Exercise 2. Study the example of the Engineering Consulting Business Plan.

StructureAll Ltd. - Consulting Engineers

Executive Summary

StructureAll Ltd. will be formed as a consulting firm specializing in structural engineering services. A home office in Yellowknife, NT will be established the first year of operations to reduce start up costs. The founder of the firm is a professional engineer with eighteen years of progressive and responsible experience.

Initial start up costs amount to $20,000. Of this total, $13,000 is required for start up expenses while the balance is to be placed in the company accounts as working capital. The founder, Philip Nolan, provided an initial investment of $20,000 towards start-up costs.

Projected sales and profits for the first three years of operation are summarized below:

Year	Sales($)	Profits($)	Sales/Profit(%)
	118,000	9,150	7.8
	130,000	12,650	9.8
	138,000	15,100	11.0

The firm will specialize in providing three dimensional modeling and visualization to our clients. State-of-the-art analysis and design tools will be an integral part of the business plan. Implementation of a quality control and assurance program will provide a focus for production work.

Highlights

Objectives

Revenues of $118,000 the first year, approaching $138,000 at the end of three years.

Achieve 20% of market value at the end of the third year of operation.

Increase gross margin to 80% by the third year of operations.

Mission

Our mission is to provide clients across Canada's North with structural engineering services for all types of buildings, from concept planning through to completion, with a highly skilled professional team working together, using common sense and practical experience.

Keys to Success

Provide professional quality services on time and on budget.

Develop a follow-up strategy to gauge performance with all clients.

Implement and maintain a quality control and assurance policy.

Company Summary

StructureAll Ltd. is a new company which provides professional engineering design services for clients which manage, maintain, and plan for residential, commercial, and industrial type buildings. Our focus will be the public sector market in remote communities across Canada's North.

Company Ownership

StructureAll Ltd. will be created as a limited liability company. The company will be privately owned by Philip D. Nolan. Leslie C. Goit will also be listed as a Director.

Start-up Summary

Our start-up expenses amount to $13,000, which allows for initial legal expenses, licenses, permits, stationary, specialty software, office equipment, and furniture. In addition to these start-up costs, an initial balance of $7,000 will be placed in the company accounts. The software purchases include an allowance of $5,000 for AutoCADD® 2000, $1,800 for National Master Specifications, and $200 for Quickbooks® (accounting package).

Philip Nolan will contribute $20,000 towards the overall start-up costs

Start-up

Requirements

Start-up Expenses

Professional Liability Insurance	$1,200
Web Site Development	$600
Legal Services	$500
Business Licenses	$1,000
Permit Holder ( NAPEGG )	$500
Software Purchases	$7,000
Stationery	$600
Office Furniture	$600
Office Equipment	$500
Other	$500
Total Start-up Expenses	$13,000

Date: 2016-01-14; view: 698

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