Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Free Business Planning Webinar:

AI and Your Plan Register Now

Construction Manufacturing icon Construction Manufacturer Business Plan

Start your plan

Fiberglass World, Inc.

Executive Summary

Fiberglass World, Inc. (Fiberglass World) is a start-up manufacturing company with patented products that will revolutionize the building industry. Fiberglass World is the exclusive manufacturer in the United States, and protected by a licensing agreement with the inventor of the Fiberglass Plate Products, Mr. John Thompson.

Fiberglass World is headed by Mr. Thompson, who has direct knowledge of the industry and extensive research experience. Mr. Thompson has been associated with the fiberglass industry for forty years, and has seen many developments in the aviation, marine, construction, and automotive manufacturing industries. There has been a need for new product innovation in the construction industry for a long time. This is what prompted him to develop an insulative fiberglass roof tile that can be manufactured in any color desired, and is price competitive. Using the same technology, he also developed the insulative fiberglass exterior panel. Both products have the molded, textured look of stucco.

Fiberglass World manufactures insulative fiberglass roof tiles and exterior insulative fiberglass structural wall panels. These products are called Fiberglass Plate Products (Fiberglass Plate). Both products are supported by two United States patents.

Construction manufacturer business plan, executive summary chart image

1.1 Mission

Fiberglass World strives to be the majority provider of this breakthrough product. We intend to accomplish this through a strict quality-control program, timely deliveries, and competitive pricing.

1.2 Keys to Success

  • Fiberglass World has developed insulative fiberglass roof tiles and insulative fiberglass structural exterior panels.
  • Fiberglass World is the exclusive manufacturer in the U.S. and is protected by a licensing agreement with the inventor who is the owner of the company.
  • The company will control its production line to assure that quality is met.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company Summary

Fiberglass World is a start-up manufacturing company with patented products that will revolutionize the building industry. It is the exclusive manufacturer in the U.S. and is protected by a licensing agreement with the inventor of the Fiberglass Plate products, Mr. John Thompson.

The company boasts many features which directly lead to it being the premier manufacturer of fiberglass materials in the United States. The following subtopics outline the some features of Fiberglass World: its locations, a description of what it will take to get the company up and running, and other elementary aspects of the company.

2.1 Company Ownership

Fiberglass World was founded in Tulsa, Oklahoma in September of 1999 by Mr. John Thompson. Fiberglass World is an Oklahoma C-Corporation, with principal offices located in Tulsa.

2.2 Start-up Summary

The company is seeking first round financing for the purpose of acquiring starting inventory of raw materials, purchasing land, building construction, utility hook-up and site improvement, machinery and equipment, working capital, legal and accounting costs, and miscellaneous start-up expenses. Additionally, the company will seek second round financing for fourth year, Phase II operations. Projected revenues will double during the 2000 to 2002 period.

Construction manufacturer business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $50,000
Building construction/Site improvement $200,000
Accounting $20,000
Insurance $100,000
Rent $56,000
Research and development $0
Utility hookup $1,000
Other $5,000
Total Start-up Expenses $432,000
Start-up Assets
Cash Required $35,000
Start-up Inventory $80,000
Other Current Assets $0
Long-term Assets $300,000
Total Assets $415,000
Total Requirements $847,000
Start-up Funding
Start-up Expenses to Fund $432,000
Start-up Assets to Fund $415,000
Total Funding Required $847,000
Assets
Non-cash Assets from Start-up $380,000
Cash Requirements from Start-up $35,000
Additional Cash Raised $0
Cash Balance on Starting Date $35,000
Total Assets $415,000
Liabilities and Capital
Liabilities
Current Borrowing $50,000
Long-term Liabilities $476,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $526,000
Capital
Planned Investment
Mr John Thompson $70,000
Mrs. Kim Thompson $38,000
Other Investors $213,000
Additional Investment Requirement $0
Total Planned Investment $321,000
Loss at Start-up (Start-up Expenses) ($432,000)
Total Capital ($111,000)
Total Capital and Liabilities $415,000
Total Funding $847,000

