renovation business plan pdf

Remodeling Business Plan Template

Written by Dave Lavinsky

Remodeling Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their remodeling businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Remodeling Business Plan?

A business plan provides a snapshot of your remodeling business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Remodeling Company

If you’re looking to start a Remodeling business, or grow your business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your remodeling business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Remodeling Businesses

With regards to funding, the main sources of funding for a remodeling business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for remodeling businesses.

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How to write a business plan for a remodeling company.

If you want to start a remodeling business or expand your current one, you need a business plan. Below we describe what should be included in each section of a business plan for your remodeling company:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of remodeling business you are operating and the status. For example, are you a startup, do you want to grow your business, or are you operating remodeling businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the remodeling industry. Discuss the type of remodeling business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of remodeling company you are operating.

For example, you might operate one of the following types of remodeling businesses:

• Residential Remodeling : this type of remodeling business focuses on renovations strictly for home-based projects, such as kitchens and bathrooms.
• Design-Build and Whole House Remodeling: this type of remodeling are residential general contractors that are responsible for the architecture, design, and construction management of major home remodeling projects.
• Restoration: Restoration contractors specialize in working with insurance companies, and focus specifically on fire, wind, or water damage to restore the home to its original condition before the occurrence.

In addition to explaining the type of remodeling company you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of projects completed, number of positive reviews, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Remodeling industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the remodeling industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your remodeling company business plan:

• How big is the remodeling industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your remodeling company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners looking to add on or update their home, those who have suffered a recent weather damage occurrence, and new homeowners who have purchased an older home that is in need of updates.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of remodeling company you operate. Clearly, homeowners would respond to different marketing promotions than help those affected by weather-related incidents, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target market. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other remodeling businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes new home builders and large construction general contractors. You need to mention such competition as well.

With regards to direct competition, you want to describe the other remodeling businesses with which you compete. Most likely, your direct competitors will be remodeling businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of remodeling businesses are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide shorter project times?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a remodeling company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of remodeling company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to temodeling, will you provide call design and architecture, project management, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your remodeling company. Document your location and mention how the location will impact your success. For example, is your remodeling business located in a high traffic area, a business district, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your Remodeling marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites 
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your remodeling business, including offering free remodeling quotes, sourcing materials and labor, organizing subcontractors, client communication, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your remodeling business to a new city.  

Management Team

To demonstrate your remodeling business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing remodelings. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your management team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a remodeling businesses or successfully running a construction company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Remodeling business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing your business:

• Cost of contracting licenses and permitting.
• Cost of equipment and supplies.
• Payroll or salaries paid to staff and subcontractors .
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include past remodeling projects or project quotes of client projects you are working on.  

Putting together a business plan for your remodeling business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the remodeling industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful remodeling business.  

Remodeling Business Plan FAQs

What is the easiest way to complete my remodeling business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Remodeling Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of remodeling business you are operating and the status; for example, are you a startup, do you have a remodeling business that you would like to grow, or are you operating a chain of remodeling businesses?

Don’t you wish there was a faster, easier way to finish your Remodeling business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Home Improvement Business Plan

The extensive marketplace and indefinite opportunities for expansion make home improvement a lucrative business venture to undertake.

Anyone can start a business, however, to captivate the highly competitive market space, one needs a comprehensive business plan. It will help you secure the funding and attain the desired growth potential.

Need help writing a business plan for your home improvement business? You’re at the right place. Our home improvement business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Home Improvement Business Plan?

Writing a home improvement business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the home improvement services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of home improvement company you run and the name of it. You may specialize in one of the following home improvement businesses:

• General home improvement business
• Kitchen and bathroom remodeling specialists
• Painting contracting
• Flooring Companies
• Home automation contracting
• Describe the legal structure of your home improvement company, whether it is a sole proprietorship, LLC, partnership, or others.Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established home improvement service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your home improvement business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the home improvement services your business will offer. This list may include services like,

• Design Consultation
• Project planning & management
• Installation and Remodeling Services
• Repair & maintenance

Home improvement products

: List down home improvement products offered by your business. This list may include,

• Building materials
• Hardware & tools
• Fixtures and fittings
• Paint and coatings

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your home improvement plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your home improvement business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your home improvement business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for home improvements, such as hand and power tools, power generators, air compressors, ladders, safety equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your home improvement business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your home improvement services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the home improvement industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your home improvement business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample home improvement business plan will provide an idea for writing a successful home improvement plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our home improvement business plan pdf .

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Frequently asked questions, why do you need a home improvement business plan.

A business plan is an essential tool for anyone looking to start or run a successful home improvement business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your home improvement company.

How to get funding for your home improvement business?

There are several ways to get funding for your home improvement business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your home improvement business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your home improvement business plan and outline your vision as you have in your mind.

What is the easiest way to write your home improvement business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any home improvement business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good home improvement business plan help me secure funding?

Indeed. A well-crafted home improvement business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Renovation Contractor Business Plan Template

Document description.

This renovation contractor business plan template has 35 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our renovation contractor business plan template:

INSERT IMAGE/LOGO COMPANY NAME Business Plan 2011 Owner: INSERT NAME INSERT ADDRESS Phone: Email:

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3,000+ templates & tools to help you start, run & grow your business, all the templates you need to plan, start, organize, manage, finance & grow your business, in one place., templates and tools to manage every aspect of your business., 8 business management modules, in 1 place., document types included.

Renovation Business Plan Template & Guidebook

Are you ready to get your renovation business up and running? With the right plan in place, you can create a thriving business that resonates with customers and provides numerous growth opportunities. The #1 Renovation Business Plan Template & Guidebook is the perfect tool to help you prepare and put together a professional plan for success! This comprehensive guidebook will provide step-by-step instructions, expert tips, and all the necessary resources you need to create your business plan and make sure it is implemented with precision.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Renovation Business [11 Steps]
• 10+ Best & Profitable Renovation Business Ideas [2023]
• 25 Catchy Renovation Business Names:

How to Write a Renovation Business Plan in 7 Steps:

1. describe the purpose of your renovation business..

The first step to writing your business plan is to describe the purpose of your renovation business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a renovation business:

The purpose of our company is to offer high-quality, customer-oriented renovation services that are tailored to meet the individual needs of our clients. We strive to inspire and create vibrant, personalized spaces that reflect the values and lives of our customers while delivering on time and on budget.

2. Products & Services Offered by Your Renovation Business.

The next step is to outline your products and services for your renovation business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your renovation business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your renovation business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your renovation business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a renovation business?

Equipment: Safety gear, power tools, demolition tools, hand saws, screwdrivers, hammers, ladders, drills, sanders, paint mixers, measuring tape. Supplies: Drywall sheets, nails & screws, sealants & caulks, drop cloths and tarps. Permits: Depending on location and scope of work some permits may be required (building permit). Check with local regulations to get information on the specific permit types needed.

5. Management & Organization of Your Renovation Business.

The second part of your renovation business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your renovation business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Renovation Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a renovation business varies based on many different variables, but below are a few different types of startup costs for a renovation business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your renovation business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your renovation business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your renovation business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Renovation Business Plans:

Why do you need a business plan for a renovation business.

A business plan is important for any business, including a renovation business. It will help you create a roadmap for success, set goals and objectives, secure financing, and organize and manage the various aspects of your business. Creating a comprehensive business plan will also ensure that you have a well-defined strategy for reaching your goals and objectives.

Who should you ask for help with your renovation business plan?

It is a good idea to consult a professional business advisor or accountant for help in creating a renovation business plan. A lawyer may also be able to provide valuable advice and guidance on legal issues and regulations that may apply to your business.

Can you write a renovation business plan yourself?

Yes, it is possible to write a renovation business plan yourself by first researching other renovation businesses and the industry, then gathering information about the renovation business you want to start, such as services you plan to offer, your target market and customer base, marketing and pricing strategies, financial projections, and the steps you will take to reach your goals. Once all of that information is compiled, you can use templates or worksheets to organize your data into a comprehensive business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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Remodeling Business Plan Template

Published Dec.21, 2020

Updated Apr.24, 2024

By: Noor Muhammad

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Table of Content

Remodeling business plan for starting your own building company

Whether it’s about increasing one’s property value or boosting one’s lifestyle, remodeling is the way to go. Remodeling is a type of business that can be started with simple services at the residential level. And can be expanded to performing complicated renovations needed by commercial buildings and businesses.

No matter how large or how small your startup is, you would have to create a remodeling business plan for remodeling. Creating a comprehensive business plan before you open a remodeling business will help you in:

• Recognizing the latest trends
• Acquiring the right expertise
• Avoiding troublesome situations
• Efficiently manage finances

To help you in creating a business plan that covers all the essential aspects, we’re providing a sample business plan of a startup ‘Model-It Solutions’.

Executive Summary

2.1 the business.

Model-It Solutions will be a registered, licensed, and insured remodeling business startup based in Buffalo, New York. The business will comprise expert contractors, architects, and engineers to enhance the aesthetic and comfort level of residential as well as commercial structures.

Simply put, we build what you dream!

2.2 Management of Remodeling business

As a business owner, you can’t rest after setting up a remodeling company. You have to be proactive in organizing and analyzing various business operations. In the case of a remodeling business, you need efficient management to complete given projects in time. To make sure that clients get the work done according to their expectations, you have to properly manage communication, finances, and resources among various channels.

2.3 Customers of Remodeling business

Exploring who are going to be your customers is extremely important. Before you search for how to start a remodeling company, you should identify your customers.

The target customers of Model-It Solutions will be the homeowners, construction firms , contractors, and government agencies. To turn them into our potential customers, we will be taking effective steps.

2.4 Business Target

Our major targets are:

• To maintain a customer return rate of 20% throughout our service years
• To maintain a CSAT score of above 85%

Our financial targets to cover our expenses and investments through the profits earned are summarized in this table.

Company Summary

3.1 company owner.

Anna Huston will be the owner of Model-It Solutions. Anna is an MBA. After completing her education at Stanford University, she started working in Skanska.

But 5 years into the service, she decided to start a remodeling business of her own.

3.2 Why the remodeling business is being started

Anna always remained a woman of creative ideas. After serving in a multinational firm, she decided to move to her hometown and serve people with her talent. She realized that the remodeling business has never-ending scope in the years to come as people keep thinking of bringing improvement to their property.

3.3 How the remodeling business will be started

Step1: Plan your business

As the first step, Anna studied various business plan examples for remodeling company to make a business plan for remodeling. From analyzing the market shares to creating a financial plan, Anna put everything on her business plan.

Through this remodeling business plan sample you can study the business’ requirements, balance sheets, personnel plan, and other aspects of Model-It Solutions.

Step2: Define your brand

The second step after creating a remodeling business plan is to get your business registered. You will have to acquire the required licenses and permits. Moreover, this is the time when you have to physically establish your business office.

Step3: Hire the staff

The third step is to conduct interviews and tests to hire the most competent employees.

Step4: Get ready to promote & market

The next step is to promote your services and competitive aspects to reach your target customers. This step also involves the strategy you will adopt to gain and retain your client base.

Step5: Establish a web presence

In this age, people use Google to find the right service provider whenever they need any service. Therefore, it has become essential that you establish a strong social media and web presence.

Anna decided to hire a professional IT expert to create a website for Model-It Solutions. The website will also enable users to make online bookings. Moreover, the website will also keep a record of repeat customers so that Anna could evaluate her business performance time-to-time.

Our startup expenses including costs of all the things we could need for the startup are given below:

Before exploring how to start your own remodeling business, you should decide your services. Deciding your services even before the launch can help you in identifying the ways through which you can facilitate your customers.

To give you a notion of services you can provide as a remodeling firm, we are enlisting the services provided by Model-It Solutions in this remodeling business plan template.

• Full House Remodeling: Our primary service will be to do the whole house remodeling. In this, we will work to redesign an old building to fulfill modern needs such as increasing the living space or making the interior/ exterior more appealing.

Depending on the clients’ needs we will remodel their kitchen, laundry, bath, deck, and more. We also install sidings, flooring, new windows and doors, cabinets, and whatever else our customers would need.

• Handyman Remodeling: This service will include doing minor changes in homes such as installing a modern lighting system, carpeting, painting the walls and cabinets, installing wallpapers, and doing small repairs.
• Historic Home Remodeling: Our third service will be to remodel historic and significant architectural buildings without affecting their historic aspects.
• Individual Structural Re-design: We will offer the services of adding/ removing the bathroom, room, kitchen, and laundry, installing a staircase, modern roofing, etc.

Marketing Analysis of Remodeling Business

Marketing analysis is an important part of a remodeling contractor’s business plan as it enables the business owner to keep pace with the demands of their customers. Through efficient marketing analysis, you can recognize remodeling domains that have high demand. Moreover, this part also gives you a clear idea of your customers before you open a remodeling business.

5.1 Market Trends

According to a report by IBISWorld, remodeling businesses have seen a growth rate of 1.7% in the past five years. More than 455 thousand remodeling companies are operating throughout the United States. The market size, according to the same outlet, is reported to be $97 billion.

The market stats are quite satisfying and the growth rate also indicates that there is still room for other startups to join the venture. If you want to ensure that you get customers from the very beginning of your startup, you should study the market trends of individual locations. That will help you locate an area where competition is low and people who need remodeling service are greater in number.

5.2 Marketing Segmentation

Identifying your customers before investigating how to write a business plan for remodeling is necessary. Dividing the wide populations into distinct groups can help you in recognizing their demands. And thus enabling you to plan ways to fulfill their expectations.

The groups that were identified by Model-It Solutions as potential customers are given below:

5.2.1 Real Estate Owners: Our primary customers will be the people who own any sort of building. They can need our services in two cases:

• They want to enhance the interior design / exterior for themselves.
• They want to remodel the property to increase its value so that it could be sold at a greater price.

In any of the cases, we’ll go to all extents to make sure they are happy and satisfied with our remodeling services. For them, we’ll provide full property remodeling services as well as individual services like installing new cabinets and remodeling the kitchen, etc.

5.2.2 Contractors & Construction Companies: The second group of our target customers will include contractors and construction companies. They will need our services whenever they get some project or even when they are building some structure from scratch.

5.2.3 Government Agencies : Our third category comprises government agencies who will be needing us to remodel structures of historic, artistic, and cultural importance – in a way that their integrity and historic aspects are maintained.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Anna set her business financial and other goals before starting a remodeling company. She realized that by doing so, she would be able to provide a direction to her resources and talent.

The business targets of Model-It Solutions are

• To earn a net profit of $24k per month by the end of the first year
• To lower the costs of our operations by 5% by the end of the 3 years by improving our techniques and methods

5.4 Product Pricing

The prices of our services will be lesser than those of our competitors. It is because we want to capture as many customers as possible in the initial phases of our startup.

Marketing Strategy

A remodeling business plan is incomplete unless you include in it, the ways to capture the attention of your target audience. In this marketing plan for remodeling business we are enlisting the exclusive sales strategy plan of Model-It Solutions.

6.1 Competitive Analysis

Anna realized that hundreds of remodeling firms are already operating in Buffalo. Therefore, she decided to come up with distinct features to outperform her business rivals.

The competitive aspects of Model-It Solutions are:

• We are highly client-oriented. We will always be willing to amend the remodeling designs as per our clients’ wants and needs.
• Our workers are highly skilled and highly collaborative.
• We provide online booking and payment facilities to our customers.
• Our repeat customers will be offered several discounts.
• Our prices are lower than our competitors, so you can easily try our services for a minor/ major task.

6.2 Sales Strategy

To get introduced to our target customers, we will:

• Advertise our startup through local newspapers, Google Local ads service, and social media
• Keep our prices lower than our competitors
• Establish a strong web presence using SEO techniques
• Provide a 25% discount to our repeat customers on every second visit

6.3 Sales Yearly

6.4 Sales Monthly

6.5 Sales Forecast

Personnel plan

While writing a business plan for remodeling, you should also define your employees, their job responsibilities, and requirements. It will enable you to judge the applicants on a definite criterion when you are going through the hiring phase.

7.1 Company Staff

Anna will manage the business herself. However, she’ll hire the following staff:

• 1 Co-Manager
• 1 Architect to design/ remodel complicated projects
• 2 Contractors to implement remodeling designs
• 5 Field Workers to work as laborers
• 1 Accountant to maintain financial records
• 1 Technician to maintain the machinery
• 1 IT Expert to manage the company’s website, online record, and social sites
• 1 Driver to provide transportation

7.2 Average Salary of Employees

Financial plan.

In the last part of your business plan, you should analyze your estimated cash flows. Before you make a remodeling business plan, you should have a clear idea of how much amount you intend to spend on which aspect of your business. Moreover, you should also have a plan to achieve your business goals by optimizing your profits.

In this business plan sample, you can explore the financial projections, break-even analysis, business ratios, gross margins, and other financial estimations done by Model-It Solutions to gauge its progress and business value.

