business plan crmt industrial services, inc new engineering solutions to the industry
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Business Plan
CRMT Industrial Services, Inc
“New Engineering Solutions to the Industry”
CRMT Industrial Services, Inc“New Engineering Solutions to the Industry”
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.
Sales Projections
YEAR SALES ($) PROFITS ($) SALES / PROFITS (%)
2008 $684,000 $54,720 8.00%
2009 $889,200 $80,028 9.00%
2010 $1,368,000 $150,480 11.00%
Highlights
$0.00
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
2008 2009 2010
Sales Expenses Net Profit
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
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.
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 (2nd year). Increase its installed capacity to 50% at
3rd year. Increase its labor positions to 50 % at 3rd
year Establish the level of the laboratory’s
performance at 2nd year Ensure that all personnel are trained to a
level of familiarity with the quality management system appropriate to the individual’s degree of responsibility.
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.
Market Opportunity
Challenge: Manufacturing“The NAM believes America’s future depends on a skilled, productive and
technically trained workforce. Every citizen needs to know that the winners inthe global marketplace will be companies with the best workers.”
Dream !t Do!t NAM CampaignJohn Engler, President, NAM
“If we don’t 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 can’t find the skilledworkers 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 skilledworkers by 2020, in part to replace aging boomers who make up a large part of
manufacturing jobs today.”Wall Street Journal
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 today’s 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.
Financial DataGROSS OFFERING $750,000
LESS ESTIMATED OFFERING EXPENSES AND COMMISSIONS 0
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
2. COMPANY
3314 Queen Boulevard, Long Island City, NY 11106-1306.
Distribution of Areas
Distribution of Areas
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.
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.
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.
Establishments 231
dollar value of business done
3,799,582
annual payroll 794,067
Employees 16,128.
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.
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 Country’s aging
infrastructure
4. SERVICE DESCRIPTION
Engineering Consulting NDT Services - Laboratory
Welding Equipment RentalWelding Training – Welding
School
Services:
CRMT SERVICE LINES
Equipment Rental Material Testing Laboratory
Engineering Consulting in Quality and Welding
Welding Equipment
Non Destructive Equipment
School of Welding
Instructions and Classes - SeminariesTesting
Qualification
5. MARKETING RESEARCH AND EVALUATION
CRMT will focus on traditional engineering consulting, material testing and rental welder equipment contracts.
Segmentation
WELDING AREA IN NYC
TYPE # Business
Welding Contractors 231
Welding Services 174
Welding Repairs 20
Welding Inspections and Consultants
21
Welding Equipment Rental
11
REVENUES # Bus.
Less than $100,000 13
$100,000 - $499,999 17
$500,000 - $999,999 6
$1,000,000 - $4,999,999
8
$5,000,000 and over 2
TOTAL 46
Census 2002 Classification of minority and women owned business
Business Analysis
10%
53%
2% 7%
19%
7%2%
Business Services Engineering ServicesEquipment Rental and Leasing Management Consulting ServicesManagement Services Surveying ServicesTesting Laboratories
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
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.
Flyer Designed
CRMT INDUSTRIAL SERVICES, Inc.
CRMT provides specialized engineering consulting, testing services, and operative welding training applied in heavy industrial, shipbuilding, steel building erection, pipe welding and fabrication
Go to CRMT website at www.crmtindustrial.com for more information or call us at 1-800 WELDING.
“N ew Engineer ing Solutions to the I ndustr y”
Logos
CORPORATIVE LOGO WELDING LOGO
It will be used for formal communications
It will be used for Welding Training (Manuals) and
Advertising
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.
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.
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.
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.
7. MANAGEMENT TEAM
Monthly Salary Expenses
JOB POSITION AMOUNT SALARY TOTAL
Sales person 1 $ 4,000 $ 4,000
Bookkeeping 1 $ 3,000 $ 3,000
General Secretary 1 $ 2,600 $ 2,600
Electrical Technician 1 $ 3,500 $ 3,500
Inspector 2 $ 5,000 $ 10,000
TOTAL SALARY EXPENSES $ 23,100
Organizational Chart
General ManagerGeneral Manager
Sales / Customer S Manager
Sales / Customer S Manager
NDT Laboratory Manager
NDT Laboratory Manager
Welding School Manager
Welding School Manager
Internal ControlInternal ControlManagement Committee
Management Committee
Consulting Manager
Consulting Manager
Finance ManagerFinance ManagerAdministrative /
HR ManagerAdministrative /
HR Manager
MarketingMarketing
Rental ServicesRental Services
8. TIMELINE
JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY
On time!
Planning
Org. Legal
Financial
Dec. / Rem
Fixtures / Eq
Installation
Marketing
Personnel
Q/A
Adjusting
Open doors
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.
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
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.
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.
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.
10. BENEFITS TO COMMUNITYEmployee 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.
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.
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.
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.
10. Financial Plan
FINANCIAL OBJETIVES
2008 2009 2010
Sales 684,000 889,200 1,368,000
Operating Expenses
478,800 622,440 957,600
Income before Tax
205,200 266,760 410,400
Taxes (30%) 69,768 90,698 139,536
Net Income after Taxes
135,432 176,062 270,864
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.
Financial Statements
BALANCE SHEET
CASH FLOW
Thanks for your attention
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