2.3 Company Locations and Facilities

The location of the first operating plant is planned for Tulsa, Oklahoma. This location was chosen because of its proximity to both road and rail transportation. The area has been designated by the state as an Enterprise Zone, thus offering us benefits and incentives to set up our operation.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Products

Fiberglass World has pioneered insulative fiberglass roof tiles and insulative fiberglass structural exterior panels. Both products have a molded texture look of stucco and are fire retardant. Fiberglass Plate will replace many systems now used in the construction industry. Fiberglass Plate fiberglass roof tiles and panels are lightweight and very energy efficient. The selling price of Fiberglass Plate fiberglass roof tiles and fiberglass exterior structural panels is competitive with any other top quality building material.

Fiberglass panels can be manufactured from 1/4″ to 3″ thick and can be marketed from $3.00 per square foot.  Fiberglass Plate roof tiles are priced at $450.00 per square. A square equals a section of roofing 10 feet by 10 feet. This selling price includes the finishing pieces. Fiberglass Plate Products have the molded texture look of stucco and can be manufactured in any color; both are fire retardant and meet all construction codes, are insulative, and offer a finished product with any desired features.

3.1 Product Description

Product #1 – Fiberglass Plate insulative roof tile.

Advantages:

  • Fiberglass Plate roof tiles can be manufactured in the traditional flat or curved style. 
  • Molded texture color impregnated gel coat used. 
  • Insulative core material used. 
  • Roof tiles weigh approximately 270 lb. per square. 
  • Any style can be manufactured for qualified projects. 
  • Multi-color tiles will be available. 
  • Fiberglass Plate roof tiles are fire retardant.

Product #2 – Fiberglass Plate insulative panels.

Advantages:

  • The insulative panels will enhance the esthetics of your property for years to come.
  • They can be ordered in any color.
  • They will be manufactured in various sizes for qualified projects.
  • The panels are energy efficient.

3.2 Competitive Comparison

Fiberglass World will primarily target the construction industry, and is looking to build alliances with industry leaders. Because of its exclusive status as the only company to manufacture these fiberglass products, the competition is constantly held at bay by Fiberglass World. We expect success; due to past marketing, we have evidence that Fiberglass World will be met with fervor in this lasting industry.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Market Analysis Summary

The industry of roofing, siding, and installation is a large one. Total annual sales in this industry amount to approximately $11 million and are projected to remain steady, if not increase. One reason for the prosperity of this industry is because there is such a large market. The company is primarily targeting the construction industry, where sales total $124,953 million annually.

Market Size Statistics

Estimated number of U.S. establishments 3,245
Number of people employed in this industry 35,179
Total annual sales in the industry $11 million
Average employees per establishment 11
Average sales per establishment $5.6 million

4.1 Market Segmentation

The roofing and siding industry is only a part of the overall construction industry, which includes contractors that perform almost any function of housing creation and alteration. Therefore, an accurate estimate of nationwide demand for Fiberglass World’s products would include the entire construction industry. This is broken up into the following segments:

Market size statistics–Single-family housing construction

General contractors primarily engaged in construction (including new work, additions, alterations, remodeling, and repair) of single-family houses.

Estimated number of U.S. establishments 218,2776
Number of people employed in this industry 831,158
Total annual sales in this industry $125 million
Average employees per establishment 4
Average sales per establishment $.6 million

This segment is comprised of companies that are involved in the smallest housing projects. However, the sheer size of the segment means that this will be the segment providing the majority of sales to Fiberglass World.

Market size statistics–Residential construction, nec

General contractors primarily engaged in construction (including new work additions, alterations, remodeling, and repair) of residential buildings other than single-family houses. This includes hotels, motels, apartments, and multi-family homes.

Estimated number of U.S. establishments 25,201
Number of people employed in this industry 114,523
Total annual sales in this industry $25 million
Average employees per establishment 5
Average sales per establishment $1.1 million

Market size statistics–Nonresidential construction, nec

General contractors primarily engaged in the construction (including new work additions, alterations, remodeling, and repair) of nonresidential buildings other than industrial buildings and warehouses. This includes commercial, institutional, religious, and amusement and recreational buildings.