However, while you go through this financial plan, remember, its projections are based on the assumption that there will be no major recession in the coming 5 years.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Remodeling Business Plan Template in pdf

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Remodeling Business Plan

Start your own remodeling business plan

Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Introduction Comgate is a custom mill house specializing in creating architectural woodwork in the form of wall paneling, custom cabinets, and other products for the local residential market. After initial losses and several thin profit years of competitive bidding construction projects, Comgate is creating this business plan in order to bring its mission statement into clearer focus. Prior years were characterized by hectic efforts to bid as many jobs as possible. Margins were thin as pricing policy was “flexible” for fear that there would be insufficient work for production staff.

However, with the growth of sufficient sales, Comgate has the opportunity to  create greater margins, increase efficiency, and improve overall profitability through long-overdue restructuring and focusing on our target market. These changes will assure more accuracy in pricing, billing, and tracking of costs for comparison purposes. Profits are expected to increase.

The Company Comgate’s mission is to compete profitably in the high-end residential market for custom woodwork within the state of Connecticut. It will emphasize custom work of the highest quality, and specialize in the most demanding needs of new and remodeled designer homes in the $3 to $15 million price range.

Products Comgate is engaged in custom architectural woodwork in the form of wall paneling, custom cabinets, molding, pilasters, radius units, circular staircases in special woods, elaborate dressing rooms, specialty kitchen work, etc. The recent addition of state-of-the-art CAD capability will help substantially to increase sales of higher-end products by targeting design professionals who are in a position to influence choices of subcontractors building “trophy” homes costing over $3 million. “Custom” is the key word at Comgate. The average home would not use our products. Custom woodworking of the type carried out by Comgate is made to order only. No finished goods are made up for stock. For this reason, there are rarely very long production runs.

The Market The industry is mature and well-represented. There are many mill shops in the same market area which are focused on specialty areas. One mill shop may concentrate on custom furniture and form special alliances with upholstery shops. Other mill shops may specialize in standard kitchen cabinetry. Comgate is targeting the highest end of the residential market ($3-$15 million homes). This work is less price-sensitive and relatively steady, even during economic valleys. The most critical competitive weapon which the company holds at the moment is its CAD capability. The program is especially formulated to suit the custom woodwork market, and is expected to make substantial in-roads into the chosen highest end residential market. Comgate should be able to set itself apart from the competition, and be able to fully utilize its recently expanded production capacity.

With greater and greater demand for high-end trophy home construction, coupled with the increasing difficulty of attracting and keeping skilled workers, Comgate is moving toward linking its CAD capability with the practices of design professionals that will allow the company to out-source certain simpler parts in a project to other mill shops, while keeping the more demanding work for itself. Being able to present another mill shop with exact detailed CAD drawings, together with precise dimensions and material lists, will allow Comgate to increase sales and profits, and to concentrate on the more challenging custom woodwork products.

Financial Projections The recent addition of over $110,000 in advanced new Computer Numerical Control (CNC) machinery, coupled with the building of an in-house industry-adapted Computer Aided Drafting (CAD) capability, will propel sales to nearly $800,000 by the end of Year 1, and $1.2 million by the end of Year 3. Profits will grow as well. A desire to shorten accounts payable in Year 2 to take advantage of all available trade discounts, together with rising receivables, will result in a short-term need for increased bank lines of credit of approximately $30,000.

1.1 Mission

Comgate’s mission is to compete profitably in the high-end residential market for custom woodwork within the state of Connecticut. We will emphasize on custom work of the highest quality, and specialize in the most demanding needs of new and remodeled designer homes in the $3 to $15 million price range.

1.2 Keys to Success

The most important keys to success in the contractors’ mill shop industry are:

• Avoid bidding projects which are likely to be awarded based primarily on price, projects being undertaken by those who are disreputable (no matter how badly the company needs work), projects which are too big (more than 20% of last year’s sales), or projects which do not fit the company’s niche market and thus unlikely to advance the company’s marketing strategy.
• Accurate take-off and listing.
• A clear understanding between the company and the client, in reference to quality and terms of payment.
• Correct calculation of material (including wastage) and labor required to complete the project.
• Correct application of overhead factors and profit margins, plus any special considerations.
• An administrative system supported by operating procedures that accurately tracks the job costing and compares the job as bid with the actual costs of completing the job. Constant adjustments to bid formulas.
• Reliable production staff that communicates well with administration to assure that the job is produced on time and as bid, making maximum efficient use of labor, materials, and available machinery.

1.3 Objectives

Comgate’s major objectives are:

• Increase production. Given the new machinery and four production staff, full productive capacity has been carefully measured. The goal is to reach, on a monthly basis, 80% of this capacity in the last quarter of Year 1, 85% in Year 2, and 90% in Year 3. This 80% of capacity translates into monthly production of 342 feet of crown molding, 22 pilasters, 54 doors of various grades, and 77 linear feet of cabinets (or some equivalent combination of these items). This will result in monthly sales of $60,816.
• A much simpler task is to maintain site contract workers (six) at present, full employment levels will generate monthly revenue of $34,623 which (after expenses) nets the company $21,794.
• Continue efforts to bring the company’s in-house CAD capability to the attention of more design professionals, especially those in Hartford, New Haven, Stamford, Norwalk, and Shelton, as these are the areas with the greatest concentration of the chosen $3 to $15 million residential homes.
• Join the Connecticut Chapter of the American Society of Interior Designers (ASID) as an industry partner as well as the Connecticut Society of Architects (CSA). Get listed in their resource directories.
• Complete the planned administrative changes to ensure that all work is properly billed, in a timely manner, and to ensure that jobs are correctly tracked so as to facilitate later cost comparisons with bid prices.
• Work to complete an operations manual that has been started.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

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2.1 Company Ownership

Comgate is a limited liability S corporation wholly-owned by Andrew Comins. It was incorporated in 1996.

2.2 Company History

This chapter includes a standard chart and table of the company’s performance over the past few years.

Since a banker may wish to see more in-depth analysis of past performance, a copy of an Excel spreadsheet has been included in Appendix A. Analysis has been provided in five basic areas – Liquidity, Safety, Profitability, Balance Sheet and Operations Management. This compares Comgate’s 1999 financials with the results of all similar mill shops responding to a survey (October, 1999) conducted by the Architectural Woodworking Institute (AWI) in Reston, Virginia.

See Chapter 7.2 Key Financial Indicators for further analysis of past financial results.

Note: appendices A – K have been omitted from this sample plan presentation.

2.3 Company Locations and Facilities

The company is located in New Haven, Ct. in rented facilities. Total area is 2,500 square feet of which about 100 square feet is taken up with administration. Some expansion in the present facilities is possible by renting another 1,600 square feet of adjoining space. This plan assumes that this additional space will be added in January, 2000 at an increase of $2,000 in monthly rent.

A diagram of the production hall showing the location of the various major pieces of machinery is given in Appendix G.

Products and Services

The products used in this plan were limited to only five items to simplify calculations. “Custom” is the key word. The average home would not use these items. Custom woodworking of the type carried out by Comgate is made to order only. No finished goods are made up for stock. For this reason, there are rarely very long production runs.

3.1 Product and Service Description

Comgate is engaged in custom architectural woodwork in the form of wall paneling, custom cabinets, molding, pilasters, etc. Although by nature of the word “custom” the milled products can be totally unique, the vast majority of products milled to date fall into only these few general categories. However, assuming success with the company’s marketing strategy, Comgate will move more up-market within the high-end residential market (see Chapter 4.0, Market Analysis Summary). Rather than produce ordinary high-quality casework, the company, for example, might produce a custom casework item in soft maple with an antiqued crackle finish designed to hide a stereo system. Radius units, circular staircases in special woods, elaborate dressing rooms and kitchens with a lot of curves would be further examples of challenging work that would be in line with stated strategy goals. More ordinary jobs would be accepted only if the jobs fit into the company’s out-sourcing guidelines. The recent addition of state-of-the-art CAD capability will help substantially to increase sales of higher-end products by targeting design professionals who are in a position to influence choices of subcontractors building “trophy” homes costing over $3 million.

3.2 Competitive Comparison

Performing a competitive comparison with products produced by other mill shops is not a simple task as the products are custom. There are no price lists. Financial comparisons can be made, however, with a group of mill shops (see Architectural Woodwork Institute AWI survey results in Appendix A). There are 12 mill shops in the New Haven area including Comgate. There may be one or two that are not members of AWI and therefore not listed in the membership directory. It is also known that some very large construction companies have their own in-house mill shops (see chapter on Industry Participants). Their present combined sales of all products sold to all home markets are approximately $12-$14 million annually. The market study estimates the total trophy home renovation and new construction market in Greater New Haven to be $127 million of which at least 10% is made up of custom wood millwork. This 10% or $12.7 million would seem to indicate that the demand from this market sector alone is equal to the total supply available to all market sectors. The demand clearly outstrips supply in respect to suppliers in New Haven for the demand in the area. Obviously, part of the demand must be being met by suppliers of high-end woodwork located outside New Haven.

Comgate is targeting the highest end of the residential market ($3-$15 million homes). This work is less price-sensitive and relatively steady, even during economic valleys. The most critical competitive weapon which the company holds at the moment is its CAD capability, which was developed by the person who is on contract to the company. The program is especially formulated to suit the custom woodwork market, and is expected to make substantial in-roads into the chosen highest end residential market.

3.3 Sales Literature

At the present time no sales literature is available. Brochures of high quality will only be produced after production capacity has been expanded and success has been reached in filling the stated management teams gaps.

3.4 Fulfillment

All materials used in the company’s production are available from a number of local suppliers (primarily lumber dealers). Sourcing has never been an issue of concern.

3.5 Technology

Technology does play a part in this industry. Major custom woodworking machinery has incorporated time and labor-saving advantages of the computer age. Precision digital settings and the use of lasers make measurement faster and more exact. Comgate has added over $110,000 in new CNC equipment this year, which will allow the company to substantially increase production despite the limitations imposed by its rather small production hall. Comgate’s CAD department is an attractive addition which is already demonstrating success in image-building with interior designers and architects to the wealthy.

3.6 Future Products and Services

In the past, Comgate has produced custom wood products and has bid competitive jobs. The stated marketing direction of the company (see chapter on Target Market Segment Strategy) will move the product line more up-market by producing more challenging items, such as radius units, staircases, elaborate kitchens and libraries in exotic woods, etc. Some of the more mundane sections of a job will be out-sourced to other mill shops (simple paneling, etc.). Any profits from out-sourcing have not been reflected in the financials of this business plan.

Market Analysis Summary how to do a market analysis for your business plan.">

The highest end of the residential market is represented by the new construction and the renovation of “trophy” homes in the $3-$15 million price range. These homes, within the 781/617 area codes, have an annual need for custom woodwork products of approximately $13 million. An estimated further need of $12 million is generated by the same price range of private homes located outside the immediate area but within 60 miles of New Haven.

4.1 Market Segmentation

• Baby Boomers: This includes anyone born between 1945 and 1964, comprising almost 45% of the American population. With large incomes and not enough time, Baby Boomers prefer to call contractors rather than to do it themselves. This is the strongest market for home improvements, according to NARI. This represents the greatest potential for high-end custom woodwork, primarily Baby Boomers with homes in the $3-$15 million category (referred to as “trophy homes”).
• Mature Market: These are individuals aged 55 and older who need their residences to be more efficient and comfortable to allow them to move around more easily. According to the American Association of Retired Persons (AARP), 75% of mature people own their own homes, and 83% do not want to move. The Joint Center reports that the typical elderly homeowner is twice as likely to undertake a replacement project than a younger homeowner. This sector does represent a market for Comgate, but only among the very wealthy, and considerably limited in respect to the Baby Boomers.
• Generation X: These are individuals born between 1965 and 1980 that tend to take their remodeling one step at a time due to lack of money, according to NARI. The Generation X-ers are, to a large extent, do-it-yourselfers. This group does not represent any market potential for Comgate.

According to U.S. Census figures, there are 127,080 new single family homes built annually in the Northeast, of which 15,500 were in Connecticut, and of those, 5,670 were in the New Haven area. With average single family home prices at $222,000 in 1999 (all U.S.), and probably closer to $350,000 or more in the Greater New Haven area, this translates into an annual expenditure of over $1.9 billion for new New Haven single family homes.

U.S. Census also reports that almost $14 billion is spent annually on improvements to existing single family homes in the East. Assuming the same percentage share for the New Haven area this means that 4.5%, or $627 million, was spent on major renovation excluding repair and maintenance. The above statistics indicate that for every dollar spent on new homes, $.31 is spent on major renovations to existing homes.

Since the major market for Comgate’s services is custom woodwork to very expensive single family homes in the price range of $3-$15 million, it is useful to know how many new homes are built annually in that price range in the greater New Haven area, and how many existing homes in that price range engage in major renovations. Research indicates over 300 single family homes in the New Haven area (area codes 781 and 617) in this price range actually changed hands in the past two years. Since major renovations generally are undertaken at the time of purchase, this would suggest that at least 150 homes valued at about $4.5 million each elect to have major renovations each year. $200,000 per renovation is not an unreasonable estimate for a renovation of a property in that price range. That amounts to annual renovations of the most expensive homes in the greater New Haven area of approximately $30 million (150 homes x $200,000). If we use the statistic of $.31 spent on existing home renovations for every dollar spent on new homes, that would indicate that $96 million is annually being spent on construction of new trophy homes in this price range in the New Haven area.

Another subsidiary market is the new trophy homes being built outside of New Haven (60 mile radius), as well as the major renovations for homes in the same price range. For example, 44 homes in the same price range ($3-$15 million) changed hands in Stanford alone during the past two years.

The Market Analysis Table shown below has omitted three zeros in all the numbers, for space reasons.

4.2 Target Market Segment Strategy

In line with Comgate’s mission statement, the target market is trophy homes, both new construction as well as renovations. The results of our market study indicate that the total high-end trophy home market need for custom woodworking in the New Haven area outstrips the supply from available local custom woodworking suppliers. To compete in this market sector, Comgate has chosen a special service which is proving successful with design professionals. This CAD service is explained more fully in the chapter on Market Needs. All three high-end market sectors are in need of the custom millwork products supplied by Comgate. All of these construction projects, whether new construction or major renovation, will involve design professionals of the highest standards and clients with deep pockets. With properties of this caliber, the work is relatively recession-proof. These clients will have requests for custom woodworking products that are most challenging and thus most suited to Comgate’s expressed mission statement and abilities.

4.2.1 Market Trends

With greater and greater demand for high-end trophy home construction, coupled with the increasing difficulty of attracting and keeping skilled workers, Comgate’s move toward linking its CAD capability with the practices of design professionals will allow the company to out-source certain simpler parts in a project to other mill shops, while keeping the more demanding work for themselves. Being able to present another mill shop with exact detailed CAD drawings, together with precise dimensions and material lists, will allow Comgate to increase sales and profits, and to concentrate on the more challenging custom woodwork products.

4.2.2 Market Growth

Market growth of 2.4% is based on the actual growth rate in building permits in the East experienced in years 1997-99 as tabulated by the U.S. Census.

4.2.3 Market Needs

The new CAD service offered by Comgate evolved as a result of the inefficiencies which the company has observed in the past. One major problem in the past deals with blue-prints. Whichever construction company won the bid would send the blue-prints, let’s say for the kitchen, to custom wood mill shops to bid over. The mill shop will do its “take-offs” from the blue-prints and bid to do the kitchen. Later, the winner of the bid finds that the designed kitchen cabinets will not fit into the room. This results in expensive problem-solving and meetings with architects. The architects themselves do not understand the way in which woodworkers build cabinets, so often the architects’ design concepts are made more difficult (and thus more expensive) to realize. The new CAD service offered by Comgate circumvents all of this. By working together with the architect at the initial stages, the architect only needs to do the inexpensive design concepts. The actual details of how the cabinet is structurally designed, as well as the exact measurements to fit the room, are left to Comgate’s CAD person. The architect can save money on drafting, save again by eliminating the usual problem-solving and re-drafting. The client of the architect also saves by insuring that the woodwork is done in a way that suits the latest woodworking methods without interfering with the design concept — the look of the final product. A further advantage is that Comgate saves the expense of on-site measuring.

4.3 Service Business Analysis

4.3.1 distributing a service.

The traditional pattern in this industry is for: an architect to draft the plans according to the specifications, copies given to contractors to bid on, and elements, such as mill work, subcontracted to mill shops who also make competitive bids.

Through Comgate’s marketing strategy, this traditional distribution pattern will be altered to the benefit of everyone concerned. The architect will save on the design drafting (and redrafting), the contractor does not have to worry about change orders to the same degree, because he can feel confident that the desired woodwork will fit the room as built, and Comgate will not have to be as price-sensitive in getting the work. Comgate’s connection to the design professional will assure that the work goes to him rather than being sent to competitive bidding.

4.3.2 Business Participants

The table below lists major competitors in our immediate area. Appendix B is a map marked with red dots indicating the location of mill shops in the Greater New Haven area. None of these mill shops has the same level of CAD capability and few have singled out the trophy home market as their prime focus.

