Embed Size (px)
0
1
CONTENTS
Contents ............................................................................................................................................................................... 1
Confidentiality Agreement................................................................................................................................................. 4
Purpose of the Business Plan ............................................................................................................................................ 5
1 Executive Summary ................................................................................................................................................... 6
1.1 Keys to Success ................................................................................................................................................. 8
1.2 Mission Statement ............................................................................................................................................ 8
1.3 Our Vision ......................................................................................................................................................... 8
1.4 Our Core Values ............................................................................................................................................... 8
1.5 Business Objectives .......................................................................................................................................... 9
1.5.1 Non-financial Objectives ....................................................................................................................... 9
1.5.2 Financial Objectives .............................................................................................................................. 10
1.6 Capex and Opex Analysis.............................................................................................................................. 10
1.6.1 Capital Expenditure (Capex) ............................................................................................................... 10
1.6.2 Monthly Operating Expenses (Opex) ................................................................................................ 10
2 Market Opportunity ................................................................................................................................................ 12
2.1 Business Model Canvas ................................................................................................................................. 13
2.2 Execution Strategy .......................................................................................................................................... 15
3 Company Summary ................................................................................................................................................. 17
3.1 Company History ........................................................................................................................................... 17
3.2 Company Location ......................................................................................................................................... 18
3.3 Corporate Governance and Company Ownership Structure .................................................................. 18
3.4 Products and Service Description ................................................................................................................ 18
3.5 Product and Service Mix ............................................................................................................................... 19
3.6 Status of the Product/Service....................................................................................................................... 20
3.7 Pricing Strategy ............................................................................................................................................... 20
3.8 Regulatory Requirements .............................................................................................................................. 20
3.9 Management Team ......................................................................................................................................... 21
3.10 Operational Framework ................................................................................................................................ 22
3.10.1 Service Request ...................................................................................................................................... 22
3.10.2 Project Estimation ................................................................................................................................. 22
3.10.3 On-site Material Delivery ..................................................................................................................... 23
3.10.4 Project Delivery ..................................................................................................................................... 23
3.10.5 Client Survey .......................................................................................................................................... 24
2
3.11 Organizational Structure ................................................................................................................................ 24
3.11.1 Positions .................................................................................................................................................. 24
3.11.2 Organogram ........................................................................................................................................... 25
3.12 Growth Plan .................................................................................................................................................... 25
4 Industry Analysis ...................................................................................................................................................... 27
4.1 Industry Trends............................................................................................................................................... 28
4.2 PESTEL Analysis ........................................................................................................................................... 29
4.2.1 Political .................................................................................................................................................... 29
4.2.2 Economic ................................................................................................................................................ 29
4.2.3 Social ........................................................................................................................................................ 30
4.2.4 Technological ......................................................................................................................................... 30
4.2.5 Environmental ....................................................................................................................................... 30
4.2.6 Legal......................................................................................................................................................... 31
4.3 Porter’s Five Forces Analysis ........................................................................................................................ 31
4.3.1 Threats of New entrants ...................................................................................................................... 32
4.3.2 Threat of Substitutes ............................................................................................................................. 32
4.3.3 Competitive Rivalry ............................................................................................................................... 33
4.3.4 Bargaining power of Buyers ................................................................................................................. 33
4.3.5 Bargaining power of suppliers ............................................................................................................. 33
5 Market Analysis ........................................................................................................................................................ 34
5.1.1 Landscaping Services Market Snapshots ........................................................................................... 34
5.1.2 Total Available Market (TAM) ............................................................................................................ 36
5.1.3 Serviceable Available Market (SAM) .................................................................................................. 37
5.1.4 Serviceable Obtainable Market ............................................................................................................ 37
5.2 Market Need .................................................................................................................................................... 38
5.3 Target Market .................................................................................................................................................. 38
5.4 Market Segmentation ..................................................................................................................................... 39
6 Analysis of Competition ......................................................................................................................................... 40
6.1 Competitive Advantages ................................................................................................................................ 47
7 Marketing Plan ......................................................................................................................................................... 48
7.1 Marketing Objectives ..................................................................................................................................... 48
7.2 Marketing Strategies and Implementation .................................................................................................. 48
7.3 Marketing Plan Milestones ............................................................................................................................ 52
7.4 Strategic Marketing Initiatives ...................................................................................................................... 52
7.5 Key Performance Indicators ......................................................................................................................... 53
3
7.6 Marketing Budget ........................................................................................................................................... 53
7.7 Sales Strategy ................................................................................................................................................... 54
8 Risk Analysis ............................................................................................................................................................. 54
9 SWOT Analysis ........................................................................................................................................................ 57
9.1 Strengths .......................................................................................................................................................... 57
9.2 Weaknesses ...................................................................................................................................................... 57
9.3 Opportunities .................................................................................................................................................. 58
9.4 Threats .............................................................................................................................................................. 58
9.4.1 Weaknesses and Threats Assessments ............................................................................................... 58
10 Financial Plan ....................................................................................................................................................... 60
10.1 Assumptions .................................................................................................................................................... 60
10.2 Revenue Assumption ..................................................................................................................................... 60
10.3 Revenue ............................................................................................................................................................ 61
10.4 Key Financial Metrics .................................................................................................................................... 62
10.5 Financial Summary ......................................................................................................................................... 62
10.6 Loan Schedule ................................................................................................................................................. 63
10.7 Projected Income Statement ......................................................................................................................... 64
10.8 Projected Cash Flow Statement ................................................................................................................... 66
10.9 Projected Statement of Financial Position ................................................................................................. 68
11 Financial Analysis ................................................................................................................................................ 70
11.1 Sales .................................................................................................................................................................. 70
11.2 Expenses .......................................................................................................................................................... 70
11.3 EBITDA .......................................................................................................................................................... 70
11.4 Cash Flow ........................................................................................................................................................ 70
4
CONFIDENTIALITY AGREEMENT
The undersigned reader of the Well Done Landscapes LLC Business Plan hereby acknowledges that
the information provided is completely confidential and therefore the reader agrees not to disclose
anything found in the business plan without the express written consent of John Rocharz.
It is also acknowledged by the reader that the information to be furnished in this business plan is in
all aspects confidential in nature, other than information that is in the public domain through other
means and that any disclosure or use of the same by the reader may cause serious harm and or damage
to Well Done Landscapes LLC.
Upon request, this business plan document will be immediately returned to John Rocharz.
This is a business plan. It does not imply an offer of any securities.
This contract shall be governed by the laws of the State of Massachusetts and any applicable Federal
law.
________________________ __________________________
Signature Printed Name
5
PURPOSE OF THE BUSINESS PLAN
This business plan is written to describe the business activities of Well Done Landscapes LLC under
the management of John Rocharz and to secure a loan of $1,100,000. The acquired funds will provide
adequate capital for the purchase, and development of a commercial property, which we intend to
convert into our store front and garage bay, and seek tenancy for the remaining units in the property.
Part of the funds will also be spent on additional upgrades and replacement of equipment and
establishing a working capital buffer for unsolicited emergencies.
The intending property will help the company maximize its potential and achieve increasing revenue
by providing us with increased visibility through the store front, and affording us good protection and
safety of our equipment through the garage bay. Accompanying our new location will be adequate
marketing strategies to ensure that a large part of our target market is informed about the availability
of our landscape construction and maintenance services and the benefits of allowing us to serve them.
With a new location and equipment, we are poised to be successful and project an anticipated revenue
of $1,087,144 at the end of the first year after the expansion.
In summary, the business plan is intended to:
• Secure a long term loan of $1,100,000 so as to purchase, develop and upgrade the property
and our equipment.
• Provide a blueprint for the business and provide details of its activities.
• Provide market insights that will aid the feasibility study of the business and brew a new market
area.
This business plan also highlights our operational plan, our vision and mission statements, the business
objectives, our products and services, market analysis as well as the financial projections among other
contents of the business plan.
6
1 EXECUTIVE SUMMARY
Well Done Landscapes LLC is a registered and licensed landscape maintenance and construction
company that is located in 40 shore Avenue Lakeville Massachusetts 02347 and has been existing for
13 years with an annualized growth rate between 20% and 30%. The company is actively involved in
the whole cycle of landscape construction from concept design to final completion in a variety of
projects. The company provides the design and installation of lawns, plantings, walkways, patio,
retaining walls and many other outdoor features.
We are also involved in the maintenance of landscapes, undertaking projects that include fertilization
services, property cleaning during spring and fall, mowing, mulching and pruning services. We are
open for business all year round, despite the seasonal nature of our work. We swim with the tide and
go after the opportunities presented by each season, therefore engaging in snow and ice management
of both residential and commercial properties, as well as feature commercial cleaning services during
the winter season.
The development, design, and completion of various landscape construction and maintenance
projects, cannot be entrusted to the lower quality companies. Unnecessary hike in service charge owing
to subcontracting of projects and bad execution that are either far from the owner’s desire or lead to
engineering disasters make contracting of landscape project to substandard companies dreadful.
These aside, the seeming impossibility of getting a company that deals in all the landscaping needs of
a property with the latest technology is the reason why Well Done Landscapes LLC has come to offer
our clients a customized service experience. We ensure the use of the latest technological tools and
equipment in the industry and shelve undue cost by making use of in-house trained workers and not
subcontract our works.
The landscaping market has been estimated to be worth $98.8 billion in 2019, with a CAGR of 0.2%.
The US market for landscaping has recorded an annualized market size growth of 4.4% between 2014
and 2019.1 These thus signify future growth, showing that the market for landscaping which is our
major business focus is not going to plummet anytime soon.
Well Done Landscapes LLC's target market is categorized into residential and commercial properties.
We target residential properties in the areas of Middleboro, Lakeville, Raynham, Bridgewater, and
1 https://www.ibisworld.com/industry-statistics/market-size/landscaping-services-united-states
7
Freetown with a combined annual household income of $110,000. We also target commercial
properties, specifically in industrial, medical, dental, and legal entities line of business in the earlier
listed area.
Well Done Landscapes LLC has been in the landscaping market for more than 12 years, delivering
high-quality projects. Our highly skilled design team are always on hand to help our clients realize their
custom project or design. Our professional and knowledgeable team are always on hand to assist our
clients throughout every step of their custom project, from takeoff, estimating and design to delivery
and completion.
John Rocharz has been the driving force of the company in the last twelve years. He is in charge of
the management and has been operating the company with a host of other experienced staff. It is to
further the good course of the company and optimize the company potential that we intend to obtain
a loan $1,100,000 with which the company will get a storefront to aid its visibility as well as upgrade
and restock of its tools and equipment.
We are quite optimistic that our values and quality of service offering will help us drive Well Done
Landscapes LLC to enviable heights and also help us attract clients that will make the business highly
profitable. We will be dedicated to establishing good business relationships with our clients giving
them value for their money and reasons for them to hire our services over and over again. We will
also leverage online marketing to keep clients in our intending new location informed about our
services.
