Company Business Plan
KZN ROOFING SOLUTIONS
- Executive Summary
KZN ROOFING SOLUTIONS is a roofing stuffs provider and contractors which was established in 2014 by five members who have a solid background in the reinforced environment.
The company presently operates in the Coastal and Midlands countries of KwaZulu Natal but its vision is to spread out state broad.
KZN ROOFING SOLUTIONS supplies with IBR, Chromadek, and Aluminium roofing stuff and roofing sundries, we besides give expertness roofing advice and solutions to our clients.
Presently, the company has a staff compliment of 12 ( 12 ) appropriately qualified persons. The company is presently active in Ethekwini Municipality where we are supplying roof sheeting services. Due to the demand of roof sheeting, the company is presently active in all territories within KwaZulu-Natal Province.
1.1 Products & A ; Servicess
The Company is specialising in fabricating sheet metal to specification on behalf of its clients, which will include fabrication for other companies every bit good as roof sheeting contractors that have demands for roofing sheeting and troughs.
Our company strongest facets is to be able to keep profitableness in about any economic clime as jurisprudence require edifice proprietors have decently installed and maintained roofing and trough systems, which require quality fiction of sheet metal.
We supply IBR, Chromadek, Zinc Alum and Harvey Tile roofing stuff and we besides do roof installings
1.2Aim
- Develop KZN Roofing Solutions PTY ( LTD ) as a prime maker and distributer of ecologically friendly building stuffs.
- Maintain stringent criterions that comply with all OSHA Torahs as it relates to fabrication.
- Maintain LEED enfranchisement for all KZN Roofing Solution merchandises.
- Develop ongoing licensing and distribution relationships with companies that operate on an international footing.
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1.3Financing
- The start-up and initial investing into the company was provided by each of the five managers buying 5000 portions at R500.00 per portion which equated to R2, 500,000.00 investings per manager and hence R12, 500,000.00 in entire investing into the company for 30,000 portions.
- The company has been allowed to publish 50,000 portions ; hence 20,000 remain to be issued for future investings if required.
1.4Mission statement
We built our concern around a committedness in run intoing many demands required in building roofs. We know that with a combination of competitory monetary values and quality of goods services, we will be the roofing solution company of pick.
We will turn to our client’s needs through the Batho Pele rules ; adhere to the codifications of South African National Standards in order to supply quality service
Our authorization is to:
- construct a sustainable and professional administration that will be a preferable leader in roofing industry ;
- Strive to accomplish consumer satisfaction by accomplishing and transcending client outlooks.
- Create occupation chances that will lend positively to the development of the state
1.5Vision Statement
- Our vision is to be amongst the taking advanced South African group of companies with considerable growing in built environment.
- We plan to be the preferable roofing company in all roofing clients and Contractors.
- We will guarantee our quality of good and services and guarantee our acknowledgment additions from our dedication to excellence.
- In presenting a high degree of satisfaction with create a immense bond between our company and our clients
- In add-ons to the above we will guarantee that we bring this authorization to fulfilment by:
- Guaranting disciplined systems and good fiscal direction
- Empowering our staff and antecedently disadvantaged people by using direction experience of the industry a
- Showing inspirational and dynamic leading that will be a good illustration to other companies ;
- Keeping excellence and trueness that is upheld will be rewarded.
1.6Management Team
KZN ROOFING SOLUTIONS PTY ( LTD ) was founded, established in 2014 by 5 members that have a figure of old ages of experience in building. Through their expertness we are be aftering to convey our operations of the concern to profitableness within the first twelvemonth of operations.
- Market Analysis
The industry of roofing, fabrication and installing is really big and the entire one-year gross revenues in this company sum to about R 000000.00 and we project it to stay unchanged or to increase. One of the grounds we started this company is because of the big market where we aiming all building developments.
2.1.Market Cleavage
- Roof sheeting fabrication is merely a portion of the overall roofing company which includes installing, reding other roofing contractors ; give advice and preparation to our clients and clients. E.g. on roofs for new edifices and change to bing roofs.
- Construct a big referral web of clients that consist of roofing contractors, building companies, building direction companies, general contractors, and merchandise distributers.
