# question about business plan presentation



## carolinahandyma (Jan 6, 2006)

Rick
Have you considered a loan instead of investors? You may have better luck with your local bank or with a SBA loan.

I agree with Carport and suggest having multiple service categories. For quantifying advertising results, you need to extrapolate your historical advertising ROI (return on investment). How much did you spend on advertising to yield x amount of sales results.


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## Carport King (Jan 7, 2008)

*I Agree With Toolbox!*

Mr toolbox has some great information. I remember when I went for a loan to buy a contracting company. My bank ask me for my business plan. At which I did have. I needed a loan for $80,000.

So I clearly understood my business and I started from scratch and built my business plan. This was my first shot at the plan but I wanted this company bad and I had only 10 days to get this company bought.

I can only say that I went above and beyond with my plan. I even had it put in a leather bound book. I remember to this day when I got the loan that the banker said it was the best business plan he had ever seen.

The one thing that impress the loan committee was the leather bound book. I followed my business plan and upgraded it as I went back to my bank and ask for 1 million dollar line of credit. Which I recieved with no problem.

So yes it is wise to have a business plan and then work the plan. Good luck


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## MOTB (May 13, 2009)

*An example business plan (for painters in this case)*

Hi all,
I am very happy with all the private communications and will go as fast as I can. Someone asked me to provide my business plan with excerpts on this forum (which I will not do unless it was a serious investor). However, here is an example of one that is for painters.
http://www.bplans.com/painting_contractors_business_plan/executive_summary_fc.cfm

There are many types of examples, and I am not endorsing the above format. I am just using it as a reference to show how organized you can attempt to make your business. In my personal circumstance, my plan is over 40 pages, but keep in mind that I am a software company with a national audience and larger competitor base and those factors take up much more planning when it comes to competitive differentiators. A local business will require less planning documentation.

While on that topic ... your plan should include your Competitive Advantages. Always assume that there is more than one company going after every company. Why will a customer choose you? Quality, Service, Price, Speed, Volume ???? Whatever your advantages are or will be, focus on why you will stand out from the rest.

Brian


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## rickmccarthy (Jul 9, 2009)

*profit pillar*

I understand the concerns some of you have posted and thank you for your participation in this post. Apparently I havent expressed my plan as well as I should have. As far as new construction is concerned there is simply to many guys around here willing to do the work for a free lunch. Making the profit margin way to small to be worth my time at least for residential, however I will use my contacts to aquire small comericial construction projects such as strip malls and banks. Although commercial contractors tend to want to keep 10% for a year after completion this is unnatractive to me but the margins are better in these projects. Also the scale of my company should be addressed yes it should only be about 5-7 trucks when complete that is in this city my business model will work in any city and I plan on being in quite a few. However I want a close knit proffessional team in each city about 5-7 proffessionals not 15 ok plumbers. I am after proffessional value driven market utilizing the latest technology to give superior results. If you want someone to unclog your commode for 50 bucks call someone else. As far as keeping my vehicles busy I know this market from experiance and the ad campaigns used. I have developed a marketing campaign far superior to the local competition and am confident I will be turning away the work I am not interested in. Call me a dreamer but I know my market and my trade. I do however need seed money to relize these goals. 

Thanks for everyones participation I find it very helpfull especially when it comes to presentation time.

Rick


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## MOTB (May 13, 2009)

*Executive Summary versus PowerPoint Presentation*

Rick,
To clarify my previous communications. There will be two forms of material needed for you to do a presentation. One is an Executive Summary (also referred to as Executive Introduction) that is a document you send out in advance so that an interested party can understand your model, market and requirements. I suggest you use a PowerPoint whenever do a verbal presentation. This allows you to accomplish two things:

1) You can elaborate on your Introduction with visuals in a focused manner and more importantly
2) It prevents you loosing your train of thought 

Some times you will be interupted with a question, and, by using a PowerPoint, you can politely say that you would like to save the questions until the end just so that you can remain focused. The PowerPoint demonstrates that you are organized so it is easier for someone to appreciate your statement. Your key issue is to ensure you present your entire presentation in 15 minutes or less then use all remaining time for questions, etc. You will be suprised how much can be said in that time frame when you do it right. I will follow up with mine after we get past the executive summary document.
Brian


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## Mike Finley (Apr 28, 2004)

rickmccarthy said:


> I understand the concerns some of you have posted and thank you for your participation in this post. Apparently I havent expressed my plan as well as I should have. As far as new construction is concerned there is simply to many guys around here willing to do the work for a free lunch. Making the profit margin way to small to be worth my time at least for residential, however I will use my contacts to aquire small comericial construction projects such as strip malls and banks. Although commercial contractors tend to want to keep 10% for a year after completion this is unnatractive to me but the margins are better in these projects. Also the scale of my company should be addressed yes it should only be about 5-7 trucks when complete that is in this city my business model will work in any city and I plan on being in quite a few. However I want a close knit proffessional team in each city about 5-7 proffessionals not 15 ok plumbers. I am after proffessional value driven market utilizing the latest technology to give superior results. If you want someone to unclog your commode for 50 bucks call someone else. As far as keeping my vehicles busy I know this market from experiance and the ad campaigns used. I have developed a marketing campaign far superior to the local competition and am confident I will be turning away the work I am not interested in. Call me a dreamer but I know my market and my trade. I do however need seed money to relize these goals.
> 
> Thanks for everyones participation I find it very helpfull especially when it comes to presentation time.
> 
> Rick


Oh boy, now I get it.


