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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

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Strategy and Implementation Summary

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

5.1 Competitive Edge

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

5.2 Sales Strategy

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

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Commercial Buildings 19 22 25
Government Contracts 6 7 9
Other 0 0 0
Total Unit Sales 25 29 34
Unit Prices Year 1 Year 2 Year 3
Commercial Buildings $2,000,000.00 $2,200,000.00 $2,420,000.00
Government Contracts $500,000.00 $550,000.00 $605,000.00
Other $0.00 $0.00 $0.00
Sales
Commercial Buildings $37,484,763 $47,418,225 $59,984,054
Government Contracts $3,050,000 $3,850,000 $5,445,000
Other $0 $0 $0
Total Sales $40,534,763 $51,268,225 $65,429,054
Direct Unit Costs Year 1 Year 2 Year 3
Commercial Buildings $900,000.00 $945,000.00 $992,250.00
Government Contracts $250,000.00 $262,500.00 $275,625.00
Other $0.00 $0.00 $0.00
Direct Cost of Sales
Commercial Buildings $16,868,143 $20,368,283 $24,594,702
Government Contracts $1,525,000 $1,837,500 $2,480,625
Other $0 $0 $0
Subtotal Direct Cost of Sales $18,393,143 $22,205,783 $27,075,327
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Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Commercial Buildings 19 22 25
Government Contracts 6 7 9
Other 0 0 0
Total Unit Sales 25 29 34
Unit Prices Year 1 Year 2 Year 3
Commercial Buildings $2,000,000.00 $2,200,000.00 $2,420,000.00
Government Contracts $500,000.00 $550,000.00 $605,000.00
Other $0.00 $0.00 $0.00
Sales
Commercial Buildings $37,484,763 $47,418,225 $59,984,054
Government Contracts $3,050,000 $3,850,000 $5,445,000
Other $0 $0 $0
Total Sales $40,534,763 $51,268,225 $65,429,054
Direct Unit Costs Year 1 Year 2 Year 3
Commercial Buildings $900,000.00 $945,000.00 $992,250.00
Government Contracts $250,000.00 $262,500.00 $275,625.00
Other $0.00 $0.00 $0.00
Direct Cost of Sales
Commercial Buildings $16,868,143 $20,368,283 $24,594,702
Government Contracts $1,525,000 $1,837,500 $2,480,625
Other $0 $0 $0
Subtotal Direct Cost of Sales $18,393,143 $22,205,783 $27,075,327