Estimated number of U.S. establishments 44,505
Number of people employed in this industry 540,550
Total annual sales in this industry $205 million
Average employees per establishment 12
Average sales per establishment $4.9 million
Construction manufacturer business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Single-family housing construction 4% 218,276 227,007 236,087 245,530 255,351 4.00%
Other residential construction 3% 25,201 25,957 26,736 27,538 28,364 3.00%
Non residential construction 2% 44,505 45,395 46,303 47,229 48,174 2.00%
Total 3.61% 287,982 298,359 309,126 320,297 331,889 3.61%

4.2 Target Market Segment Strategy

The company is primarily targeting the construction industry, which are establishments primarily engaged in the wholesale distribution of roofing, siding (except wood), and insulation materials. Residential and commercial construction projects are at an all-time high and will continue to increase for years to come. It is important to realize that we have a very unique and much-needed product. The standard materials available are asphalt shingles, organic shingles, fibered cement shingles, metal roofing, clay tiles, concrete tiles, slate tiles, cedar shingles, recycled tile roofing, and solar shingles. 

Our product is entirely new, and we are introducing it into this industry: fiberglass insulative architectural roof tiles, (Fiberglass Plate). The average costs of the above products vary. While Fiberglass Plate is more expensive, it also offers an insulation factor that all other products do not incorporate. This effectively reduces costs for separate insulation products.

4.3 Industry Analysis

Market Analysis by Specialty (8-digit SIC Code)

SIC Code

SIC Description No Bus. % Total Total Emps. Total Sales Avg. Emps. Avg. Sales
5033-0000 Roofing, siding, and insulation 1,012 31.2 11,012 $3,058 11 5.8
5033-0100 Roofing and siding materials 731 22.5 8,326 $3,834 12 8.2
5033-0101 Asphalt felts and coating 51 1.6 534 $36.9 10 1.1
5033-0102 Felts, tarred 1 0 5 $.9 5 .9
5033-0103 Roofing, asphalt and sheet metal 402 12.4 4,648 $1,655 12 7.5
5033-0104 Shingles, except wood 10 0.3 132 $29 13 3.2
5033-0105 Siding, except wood 329 10.1 2,775 $647 8 3.3
5033-0200 Insulation materials 379 11.7 2,789 $814 8 3.0
5033-0201 Fiberglass building materials 104 3.2 2,656 $118.5 27 2.2
5033-0202 Insulation, thermal 220 6.8 2,247 $438 10 3.7
5033-0203 Mineral wool insulation materials 6 0.2 55 $3 9 .7
Total/Average 3,245 100 35,179 $10,637 11 5.6

Note: Not all establishments have a specialty. Sales figures are in millions.
 

4.3.1 Competition and Buying Patterns

Fiberglass Plate Products will be marketed initially in the Southern region of the United States. This selling area will utilize our entire production capability. The construction industry is on the move and we intend to have our percentage of this long lasting industry. Our past marketing shows a place for Fiberglass Plate and also shows a tremendous demand for these products. Both products are in the completed development stage and are ready for manufacturing. 

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Strategy and Implementation Summary

The company’s overall strategy is based on a continuous improvement process of setting objectives, measuring results, and utilizing feedback to facilitate further growth and progress. The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The market strategy is to capitalize on Fiberglass World’s alliances by securing city, parish, state, and government contracts.

5.1 Competitive Edge

Having both Fiberglass Plate installed offers the user an energy efficient system that will not fail. Fiberglass Plate Products are a true fiberglass system that meets the demands of today’s architectural designs and will continue to provide these desired features in the future. Fiberglass is a non-deteriorating material and all resins used are of the highest marine quality and are formulated to meet the required standard of Fiberglass Plate.

