Residential and Commercial Painting Service
Residential and Commercial Painting Service
COLOR MY WORLD, INC.
90 Dunes Blvd.
San Mateo, CA 94401
Color My World's team of painters will provide top-quality interior and exterior residential and commercial painting services to the local area. The owner of Color My World believes that most companies can be profitable and successful if they focus on maintaining customer satisfaction.
Color My World is a start-up company that will be incorporated. Color My World will be a sole ownership corporation. The owner will be investing significant amounts of his own capital into Color My World and will also be seeking a loan of $15,000 to cover start-up costs and future growth. Finally, Color My World will ask the bank for a $25,000 line of credit that will be used if necessary to cover unforeseen expenses.
Color My World will be located in a business mall in San Mateo, California. The facilities will include a reception area where clients can come in and buy paint and various paint tools such as brushes, rollers, etc. There will be storage area for inventory, an employee coffee room, and an office for the owner.
Color My World offers a full line of services primarily focused on interior and exterior residential and commercial painting. The firm also provides such services as drywall plastering, acoustical ceilings, pressure washing, and others. The idea is to provide clients with a broad range of related services that will minimize their need to employ a variety of different contractors. Color My World will focus on each job's cost while insuring quality.
Initially, Color My World will focus on residential and commercial customers in the San Mateo area. However, by the end of the first year, Color My World expects to be serving the entire San Diego area.
The objectives for Color My World are:
- Achieve sales revenues of approximately $600,000 by year end.
- Achieve a good mix of commercial and residential paint contracts in our first year.
- Expand operations to include all the Greater San Diego area.
The mission of Color My World is to provide top-quality interior and exterior residential and commercial painting services. Color My World will seek to provide these services in a way that is profitable for Color My World and makes the homeowners happy. In addition, we will strive to be environmentally friendly and reduce waste.
Color My World will seek to provide its painting services based on when they were booked. The owner sees each contract as a partnership between two parties with mutual needs, one being the homeowner who needs something painted, and the contractor who wants to maintain a long-term successful business relationship. With this approach we are hoping to get repeat business and many referrals.
Color My World will set up the following guidelines to reach its goals:
- Have one person assigned as the job planner and responsible for booking the time and date for each job.
- Assign one person at each job to be the person responsible to make sure the job is done right the first time and to deal with all client issues.
- Start a program for profit sharing for all employees. This will insure all employees are on board and committed to each job and each client.
|Total start-up expenses||$||20,000|
We will be buying all new equipment as listed below.
|4 Commercial paint spraying machines ($2,500 each)||$||10,000|
|200 each of the high grade paint brushes of various sizes||$||1,000|
|1,000 rollers of various sizes (along with all the paint trays and equipment)||$||2,000|
|2 Floor sanders ($3,000 each)||$||6,000|
|Miscellaneous paint equipment||$||5,000|
|Inventory for store front||$||10,000|
|First and Last months rent||$||1,700|
|Telephone setup fee||$||120|
|Office furniture and fixtures||$||2,500|
|Computers and office equipment||$||2,000|
|Clothing and uniforms||$||500|
|Gas and power||$||250|
|Accounting set up||$||500|
MONTHLY OPERATING EXPENSES
|Phone book advertising||$||75|
|Inventory (based on sales)||$||2,000|
|Cleaning clothing & uniforms||$||50|
|Gas & power to store/office||$||250|
|Accounting set up||$||125|
|Gas & fuel for truck||$||250|
|Salary for owner||$||4,000|
|Average salary for painters ($1,200 each for 4 painters)||$||4,800|
PRODUCTS & SERVICES
Color My World will sell paint products by the gallon and in five-gallon containers, along with stains and other painting products. We will also offer comprehensive interior and exterior painting services for both the residential and commercial markets.
Color My World services include:
- Full prep work
- Dry wall installing
- Fine detailing
- Complete carpentry work
- Specialty wall coatings (wallpaper and textured ceilings)
- Refinishing and touch up
- Stipple and smooth ceilings
- Wall pressure washing
- Wallpaper install and removal
- Deck and fence staining
- Special ceiling applications
Each project is based on the job and what is required. Prices are determined by the job, materials needed, etc.
The painting market is very competitive, but we are entering the market with unique services. The barriers to entry and exit in this market are very low, making this an industry with a large number of competing painting companies with high turnover rates.
Color My World believes that it can improve on the quality of services in this industry by using a different approach to the job. While all we really do is paint, in the end painting can be very different from one provider to another provider. We will provide high-end service and quality workmanship—that is the key to our success.
There are a lot of competitors for Color My World. The phone book contains listings for more than 40 painters and another 20 painters run ads in the local newspaper. This seems to indicate there is little room in the market for another painting company.
However, several factors are in our favor. A survey of all of these paint companies indicated that approximately 90% had a wait time of at least four weeks. This wait time indicates a strong need for the services and plenty of work available for all companies.
In addition, many of the painting companies-especially those who advertise in the newspaper—are not bonded or registered with the local Better Business Bureau. Because of this, many potential customers will refrain from using them and are thus these companies are not true competitors.
Color My World will focus on two markets within the industry: the residential segment which includes condos, home renovation, and new home building; and the commercial segment, which includes buildings used for professional purposes.
It is the goal of Color My World to eventually have approximately one-third of all business coming from the commercial segment. This market requires the shortest amount of time to complete projects and usually requires the least amount of specialized work. Since our projects impinge upon a business's profitability, it is absolutely crucial for our project manager to maintain tight time frames and keep the building owners informed of the job's progress.
Although the above is also true for the residential owner, time is not as critical to this market segment. Rather, quality and meeting the needs and wants of the client come first in the residential segment. The client is often willing to wait a little longer to have the project done to his or her specifications. The site manager must be willing to be more flexible and willing to meet the specific needs of the client.
This sector is highly seasonal. The busiest times are during the summer months when it is easy for a company to become so busy that it must turn down jobs. The down turn in the winter months has led Color My World to focus on building business in other areas that are connected to the renovation market. To that end, Color My World will also sell pre-made kitchen wall covering. These are one-piece units that cover whole areas of the kitchen. Color My World will make these in the shop and install them at the customer site as needed. These are profitable, especially in the winter months. In the summer, Color My World will focus on its mainline business—painting.
MARKETING & SALES
Color My World will price each project based on time, material, and a flat 5-10 percent profit margin, depending on the segment. In the first year or two, depending on sales, Color My World will focus more on establishing contracts than on maintaining its pricing structure. Therefore, profit margin may be a little low for the first couple of years.
Color My World will start an advertising plan that includes mailers and phone solicitation to get exposure to our market. With the end goal being market penetration, we will use all our resources to target the market that is willing to pay extra for quality workmanship.
Our sales forecast is based on the existing client base of the owner of Color My World and his hired painter subcontractors. Our reputation had led to these potential projects with little advertising or sales work involved.
Management consists of one person, Elliot Geran, who has extensive experience in the painting contractors industry. He has a long history of contacts in the market and a solid reputation with general contractors and the public in the area.
Each job will be assigned a lead painter; this painter then is responsible to the owner of Color My World. The lead painter does the job quote and then forecasts the profit for the job. When the job is done, the lead painter will be given a percentage of the profit of the job.