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## rickmccarthy (Jul 9, 2009)

Glad you got it Finley if there is anything else I can clear up for you let me know:thumbsup:


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## Mike Finley (Apr 28, 2004)

Carport King said:


> Mr toolbox has some great information. I remember when I went for a loan to buy a contracting company. My bank ask me for my business plan. At which I did have. I needed a loan for $80,000.
> 
> So I clearly understood my business and I started from scratch and built my business plan. This was my first shot at the plan but I wanted this company bad and I had only 10 days to get this company bought.
> 
> ...


 :laughing: Sounds like it's wise to have a leather bound book.


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## Mr. Insurance (Jul 15, 2009)

Yes, it is important to go the extra mile with your business plan. Making sure it has color graphs, plenty of useful information and bound nicely.


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## MOTB (May 13, 2009)

*Color graphs and useful info Yes, bounding "maybe"*



Mr. Insurance said:


> Yes, it is important to go the extra mile with your business plan. Making sure it has color graphs, plenty of useful information and bound nicely.


 I agree with going the extra mile on any graphs and useful information, but printing and binding it may be overkill. In three years of building my model and acquiring more than a half dozen investors, I have never delivered a hard copy of my business plan. It has always been electronic. However, I did go the extra mile to have a strong table of contents that is hyperlinked to the appropriate section. I have found that many investors will first gravitate to their area of expertise and will then back into the rest of the plan. You want to make it as easy as possible to do so. Brian


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## MOTB (May 13, 2009)

*Interim update, Rick's executive summary is coming along*

I just want to update everyone that Rick has been doing a fabulous job in fine tuning his introduction. I would say it is more than 50% complete now and it is totally different (better) than what was the original version he sent to me. Something that I think is important to know is that Rick has been open minded to suggestions and is definetely more concentrated on bringing his big picture into focus. Once he is done, I am sure he will resurface to discuss his feelings. At least he is putting his best efforts into his original post for guidance. Will update you soon. Brian


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## rickmccarthy (Jul 9, 2009)

I just wanted to thank everyone for there input. It has really helped me see things from different perspectives. Especially Brian you know what my first draft looked like YIKES Thanks again everyone please keep it up as all of this work will soon come to fruition. and you will have one of my shops by you soon!!!!

Thanks Again
Rick:clap:


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## Mike Finley (Apr 28, 2004)

Okey Dokey, can't wait.


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## MOTB (May 13, 2009)

*Rick is ready to post, a few comments first*

Hi all,
Well I think Rick has come up with a really good Executive Introduction. We did go back and forth, and Rick did have to research to come up with some market statistics. I did the best I could to help him organize his thoughts in a professional manner. I am going to ask Rick to post it to get your feedback. I will also guide Rick what to leave out, which will not impede you from offering an opinion. It doesn't matter if it pertains to the market, competition, costs, etc. Go for broke since it will only help Rick get stronger for when the potential investors start to ask questions. Thanks all.
Brian


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## rickmccarthy (Jul 9, 2009)

*Executive Introduction*

Hey Guys I posted my Executive Introduction later in this thread please give it a read and let me know what you think.
Thanks
Rick


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## concretemasonry (Dec 1, 2006)

*question about business plan presentation Reload this Page Reply to Thread*

Before you present it to a financial institution, investor etc., make sure you pay a financial person go over it and nit-pick it. They know what to look for that you do not see.

Make sure you have something about the future, planning and replacement of equipment.


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## rickmccarthy (Jul 9, 2009)

*Here is my Executive Introduction please comment*

This post is not a solicitation for money it is a reference for business development to soliciting commentsfor the business plan.


Advanced Plumbing Solutions​​Executive Introduction​ 
Advanced Plumbing Solutions, LLC (APS) is a professional plumbing service and repair company. Our objective is to create a first location becoming a flagship representation for a franchise opportunity that works anywhere in the country.

From the customers point of view APS is a 24/7 service that can respond to any situation, evaluate and diagnose the problem, and provide a solution. APS solves a problem, not only for their customers but for the industry as a whole. We do this by breaking the stereotype of the service plumber today. From the moment the customer calls they know they are dealing with professionals. 