Fiberglass Plate roof tiles can be manufactured in the traditional design look of the curved Spanish terra cotta and the flat roof tile.  Any design may be used incorporating the insulative core material. The exterior flat panels incorporating the molded look of stucco will be manufactured in various sizes.

Some of the outstanding features of Fiberglass Plate that have become necessary in the construction industry include:

  • By conserving heat/cold within a structure, the panels are energy efficient.
  • The panels are lightweight and easy to install.
  • The product is cost effective because it services the insulative need as well.
  • They will not corrode and therefore require little maintenance. 
  • Guaranteed to be 100% waterproof.
  • All Fiberglass Plate products are fire retardant. 
  • The product is removed from the mold with a stucco look and texture. 
  • The insulative fiberglass exterior panels may be installed below grade.

The most important feature is the stability of Fiberglass Plate Products. In terms of manufacturing, Fiberglass Plate Products can be compared to a marine manufacturing process. All raw materials used meet the marine industry standard, and are built with the weight of water pressure in mind. The panels are durable, rugged, and meant to withstand  many pounds of pressure.

Quality control is very important. Keeping this in mind, we will control our production lines to assure that quality is met. All orders will be produced in a time frame as specified by the production manager.

5.2 Sales Strategy

Our sales program is as follows:

  • Create contacts with residential and commercial contractors.
  • Contact developers of residential and commercial properties. 
  • Contact and training for new “company approved” warranty installer contractors for Fiberglass Plate Products.
  • Special advertising efforts will be implemented on the Internet.
  • Set up advertising for local and national programs.
  • Participate at national and regional trade shows.
  • Employment of company sales representatives.
  • Contact major architectural firms.

5.2.1 Sales Forecast

The following chart and table outline our sales forecast.

Construction manufacturer business plan, strategy and implementation summary chart image

Construction manufacturer business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Roof Tiles $1,728,000 $5,184,000 $5,184,000
Siding Sheets $4,224,000 $8,449,000 $8,449,000
Total Sales $5,952,000 $13,633,000 $13,633,000
Direct Cost of Sales Year 1 Year 2 Year 3
Roof Tiles $966,177 $2,966,995 $2,896,436
Siding Sheets $2,361,765 $4,835,675 $4,720,676
Subtotal Direct Cost of Sales $3,327,942 $7,802,670 $7,617,112

5.3 Strategic Alliances

The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders.

5.4 Promotion

Fiberglass World advertises in the yellow pages, newspapers, radio, and billboards throughout the state. Fiberglass World will also gain considerable recognition through these additional promotional mediums:

  • Caps and T-shirts.
  • Signs
  • Word of mouth.
  • Incentives:
    •  As an extra incentive for customers and potential customers to remember Fiberglass World ‘s name, the company plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with the company logo.
  • Brochures:
    • The objective of a brochure is to portray Fiberglass World’s goals and products as an attractive functionality. It is also to show customers how to use the latest in technology as it relates to construction and building services.
  • Investment in Advertising and Promotion:
    • A fixed amount of sales revenues will go toward the state-wide Fiberglass World advertisement campaign. On an ongoing basis, Fiberglass World feels that it can budget advertising expenses at less than ten percent of revenues.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Management Summary

The company’s management is highly experienced and qualified, with seasoned investors. The company strives to hire qualified people who take pride in their work. The company’s management philosophy is based on responsibility and mutual respect. Fiberglass World maintains an environment and structure that encourages productivity and respect for customers and fellow employees.

The following subtopics outline both the management team, and its team of employees.

Fiberglass World’s management is highly experienced and qualified. Its key management team includes:

  • Mr. John Thompson, president and CEO. Mr. Thompson is a building consultant and specializes in product development and marketing. During the past two decades, Mr. Thompson has been contracted to design and manufacture a wide range of fiberglass products, from fiberglass housing for water treatment to designing and manufacturing a planter system.
  • Mrs. Kim Thompson, vice president. Mrs. Thompson has held several management positions with various companies in the real estate industry. She has also been involved in rental management and rental sales. She holds real estate salesman and broker licenses, and a community association manager’s license.