Competing Mill Shops

Strategy and Implementation Summary

Inroads into the stated trophy home market in the Hartford area will be made by contacting and selling Comgate’s new CAD features to those architects and interior designers who are best known for residential work in this price range ($3-$15 million), by sticking to the company’s newly formulated costing/pricing method, and following through on the recent administrative control and reporting changes.

5.1 Sales Strategy

After having successfully priced the job to insure an adequate profit margin after all expenses, it is important to close and bring back the sale. The person to do this is the owner himself, Andrew Comins. To free up his time to network with design professionals it is important that he be able to rely on his office manager to administer properly in his absence (see the chapter on Management Team) and he must be able to rely on a production manager for proper flow in the plant (see Chapter on Management Team Gaps).

The most important aspects to be considered in closing the sale are:

• Clearly stating in the proposal the scope of the work.
• Clearly stating when: both must understand what the schedule is.
• Both parties have to agree to the terms of payment.
• The price must be clear, as well as what is included and what is not.

The proposal must get there on time and get to the right place. A log should be kept of all bidding efforts. Follow up is necessary.

5.1.1 Sales Forecast

There are two sources of revenue:

Plant Produced Sales: This revenue comes from manufacturing custom cabinetry, paneling, and other wood products. To project revenue we have chosen several representative items that make up the majority of plant produced sales. The materials for each of these items have been carefully calculated, as has the labor hours going into each item. The material inputs will show up in the direct cost of each item. The labor hours information allow us to determine how many items we can produce with given manpower and machinery. The cost of the labor is calculated in detail in the Personnel Plan Table. As this plan is being written in October, 2000, the actual sales revenue from January through September will be averaged to arrive at a monthly amount for that period. Projected sales will begin as of October, 2000. The representative items chosen are:

• 250 linear feet of Crown Molding
• 16 Pilasters
• 20 Haunched passage doors (paint grade)
• 20 Haunched passage doors (stain grade)
• 45 linear feet of cabinets

The Costing/Pricing Work-up Sheet in Appendix C will break down, in detail, the various materials going into each of these items, as well as the labor hours for each. Labor break-downs for each phase in the production of these items is also included. For example, the Crown Molding (250 linear ft.) requires a total of 4.25 man hours and only one material. The Pilasters however needs two materials in different quantities. Since 4 man hours per pilaster are needed (see labor break-down sheet), 16 pilasters will require a total of 64 man hours. These 64 man hours have been split equally between the two materials (8/4″ Mahogany and the 4/4″ Mahogany). From the totals in Appendix C the total labor input for the above items is 390.4 hours. Since production is limited to 160 manhours per week (8,000 manhours per year), these above-listed items can only be produced 20.5 times in one year. Total yearly full production, assuming only these items are produced, would be:

• 5,125 linear feet of Crown Molding
• 328 Pilasters
• 410 Haunched passage doors (paint grade)
• 410 Haunched passage doors (stain grade)
• 922.5 linear feet of cabinets

These items have been projected in the attached table on a monthly basis beginning October, 2000 and on a yearly basis for years 2001 and 2002 assuming 80% of full production October-December, 2000, 85% in 2001, and 90% of full production efficiency in year 2002.

Contract Site Labor: Revenue is also derived from providing carpenters/installers at certain work sites. There are six site workers listed with an “S” next to their name. Below are listed the all-in costs of these workers as well as the rates that they are billed out at.

Total net revenue from Site Services comes to $89,924.80 annually assuming a full 40 hour week for 49 weeks. For projection purposes we have chosen “hours” as the unit. The average sales price is $35.33. The average cost is $27.69.

5.2 Marketing Strategy

The marketing strategy, as explained in other chapters, is to leverage Comgate’s special CAD capability, as it relates specifically to custom woodworking, with design professionals (interior designers and architects) to increase the type of high-end work taken on, as well as to “jump” the bidding process by creating a situation in which Comgate must be given the bid. A good place to ask for the names of the interior designers with the best reputations is to speak to the designer workrooms. These are the workrooms that carry out the work connected with interior designers’ concepts for window treatments, fabrics, etc.

The best known of these workrooms in and around New Haven are:

• Fall Creek Sewing.
• Andrew Smith.
• Fortress Lines.
• Jones & Jones.
• S. Brandt & Company.
• Tapper Works.

A polling of these workshops indicates the following interior designers are often sought by trophy home owners:

** Names have been removed for confidentiality.

Architects are another important group of design professionals that work in concert with interior designers on trophy homes. The latest edition of the Directory of Architectural Firms in Connecticut is available to the members of the CSA. The directory lists 750 architectural firms in Connecticut. Details of each company are given alphabetically, including location and phone numbers as well as the type of work the firm specializes in. The back of the directory gives a listing based on areas of practice. The category of “Residential Work” lists about 300 firms. Although an architectural firm is likely to have work outside of the city where it is located, it would be a good start to find out which of those 300 residential architects are located in those areas of New Haven with the greatest concentration of trophy homes.

5.2.1 Positioning Statement

Comgate’s CAD capability is an especially strong marketing tool. It allows the mill shop to build the desired items using the most practical methods of construction without interfering with the design concept. It automatically calculates the exact dimensions of each element and produces exact material lists. These features allow simpler elements to be subcontracted to other mill shops, thus allowing the company’s productive capacity to be used to produce the higher end elements.

By pushing this capability with architects who have reputations for designing homes in the $3-$15 million bracket, Comgate will position itself to receive the gravy of this price-insensitive, recession-proof work, while at the same time building an image for the highest quality, most-challenging work.

5.2.2 Pricing Strategy

Simply stated, the goal of the bidding process is to price to get the job while still making an adequate profit. To facilitate this, a dual mark-up system has been developed. One mark-up for materials and another for labor. The reason for the separate mark-ups is that in custom woodwork the mix, or ratio, of material and labor changes with every job. Therefore, a system is needed that accommodates the variations. The system is fairly straightforward and uncomplicated and, once set up, it reduces the bidding process’ complexity. The system requires two separate overhead factors to be computed–an administrative overhead and a factory overhead.

Administrative Overhead The concept is founded on the belief that everything which is sold, whether goods or services, must pay its fair share of the administrative overhead. Whether we use material in manufacturing a product, or merely resell it as is without further processing, it should still make a contribution. So a multiplier factor is calculated and applied to everything sold including direct labor, plant-processed materials, “buy-outs” (out-sourcing to another mill shop), installations, etc.

The administrative overhead mark-up factor is arrived at by dividing the total administrative overhead expenses by the total of materials and direct labor. Appendix B shows the calculations based on expenses in 1999. Total administrative overheads were $123,821. Total direct labor and materials came to $324,495. The resulting .3816 translates into a multiplier factor of 1.3816. By applying this to everything sold it means that the company is setting aside 27.6% of every dollar to cover the cost of bidding, the cost of paperwork to execute the job, the cost of collecting the money, the cost of interest if the money’s late, etc.

Plant Overhead This mark-up is only applied to labor. It’s calculated by dividing plant overhead costs by direct labor. The resulting .837 when added to the .3816 (administrative overhead) builds to a multiplier factor of 2.218 (1.00 + .3816 + .837 = 2.218). The reasoning here is that an item sold that involves plant-processed labor should contribute to defray a portion of those plant overhead expenses (machinery depreciation, insurance, machinery maintenance, etc.) that would not be there if everything were merely sold without any value-added milling by factory millworkers.

With application of the above-described overhead factors, pricing is now reduced to calculating the total materials (including wastage) involved in a job, and projecting the labor input in hours needed to complete the job. Assisting in these calculations is a Job Costing Library which lists the actual materials and the actual labor input involved in similar past jobs. (See a sample section of the Job Costing Library in Appendix C.)

Performing the “take-offs” from blue prints and converting this to materials and labor hours needed to complete the job requires skill, but once this has been done, those figures can be passed on to an administrative assistant who can apply the overhead mark-ups to materials and labor. One can also check the latest prices of the materials as well as the up-dated all-in man-hour rates. (See Appendix D for a schematic of all-in wage rates.)

Up to this point in the pricing process all that we have done is to calculate the actual all-in costs of both materials and labor and added on formulas to cover overhead costs–both administrative and plant.  It is a necessary stage in the pricing process to plan in, and insist on, a profit margin. Although industry averages are less since averages include those suffering losses, successful woodworkers do attain a 15% sustainable net profit. Adding 15% to anticipated costs is not going to achieve a net 15% result (15 divided by 115 is only 13%). The best way is to divide total anticipated costs (after application of the two overhead factors) by .85.

To facilitate the costing/pricing, an Excel spreadsheet has been designed to incorporate the process including the two overhead factors as well as the 15% profit mark-up. Appendix E is a sample of the Costing/Pricing Work-up Sheet for a representative job. This spreadsheet also has a database capability. It allows the user to access statistics to facilitate material bulk purchasing, etc.

5.2.3 Promotion Strategy

With the introduction of an in-house CAD capability that is especially designed for the mill shop industry, the best way to spread the word is to directly contact the architects and interior designers. Only one or two trophy homes in the targeted $3-$15 million range can keep a mill shop fully occupied for months. Advertising is not expected to become necessary. However, joining the ASID and the CSA as an “Industry Partner” is an excellent way to network with design professionals. Also it would be helpful to get listed in the Resource Directories of each of these organizations.

5.3 Strategic Alliances

It is planned that Comgate will establish strategic alliances with several mill shops who will mutually profit from an association. Exact drawings and cut lists can be given to other mill shops when subcontracting the more mundane items, leaving the more challenging work for Comgate. Even the data on disk to program CNC equipment at the subcontracting mill shop can accompany the exact drawings, allowing a fast and accurate set up. Profits from work performed through these alliances has not been considered in preparing this business plan, but when the plan is updated in 2001, there should be enough historical experience with these alliances to include this aspect in projections.

5.4 Milestones

The table below outlines the strategic milestones for Comgate for the coming years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Like other mill shops with less than $1 million in sales, the owner of Comgate has had to wear several hats and shuttle back and forth between production, site visits, the office, and client calls. The company is in the process of making major strides in establishing a more classical managerial structure, as the following chapters will explain.

6.1 Organizational Structure

Ideally, the owner of the mill shop should have three major functions:

• Identify and find customers.
• Maintain proper balance of people, plant and machines.
• Innovate, and set policies.

A plant manager should be responsible to see that the production staff and the available machinery work together at maximum efficiency. He needs to anticipate questions, answer them, and keep production rolling with a minimum of waste and a minimum of down-time. The CEO is now doing that when he is available.

An office manager should handle all the administration and coordinate well between the plant manager and the CEO. A need for the plant manager is well recognized by management, but a certain financial position needs to be reached to afford him. This position is planned to start in April, 2001, which will help substantially to free up needed time for the CEO to carry out the above listed major duties.

The office manager has, until recently, been performing the bookkeeping. This has taken up too much of his time, plus he is not trained in accounting practices. It has taken until July to get tax filing done, and at a heavy cost in accountant’s charges. This has since been handed over to J&R Associates. Procedures have been set up which will serve as a beginning for a procedures manual. A courier is sent each week from J&R Associates to track all costs associated with a job. This is absolutely essential because without this reliable feedback, one can never be sure how accurate the job cost estimates are when putting together a bid. The handling of inventory is also dealt with in the procedures as well as paperwork flow to insure correctness in billing. A costing/pricing scheme has been devised to assure correct all-in costing and to insure that a fair profit margin is built in to the pricing.

The recent addition of a contract CAD man, has helped to ease the work load on the CEO, as there are fewer questions from production staff as a result of the very accurate drawings and cut lists.

6.2 Management Team

The management team, after the addition of the production manager in April, 2001, should be complete until a higher level of sales has been reached. At a level of approximately $1.5 million in sales, Comgate should add a project manager.

6.3 Management Team Gaps

At the present time, a production manager is needed. Without him, the CEO cannot devote enough of his time to CEO issues (see Chapter on Organization Structure). It would have been ideal to promote one of the production staff to that position, but none of the present four workers is suitable for the position. It is hoped that a production manager can be found by April, 2001. His salary and benefits have been provided for in the projections.

Another gap is project manager. The company needs to grow to be able to afford him. The project manager would follow everything from the point of “hand-off” (once the bid has been won) through conclusion. He would confer with architects, handle change orders, examine every facet: warranties, retainage, final payment, punch lists, access to premises, lifts and hoists, check everything. At the moment the CEO is doing this as best he can with the many other matters on his plate. The position of project manager becomes increasingly important when the company has multiple projects.

6.4 Personnel Plan

Milling Costs Personnel: As of the writing of this plan, sales orders are strong and all four production staff are expected to be fully employed on a 40-hour/week basis. For the period of January through September, an average monthly labor amount will be entered based on the totals from the financials as of the end of September. A production manager/project manager has been projected beginning April, 2001, at an annual salary of $60,000 (see Chapter on Management Team Gaps).

Sales and Marketing: Andrew Comins’s salary of $40,000 is entered here although he is general manager/owner. He will continue to wear several hats until a plant manager and a project manager can be found.

General and Administrative Personnel: The office manager, **Stacy Greer, earns $34,320 per year.

** Names have been changed for confidentiality.

Financial Plan investor-ready personnel plan .">

Due to initial losses, resulting in a need to resort to shareholder loans, cash flow pressures caused accounts payable to be stretched out to 30 days and more. The financial projections have reduced this to 10 days for the year 2001 and beyond, in hopes of filling this gap with increased bank lines of credit. This would allow the company to take advantage of trade discounts. Failing to do so is expensive, as it becomes the most expensive form of credit (approximately 36% p.a.).

7.1 Important Assumptions

Personnel Burden: The hourly basic wage rates were totalled ($241.73) as were the total after FICA, State Unemployment, FUTA and health benefits ($291.66). The difference came to 21%. The actual burden of 21.95% is from the September, 2000 financials.

Interest Rates: Looking at the various rates in effect (see Cash flow Section), 9% was taken as an average rate.

Payment Days: In order to show the cash flow effect we elected to assume 10 days so as to take advantage of all trade discounts. This change from 30 days to 10 days will take place in 2001. The cost of not taking the discounts is nearly 36% per annum. It is preferred to finance negative cash flow through bank lines of credit.

Collection Days: Collection days, after netting out down-payments with orders, average approximately 30 days.

Tax Rate: The tax rate reflects the present sliding scale:

7.2 Break-even Analysis

The break-even chart is not suitable for multiple custom woodwork items. However, if we use pilasters as an example, the unit price is $316.96 and the unit cost is $44.09 (material cost). If we assume that all plant labor is fixed, whether there is work for the staff or not, it would be necessary to produce and sell 136 pilasters per month. According to best estimates, one pilaster takes four man hours. With 8,000 man hours per year (666 man hours monthly) it is possible to produce 167 pilasters. So, to break even on pilasters alone it would be necessary to work at 81% of capacity.

If, instead, we take cabinets, and use a cost price of $57.66 per Linear Foot LF and a price of $194.76 per LF it would be necessary to produce 270 linear feet of cabinets monthly. At 1.65 man hours per LF, it would be possible to produce 404 linear feet. Break-even on cabinets needs 67% of capacity.

Doors (cope and stick) cost $130.53 per unit and sell for $592.35. Each door takes five hours to produce. It would require 80 doors to break even, out of a maximum capacity of 133 doors. This would be 60% of capacity to break even.

All other things being equal, based on the above analysis, it would be more profitable to produce doors than cabinets, and likewise more profitable to produce cabinets than pilasters.

In the calculations above, it has been assumed that there is no problem in keeping the six site carpenters working full time. The net profit from this activity has been deducted from fixed expenses. If, instead, we assume that the company makes no money on-site services, the monthly expenses would be $89,925 higher. In this case, it would take 96 doors monthly, rather than only 80, to break even.

7.3 Key Financial Indicators

As mentioned in the chapter on Company History, a more in-depth analysis of past performance is listed on an Excel spreadsheet in Appendix A. The top two rows summarize 1999 and 1998 financial sheet information in an easy to read format. These categories of information are then used to calculate important ratios to compare Comgate results will industry averages. The ratios have been organized into five main groups: Liquidity, Safety, Profitability, Balance Sheet, and Operations Management. Brief comments are made below concerning these ratio comparisons:

Liquidity: Liquidity decreased from 1.27 in 1998 to 1.19, due entirely to a large project on Orange. The large commercial contractor involved took far longer to pay than was anticipated. The project has since been completed and all outstandings have been settled. Despite the 1.19 current ratio for 1999, it is still superior to the average of 1.01 for all AWI members and fairly close to those members in the Northeast Region (1.24).

Safety: The debt-to-equity ratios have been calculated reflecting certain adjustments. Owner loans have been removed from long-term liabilities and placed into equity. The Debt/Equity ratio for 1999, of 11 to 1, is far higher than the average. It reflects the early start-up losses; however, the leverage improved remarkably from 1998, when it was 25 to 1.

Profitability: The gross margins are substantially higher than the average, which reflects the higher-end nature of the company’s work. Operating profit saw a healthy increase from 6.12% in 1998, to 9.67% in 1999. This is not as good as the operating results of the top 25% of AWI members (22.4%) but still more than double the margin for all AWI members (4.2%).