Our national market is full of potential and rich with opportunity. On a national level our main competitor has reported having locations in 90% of the target audience in the United States. And last year their annual revenues were approximately $350 million.

We show up at the scheduled time in a clean well stocked vehicle that displays our name and logo. Our technicians are well dressed. After diagnosing the problem and fully explaining the solution we offer to inspect the rest of the plumbing in the home for preemptive maintenance. Once the inspection is complete and the solution has been explained we give the customer a flat rate price. Our vehicles are well stocked that we can fix virtually any problem on the spot. When the job is completed their home will be left cleaner then when we got there. Customers see us as the only source to solve all of their plumbing needs. 

Unlike typical service oriented companies, APS will run like a well oiled machine. The company will be centered with technology both from customer and employee perspectives. Vehicles will have GPS so that we will be able to tell where the vehicles are and for how long. No matter what state they are in. When a technician logs in at an appointment we will instantly know how much revenue was generated and what inventory needs to be restocked to bring the vehicle back up to par levels. It is our goal to create a close knit team of professionals approximately 5-7 for each shop, an easy to assemble team. 

We will gain new customers through customer referrals, print and alternate media advertising and website search engine optimization. Our print advertising will reach almost one million people in the local areas. Retention of these customers and word of mouth will allow us to reduce advertising costs over the years.

There are over 900,000 people in our flagship territory. Servicing 1% of the market will create our first year revenue of approximately $1.15 million. In order to achieve this we need to have adequate vehicles, inventory, advertising and manpower. We are seeking in order to complete our objectives and be profitable.

My background consists of having a Master Plumbing License, and I also bring 15 years of trade experience with 6 of those years working for various competitors in this market.

We have a unique opportunity to capture market share taking advantage of the current housing market where owners have chosen to remodel instead of moving as well as those who simply have to fix their aging home. 

Sincerely,

Richard McCarthy
07/09


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## rbsremodeling (Nov 12, 2007)

You make it sound too easy. You want there money. They want to know how you are going to pay it Back.



What happens if you don't reach 1% of your market my plan for that is?

How did you come up with the 1% as your service demographic?

Give a reason why you think you can serve that percentage, What is the typical demographic you will serve?

Your competitor gross 350 million, cool what was their profit on that. What percentage of their market do they serve compared to the market you will serve.

You will not run like a well oiled machine your first year. What systems, in detail do you have in place to help you from failing?

What specific software are you running how will it help generate revenue and increase productivity?

You have 15 years experience so what. What have you accomplished? What makes you leadership material. What are examples of things you have done to prepare to run a company?

Who are your employees what will make them you unique? Who is on your team?

People aren't spending money so how do you intend to get this direct link to customers and get them to spend money? Exactly how are you marketing you company to these homeowners? 

What will be you niche? I can open the phone book and find a million plumbers why do I call you?


You want me to give you how much money? Why? How did you arrive at that figure? Do you have data to support the money need to start up?


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## We Fix Houses (Aug 15, 2007)

This is what's going to occur.

"My background consists of having a Master Plumbing License, and I also bring 15 years of trade experience with 6 of those years working for various competitors in this market."

Your introduction and backround statement lacks even a word of "operations" knowledge or experience and areas that it may entail. You immediately on the first page create doubt in the minds of an investor. Why not add some additional boilerplate operations stuff to your intro page ? Is it because it would not be truthful ? 

A savy investor will tell you that you are desperately in need of an operations partner. You'll need to find a laid off supply salesman or woman or a contractor like yourself who didn't make the first time around that can express what the operations road entails. This may take a a couple of years but is going to be necessary for you to realize this dream.


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## We Fix Houses (Aug 15, 2007)

I gotta ask another question ? Why not concentrate on buying an existing plumbing business ? Most small business acquisitions are owner financed up to 60% - 80% because it the only way they can be financed and for the owner to get out. You already have cash flow, customers and the rest. There's got to be plenty of guy's trying to get out ? 

Once you apply your skills, getting rid of the deadwood, hiring a good mechanic or two, new office manager, then in a few years you go for this plan.

Have you looked into an existing biz ?


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## rickmccarthy (Jul 9, 2009)

*let me clear this up*

Yes there will be a trip charge, yes they will be trained to do a whole home inspection and upsell. That is what the bonus structure based on "excellent customer sevice" will be gauged by. My desire to pay salary with bonus comes from the experiance of working in a commission based shop. I want guys to give the same level of service whether they are changing a faucet cartridge or replacing a water service. While in this shop I saw good plumbers get upset because they thought other people got better calls. I also saw some guys put in twice the time for half the check based on the calls they went on. And the absolute worst was watching one guy take advantage of a old lady by charging $13000 to replace a sewer line that should have been 3 to 3500 at the most. So call me naïve if you must but I simply think I can prevent these issues with a basic salary bonus structure. And still give excellent customer service. 