6.1 Personnel Plan

Fiberglass World is responsible to its employees, the men and women who work with the company throughout the state. At Fiberglass World everyone is considered as an individual, the company respects their dignity and recognizes their merit. Employees are encouraged to have a sense of security and pride in their jobs. Additionally, employees are free to make suggestions and complaints. The company affords equal opportunity for employment, development, and advancement for those qualified.

Personnel Plan
Year 1 Year 2 Year 3
General Manager $60,000 $60,000 $73,334
Production Manager $60,000 $60,000 $73,333
Office Manager $60,000 $60,000 $73,333
Safety Manager $60,000 $60,000 $60,000
Distribution & Inventory manager $60,000 $60,000 $60,000
Sales and Marketing Coordinator $0 $40,000 $60,000
Product developer $0 $40,000 $60,000
Sales Rep $0 $0 $35,000
Finance & accounting analyst $0 $0 $50,000
Other $0 $0 $0
Total People 0 0 0
Total Payroll $300,000 $380,000 $545,000

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

Funding Requirements and Uses:

The company is seeking first round financing for the purpose of acquiring starting inventory of raw materials, purchasing land, building construction, utility hook-up and site improvement, machinery and equipment, working capital, legal and accounting, and miscellaneous start-up expenses. The company will require additional investment or loans for Phase II, set to begin during the fourth year of operation.

7.1 Important Assumptions

The following table outlines important assumptions for Fiberglass World.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 39.17% 40.00% 39.17%
Other 0 0 0

7.2 Break-even Analysis

Construction manufacturer business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $275,977
Assumptions:
Average Percent Variable Cost 56%
Estimated Monthly Fixed Cost $121,670

7.3 Projected Profit and Loss

The following table presents year-end profit and loss projections for Fiberglass World. For a monthly analysis, please see the appendix at the end of the plan.

Construction manufacturer business plan, financial plan chart image

Construction manufacturer business plan, financial plan chart image

Construction manufacturer business plan, financial plan chart image

Construction manufacturer business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $5,952,000 $13,633,000 $13,633,000
Direct Cost of Sales $3,327,942 $7,802,670 $7,617,112
Royalties $0 $0 $2,044,800
Total Cost of Sales $3,327,942 $7,802,670 $9,661,912
Gross Margin $2,624,058 $5,830,330 $3,971,088
Gross Margin % 44.09% 42.77% 29.13%
Expenses
Payroll $300,000 $380,000 $545,000
Sales and Marketing and Other Expenses $857,541 $1,371,697 $1,605,710
Depreciation $55,000 $55,000 $55,000
Leased Equipment $15,000 $16,500 $18,150
Utilities $50,000 $157,000 $180,550
Insurance $109,500 $257,200 $422,920
Rent $28,000 $35,000 $36,750
Payroll Taxes $45,000 $57,000 $81,750
Other $0 $0 $0
Total Operating Expenses $1,460,041 $2,329,397 $2,945,830
Profit Before Interest and Taxes $1,164,017 $3,500,933 $1,025,258
EBITDA $1,219,017 $3,555,933 $1,080,258
Interest Expense $53,413 $68,990 $82,250
Taxes Incurred $431,700 $1,372,777 $369,345
Net Profit $678,904 $2,059,166 $573,663
Net Profit/Sales 11.41% 15.10% 4.21%

7.4 Projected Cash Flow

The cash flow projections for Fiberglass World are outlined in the following table and chart.

