1.0 Executive Summary
The purpose of this business plan is to secure $250,000 for the development of a roofing company based in Orlando, Florida. Matt’s Roofing Solutions LLC (“the Company”) was founded this year by Matthew Deutsch. Full scale revenue generating operations are expected to commence in the third quarter of next year once the capital has been secured and the operating assets have been acquired.
Operations
The Company will generate revenues across a number of different service centers. Most importantly, Matt’s Roofing Solutions will produce substantial fees when new roofs are installed at residential and commercial properties. The Company will typically generate $8, 000 to $50,000 for each of these engagements. This will be the highest profit center for the business.
In addition to providing new roof installation, the Company will provide ongoing repairs and maintenance. This is an extremely important aspect of the company’s operations as it will produce highly predictable streams of income. These revenues are not impacted by challenging economic climates given that having a functioning roof is an absolute imperative for any structure.
The third section of this roofing business plan will further discuss operations.
The Financing
As noted above, the Company is currently seeking $250,000 via a business loan. Matthew Deutsch will contribute $50,000 towards the development of Matt’s Roofing Solutions. Primarily the funds will be used for the following:
• Office development in Orlando
• Vehicles and roofing equipment
• Working capital
As roofing enterprises are highly scalable businesses, the Company could easily secure additional capital on an as-needed basis to acquire additional operating assets or to develop satellite locations within other markets of Central Florida.
The Future
Through numerous ongoing marketing strategies, Matt’s Roofing Solutions is poised to become one of the most recognized roofing contracting businesses within Orlando in the Central Florida area. The Company will continue to hire staff roofers that will be able to take on larger engagements as the company expands. Additionally, given the population dense nature of this market, the Company can easily establish satellite locations based on demand.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The funds discussed in the executive summary will be allocated as follows:
2.2 Management and Investor Equity
Matthew Deutsch retains a 100% ownership interest in the business.
2.3 Exit Strategies
As roofing contracting businesses are highly stable construction focus enterprises, there is an immense demand among entrepreneurs to acquire these types of companies. In fact, one of the common trends in this industry is that private equity firms have begun to implement roll up strategies within this specific industry. There is an immense potential to sell the business for a significant earnings multiple to an entity of this nature. Historically, roofing contractors have a price to earnings ratio of three times to four times the prior year’s EBITDA.
3.0 Operations
Matt’s Roofing Solutions has been designed to provide comprehensive roofing services for both residential and commercial properties. The business will directly employ staff so that the Company has full control over each engagement.
A major focus of the Company’s operations will be to provide new roofs for structures within Orlando. Given the substantial and ongoing issues with inclement weather in this market, there’s an immense demand for Company to provide comprehensive roofing solutions. The company expects to generate $8,000 to $50,000 for each of these new installation engagements.
The highly predictable streams of revenue from ongoing roof maintenance will also be a major component of the success of Matt’s Roofing Solutions. For these engagements, the company will typically generate $200 to $2,000 depending on the scope of the work that needs to be done. This will include replacement of skylights that are leaking.
The Company will maintain all proper licensure within the State of Florida as well as numerous insurance policies to address potential liabilities resulting from accidents.
4.0 Overview of the Organization
4.1 Registered Name
Matt’s Roofing Solutions LLC. Business is registered as a limited liability company in the State of Florida.
4.2 Commencement of Operations
Revenue generating operations will commence in the third quarter of next year.
4.3 Mission Statement
To provide comprehensive roofing services on a cost-effective basis to clients throughout Orlando and the Central Florida area.
4.4 Vision Statement
To become a widely respected roofing business that is widely recognized for the quality of workmanship.
4.5 Organizational Objectives
• Properly higher roofers that will be able to provide services to clients at job sites.
• Adhere to all safety regulations as it relates to providing roofing services.
• Use multiple forms of advertising in order to create a highly established brand name for the Company in the coming years.
• Establish ongoing relationships of general contractors that will provide referrals to the business.
• Maintain subcontractor relationships with construction companies and real estate developers that will have the business place new roofs on properties that are in development.
• Become a member of numerous chambers of commerce as well as construction focused trade organizations within the Central Florida market.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the roofing business plan will discuss the current economic climate, the industry, the client profile, and the ongoing competition that Matt’s Roofing Solutions will face.
As a result of changing trade policies, there has been a moderate degree of volatility introduced to the economy. Inflation has increased at a rate that is higher than typically expected. It is fully anticipated that interest rates will be lowered in the coming months in order to address these issues, especially as it relates to ensuring ongoing employment.
However, issues with economy will only have a modest impact on Matt’s Roofing Solutions’ ability to remain economically viable. It is no secret that a properly functioning roof is absolutely imperative for any structure. Water damage can cause significant and extremely expensive repairs. Although the demand for new roofs may decline slightly during very challenging economic climates, the Company will be able to generate highly predictable income from repair and maintenance operations.
5.2 Industry Analysis
There are 100,000 companies that provide roofing services to the general republic. These businesses aggregately produce $100 billion of annual revenue. The industry employs 300,000 people.
One of the common trends within this industry is to use environmentally friendly material materials when installing and repairing roofs. Matt’s Roofing Solutions is committed to using the latest in roofing technology for all client engagements.
5.3 Customer Profile
The demographic profile noted below will be implemented through the Company’s wide ranging marketing campaigns:
• Annual household income ranging from $85,000 to $250,000+
• Will spend $8,000 to $15,000 per engagement
• The property is located within 75 miles of the Company’s location in Orlando.