Our construction team is made up of dedicated professionals who bring the latest technology in
construction to every project. Our commitment to our customers and to the management support of
each work we undertake has led to long-term relationships and repeat businesses from clients. In
addition to providing a high level of quality service on every job, we are consistently competitive with
our general contracting peers on a wide range of project scopes. Our divisional structure allows us to
utilize the appropriate resources for pricing based on the project requirements.
.
8
1.1 KEYS TO SUCCESS ❖ Reputation: Well Done Landscapes LLC has maintained a good reputation by consistently
providing quality services in the last 12 years. We have proven our worth and showed how
reliable and consistent we are in offering our clients the best landscaping experience.
❖ Economics of Scale: Well Done Landscapes LLC upon successful expansion will purchase
the materials required to carry out our services in wholesales since we will have a larger space
to store them, thus will allow us to buy at some discounts, thus saving some costs.
❖ Competitive Pricing: We make use of our in-house trained staff to shelve undue costs that
will be incurred from subcontracting. This, alongside the discounts we get on bulk material
purchase allows us to offer our service at prices that are very competitive.
❖ Excellent Customer Service: We provide excellent customer service and follow up services
to guarantee long term patronage from our clients.
❖ Experienced Management Team: Well Done Landscapes LLC is operated by a well
experienced management team and employees. This is why our services are topnotch and our
growth remains constant.
1.2 MISSION STATEMENT Our mission is to treat our clients and staff not how they think they should be treated, but treat them
in a way no one has before, with respect, appreciation, and humility - for the greater good. We want
to build a cost-effective landscaping company with the highest standard of quality, principles,
performance and customer satisfaction.
1.3 OUR VISION Our vision is to become the premiere provider of landscape maintenance and design services in the
Raynham area, Middleboro, Lakeville within the next five years. It is our dream, in line with various
business policies supporting our diverse services that within a few years of operation, more
commercial companies, resident owners and all we have marked as our potential customers turn to us
to serve them.
1.4 OUR CORE VALUES The following values dictate the actions of our management team under most conditions. These values
are basic principles that our business is built upon and, in combination with our vision and Mission
statement, they should provide guidance for our conduct.
9
➢ Honesty:
At Well Done Landscapes, we will do effective communication and reportage of complications and
delays, and ensure the communication is timely. We do not compromise our standard to save time or
increase our profit. We do not mislead our fellow workers or clients under any circumstance. We will
continually maintain this at the forefront of our operations.
➢ Integrity:
We take responsibility for our actions and own up to our mistakes both on-site and off-site, while not
wasting any time to right our wrongs. We maintain a high level of integrity by ensuring we put the
interests of our clients first in our decision making, and only recruiting individuals with a high level of
integrity and competence.
➢ Excellence:
We thrive on excellent service delivery. We ensure nothing less than 100% customer satisfaction for
each project we undertake. We provide quick turnaround and timely delivery without compromising
the standard of each work. Our clients hire us for our commitment to doing the job right the first
time, anything less is unacceptable.
1.5 BUSINESS OBJECTIVES
1.5.1 Non-financial Objectives
• To build a construction and landscape maintenance company that becomes a force to reckon
with in the industry
• To achieve corporate growth at a pace significantly faster in subsequent years.
• To serve our customers diligently in meeting their requirements and delivering the best
construction and landscape maintenance services. We continuously learn and observe new
trends and customer requirements.
• To recruit the best employees, provide them with training and development opportunities,
and empower them to ensure that we are the best in our business activities. We create a great
place to work where employees are inspired every day.
• To carry out each project in a sustainable and environmental friendly way.
10
• To encourage continuous improvement and adherence to quality standards set in our ISO
standards and procedures.
• Continuously measure, monitor and evaluate marketing metrics, loyalty programs, and sales
KPIs to tweak, make improvements and refine processes.
• Continually learn from customer feedback.
1.5.2 Financial Objectives
• To raise $1,100,000 in capital funding.
• To achieve a revenue of $1,078,744 in the first year, and more in subsequent years.
• To achieve an annual growth rate of 20% in the second year, 44% in the third year,
56.3% in the fourth year and 44% in the fifth year.
• To attain breakeven in the first year of expansion.
• To complete loan repayment in seven years
1.6 CAPEX AND OPEX ANALYSIS
1.6.1 Capital Expenditure (Capex)
Start Up/Capital Expenses
Amount
Amount % to Capital
Tangible & Non-Tangible Asset
Equipment upgrade $160,000 14.5%
Commercial property $800,000 72.7%
Promotion & Awareness
Pre-Marketing & Distributions Expenses $15,000 1.4%
Pre-Operational Expenses
Miscellaneous $6,000 0.5%
Telephone $2,000 0.2%
Working Capital $117,000 10.6%
$1,100,000 100.0%
1.6.2 Monthly Operating Expenses (Opex)
Operational Expenses
Per Month
11
Salaries & Wages $4,000
Auto and truck $5,000
Utilities $125
Professional fees $250
Advertising & promotion $833
Meals & Entertainment $333
Travel Expense $125
Telephone $167
Education and Training $117
Insurance $2,500
Uniforms $125
Office Supplies $167
Dues & subscription $133
Total Operational Expenses $13,875
12
2 MARKET OPPORTUNITY
The global landscaping industry has been forecasted to experience an incremental growth of $53.29
billion between 2016 and 2021. The industry is expected to grow from a total value of $180.08 billion
in 2016 to $224.27 billion in 2021. The United States has also been predicted to account for 44.78%
of the total market value by 2021.2
Research points to the continuous growth of the landscaping industries and the increasing demand
for each service under the industry, particularly in the United States. This is why the industry has been
experiencing an influx of entrepreneurs and investors, many of which are only after the profit and not
really willing to offer the required efforts that result in quality service.
Well Done Landscapes is a unique company that offers standard practice in the construction and
landscaping industries. We are passionate about our work and give our best to every project we
undertake. This is evident in the continual growth we have been experiencing in the last 12 years. We
will put all strategies in place to make the survival of small organizations who are not properly insured
and licensed impossible.
2 https://www.businesswire.com/news/home/20170302005047/en/Top-6-Vendors-Global-Landscaping-Gardening-Services
13
2.1 BUSINESS MODEL CANVAS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER
RELATIONSHIP
CUSTOMER SEGMENTS
▪ SBA –
Approved
Lenders
▪ Top quality landscape
constructions and
designing
▪ Professional landscape
maintenance services
▪ Ice and snow removal
▪ Flea and tick treatment
▪ Patio, walkway, and
retaining wall installation
▪ Turf and shrub
fertilization
▪ Commercial cleaning
services
▪ Top-notch services
for all clients in our
location
▪ On-time completion
of all works as
scheduled
▪ Leveraging
powerful,
proprietary tools
▪ Deploying
integrated, long-
term strategies
▪ Excellent customer
service
▪ Storefront facility in
Middleboro,
Massachusetts.
▪ Company website
▪ Social networks:
Facebook, Twitter, Instagram,
Snapchat, etc.
• Residential and
Commercial properties
with income levels of
$100,000 and above
KEY RESOURCES
▪ Human resources:
Experienced management team
▪ Other resources:
Storefront property
Garage Bay
Good and large collections of
required tools and equipment
CHANNELS
▪ Direct sales in our
storefront
▪ Social media
platforms
▪ Company’s website
Cost Structure
▪ Marketing (mid-level budget)
▪ Property Acquisition and Development (High-Level
budget)
Revenue Streams
▪ Mowing
▪ Mulching
▪ Clean up
▪ Turf aeration
14
▪ Equipment upgrade and replacement (Mid-Level
budget)
▪ Turf fertilization
▪ Landscape maintenance
▪ Hardscape (patios, walls, walkways)
▪ Lawn installations and repair
▪ Masonry installations and repair
▪ Plant installations
▪ Construction
▪ Cleaning
▪ And garage bay rental
15
2.2 EXECUTION STRATEGY Well Done Landscapes has been in existence for more than twelve years, and currently operates from
an open air space and a rented garage bay at the rate of $700 per month. We have been providing
quality services to meet the landscaping needs of both residential and commercial services in
Massachusetts. We are advocating for an expansion to further increase the scope and efficiency of our
service delivery. This is why we have opted to take a long term SBA loan to the tune of $1,100,000.
With the loan, we intend to purchase and develop a property in Middleboro, Massachusetts where we
are currently located. The property will be developed in a way that we will have a storefront for our
business operations. A storefront will increase our visibility to our target market as we will easily be
located and become more known in the community. This will improve the efficacy of our
advertisements and will increase patronage to our construction and landscaping services since we will
be located in a high-traffic area.
Secure $1,100,000 SBA loan
Property Purchase and Development
Storefront
Garage Bays
Nursery and Gardening
Meeting Space for Employee Trainings
and Job Fairs
Purchase of 2 specialized trucks
16
The storefront will also afford us adequate space as training areas for our employees and also provide
us with a garage bay where our equipment can be kept safely thus increasing the useful lifespan of
each of our existing and new assets.
Our intending property will be about the land area of about 10 acres or more, thus providing us ample
opportunity for future expansion into nursery and gardening within the same premises. This would
make us the sole supplier of ice melt products within a 15-mile radius.
Also with a large space, we will be able to pre-stock pavers, plant stock and wall blocks at extremely
discounted prices. We will also have space to increase our workforce to approximately 50 employees
(at peak season) with about 20 trucks, so as to be the first resort of landscaping and supply needs of
our target audience in Middleboro, Lakeville, Raynham, and Freetown areas.
The intending property will also afford us enough space to hold job fairs for about 50 potential
employees at a time. We will also be able to hold a series of interviews on site, thus affording us the
opportunity to hire well experienced people who possess the attitude we seek in an ideal employee.
Part of the loan will also be used to finance the purchase of two specialized trucks, in addition to three
old trucks that we intend to roll over into our new set of truck collections. One of the new two trucks
to be purchased will be specifically for our landscape maintenance and turf fertilization services. It will
also serve the purpose of a hook lift truck for our construction service. We will be able to go down
on our overhead expenses with these new trucks and also have less turnaround time which is a sure
guarantee for increased revenue. We also intend to rent out some units of our garage bay, so as to
quickly offset the mortgage.
17
3 COMPANY SUMMARY
3.1 COMPANY HISTORY The concept of Well Done Landscapes dates back to the spring of 2003, when John Rocharz who is
the founder, was employed Mr. Ian Witt, a talented British man who was working with Royal Gardens
as a Master Stone Mason and Arborist. Ian was managing all the royal properties until he began his
own venture in America. Ian taught John Rocharz various techniques and designs that are often used
in design and construction works and are often overlooked in our hurried society.
Ian moved to Missouri with his wife in 2005, and John Rocharz began working for a large construction
company where he was promoted to the “head mason” in a very short time. Despite the task delegated
to him being too much, John was eager to provide the specialized services that Ian was very proficient
at.
John Rocharz started Well Done Landscapes as a moonlight venture in the summer of 2006 when he
discovered he was serving many more clients while he was working on a full time basis as a hardscape
foreman for a large landscaping company. At times, he worked all through the week and managed wall
and patio installation projects that were in excess of $80,000, and at times he managed a crew of 10 to
12 men on site when he was just 20 years old. He was surprised to see his clients not minding if their
project encountered some delay, as he was being restrained by his full time job. All they cared for was
quality, such that they were willing to tolerate delays and wait till he would be available.