Rick


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## rbsremodeling (Nov 12, 2007)

I do not think your are naive. I am just pointing out the flaws I have seen through the years of being in business

You sound like a guy that has a plan and a will to succeed. That is all it takes buddy.

:thumbsup:


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## Mike Finley (Apr 28, 2004)

Awesome.


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## rickmccarthy (Jul 9, 2009)

*I understand your comment*

I do want to emmulate the larger successful franchise. And for the most part. I will follow the same basic model. However I have always heard people complain on the down weeks some weeks they made good money others they would have made more at Mickey D's. All I am offering is stability with a reward for customer service or the upsell. We will have sales competitions and sign people up to our VIP list. Granted I didnt work at a large franchise. And there were definate management issues at the shop. But picture this if there ar 10 guys at a shop an 2 of them make 1500 a week relatively easily (within 40 hrs) and the other guys are taking all the calls they can and working 60 hrs but only bringing in 500-600 because they were on low money calls there will be issues. Yes this is a management issue, but when you have guys competing with each other for there livelyhood it creates internal stress. However if everyone is making 900 and then some are getting bonus on top of that at least everyone knows what they are going to make at a minimum week in and week out. so they can pay their bills and actually create a budget to live on. It is hard to sit down with your wife and make a budget based on well if i get at least 3 drain cleanings and water or sewer service then we can afford the new daycare but if not then uhoh.

Dont get me wrong I am not smarter then these large franchises. I simply would change that one aspect of the model based on what I have seen.
Give these guys some stability and still reward those that out perform and I think you will have a shop that runs a bit smoother. 

I may be wrong I may be crazy


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## MOTB (May 13, 2009)

*Executive Summary IS NOT a Business Plan*

Hi all,

I received a personal communication with another viewer asking if I could glance at their Business Plan. It was nothing other that a one page introduction, and even less than what I would call an Executive Summary. Just to be clear, a Business Plan is an elaborate document the defines the business, how you will market the product or service, pricing, expenses, etc. An example, and there are a ton of them for free or inexpensive can be found at Microsoft http://office.microsoft.com/en-us/templates/TC010175201033.aspx. I am not endorsing it, and am just using it as a reference. Preparing, researching and creating a business plan is no easy task so do not treat it as a start on Saturday and finish on Sunday topic since that is the furthest from the truth as you can get. If you are serious, then prepare to do a lot of education to get one that really promotes a "Plan".

Brian


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## silvertree (Jul 22, 2007)

I hate to admit this but my business plan is 12 pages including the swot page. 
I'm not much for planning, but when I got started it ended up being 12 pages. I just used a free outline I saw on the internet.


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## MOTB (May 13, 2009)

*12 pages is very good*



silvertree said:


> I hate to admit this but my business plan is 12 pages.


 That is still very good and probably broadstrokes the key elements of what makes you go into the direction you are trying to go. Mine is much larger, but only becuase it has to be since my plan encompasses not only building a software company but also how it will increase investor-shareholder value, which is a completely separate goal of getting more customers or making more money. My instinct that your 12 page plan as a contractor is larger than the vast majority of others. Good for you! :thumbup:


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## MOTB (May 13, 2009)

*naming your new company, separate thread*

I was asked for suggestions pertaining to naming for a new company. I did not want to cloud this forum thread and created a new thread to address the question http://www.contractortalk.com/f12/naming-your-new-company-thinking-smart-62128/#post728875


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## MOTB (May 13, 2009)

*So how is the process going?*

Hi Rick,
Did you hear from the potential investors? The best you can get at this stage of the game is to have them ask for a business plan, which would mean that your Executive Summary was good enough to catch their attention. Let me know since I would be glad to help on that too (if you want), but it is more brutal than the summary and I would need time to allocate.
Brian


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## rickmccarthy (Jul 9, 2009)

Yes, they responded almost immediately requesting a business plan. Which I am still working on. I would appreciate it if you could look it over when complete. I have also made several steps forward in getting this off the ground without financing. So either way I should be up and running by sept.
Thanks for all your help


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## MOTB (May 13, 2009)

*Continue on both, business then finance first*

Good for you ... definetely put more weight into moving the business forward with the assumption of no money coming. Then continue to develop your plan to follow through, with or without external money coming. Your paperwork will reflect what you have done so far, what you are going to do, and what you desire to do with more capital. Obviously a business plan is much more elaborate than an executive summary, so please give me at least one week's notice before you believe your draft will be complete so that I can be prepared to give my opinions. I just want to manage expectations on how fast I can flip it back to you (usually within two weeks to cover all my variables). You have my personal email so do it that way and then we can report back to the forum once we have begun the process. Have a good weekend.
Brian


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