TAILOR MADE BUSINESS SYNOPSIS EXTERIORS, LLC THE BUILDING & RESTORATION EXPERTS

Transcription

1 BUSINESS SYNOPSIS

2 Table of Contents

3 Introduction to Tailor Made Exteriors, LLC Tailor Made Exteriors, LLC, hereafter referred to as TME,, is a licensed general contractor with a base of operations in Kansas City Missouri. TME has regularly service outline areas to include Omaha Nebraska. With over 16 years of expertise as a family owned and operated business TME has made the decision to strategically expand their operations and join one or more multi-state contractor networks to provide a range of specialized services. TME has the resources and logistical experience to operate and manage projects in multiple areas at the same time. With mobile capabilities and an established base of contract workers TME can handle any small to large project. TME has manufacturer specific relationships with high quality product suppliers like Kaycan Siding Products ( ) and is working to build additional relationships that will allow TME to expand their client base. TME has one simple and direct intentional goal and that is to expand operations to service a larger multi-state area around their base of operations. Thank you for taking the time to read our Business Synopsis and please feel free to contact the Principal Owner and President of TME, Rick Mullin, anytime for additional information. Tailor Made Exteriors, LLC 317 NW Olive Lee Summit, MO office fax 1

4 Our Services TME specializes in the following services: Window Replacement Fire/Water/Smoke Restoration Siding Replacement Interior Restoration & Refinishing Triage & CAT Emergency Building Services Roofing & Guttering Services Window Replacement Fire / Water / Smoke Restoration Siding Replacement Triage & CAT Emergency Building Services Interior Restoration & Refinishing Roofing & Guttering Services 2

5 Our Team TME has a skilled Team of professional Project Managers and Superintendents who provide guidance and instruction to our in-house and sub-contractor personnel. From strict adherence to building and safety codes to inventory and supply chain management TME has an experienced and talented Team to get any job done. TME provides both residential and commercial services because the expertise of our Team allows us to bid on and obtain both small and large projects. TME s CBDT (core business development team) is managed by Principal Owner and President Rick Mullin who has 19 years of building experience. He has spent 16 years building a CBDT of skilled and knowledgeable individuals who work directly for TME as well as those who work as sub-contractors. 3

6 The Purpose of this Business Synopsis There are three primary reasons TME has chosen to create this Business Synopsis and they are: 1. To seek and obtain one or more forms of capital injections for the continued operations and expansion of TME. 2. To inform and use to attract potential associates, contractors, contractor networks, suppliers and vendors as a continuation of building TME s network base for the benefit to our clients and our operations. 3. To create a multi-functional tool in presentation form that will serve the direct and indirect goals of TME as a whole. The information contained herein will provide both specific and non-specific information about TME, our goals, our operations and our expansion plans. 4

7 Our Expansion Game Plan North Dakota South Dakota Nebraska Kansas Minnesota Wisconsin Iowa Illinois Missouri Expansion Game Plan Expand into Midwest States Increase Restoration Services Expand Our Mobile Capabilities WATER FIRE SMOKE TME will expand our mobile capabilities and increase the restoration services we offer and enter into other Midwestern States as a Contract Service Provider. By focusing our efforts on a targeted client base TME will not have major issues with local competitors that already provide services in the areas we will enter. 5

8 Awareness & Name-branding Campaigns Working through the channels of contractor networks TME will join and direct solicitation of our targeted clientele we will create awareness and ensure name-branding for TME. There will be four elements to our efforts related to Awareness and Name-branding for TME and they are: 1. Strategic Affiliation with recognized Contractor Networks whose sole purpose is to provide benefit to its members while providing reliable resources to new customers. 2. Intentional Targeting of specific Clients with whom TME wants to associate in which the Client has a need for ongoing services. 3. The implementation of superior customer services and on-time contract completion for every client to ensure satisfaction and referrals. 4. Direct mail and electronic media presentations using a combination of , web site and social networking site promotions. Initially TME will not spend money on television commercials, mass mailings or other common advertising or marketing techniques however TME will not rule out the possibility of doing so in the future. Strategic Affiliation Customer Targeting TME Customer Service Targeted Mail & Electronic Media 6

9 Customer & Client Profiles Property Management Individual Property Owners Insurance Companies Working with Property Management Companies, Individual Property Owners and Insurance Companies TME will be able to build a stable repeat client base while building our new referral base from satisfied customers and clients. 7

10 What We Offer TME offers a unique approach to relationship building that excludes industry standard sales pitches and involves providing ample information for our Clients and Customers to arrive at their own conclusion that TME is the right choice for them. Over our 16 years of operations TME has built a word of mouth client and customer base that has lead to our growth even during bad economical times. While TME acknowledges that any contract service provider that is dedicated to customer satisfaction can offer the same services we do TME feels that the majority of our competition fails to realize a sales pitch is not always needed. TME uses quality time tested materials and products and provides an excellent level of customer service beginning with information. TME believes that an informed client or customer will be much happier when they have arrived at their own decision to use TME. Our experience has proven time and again that our simple, low pressure approach leads to more frequent referrals and a higher level of verbal name-branding by our clients and customers. No one wants to be sold through high pressure over promising and under delivering and that is why TME stands firm on the fact that we are still The Building & Restoration Experts even when we choose not to reiterate that fact. 8