Well Done Landscapes was started during the “great recession”. John started the company believing
that consumers have had their fill of the big box style of business and that they were in a good position
to acquire more clientele from the large scale companies that were after a personal touch with caring
and skilled providers. John’s guess was right, as the company has been growing and expanding at an
annual rate of 20% to 30% for more than 12 years.
We thrive on our people and the best and most efficient equipment which makes us get each project
executed with the highest level of quality at the shortest possible time. These equipment include
specialized mulching machines, track loaders, excavators, and trucks and trailers set up to ensure
effective service delivery within the shortest turnaround time. We are committed to training our staff
to measure up to the industry approved standards and towards achieving the company's corporate
goals.
18
3.2 COMPANY LOCATION Well Done Landscapes LLC is located in 40 Shore Ave Lakeville Massachusetts 02347, and also
intends to acquire a property in Middleboro. This is perfect for our type of business, as it houses a
number of residential and commercial properties that are our target market. John Rocharz is also
already very familiar with the intrinsic idiosyncrasies of this location, and the business terrain is very
friendly in Massachusetts. Therefore, the company is bound to grow at a significant pace even in years
to come. We also intend to be ably represented online through the website and this will afford us the
opportunity of providing our client with the necessary information about our service delivery.
3.3 CORPORATE GOVERNANCE AND COMPANY OWNERSHIP STRUCTURE Well Done Landscapes LLC is a registered limited liability company that is solely owned by John
Rocharz. Being the only owner, John owns a 100% share of the company.
3.4 PRODUCTS AND SERVICE DESCRIPTION Well Done Landscapes is involved in providing landscape construction services for the teeming
populace of Massachusetts. It is very conspicuous that the management of buildings and building
projects require not just a high level of expertise and commitment but also experience. Well Done
Landscapes has successfully implemented various projects for over twelve years and with our
intending expansion, we will further add to the company’s growing credential of projects successfully
completed. Our construction service includes the design and installation of lawns, plantings, walkways,
patio, retaining walls and many other outdoor features.
The company also features landscape maintenance. This will include periodic weeding and fertilization
services, spring and fall property clean ups, weekly mowing, mulching, and pruning services. Since
landscaping works are seasonal, we will focus on commercial and residential ice and snow management
and commercial cleaning services during the winter.
Well Done Landscapes as a whole work in synergy. Some companies provide only turf fertilization
services or mowing services but our business model follows the recognition, identification, and
correction of potential problems in the landscape. Each crew leader in Well Done Landscapes has
been trained to make good identification of problems before they arise. This may range from turf
diseases to improperly done works even by other crews in the company. Our goal is to reduce attrition
rates and increase referrals from clients by providing quality services through a series of in-house
checks and balances.
19
Construction and landscape maintainance services are not just a job. At Well Done Landscapes, they
are our passion. With every project we undertake, we set the bar high and provide the best people in
the industry, with a true love of what we do to make our Customers’ vision a reality. From inception
to completion, we use the latest techniques and technologies to make sure that the project stays on
point and on budget. Even after a project's completion, our post-construction teams work to ensure
that our customers are satisfied.
Well Done Landscapes has a strategy of constructing from scratch and maintaining landscapes; making
a good place to live or to increase the economic value of such buildings. Virtually, all the processes
including the construction and maintenance of landscapes and any other services within the confines
of Well Done Landscapes dictates will be adequately and professionally handled as the company
ensures the use of the best hands to execute all its projects.
In summary, our company, upon the acquisition and the development of the property will feature:
➢ Landscape design and construction services
➢ Landscape maintenance services
➢ Turf and shrub fertilization service
➢ Patio, walkway, retaining wall installation
➢ Snow and ice management services
➢ Flea and tick treatment
➢ Property unit rent
3.5 PRODUCT AND SERVICE MIX Width – Well Done Landscapes have two lines of business which are landscape construction and
design services and landscape maintenance services. Coming after being funded and acquiring a
new property, will also be a new line of business which is renting out a part of our property.
Depth – Under its landscape maintenance services, Well Done Landscapes offers mowing,
mulching, clean up, turf aeration, turf fertilization, miscellaneous landscape maintenance (process
increase, missed services) services, ice and snow management, and cleaning. Under its landscape
construction and design line of business, the company offers Hardscape (patios, walls, walkways),
Lawn Installation and repair, Masonry Installation and repair, Plant installations and other
20
miscellaneous construction works. The new line of business will feature some units rented out as
a garage bay.
Length – The entire number of products in the entire product mix for Well Done Landscapes is
thus 14.
Consistency – Having been in the business for more than 12 years growing each year at a
significant rate, the company operates with a high level of product consistency.
3.6 STATUS OF THE PRODUCT/SERVICE Our services have already been existing prior to our expansion. Upon expanding and acquiring the
property, our renting/leasing service segment will be launched.
3.7 PRICING STRATEGY The price for each project we undertake differs, and this hinges on many factors, the most important
of which is the size of the project itself. Our garage bay will, however, be rented at a fixed price of
$700.
3.8 REGULATORY REQUIREMENTS Well Done Landscapes has all the necessary permits and requirements to operate as a standard
landscape construction and maintenance company under the law and regulations of the state of
Massachusetts. Well Done Landscapes is licensed in the state of Massachusetts and also holds ICPI
certifications for paver installations. We belong to some professional bodies and these include:
• SIMA (Snow and Ice Management Association).
• NALP (National Association of Landscape Professionals).
21
3.9 MANAGEMENT TEAM Well Done Landscapes is founded and solely
owned by John Rocharz who is the president
of the company. He has been leading the
company for more than 12 years and has over
18 years of landscape, masonry and retail
management. He attended Johnson and
Wales University where he studied Business
Management. John provides short and long
term vision and objectives to attain and shape
the company’s objectives, systems, and
values. John will run the company with a
number of site foremen and lead hands who
are directly responsible for cost effectiveness
and timely execution of projects.
Austin Stauffer is our landscape maintenance
supervisor. He has been working for the
company for the last four years with a
commitment to retire with the organization. Stauffer studied Business Management at Syracuse
University and has 21 years of landscape management and turf fertilization experience.
John Williams is our construction supervisor who joined the company in 2017 to replace Tom
Gamache after his demise. John Williams has good experience with all phases of hardscape and
masonry construction. He also has more than 24 years’ experience operating heavy equipment.
Pamela Rocharz is the office manager who has more than 18 years’ experience in business, supply and
logistics management. Pam handles the company’s stellar accounts receivable turnaround time. It is
rare to see clients go beyond 60 days and in case they do, Pam quickly recognizes and remediates such
client’s new payment options to ensure the account does not go excessively delinquent. She is also
responsible for weekly payroll processing and appointment setting for job leads.
22
3.10 OPERATIONAL FRAMEWORK This section reviews our day-to-day activities to offer the best service quality in Massachusetts. We
maintain a solid business operational framework to deliver the best service in the niche market through
vast experience in the industry, most efficient equipment, and state-of-the-art technology for business
operations, qualified and professional employees, active staff training for high performance and
productivity, and so on.
3.10.1 Service Request
Client Service Request: Our line of operation begins with the loyal or prospective client. The client
makes a request for a service or project through any of the following channels (company website via
web form to generate leads; social media page via Facebook messenger; phone; referral from families
and friends, loyal clients, etc.; site signs in the course of working in the location, or a community
group) to contact us. Over the years, requests from clients have been generated from community
groups and referrals through our Facebook page.
Data Generation: Upon request, the Office manager contacts the potential client to determine if we
can meet their needs and ensures that this is a viable lead for the company. The client information;
address, phone number, email, and general notes are entered into our online platform – Estimate
Rocket.
Project Confirmation: The office manager confirms a suitable time for project initiation and meeting
if need be.
3.10.2 Project Estimation
Estimation: The project estimator is assigned to carry out an approximate estimate of the project
based on client’s brief/needs and specifications, scope of the project to meet the needs of the client
on site, project method; design build or property maintenance. This appointment is entered online
Client Satisfaction
Survey
Project Delivery
Onsite Material Delivery
Project Estimation
Service Request
23
into the estimator’s schedule. The estimator utilizes the in-house time study data to create a detailed
estimate which is then sent to the client for acceptance. The detailed project estimates, as well as
attached pictures from the field with annotations on each picture, guides the field staff on project
specifics. The estimator uses aerial photography and measurements of some sites which is also
included in the estimate. Pictures of materials, digital designs, plant materials, and cross section
schematics are often attached to the proposal as well.
Proposal Delivery: Upon completion, the estimator emails the proposal with a personalized “thank
you for the opportunity to provide the service estimate”.
Follow up Email: Furthermore, the estimator activates the automatic follow up email campaign to
reach out to the client at set intervals to ensure the client is not forgotten. These follow up emails will
continue for up to 12 months from the date of the completion of the estimate.
Proposal Status: If the estimate is accepted by the client, the estimator changes the proposal status
from pending to accepted and assigns a crew leader to complete the project as well as project timeline
for the crew leader to complete the project. However, if the client declines the estimate due to a
temporary condition the estimator schedules an automated follow up email to revisit at a
predetermined time frame as discussed with the client. If the client has chosen another outfit to move
forward with the project, proposal status and follow up emails will be cancelled.
3.10.3 On-site Material Delivery
On-site Material Delivery: The crew leader/site foreman schedules deliveries of materials per the
work order assigned the week prior to arriving on-site (for larger projects) or the night prior for a
single day or smaller work orders.
Construction/Maintenance Work: Upon material delivery on site, construction or maintenance
work is initiated based on the type of project and timeframe.
Project Tracking The site foreman is responsible for tracking and adhering to the estimated labor
hours and materials allocated to the project by the estimator. Change orders are documented and
accepted by the client. The crew leader/site foreman is tasked with keeping the client informed during
project cycles (at the beginning and end of the day of the anticipated work to be completed).
3.10.4 Project Delivery
Final Walkthrough: At the end of the project a final walkthrough with the client is performed, if the
client is not available on-site, the crew leader documents through pictures, the finished work area and
24
ensures thoroughness by completing and signing the final walkthrough. The crew leader reaches out
to each client via email at the end of each day or project and provides the final walkthrough checklist.
Billing and Documentation: Once the crew leader has accurately tracked all materials and labor
hours for the jobsite they change the status of the project to "complete" and assign office staff to send
the final invoice. The crew lead documents any challenges in completing the project on time and
schedules which will be sent to the division supervisor.
3.10.5 Client Survey
Upon receiving the completed work order and billing the client based on the contract sum, the
software automatically job cost the project final invoice and report reviewed, the client satisfaction
survey automatically recorded through the use of constant contact. The survey will be evaluated to
determine the client’s pain point if any. However, if the client expectation was not met, we reach out
to discuss how we as a company can perform at a higher level and design and implement new systems
to assure we satisfy them 100%.
3.11 ORGANIZATIONAL STRUCTURE Well Done Landscapes is organized in a way to streamline business operations, enhance employee
performance and focus on customer service to deliver an exceptional customer experience which, in
turn, will increase sales, the profitability of the business, stimulate business growth, etc.
