Formwork Construction Business Plan

Summary of three-year financial projections

Financial projections are based on sales volume at the levels described in the revenue section; it presents, to the best of management’s knowledge and belief, the company’s expected assets, liabilities, capital, revenues, and expenses. Further, the projections reflect management’s judgement of the expected conditions and its expected course of action, given the hypothetical assumptions.

Financial notes and assumptions

• Revenues will be derived from sales of services for the installation of reinforced-concrete utilizing formwork, reinforcing steel, embedded items, concrete placement, and engineering. Concrete Fabricators plans to bid and receive contracts for commercial concrete projects at all levels throughout the state. Management also expects to achieve a small percentage of revenues resulting from consulting services arising out of training.
• Annual Growth The company expects annual growth to increase by 110%, on the basis that the company will be stepping up its sales efforts, as well as initiating new partnerships and alliances that will foster growth and extensions of our existing markets. These strategies are designed to build momentum and critical mass within the company and its overall sales results.
• Cost of Goods Concrete Fabricators expects that its services will bear a reasonably high markup, which translates to a relatively low cost of goods. Cost of goods includes consideration for cost of equipment, cost of products, bank charges due to credit card transactions (not passed along to the consumer), and labor.
• Operating Expenses Concrete Fabricators groups sales and marketing expenses, and general and administrative expense items under this category.

7.1 Break-even Analysis

The Break-even Analysis chart and table show that if the costs stay at the current, or relatively stable, level we will be able to make an increased profit by the second year.

7.2 Projected Profit and Loss

The following table outlines our expected profit and loss for fiscal years 2000-2002.

7.3 Projected Cash Flow

The following chart and table show our estimated cash flow for this plan.

7.4 Projected Balance Sheet

The following table provides Concrete Fabricator’s projected balance sheets for 2000-2002.

7.5 Business Ratios

The following table includes Industry Profile statistics for the concrete work industry, as determined by the Standard Industrial Classifications (SIC) Index code 1799. These statistics show a comparison of industry standards and the key ratios for this plan.