11 Competition Analysis On Point Restoration Service Magic Service Master Clean The Water Damage Team Tri State Flood The above 5 competitors specialize in fire, smoke and water damage restoration however it should be noted that they are limited to the types of actual rebuilding and restructuring work they do. Many of the above competitors who have nationwide franchise offices use independent contractors like TME to provide turn-key services. Each of the above 5 competitors operate within the Kansas City area and TME knows the types of services they offer and those they do not. 9

12 How Tailor Made Exteriors, LLC is Different TME offers turn-key project completion without the need to outsource specific fields of expertise to other companies that would otherwise be our competitors. Through our CBDT (core business development team) TME can coordinate estimation and bidding, redesign and engineering, construction and final preparation from plans to implementation. As a turn-key solutions provider TME is most likely to win the contracts from clients and customers who want a project manager with the expertise to handle the entire job. TME acknowledges that while some of our competitors have turn-key capabilities we believe our capabilities and portfolio will be the key to our growth and success long term. 10

13 The Future of Our On-line Presence TME is currently working with a Web Site Development Design Firm to design a visually stimulating and easy to navigate web site that will have multiple function that will include the following: Information on Our Services Material and Product Information on the manufacturer specific materials and products we use A Portfolio of Our Work showing photos and videos of our completed projects An Inquiry Page to request a quote or submit an inquiry Service Area Map Company and Project Manager Contact Information to include direct phone and access to members of our CBDT (core business development team) 11

14 Planned Technology Applications TME s Operations will be broken down into three individual categories by which each will utilize and maintain specific technology applications. Internal Office: Quickbooks Pro Accounting & Payroll Software ACT Contact Management Software Inventory Software On-site: Reliable Mobile Communications Panasonic Toughbook Computers Web Site: SEO (search engine optimization) Outlook Back-up Disc Storage & Archiving TME will utilize other technologies as needed however our goal will remain to be efficient while user friendly. 12

15 Our Service Areas Kansas City MO, Base of Operations for TME North Dakota Minnesota South Dakota Nebraska Iowa Wisconsin Illinois Kansas Missouri Planned Expansion Areas for TME 13

16 Alliances, Associations and Licenses Alliances TME will seek to form alliances with other service providers, manufacturers, suppliers and vendors to build a solid network base that will benefit our customer and clients as well as TME itself. Associations TME will form one or more associations with Contractor Network Associations and Groups whose primary focus is on matching customers and clients with service providers like TME. One of our primary target associations will be with Triage Network which can be seen on-line at for more information. Licenses TME will obtain and maintain business and contractor license in states where doing so is to the benefit of TME. In other areas TME will seek to associate with other licensed contractors and work under the umbrella of their operator license. TME will be compliant with all local, state and federal regulatory guidelines. In addition TME will build relationships with the local governments within the areas we service and maintain a fluent knowledge of all building codes. 14

17 Mobile Capabilities Currently TME has three truck and trailer units outfitted with tools and equipment that have mobile capabilities. As our business grows we will be adding on additional trucks and trailers along with tools and equipment. Each of our units now has the ability to perform almost any construction or restoration project completely with the exception being the need for specialty equipment which we only bring on site as needed. Our goals as we expand TME s operations will be to equip our mobile units as completely as possible while staging specialty equipment within the immediate service areas of each mobile unit for use as needed. TME will also expand into Texas and other southern states as the needs arise to provide emergency Triage and Cat repairs and building. Our Mobile Units 15

18 Financial Overview In the last three years TME has seen an annual reduction in our profitability due in part to three factors: 1. The national economical downturn in the residential and construction industries. 2. Limited surplus income to apply towards our expansion plans. 3. A purposeful reduction by TME in the number of low budget less profitable projects taken on by us. Year Pre-tax Income 2006 $2,900, $2,716, $1,100,000 Total $6,716, $2,900,000 $2,716,000 $1,100,000 TOTAL $6,716,000 TME acknowledges the challenges and difficulties associated with building a profitable business in this emerging financial climate however we have the foundation and capabilities to build upon that will ensure our success. Our Financial Pro-forma shown on page 17 is a generalized projection in which TME has chosen to use a three tier system relative to income and expenditures. TME will make our previous P&L Statements available for review and we encourage any potential creditor, lender, investor or partner to complete their own due-diligence to substantiate our claims. 16

