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Business Plan CRMT Industrial Services, Inc New Engineering Solutions to the Industry.

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Presentation on theme: "Business Plan CRMT Industrial Services, Inc New Engineering Solutions to the Industry."— Presentation transcript:

1 Business Plan CRMT Industrial Services, Inc New Engineering Solutions to the Industry

2 CRMT Industrial Services, Inc New Engineering Solutions to the Industry

3 1. EXECUTIVE SUMMARY CRMT Industrial Services, Inc. will be formed as a consulting and training firm specializing in welding engineering services. A home office in Long Island City, NY will be established the first year of operations to reduce start up costs. The founders of the firm are professional engineers and managers with more than 25 years of progressive and responsible experience.

4 Sales Projections YEARSALES ($)PROFITS ($)SALES / PROFITS (%) 2008$684,000$54,7208.00% 2009$889,200$80,0289.00% 2010$1,368,000$150,48011.00%

5 Highlights

6 Quality System Quality system implementation Leadership and management review Resource management Design and development implementation Supplier management Service Provision planning and control Document and record control

7 Objectives and Goals Sales of $ 684,000 the first year, approaching $ 1,368,000 at the end of the three years. Achieve New York Certification to be listed in the Directory of Certified Minority and Women- Owned Become one of the contractors of inspection task of MTA projects Have an impeccable reputation in the engineering, inspection, training and materials testing industry in New York City.

8 Objectives and Goals Achieve 100% of market value at the end of the three years of operations. Increase gross margin to 70% by the third year of operations. Implement a quality management system under ISO 9000 (2 nd year). Increase its installed capacity to 50% at 3 rd year. Increase its labor positions to 50 % at 3 rd year Establish the level of the laboratorys performance at 2 nd year Ensure that all personnel are trained to a level of familiarity with the quality management system appropriate to the individuals degree of responsibility.

9 Mission CRMT Industrial Services, Inc. is a materials solutions company that provides superior value in testing, consulting, training, problem solving, and design & engineering services. CRMT incorporates state of the art technology and equipment to provide highly specialized testing procedures and training. It is dedicated to serving the construction sector.

10 Market Opportunity

11 Challenge: Manufacturing The NAM believes Americas future depends on a skilled, productive and technically trained workforce. Every citizen needs to know that the winners in the global marketplace will be companies with the best workers. Dream !t Do!t NAM Campaign John Engler, President, NAM If we dont address the skills issue, our economy will face a serious decline. Jerry Jasinowski, President, The Manufacturing Institute 81% of manufacturers polled by NAM/Deloitte report they cant find the skilled workers to keep their businesses competitive in a global 21st century economy. Phyllis Eisen, Vice President, The Manufacturing Institute NAM predicts that manufacturers will need as many as 10 million new skilled workers by 2020, in part to replace aging boomers who make up a large part of manufacturing jobs today. Wall Street Journal

12 Challenge: Welding Industry Manufacturing, Construction and Mining is a $3 trillion industry, 1/3 US GDP. Welding is a $34.1 billion industry. Labor represented more than 70% of welding-relate expenditures, $22.4 billion in 2000. There are more than 500,000 welders working in US. The average age of welders in todays workforce is 54. It is estimated that there will be a shortage of more than 200,000 welders by 2010. This year, 50,000 welders will leave the industry while only 25,000 students begin their welding education.

13 Financial Data GROSS OFFERING$750,000 LESS ESTIMATED OFFERING EXPENSES AND COMMISSIONS0 NET PROCEEDS$750,000 PLANNED USES CAPITAL EXPENDITURES Computer equipment$ 10,000 Purchased software y licenses$5,000 Furniture and Fixtures$ 20,000 Remodeling and Decorating$ 30,000 Welding and Testing Equipment$ 450,000 Total proceeds for capital expenditures$ 515,000 WORKING CAPITAL Salaries and wages$ 100,000 Expenses$ 50,000 Advertising$ 20,000 Reserve$ 65,000 Total proceeds for working capital and reserve$ 235,000 Total Uses$750,000

14 2. COMPANY 3314 Queen Boulevard, Long Island City, NY 11106- 1306.

