Plan Outline
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SIC 1542 Building Cnstrctn - General Contractors & Operative Builders - Nonresidential construction, nec
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Commercial Construction Business Plan
Hard Hats Construction
Company Summary
Hard Hats Construction is a start-up managed by two partners who have 30 years of combined experience in the commercial construction business. With the extensive contacts that the two partners have in the commercial real estate business, it is estimated that the company will have a significant number of contracts within the first three years. These two partners represent sales/management, and finance/administration areas, respectively. The company will be seeking a $4.2 million Small Business Association (SBA) loan to cover the purchase of long-term assets, office setup, and cash requirements.
2.1 Company Ownership
Hard Hats Construction will exist as an equal partnership between the principles: Jack Daniels and Hank Foreman. As one of the company's goals is to focus on high quality workmanship, retaining as much talent as possible is crucial. Therefore, the company plans to add more partners to the firm as opportunities arise.
2.2 Company Background
Jack Daniels and Hank Foreman have known each other for many years. Mr. Daniels began working in the construction business immediately out of high school, and has proved himself as a equipment operator, construction foreman, and project manager. Mr. Foreman, after graduating from college with a degree in civil engineering, began work in the construction business with the North Carolina state highway system. After moving to San Francisco, Mr. Foreman received an MBA and worked for several construction firms in Oregon and Northern California as a general manager and financial analyst. Over the years, both individuals realized that the Pacific Northwest lacked a commercial construction company that could consistently provide high quality work and on-time delivery. With this in mind, and wishing to capitalize on this opportunity, the two investors have formed Hard Hats Construction.
2.3 Start-up Summary
The following chart and table show projected initial start-up costs for the firm.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $5,000 |
| Office Setup | $500,000 |
| Rent | $12,000 |
| Insurance | $5,000 |
| Utilities | $1,200 |
| Other | $1,000 |
| Total Start-up Expenses | $524,200 |
| Start-up Assets | |
| Cash Required | $1,500,000 |
| Other Current Assets | $100,000 |
| Long-term Assets | $2,500,000 |
| Total Assets | $4,100,000 |
| Total Requirements | $4,624,200 |
| Start-up Funding | |
| Start-up Expenses to Fund | $524,200 |
| Start-up Assets to Fund | $4,100,000 |
| Total Funding Required | $4,624,200 |
| Assets | |
| Non-cash Assets from Start-up | $2,600,000 |
| Cash Requirements from Start-up | $1,500,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $1,500,000 |
| Total Assets | $4,100,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $4,233,200 |
| Accounts Payable (Outstanding Bills) | $1,000 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $4,234,200 |
| Capital | |
| Planned Investment | |
| Investor 1 | $360,000 |
| Investor 2 | $30,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $390,000 |
| Loss at Start-up (Start-up Expenses) | ($524,200) |
| Total Capital | ($134,200) |
| Total Capital and Liabilities | $4,100,000 |
| Total Funding | $4,624,200 |