19 Financial Pro-forma TME will generate over $3 million in revenues in 2009 and apply our surplus income along with the capital injections we receive from outside sources to implement our expansion plans. The following projections are created using a three tier system of income expectations over the next three years. This is based on what TME believes to be their 100% operational capacity in each year tiered down to 85%, 75% and 65% operational sales capacity. TME is basing the feasibility of our success on worst case scenarios where we use the 65% income capacity minus the highest level of debt servicing to arrive at the minimum pre-tax post expenditure profitability margins outlined on page % 85% 75% 65% Construction 4,500,000 3,825,000 3,375,000 2,925,000 Restoration 3,500,000 2,975,000 2,625,000 2,275,000 Totals 8,000,000 6,800,000 6,000,000 5,200, % 85% 75% 65% Construction 6,700,000 5,695,000 5,025,000 4,355,000 Restoration 5,800,000 4,930,000 4,350,000 3,770,000 Totals 12,500,000 10,625,000 9,375,000 8,125, % 85% 75% 65% Construction 10,000,000 8,500,000 7,500,000 6,500,000 Restoration 8,500,000 7,225,000 6,375,000 5,525,000 Totals 18,500,000 15,725,000 13,875,000 12,025,000 The above figures represent gross income prior to expenditure allocations and tax liability. 17

20 Profitability Margins TME is using a formula created by our CBDT (core business development team) that allows us to ensure a profit based on any scenario. While actual pre-tax post expenditure profitability is theory at this point our income history will substantiate our ability to meet the minimum expectations with ease. (*) Indicates pre tax post expenditure profitability projections for that year based on absolute worst case scenarios. Income Level High (70%) Moderate (60%) Low (50%) 100 % ,400,000 3,200,000 4,000,000 85% ,040,000 2,720,000 3,400,000 75% ,800,000 2,400,000 3,000,000 65% ,560,000 2,080,000 2,600,000 Breakdown 5,200,000-70% = 1,560,000* Income Level High (75%) Moderate (65%) Low (55%) 100% ,125,000 4,375,000 5,625,000 85% ,656,250 3,718,750 4,781,250 75% ,343,750 3,281,250 4,218,750 65% ,031,250 2,843,750 3,656,250 Breakdown 8,125,000-75% = 2,031,250* Income Level High (77%) Moderate (67%) Low (57%) 100% ,255,000 6,105,000 7,955,000 85% ,616,750 5,189,250 6,761,750 75% ,191,250 4,578,750 5,966,250 65% ,765,750 3,968,250 5,170,750 Breakdown 12,025,000-77% = 2,765,750* It is feasible to expect that TME will exceed the minimum income tier of 65% and experience a lower than high expenditure rate at least a few months out of the year. Even if this does not happen, the above figures still show TME s ability to service debt at the highest level and profit at the lowest tier of profitability. TME will work aggressively to exceed these financial projections. 18

21 Financial Stability TME s CBDT (core business development team) will ensure the financial stability of our company by implementation of the following: Working to Reduce Expenditures Aggressively Negotiating Material Costs Efficient Project Coordination and Logistical Mapping Timely Completion of Projects The above will give TME a greater profitability range and promote our business as a go to source for quality work and on-time project completion to our customer and client base. Our current checks and balances system will merge with our new expansion plans and this will give us the ability to maintain financial stability. 19

22 Outsourcing TME has an established resource base of reliable sub-contractors, specialty equipment providers and other technical specialists. As our operations grow we will increase our outsourcing to reduce our base overhead while maintaining our turn-key capabilities. As with any company outsourcing is a necessity and TME takes relationship building seriously. Our CBDT (core business development team) will grow and as a result new Team Members will bring a wider range of personal and professional knowledge to the table on all of our projects. Using ACT Contact Management software or another contractor specific program TME will build a data base of individual outsourcing resources to call upon as needed. This will help TME maintain financial stability by reducing the expenditures that would otherwise be allocated for in-house support that could not be utilized by TME on a daily basis. Outsourcing will be based on each project independently. 20

23 Suppliers TME has an ongoing working relationship with several item specific material and product suppliers and our intention is to build new relationships as we grow. TME s CBDT (core business development team) will focus on establishing new relationships with manufacturers and suppliers who provide products and services necessary for us to complete our projects. Some of these include but are not limited to the following: & Roofing 21

24 Logistics STANDARDIZE SIMPLIFY SYSTEMIZE STRAIGHTEN SCRUB TME will utilize a systematic process to handle supply and contractor logistics commonly referred to as JIT. JIT stands for just in time and this means that materials and products arrive at the project site just in time to be utilized and that sub-contractors are scheduled just in time to utilize those materials and products to complete the job. The 5S s of Simplify, Strengthen, Scrub, Systematize and Standardize is the internal protocols being used by our CBDT (core business development team) to streamline operations to increase efficiency and arrive at exact or under budget expenditures for each project. This 5S system works with our JIT methodology and is an ongoing evolutionary process. 22

25 Conclusion After reading this synopsis TME is confident that you will come to your own conclusions that we are a stable and capable company with high growth potential. We realize that you may have additional questions or information requests depending on what type of relationship you are considering with us and we stand ready to provide secondary information upon request. TME s intention to expand and grow is set and we remain flexible with regard to how we will accomplish this in the short term. Our business is operational and profitable now and our Team will work to build upon the solid foundation we now have to reach our goals. Please feel free to contact us anytime for additional information. We greatly appreciate the time you have taken to review this business synopsis and look forward to your communications. 23