Balance Sheet: The ratio of Sales to Net Fixed Assets is a good measure of efficiency. Comgate’s ratio of 9.53 is not only a substantial increase over 1998, but is nearly equal to the top 25% of all AWI member results. Obviously the very high operating results to equity ratio merely reflects the narrow equity situation. The same can be said for the fixed assets to equity ratio. The A/R turnover (in days) as well as the A/P days turnover were slowed by the above-mentioned large Orange project. The low inventory days turnover reflects the proportionally lower material content of the high-end business.

Operations Management: The most remarkable ratio in this group of ratios is the very high percentage of non-plant produced sales to total sales. This reflects the revenue from outside on-site subcontracted carpenters and installers.

7.4 Projected Profit and Loss

Other Expenses (CoGS): There are several expenses that are included here:

• Shop supplies run about $300 per month.
• Fire insurance for machinery runs $209.55 monthly.
• Storage space rental costs $105 monthly.
• Factory rental is $1,958 monthly of which 90% ($1,762) is allocated to CoGS. The remaining $196/month is charged to General and Administrative expenses. Beginning in January, we assume a doubling of rental space will be made available at a monthly cost of $2,000.
• Repairs and maintenance comes to about $272 per month.
• The company truck costs approximately $200 monthly.
• Utilities (electricity, waste removal, and security) come to $267 monthly. They are applied 90% to plant ($240 monthly).The other 10% ($27 monthly) is charge to General and Administrative expenses.
• Take-offs and listing, the CAD contract employee, costs $70/hr and works 35 hours weekly. Most of this expense (60%) can be charged to the client and is a wash. The remainder ($49,000) is split 60% for Plant ($29,400) which is $2,450/month starting in September 2000.
• The remaining $19,600 is charged to General and Administrative expenses.

These CoGS expenses come to to $3,088.55 (January-August) and $5,538.55 per month after August, 2000. Beginning January, 2001 the total grows to $7,538 due to the increased space and rent.

Sales and Marketing Expenses:

• Advertising and promotional expenses have not been projected because production is now at 100% capacity and is expected to stay that way due to the marketing strategy of approaching designers and architects directly, stressing the company’s CAD strengths.

General & Administrative:

• Bank charges of $40 monthly.

7.5 Projected Cash Flow

Fixed Assets:

In the first nine months of 2000, $110,412 was added in new machinery and equipment.

Increase (decrease) Other Liabilities:

At the end of 1999, there was $49,884 outstanding in shareholder loans. After netting out loans due from shareholders amounting to $20,396, loans from shareholders were reduced by $8,126.23. No further changes in years 2001 and 2002.

Change in Other Short-term assets:

At the end of 1999, there were only $1,465 in other short-term assets. This has been increased due to pre-paid insurance, and reflected in April, 2000 of $2,855. No change in 2001 or 2002.

Long-term Borrowing (repayment):

• Applebee Leasing extended a secured loan in July to purchase fixed assets. This loan is repayable in 36 equal monthly installments of $1,816.07. A schedule is not available with breakdown of principle and interest. Assume principle repayment of $6,000 during 2000 $18,000 during 2001 and $24,000 during 2002.
• Due to a change in ownership from Fleet Bank to Chase Bank, there has been some confusion as to the amounts of various loans. The borrower’s understanding of facilities is:
• $50,000 line of credit (fully outstanding) @ 2% over prime, about half of a seven-year term-loan (originally $64,000 in September, 1996) being repaid monthly at $1,268.80 (interest@ 8.25% and principle), and the remainder of a five-year term loan (originally $20,000 as of June, 1999) being repaid $437.90 monthly (interest @ 11.15% and principle).
• Based on interim financial statements as of September, 2000, $10,974 of the term loans have been repaid since the end of 1999. We will assume principle repayments of $1,200 monthly throughout 2000, 2001, 2002, until this confusion has been clarified.

7.6 Projected Balance Sheet

The following table represents Comgate’s balance sheet.

7.7 Business Ratios

The table below shows some of the more important ratios. The table also includes business industry data for Standard Information Code (SIC) 2541, wood partitions and fixtures.

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A business plan includes a wide array of relevant data and metrics. It must be presented in a structured format, to make it easy to read and digest.

When we designed our business plan for a home renovation company , we made sure to set it up correctly.

The structure is divided into 5 sections: Opportunity, Project, Market Research, Strategy, and Finances.

1. Market Opportunity

The opening section is referred to as "Market Opportunity."

Discover important data and figures about the home renovation market in this section, helping you understand market trends and consumer preferences.

We keep this section updated to ensure fresh data.

2. Project Presentation

In the "Project" section, you can present your home renovation company, describing the types of renovations you specialize in (e.g., kitchen, bathroom, whole-house), design and remodeling expertise, quality materials, project management, client collaboration, and the unique value proposition that transforms houses into dream homes with functional and aesthetic enhancements.

At the end of this section, provide a brief introduction about yourself and your expertise in home renovations.

Explain your commitment to transforming living spaces, your range of renovation services, and how you plan to provide exceptional home renovation solutions to clients. Highlight your attention to detail, your skilled team of contractors, and your dedication to delivering beautiful and functional homes that exceed clients' expectations through your home renovation company.

Our business plan has written material. Adapt it to suit your concept precisely.

3. Market Research

Then, we reach the "Market Research" section.

This section describes the target audience for your home renovation company.

It includes a comprehensive analysis of competitors in the home renovation industry and emphasizes your company's unique renovation services and competitive advantages.

A tailored SWOT analysis is provided as well.

4. Strategy

Within the "Strategy" section, a 3-year development plan is outlined, specifying the necessary initiatives to make your home renovation company highly profitable.

Additionally, you'll find a marketing strategy, a risk management approach, and a Business Model Canvas tailored to a home renovation company in this section.

5. Finances

Finally, you'll arrive at the "Finances" section, which presents the financial metrics and calculations for your company.

How to make the Executive Summary for a home renovation company?

The Executive Summary provides a condensed preview of the business plan of your home renovation company.

Keep it short and clear, with a maximum of 2 pages. Focus on the key aspects.

The purpose of this document is to make the reader want to read your business plan.

In the Executive Summary of your home renovation company, provide answers to these questions: what is your company about? who is your target market? are there other home renovation companies in the area? what funding do you require ?

How to do the market analysis for a home renovation company?

The market study of your home renovation company helps you understand external factors such as homeowner demands for remodeling services, competition within the construction industry, and emerging trends in home improvement.

By conducting a thorough market study, a home renovation company can understand homeowner preferences, offer professional renovation services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased project contracts, and a prominent position in the local home renovation industry.

Here is what we've put in the "Market Research" section of our business plan for a home renovation company :

• interesting data points and market insights about home renovation projects, including popular remodeling trends, home improvement costs, and ROI
• a list of potential audiences for a home renovation company
• the competitive analysis
• the competitive advantages to target for a home renovation company
• the SWOT analysis for a home renovation company

The key points of the business plan for a home renovation company

What's the business model of a home renovation company, business model of a home renovation company.

A home renovation company involves improving or remodeling existing residential properties. The business model can vary depending on the scope and scale of the projects undertaken. Revenue is generated through project contracts or fees charged based on the complexity of renovations and materials used.

The business model focuses on assessing client needs, providing design and construction expertise, sourcing quality materials, managing project timelines and budgets, and ensuring client satisfaction with the completed renovations. Success depends on building a strong reputation, establishing relationships with suppliers and subcontractors, delivering high-quality work, and effective project management.

Business model vs Business plan

Please don't mix up the terms "business plan" and "business model."

A business model is a blueprint for how a company operates and makes money.

In a business plan, you articulate your business model through a framework known as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a home renovation company .

How do you identify the market segments of a home renovation company?

Segmenting the market for your home renovation company involves dividing your potential customers into different groups based on their renovation needs, project scope, and preferences.

These categories may include factors such as kitchen renovations, bathroom renovations, full house remodeling, or customers seeking specific design styles or features (e.g., eco-friendly, smart home technology).

By segmenting your market, you can offer a range of renovation services and solutions that cater to each segment's specific requirements. For example, you might specialize in kitchen renovations and offer design and installation services for customers looking to transform their kitchen space, provide bathroom remodeling solutions that cater to different design preferences and functional needs, offer comprehensive services for customers seeking full house renovations or additions, or focus on incorporating eco-friendly and sustainable features or smart home technology into renovation projects.

Market segmentation allows you to effectively target your marketing efforts, showcase your expertise in specific renovation areas, and deliver personalized and high-quality renovation experiences that meet the unique needs and preferences of each customer segment.

In the business plan for a home renovation company , you will find a complete market segmentation that allows you to identify your potential customers effectively.

How to conduct a competitor analysis for a home renovation company?

Undoubtedly, you won't be the only home renovation company in your market. There are other contractors and companies offering renovation services to homeowners.

Include a thorough evaluation of your competitors' strengths and weaknesses in your business plan to gain an edge.

Recognize their weaknesses (such as poor project planning, inadequate contractor management, or limited construction expertise).

Why should you focus on these elements? Well, these weaknesses can hinder the success of home renovation projects. By addressing these aspects, you can offer comprehensive renovation services, provide skilled contractors and designers, and deliver quality workmanship and timely project completion, establishing your home renovation company as a trusted and preferred choice for transforming and enhancing living spaces.

It's what we call competitive advantages—focus on nurturing them to gain a competitive edge.

Here are some examples of competitive advantages for a home renovation company: innovative and creative designs, efficient project management, skilled and reliable contractors, quality materials and finishes, personalized customer service, positive client reviews and satisfaction, on-time and on-budget completion.

You will find all these elements in our business plan for a home renovation company .

How to draft a SWOT analysis for a home improvement company?

A SWOT analysis can help identify internal strengths and weaknesses, as well as external opportunities and threats, to create a plan for successful home renovation.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a home renovation company .

The strengths for a home renovation company

S represents Strengths in SWOT, referring to the company's internal factors that contribute to its positive performance.

For a home renovation company, potential strengths could include budgeting, organization, communication, and problem-solving.

The weaknesses for a home renovation company

When we use the "W," we mean Weaknesses, which are the areas or aspects of the company that can be improved.

For a home renovation company, potential weaknesses could include inadequate budgeting, lack of skilled labor, inadequate materials, and poor communication.

The opportunities for a home renovation company

When we refer to the "O" in SWOT, we mean Opportunities, which are the external chances or possibilities for the company's success.

In the case of a home renovation company, potential opportunities could include replacing outdated appliances, remodeling a kitchen or bathroom, adding a deck or patio, and installing new flooring.

The threats for a home renovation company

The letter "T" in SWOT signifies Threats, highlighting the potential roadblocks or harmful factors that the company needs to consider.

When it comes to a home renovation company, potential threats could include budget overruns, delays in construction, unsatisfactory workmanship, and unexpected costs.

How to elaborate a marketing strategy for a home improvement company?

Creating a marketing strategy allows entrepreneurs to identify their unique selling points and communicate them effectively to their target audience.

A home improvement company can connect with homeowners in need of renovation or remodeling services by developing an effective marketing approach that showcases the company's expertise in various home improvement projects, high-quality craftsmanship, and satisfied customer testimonials.

Homeowners won't choose your home improvement company without effective marketing; showcasing your expertise in renovations, quality craftsmanship, and customer satisfaction is necessary.

Have you considered implementing creative marketing initiatives for your home improvement company? Organize home renovation seminars or DIY workshops, showcase before-and-after transformations on your website or social media, and partner with local home decor or hardware stores for cross-promotion.

Don't stress if you're not naturally inclined towards marketing and communication.

Actually, there is an exhaustive marketing strategy, tailored to the industry, in our business plan for a home renovation company .

How to build a solid financial plan for a home improvement company?

A solid business plan must include financial data to provide an accurate assessment of the company's potential success.

When constructing your business plan, it is crucial to incorporate revenue projections for your home renovation company.

The revenue forecast needs to be coherent and easily understandable.

Our financial plan for a home renovation company is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your home renovation company. Make certain to include all expenses without exception - you can find them all listed in our financial plan!

The break-even analysis is an essential component of your financial plan, as it provides an indication of whether your home renovation company will be profitable or not.

Make this exercise 10x easier by using our financial plan for a home renovation company .

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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

• Custom home building/design build
• Home remodeling and renovation
• Project Management
• Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

• Friendly and knowledgeable contractors who are able to take any project from concept to reality.
• Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

• Trucks: $40,000
• Construction equipment, supplies, and materials: $100,000
• Advertising agency in charge of promotions: $10,000
• Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
• Working capital: $10,000

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

• Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
• Located a small office space to have a physical address for the company as well as a receptionist.
• Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
• Began pricing out costs for trucks and necessary construction equipment.
• Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

• Households in search of home remodeling services
• Landowners who would like to build homes on their lots
• Architects who have clients that need home building or remodeling services
• Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

• Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
• Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

• Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
• Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
• Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
• Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
• Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Monthly Average Contract Amount: $20,000
• Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

• How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

Other Business Plan Templates

Food Truck Business Plan Template

Event Venue Business Plan Template

Kitchen & Bathroom Remodelling Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful kitchen & bathroom remodeling business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your kitchen & bathroom remodeling business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a kitchen & bathroom remodeling business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your kitchen & bathroom remodeling business concept into reality. Let’s dive in!

Our kitchen and bathroom remodeling business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the company’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of the Kitchen & Bathroom Remodeling business concept, market analysis , management team, and financial strategy.
• Services & Location: Describes the range of remodeling services offered, including custom cabinetry, countertops, and appliance installation, and explains the strategic location benefits.
• Service List & Pricing: Lists the remodeling services provided, detailing the customization options and pricing structure .
• Key Stats: Shares industry size , growth trends, and relevant statistics for the remodeling market.
• Key Trends: Highlights recent trends affecting kitchen and bathroom remodeling, such as luxury finishes and smart appliances.
• Key Competitors : Analyzes main competitors in the vicinity and differentiates the business from them.
• SWOT: Conducts a strengths, weaknesses, opportunities, and threats analysis specific to kitchen and bathroom remodeling.
• Marketing Plan : Outlines strategies for attracting new customers and retaining existing ones, including showcasing past project portfolios and leveraging social media.
• Timeline : Sets out key milestones and objectives from business launch through the first year of operation.
• Management: Introduces the management team, detailing their experience in remodeling, design expertise, and roles within the business.
• Financial Plan: Forecasts the business’s 5-year financial performance, covering revenue projections, expense breakdowns, funding requirements, and financial statements (profit and loss, cash flow, balance sheet).

Kitchen & Bathroom Remodeling Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces the business plan for your Kitchen & Bathroom Remodeling company, offering a succinct overview of your company and its services. It should outline your market positioning, the array of remodeling services you provide, its location, and size, and a summary of daily operations.

This section should also delve into how your remodeling business will fit into the local market, including the number of direct competitors in the area, identifying who they are, along your company’s unique selling points that set it apart from these competitors.

Additionally, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success.

A summary of your financial projections, including revenue and profits over the next five years, should also be presented here to provide a clear picture of your company’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

 Offer a wide range of kitchen and bathroom remodeling services, including custom cabinetry, modern fixtures, and complete renovations. Emphasize quality craftsmanship and personalized design solutions.

Outline a clear pricing structure that reflects the value and quality of your services, from budget-friendly options to luxury remodels. Mention unique offerings like eco-friendly options, smart technology integration, and flexible financing or warranty programs to enhance customer satisfaction and loyalty.

Market Overview

Industry size & growth.

In the Market Overview of your Kitchen & Bathroom Remodeling business plan, start by evaluating the size of the remodeling industry and its growth prospects. This analysis is crucial for understanding the market’s breadth and pinpointing opportunities for expansion.

Key Market Trends

Proceed to discuss recent trends in the remodeling market, such as the growing consumer interest in smart home technology, energy-efficient appliances, and custom, sustainable materials. Highlight the demand for functional yet aesthetically pleasing spaces that cater to homeowners’ specific needs and preferences, alongside the increasing popularity of eco-conscious and technology-integrated remodeling solutions.

Key Competitors

Then, explore the competitive landscape, which includes a spectrum of remodeling companies from high-end custom design firms to budget-conscious contractors, as well as the DIY home improvement trend. Highlight what sets your business apart, whether it’s through unparalleled craftsmanship, innovative design solutions, or expertise in sustainable and smart home renovations.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for your Kitchen & Bathroom Remodeling business, highlighting Strengths (such as high-quality craftsmanship and customized design solutions), Weaknesses (including dependency on suppliers or market fluctuations), Opportunities (for instance, the rising trend in home renovations and smart homes), and Threats (such as economic downturns that may reduce home improvement spending).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising in home improvement magazines and websites, promotional offers for first-time clients, a strong online presence with before-and-after project galleries, and participation in local home shows and community events.

Finally, create a detailed timeline that outlines key milestones for your business’s launch, marketing initiatives, customer base growth, and expansion goals, ensuring the business progresses with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the kitchen & bathroom remodeling business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the kitchen & bathroom remodeling business towards its financial and operational goals.

