,080 14,257 15,540 16,939 9.00%



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5.1 Market Segmentation

HHC will focus on two market sub-segments of the commercial construction industry segment.The first will be the urban projects segment and the second will be the local, state, and federalgovernment contracts segments.

Urban Projects

HHC focuses on construction and wreckage/re-construction projects within urban locations.Large office buildings make up a majority of these projects. HHC desires to establish andmaintain long-term relationships with clients to develop a referral network and future repeatedbusiness. Recent industry trends seem to suggest that this segment will retain a relatively highgrowth rate for the foreseeable future.

Government Contract Projects

Government contract projects make up approximately 15% of revenues. High visibility andcompetitive bids are critical to capture this segment of the market. One of the reasons whythis segment is attractive is its relative stability. Contracts from these sources are notdependent on the current market conditions and will provide revenue even during an economic

downturn.

5.2 Target Market Segment Strategy

HHC will focus on its target market, the large urban areas, by maintaining and increasing itsrelationship base with commercial real estate clientele. By offering a unique and impeccablelevel of workmanship along with competitive costs, HHC will be able to procure and maintain ahealthy level of market share.

5.3 Market Needs

As companies located in downtown urban areas are continually modernizing and growing, thedemand for commercial construction services has steadily increased over the past 20 years.

Currently this growth stands at nine percent. The need for uniquely-savvy commercialconstruction services is significant, as companies seek to maintain a professional image.

5.4 Service Business Analysis



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Because each building is a unique product, the costs are very high relative to other assets, andthe clients need such assets at a specific time, the company's reputation in quality, on-timedelivery, and cost are the crucial elements used in assessing a contractor.

The construction business is also seasonal, with the largest number of contracts arising in thespring and summer. The number starts to decrease in the early fall, and the drop continuesthrough the winter months of December through February, which are the low point during anyyear.

In the Pacific Northwest, the major competitors in the commercial segment are CreeConstruction, Kirtley-Cole, and Wilder Construction. Each of these companies focuses on the

same type of clientele as HHC. However, HHC offers more services, such as paving,road/highway construction, and environmental construction. With the exception of Kirtley-Cole, each of these competitors has such a broad range of customers that a more focusedcompany, such as HHC, will be able to defeat the competition through more attention to clientneeds.

5.5 Competition and Buying Patterns

There are over 550 commercial contractors nationwide. HHC will primarily compete on thebasis of its level of workmanship and relationships among the commercial real estatecommunity.

Large competitors are providers of services to a broad range of commercial, industrial, utility,and institutional customers, typically through principal operating subsidiaries and jointventures. The specialties of our competitors are:

Design, installation, integration, start-up, operation, and maintenance of distributionsystems for electrical power.

Lighting systems. Low-voltage systems, such as fire alarm, security, communications and process control

systems. Voice and data communications systems. Heating, ventilation, air conditioning, refrigeration and clean-room process ventilation

systems.

Plumbing, process, and high-purity piping systems.

Some competitors also provide services needed to support the operation of customers'facilities. These services include:

Site-based operations and maintenance



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Mechanical and electrical construction services and facilities services are typically offereddirectly to corporations, municipalities, and other governmental entities, owners/developersand tenants of buildings. Companies are also providing these services indirectly by acting as

subcontractors to construction managers, general contractors, systems suppliers and othersubcontractors. While the facilities services business is also highly fragmented, a number oflarge corporations, such as Johnson Controls, Inc. and the Fluor Corporation, are engaged inthis field, and there are other companies seeking to consolidate facilities services businesses.

6.0 Strategy and Implementation

HHC will succeed by providing high quality craftsmanship at a competitive cost, within initiallypromised timelines. To implement this strategy, HHC will seek to create a highly efficient,rapidly responsive project implementation and tracking department within each office. Byforming close, long-term ties with its suppliers, this will create sourcing efficiencies that willminimize supply delays. It is planned that each of the four offices will be provided withequipment, maintenance, design, and infrastructure so as to make them each self sufficientprofit centers. A bonus and profit sharing system, with the benefits clearly defined foreveryone, will be used to promote the company's goals at all levels. Finally, the company willseek to institute an ongoing training program to promote the most promising people in thecompany and to retain a standard of excellence in workmanship.

6.1 Competitive Edge

HHC's competitive edges are its book of contacts which make up a healthy referral network,and its competitive cost on projects.

6.2 Marketing Strategy

As the table shows, HHC plans to deliver contract revenue of approximately $40 million in thefirst year, $51 million in the second year, and $65 million in the third year of the plan.

$40,000,000

$50,000,000

$60,000,000

$70,000,000

Commercial Buildings

Sales by Year (Planned)



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Table: Sales Forecast (Planned)

Sales ForecastUnit Sales 2001 2002 2003Commercial Buildings 19 22 25Government Contracts 6 7 9Other 0 0 0Total Unit Sales 25 29 34

Unit Prices 2001 2002 2003Commercial Buildings $2,000,000 $2,200,000 $2,420,000Government Contracts $500,000 $550,000 $605,000Other $0 $0 $0

SalesCommercial Buildings $37,484,763 $47,418,225 $59,984,054Government Contracts $3,050,000 $3,850,000 $5,445,000Other $0 $0 $0Total Sales $40,534,763 $51,268,225 $65,429,054

Direct Unit Costs 2001 2002 2003Commercial Buildings $900,000 $945,000 $992,250Government Contracts $250,000 $262,500 $275,625Other $0 $0 $0

Direct Cost of Sales 2001 2002 2003Commercial Buildings $16,868,143 $20,368,283 $24,594,702Government Contracts $1,525,000 $1,837,500 $2,480,625Other $0 $0 $0Subtotal Direct Cost of Sales $18,393,143 $22,205,783 $27,075,327

7.0 Management Team

Jack Daniels, president, and Hank Foreman, vice president and CFO have 30 combined years

of experience at all levels within the commercial construction industry. Both have extensiveexperience as Lead Foreman, and have been participants in many major commercial projectsof varying types.

7.1 Personnel Plan

As the personnel plan shows, HHC expects to make gradual investments in construction crewpersonnel. We intend to grow gradually, to reduce the chance of becoming too large too quick.The company will expand the crew as contracts require.

The crew of Hard Hats Construction is formulated of individuals with a talent for craftsmanship.The company prides itself on only hiring experienced tradespersons for its crews. The qualityassurance guarantees are provided, not only by the company, but by each individual working



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Table: Personnel (Planned)

Personnel Plan 2001 2002 2003Owners $120,000 $126,000 $132,300Office personnel $1,399,800 $1,469,790 $1,543,280Foremen $240,000 $252,000 $264,600Crew Workers $1,800,000 $1,890,000 $1,984,500Other $0 $0 $0Total Payroll $3,559,800 $3,737,790 $3,924,680

Total Headcount 100 113 127Payroll Burden $533,970 $560,669 $588,702Total Payroll Expenditures $4,093,770 $4,298,459 $4,513,381



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8.0 Financial Plan

HHC expects to raise $390,000 as its own capital, and to borrow $4.2 million guaranteed bythe SBA as a ten-year loan. This provides the bulk of the current financing required forcompany growth.

8.1 Break-even Analysis

HHC's break-even analysis is based on the average of the first-year figures for total sales byproject, and by operating expenses. These are presented as per-project revenue, per-project

cost, and fixed costs. These conservative assumptions make for a more accurate estimate ofreal risk.

($2,000,000)

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

0 2 4 6 8 10

Monthly break-even point

Break-even point = where line intersects with 0

Break-even Analysis

Table: Break-even Analysis

Break-even Analysis:Monthly Units Break-even 2

Monthly Sales Break-even $2,239,971

Assumptions:Average Per-Unit Revenue $1,485,000Average Per-Unit Variable Cost $682,725Estimated Monthly Fixed Cost $1,210,150



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8.2 Projected Profit and Loss

As the Highlights chart shows below, HHC's sales are expected to increase by $10,000 eachyear, with a net gain of $5,000 per year. The following Profit and Loss table demonstratesHHC's expectation of continuing steady growth over the next three years of operation.

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

2001 2002 2003

Sales

Gross Margin

Net Profit

Highlights (Planned)

Table: Profit and Loss (Planned)

Pro Forma Profit and Loss2001 2002 2003

Sales $40,534,763

$51,268,225

$65,429,054

Direct Cost of Sales $18,393,143

$22,205,783

$27,075,327

Other $0 $0 $0------------ ------------ ------------

Total Cost of Sales $18,393,143 $22,205,783 $27,075,327Gross Margin $22,141,61

9$29,062,44

2$38,353,72

8Gross Margin % 54.62% 56.69% 58.62%Operating Expenses:Advertising/Promotion $60,000 $100,000 $130,000Maintenance $600,000 $900,000 $1,200,000New Equipment $7 650 000 $5 000 000 $5 000 000



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Profit Before Interest and Taxes $9,250,049 $17,439,443

$25,646,459

Interest Expense Short-term ($8) ($100) ($100)Interest Expense Long-term $423,320 $403,320 $353,320Taxes Incurred $2,206,684 $4,259,056 $6,323,310Extraordinary Items $0 $0 $0Net Profit $6,620,053 $12,777,16

7$18,969,92

9Net Profit/Sales 16.33% 24.92% 28.99%

8.3 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meetHHC's needs as the business generates sufficient cash flow to support operations. As theconstruction business is seasonal, the company will build up cash reserves during the busysummer months to cover cash flow decreases during the slower winter months.

It is estimated that the company will aggressively seek to pay off it's SBA loan sooner than therequired ten-year period. This is reflected in the higher principle payments in year 2002-2003.

($2,000,000)

($1,000,000)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Net Cash Flow

Cash Balance

Cash (Planned)



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Table: Cash Flow (Planned)

Pro Forma Cash Flow 2001 2002 2003

Cash ReceivedCash from Operations:Cash Sales $40,534,76

3$51,268,22

5$65,429,05

4From Receivables $0 $0 $0

Subtotal Cash from Operations $40,534,763

$51,268,225

$65,429,054

Additional Cash ReceivedExtraordinary Items $0 $0 $0

Sales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of other Short-term Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0Capital Input $0 $0 $0

Subtotal Cash Received $40,534,763

$51,268,225

$65,429,054

Expenditures 2001 2002 2003

Expenditures from Operations:Cash Spent on Costs and Expenses $3,162,094 $3,669,260 $4,564,574Wages, Salaries, Payroll Taxes, etc. $4,093,770 $4,298,459 $4,513,381Payment of Accounts Payable $27,295,87

1$32,836,65

0$40,751,60

1Subtotal Spent on Operations $34,551,73

5$40,804,36

8$49,829,55

7

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $1,000 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $400,000 $600,000Purchase Other Short-term Assets $0 $0 $0Purchase Long-term Assets $2,100,000 $3,600,000 $5,300,000Dividends $669,084 $0 $0

Adjustment for Assets Purchased on Credit ($2,100,000)

($3,600,000)

($5,300,000)

Subtotal Cash Spent $35,221,819

$41,204,368

$50,429,557

Net Cash Flow $5,312,944 $10,063,856

$14,999,497

Cash Balance $6,812,944 $16,876,800

$31,876,297

8.4 Business Ratios

The following table presents important ratios from the construction industry as determined by



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Table: Ratios (Planned)

Ratio Analysis2001 2002 2003 Industry Profile

Sales Growth 0.00% 26.48% 27.62% 2.30%

Percent of Total AssetsAccounts Receivable 0.00% 0.00% 0.00% 24.90%Inventory 0.00% 0.00% 0.00% 23.50%Other Short-term Assets 0.89% 0.42% 0.24% 37.80%Total Short-term Assets 61.65% 71.40% 75.28% 86.20%Long-term Assets 38.35% 28.60% 24.72% 13.80%Total Assets 100.00% 100.00% 100.00% 100.00%

Other Short-term Liabilities 0.00% 0.00% 0.00% 47.40%Subtotal Short-term Liabilities 10.37% 5.68% 3.95% 42.00%Long-term Liabilities 37.75% 16.12% 7.61% 12.90%Total Liabilities 48.12% 21.80% 11.57% 54.90%Net Worth 51.88% 78.20% 88.43% 45.10%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 54.62% 56.69% 58.62% 16.30%Selling, General & Administrative Expenses 38.29% 31.76% 29.63% 8.80%Advertising Expenses 0.15% 0.20% 0.20% 0.30%