- Establish connexions with countrywide distributers of roofing building stuffs.
2.2Selling Schemes
As Management our purpose is to utilize qualified advertisement and selling house to assist KZN Roofing Solution make its intended audience of roofing contractors and building based concerns. We will include traditional print and media publicizing methods every bit good as the Internet.
Construction trade shows, on-line advertisement activities, gross revenues development and viral selling runs will follow carefully orchestrated schemes by marketing forces experts.
Seasonably coverage of KZN Roofing Solutions inventions will be farther directed through on-going media affairs and other media mercantile establishments
The concern will make a wide networking for gross revenues agents to reach and develop relationships within major building companies and roofing contractors.
The Company intends to develop an independent gross revenues web that will run on a committee footing. At this clip, Management is developing a committee agenda that will supply agents with 5 % ( for big orders ) to 15 % ( for little orders ) committee for each gross revenues order. Prior to establishing operations, Management expects to hold three to four gross revenues agents that will run within the KZN state office. One of the keys in guaranting that the concern is successful is to supply equal roofing solution merchandise line to as many distribution channels as possible.
On a regular footing, the Senior Management Team and Gross saless Agents will go to industry conventions with a focal point on the building and roofing undertaking industry. In respects to conventions, the concern will regularly rent booths at exhibitions targeted at these concerns. Gross saless bundles and literature sing the Company’s web site, the KZN Roofing Solutions merchandises, and the costs associated with merchandises will be featured.
Using the aforesaid selling schemes, KZN Roofing Solution will concentrate on the low cost, commercial, environmentally friendly, and structurally unafraid nature of the Clients. The concern will showcase all of these points in all gross revenues literature produced and distributed by the Company. One of the extra focal points will be the revenue enhancement subsidies and revenue enhancement credits associated with utilizing environmentally friendly stuffs.
In footings of distributions, transporting of goods will be outsourced to a 3rd party seller. After an extended fiscal analysis, it was found that it is far less hazardous and far more cost efficient to contract a private bearer, such as DHL or FedEx, to manage all affairs associating to transporting. Both of these companies offer sophisticated and streamlined transit direction and bringing services for fabrication concerns. All direct gross revenues will be made through retail gross revenues spouses, which Management will procure prior to the oncoming of gross bring forthing concern operations.
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3.Scheme and Implementation Summary The company’s overall scheme is based on a uninterrupted betterment procedure of puting nonsubjective, mensurating consequences, and using feedback to ease farther growing and advancement. KZN Roofing Solution plans to quickly develop marketing confederation with industry leaders and prosecute new gross revenues of its services to residential and commercial builders. 4.Start-up Summary |
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Projected Startup Cost |
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Legal |
R 20 000.00 |
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Office Equipment |
R 129 600.00 |
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Office Rent |
R 34 400.00 |
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Insurance |
R 15 000.00 |
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Ad |
R 50 000.00 |
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Machinery |
R 785 000.00 |
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Consumables |
R 38 000.00 |
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Finance Charge – Forklift |
R 21 000.00 |
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Motor vehicle disbursals |
R 55 000.00 |
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Tools and Equipment |
R 50 000.00 |
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Working Capital |
R 500 000.00 |
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Entire start-up cost |
R 1 698 000.00 |
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5. Fiscal Plan |
We expect to raise R1, 698,000.00 of our ain capital, and to sell our merchandise so that we will be able to break-even without borrowing from the bank but should we neglect to make the mark so we will see borrowing a loan from the bank. This provides the majority of the start-up funding provided.
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Financing |
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Equity Contributions |
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Management Investing: |
R 1 698 000.00 |
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Member 1 |
R 339 600.00 |
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Member 2 |
R 339 600.00 |
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Member 3 |
R 339 600.00 |
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Member 4 |
R 339 600.00 |
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Member 5 |
R 339 600.00 |
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Entire Equity Financing |
R 1 698 000.00 |
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Banks and Lenders |
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Banks and Lenders |
R 0.00 |
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Entire Debt Financing |
R 0.00 |
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Entire Financing |
R 1 698 000.00 |
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5.1 Jutting Net income and Loss |
As the net income and loss tabular array shows, we expect to be more profitable in every twelvemonth of concern.