For your kitchen & bathroom remodeling business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your kitchen & bathroom remodeling business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs , and capital expenditures.

For your kitchen & bathroom remodeling business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

Download Simple Business Plan Template - PDF

Lean Business Plan Template PDF

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

Download Lean Business Plan Template - PDF

Simple 30-60-90 Day Business Plan Template PDF

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

Download Simple 30-60-90 Day Business Plan Template

PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

Download One-Page Business Plan Template

If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

Download One-Page Lean Business Plan Template - PDF

One-Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

Download One-Page 30-60-90 Day Business Plan Template

For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

Download Simple Small Business Plan Template

Fill-In-the-Blank Small Business Plan Template PDF

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

Download Fill-In-the-Blank Small Business Plan Template - PDF

One-Page Small Business Plan Template PDF

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

Download Nonprofit Business Plan Template - PDF

One-Page Business Plan for Nonprofit Organization PDF 

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

Download Sample Business Plan Outline Template - PDF

Sample Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

Download Business Financial Plan Template

PDF  | Smartsheet

For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”

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How to Start a Remodeling Business

Your remodeling business might be a one person show where you personally complete kitchen, bathroom, bedroom remodels or additions to homes and businesses. In another business model, you could serve as a general contractor and hire employees or subcontractors to help complete jobs in a more efficient manner.

Learn how to start your own Remodeling Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a remodeling business by following these 10 steps:

• Plan your Remodeling Business
• Form your Remodeling Business into a Legal Entity
• Register your Remodeling Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Remodeling Business
• Get the Necessary Permits & Licenses for your Remodeling Business
• Get Remodeling Business Insurance
• Define your Remodeling Business Brand
• Create your Remodeling Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your remodeling business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Remodeling Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your remodeling business?

Business name generator, what are the costs involved in opening a remodeling business.

If you are simply offering up your own skills and time as a part-time remodeler, the start-up cost will be around $50,000 to $75,000 as you will need a complete set of tools, a vehicle for transporting tools and supplies, and the proper licensing and insurance in order to operate in your state and locality.  If you are looking to enter the business world offering major renovation services, expect to have start-up capital of $250,000 to $500,000 as you'll need to be able to purchase your first few orders of materials and hire staff before your customer pays you for the completed job.

What are the ongoing expenses for a remodeling business?

You will need to maintain accounts with material suppliers, pay your crews on a regular basis, and maintain vehicles and tools. Fortunately, your office space can be fairly minimal.

Who is the target market?

Home and business owners who are seeking to have their property professionally renovated and are willing to pay a fair price for labor and materials. Large businesses that need renovating may have more space, allowing you to charge more for your work.

How does a remodeling business make money?

Your remodeling business generates income by charging your customers for labor and materials for their renovation. You are responsible for providing your own tools, as part of your trade.  However paint, hardware, lumber, flooring, and other supplies are purchased by you at wholesale prices and then you charge your customer for them at a premium price.  Your hourly labor costs will be determined by level of expertise, the type of job that is being completed, and local competitive rates.

Your rates will vary depending on size and complexity of the job. Rates vary from $45/hr to $85/hr and can be lower or higher. You will want to complete an extensive competitive comparison to ensure your client is getting a good value. The average renovation project costs between $3,000 and $15,000.

How much profit can a remodeling business make?

The typical markup on materials is 15%.  Income for a one-man company can be around $20,000 a year working part-time while a large contractor with multiple crews can see income in the seven figure range when they complete multiple large jobs over the year.

How can you make your business more profitable?

Ensuring quality work that completely satisfies your customer is the number one means of generating more business, and therefore additional profit. You will need to ensure the quality control and customer service are always of top priority for your successful remodeling business.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your remodeling business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a remodeling business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

Remodeling businesses should require clients to sign a services agreement before starting a new project.  This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Remodeling Business needs and how much it will cost you by reading our guide Business Insurance for Remodeling Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a remodeling business

Direct Mail campaigns can help your name appear in front of local homeowners. Ask to sponsor a do-it-yourself workshop at your local big box store.  Make sure to add your company name on the side of all the vehicles that appear at the job site and where you order supplies. Consider joining groups such as the National Association of Home Builders or the National Association of the Remodeling Industry to add their advertising power to your own.

How to keep customers coming back

Potential clients love to see an example of the work they might hire you to complete.  Position signs in front of homes that you are working on or have recently completed. Ask satisfied customers if you can add pictures of their new kitchen to your website and social media. Encourage customer feedback, as their word will carry far more weight than a simple advertisement. Be willing to return to the jobsite to complete touch ups for up to a year, as that happy customer is the most likely individual who will hire you again. Always provide professionally prepared contracts and business cards and make sure your phones are answered in a businesslike manner.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

A remodeling business is a great investment for the person who has a passion for home improvement, with extensive knowledge of multiple construction skills and enjoys a background of business and accounting.  Dedication to completing work thoroughly with close attention to detail while providing superior customer service is also required.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a remodeling business?

Whether you simply manage the business or are swinging a hammer with the crew, you might be expected to:

• Participate in demolition, installation of flooring, walls, and cabinetry
• Source supplies and materials for the job site
• Maintain open communication channels with the customer, updating them on progress
• Schedule your reliable crews and subcontractors in a time-efficient manner
• Maintain proper licensing to operate in your state
• Train new crew members to maintain your high standards
• Complete punch lists after you finish a job
• Establish relationships with tool and materials vendors/suppliers
• Maintain payroll records/pay your crews on a timely basis
• Collect payment from customers
• Create contracts for customer approval
• Promote your business to generate new jobs for the future

What are some skills and experiences that will help you build a successful remodeling business?

Your remodeling business will find greater success when you have a wide range of skills under your belt as the owner/operator. These may include, but are not limited to:

• Solid understanding and experience in construction techniques with regards to kitchen, bathrooms, siding, windows, additions, and flooring
• Appreciation and knowledge of quality materials and their fair pricing structure
• Good accounting knowledge to maintain accurate records for accounts payable/receivable and payroll requirements
• Excellent time management that lines up additional crews to complete the next phase of construction without waiting
• Good ability to establish and maintain positive relationships with customers by providing clear and honest communication throughout the remodel
• Ability to identify experienced crew members you are hiring as subcontractors or as employees
• Knowledge of safety standards, permits, and licenses required to operate a safe workplace

What is the growth potential for a remodeling business?

Some individuals work on a part-time basis by themselves completing renovations for local homeowners.  However, with the right business model in place you can be responsible for finishing interiors of apartment buildings, entire subdivisions, and large commercial spaces. The quality of your work and responsiveness of service will build your reputation, helping to land larger contracts able to expand your small business into a major general contracting business.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a remodeling business?

You will need to network with other contractors and potential customers. Attend the next Home Show and rent a booth as an exhibitor to get your name out and about. Ask to leave your flyer and business contact at local hardware/DIY stores and reach out to local plumbers, electricians, and even general contractors who may need help on their next big job. Word of mouth is often responsible for finding your next customer, so you'll need to work hard to build a positive reputation.

How and when to build a team

As soon as you cannot keep up with demand, start putting out feelers for qualified carpenters and installers.  Do not hesitate to complete background checks and ask for references from verifiable sources.

Useful Links

Industry opportunities.

• Membership in the National Association of the Remodeling Industry
• Remodeling Franchise Opportunity with DreamMaker Bath & Kitchen Remodeling Franchise

Real World Examples

• Wel-Vant construction & Remodeling
• Remodeling Business With Specialty in Remodeling Homes for Seniors and Physically Challenged People
• Luxury Remodels Company

Further Reading

• Tips for Moving Forward With Your Remodeling Business
• Hiring People You Can Trust With Your Business

Have a Question? Leave a Comment!

Property Maintenance and Renovation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Real Estate Sector

Are you about starting a property maintenance & renovation business? If YES, here’s a complete sample property maintenance & renovation business plan template & feasibility report you can use for FREE to raise money. Okay, so we have considered all the requirements for starting a property maintenance & renovation business.

We also took it further by analyzing and drafting a sample property maintenance & renovation marketing plan template backed up by actionable guerrilla marketing ideas for property maintenance & renovation businesses. So let’s proceed to the business planning section.

Why Start a Property Maintenance & Renovation Business?

As a property manager, your core business responsibility is to maintain and renovate building facilities and to liaise with landlords, tenants and in some cases various contractors. For you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenant relationships.

As a property manager, it is your responsibility to create efficient and effective protocols that will make you relate well with your clients (landlords, tenants and contractors).

For example, you are going to be responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due. If you can get that aspect of your job/business right, you will surely enjoy your business.

Interestingly, the minimum educational requirement for anyone that wants to start his or her own property management cum property maintenance and renovation business is a High School Diploma and hands on the job experience.

It is one of the many businesses that an individual can start with from his or her home and basically with just a business card. Since property management business is all about managing property/properties on behalf of your clients, then you may not need a huge financial base to be able to launch the business except you just want to start pretty big.

The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to money (profits) that is why it is important to assemble a team of experts to work with if you want to be successful with your property maintenance and renovation company.

You can hardly run this type of business alone especially if you want to operate a standard property maintenance and renovation business as against running a one man show.

Below is a sample property maintenance and renovation company business plan template that will help you successfully launch your own business;

A Sample Property Maintenance and Renovation Company Business Plan Template

1. industry overview.

Property maintenance and renovation or better still property management business which is a subset of the real estate industry is perhaps one of the easiest and affordable real estate businesses to start; it is basically about lease contracting or accepting rent using legal documents approved for the area in which the property is located.

In a nutshell, property management companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners.

In the united states, states such as Texas, New York and Colorado make it mandatory for property management companies to be licensed real estate brokers if they are going to be involved in collecting rent, listing properties for rent or helping negotiate leases and doing inspections as required by their business.

Although a property manager may be a licensed real estate salesperson but generally they must be working under a licensed real estate broker. A few states such as Idaho, Maine and Vermont do not require property managers to have real estate licenses.

Other states such as Montana, Oregon and South Carolina, allow property managers to work under a property management license rather than a broker’s license. Washington State requires property managers to have a State Real Estate License if they do not own the property.

Landlords who manage their own property are not required by the law to have a real estate license in many states; however, they must at least have a business license to rent out their own home. It is only landlords who do not live close to the rental property that may be required by local government to hire the services of a property maintenance and renovation company.

As a property manager, your core business responsibility is to liaise with landlords, tenants and in some cases various contractors; and for you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenant relationship.

Property maintenance and renovation companies are also involved in mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

In fact, there are numerous aspects of the profession and some of them include helping clients in managing the accounts and finances of the real estate properties and participating in or initiating litigation with tenants, contractors and insurance agencies.

No doubt, if an aspiring entrepreneur who intends starting his or her own property maintenance and renovation business has the right connections, networks, managerial skills, and takes delight in managing real estate for clients, then he or she is going to find the property maintenance and renovation business very rewarding and lucrative.

2. Executive Summary

Crystal Property Maintenance & Renovation Company is a licensed property management company that will be based in Palm Beach – Florida but will operate in all states in the United States of America.

We are in the business of property maintenance and renovation to be able to help our clients meet their needs and achieve their goals with little or no stress on their part because our role is to take the stress off them and deliver to them what they want.

We have been able to build a robust list of landlords and property owners in the whole of the United States and we look forward to helping a larger percentage of them manage their properties in any part of the United States of America.

Crystal Property Maintenance & Renovation Company will ensure that every property that is kept within our care are properly managed in terms of maintenance and renovation because we are in business to deliver excellent services to both landlords and tenants.

We have been able to acquire all the relevant training and certifications in the field of property maintenance and renovation (management) so as to enable us perform excellently.

Crystal Property Maintenance & Renovation Company will strive to minimize the risk of litigation and damage to rental units and also, we have perfected strategies to maximize profit by simply slashing vacancy rates, repair and maintenance costs of all properties under our care.

Much more than renting our properties out to tenants, we intend to build a loyal customer base and part of the plans that we have put in place to achieve this is to offer incentives to law abiding tenants under our care. Part of what we intend doing is to offer lower rent for tenants who agree to enter long term lease agreements with us and also to create a system where points will be awarded to loyal tenants.

As a property maintenance and renovation company, we are going to abide by the Fair Housing Act, which means not singling out one particular demographic group when sourcing for tenants for our properties. We will leverage on all available means to advertise our vacant properties and will not restrict our properties to any group of tenants but to anyone who is qualified and can afford the rent.

Crystal Property Maintenance & Renovation Company will be owned majorly the Mr. Pearson Wilberforce and his immediate family members. Pearson Wilberforce is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting his own business. He has a degree in estate management from University of Florida.

3. Our Products and Services

Crystal Property Maintenance & Renovation Company is set to run a standard and profitable property maintenance and renovation business within the scope of the real estate industry in the United States of America. Our intention of starting a property maintenance and renovation business is to make profit from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and ambition.

Our business offerings are listed below;

• Collecting rent
• Managing facilities, maintenance and renovation services
• Managing security
• Managing trash and recycling collection
• Property accounting
• Legally representing property owners
• Finding and screening tenancy applicants
• Coordinating repair contractors
• Residential property management
• Nonresidential property management
• Land management
• Real estate brokerage
• Construction
• Property Management Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our Vision is to become the preferred choice for landlords and tenants when it comes to property rentals, property maintenance and renovation in the whole of the United States of America.
• We are a company that is established with the aim of helping tenants (people and businesses) get the properties of their choice and to help property owners (landlords and group owners of properties et al) effectively manage (maintain and renovate) and maximize their properties in the United States of America.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

Crystal Property Maintenance & Renovation Company is fully aware of the modus operandi in the real estate industry, hence adequate provision and competitive packages has been prepared for independent sales agents and contractors. Our marketing department will be responsible for managing this aspect of our business structure.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer

Project Manager

• Company’s Lawyer/Secretary

Admin and HR Manager

• Head of Construction and Renovation
• Head of Assets Management
• Head of Acquisition and Disposition
• Business Developer/Sales and Marketing
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling and disciplining managers; communicating values, strategies and objectives; assigning accountabilities; planning, monitoring and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Creating, communicating and implementing the organization’s vision, mission and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensures compliance during project executions
• Providing advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied

Company’s Lawyer/Secretary/Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develop company policy and position on legal issues
• Research, anticipate and guard company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Play a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities

Head, Acquisitions and Dispositions

• Manages overall acquisitions and dispositions
• Identifies and analyzes acquisition opportunities; negotiates acquisitions
• Responsible for identifying opportunities to acquire properties, possibly within a designated geographic region
• Assists in the sourcing and acquisition of property for development; conducts market research; contacts brokers and owners about property acquisition opportunities; assists in negotiations with sellers and other parties.
• Identifies and analyzes disposition opportunities; negotiates dispositions
• Responsible for identifying opportunities to dispose of properties, possibly within a designated geographic region.
• Assists in the disposition of property; conducts market research to determine the value of properties; contacts brokers and potential buyers; assists in structuring sales transactions and negotiations with buyers

Head of Asset Management

• Oversees the company’s portfolio of real estate assets (which are owned and managed) through acquisitions, dispositions, and day‐to‐day operations, including management of revenue and expense items; works to maximize the portfolio’s performance
• Provides strategic oversight of existing and potential real estate assets within a designated geographic area
• Manages business plans and budgets for properties
• Reviews the condition and maintenance of assigned properties; manages their bookkeeping and cash flow accounting; handles rent reconciliation; prepares property financial reports and annual budget forecasts

Head of Renovations/Construction

• Establishes and enforces company’s engineering and construction standards
• Ensures that construction work meets or exceeds standards within a designated geographic area
• Enforces and construction standards; ensures that construction work meets or exceeds standards within cost estimates; monitors quality of work in progress; supervises regional construction heads
• Ensures that construction work in a particular product line, such as office building, meets or exceeds standards within cost estimates; provides technical input on the feasibility of proposed projects; monitors quality of construction work
• Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Business Developer

• Identify, prioritize and reach out to new partners and business opportunities
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
• Responsible for supervising implementation, advocate for the customer’s needs and communicates with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Sales and Marketing Officer

• Lists the property for rent/lease to the public
• Markets space; finds tenants; participates in lease negotiations
• Provides property owners with a real property condition disclosure (if required by law) and other necessary forms
• Prepares necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Holds an open house to show the property.
• Serves as a contact available to answer any questions about the property and schedule showing appointments
• Ensures that tenants are pre-screened and financially qualified to rent/lease the property
• Negotiates price on behalf of the property owners (Our Clients)
• Acts as a fiduciary for the landlord, which may include preparing a standard real estate rental contract
• Lease contracting or accepting rent using legal documents approved for the area in which the property is located
• Responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due
• Responsible for preparing financial reports, budgets and financial statements for the organization
• Provides managers with financial analyses, development budgets and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting and financial reporting for one or more properties
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

The fact that property maintenance and renovation business is a very rewarding business does not mean that there are no challenges in the industry. Starting a property maintenance and renovation business in the United States of America comes with its own challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the United States.