5.4 Competitive Analysis
This roofing business plan has been developed specifically as a sample to show to potential clients. If this was completed as an actual engagement, then an analysis regarding all roofing companies within the target market would have been conducted. This would have included an estimation of their anticipated annual revenues, length of time in business, and other attributes that would need to be addressed as a business establishes its operations.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Matt’s Roofing Solutions will have sustainable operations as a result of the following:
• A highly experienced Founder and CEO, Matthew Deutsch, will be able to effectively establish and expand the operation to Matt’s Roofing Solutions.
• Due to issues with inclement weather, the Company will be able to frequently be called upon the installation of new roofs.
• Highly predictable income from ongoing repair and maintenance operations.
• The operations of Matt’s Roofing Solutions are highly scalable, and the Company can establish satellite offices throughout the Central Florida market.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued hiring of additional roofers in order to boost the billable operations of the business.
• Expansion to include other markets in Florida.
• Potential acquisition of companies that operate in a similar capacity
7.0 Marketing Plan
7.1 Marketing Objectives
• Conducted extensive direct outreach with real estate developers and construction firms in the Central Florida area.
• Use multiple forms of online advertising, including a proprietary website and targeted advertisements.
• Maintain ongoing relationships with referring contractors in the greater Orlando area.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• First year revenue will reach $1.08 million
• During this year, the Company will complete at least 30 new roof installations.
Year 2
• In the second year of operation, total revenue will reach $1.2 million.
• The Company will onboard additional roofers.
Years 3-5
• Revenue will reach $2.3 million by Year 5.
• At this time, the Company will enter other market areas of Florida.
7.4 Marketing Strategies
Foremost, the Company intends to conduct an extensive amount of direct outreach with real estate developers and construction firms that operate within Orlando and the greater Central Florida area. In many instances, real estate developers will often outsource the installation of roofs onto newly established properties as a cost saving measure. Given the immense demand for real estate within Orlando, there is a substantial opportunity to establish these types of relationships throughout the life of the business. This will be complemented with the establishment of relationships among general contractors and specialty contractors via ongoing referrals.
In regards to the Company’s website, this will be a search engine optimized platform specific for the Orlando market area. The website will showcase the Company’s ability to install new roofs, maintenance/repair services, general information about the business’ operations, licensure information, and contact information. The Company will continually add new content regarding roof maintenance in order to ensure that the platform is viewed as an educational resource for everything related to roofing.
The business will also maintain a presence among all social media platforms with the intention of creating a substantial number of followers. The business will use geotargeted advertisements among individuals that have recently conducted searches for roofing services in the Orlando and Central Florida market area.
Finally, the Company will enroll among numerous trade organizations specifically for the construction industry within the Central Florida market.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• Matt’s Roofing Solutions will acquire $250,000 of debt to establish operations.
• The company achieve an annual revenue growth rate of 21%.
• Matthew Deutsch will invest $50,000.
9.2 Financial Highlights
• As this is a contracting focus enterprise, the operations are highly scalable
• The business will recognize highly predictable streams revenue from roof repair operations.
9.3 Sensitivity Analysis
As has been one of the central themes throughout this document, the demand for roofing services tend to remain incredibly strong, even during challenging economic climates. As shown in the fifth section of document, even during times of recession, the demand for roofing, especially as it relates to repair services remains incredibly strong. As such, Matt’s Roofing Solutions will be able to maintain economic viability at all times.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• Immense demand within Central Florida market area for comprehensive roofing solutions that can be delivered on a cost-effective basis.
• The Founder, Matthew Deutsch, has more than ten years of experience as a professional roofer.
• Given the climate of Orlando, the demand for new roofs is relatively consistent as a result of hurricanes.
• The Company’s operations can be scaled in accordance with ongoing demand in Central Florida.
Weaknesses
• Highly complex operations given at this is a contracting focused business that involves operation at heights.
• There are numerous competitors within the greater Orlando market area.
Opportunities
• Continued expansion in the Company’s direct outreach operations with real estate developers and construction firms.
• Scaling into other markets and within the state of Florida.
• Expansion to include other types of construction disciplines.
Threats
• Ongoing issues with imports may cause the inventory inputs of the business to increase as many aspects of roofing products are imported.
• Continually increasing inflation could cause the operating cost of a business to increase, especially as it relates to payroll.
Appendix B – Critical Risks
Development Risk – Low
The service architecture that will be employed by Matt’s Roofing Solutions has already been developed by Matthew Deutsch. The primary matter that needs to be addressed the securing the funding in this document.
Financing Risk – Low/Moderate
A significant portion of the capital so this document will be used directly for the acquisition of vehicles as well as operating assets for completing roofing engagements. The substantial economic stability of roofing contracting businesses will ensure that the business is able to meet is financial obligations on a monthly basis.
Marketing Risk – Low
Direct at reach coupled with numerous online marketing strategies will be the principal focus of the Company’s operations to establish an ongoing client base. Management is committed for providing an exceptional level of workmanship, which will establish a strong brand name in this market.
Management Risk – Low
Matthew Deutsch has more than ten years of experience as a roofing professional. Through this expertise, he will be able to effectively bring the operations of business to immense profitability.
Valuation Risk – Low
The valuation risk is offset by:
• Substantial profits generated from new roof installations.
• The Company’s equity and debt will be principally used for tangible asset purchases.
• The Company can scale through organic and acquisition means over the next five years.
Exit Risk – Low
As these businesses are highly economically stable, private equity firms as well as third-party roofing contractors are always in the market for established roofing businesses. In the event that the businesses to be sold, the Company will undertake numerous protocols to ensure a fair valuation and a seamless transfer of ownership.