15 Distribution of Areas


17 Company Ownership CRMT Industrial Services will be created as a limited-liability company. The company will be privately owned by Daniela Romasan, Liliana Melo, Craig Cusanelli, and Amin Taurani.

18 Startup Summary Its start-up expenses amount to $25,000, which allows for initial legal expenses, licenses, permits, stationary, specialty software, office equipment, and furniture. Initial investment of $750,000 will be placed in the company accounts to purchase new equipment Daniela Romasan, Liliana Melo, Craig Cusanelli, and Amin Taurani will contribute $25,000 each one towards the overall start-up costs.

19 3. ENVIRONMENTAL AND INDUSTRY ANALYSIS Welding industry and engineering consulting services is a large industry not only in New York City, but also in entire United States. Establishments231 dollar value of business done 3,799,582 annual payroll794,067 Employees16,128.

20 Welding Status Welding is viewed as dark & dirty The critical role of welding is not fully appreciated in all corporate and government offices. High schools phasing out welding programs and discouraging careers despite annual earnings potential of $30,000 - $60,000. 1/2 of US industries report difficulties locating qualified welders. The US infrastructure is aging. Shortage barrier resulting in fewer competitive welding techniques, less productivity and outsourcing to foreign markets. Natural disaster prone areas have immediate need for welders to quickly rebuild homes and cities. The typical salary for a Pipe Fitter in New York City is $55,027.

21 Welding Future Advancing manufacturing technology creates more uses for welding in the workplace and is expanding opportunities. Increased emphasis on certification, which ensures quality. Computer skills are required for welding professionals responsible for programming welding robots, lasers, and systems. New materials are creating a greater need for a highly educated and innovative welder workforce. Automation reinforces the need for skilled machine operators. US industries face foreign competition and require competitive welding techniques and skilled operators to stay viable. Skilled welders are needed to maintain the Countrys aging infrastructure

22 4. SERVICE DESCRIPTION Engineering ConsultingNDT Services - Laboratory Welding Equipment Rental Welding Training – Welding School

23 Services: CRMT SERVICE LINES Equipment Rental Welding Equipment Non Destructive Equipment Material Testing Laboratory Testing Qualification Engineering Consulting in Quality and Welding School of Welding Instructions and Classes - Seminaries

24 5. MARKETING RESEARCH AND EVALUATION CRMT will focus on traditional engineering consulting, material testing and rental welder equipment contracts.

25 Segmentation WELDING AREA IN NYC TYPE# Business Welding Contractors231 Welding Services174 Welding Repairs20 Welding Inspections and Consultants 21 Welding Equipment Rental 11 REVENUES# Bus. Less than $100,00013 $100,000 - $499,99917 $500,000 - $999,9996 $1,000,000 - $4,999,999 8 $5,000,000 and over2 TOTAL46 Census 2002 Classification of minority and women owned business

26 Business Analysis

27 Advertising The services will be advertising in various newspapers such as Daily News, New York Times and in the free newspapers. Also, in technical magazines issued by AWS, ANSN, AISI, and others

28 Advertising Welding School services will be advertised in Radio and TV at the end of the first year. Flyers and wed site. Public Relations by participation on national technical events of Welding.

29 Flyer Designed

30 Logos CORPORATIVE LOGOWELDING LOGO It will be used for formal communications It will be used for Welding Training (Manuals) and Advertising

31 6. OPERATIONS PLAN General Operating Hours: CRMT Industrial Services, Inc. intends to operate rental, consulting and testing services Monday thru Friday from 9 am to 5 pm. The Welding School will be operated Monday thru Friday from 7 am to 10 pm and Saturday from 9 am to 1 pm. CTMT will be operational year round.

32 Human Resources Mrs. Liliana Melo will work as Director Manager as well as School Welding Manager. Miss Daniela Romasan will work as Administrative Manager. Mr. Craig Cusanelli will work as Finance Manager. Mr.Amin Taurani will work as Sales Manager. Mr. Jonny Olarte will work as NDT Manager.

33 Selection and Recruitment In addition, Miss Daniela Romasan will select and recruit new personnel to work on these following job positions: (1) sales person, (1) Bookkeeping, (1) General Secretary, (1) Electrical Technician, (2) Inspectors, and (1) Laboratory Technician during November, 2007.