In order to compete favorably in the real estate industry as a property maintenance and renovation company, we have been able to hire the services of tested and trusted business and HR consultants to help conduct critical SWOT analysis for us.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Crystal Property Maintenance & Renovation Company;

Some of our strengths that we will be bringing to the table in the real estate industry is our robust relations with properties investment moguls in the whole of the United States of America. Our access to funding and also, we have a team of experts who have cut their teeth in the industry. Our commission structure and relationship with freelance real estate agents in Palm Beach – Florida and other state in the US will also count in our advantage.

As a newbie in the property maintenance and renovation (property management industry)/real estate industry, we might have some challenges competing with big time property management companies and other property maintenance and renovation companies that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

The opportunities in the real estate industry especially as a property maintenance and renovation company in the United States of America is massive and we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely to face as a property maintenance and renovation company are unfavorable government policies and global economic downturn; global economic downturn usually affect spending power and the real estate industry is known to encounter decline in sales and profits during this period. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trends as it involves the property management (maintenance and renovation) business is indeed dynamic and at the same time pretty much easier for a newbie to come in and still make money from the industry. All that is needed for any property management company to do well in the industry is to have good managerial skills and healthy relationship with landlords (property owners).

Some of the factors that count positively in this line of business are trust, honesty and relationship management and any property maintenance and renovation company that has this will indeed do pretty well in the industry. Landlords and property owners ensure that they put their properties under the care of someone they can trust.

One thing is certain for every property maintenance and renovation company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

Our target market as a property maintenance and renovation company cuts across people of different class and people from all walks of life. We are coming into the industry with a business concept that will enable us work with highly-placed people in the country and at the same with lowly placed people who are only interested in putting a roof under their head at an affordable fee that won’t be so much of a stress to raise.

Although finding tenants is relatively easy, but the truth is that finding qualified and law abiding tenants can be somewhat challenging. It is important to note that the target market for those who are into property maintenance and renovation business goes beyond those who make use of the internet (Craigslist to search for properties; some of them only rely on the print media (local daily or weekly newspaper both in English and in Spanish for the Spanish community in the US), some on word of mouth adverts and others on street to street search. The bottom line is that the market trend for property maintenance and renovation business is indeed a dynamic one.

In other words, our target market is the whole of the United States of America, and below is a list of the people and organizations that we have plans to do business with;

• Families who are interested in renting/leasing or acquiring a property
• Corporate organizations who are interested in renting/leasing or acquiring their own property/properties
• Land owners and landlords who are interested in renting/leasing out their properties
• Corporate organizations (real estate agencies, property development companies et al) who are interested in renting/leasing out their properties
• Foreign investors who are interested in owning properties or leasing properties in the United States of America
• Managers of public facilities

Our competitive advantage

Crystal Property Maintenance & Renovation Company might be a new entrant into the real estate industry in the United States of America, but the management staff and board members are considered gurus. They are people who are core professionals and licensed property managers in the United States property market. These are part of what will count as a competitive advantage for us.

Another competitive advantage that we are bringing to the industry is the commission model (our commission structure). We know that freelance (licensed) brokers and contractors would work for the highest bidder which is why we designed a commission structure that will be a win – win for all parties involved in any deal undertaken by us.

Lastly, our employees will be well taken care of and their welfare package will be among the best within our category (startup property maintenance and renovation companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Crystal Property Maintenance & Renovation Company is established with the aim of maximizing profits in the real estate industry via managing houses / properties, renovating and maintenance.  Although we are a property maintenance and renovation company but part of our workforce are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Crystal Property Maintenance & Renovation Company;

• Managing facilities maintenance and renovation services

10. Sales Forecast

The fact that the property market is indeed a booming market means that investors are always going to be attracted to the industry. No doubt it is difficult to see multi-millionaires who don’t have interest in investing in properties; real estate investment is one business portfolio that is common to all multi – millionaires in the world.

In essence, the more people acquire properties, the higher the chances that property management companies will secure business deals. Also, as long as tenants are always in search of accommodation, there will always be business for property management companies.

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set target of generating enough income/profits from the first month of operation and grow the business beyond Palm Beach – Florida to other states in the United States of America within record time.

We have been able to critically examine the real estate market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well;

• Rent/lease a minimum of 30 housing units to clients (flats, duplexes, studio apartments et al) within the first 6 months of operation
• Rent/lease a minimum of 20 office facilities to clients within the first 6 months of operation
• Manage a minimum of 20 properties for clients within the first 6 months of operation
• Sell a minimum of 20 hectares of land within the first 12 months of operation
• Provide advisory and consultancy services for a minimum of 10 clients per month
• Handle a minimum of 20 building makeover projects within the first 12 months of operation

N.B:  Please note that we could not put a specific amount to the projection because the prices and commissions vary for different properties and for different clients. Part of our business strategy is to work within the budget of our clients to deliver quality property/properties hence it will be difficult to project what we are likely going to make from such deals.

But the bottom line is that we are definitely going to make reasonable profit from any business deal that we execute since we work based on commissions. The property management market is structured in such a way that property managers will always make profit from any deal they handle as long as they conduct due diligence before signing the deal.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiff competition in the real estate market in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the top 5 leading property maintenance and renovation company in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the industry.

Crystal Property Maintenance & Renovation Company is set to make use of the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to stakeholders in the real estate industry and also property owners and potential clients through the United States of America
• Promptness in bidding for acquiring homes/properties that are put up for sale
• Advertise our business in real estate magazines and websites
• List our business on yellow pages (local directories)
• Attend real estate related expos, seminars and business fairs
• Create different packages for different categories of clients in order to successfully sell our homes/properties to them
• Leverage on the internet (social media platforms) and our official website to promote our business
• Places highly visible “For Sale” sign on any property that we put up for sale
• Encourage word of mouth marketing especially when we have a home for sale

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us work our way into the hearts of our target market. We are set to take the real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise our property maintenance and renovation business;

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for lease or rent or sale
• Sponsor relevant TV shows so as to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like Instagram, Facebook ,Twitter, LinkedIn,  Badoo, Google+  and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease
• Install our billboards in strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our clients to deliver excellent properties to them. The real estate industry is based on commissions and properties are valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable when it comes to pricing structure. Part of what we intend doing that will help us cut cost is to reduce to the barest minimum all maintenance cost by renting/leasing any property under our care to responsible tenants who won’t cause damage to our facility.

• Payment Options

At Crystal Property Maintenance & Renovation Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them, but at the same time we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Real estate deals usually involve huge amounts of money.

Here are the payment options that we will make available to our clients;

• Payment via bank transfer
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Any agent who intends paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

Starting a property maintenance and renovation business is indeed capital intensive hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up an office structure for such business might not be expensive, but the running capital of the business is always the real deal. You would need huge capital base to be able to maintain and renovate properties.

Here are the areas we intend spending our start – up capital on;

• The total fee for incorporating the Business in the United States of America- $750
• The budget for permits and license – $2,000
• The cost for hiring business consultant – $2,500
• The cost for the purchase of computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400
• Cost for payment of rent for a suitable office facility with enough space in Palm Beach – Florida for 12 months at $1.76 per square feet in the total amount of – $105,600
• Cost for office remodeling (construction of racks and shelves) – $20,000
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The Cost of Launching our official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from our research and feasibility studies, we will need about $500,000 to set up a standard property maintenance and renovation company in Palm Beach – Florida. Please note that the cost for payment of employees is part of the total budget.

Generating Funds/Startup Capital for Crystal Property Maintenance & Renovation Company

Crystal Property Maintenance & Renovation Company is a private business that is solely owned and financed by Pearson Wilberforce and his immediate family members. They do not intend to welcome any external business partners for the first 3 years which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B:  We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Crystal Property Maintenance & Renovation Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to maintain and renovate properties a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Crystal Property Maintenance & Renovation Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All forms of Insurance for the Business: Completed
• Renting of Office Facility in Palm Beach, Florida: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO/President and Business Partners: Completed
• Application for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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Home Renovation Project Plan

Doing your own remodeling is, to say it lightly, a big job. There are many things you need to get done, details that need to be finalized, and materials that need to be acquired. The whole process is already a confusing mass of loose ends, and jumping straight into it without first deciding on what to do will only make the task more difficult.You may also check out  advertising plan examples.

One of the biggest remodeling mistake homeowners make is skipping the planning phase and rushing straight into the project. Before starting any home remodeling project, you need a plan. While it’s a tedious process, it will help you make the most out of your time and money.You may also like  job plan examples.

Home Renovation Project Planner Template

• Google Docs
• Apple Pages

Size: 170 KB

Project Plan for Home Renovation Table Example

Size: 75 KB

Home Remodeling Project Plan for Kitchen and Bathroom

Size: 66 KB

Kitchen Remodeling Project Costs Worksheet

Size: 77 KB

Four Steps to a Foolproof Home Renovation Project Plan

Below are four easy steps that will help you ensure that your remodel meets and exceeds even your highest expectations, while successfully avoiding making all those often inescapable annoying little mistakes along the way.

1. Decide on what you want.

A big part of planning a home project is deciding what look you will try to achieve for your home. Having a clear mental picture of the end product that all the hard work should result in is a great way to make sure that, from the first day to the last, all of the smallest decisions you will make will move you closer to your desired result.You may also like  simple business plan examples .

Whether you’re simply converting a bathtub into a walk-in shower or building an in-law suite, having a better understanding of how you want your house to look and feel after all the remodeling will help you decide on budget, design, and materials more easily.

2. Create a realistic budget.

The next step in your home remodeling project is to create a budget. Redesigning a house can be expensive. Deciding on a budget will help you make sure that you don’t spend more than you should, and that you achieve everything you want to get done with enough to spare. You may also see  daily plan examples .

Once you’ve decided on the scope of your project and what features and finishes you want, figure out how much money you have available to spend on your remodeling. A little spoiler though, often what you want and how much you can afford aren’t always the same things.

The best thing you can do is to be smart with your spending. After all, there is nothing that a frugal pocket can’t do. Keep in mind that renovations don’t always guarantee returns and that spending more on an upscale renovation isn’t necessarily a better investment than spending less on a mid-range project.You may also see  transition plan examples .

How to Budget for a Home Remodel

You don’t have to cut a big hole from your savings just to make your house prettier. There are several money-saving tips you can follow to make sure you get a lot without having to spend too much.

1. Figure out how much you have to spend. After you’ve decided on what you want, determine whether or not you have enough money to cover the costs to achieve it. Look at your wish list and prioritize needs versus wants. For example, instead of setting aside a budget for garden gnomes, why not spend that money fixing the fence instead? It will make your lawn prettier, the same way that lawn gnomes will, while also ensuring that your house is safely boxed in from unwanted strangers.You may also like  simple business plan examples

2. Assess the present condition of your home. As a general rule, the older the home, the more hidden costs you’re likely to find behind your doors and walls. You don’t want to focus on renovating your home office while your attic’s floors are nearly collapsing. Make sure that you don’t have more pressing structural issues to focus on.You may also see  territory sales plan examples .

3. Check what permits your city requires. Unfortunately, we are not allowed to randomly break walls for beautification purposes. Which is why, in addition to protecting your home and family, getting the necessary permits will ensure that you won’t have to redo any of the work. The last thing you want is to run out of money in the middle of the project.You may also see  weekly plan examples .

To avoid spending more than what your budget allows you to, try adding up a close estimation of all of your expenses before you start. This can help you get a rough guess on how much the remodeling will cost you. Add a little few extra dollars in there for miscellaneous expenses and you’re good to go.You may also see  legal strategic plan .

Free Home Renovation Project Plan Template

Size: 113 KB

Example Project Plan for Building a House

Size: 91 KB

Home Construction Budget Project Plan

Size: 29 KB

C. Get written estimates.

Planning a home remodeling project involves getting estimates from remodeling companies or general contractors unless you’re doing all this on your own. Chances are you’re not, so before you start researching for available, not to mention affordable, contractors, get recommendations from family and friends about who they hired for their own remodeling project.

You can never go wrong with tried and tested workers. Start compiling a list of several contractors you may want to hire, but don’t let the price be the deciding factor. We are often attracted to the cheapest. It’s one of man’s greatest weakness. However, the cheapest often won’t give you a result you can be happy with.

So instead of focusing on that sole factor, try considering these several others before hiring a contractor:

1. Years of experience.

Honestly, if you are looking for an inexperienced newbie, why don’t you just go ahead and do the job yourself? But you won’t because remodeling your home is important to you, and you want to entrust the job to someone who’s actually capable of doing it. A contractor who has been doing business for a long time makes them a safer bet than one who is fairly new to the business.You may also see  project plan examples .

2. A contracting license.

Make sure that your contractor has gone through all of the steps needed to obtain any required certifications specific to their line of work. Why? Would you trust an unlicensed, although just as qualified, doctor to conduct a sensitive operation on you when the medical field is brimming with licensed and qualified doctors? Although a contractor and a doctor are two very different things, the point remains: we only want someone who has been given the right to perform the job. You may also see  catering company business plan .

3. Certificate of insurance.

Contractors should have workers’ compensation and liability insurance for the type of work they perform. Yes, you’re just redesigning your house. But these people deal with machines and equipment, and insurance is not an option. It should be a necessity.

4. Timeline for completion.

It’s important to know when the contractors will start and complete a project, and if there are any circumstances that may affect that schedule. Yes, you want your house to look prettier, but you can’t have strangers banging around your walls and making loud noises with their machines for too long. You need to know exactly when you can enjoy the results of your money and effort.You may also see  marketing plan examples .

5. Payment schedule.

If knowing when you’ll enjoy your home’s new look will give you some peace of mind, knowing when they will get paid will do the same to your contractors. But, of course, a reputable contractor won’t ask you to pay the full price upfront, and the entire business world advises everyone not to. However, it’s important to discuss payment terms before construction begins. In some cases, it’s even better to spend a little extra to get someone you’re comfortable working with.

D. Map out your schedule.

Depending on the scope of your project, a home renovation can run anywhere from a few days to a few weeks. As a result, you can expect your day-to-day life to be impacted in some capacity. If you’re remodeling your kitchen, don’t expect your breakfast to be peaceful for a while.

If you’re getting your living room done, move your guests somewhere else. Renovating the master bedroom? You’ll have to make temporary sleeping arrangements. Whether or not you should live in your home during construction depends on what work is being done.You may also see  social media marketing plan examples .

If the contractor you hire doesn’t provide their own timeline or project plan for your home renovation, you should make your own and share it with them. It’s best that both parties are in agreement regarding this aspect. Generally, the bigger the project, the longer it will take.You may also see  food catering business plan examples .

Example Project Management Plan for House

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Project Management Planning for Home Remodeling

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Renovation 101: Helpful Reminders

Now that we are through discussing the basics of a renovation project, let’s delve deeper into the different factors that you also need to consider before pushing through. Do you need to tap an architect and an interior designer, or your wild mind enough? Do you need a permit before you begin, or are you conducting minor conditions that nobody needs to concern themselves with?

Know the answers to these questions and a couple more helpful tips below.

Always take your budget into consideration. Major renovations are more complicated and may cost more. If you are working with a limited budget, make sure that you use that money to alter a more significant portion of the house.

It’s important to decide which space or spaces need to be prioritized. This will help you stay within your practical working budget. Instead of doing the kitchen and the living room at the same time, choose which one among them must be remodeled first, and go back to the other one next time you become less short on cash.You may also see  self-catering business plan examples .

What can I do with my old furniture? This one is a really good question and one that is frequently asked by those who have remodeled their houses. Of course, the renovations would also include purchasing a new set of furniture to go with the new design you are trying to achieve. So what will you do with the old ones?

Once you’ve identified the areas for renovation, inspect the spaces and check pieces that can be reused or repurposed. Reusing the materials will help you keep the cost low. Instead of buying a new table for your office, why not keep that gorgeous old mahogany table for after the remodeling?

Or that sturdy plywood from an old built-in cabinet can be used to make a new center table if it’s still in good condition. If you have pieces of broken ceramic tiles chipped off from the floor, you may use it on kitchen splashboards in place of expensive mosaic tiles by laying it out in a random pattern.You may also see  e-commerce project plan examples .

By using your imagination, unleashing your creativity, and focusing on what will help you save money the most, you won’t need to throw away old furniture.

Do I need to enlist the services of an architect or an interior designer?

Commissioning the services of an architect or an interior designer will immensely help you maximize a limited renovation budget as design mistakes and unconfident quality estimates will be kept at a minimum, and specifications will be cost-sensitive. However, you don’t  need to enlist the services of any of these professionals if you think you can do a perfectly good job yourself. You may also see  hotel marketing plan tips .

Can I work on a renovation project without professional help?

Yes, of course you can. But it is undeniable that you can benefit from having a sketch or a guide of a general layout of the desired final outcome of the renovation. Having a plan will help you define the renovation direction and avoid unexpected changes mid-construction that may have serious cost implications.

Other valuable tips to keep in mind:

1. Diligent supervision during construction is important, especially when trying to keep within a budget without professional design assistance. Yes, your contractors are professionals who will do their best in doing their tasks, but with you there, they’ll try to make an even better one. This will also ensure that all materials are used correctly and that the workers are working to achieve the needed output.You may also see  restaurant event proposal examples .

