Strategy and Implementation Summary

StructureAll Ltd. will focus on the Western Arctic area initially. We believe the creation of Nunavut will still provide opportunities for structural engineering services; however a separate Association of Professional Engineers for Nunavut is anticipated.

We are also licensed to practice in the Yukon Territories, although we have not planned for any aggressive marketing in this area.

The target client is usually an Architect Manager.

Competitive Edge

StructureAll Ltd. offers the following competitive edge:

State-of-the-art modeling, design, analysis, and drafting capabilities.

Quality control and assurance program.

An Internet website (http:\\www.structureall.com, and e-mail, info@structureall.com).

Marketing Strategy

The sections which follow describe in more detail our positioning statement, pricing, and promotion strategy.

Positioning Statement

For established engineering and architectural firms in Yellowknife who require structural engineering sub-consultant services, StructureAll Ltd. offers a competitive and economical option. Projects may be delegated to StructureAll Ltd. directly or arrangements can be made to supplement and assist their own in-house staff.

Pricing Strategy

Most consulting work is billed on an hourly basis to pre-determined levels dictated by project schedule milestones. We have assigned a rate of $80/hour for basic consulting services and $40/hour for drafting services. These are conservative values for the consulting market. We have used conservative unit rates to remain more competitive.

Promotion Strategy

We will be using the Internet extensively in our sales promotion. Together with a well targeted direct mail and e-mail campaign, we will make all the major players in the marketplace aware of our presence.

We will focus our limited advertising budgets to promote community sponsored events. We will also offer technical services at discount rates to non-profit organizations.

When travelling to remote communities, we will contact the local principals in elementary and high schools offering them a speaker on structural engineering as a career choice.

StructureAll Ltd. will apply for the Northwest Territories Business Incentive Policy. This policy is directed at those firms resident in the Northwest Territories and provides incentives with respect to evaluation of services.

Sales Strategy

Success in a consulting market is focused on client service and typically translates into repeat business. We will avoid the pitfall of buying a project, only to find the scope of work far exceeds renumeration.

When a potential client questions the cost of a project, we explain the benefits and refer to our proposal which clearly outlines the tasks to be performed. If the budget is for less money, then we must offer less service.

Billing rates are not negotiated. One exception to this rule would be for not-for-profit organizations where marketing can be traded for services in kind.

Sales Forecast

The following table and chart summarizes forecasted sales. We expect sales to remain at a constant level after three months of operation. We predict the first two months of operations will be slow. Revenues will be limited while a generic quality management plan is formulated and basic office administration tasks are completed.

Direct unit costs for the first year have been set at 30% of unit revenues, which yields a 70% gross margin. In the third year of operations, we plan to increase gross margin to 80% as a result of providing a more efficient service to our clients.

Our unit rate for basic consulting services has been set at $80/hour. This is a conservative assumption based on published salary guideline levels for engineering professionals. Our unit rate for CADD services is $40/hr.

Sales Forecast

Unit Sales	FY 2000	FY 2001	FY 2002
Project Consulting
Project Management
Home Inspections
Computer Aided Drafting Services		1,000	1,050
Total Unit Sales	1,916	2,120	2,250

Unit Prices	FY 2000	FY 2001	FY 2002
Project Consulting	$80.00	$80.00	$80.00
Project Management	$80.00	$80.00	$80.00
Home Inspections	$80.00	$80.00	$80.00
Computer Aided Drafting Services	$40.00	$40.00	$40.00

Sales

Project Consulting	$55,200	$60,000	$64,000
Project Management	$19,200	$20,800	$22,400
Home Inspections	$7,680	$8,800	$9,600
Computer Aided Drafting Services	$35,600	$40,000	$42,000
Total Sales	$117,680	$129,600	$138,000

Direct Unit Costs	FY 2000	FY 2001	FY 2002
Project Consulting	$24.00	$20.00	$16.00
Project Management	$24.00	$20.00	$16.00
Home Inspections	$24.00	$20.00	$16.00
Computer Aided Drafting Services	$12.00	$10.00	$8.00

Direct Unit Costs	FY 2000	FY 2001	FY 2002
Project Consulting	$16,560	$15,000	$12,800
Project Management	$5,760	$5,200	$4,480
Home Inspections	$2,304	$2,200	$1,920
Computer Aided Drafting Services	$10,680	$10,000	$8,400
Subtotal Direct Cost of Sales	$35,304	$32,400	$27,600

Sales Monthly

Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, which will be updated monthly to compare the variance and plan for course corrections.

Milestones

Milestone	Start Date	End Date	Budget	Manager	Department
Complete Incorporation	4/1/1999	4/15/1999	$500	PN	Administrative
Acquire Tradename for Internet Website	3/6/1999	3/6/1999	$400	PN	Administrative
Submit Business License Application to City	4/1/1999	4/16/1999	$250	PN	Administrative
Acquire WCB Coverage	4/1/1999	4/16/1999	$50	PN	Administrative
Apply for Staad-Pro Core Financing	4/1/1999	4/16/1999	$0	PN	Administrative
Acquire E&O Insurance	4/1/1999	4/16/1999	$1,200	PN	Administrative
Other	1/1/1999	1/1/1999	$0	ABC	Department
Totals	$2,400

Management Summary

StructureAll Ltd. will initially have one employee who is also acting as general manager. Phil Nolan will be responsible for all daily operations in the firm.

Management Team

Philip Nolan, P. Eng. has eighteen years of progressive and responsible engineering experience. Phil will be responsible for soliciting clients, marketing, promotion, and all daily aspects of running the business. He graduated from McGill University in Montreal, Quebec in 1981 with a Bachelor of Engineering degree. Following graduation in 1981, Phil worked for consulting engineers in Toronto, Ontario on a variety of transportation planning projects.

In 1982, Phil moved to Yellowknife where he worked for the GNWT as a Project Engineer. Phil gained experience working on a host of community development and transportation related projects, including Little Buffalo River Bridge, Bridge Inspections, and Bridge Rehabilitations. Phil was with the GNWT for six years.

From 1988 to 1991, Phil worked for Foundation Co. of Canada Ltd., a large multi-national contracting firm as a project engineer where he gained experience in the use of explosives at the Magpie River Hydro Development and continued gaining experience on several bridge projects.

In 1992, Phil worked for Reid Crowther & Partners Ltd. out of Edmonton, Alberta on a host of bridge design and rehabilitation projects, including the Whitemud Ravine Pedestrian Bridges.

From 1993 to 1995, Phil was self employed as a private consultant offering services in quality control and assurance for building construction where he gained considerable experience in Preserved Wood Foundations and their use in residential and commercial applications.

In May of 1995, Phil joined the Ferguson Simek Clark (FSC) team of professionals and was responsible for all structural design, including quality control and assurance services for schools, arenas, health centres, and other buildings. Phil will be the principal designer of all projects at StructureAll Ltd. Phil is currently working on a contract basis for Ferguson Simek Clark.

Date: 2016-01-14; view: 677

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