Construction manufacturer business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $5,952,000 $13,633,000 $13,633,000
Cash from Receivables $0 $0 $0
Subtotal Cash from Operations $5,952,000 $13,633,000 $13,633,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $50,000 $85,000 $85,000
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $47,600 $47,600 $47,600
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $6,049,600 $13,765,600 $13,765,600
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $300,000 $380,000 $545,000
Bill Payments $4,728,411 $11,048,606 $12,369,809
Subtotal Spent on Operations $5,028,411 $11,428,606 $12,914,809
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $17,000 $17,000 $17,000
Subtotal Cash Spent $5,045,411 $11,445,606 $12,931,809
Net Cash Flow $1,004,189 $2,319,994 $833,791
Cash Balance $1,039,189 $3,359,183 $4,192,973

7.5 Projected Balance Sheet

The table below shows our projected balance sheet for three years. Monthly figures for the first year are included in the appendices.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $1,039,189 $3,359,183 $4,192,973
Accounts Receivable $0 $0 $0
Inventory $320,314 $751,007 $733,147
Other Current Assets $0 $0 $0
Total Current Assets $1,359,503 $4,110,190 $4,926,120
Long-term Assets
Long-term Assets $300,000 $300,000 $300,000
Accumulated Depreciation $55,000 $110,000 $165,000
Total Long-term Assets $245,000 $190,000 $135,000
Total Assets $1,604,503 $4,300,190 $5,061,120
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $429,999 $950,920 $1,022,587
Current Borrowing $100,000 $185,000 $270,000
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $529,999 $1,135,920 $1,292,587
Long-term Liabilities $523,600 $571,200 $618,800
Total Liabilities $1,053,599 $1,707,120 $1,911,387
Paid-in Capital $321,000 $321,000 $321,000
Retained Earnings ($449,000) $212,904 $2,255,070
Earnings $678,904 $2,059,166 $573,663
Total Capital $550,904 $2,593,070 $3,149,733
Total Liabilities and Capital $1,604,503 $4,300,190 $5,061,120
Net Worth $550,904 $2,593,070 $3,149,733

7.6 Business Ratios

The following table outlines important ratios from the roofing, siding and insulation industry, as determined by the Standard Industry Classification (SIC) Index #5033, Roofing, Siding, and Insulation.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 129.05% 0.00% 14.50%
Percent of Total Assets
Accounts Receivable 0.00% 0.00% 0.00% 29.10%
Inventory 19.96% 17.46% 14.49% 26.30%
Other Current Assets 0.00% 0.00% 0.00% 25.10%
Total Current Assets 84.73% 95.58% 97.33% 80.50%
Long-term Assets 15.27% 4.42% 2.67% 19.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 33.03% 26.42% 25.54% 46.10%
Long-term Liabilities 32.63% 13.28% 12.23% 11.10%
Total Liabilities 65.67% 39.70% 37.77% 57.20%
Net Worth 34.33% 60.30% 62.23% 42.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 44.09% 42.77% 29.13% 17.60%
Selling, General & Administrative Expenses 32.89% 27.66% 24.98% 9.60%
Advertising Expenses 4.26% 2.28% 2.75% 0.20%
Profit Before Interest and Taxes 19.56% 25.68% 7.52% 2.00%
Main Ratios
Current 2.57 3.62 3.81 1.58
Quick 1.96 2.96 3.24 0.86
Total Debt to Total Assets 65.67% 39.70% 37.77% 57.20%
Pre-tax Return on Net Worth 201.60% 132.35% 29.94% 5.50%
Pre-tax Return on Assets 69.22% 79.81% 18.63% 12.80%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 11.41% 15.10% 4.21% n.a
Return on Equity 123.23% 79.41% 18.21% n.a
Activity Ratios
Accounts Receivable Turnover 0.00 0.00 0.00 n.a
Collection Days 0 0 0 n.a
Inventory Turnover 10.91 14.57 10.26 n.a
Accounts Payable Turnover 12.00 12.17 12.17 n.a
Payment Days 27 22 29 n.a
Total Asset Turnover 3.71 3.17 2.69 n.a
Debt Ratios
Debt to Net Worth 1.91 0.66 0.61 n.a
Current Liab. to Liab. 0.50 0.67 0.68 n.a
Liquidity Ratios
Net Working Capital $829,504 $2,974,270 $3,633,533 n.a
Interest Coverage 21.79 50.75 12.47 n.a
Additional Ratios
Assets to Sales 0.27 0.32 0.37 n.a
Current Debt/Total Assets 33% 26% 26% n.a
Acid Test 1.96 2.96 3.24 n.a
Sales/Net Worth 10.80 5.26 4.33 n.a
Dividend Payout 0.03 0.01 0.03 n.a

