H2O Industries

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Water Purification Business Plan

Management Summary

The management of H20 Industries is made up of individual shareholders with extensive expertise in the water treatment industry, as well as commercial and financial background.

6.1 Management Team

The management team is uniquely qualified to implement this business plan. The founders, John Jones and Dave Smith, have been active in the water treatment industry for years. John's experience working with dealers in application engineering and sales has prepared him well to present the H20 Industries dealership to water service companies that he already knows. His years of calling on dealerships in all aspects of the water industry have allowed him a birds-eye view of the prevailing marketing and business practices.

Dave has been involved in the manufacturing sector of the water industry and is well respected and connected there. His training and certification as a Professional Engineer give him an advantage when consulting with customers and prospective customers.

The person planned for the position of general manager has wide-ranging experience in finance and manufacturing. He is a former vice president of Chase Manhattan Bank, team leader of a development bank (Saudi Industrial Development Fund), and founder/general manager of a factory which, after 10 years of profitable operations, was bought out in 1989.

The production manager is a chemical engineer by education and professional experience, and has demonstrated his know-how by successfully managing the production activity in the factory despite the challenges presented by the present incomplete production line.

6.2 Personnel Plan

Regeneration Personnel:
A production manager must be a skilled chemical engineer with experience in water treatment applications. This person must be a hands-on individual supervising two assistants. The production manager will label the tanks as they are received to assure customer segregation and supervise the proper regeneration cycle, from separation through backwash, draw, flush, mix, and testing. The assistants will primarily be kept busy moving tanks from one stage in the regeneration cycle to the next, connecting the hosing, performing the chemical mix and draw according to the instructions of the production manager, adding salt to the brine tank, etc. The production manager is in place. One assistant is now in place. A second is needed.

An engineer/fitter is also needed to maintain the equipment and to make installations. This person is in place.

Sales and Marketing Personnel:
It is planned that both owners will continue to maintain their present positions. These sales positions require them to move about the territory which provides an excellent source of knowledge of customers for H20 Industries. This information will be communicated to the sales and marketing manager who will spend his time calling and visiting potential H20 Industries users. He will be paid a base salary plus commissions. The commission will be higher for landing a new customer, and lower for repeat sales. The commission schedule will be constructed in such a way as to permit an annual total compensation that will encourage excellent sales results.

General and Administrative:
An office manager is needed. Answering phones, primary contact with customers, incoming and outgoing mail, etc. He will be the main connection between the owners and the operations of the facility. Within six months, a part-time assistant will need to be added to keep pace with bookkeeping and management.

Delivery Personnel:
One driver, who has additional responsibilities, is now in place. A second will need to be added after approximately four months.

Personnel Plan
Year 1 Year 2 Year 3
Production Personnel
Production Manager $41,604 $41,600 $41,600
Assistant $20,796 $20,800 $20,800
Assistant $20,796 $20,800 $20,800
Engineer/fitter $31,200 $31,200 $31,200
Drivers $54,198 $58,400 $58,400
Other $0 $0 $0
Subtotal $168,594 $172,800 $172,800
Sales and Marketing Personnel
Sales Manager (base) $24,000 $24,000 $24,000
Sales Manager (commissions) $38,660 $51,000 $60,000
Name or title $0 $0 $0
Other $0 $0 $0
Subtotal $62,660 $75,000 $84,000
General and Administrative Personnel
Office Manager $39,996 $40,000 $40,000
Bookkeeper (part-time) $9,100 $15,600 $15,600
Name or title $0 $0 $0
Other $0 $0 $0
Subtotal $49,096 $55,600 $55,600
Other Personnel
Name or Title $0 $0 $0
Name or title $0 $0 $0
Name or title $0 $0 $0
Other $0 $0 $0
Subtotal $0 $0 $0
Total People 9 9 9
Total Payroll $280,350 $303,400 $312,400