3.11.1 Positions
• President
• Landscape Maintenance Supervisor
• Construction Supervisor
• Office Manager
• Landscape Maintenance Onsite Workers
• Construction Onsite Workers
25
3.11.2 Organogram
3.12 GROWTH PLAN TIME
PERIOD
MARKET
OBJECTIVES
ACTIVITIES STRATEGIES TARGET GOAL
Year 1 & 2 ● Initial funding
and Investments
● Land
Acquisition
● Land
development
● Market
penetration
● Apply for an SBA
loan
● Make contact, bid
and buy the
property
● Increase our truck
and equipment
inventory
● Improve on online
presence
● Feature property
unit renting
● Financing
through loans
● Property
acquisition and
development
● Gain a
remarkable
market presence
● Increased
revenue
President
Landscape Maintenance Supervisor
Landscape Maintenance
Onsite Workers
Landscape Construction Supervisor
Office Manager
Landscape Construction
Onsite Workers
26
Year 3 & 4 ● Increase income
● New delivery
areas
● Product
development
● Getting involved in
community
development
projects
● Increase our truck
inventory
● Maintain timely
service delivery
● Ensure same day
delivery
● Establishing a
brand/network
● Increase market
share and sales
Year 5 & up ● Increase sales
● Increase
customer
segment
● Market
development
● Diversificati
on
● Reaching out to
more service areas
● Increasing our
inventory
● Increase our
customer
segment
● Expanding to
new markets
27
4 INDUSTRY ANALYSIS
Landscaping services deal with the alteration, maintenance, and enhancement of the visible parts of a
property. Landscape maintenance is the act of keeping a landscape clean, safe, attractive and healthy.
Landscapers carry out services such as planting and harvesting, weeding and fertilization, lawn care,
ice and snow removal, pathway maintenance, swimming pool care, runoff drainage, lighting, irrigation
and more.
The industry includes companies that take care of landscapes for residential and commercial areas and
maintain them. Featuring in this industry are also companies that are into the designing and
construction of pathways, patios and decks and stone walls and fences. The cost to entering this
industry is very low and the business is expected to experience good growth in the United States owing
to an average American waking up to the good maintenance of their yards and landscapes, as this adds
more beauty and value to their homes.3
The total revenue in the US has been estimated to be approximately $99 billion in revenue, servicing
506,470 businesses in 2019 according to IBISWorld. The business experienced a growth rate of 4.4%,
with industry employment of 1,092,197.4
The demand for landscaping hinges on a number of factors and these include the health of the housing
markets and health of the property markets. These two markets have continually been growing in the
last 5 years. Industry demand for landscaping also depends on levels of per capita disposable income
and demography with high income.5
Small businesses handle large size of the landscaping industry. Bigger companies mostly operate on a
national scale and handle projects for commercial properties such as hotels, resorts, and office
complexes. Smaller, and local businesses serve residential properties and local establishments. Often
times, bigger companies are also seen setting up units in smaller locales in a bit to capture the local
and residential establishments, thus going into competition with small businesses. With the costs of
equipment being relatively the same, the local landscaping companies are well positioned to compete
by focusing on certain neighborhoods where they are able to get referrals and receive compensating
3 https://smallbusiness.chron.com/landscaping-industry-analysis-70172.html 4 https://www.ibisworld.com/united-states/market-research-reports/landscaping-services-industry/ 5 https://www.ibisworld.com/united-states/market-research-reports/landscaping-services-industry/
28
feedback on projects well executed. Furthermore, they shelve the cost of running an office or spending
on an extensive payroll, which often makes them charge lower rates for their services.
A whopping 72% of the entire landscaping industry is captured by small business owners. The industry
was growing at a CAGR of 10% and reached $61 billion in July 2012 according to IBISWorld. The
Bureau of Labor Statistics estimated an average of $20 per hour and $12.44 per hour for landscaping
supervisors and workers respectively.6
4.1 INDUSTRY TRENDS Below are the trends in the landscaping industry.
❖ Increasing Participation of Millennials: The expectation of customers is fast changing as
younger generation of people are becoming homeowners. Having a great longing towards the
protection of their environment, millennials have a higher possibility of being interested in
natural and organic products. These category of people also have a higher chance of living in
an urban area, so, their choice of plants to purchase, tools and equipment to use will be the
type that work well in tight places.7
The younger generations are also entering the industry as landscapers and landscape workers.
Being a generation more tilted towards the adoption of the latest technologies, they are
introducing a number of innovations which include a smart irrigation system and new weed
control methods.8
❖ Technology Integration: Landscapers can be more efficient by adopting some latest
technologies in the industry. Some of these technologies include small controllers, aerial
photography, application software to controls system remotely or track workers, and so on.
The use of these technologies will make landscaping activities and the execution of various
landscaping projects easier. This will allow for quick turnaround of works and efficient service
delivery.
❖ Increasing Adoption of Low-Maintenance Landscapes: A large percentage of
homeowners and commercial property owners often run on a tight schedules and therefore
do not have enough time to take proper care of their landscapes by themselves. This has seen
many hiring professionals to do this for them or rather opt for a low maintenance design.
6 https://smallbusiness.chron.com/landscaping-industry-analysis-70172.html 7 https://blog.marketresearch.com/4-trends-to-watch-in-the-gardening-and-landscaping-industry 8 https://www.totallandscapecare.com/landscaping/green-industry-trends-2019/
29
Many of these owners have therefore been opting for low-maintenance landscapes with
draught tolerant plants and native plants who require low maintenance and less water.9
❖ Increasing Small Space Gardening: Small-space gardening which is more suitable for urban
residents who have less land around their homes. Another reason for their fast increasing
embrace is their being relatively easy and fast to implement.10
4.2 PESTEL ANALYSIS A good way to measure how the external factors influence our community-based programs is to
conduct PEST research and analyze our findings and statistics in relation to our organization.
4.2.1 Political
• The atmosphere in the United States is calm and peaceful, and there are no issues that can
warrant a military invasion which will affect the industry.
• Many of the states in the US require licensing to carry out landscaping activities. one such is
Oregon which has landscape contractor licensing laws, in Colorado state, nursery license is
required before selling plants and home improvement contractor’s license is required of
landscapers in New York and New Jersey11, a landscape architect license from the office of
consumer affairs and business regulation for the state of Massachusetts.12
4.2.2 Economic
• The US economy is growing, with its GDP increasing by 2% from the first to the second
quarter of 2019.13
• The income tax rate in the state of Massachusetts is not outrageous, at a flat rate of 5.10%,
except for the state residents who are provided an option to pay a higher rate of 5.85% for
more contribution to the state’s coffers.14
• Even at 1.9%, inflation rates in the United States are minimal and subdued15
9 https://www.totallandscapecare.com/landscaping/green-industry-trends-2019/ 10 https://blog.marketresearch.com/4-trends-to-watch-in-the-gardening-and-landscaping-industry 11 https://www.nfib.com/content/resources/start-a-business/how-to-start-a-landscaping-business-61783/ 12 https://bizfluent.com/how-6513795-start-landscaping-business-ma.html 13 https://www.statista.com/statistics/188185/percent-chance-from-preceding-period-in-real-gdp-in-the-us/ 14 https://smartasset.com/taxes/massachusetts-tax-calculator 15 https://tradingeconomics.com/united-states/inflation-cpi
30
4.2.3 Social
• There is increasing size of the millennial who now see gardening as a leisure pursuit; 20% of
this category being within the age bracket of 18 and 34.16
• The increasing cost of materials is a factor plaguing the landscaping industry in general.
• Residents of the US esteem cleanliness and are environmentally conscious.
4.2.4 Technological
• There is a continual introduction of technologies to ease the construction processes, some of
which include virtual reality and wearables, Drones, Business Information Modelling (BIM),
3D printing, mobile technology, etc.
• There is a high demand for battery-powered equipment in the landscaping industry.17
4.2.5 Environmental
• The United States is among the top countries seeking counter means to climate change, yet
the reduction in global emission will be difficult as the construction industry generates between
25% and 40% of the global carbon emission.18
• There is an intensified effort towards a “green” environment in the US, thus generating
demand for green construction techniques.
• The increase in tree cover which is one of the landscaping activities reduces erosion.19
• Flowers, trees, and shrubs serve as habitat for some wildlife that is beneficial to the
environment.20
• There are federal Government laws and programs regulating environmental pollution. An
example is the EPA.
16 https://blog.marketresearch.com/4-trends-to-watch-in-the-gardening-and-landscaping-industry 17 https://www.totallandscapecare.com/landscaping/green-industry-trends-2019/ 18 https://www.digitalistmag.com/future-of-work/2016/08/15/top-4-challenges-facing-construction-industry-04388065 19 http://ncgreenprints.com/benefits-of-landscaping/ 20 http://ncgreenprints.com/benefits-of-landscaping/
31
4.2.6 Legal
• There are OSHA’s general industry standards in place to regulate landscape maintenance
activities such as tree trimming and the activities of employees working with chemicals such
as in lawn care.21
• OSHA’s construction industry standards regulate landscape construction activities like
building retaining walls and patios.22
• The Patient Protection and Affordable Care Act, widely known as Obamacare also mandates
that everyone gets health insurance or pay a tax.
4.3 PORTER’S FIVE FORCES ANALYSIS Well Done Landscapes will utilize Porter's Five Forces Analysis as a tool for understanding
the forces that shape competition within the landscaping industry and will also help determine the
industry's weaknesses and strengths. We will implement this model to explore the competitive
environment as well as generate competitive advantages in business operations as we expand our line
of business in the landscaping market.
21 https://smallbusiness.chron.com/osha-rules-lawn-landscaping-business-61176.html 22 https://smallbusiness.chron.com/osha-rules-lawn-landscaping-business-61176.html
32
4.3.1 Threats of New entrants
The threats of new entrants in the landscaping industry are considered MEDIUM. In operating a
thriving landscaping business that will attract a pool of customers with high retention rate, there is
necessity for the business to offer high quality service and innovation through advanced technology
for designs and service offering, capitalize on modern equipment to fast-track operations, employ
qualified and professional staff as well as equipping them with hands-on employee training for high
performance, industry experience to steer a successful business, capital to stay financially buoyant,
among others factors. In penetrating the industry and expanding our line of business, these are factors
considered and we will do due diligence to achieve our business goals.
4.3.2 Threat of Substitutes
Threats of substitutes in the industry are considered LOW as there is a slim substitute for the service
offering. The substitutes considered apart from other competitors who offer the same services in the
industry are the individuals who are ready to do the mowing themselves. However, considering the
target market, a residential with a household annual combined income of over $110,000 and a
commercial facility; they would rather request for our service than do it on their own because of the
time factor, equipment that will be used, experience and so on. We will differentiate our business in
Competitive Rivalry HIGH
Threats of New
Entrants MEDIUM
Bargaining power of Buyers
MEDIUM
Threats of SUbstitutes
LOW
Bargaining power of Suppiers
MEDIUM
33
the industry by offering customer-centric service coupled with service delivery through creativity and
a high level of craftsmanship. Apart from these, we will offer competitive prices, dynamic sales
strategies, offer value, minimize downtime with our modern equipment, among others.
4.3.3 Competitive Rivalry
Rivalry in the landscaping industry is quite HIGH as there are several landscaping and construction
businesses. The competition in the industry is as fierce as every business is in contending to capture a
chunk of market share with greater profitability. Well Done with vast experience in the industry will
constantly improve the business through market research and market insights, employ advanced
technology in the industry to offer services to our ideal customers, employ effective marketing
strategies to stay ahead in the niche market, stay abreast with information about the competitors and
their strategies, employ a dynamic business model, offer marketable landscaping services to increase
revenue streams, etc.
4.3.4 Bargaining power of Buyers
The bargaining power of buyers is considered MEDIUM. Landscape businesses offer competitive
prices for service offerings. We are quite aware that the smaller and more powerful the customer base,
the higher the bargaining power of the customers and the higher their ability to seek increasing
discounts and offers. We will employ smart business strategies to stay on top of our business domain;
turning our customers into effective advocates for our brand. Also, we will offer deeply discounted
labor rates during fall clean ups, offer services with warranty backups, etc.
4.3.5 Bargaining power of suppliers
Although the suppliers are one of the forces that shape the competitive landscape of the
landscaping industry; they may threaten to raise prices or reduce the quality of goods, however, they
have limited power over the business as the company has higher switching costs. Hence, the bargaining
power of suppliers in the industry is considered MEDIUM.
34
5 MARKET ANALYSIS
According to Business Wire, the global landscaping and gardening market was valued at $180.08
billion in 2016 and is expected to reach $224.27 billion at a CAGR of 4.91% from 2016 to 2021.23
The rapid growth in the market is attributed to the rising number of multifamily properties across the
globe, expanding real estate sector, growing demand for outdoor natural aesthetics, increasing number
of residential and commercial projects, among others.24 However, IBIS stated that the steady growth
in the housing market is expected to encourage the demand for the landscaping services market in the
US as the market is valued at $99 billion in 2019 at 4.4% CAGR within the forecast period (2014
– 2019).25 According to Statista, an average of $503 per household is being spent on lawn care and
gardening activities in 2019.26
5.1.1 Landscaping Services Market Snapshots27
• According to the Iproperty Management report, the landscaping services market in the US is
worth $99 billion at 4.6% since 2014.
• The demand for landscaping services is no longer driven only by construction spending in the
United States, but discretionary spending on home improvements on existing properties has
surged in the last five years.
• Only 15% of total revenue is generated by the largest 50 companies in the landscaping
business.
• Smaller companies producing between $100,000 to $500,000 gross annual revenue are making
the most money.
• Landscaping is one of the areas where homeowners and property owners are spending the
most
• 61% of homeowners would rather stay and fix up their home than move
• In 2016, 39 million homeowners participated in a landscaping project of some sort
23 https://www.businesswire.com/news/home/20170302005047/en/Top-6-Vendors-Global-Landscaping-Gardening-Services 24 https://www.businesswire.com/news/home/20180622005574/en/Landscaping-Gardening-Services-Global-Market-Report-Type 25 https://www.ibisworld.com/united-states/market-research-reports/landscaping-services-industry/ 26 https://www.statista.com/topics/4798/landscaping-services-in-the-us/ 27 https://ipropertymanagement.com/landscaping-industry-statistics
35
• Households with above-average disposable incomes are more likely to spend on landscaping
services to improve the attractiveness of their homes
4.6% $99B+ 39M+ 74%
Annual industry growth
since 2014
Landscaping industry’s
total revenue in 2019
Homeowners who did
landscaping in 2016
Percentage of business
from returning
customers
Source: https://ipropertymanagement.com/landscaping-industry-statistics
Source: https://ipropertymanagement.com/landscaping-industry-statistics
0% 10% 20% 30% 40% 50% 60% 70%
Existing homes
New custom homes
New for-sale homes
Commercial services
AVERAGE SHARE OF GROSS REVENUE IN 2018 FROM RESIDENTIAL AND COMMERCIAL
LANDSCAPING SERVICES
36
Source: https://www.statista.com/statistics/203183/percentage-distribution-of-household-income-
in-the-us/
The figures above show the percentage distribution of household income in the United States in 2018.
The number of households earning more than $100,000 is averagely 30.4%.
According to IBIS World, households earning more than $100,000 annually still tend to reduce
nonessential spending and become more price-conscious during economic downturns. The number
of households earning more than $100,000 is expected to only marginally increase in 2019, posing a
potential threat to the industry. However, the value of residential construction rises, including
spending on privately owned home improvements, the need for lawn, tree and garden care increases28
5.1.2 Total Available Market (TAM)
According to Business Wire, the global landscaping and gardening market was valued at $180.08 billion
in 2016 and is expected to reach $224.27 billion at a CAGR of 4.91% from 2016 to 2021.29 The Total
28 https://www.ibisworld.com/united-states/market-research-reports/landscaping-services-industry/ 29 https://www.businesswire.com/news/home/20170302005047/en/Top-6-Vendors-Global-Landscaping-Gardening-Services
37
Available Market (TAM) for Well Done Landscape LLC will be the value of the global landscaping
and gardening industry ($224.27 billion in 2021 at 4.91% CAGR).
5.1.3 Serviceable Available Market (SAM)
According to IBIS World, the landscaping services market in the US is valued at $99 billion in 2019
at 4.4% CAGR within the forecast period (2014 – 2019).30 Hence, the Serviceable Available Market
(SAM) for Well Done Landscape LLC will be the revenue of the landscaping service market in the
US ($99 billion in 2019 at 4.4% CAGR)
5.1.4 Serviceable Obtainable Market
Our serviceable obtainable market (SOM) will be a share of the landscaping service market size in the
US.
Figure 5.1: The Serviceable Obtainable Market (SOM) for Well Done Landscape LLC (2019-2024)
The above table shows the Serviceable Obtainable Market (SOM) for Well Done Landscapes LLC
within (2020-2024) as obtainable from the total market size of the landscaping and gardening services
in the US ($99 billion at 4.4% CAGR). At the end of the 5th year of expansion, it is anticipated that
Well Done will have (0.003% of $ 120,448,637,337.60) the total market share of the US Market in
2024.
30 https://www.ibisworld.com/united-states/market-research-reports/landscaping-services-industry/
TOTAL US MARKET
BASE YEAR (2019) 2020 2021 2022 2023 2024
$ 99,000,000,000.00 $ 102,960,000,000.00 $ 107,078,400,000.00 $ 111,361,536,000.00 $ 115,815,997,440.00 $ 120,448,637,337.60
ANNUAL REVENUE
$ 1,078,744.00 $ 1,294,493.00 $ 1,864,070.00 $ 2,912,609.00 $ 4,194,158.00
MARKET SHARE
0.001% 0.001% 0.002% 0.003% 0.003%
38
5.2 MARKET NEED
The Landscaping service market is witnessing rapid growth owing to increased spending on
construction of private nonresidential entities and hike in disposable income in the US among others.
There are increasing client demands to increase their property value, improve appearance and create
useable space for outdoor activities around the home or business, better use of land and also avoid
accidental damage due to their own lack of knowledge on lawn maintenance techniques. With regards
to this, Well Done as a one stop provider of landscape design and property management services for
both residential and commercial properties, will bring out the intrinsic beauty of nature through
extensive experience in the industry coupled with a pool of qualified and professional staff that are
committed to delivering the highest level of customer experience.
5.3 TARGET MARKET
Well Done as Massachusetts’ top landscape and construction experts will primarily provide high
quality service delivery coupled with excellent customer satisfaction to clients of residential and
commercial properties. Our primary target market is segmented into two;
• Residential properties: Residential properties in the Middleboro, Lakeville, Raynham,
Bridgewater, and Freetown areas with a household annual combined income of over $110,000
per year.
0.001% 0.001% 0.002% 0.003% 0.003%
Total US Market $102,960,000, $107,078,400, $111,361,536, $115,815,997, $120,448,637,
Annual Revenue $1,078,744.00 $1,294,493.00 $1,864,070.00 $2,912,609.00 $4,194,158.00
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
$4,500,000.00
$90,000,000,000.00
$95,000,000,000.00
$100,000,000,000.00
$105,000,000,000.00
$110,000,000,000.00
$115,000,000,000.00
$120,000,000,000.00
$125,000,000,000.00
RE
VE
NU
EServiceable Obtainable Market for Well Done
Landscapes LLC
39
• Commercial Properties: Similarly, we are targeting commercial properties in the local area.
o Industrial
o Medical
o Dental, and
o Legal entities
5.4 MARKET SEGMENTATION31
The landscaping market is mainly segmented into;
• Residential
o Single-family residential
o Multi-family residential
• Commercial/industrial
• Government/institutional
• Others
31 https://ipropertymanagement.com/landscaping-industry-statistics
59%
8%
22%
11%
Landscaping Market Segmentation
Single-family residential
Multi-family residential
Commercial/industrial
Government/institutional
Others
40
6 ANALYSIS OF COMPETITION
This section reviews the competition in the market. Well Done Landscapes will operate in; the
current and potential competition in the business environment, strengths, and weaknesses of
competitors, and so on. We will conduct in-depth research that will help us to spot and glean from
the opportunities in the market to develop matrixes for spotting unserved or underserved gaps in the
market, form differential advantages, and craft strategic plans that will prevent other competitors from
entering our market for business perpetuity.
41
COMPANY NAME COMPANY PROFILE STRENGTHS/EGDES WEAKNESSES PRICING/WORTH
MACON
LANDSCAPE
• Macon Landscape Contracting
Services Inc. is a company that provides
landscape services and materials to
builders, homeowners, and corporations.
• The company was established in 1999
and incorporated in 2001 in
Massachusetts.
• They purported to handle all aspects of
your commercial or residential project of
any size
• Services: Landscape design, Mulching
Installation, Hydroseeding/Sodding,
retaining walls, Tree service, Fertilization,
Snow and ice removal, landscaping
maintenance, irrigation, and aerations
• Location: Lakeville, MA 02347
• Website:
http://www.maconlandscape.net
• 20 years in the industry
• Investment in the latest
equipment
• Subcontractor works • Current estimates
show this company
has an annual revenue
of $1 to 2.5 million
and employs a staff of
approximately 20
42
WASHBURNS
LANDSCAPING
• The company provides residential and
commercial landscape design,
construction and maintenance.
• Washburn as an LLC was founded in
1999 by Nick Washburn with the
education in both landscape design and
construction
• Services: Custom patios, retaining walls,
drainage solutions, walkaway, mulching,
seasonal cleanups, fertilization, weekly
mowing, pruning of shrubs and
ornamentals irrigation startups and
winterizations, snow removal, etc.
• Location: 216 Old Center Street
Middleboro, MA 02346
• Website:
https://www.washburnslandscaping.co
m/
• Founder’s background in
the business
• Qualified and professional
team
• Client satisfaction
• Latest technology for
designs
• High employee
turnover
• Current estimates
show this company
has an annual revenue
of $439,440 and
employs a staff of
approximately 3
43
YUKON
LANDSCAPING
• The company provides landscape
construction services for residential and
commercial property.