2. Renovations can be complex and costly, but if you’re armed with proper planning and practical prioritization, you can go through the fun and exciting experience without having to break the bank.

3. After the renovations are completed, it is necessary to inspect the correctness of the construction work done and determine if the new space is safe for occupancy. Keep in mind that it would be an expensive inconvenience to spend more on trying to fix unsafe work.You may also see  annual marketing plan examples .

Now that you are equipped with the necessary knowledge to do your own remodeling, bear in mind the important tips we’ve discussed. You don’t have to spend a lot to make your home more comfortable and more attractive. You’d be surprised at the amount you can save, while still receiving the same results, if you plan wisely.You may also see  business plan profit and loss template examples .

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Sometimes you need a professional to get a task done the way it should be. Doing it yourself should be out of the question, if you want to finish on time. Or even when you just want to avoid risking effort, time and money which can lead to added work, if you want an overhaul for the house. It may even lead to legal problems, if you’re not careful. You may also see Project Plans .

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• Business Plans Handbook
• Business Plans - Volume 06
• Real Estate Renovation Company Business Plan Business Plan

Real Estate Renovation Company BUSINESS PLAN

ABC CORPORATION

14034 W. Circle Dr. Sacramento, CA 95831

This corporation admits the narrowness of this niche market but persuasively counters with the enormous payoffs possible and the absence of competition as well as a highly specific target group. The idea of real estate renovation is given a twist to appeal to wealthy consumers, and ample evidence convincingly illustrates the growth of demand. Optimism accompanies each section of the plan and helps convey a confidence necessary to succeed in such a risky endeavor.

EXECUTIVE SUMMARY

The business, market analysis, marketing strategy, market exposure and risks, financial considerations, introduction.

ABC Corporation is formed to help meet the growing demand for unique homes in the Sacramento area of northern California.

ABC Corporation is initially focusing on the renovation of one unique estate, which is detailed in this document. Other land development opportunities can be addressed in the future which will provide additional profit with reduced expenses.

ABC Corporation has reached an agreement with a building renovator (a builder and architect that has been recognized by receiving numerous awards for quality renovation projects) to partner in the development of this estate. In addition to the builder, ABC Corporation has secured the services of an experienced real estate professional to assist in the marketing assessment and the marketing of the property.

This building renovation will conform to the guidelines established by the local city government for zoning and setback restrictions.

ABC Corporation will negotiate the purchase of the property. The oversight of the renovation will be the responsibility of ABC Corporation with the builder's participation in the profit being based on his ability to deliver the project on time and within budget. The marketing of the estate will be done by the real estate professional that will be paid based on a consulting fee.

Due to the size of this renovation project, ABC Corporation has decided to limit the scope of the initial project to this one renovation project only.

The profit from this initial project will help provide the basis for funding other land development projects and be the initial start-up capital necessary for this business.

Due to the high and increasing demand for unique homes in the 2 to 5 million dollar price range, ABC Corporation will be able to renovate this estate at a low cost, thus providing the opportunity to result in substantial profit.

Please note that this project will be completed within 18 months and will sell for over $4,500,000, generating a profit of $1,000,000.

Mission Statement

ABC Corporation can be characterized as a developer of unique homes, catering to the discriminating buyer who needs a home that makes a statement. ABC Corporation was developed to provide rapid access to the type of unique home that is expected by the person buying a home in the over 3 million dollar price range.

Before the end of this project, ABC Corporation will be recognized as a highly visible company in the estate renovation market. We will be known for developing a unique quality product. We will have renovated a unique historical home in the most exclusive area in metropolitan Sacramento. Our revenues will exceed $4.5 million. ABC Corporation will actively seek to promote expansion into other additional renovation opportunities within this market from the profit that we have obtained from this project.

The ABC Corporation's mission is to provide unique, practical, and quality homes on a timely basis, utilizing state-of-the-art renovation techniques and practices. We believe that our first responsibility is to our customers. Our strong financial position will enable us to establish an attractive option in the geographic market we serve. In carrying out our day-to-day business we strive to:

• Follow the philosophy that our customers are entitled to select a unique quality that is available in a reasonable amount of time.
• Treat our partners with fairness and consideration.
• Be considered an asset in our community.

Through long-term commitment to this mission statement, we will be recognized as an organization that is responsive to our customers.

Unique Features

The concept of renovating unique estates is a stable financial model in the Sacramento metropolitan market which is experiencing a rapid growth in the demand for houses in the over 3 million dollar market. This is truly a niche market as there have traditionally been houses built on speculation for people in the 1.5 million dollar range and below, however, there is a very limited quantity of homes available in the over 3 million dollar price range. This demand is producing a rapid escalation in the price of homes in this category.

ABC Corporation has formed a partnership with two key people that bring a relationship with the building trade, experience in renovating other historical estates, and success in marketing the completed product.

The concept that "new is better" may work for home buyers in lower price ranges, but our research shows that homes in the over 2 million dollar range built in the early 1900s (this home was built in 1924) are consistently valued at higher prices per square foot.

Marketing Objectives

The ABC Corporation's marketing objective is to promote and support the fact that people can purchase truly unique homes that make a statement about their way of life.

Marketing Strategy

People have a right to demand a truly unique home that is not just a large box with so many square feet of floor space. It is appropriate for buyers to expect to have this type of unique quality home available in a reasonable period of time.

Our target market focuses on the top 600 executives in metropolitan Sacramento. These executives that have rapidly moved up their organization have achieved new status through the consolidation of the High-Tech suppliers, or have been relocated to Sacramento by global High-Tech corporations establishing a North American headquarters in California. Since all of the executives in this target market will have recently moved into new positions, their expectations will be to quickly acquire a unique home that is commensurate with their new social status.

Positioning

Our houses will be seen as desirable and unique by the prospective homebuyer.

The recognition that our builder has received for spectacular renovations, coupled with the historical significance and exclusive appeal of the adjacent golf course, make this a very unique and highly desired estate.

In terms of market segmentation advantages, our house will appeal to the thirty people that we anticipate entering this market looking for a unique home.

The "selling basis" for our home is a high customer demand for unique homes. Once in the door, the customer will sell himself on his need for this unique spectacular estate.

The price for our home will be based on the market midpoint price per square foot of houses built in the same period and in the same geographic location.

The price in the financial model will be conservatively forecasted with no escalation for property values over the period required to complete the project.

We feel that our house is reasonably priced within the ability of our target customer's ability to pay and receive superior value for the dollars spent.

Expected Accomplishments

In order for ABC Corporation to attain its vision in the manner described in our mission statement, the following primary goals need to be achieved:

• Purchase the house at or below the price forecasted in the financial model.
• Complete the renovation of the home at or below the price forecasted in the financial model.
• Complete the renovation of the home on or before the deadline in the project plan.
• Complete the renovation with a home that is recognized for its spectacular quality.
• Secure a contract with purchaser at or before the completion of the renovation.
• To utilize the customer of this house as a reference for the next potential customer.

To utilize the recognition of the quality of this home to develop a demand for other homes of similar quality and uniqueness.

By the end of the project plan, ABC Corporation will have achieved each of the named goals and will be moving forward toward the next renovation opportunity.

Upon completion of the Seeley Estate, ABC Corporation will have identified the next renovation project. We expect to market our own unique renovation projects for the Sacramento market.

ABC Corporation forecasts completing and selling our first renovation project within budget and on time, resulting in achieving our initial financial goals. We will have received recognition for renovating a historically unique estate with a spectacular style. We will identify further potential renovation efforts and develop the plan to continue to generate additional revenues through additional renovations.

ABC Corporation projects completing the renovation of this unique home and selling it for total revenue of 4.5 million dollars.

• First-year total sales will be zero (annually).
• Second-year total sales will exceed $4.5 million (annualized).

Required Capital

According to the opportunities and requirements for ABC Corporation, described in this business plan, and based on what we feel are sound business assumptions, our initial total capital requirements total $3,040,000. This amount will enable us to purchase the estate and place required deposit down on the initial startup costs.

Problem Statement

In today's market, there are an insufficient number of unique estates in the Sacramento market for the number of prospective buyers. The increasing number of people in the three million dollar home and above home market are feeling constrained by the limited amount of land available for development and their time to locate a new home. These people need someone with the vision necessary to renovate or develop the limited amount of available land. These people need someone with knowledge of the marketplace and the building trades that can quickly provide them with truly unique homes of distinction.

Currently, prospective homebuyers have two choices when looking for a new home. They can engage a builder to build a new home that can be built in twelve to eighteen months. They can knock down an existing home and replace it with a new home in eighteen months. Most of these prospective buyers have just relocated or are people that have just gained new stature that requires them to quickly move into a unique estate designed for entertaining.

ABC Corporation will provide a rapid solution to the expanding market demand for readily available unique estates. The market knowledge of the realtor and trade network and renovation experience of the builder assure that prospective buyers will be able to move into truly unique estates in significantly less time than they can today.

Description of the Business

ABC Corporation is a business that provides prospective estate buyers with rapid access to their new homes. The renovation of this estate will be accomplished through a partnership between ABC Corporation and Harris Partners. ABC Corporation will provide the funding for acquiring the estate and the renovation. ABC Corporation and Bill Jones, the realtor, will also provide the contacts for acquiring the property and selling the property. Harris Partners will provide the expertise and capacity for performing the renovation. Harris Partners has the experience and the staff necessary to assure the prospective buyer that they will be able to move into a unique estate in a short period of time.

This unique renovation would be targeted at the top 600 executives, entrepreneurs, and professional athletes in the Sacramento metropolitan area. The sale price of this estate would provide over a 20% return on our investment and be within the income of our typical customer, someone receiving a total annual income of over one million dollars.

History of the Business

ABC Corporation was founded in 1998 to meet the demand for truly unique estates in the Sacramento metropolitan market and to take advantage of the knowledge that Harris Partners has gained in the renovation business and the market knowledge of the owner and the realtor.

It is the intention of ABC Corporation to continue to grow core business after the completion of this project by locating, renovating, and selling additional estates. Since these other projects would not take place until the completion of this project, and we cannot accurately forecast the purchase prices or the cost of renovations for specific homes yet to be identified. Projections for future projects are not be included in this plan.

ABC Corporation can best be described as a business specialized in the renovation of historically significant, unique homes. Our key strengths are derived from the partnerships that we have built with Harris Partners and Bill Jones, to provide experience in locating and renovating this prime property. The team is a strong and experienced management group, and has a proven track record in marketing.

The core management team is in place; however, we are in the process of reviewing the project plan in order to select the appropriate skilled trade people for this project.

Our renovation partner, Harris Partners, has been tested and recognized by receiving many awards for the quality of their work.

Market Environment

The market demand, which has been growing for the past 10 years, continues to undergo rapid growth with an increasing number of new executive positions being created through corporate consolidation, relocation, and promotion. We are now poised to take advantage of this opportunity and expect to have an offer for purchase on the home before we have completed the renovation.

Pricing and Profitability

Current prices on homes in the above three million dollar price range are increasing very rapidly in the Sacramento marketplace. However, to insure profitability, we are basing the forecasted sales price on the current market price which will provide us some flexibility to negotiate a quick sale.

Our customers are the top 600 executives, privates business owners, and professional athletes in the Sacramento metropolitan area.

Founder of the Business

David l. seeley, president.

Mr. David L. Seeley founded the company in August of 1998 and has been president of the company since that time. Mr. Seeley has had extensive involvement in various business enterprises since starting his career in 1976 in the building material business with ARBCO Inc. and Sand Hill Road Partners where he worked on architectural specifications and with local building code officials in Sacramento, CA. Mr. Seeley was owner of his own computer resale business where he employed a total of over 90 employees. In addition, Mr. Seeley has been a manager for High-Tech Energy Systems for over the last nine years where he has been responsible for an organization with over 210 employees and $80,000,000 in annual revenue. Mr. Seeley has also been in significant leadership roles for two other corporations where he has held profit and loss responsibility. Mr. Seeley has been project manager for several large multi-million dollar projects and is very experienced with project management tools and processes. Mr. Seeley is an alumnus of Oakhurst College with majors in business administration and history. Mr. Seeley attended graduate school at California State University—Davis and has attended at least one graduate level class per quarter for the last three years. Mr. Seeley is also on the Board of Directors of a private school and is the advertising coordinator for his church.

Corporate Partnerships

Real estate marketing partner.

Bill Jones, Marketing Agent Real Estate Professional Partners

Bill Jones has 24 years of experience in the real estate business in the state of California. Mr. Jones has a real estate brokers license with the state of California and is an accredited buyer representative, a certified residential brokerage manager, a certified residential specialist, and a graduate of the Realtors Institute. Mr. Jones has managed sales offices for twelve years, overseeing as many as 90 sales people and managing a budget in excess of three million dollars. He has received recognition for multi-million dollar production for every year since 1975. He graduated from San Francisco College with majors in history and mathematics and also received a master's degree in history from the University of Wisconsin.

Building and Architectural Partner

John Harris, President Harris Partners—San Ramon, California

John Harris has over 18 years of experience in building and architecture. He is a licensed architect and builder in the state of California and is on the National Council of Architectural Registration Board. Mr. Harris is a member of the American Institute of Architects, the California Society of Architects, and the American Institute of Architects Design Build Committee. He is also a member of the National Building Officials Code Association, Northwestern California Building Officials Association, the National Association of Home Builders, the National Association of Home Builders Remodelers Council, and the Building Industry Association of California. He has received the National Association of Home Builders Merit Award for Residential Design and Construction and the National Association of Home Builders Grand Builder Award for Residential Design and Construction. In addition to his extensive background and awards he has a bachelor degree in architecture from Montana State University.

Management and Operations

To attain the primary goal of profitably purchasing this unique home, ABC Corporation will carry out the following objectives:

• Purchase the house at the lowest price possible.
• Use the cost of updating the existing structure to negotiate a lower purchase price.
• Use the marketing information to help reduce the purchase price of the house.

To attain the primary goal of completing the renovation under or within budget, ABC Corporation will carry out the following objectives:

• Use the earned value method of project management (where expenses are tracked according to percent accomplishment of task as well as by dollars spent).
• Evaluate the impact on expenses and the sale price of any proposed scope changes in the renovation effort.

To attain the primary goal of completing the project on deadline, ABC Corporation will carry out the following objectives:

• Utilize computerized project management tools to insure that each task is being completed on time.
• Utilize project management tools to balance the staff's load so that everyone's time can be optimized.
• Reward the members of the team financially to complete the project at or before the deadline.

To attain the primary goal of obtaining recognition for the spectacular quality of the renovation of this home, ABC Corporation will carry out the following objectives:

• Develop a high quality marketing brochure.
• Have an article created describing this project and history of the home. This article will be placed in local newspapers and in historical building publication Historical Homes.
• Advertise the home in local and national publications.

To attain the primary goals of securing a sales contract prior to the completion of the project, ABC Corporation will carry out the following objectives:

• Begin advertising the home before the construction is completed.
• Have the public relations communication pieces done before the house is completed.

To attain the primary goals of developing a strong reference and developing the demand for future homes, ABC Corporation will carry out the following objectives:

• Work closely with the buyer before the completion of the project to insure that their expectations are exceeded.
• Insure that this home is appointed with features that are truly unique in this market.

Regulatory & Licensing

The legal form of ABC Corporation is a California corporation, located in Danville, California.

ABC Corporation will offer a unique home that conforms to all local, state, and national building codes and zoning ordinances. ABC Corporation is being formed to renovate this historical home and then continue with other projects as they are identified.

Revenue projections for this project, with external funding, are expected to be $4.5 million based on the renovation of this one home. Our objective at this time is to renovate this estate and, while we are completing this project, to identify another project to propel the company into a prominent market position by establishing ourselves as the renovator of unique historical homes.

This renovation is forecasted to provide a net profit of $1,000,000.

Market Research

ABC Corporation's market is growing rapidly. Sacramento (the county of the target market) is the second largest contributor to the Republican Party in the country. Nearby San Francisco is one of eleven cities in the United States that has four major athletic teams. It is the only city in the country that is undergoing dramatic creation of high level executive positions within one industry (due to the fact that the High-Tech industry is consolidating the smaller suppliers and is spinning off large pieces of the PC OEM business). In addition to these facts, the stock market is producing more wealth for people all over the world. All of these factors contribute to the rapid increase in the demand for spectacular homes.

The market trends show that the number of homes sold in the over two million dollar range has almost doubled (with the exception of 1997). Already through July of 1998 there have been twice as many homes in the over two million dollar range sold than all of last year. The market trend also shows that the price per square foot of the houses sold has increased by approximately 22% from 1993 to 1998. The current average price for all houses in this market segment has already gone up another 32% per square foot. All of these increases have occurred while the average number of days the house is on the market for 1997 is only two more than in 1993 (and less than any other year between 1993 and 1997).