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Roof Tiles 0% $165,600 $172,800 $180,000 $151,200 $137,143 $124,695 $125,217 $119,003 $120,000 $137,142 $144,000 $151,200
Siding Sheets 0% $404,800 $422,400 $440,000 $354,409 $320,046 $320,000 $306,087 $306,087 $293,333 $335,238 $352,000 $369,600
Total Sales $570,400 $595,200 $620,000 $505,609 $457,189 $444,695 $431,304 $425,090 $413,333 $472,380 $496,000 $520,800
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Roof Tiles $92,592 $96,618 $100,643 $84,540 $76,681 $69,721 $70,013 $66,538 $67,096 $76,680 $80,515 $84,540
Siding Sheets $226,336 $236,177 $246,017 $198,161 $178,947 $178,922 $171,142 $171,142 $164,011 $187,442 $196,814 $206,654
Subtotal Direct Cost of Sales $318,928 $332,794 $346,661 $282,701 $255,628 $248,642 $241,155 $237,681 $231,107 $264,122 $277,328 $291,195
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
General Manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Production Manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Office Manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Safety Manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Distribution & Inventory manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Sales and Marketing Coordinator 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Product developer 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Rep 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Finance & accounting analyst 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $570,400 $595,200 $620,000 $505,609 $457,189 $444,695 $431,304 $425,090 $413,333 $472,380 $496,000 $520,800
Direct Cost of Sales $318,928 $332,794 $346,661 $282,701 $255,628 $248,642 $241,155 $237,681 $231,107 $264,122 $277,328 $291,195
Royalties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $318,928 $332,794 $346,661 $282,701 $255,628 $248,642 $241,155 $237,681 $231,107 $264,122 $277,328 $291,195
Gross Margin $251,472 $262,406 $273,339 $222,908 $201,561 $196,053 $190,149 $187,409 $182,226 $208,258 $218,672 $229,605
Gross Margin % 44.09% 44.09% 44.09% 44.09% 44.09% 44.09% 44.09% 44.09% 44.09% 44.09% 44.09% 44.09%
Expenses
Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Sales and Marketing and Other Expenses $71,462 $71,462 $71,462 $71,462 $71,462 $71,462 $71,462 $71,462 $71,462 $71,462 $71,462 $71,462
Depreciation $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583
Leased Equipment $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Utilities $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Insurance $9,125 $9,125 $9,125 $9,125 $9,125 $9,125 $9,125 $9,125 $9,125 $9,125 $9,125 $9,125
Rent $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333
Payroll Taxes 15% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $121,670 $121,670 $121,670 $121,670 $121,670 $121,670 $121,670 $121,670 $121,670 $121,670 $121,670 $121,670
Profit Before Interest and Taxes $129,802 $140,736 $151,669 $101,238 $79,891 $74,383 $68,479 $65,739 $60,556 $86,588 $97,001 $107,935
EBITDA $134,385 $145,319 $156,253 $105,821 $84,474 $78,966 $73,062 $70,323 $65,139 $91,171 $101,585 $112,518
Interest Expense $4,383 $4,383 $4,383 $4,383 $4,383 $4,383 $4,383 $4,383 $4,383 $4,383 $4,383 $5,197
Taxes Incurred $37,626 $54,541 $58,914 $38,742 $30,203 $28,000 $25,638 $24,542 $22,469 $32,882 $37,047 $41,095
Net Profit $87,793 $81,811 $88,372 $58,113 $45,304 $42,000 $38,457 $36,814 $33,704 $49,323 $55,571 $61,643
Net Profit/Sales 15.39% 13.75% 14.25% 11.49% 9.91% 9.44% 8.92% 8.66% 8.15% 10.44% 11.20% 11.84%