• Yukon Landscaping, Inc. was founded in
1995 by Kenneth A. Bollin and Shawn L.
Flaherty
• Services: Landscape Construction,
Maintenance, and Masonry work, in
house irrigation installation and service,
fertilization, winter maintenance, snow
removal, athletic filed, etc.
• Location: 407 South Street East, Unit A-
5 Raynham MA 02767
• Website:
http://www.yukonlandscaping.com/ind
ex.html
• Over 20 years’ experience
• A member of PLANET
(Professional Landcare
Network), and a member
of BAGB (Builders
Association of Greater
Boston)
• Full year fertilization
discount
• Trained professionals in
the business
• Poor customer
relationship
• Bad reviews
• N/A
HIGGINS
LANDSCAPING
• The company specializes in turf
management through integrated
fertilizing programs, shrub & tree care,
turf pest control, and organic feedings.
• The company was established over a
decade ago
• 10% guarantee
• Over 10 years’ experience
• Excellent service
• Charity sponsorship
• Low brand recognition
• Lack of certification
• N/A
44
• Services: Annual thatching & aerating
programs slice seeding & over seeding,
mulching, insect control, etc.
• Location: 55 Alexander Drive
Bridgewater, Ma 02324
• Website:
http://www.higginslandscaping.com/in
dex.php
TRAHAN’S
LANDSCAPING &
DESIGNS
• The company offers landscape design,
installation, and maintenance services
• The company was established in
Massachusetts in 1987 by Mr. Wayne
Trahan
• Services: Waterfalls, Paver Walkways,
Seasonal Cleanups, Stone Walls & Patios,
Landscape Design/Installation,
Landscape Management; fertilizing, turf
care, water gardens, maintenance, etc.
• Location: 1 Pine Circle East Freetown,
MA 02717
• Website:
http://www.trahanslandscapingdesigns.
com/
• Offering a history of
experienced local service
• Creativity and skills
• Manpower
• Focus much on
commercial
• Lack of latest
technology in business
operation
• Lack of certification
• N/A
45
DELLAROCCOS
LANDSCAPE
• Dellaroccos is a family owned
landscaping business that provides
landscape design and services
• The company was established in 1986 by
Timothy Dellarocco
• Services: Digital design, hardscape,
landscape design, irrigation, natural
stone, retail yard, etc.
• Location: 193 West Grove Street
• Route 28 Middleboro, MA 02346
• Website: https://www.dellaroccos.com/
• Over 30 years’ experience
in the business
• Technology
• Client relationship
• High turnover of staff • Current estimates
show this company
has an annual revenue
of $235,378 and
employs a staff of
approximately 5.
STEVE'S LAWN
CARE & SON’S
• Steve’s Lawn Care & Son’s is family-
owned business that provides lawn
maintenance services
• The company was established in 1986 by
Steve Prisco
• Services: Mulching, Fertilization
program, Pruning & Trimming, Lawn
Mowing, Lawn Aeration, etc.
• Location: 8 Romney Road Bridgewater,
MA 02324
• Website:
https://www.steveslawncare.com/
• Over 30 years’ experience
• Customer service
• Competitive pricing
• Lack of modern
technology
• Limited to Lawn
maintenance and
services
• Current estimates
show this company
has an annual revenue
of $ 241, 337
46
GREENER
HORIZONS LLC
• Greener Horizons is a commercial and
residential landscape management and
design/build firm
• The company was established in 2005 by
Michael J Quirk
• Services: landscape management,
Hardscape, snow & ice management,
landscape construction services, etc.
• Location: 7 Clayton Road Middleboro,
MA 02346
• Website:
https://www.greenerhorizon.com
• Quality
• Positive customer
experience
• Trained staff
• Affiliation and certification
• Traditional method • Current estimates
show this company
has an annual revenue
of $ 1,287,837 and
employs a staff of
approximately 15
47
6.1 COMPETITIVE ADVANTAGES
• Extensive experience in the industry: more than 10 years’ vast experience and over 40
years’ combined experience
• Strong local presence with annual growth of 20-30%
• Offering over 95% client satisfaction and building a strong relationship with clients
• Qualified, trained and professional staff
• Competitive price and efficient service delivery
• 100% quality assurance
• Licensing and certification: We are licensed in the state of Massachusetts, as well as hold
ICPI certifications for paver installations and, are members of both SIMA (Snow and Ice
Management Association) and NALP (National association of landscape professionals).
• In-housing staff: all works are carried out by our trained in house staff
• Modern Technology: We utilize modern technology in the field for designs as well as in
communicating accurately and effectively with our clientele from the initial estimate all the
way through project completion.
• Most efficient and wide range of equipment (specialized mulching machines, track loaders,
excavators, trucks, and trailers, among others) to deliver our services with the least amount of
downtime
• Warranty coverage: we carry a 5-year warranty on installation specific failures (premature
settlement or movement) while a 1-year replacement warranty covers for plant stock and living
materials
• Agile marketing strategies
• Open 24/7 for salt purchases and loading during storm events
48
7 MARKETING PLAN
7.1 MARKETING OBJECTIVES
• To build strong brand awareness and improve brand equity
• To maintain a lower year-on-year client attrition rate
• To improve customer service and increase customer retention
• To grow and expand our line of business across Massachusetts
7.2 MARKETING STRATEGIES AND IMPLEMENTATION OFFLINE ONLINE
• Partnership and network
• Referral
• Event Marketing
• Direct marketing
• Print Media
• Storefront
• Community group
• Website
• Search Engine Optimization (SEO)
• Social Media Marketing
• Content Marketing
• Email Marketing
• Blogging
• Google and Facebook Ads
ACTION: Partnership and Networks TIMEFRAME: This should be done quarterly.
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
• Events
• Speaking Engagements
• Organizing events and attend
relevant events
• Publicize event within the
community
• Engage attendees interactively
• Get an Authentic Buyer
Perspective
• Brand campaign and publicity
• Business visibility
• Enhance Customer Loyalty with
Real-Time Experiences
• Boost Your Social Media
Engagement
• Increase Organic Traffic with an
Event Calendar
• Available platforms for business
transactions, promotions &
marketing.
• Increase sales volume
ACTION: Partnership and Networks, Community Group, and Direct Marketing TIMEFRAME: This should be done continuously and subject to review at least, once a year.
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
49
• Community Group
• Partnership and
networks
• Direct Marketing
• Interact with a community of
existing customers
• Community outreach; hold
interviews on site
• Receive valuable feedback from
service delivery
• Working with affiliates, partners,
distributors, licensees or agents
will help us get established in a
new market and environment.
• Harnessing personal networks to
grow a business
• Training and mentorship process
for new recruits
• Employees to put door hangers
on the closest 8 houses to the
work site
• Generate leads and recruit
customers
• Build relationships with new
customers
• Test the appeal of our service
• Increase the volume of sales
• Increase a loyal customer base
and a better overall reputation
ACTION: Internet and Online Presence
TIMEFRAME: This should be done within the first three (3) weeks of plan execution.
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
• Website
• Social Media Accounts
• Blog
• Listings and Directories
• Improve our company website
features and contents
• Integrate it with appealing
designs and features
• Introduction of expansion of
business on Social Media
Accounts – Facebook,
Instagram, Twitter, YouTube,
Pinterest.
• Improve Company’s blog tab.
• Listing the company on online
directories and listings.
• Brand campaign and publicity.
• Business visibility
• Builds authority in the industry
• Improves conversion rates
• Generate inbound links
• Rank for long-tail search queries
• Business followership
• Available platforms for business
transactions, promotions &
marketing.
ACTION: Content creation and Marketing. TIMEFRAME: This should be done at least, two (2) times a week
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
50
• Website
• Social Media Accounts
• Blog
• Listings and Directories
• Adjust to target homeowners or commercial facilities who are unhappy with their current provider through thought-provoking blog contents – "The Well Done Difference"
• Creative use of keywords that resonate with having a sustainable environment, etc.
• Regular update of contents.
• Creative use of hashtags.
• Seasonal content creation (July – September) for unhappy clients of other providers
• Better ranking of the website.
• Better visibility through organic searches on search engines.
• Increased traffic on the website
• Increase client base
• Improves brand awareness and recognition
• Creates loyalty and trust, with both current customers and prospects
• Build brand equity, authority, and credibility
• Positions our business as an expert in the industry
ACTION: Email marketing. TIMEFRAME: This should be done on a monthly basis depending on relevance.
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
• Across contact points.
• Gathering database and emails of website visitors and customers.
• Automatic follow up email campaign for up to 12 months from the date of the completion of the project estimate
• Reach out to each client via email at the end of each day or project
• Automated review requests
• Provide winter storm warnings and updates, spring cleanup booking and the upcoming first application of turf fertilizer, etc.
• Market recognition with the target audience.
• Targeted and personalized content
• Build brand credibility and better brand recognition
• Stronger customer relationships
• Boost sales
• Increased traffic to our website
• Sync Up with the Customer Purchase Cycle
ACTION: Google Ads; Social Media Ads; Online Reviews. TIMEFRAME: This should be done within April – June and be reviewed once (1) each month.
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
• Google Ads
• Facebook Ads
• Online reviews
• Creating Ads
• Pay for Ads
• Take pictures at every project phase in a project over $5,000 in value
• Post Ads on platforms
• Place Ads where the target audience are likely to be
• Increased brand awareness
• Increased followership.
• Increased engagement.
• Improved visibility of the brand.
• Outrank competitors
ACTION: Print Materials; Signage. TIMEFRAME: This should be done continuously and subject to review at least, once a year.
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
51
• Business cards
• Brochures
• Printing of materials with the company’s name, logo, contact information, and business description.
• Mailing of print materials to the target audience.
• Distribution and placement of materials at strategic points.
• Improved brand popularity.
• Business visibility.
• Increased sales volume.
• Increased website traffic.
ACTION: Referrals TIMEFRAME: This should be done continuously and subject to review at least, thrice a year
CHANNELS WHAT IS INVOLVED EXPECTED RESULTS
• Online.
• Offline.
• Customers and website visitors will be requested to make referrals.
• Increased customer loyalty.
• Improved brand popularity.
• Increased sales volume.
ACTION: Storefront TIMEFRAME: This should begin after securing fund and developing the facility
• CHANNELS • WHAT IS INVOLVED • EXPECTED RESULTS
• Business location • Purchasing a retail location where we can have a storefront
• Utilize print media, social media platform to draw attention to your location
• putting signs up in the building
• Build stronger brand visibility and equity
• Improved revenue and increased
• Marketing exposure
52
7.3 MARKETING PLAN MILESTONES
MARKETING PLAN MILESTONES
Task Start Date Duration End Date
Winter updates 1-Dec 121 31-Mar-20
Signage 5-Jan 10 15-Jan-20
Email 5-Jan 365 4-Jan-21
Web Revamping 10-Jan 7 17-Jan-20
Facebook Ads 5-Jan 365 4-Jan-21
Google Ads 5-Jan 365 4-Jan-21
Blog content 1-Jan 365 31-Dec-20
7.4 STRATEGIC MARKETING INITIATIVES Website Revamping: The company website will be optimized to handle higher volumes of traffic
with high-quality and original content. We will adopt rating system, feedbacks/reviews to measure the
level of client satisfaction.
Social Media: We will engage clients with thought-provoking contents to increase brand awareness
and loyalty, connect with more clients, boost inbound traffic, among others. We will update the page
Today
Winter updates
Signage
Web Revamping
Facebook Ads
Google Ads
Blog content
12-Oct 1-Dec 20-Jan 10-Mar 29-Apr 18-Jun 7-Aug 26-Sep 15-Nov 4-Jan 23-Feb
MARKETING PLAN MILESTONES
Duration
Progress
53
with high resolution pictures at every project cycle of any projects we will be working on. More so, we
will update clients on upcoming seasons, events, seasonal discounts, etc.
Signage: We will take the advantage of our high quality signage to improve brand exposure and keep
our business at the top of the mind of customers.
AdWords: Facebook and Google Ads will be utilized round the year to improve visibility. However,
Facebook and Google Ads will be utilized heavily in April to June for landscape maintenance and
construction services; knowing quite well it is the busiest period for our services offering.
Email Marketing: Email contacts generated from web form will be sent automated review requests,
seasonal updates (during the winter months December - March we will provide winter storm warnings
and updates, upcoming seasons such as snow and ice), discounts packages, etc. this will be run round
the year.
Blog Contents: We will leverage on the effectiveness of blogs in our landscape business to develop
and strengthen relationships with existing and new customers with optimized and thought-provoking
contents.
7.5 KEY PERFORMANCE INDICATORS Customer satisfaction and retention: This metric however will help us to determine the level of
customer satisfaction and how we can exceed their expectations subsequently. We will make
conscientious efforts to increase our weekly impressions, get good reviews and feedbacks from clients,
and impressive rating system via company website.
Organic traffic: This is closely linked to SEO and it shows that clients are finding the company
through searches; hence this indicator will be properly monitored and refined accordingly.
Referral ratio: This will be monitored as well to show which of our clients were referred to us. This
is important as it shows that current customers are satisfied with our services.
7.6 MARKETING BUDGET Marketing Type Description Cost per Month ($)
Creation of Online Presence. Social media marketing 150
54
Search Engine Optimization (SEO).
Costs of utilizing SEO to increasing the quantity and quality of traffic to our website through organic search engine results
180
Email marketing. Follow up email marketing 183
Google Ads; Social Media Ads; Online Reviews.
Total cost for ads on every platform used.
220
Print Materials; Signage. Cost design, printing, and distribution. 100
Total $833
7.7 SALES STRATEGY • Referral: We offer referral bonuses at time of sign on for clients who recommend their
neighbors, friends, and family for our service.
• Discount: We offer early season discount, fall clean ups at a deeply discounted labor rate,
among others
• Spooky Savings: We offer a "spooky savings" special on construction projects during
October
• Warranty Coverage: We offer a 5-year warranty on installation specific failures such as
premature settlement or movement for hardscape services (walkways, patios and retaining
walls) while for plant stock and living materials a 1-year replacement warranty covers for that
with terms and conditions.
8 RISK ANALYSIS
This section reviews the risks that may undermine key business initiatives or projects, identify and
manage potential problems proactively.
TYPE OF RISK RISK MITIGATING STRATEGY
SEASONAL RISK The concentration of revenue in a
particular season leaves a business
particularly exposed to risks such as
• Add complementary services
• Provide winter storm warnings and
updates via email to attract
customers
55
weather or any event that disrupts sales
for a few months
• Offer early season discounts to
secure services
• Constant reporting
• Offer a "spooky savings" special on
construction projects
AUTOMOBILE RISK Break down of vehicle during daily
operations (e.g., driving from job site
to job site or transporting tools), the
use of a vehicle can lead to potential
accidents and major insurance claims
• Follow recommended servicing and
maintenance schedules
• Keep stock of parts
• Have a contract with emergency
24/7 repair services
• Train employees on safe use,
maintenance, and basic repair
• Insured assets
COMPETITIVE RISK The likelihood of competitive forces
will prevent us from achieving a goal
which can result in declining business
revenue or margins.
• Monitor market dynamics
• Improve competitive analysis
• Develop feedback mechanisms to
keep track of customer expectations
• Invest more in research and
development activities
• Offer superior service that will build
loyal clients
• Implement effective marketing
strategies to attract clients
• Build networks and spur strategic
partnership
FINANCIAL RISK Insufficient funds to meet financial
obligations, and the potential for
financial loss and uncertainty about its
extent.
• Perform Quality Control Tests
• Diversify Income
• Evaluate business operations for
efficiency
• Improve cash flow management
• Review costs and inventory
56
• Accountancy software
use/replacement
• Careful use of long and short term
financing
ECONOMIC RISK Likelihood of macroeconomic
conditions like government regulation,
or political stability affect an
investment
• Build enough capability and ensuring
we scale to meet business volumes
• Establish standards to guide business
practices
• Ensure due diligence in business
operation
• Actively Responding to Recession
and Competition
• Establish a working capital buffer
HEALTH AND
SAFETY
Exposure to hazards during work • Create a health and safety policy
Identify hazards
• Evaluate the risks and complete a
risk assessment
• Provide staff training e.g. on work
environment and equipment,
personal protectives, etc.
• Have procedures for reporting
incidents.
57
9 SWOT ANALYSIS
Over the past years, we have maximized the opportunities in the business environment through
adequate information for solid decision making and strategic planning to provide excellent services
and improved sales. Similarly, Well Done will evaluate the strengths, weaknesses, opportunities, and
threats in order to record different perceptions, summarize and integrate various types of resourceful
information, match the resources and capabilities of our business to the competitive environment,
and provide the basis for successful strategic planning.
9.1 STRENGTHS
• Over 13 years’ vast experience in the industry and knowledge garnered in growing a sustainable
and thriving business
• Strong management with over 40 years of combined experience
• Strong local presence with a highly desirable community of prospective customers
• Creativity and unique craftsmanship
• Excellent customer service and satisfaction
• Solid in-house staff
• Commitment to training staff
9.2 WEAKNESSES • Limited Expansion Fund: Over the years, Well Done has utilized short term, higher interest
loans and lines of credit for procuring equipment to scale and expand our line of business as
well as rapidly gaining assets without the extensive loan process and the opportunity to pay
off purchases in a single season. However, we intend to change our financial approach,
improve brand equity and further expand the business by seeking a long term low interest (20
years at 7.75%) SBA loan through Rockland Trust. The total investment loan $1.1 million will
be utilized for the purchase and development of land in Middleboro (4 Acres), store front
property with ample area for expansion, replacement of older trucks to minimize repair costs
and down time to allow for better forecasting of vehicle and equipment expenses, and establish
a working capital buffer to protect against a potential economic slowdown which would be
held in a safe (interest bearing savings for emergency purposes only). With this in place, we
can drive the idea of reality with the highest level of performance and profitability.
58
• Low Brand Equity: Despite the fact that we have been in the business for over 13 years in
the niche market, currently, we still have some clients who have lived in the location for years
without recognizing our brand even for the longer years in the business. Although we grow
on average 20- 30% per year, we intend to increase marketing exposure and improve brand
equity by having our own storefront branding coupled with effective marketing strategies
(both online and offline marketing techniques) that are driven by data to achieve a positive
ROI on every marketing effort.
9.3 OPPORTUNITIES
• Innovations in landscaping and gardening practices
• The increasing number of residential and commercial projects
• The growing number of multifamily properties encouraging outsourced landscaping and
gardening services
• Increasing disposable income levels
• Growing demand for outdoor natural aesthetics
• Rapid urbanization and infrastructural developments
• Continuous technological advancements
9.4 THREATS
• Seasonal fluctuations in business
• Shortage of quality labor
• Fluctuation in fuel price
• Strict government policies
• Economic downturn
• Emergence of new competitors and very aggressive price wars
9.4.1 Weaknesses and Threats Assessments
• Secure long term and low interest SBA loan to expand business
• Improve on our wide range of service delivery to increase revenue
• Improved staff training for the highest level of performance
• Capitalized on effective marketing strategies to improve brand awareness and equity
• Leverage on modern equipment in the industry to improve productivity
59
• Expand business to attract a significant number of prospective customers in the strategic
location
• Improve customer experience and build a solid relationship with stakeholders
• Employ continuous market research to gain adequate market insights
• Employ smart approach for financial planning
• Establish a working capital buffer of $100,000 to protect against a potential economic
downturn
• Maintain a solid and dynamic business model to capture value, build a strong competitive
advantage and generate sustainable business
• Maintain a healthy and positive cash flow
60
10 FINANCIAL PLAN
The financial plan will consist of the funds required to keep up our business, along with the projected
income statement and statement of financial position. The business is raising total of $1,100,000
through loan in year zero to kick-start the operation of the business and serves as working capital.
Investment Raised Begin
Equity $0
Debt $1,100,000
Total Investment $1,100,000
10.1 ASSUMPTIONS 1. The company is looking to raise an investment of $1,100,000 in capital funding.
2. The capital raised will cover Commercial property, Equipment upgrade, miscellaneous,
telephone, insurance, Marketing and promotions and working capital to cover the pre-
operational expenses.
3. The business will operate six days in a week.
4. The operational expenses will increase in proportion yearly along with the revenue streams.
5. The cost of sales is 45%
6. The corporate tax rate is 21%
7. The inflation rate is 2.44% in the first year, 2.13% in the second year, 2.04% in the third year,
2.07% in the fourth year and 2.12% in the fifth year.
8. The forecasted loan interest rate is 7.75%.32
9. The loan would be repaid for a period of 7 years.
10.2 REVENUE ASSUMPTION 1. The company would generate its revenue from mowing, mulching, clean up, turf aeration, turf
fertilization, miscellaneous landscape maintenance, hardscape, lawn installation/repair,
masonry installation/repair, plant installation, constructions, Garage Bay, snow and ice
management and cleaning.
2. We have forecasted $39.81 as the price mowing, $1,483.29 as the price for mulching, $564.20
as the price for clean-up, $418.99 as the price for turf aeration, $112.22 as the price for turf
32 https://fitsmallbusiness.com/sba-loan-rates/
61
fertilization, $851.51 as the price for miscellaneous landscape maintenance, $7744.07 as the
price for hardscape, $1488 as the price for lawn installation/ repair, $2,359.23 as the price for
masonry installation/ repair, $3,530.00 as the price for plant installations, $1,472.59 as the
price for constructions, $258.61 as the price for snow and ice management, $700 as the price
for garage bay, and $1,101.75 as the price for cleaning.
3. The revenue would increase by 19.8% in the second year, 44.6% in the third year, 55.9% in
the fourth year and 43.8% in the fifth year.