Profit Before Interest and Taxes 22.82% 34.02% 39.20% 1.50%

Main RatiosCurrent 5.94 12.58 19.04 1.83Quick 5.94 12.58 19.04 0.92Total Debt to Total Assets 48.12% 21.80% 11.57% 60.30%Pre-tax Return on Net Worth 166.30% 95.96% 69.21% 3.20%Pre-tax Return on Assets 86.27% 75.04% 61.21% 8.10%

Business Vitality Profile 2001 2002 2003 IndustrySales per Employee $405,348 $455,718 $516,970 $0Survival Rate 0.00%

Additional Ratios 2001 2002 2003Net Profit Margin 16.33% 24.92% 28.99% n.aReturn on Equity 113.81% 68.72% 50.50% n.a

Activity RatiosAccounts Receivable Turnover 0.00 0.00 0.00 n.aCollection Days 0 0 0 n.aInventory Turnover 0.00 0.00 0.00 n.aAccounts Payable Turnover 24.45 24.45 24.45 n.aTotal Asset Turnover 3.61 2.16 1.54 n.a

Debt RatiosDebt to Net Worth 0.93 0.28 0.13 n.aShort-term Liab. to Liab. 0.22 0.26 0.34 n.a

Liquidity RatiosNet Working Capital $5,749,969 $15,627,137 $30,297,066 n.aInterest Coverage 21.85 43.25 72.61 n.a



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Appendix Table: Sales Forecast (Planned)

Sales Forecast

Unit Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCommercial Buildings 1 1 1 2 2 2 2 2 2 2 1 1Government Contracts 1 0 0 0 0 1 1 1 1 1 0 0Other 0 0 0 0 0 0 0 0 0 0 0 0Total Unit Sales 2 1 1 2 2 3 3 3 3 3 1 1

Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCommercial Buildings $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000Government Contracts $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000Other $0 $0 $0 $0 $0 $10 $10 $10 $10 $10 $10 $10

SalesCommercial Buildings $2,000,000 $2,300,000 $2,645,000 $3,041,750 $3,498,013 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $2,000,000 $2,000,000Government Contracts $500,000 $0 $0 $0 $0 $500,000 $500,000 $500,000 $500,000 $550,000 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Sales $2,500,000 $2,300,000 $2,645,000 $3,041,750 $3,498,013 $4,500,000 $4,500,000 $4,500,000 $4,500,000 $4,550,000 $2,000,000 $2,000,000

Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCommercial Buildings $900,000.00 $900,000.00 $900,000.00 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000Government Contracts $250,000.00 $250,000.00 $250,000.00 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000Other $0.00 $0.00 $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCommercial Buildings $900,000 $1,035,000 $1,190,250 $1,368,788 $1,574,106 $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000 $900,000 $900,000Government Contracts $250,000 $0 $0 $0 $0 $250,000 $250,000 $250,000 $250,000 $275,000 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Direct Cost of Sales $1,150,000 $1,035,000 $1,190,250 $1,368,788 $1,574,106 $2,050,000 $2,050,000 $2,050,000 $2,050,000 $2,075,000 $900,000 $900,000

Appendix

Page 1


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Appendix Table: Personnel (Planned)

Personnel Plan

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecOwners $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000Office personnel $116,650 $116,650 $116,650 $116,650 $116,650 $116,650 $116,650 $116,650 $116,650 $116,650 $116,650 $116,650Foremen $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000Crew Workers $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Payroll $296,650 $296,650 $296,650 $296,650 $296,650 $296,650 $296,650 $296,650 $296,650 $296,650 $296,650 $296,650

Total Headcount 60 60 60 60 70 70 70 80 80 80 80 100Payroll Burden $44,498 $44,498 $44,498 $44,498 $44,498 $44,498 $44,498 $44,498 $44,498 $44,498 $44,498 $44,498Total Payroll Expenditures $341,148 $341,148 $341,148 $341,148 $341,148 $341,148 $341,148 $341,148 $341,148 $341,148 $341,148 $341,148

Appendix

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Business Plan Example Hardhats

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