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $570,400 $595,200 $620,000 $505,609 $457,189 $444,695 $431,304 $425,090 $413,333 $472,380 $496,000 $520,800
Cash from Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash from Operations $570,400 $595,200 $620,000 $505,609 $457,189 $444,695 $431,304 $425,090 $413,333 $472,380 $496,000 $520,800
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $47,600
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $570,400 $595,200 $620,000 $505,609 $457,189 $444,695 $431,304 $425,090 $413,333 $472,380 $496,000 $618,400
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Bill Payments $24,128 $716,351 $499,666 $511,640 $347,723 $352,951 $365,081 $355,022 $354,469 $345,714 $429,643 $426,022
Subtotal Spent on Operations $49,128 $741,351 $524,666 $536,640 $372,723 $377,951 $390,081 $380,022 $379,469 $370,714 $454,643 $451,022
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,000
Subtotal Cash Spent $49,128 $741,351 $524,666 $536,640 $372,723 $377,951 $390,081 $380,022 $379,469 $370,714 $454,643 $468,022
Net Cash Flow $521,272 ($146,151) $95,334 ($31,031) $84,466 $66,744 $41,223 $45,068 $33,864 $101,666 $41,357 $150,378
Cash Balance $556,272 $410,121 $505,454 $474,423 $558,889 $625,633 $666,856 $711,924 $745,788 $847,454 $888,811 $1,039,189
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $35,000 $556,272 $410,121 $505,454 $474,423 $558,889 $625,633 $666,856 $711,924 $745,788 $847,454 $888,811 $1,039,189
Accounts Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Inventory $80,000 $350,821 $366,074 $381,327 $310,971 $281,191 $273,507 $265,271 $261,449 $254,218 $290,534 $305,061 $320,314
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $115,000 $907,092 $776,194 $886,781 $785,395 $840,080 $899,140 $932,127 $973,373 $1,000,005 $1,137,988 $1,193,872 $1,359,503
Long-term Assets
Long-term Assets $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000
Accumulated Depreciation $0 $4,583 $9,167 $13,750 $18,333 $22,917 $27,500 $32,083 $36,667 $41,250 $45,833 $50,417 $55,000
Total Long-term Assets $300,000 $295,417 $290,833 $286,250 $281,667 $277,083 $272,500 $267,917 $263,333 $258,750 $254,167 $249,583 $245,000
Total Assets $415,000 $1,202,509 $1,067,028 $1,173,031 $1,067,061 $1,117,163 $1,171,640 $1,200,043 $1,236,706 $1,258,755 $1,392,154 $1,443,455 $1,604,503
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $699,716 $482,423 $500,055 $335,972 $340,770 $353,247 $343,193 $343,042 $331,388 $415,464 $411,194 $429,999
Current Borrowing $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $100,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $50,000 $749,716 $532,423 $550,055 $385,972 $390,770 $403,247 $393,193 $393,042 $381,388 $465,464 $461,194 $529,999
Long-term Liabilities $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $476,000 $523,600
Total Liabilities $526,000 $1,225,716 $1,008,423 $1,026,055 $861,972 $866,770 $879,247 $869,193 $869,042 $857,388 $941,464 $937,194 $1,053,599
Paid-in Capital $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000
Retained Earnings ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($432,000) ($449,000)
Earnings $0 $87,793 $169,605 $257,976 $316,089 $361,393 $403,393 $441,850 $478,664 $512,367 $561,690 $617,261 $678,904
Total Capital ($111,000) ($23,207) $58,605 $146,976 $205,089 $250,393 $292,393 $330,850 $367,664 $401,367 $450,690 $506,261 $550,904
Total Liabilities and Capital $415,000 $1,202,509 $1,067,028 $1,173,031 $1,067,061 $1,117,163 $1,171,640 $1,200,043 $1,236,706 $1,258,755 $1,392,154 $1,443,455 $1,604,503
Net Worth ($111,000) ($23,207) $58,605 $146,976 $205,089 $250,393 $292,393 $330,850 $367,664 $401,367 $450,690 $506,261 $550,904

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan