Anywhere Remodeling

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Residential Remodeling Business Plan

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Company Summary

Anywhere Remodeling, Inc. started as a proprietorship originally named Right Stuff Construction in August 1989, serving Anywhere, World. Its customers pay 10-15% extra to feel "taken care of." Their need to trust a contractor allows them to feel comfortable with slightly higher than average prices.

2.1 Company Ownership

Anywhere Remodeling, Inc. is an S corporation owned in majority by its founder and president, Bob Hammer. There are two part owners: Steve Field & Bill Sales. Neither owns more than 15%, but both are active participants in management decisions.

2.2 Company History

Anywhere Remodeling, Inc. was founded in 1989 as a sole proprietorship registered in Anywhere, World as Right Stuff Construction, owned and operated by Bob Hammer. It was a originally a handyman business specializing in house painting.

After seeing an influx of competition in response to the recent housing crisis, Bob decided that the best way to adapt to the market was to take advantage of the fact that new building permits are down. The theory is that because new home construction is down, those people who have the extra money to spend will be more likely to hold on to their assets and remodel existing homes rather than go out and buy a new home.

Past Performance
FY 2006 FY 2007 FY 2008
Sales $250,000 $450,000 $750,000
Gross Margin $62,500 $112,500 $187,500
Gross Margin % 25.00% 25.00% 25.00%
Operating Expenses $187,500 $337,500 $562,500
Collection Period (days) 438 326 472
Balance Sheet
FY 2006 FY 2007 FY 2008
Current Assets
Cash $39,748 $44,165 $183,428
Accounts Receivable $240,000 $430,000 $735,000
Other Current Assets $8,938 $9,931 $31,380
Total Current Assets $288,686 $484,096 $949,808
Long-term Assets
Long-term Assets $63,040 $70,045 $145,879
Accumulated Depreciation $28,675 $31,861 $56,879
Total Long-term Assets $34,365 $38,184 $89,000
Total Assets $323,051 $522,280 $1,038,808
Current Liabilities
Accounts Payable $42,731 $53,000 $69,720
Current Borrowing $38,458 $24,965 $0
Other Current Liabilities (interest free) $0 $9,995 $0
Total Current Liabilities $81,189 $87,960 $69,720
Long-term Liabilities $30,143 $11,492 $0
Total Liabilities $111,332 $99,452 $69,720
Paid-in Capital $15,000 $7,000 $20,000
Retained Earnings $196,719 $415,828 $949,088
Earnings $0 $0 $0
Total Capital $211,719 $422,828 $969,088
Total Capital and Liabilities $323,051 $522,280 $1,038,808
Other Inputs
Payment Days 30 30 30
Sales on Credit $200,000 $375,000 $450,000
Receivables Turnover 0.83 0.87 0.61