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Pro-forma Net income and Loss ( Yearly ) |
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Year |
1 |
2 |
3 |
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Gross saless |
R 6 880 545.00 |
R 7 499 793.00 |
R 8 174 775.00 |
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Cost of Goods Sold |
R 688 054.50 |
R 749 979.30 |
R 817 477.50 |
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Gross border |
90.00 % |
90.00 % |
90.00 % |
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Operating Income |
R 6 192 490.50 |
R 6 749 813.70 |
R 7 357 297.50 |
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Expenses: |
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Cold Form Rolling Machine |
R 735 000.00 |
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Consumables |
R 55 000.00 |
R 60 500.00 |
R 66 550.00 |
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Depreciation on Equipment |
R 43 752.00 |
R 48 127.20 |
R 52 939.92 |
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Electricity and H2O |
R 54 000.00 |
R 59 400.00 |
R 65 340.00 |
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Finance charges ( Vehicles ) ) |
R 61 440.00 |
R 67 584.00 |
R 74 342.40 |
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General Expenses |
R 5 900.00 |
R 6 490.00 |
R 7 139.00 |
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Insurance |
R 21 600.00 |
R 23 760.00 |
R 26 136.00 |
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Motor vehicle disbursals |
R 23 800.00 |
R 26 180.00 |
R 28 798.00 |
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Postage and Stationary |
R 1 800.00 |
R 1 980.00 |
R 2 178.00 |
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Repairs and Maintenance – Machinery |
R 4 800.00 |
R 5 280.00 |
R 5 808.00 |
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Rent |
R 396 000.00 |
R 435 600.00 |
R 479 160.00 |
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Wages and Wagess |
R 480 500.00 |
R 528 550.00 |
R 581 405.00 |
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Commission – Representatives |
R 19 900.00 |
R 21 890.00 |
R 24 079.00 |
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Staff Expenses |
R 1 500.00 |
R 1 650.00 |
R 1 815.00 |
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Telephones |
R 12 000.00 |
R 13 200.00 |
R 14 520.00 |
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Finance Charges ( Forklift ) |
R 48 000.00 |
R 52 800.00 |
R 58 080.00 |
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Entire Operating Costss |
R 1 964 992.00 |
R 1 352 991.20 |
R 1 488 290.32 |
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Earnings before interest taxes depreciation and amortization |
R 4 227 498.50 |
R 5 396 822.50 |
R 5 869 007.18 |
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Federal Income Tax |
R 735 399.00 |
R 828 051.00 |
R 917 269.50 |
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State Income Tax |
R 111 426.00 |
R 125 464.50 |
R 138 978.00 |
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Interest Expense |
R 137 623.50 |
R 128 068.50 |
R 117 621.00 |
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Depreciation Expenses |
R 61 876.50 |
R 61 876.50 |
R 61 876.50 |
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Net Net income |
R 3 181 173.50 |
R 4 253 362.00 |
R 4 633 262.18 |
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Net income Margin |
46.23 % |
56.71 % |
56.78 % |
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5. 2 Jutting Cash Flow |
The hard currency flow projection shows that get downing cost and commissariats for ongoing disbursals are equal to run into our demands until the concern itself generates its ain hard currency flow sufficient to back up operations.
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Pro-forma Cash flow ( Annually ) |
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Year |
1 |
2 |
3 |
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Gross saless |
R 6 880 545.00 |
R 7 502 775.00 |
R 8 174 775.00 |
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Operating Costss |
R 3 964 012.50 |
R 4 112 493.00 |
R 4 460 064.00 |
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Earnings before interest taxes depreciation and amortization |
R 2 228 467.50 |
R 2 637 316.50 |
R 2 897 233.50 |
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Taxs, Interest and Depreciation |
R 1 046 314.50 |
R 1 143 460.50 |
R 1 235 755.50 |
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Net Net income |
R 1 182 153.00 |
R 1 555 732.50 |
R 1 723 354.50 |
6. Decision
As is apparent from the information above, we have a thorough cognition of in the concern and the industry within which we operate. We have the ability and the necessary expertness to successfully and undertaking within the building industry and do an empathic success of our concern.
