Painting Contractors Business Plan Leave a comment

Barnum Painters offers high-quality commercial and interior painting services. Barnum Painters’ principal officers believe that this industry is plagued by two main problems. These are poor scheduling of work projects and poor retention. These factors lead to poor customer satisfaction, low repeat business, and a low word of mouth referral rate. Barnum Painters believes this contractor business strategy can help it exploit its weaknesses to increase local market share.

Over the next three year, Barnum Painters has these objectives:

• To generate sales revenues of approximately $620,000 per year 3.
• To reach a customer mix that is 30% commercial and 10% residential per year.
• To expand operations to include all the Greater Seattle area including Kirkland, Renton and the Kitsap Peninsula.

The company will seek to provide its painting services in the most timely manner and with an ongoing comprehensive quality-control program to provide 100% customer satisfaction. The company’s principal officers see each contract as an agreement not between a business and its customers, but between partners that wish to create a close and mutually-beneficial long-term relationship. This will help to provide greater long-term profits through referrals and repeat business.

To achieve its goals, Barnum Painters will use the following key procedures:

• You should create an inventory coordinator position and assign at least one expediter to each project.
• Each project should have a project manager who is able to handle quality-control issues.
• Establish a profit sharing plan for all employees.

Barnum Painters Limited Liability Company is a new start-up with three principal officers, each of whom has over 40 years industry experience. Barnum Painters will be a partnership between Mr. William Barnum, Mr. Anthony Barnum and Mr. Michael Kruger. The principals will put significant amounts of capital into the company. They will also be looking for $7,000 in loans to fund future growth and start-up expenses. The company also has a $10,000 line-of credit that is not shown in financial statements. This will be used to cover unexpected expenses or other opportunities.

Barnum Painters will be located in a rented suite in the Rucker Industrial Park on 710 Snoquamie Route, Suite 250 in Edmonds, WA. The facilities will include a reception area, offices for the principals, storage area for inventory, and employee lounge. Barnum Painters specializes in interior and exterior commercial and residential painting. Other services include drywall plastering and acoustical ceilings. The idea is to provide clients with a broad range of related services that will minimize their need to employ a variety of contractors. Barnum Painters will adopt a low-cost leadership approach while still maintaining a high level of quality.

Initially, the company will concentrate on residential customers and commercial clients in the Everett (Washington) area. The company will eventually be serving the entire Puget Sound, according to the three-year projections. After carefully examining its financial projections, the company concluded that they were both conservative in terms of profits and generous with expenditures. This was done to prepare for unexpected events. The company’s principals believe that cash flow projections are realistic.

Keys to Success

Barnum Painters principal officers have many years experience in contracting. Barnum Painters has two key strengths that they believe can be exploited by companies in this sector, including painting contractors.

The scheduling of jobs can be the first problem. Many painting contractors struggle to meet their established deadlines. This leads to decreased customer satisfaction. This is caused by poor management, less than reliable employees, and delays in inventory procurement and distribution. Retaining reliable and motivated employees is another problem. Many painting companies rely upon temporary or transient employees which results in high turnover rates and reduced service quality.

These are the key procedures Barnum Painters will use:

• A position of inventory coordinator is created. Every project has at least one assigned expediter.

Mission

Barnum Painters’ mission it to provide superior interior and exterior commercial and residential painting services. This company will ensure that these services are provided in a timely manner, with a continuous quality control program to ensure customer satisfaction. Principal officers of the company see every contract as an agreement between two partners, not between customers and businesses. They are meant to be a long-term partnership that is mutually beneficial. This will allow for greater long-term profit through repeat business and referrals.

Objectives

Barnum Painters’ goals over the next three year are:

• Year three: Sales revenues of approximately $450,000
• You can achieve a client mix of 30% commercial and 10% residential building contracts each year.
• Expand operations to all areas of Greater Seattle, including Kirkland & Renton as well the Kitsap Peninsula.