10.3 REVENUE
Revenue Base Price
Mowing $39.81
Mulching $1,483.29
Clean up $564.20
Turf Aeration $418.99
Turf Fertilization $112.22
Miscellaneous landscape maintenance $851.51
Hardscape $7,744.07
Lawn installation/repair $1,488.00
Masonry installation/repair $2,359.23
Plant installations $3,530.00
Construction $1,472.59
Snow and ice management $258.61
Cleaning $1,101.75
Garage Bay $700.00
Income Forecast Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Mowing 59,715 71,658 103,188 161,231 232,172
Mulching 118,663 142,396 205,050 320,391 461,363
Clean up 56,420 67,704 97,494 152,334 219,361
Turf Aeration 16,760 20,112 28,961 45,251 65,161
Turf Fertilization 50,499 60,599 87,262 136,347 196,340
Miscellaneous landscape maintenance 51,091 61,309 88,285 137,945 198,640
Hardscape 232,322 278,787 401,453 627,270 903,268
Lawn installation/repair 52,080 62,496 89,994 140,616 202,487
Masonry installation/repair 23,592 28,311 40,767 63,699 91,727
Plant installations 141,200 169,440 243,994 381,240 548,986
62
Construction 80,992 97,191 139,955 218,680 314,899
Snow and ice management 129,305 155,166 223,439 349,124 502,738
Cleaning 66,105 79,326 114,229 178,484 257,016
Garage Bay 8,400 8,400 20,160 25,200 30,240
Total Income 1,087,144 1,302,893 1,884,230 2,937,809 4,224,398
10.4 KEY FINANCIAL METRICS Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Sales Growth 0.0% 19.8% 44.6% 55.9% 43.8%
COGS to Sales 45.0% 45.0% 45.0% 45.0% 45.0%
Gross Profit Margin 55.0% 55.0% 55.0% 55.0% 55.0%
Operational Expenses to Sales 25.2% 21.3% 19.1% 15.2% 13.5%
Return on Investment 17.2% 26.1% 43.9% 80.0% 123.0%
Net Profit Margin 29.8% 33.7% 35.9% 39.8% 41.5%
Return on Capital Employed 171.7% 92.3% 70.5% 63.5% 55.0%
Return on Assets 25.8% 30.4% 36.4% 42.9% 43.0%
10.5 FINANCIAL SUMMARY INCOME AND EXPENSES
Item Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Total Revenue 1,087,144
1,302,893 1,884,230 2,937,809 4,224,398
Operational Expenses (273,647)
(277,161) (360,209) (447,272) (568,410)
Net profit 188,836
287,408
482,586
880,417
1,353,255
LIQUIDITY OF BUSINESS
Net Cash from Operating Activities
381,598
486,487
680,216
1,099,095 1,569,148
Net Cash from Investing Activities
(910,000)
-
-
-
-
Net Cash from Financing Activities
890,523
(209,477) (209,477) (209,477) (209,477)
Cash at the End of the Year 362,121
639,132
1,109,871 1,999,489 3,359,161
FINANCIAL POSITION
Total Asset 1,255,574
1,443,421 1,855,462 2,725,735 4,085,479
Total liabilities & Equity 1,255,574
1,443,421 1,855,462 2,725,735 4,085,479
63
10.6 LOAN SCHEDULE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Equity Contribution
$ -
Loan Principal $ 1,100,000
Loan Term Years 7
Interest Rate %/Year 7.75%
Loan Year Years 1 2 3 4 5 6 7
Interest Payment
%/Year (85,250)
(75,622) (65,249) (54,071) (42,027) (29,050) (15,067)
Principal Payment
$ (124,227)
(133,854) (144,228) (155,405) (167,449) (180,427) (194,410)
Total Debt Service
$ (209,477)
(209,477) (209,477) (209,477) (209,477) (209,477) (209,477)
Remaining Principal
$ 1,100,000
975,773
841,919 697,691 542,286 374,837 194,410 (0)
64
10.7 PROJECTED INCOME STATEMENT Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Revenue
Revenue 1,087,144
1,302,893
1,884,230
2,937,809
4,224,398
Total Revenue 1,087,144 1,302,893 1,884,230 2,937,809 4,224,398
Cost of Sales
Cost of sales 489,215
586,302
847,904
1,322,014
1,900,979
Total Cost of sales (489,215) (586,302) (847,904) (1,322,014) (1,900,979)
Gross Profit 597,929 716,591 1,036,327 1,615,795 2,323,419
Operational Expenses
Salaries & Wages 48,000
49,022
74,534
113,321
172,293
Auto and truck 60,000
61,278
77,848
98,898
125,639
Utilities 1,500
1,500
1,906
2,421
3,075
Professional fees 3,000
3,064
3,892
4,945
6,282
Advertising & promotion
10,000
10,213
17,570
22,321
28,357
Meals & Entertainment 4,000
4,085
7,028
8,929
11,343
Travel Expense 1,500
1,532
2,636
3,348
4,254
Telephone 2,000
2,043
3,514
4,464
5,672
Education and Training 1,404
1,434
2,467
3,134
3,981
Insurance 30,000
30,639
52,711
66,964
85,072
Uniforms 1,500
1,532
2,636
3,348
5,091
Office Supplies 2,000
2,043
3,514
4,464
5,672
Dues & subscription 1,600
1,634
2,811
3,571
4,537
Depreciation 107,143
107,143
107,143
107,143
107,143
Total Operational Expenses
273,647 277,161 360,209 447,272 568,410
Profit Before Interest & Tax
324,283 439,430 676,117 1,168,523 1,755,008
65
Interest (85,250) (75,622) (65,249) (54,071) (42,027)
Profit Before Tax 239,033 363,807 610,868 1,114,452 1,712,981
Tax (50,197)
(76,400)
(128,282)
(234,035)
(359,726)
Net Profit 188,836 287,408 482,586 880,417 1,353,255
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
1 2 3 4 5
Total Revenue 1,087,144 1,302,893 1,884,230 2,937,809 4,224,398
Total Operational Expenses 273,647 277,161 360,209 447,272 568,410
Net Profit 188,836 287,408 482,586 880,417 1,353,255
Projected Profit & Loss Account
Total Revenue Total Operational Expenses Net Profit
66
10.8 PROJECTED CASH FLOW STATEMENT Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
EBIT 324,283
439,430
676,117
1,168,523
1,755,008
Adjustment for non-cash item
107,143
107,143
107,143
107,143
107,143
Payables 40,768
8,091
21,800
39,509
48,247
Receivables (90,595)
(17,979)
(48,445)
(87,798)
(107,216)
Tax paid -
(50,197)
(76,400)
(128,282)
(234,035)
Cash Flow from Operation 381,598 486,487 680,216 1,099,095 1,569,148
Investing Activities
Acquisition Cost (160,000)
Capital expenditure (750,000)
-
-
-
-
Cash Flow from Investment
(910,000) -
-
-
-
Financing Activities
Proceeds from Investors' Equity
-
-
-
-
-
Long term borrowings 1,100,000
Repayment (209,477)
(209,477)
(209,477)
(209,477)
(209,477)
Dividend paid -
-
-
-
-
Cash Flow from Financing 890,523 (209,477) (209,477) (209,477) (209,477)
Net cash generated in the year
362,121
277,011
470,739
889,618
1,359,671
Opening cash balance -
362,121
639,132
1,109,871
1,999,489
Closing cash balance 362,121 639,132 1,109,871 1,999,489 3,359,161
67
1 2 3 4 5
Cash Flow from Operation 381,598 486,487 680,216 1,099,095 1,569,148
Cash Flow from Investment (910,000) - - - -
Cash Flow from Financing 890,523 (209,477) (209,477) (209,477) (209,477)
Closing cash balance 362,121 639,132 1,109,871 1,999,489 3,359,161
(1,500,000) (1,000,000)
(500,000) -
500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000
Projected Cash Flow Statement
Cash Flow from Operation Cash Flow from Investment
Cash Flow from Financing Closing cash balance
68
10.9 PROJECTED STATEMENT OF FINANCIAL POSITION Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Non-Current Assets
Non-Current Assets 750,000
750,000
750,000
750,000
750,000
Accumulated Depreciation
(107,143)
(214,286)
(321,429)
(428,571)
(535,714)
642,857 535,714 428,571 321,429 214,286
Acquisition cost 160,000
160,000
160,000
160,000
160,000
Total Non-Current Asset
802,857 695,714 588,571 481,429 374,286
Current assets
Receivables 90,595
108,574
157,019
244,817
352,033
Cash and cash equivalents
362,121
639,132
1,109,871
1,999,489
3,359,161
Total current assets 452,717 747,707 1,266,891 2,244,307 3,711,194
Total assets 1,255,574 1,443,421 1,855,462 2,725,735 4,085,479
Current Liabilities
Payables 40,768
48,858
70,659
110,168
158,415
Other payables 50,197
76,400
128,282
234,035
359,726
Total Current Liabilities
90,965
125,258
198,941
344,203
518,141
Non Current Liabilities
Long term borrowings 975,773
841,919
697,691
542,286
374,837
Total Liabilities 1,066,738 967,177 896,632 886,489 892,978
Equity
Preference Share Capital
-
-
-
-
-
Retained Earnings 188,836
476,244
958,830
1,839,247
3,192,502
Total equity 188,836 476,244 958,830 1,839,247 3,192,502
Total Equity and Liabilities
1,255,574 1,443,421 1,855,462 2,725,735 4,085,479
69
1 2 3 4 5
Total assets 1,255,574 1,443,421 1,855,462 2,725,735 4,085,479
Total equity 188,836 476,244 958,830 1,839,247 3,192,502
Total Equity and Liabilities 1,255,574 1,443,421 1,855,462 2,725,735 4,085,479
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Projected Balance Sheet
Total assets Total equity Total Equity and Liabilities
70
11 FINANCIAL ANALYSIS
11.1 SALES It can be observed in the first year that WELLDONE LANDSCAPES have annual revenue of $
1,087,144 in its first year of operations, in its second year, annual revenue will amount to $ 1,302,893,
$ 1,884,230 in the third year, sales further increased to $ 2,937,809 in the fourth year and $ 4,224,398
in the fifth year.
11.2 EXPENSES The operational cost incurred by the business in year one $ 273,647, year two being $ 277,161, year
three $ 360,209. The figure increased to $ 447,272 in year four and year five operational cost is $
568,410.
11.3 EBITDA The earnings before interest and tax, dividend and amortization for year one is $ 324,283, year two is
$ 439,430, year 3 is $ 676,117. Year four amounted to $1,168,523 and in year five amounted to $
1,755,008
11.4 CASH FLOW The cash flow statement shows the movement of cash from and to the business. The first year
recorded a closing balance of $ 362,121, year two $ 639,132, year three $ 1,109,871. Year four and five
experienced an increase to $ 1,999,489 and $ 3,359,161 respectively.
![NTENTS CONTENTS CONTENTS CONTENTS CONTENT · 2 NTENTS CONTENTS CONTENTS CONTENTS CONTENT Speaking Part 1 / Part 2 6 Listening Part 1 / Part 2 8 Writing Letter [Informal] 9 Unit 1](https://img.dokumen.tips/doc/110x75/5ae7fb077f8b9a3d3b8f4ab4/ntents-contents-contents-contents-content-ntents-contents-contents-contents-content.jpg?t=1695924381)