34 Work Environment CRMT Industrial Services, Inc. provides employee benefits, job and schedule flexibility, interesting work, and involvement of our employees in an empowered environment of continual improvement. CRMT Industrial Services, Inc. engenders total participation by involving employees in internal audit and improvement activities. The Administrative Manager has overall responsibility for identifying, implementing and maintaining effective employee benefit and workforce involvement programs.

35 7. MANAGEMENT TEAM Monthly Salary Expenses JOB POSITIONAMOUNTSALARYTOTAL Sales person1$ 4,000 Bookkeeping1$ 3,000 General Secretary1$ 2,600 Electrical Technician1$ 3,500 Inspector2$ 5,000$ 10,000 TOTAL SALARY EXPENSES $ 23,100

36 Organizational Chart General Manager Sales / Customer S Manager Marketing Rental Services NDT Laboratory Manager Welding School Manager Consulting Manager Finance Manager Administrative / HR Manager Internal Control Management Committee

37 8. TIMELINE JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY On time! Planning Org. Legal Financial Dec. / Rem Fixtures / Eq Installation Marketing Personnel Q/A Adjusting Open doors

38 9. CRITICAL RISK AND ASSUMPTIONS Liability for injury or death of employees or other people on CRMT premises. Liability for injuries or damage caused by services CRMT makes. Destruction or theft of property, equipment, machinery, vehicles or other assets. Loss of net income through lost sales or extraordinary expenses.

39 Risk. Out of cash before orders secured Competition price cutting Costs in excess of estimates Unmet schedule(s) Difficulties with credit Lots of orders and NO cash Unfavorable industry trends Sales projections not achieved Long lead times in procurement Unexpected development costs

40 Management of Risks – Assumptions (Finance Risks) Purchase adequate insurance to transfer financial responsibility for losses to CRMT insurer. Obtain enough insurance to cover all risks. Know the Insurance Policies: review the policies with the independent insurance agent and, if necessary, purchase additional coverage to ensure that the business is fully protected.

41 Management of Risks – Assumptions (Transfer Risks) Lease Business Property and Equipment: CRMT may be able to transfer Property and liability risks in whole or in part to the lessor. Transfer Risk to the Customer. Hire the Right Subcontractors. Decline Risky Business.

42 Management of Risks – Assumptions (Control Risks) Take a close look at how CRMT does business. Assess equipment, facilities, employees, processes, and services. Take advantage of the excellent loss control services provided by many insurers.

43 10. BENEFITS TO COMMUNITY Employee Benefits Provide our employees with opportunities to use their professional skills Provide CRMT employees with opportunities to use their professional skills outside their day- to-day environment. Link pro bono work to the Continuing Professional Development program. Manage the administration of the pro bono program to employees.

44 Employee Benefits Strengthen employees leadership and motivation. Make employees participate in the growth of the company. Build new careers and opportunities for CRMT employees and suppliers. Fortify supplier chain by special program of training in quality assurance.

45 Community Benefits Provide internships to students attending surrounding schools. Using environment friendly services. Offering job placement Involvement in matters that affect community businesses. Develop the understanding of key social issues in your local community by scholarships.

46 Community Benefits Build new business contacts locally and regionally. Work collaboratively with other firms that need a range of professional skills and expertise to strengthen the technology and knowledge applied in welding industry. Be another alternative of technical education in New York City. Develop new opportunities in young people by training and special programs. Create economic opportunity to the community as well as New York City.

47 10. Financial Plan FINANCIAL OBJETIVES 200820092010 Sales684,000889,2001,368,000 Operating Expenses 478,800622,440957,600 Income before Tax 205,200266,760410,400 Taxes (30%)69,76890,698139,536 Net Income after Taxes 135,432176,062270,864

48 Objective Needs A loan of $750,000 at Prime plus 2%. This loan to be used for current near term expenses including inventory, rent and payroll. It will be repaid in five years. A line of credit of $50,000 to take advantage of discounts available, avoid associated penalties, and expand into high profit areas requiring positive cash flow.

49 Financial Statements BALANCE SHEET CASH FLOW

50 Thanks for your attention

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