Target Market

ABC Corporation's target market includes all adults that are making over one million dollars per year. The following chart is based on the research that we have done through Calvin's Sacramento Business, Internet websites for all of the corporations that we could locate in the Sacramento area, and our personal knowledge of the professional athletes and business professionals. There are currently approximately 600 people in this target market. The following chart shows the breakdown of this population by profession.

Distribution of People by Industry

Customer Profile

ABC Corporation's sole service is to provide spectacular homes to people in a quantifiable market. At least 600 people in metropolitan Sacramento make over one million dollars per year.

National Real Estate publishes that the average American moves once every 6.9 years. That means that at any time 14.5% of this target market will be looking for a new home. That translates into 87 people looking for homes in this market at any time. With the current trend of increasing income it will not be unreasonable for the number of potential buyers to increase to 100 within a very short period of time.

Competition

The existing competition in this market are other properties that cost over two million dollars.

There are currently only 17 other homes on the market that are priced at over two million dollars. Other homes in this price range consist of new homes, renovated homes, and homes needing renovation. There is not a wide selection between the homes that are available. There are no other homes available that border a country club, have a swimming pool, tennis court, over 12,500 square feet of space, and are historically significant.

A key factor in the development of this particular home is that it is unique, and is probably the only property available that has a tennis court, while bordering the prestigious Blackhawk Country Club. The home is being renovated by Harris Partners, who is recognized as being the leader in renovations of historic homes in the area.

The major competitors' objectives are:

• New Homes: To build a new home that is unique from other homes and to offer the prospective homebuyer the opportunity to create their own home. The reality is that due to zoning restrictions and the lack of large parcels of available land it is very difficult to create a unique design for the home.
• Renovations: To utilize the historical significance of the home to create a unique dwelling. The challenge with renovations is that many times the existing structure does not provide the basis for developing a home that conforms to today's living and entertaining requirements.
• Homes Requiring Renovation: This competitive situation poses two problems. One is the same as that listed under renovations; the other is that many prospective buyers have difficulty visualizing the potential that the home possesses.

Our home is positioned to provide the prospective homebuyer with the most unique spectacular home that they can buy. ABC Corporation will also address our clients' need to rapidly move into a home that fits their general lifestyle needs.

Functional Description

ABC Corporation will offer a unique estate that offers a broad spectrum of appeal for people interested in entertaining and enjoying the things in life that their success has earned. The specific needs that this home addresses are:

Ability to Entertain: This home provides all of the facilities necessary to entertain any guest. The home will have a kitchen capable of serving large numbers of guests. There will be a home theater and entertainment center capable of providing any state of the art movies and interactive video experiences to individuals or large groups of people. There is a large wet bar and dance floor to respond to the need to provide dancing and drinks for large groups. There will be a complete exercise room, sauna, and whirlpool to provide top physical conditioning. Provide Access to All Major Recreational Activities: The grounds contain a large outdoor swimming pool for pool parties or for using swimming as a means of conditioning. There is a tennis court, which will be resurfaced for ability to play competitive matches or tune up your game. The home is located on the middle of the third fairway of the Blackhawk Country Club, enabling you to practice your chip shots or drive over to the club house for a round of golf. The reflecting pond, gardens, and sprinkler systems will all be redesigned or cosmetically enhanced to provide pleasant surroundings when walking through the grounds. Provide Showers and Changing Facilities for Recreational Activities: The home currently has separate showers and changing rooms for men and women to use when accessing the pool, tennis courts, or golf course. Easy Access for Physically Limited Persons: The home will be retrofitted with an elevator that will travel from the basement to the third floor. This will enable any guest to have access to the entire home. It will also allow for the owner of the home to have elderly parents stay with them in the home and be able to freely move about the home. State of the Art Security, Communications, and HVAC: This home will have a state-of-the-art security system to provide safety and peace of mind for the owner. The home will also have an intercom, stereo, and be wired for network communications in order to provide the owner with the best communications available. The home will have the heating and electrical systems updated. The home will have air conditioning and central vacuuming installed. These systems will provide the homeowner with a comfortable environment and one that requires little maintenance. Updated Bathrooms and Bedrooms: To provide the homeowner with bedrooms and bathrooms to enjoy a standard expected by people of this level. To provide the elegance expected by houseguests. Open Entranceway and Driveway: To provide the spectacular entrance to the home that is expected in a home that is in this market segment.

Related Products

It is the intention of ABC Corporation to use this project to further establish the reputation of Harris Partners and develop the reputation of ABC Corporation as the developer of truly unique homes.

ABC Corporation's marketing strategy is to aggressively promote the fact that our home—the Seeley Estate—is the most unique and spectacular home in the Sacramento area.

The key to marketing is education and awareness. ABC Corporation will support an educational effort, which will contact all of the local newspapers and major home publications to provide awareness to the current local residents and prospective new residents. ABC Corporation also will support opportunities to market the home through membership in Blackhawk Country Club.

Sales Promotions

Our advertising and promotion strategy is to position ABC Corporation as the leading developer of unique homes in the Sacramento market.

The ABC Corporation marketing strategy incorporates plans to educate and recruit potential homeowners through several proven channels:

• Newspaper advertising will target specific local buyers.
• Direct contact will address a highly focused segment of the high-income population.
• Referral networking with other real estate agencies will provide a source of prescreened prospects.

Publicity & Public Relations

In the building area, ABC Corporation has entered into preliminary agreements with the leading renovator of historically significant estates and the top real estate agent in Sacramento to renovate and then market this unique estate. ABC Corporation will focus on the following publicity strategies:

• The majority of advertising for this home will be paid for by the consulting fees of the real estate company that has been engaged by ABC Corporation; in addressing all broad advertising issues, this will be relatively unchallenged.
• Local newspapers will help promote the general awareness of ABC Corporation and this project.
• National promotion through home magazines dealing with quality of lifestyle issues is innovative and largely untapped in this market.

Market Perception

ABC Corporation should be viewed as the premier renovator of unique homes. It is the fulfillment of success to be able to live a lifestyle in keeping with your achievements.

As such, our target market focuses on people that are earning over one million dollars per year, but will be best received by people that have a large equity position to invest in the home.

Objectives & Strategies

ABC Corporation's marketing strategy is to promote the fact that ABC Corporation is a developer that provides the quality of life we all expect to enjoy, and that this quality of life is attainable.

Our home will be seen as desirable and unique by the prospective homebuyer.

The exclusiveness of our home and the quality of the workmanship will offer an advantage whereby the prospective homebuyer arrives at a highly satisfied position in his mind.

In terms of market segmentation advantages, our home will appeal to a wide variety of interests within this economic segment.

The "selling basis" for our home is awareness and education. Once in the door, the prospective homebuyer will sell himself on his need for a home that provides this quality of life.

Unique Selling Advantage

Margin structure.

Factoring in all carrying costs, expenses for the property, salaries of the workers, material costs, advertising, and the fact that the home should sell prior to completion (based on the current market average of houses selling within six months and the fact that the renovation will be completed within 12 months) the project will result in a margin of approximately 20%.

During the twelve months that it will take to complete the construction, the real estate values should increase, thus, the profit margin should improve.

Selling Tactics

Advertising and promotion.

ABC Corporation recognizes the key to success requires extensive promotion of our home. This must be done aggressively and consistently. To accomplish our sales goals, we will employ an extremely capable real estate agent supported by the top real estate agency in the area with public relations capabilities. Direct advertising will be concentrated on a local and regional basis, with national advertising contracted on a cooperative basis through some of the existing contacts that exist with national magazines.

Our objectives are to:

• Position ABC Corporation as the leading supplier of unique homes in this market and increase the company's awareness and name recognition in the community.
• Develop, through continued analysis of market research, significant information to create immediate marketing plans and budgets.
• Create advertising programs supporting prosperous lifestyles.

Media Objectives

Our media objectives are to:

• Select primary print media advertising with specific market demographics penetration.
• Schedule adequate frequency of ads to impact targeted market with image and quality messages.
• Take advantage of special high-interest inserts or special publications when possible.
• Get the most out of our promotional budget; our media coverage will focus on the over one million dollar income bracket.

Advertising Campaign

The best way to reach our potential customers is to develop an advertising campaign promoting our basic premise—"The Seeley Estate is the most spectacular and unique home available."

To maintain the ABC Corporation image, the delivery and tone of our statements will be informational.

• Ads will convey the "look and feel" of a unique, spectacular home.
• The prospective homebuyer is typically unaware of how difficult it is to find a truly unique home with historical significance.

Ideally, after becoming familiar with this project, the prospective homebuyer will feel compelled in turning to ABC Corporation as their only first choice to find a truly unique home.

To eliminate the biggest obstacle to immediate action, our advertisements must create the impression of exclusivity and create the desire to call for an appointment to see the home.

Because homebuying is such a personal issue, it is important to develop a promotional campaign that is consistent and easy to understand.

In addition to newspaper advertising, we will utilize regional advertising in some of the national home publications. We will gain considerable name recognition through the media. Homebuying is not an impulse decision, so the primary thrust of the advertising will be to inform our prospective homebuyers.

Public Relations

Our publicity efforts are intended to accomplish the following:

• Position ABC Corporation as the leading provider of unique and spectacular homes.
• Increase ABC Corporation's reputation and name recognition in the community that we serve.

Publicity Strategy

ABC Corporation will focus on the following publicity strategies:

• Develop a public relations effort, with ongoing contact between key historical building and real estate interest editors. Present consistent update programs for the target media, keeping editors aware of new construction completion.
• Develop a minimum of four articles edited by our builder and real estate agent, to be placed in newspapers within the next 12 months.
• Produce a complete company background on ABC Corporation to be used as a public relations tool for all grand opening announcements in print media.

Channels of Distribution

We currently plan to produce a 2-page, 4-color brochure, which will be available at real estate offices and in the home to serve as an informational piece for potential homebuyers.

The price for our home is determined by the average price per square foot of all the houses that are on the market at the time the house is listed. The cost model is based on the house selling at $4.5 million, which is twenty dollars per foot less than the current average.

We feel that this is a conservative price and that we actually should be able to get a higher price per square foot due to the rapidly increasing property values in this area.

Description

The risks that ABC Corporation faces are:

• Adverse changes in the market demand for exclusive real estate. While we do not anticipate a drop in the real estate market, changes in the marketplace do occur due to changes in interest or a downturn in the High-Tech industry.
• Unanticipated repair costs to the home necessitated by unforeseen damage to the property. Even with the extensive background and experience that our builder has, he may discover some items requiring renovation that were not part of the original budget. Even if this does occur, we are operating with sufficient profit margins and conservative assumptions on the purchase price of property, the cost of the renovation, and the sale price of the finished product, that we will still be able to obtain a reasonable profit.

Contingency Plans

We elected to be conservative in our projections; to reflect only the sales price for the finished property that is below the current average market price per square foot. In addition we are setting the purchase price of the house in the cost model at the highest possible purchase price. We are also setting the cost of renovations at the highest possible point. The builder's actual experience in performing similar renovations indicates that we should be able to increase the profit margin by approximately 30%.

With respect to the security of the market demand, the house is an asset that can be secured for at least 80% of its value. This base level of revenues is sufficient to cover all of the expenses for this project and still provide us with a breakeven. We also know from experience that, even in an economic downturn, that high-income earners will still pay for homes that provide them with the ability to fulfill their lifestyle. Furthermore, this projection does not take into account any income that we anticipate as we identify future renovation projects and the additional income potential that may be derived from them.

Use of Capital

Balance Sheet

Income Statement

We have highlighted the most obvious concerns and opportunities relating to the development of the Seeley Estate as focused in this business plan. Other development projects not mentioned here can be addressed in the future. Revenues have not been projected or financially determined for any future additional development projects.

Please be reminded that all the financials and calculations have been based on a sale price that is twenty (20) dollars per square foot below the current industry average. We also have based all costs on the most conservative expenses available. Traditionally, experience has proven that we can easily expect to improve the profit margin by another 10%.

Should there be a major downturn in the market or an increase in some of the projected costs, neither of these occurrences should affect our ability to generate a profit on this project and provide security through assets at all times. We believe that all of our estimates are conservative enough to provide a profit even in the most extreme conditions.

The future holds well for ABC Corporation, where the unique quality of our renovations will be recognized in the marketplace and we will be able to grow through the reputation gained on this project.

This renovation can be achieved during the next eighteen months. It will be noted that once the project is completed, it will generate a conservative net profit for Harris Partners.

Accomplishments

The development of this estate is expected to conservatively generate a 20% profit in less than 18 months (probably in 12 months if we meet our target of selling the house before it is completed). Depending on the changes in scope that the prospective makes, and our ability to control the cost of the project, we should be able to increase the profit by up to an additional 15%.

The chart below provides an overview of the expected breakdown in real estate, forecasted hard costs, controllable costs, and sales price.

Distribution of Building Costs

The growth of the company will focus on obtaining a 20% profit on the first renovation project, then use this profit to fund other development projects.

Market Segments

The current market that the ABC Corporation will address is currently fragmented among new building, renovations, and knockdowns. The other two options are limited by the parcels of land to develop and the restrictions placed on rebuilding.

This distribution is based on all of the homes that are currently on the market and have sold year to date in the over two million dollar price range.

Distribution of Houses in This Price Range

The price per square foot for renovations is much higher than the price for new housing. In order to maintain a conservative estimate of the sales price, our project has been priced at the price per square foot for which the new homes are selling.

This price per square foot is based on all of the homes that are currently on the market and have sold year to date in the over two million dollar price range.

Price per Square Foot of Houses

The ABC Corporation's target market includes anyone that makes over one million dollars per year. The following chart, according to our research shows by profession how this market segment is broken down by profession within the Sacramento metropolitan area. High-Tech suppliers are the companies that sell products to the computer industry. Franchises are the owners of the four pizza companies in the area and major owners of the other franchises. Non high-tech represents the executives of other major companies located in Sacramento (i.e. XtraSys, Blackrock Systems, Barrek Homes).

Brokers are real estate, insurance , and stock brokers. Business owners indicate owners of small businesses and independently wealthy people.

ABC Corporation's sole service is to develop a unique estate that can be marketed to a quantifiable market. There are currently only about 20 homes in this price range on the market to supply a market demand for over 85 families.

The number of families entering this market will be increasing which will make it easy to sell this estate for the premium price that it deserves.

Sales Targets

ABC Corporation should be able to sell the estate before the development has been completed.

The average number of days that homes over two million dollars were on the market in 1997 was 127 days. The chart below shows the trend of the average number of days to sell homes over two million dollars during the last five years.

Average Number of Days to Sell Homes

1993…………………………. 123

1994…………………………. 206

1995…………………………. 184

1996…………………………. 190

1997…………………………. 127

Rates are generally set by the average price per square foot of the homes being sold in the marketplace.

Advertising

We will utilize a variety of media to promote ABC Corporation.

Distribution of Advertising Budget

Newspaper advertising will be the primary source of advertising on a consistent basis, augmented with magazines, newsletters, and print material.

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Superdry plots emergency sale process if creditors block rescue plan

The struggling fashion chain would run a four-week auction probably resulting in a pre-pack administration if creditors block a restructuring plan, according to a document seen by Sky News.

City editor @MarkKleinmanSky

Tuesday 21 May 2024 10:00, UK

Superdry is preparing to run an emergency four-week sale process if creditors block its founder's plans to inject up to £10m of his own money into the fashion chain in a bid to stave off insolvency.

Sky News has learnt that the accelerated M&A process would be launched if a restructuring plan is not approved by creditors in the coming weeks.

Under the proposed survival plan, Julian Dunkerton would stump up either £8m in an open offer available to other shareholders or £10m in a placing that would only be accessible to him.

The share sale would precede Superdry's delisting from the London Stock Exchange.

The restructuring plan would need to be approved by creditors, including landlords, in the coming weeks.

According to a document circulated to creditors in recent days and seen by Sky News, rejection of the restructuring plan would be followed by a four-week sale process for Superdry, with the likely outcome of a pre-pack administration deal.

Sources said that Mr Dunkerton's willingness to inject such a substantial chunk of his own fortune into the company reflected his confidence in the company's turnaround prospects.

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Superdry's shares have slumped to a series of record lows in recent months amid dire trading and a failed sale process.

Keep up with all the latest news from the UK and around the world by following Sky News

Last month, Sky News revealed that M&G, the asset manager which owns Superdry's flagship store in central London, was weighing a challenge to its rescue plan.

M&G is believed to have been alarmed by the absence of their participation in a mechanism to allow creditors to benefit from any future recovery in the retailer's performance.

The restructuring plan will not entail immediate shop closures but will impose sizeable rent cuts on landlords of dozens of Superdry outlets.

Sources said the firm is also planning to pull out of a number of overseas markets, including the US.

On Tuesday morning, shares in the company were trading at around 6.7p, giving the indebted company a market capitalisation of less than £7m.

It recently agreed an increased borrowing capacity with Hilco Capital, one of its existing lenders, while it also owes tens of millions of pounds to Bantry Bay.

Mr Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares.

In recent months, Superdry has raised cash by offloading its brand in regions including India and Asia-Pacific.

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Superdry declined to comment.

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