426 13st South Lehtbridge, AB T1K 7S5 (403) 381-Ruff

My Request

$15,000 business start-up loan

$5,000 equity (from Jensen family)

Why am I here today?

Who is Robert Jensen?• Family man• Master roofer • Entrepreneur

Is the reason clear now?

Team JensenTeam Jensen

Robby Jensen Sr. (Owner)

Merley Jensen (Wife)

Bobby Jensen Jr. (Owners son)

Lester Jensen (Shingle)

Sharen Quim (Sister)

Layne Quim (Brother in-law)

Day in the life of Robby Jensen

• Starts the prior day Organization of the next day’s job

- Based on new or re-roof

• The roofers best friend

• Arrive punctually at 8 AM

• On the roofRemove old shinglesAssess quality of roof surface

• Preparation of the new roof

Eave ProtectionShinglesUnderlayEdge TreatmentValley TreatmentFlashingVentilation

Critical for roof performance, this 3 foot wide layer of waterproof material is placed under the shingles.

The most visible portion, shingles act as the primary defense against wind, rain, and the elements.

Provides extra protection around all edges of the roof to protect against wind-driven rain.

Typically made of vinyl or metal, the edge treatment allows for more efficient water shedding.

Protects against snow and ice build-up damage, which is more prevalent in valleys on roofs.

Protects against seepage in the most high-risk areas, such as the base of chimneys or vents.

Allows for greater air circulation and prevents seepage, cracking, and peeling of shingles.

As the day turns…

• Laying of the new shingle

• Clean up! Clean up! Clean up!

• Service and ensure prior clients are happy

• Prospecting for new work every minute of the day

The real reason I am here

To provide quality, reliability and honesty every time!

Goals and Objectives

Broad Goals:

• Quality, Workmanship, Price, Reputation

Short-Term Objectives:

• 100 roofs in year 1, up to 160 by year 5

• Profitable by year 2

• Remain financially sound

Business Environment

• Strong economy

• Favorable lending rates

• High rate of housing starts

Organizational Structure

• Self Employed Roofing Contractor

• Private Contracts Mostly Re-Roofing

Robert JensenOwner/Roofer

Roofing Labourer Roofing Labourer(p/t and/or temporary if needed)

Organizational Structure

• Roofing Sub-Contractor

• General Contractor New Roof Contracts

General Contractor

Robert JensenOwner/Roofer

Roofing LabourerRoofing Labourer

(p/t and/or temporary if needed)

Site Plan

• Home Residence

Area B – Business Office SpaceArea A -

Overnight Truck Parking

CAPITAL BUDGETTools:

Compressor $500

Power Hammer 400

Ladder 400

Roofing Hatchets 150

Hoist 500

Saw 200

Miscellaneous 400

Tarps 250

Computer Equipment 3,000

Office Equipment 1,000

Total Capital Costs

$6,800

OPERATING EXPENSES Banking Fees 300

Bookkeeping Services 800

Cell Phone 2,140

Vehicle Insurance 900

Insurance 1,800

Business License 247

WCB Premiums 1,205

EI Payments 353

CPP Payments 2,500

Holiday Pay 516

Capital Cost Allowance 1,253

Fax Machine 360

Vehicle Lease Costs 3,900

Vehicle Operating Costs 4,200

Marketing Expenses 12,658

Interest on Long term Debt 826

Total Expenses 34,385

WORKING CAPITAL MANAGEMENT

Jan 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2006

Cash 10,000 10,000 10,000 10,000 10,000

Accounts Receivable - 12,165 - - 17,379

Inventory 500 500 500 500 500

Accounts Payable - 12,240 - - 16,057

Total 10,500 11,426 10,500 10,500 11,822

Supply Analysis

• Main Supplier Home Depot– convenient location in Lethbridge– one-stop supply house – all inputs available at

one location– guaranteed low prices – commercial credit services– ease of ordering – job-site delivery of supplies

Marketing Plan

• Shingles

• Service Warranty

• Competitive Pricing

• Promotion and Advertising

Shingles

•15, 20, 25 and 30 years

• Manufacturer coverage

• Patented adhesive “instabond”

Service

Jensen Roofing has set out a strict set of guidelines to ensure roofing work is completed with the utmost care and precision.

Jensen Roofing clients can expect:

• Free, no obligation estimates

• Evaluation of roof deck and recommend repairs

• Calculate proper ventilation for attics

• Offer a wide variety of shingles

• Perform work to exceed industry requirements

Pricing

• Price sensitive market

• Competitive

• Quality not compromised

Company Price Estimate Warranty Code Timeliness Follow up

Jensen Roofing $1984.00 Free 10/25 years** Yes 1.5 days Yes ***

Charles Hill $2149.00 Free 25 years Yes 1.5 days No

Advantage Roofing $2362.00 Free 25 years Yes 2 days No

Certified Roofing $1950.00 $75.00 * 25 years Yes 3 days No

Contractor Bidding:

• year 1: Cost + 1%

• year 2: Cost + 3%

• year 3 and on: Cost + 5%

Residential Bidding:

• year 1: Cost + 5%

• year 2 and on: Cost + 10%

* Amount is deductible against the project cost

** 10 years relates to the warranty on workmanship

*** Performed 3-6 months following the completion

Promotion and Advertising

• Yellow pages

• Spirit of Lethbridge (Trade show)

• Home Builders Association

• Door to Door

• Magnets

• Newspaper

• Company Logo

• Internet www.Jensenroofing.com

Place

Re-roof Projects

New Projects

North

Competitors

• Similar businesses in the market

• Large competitor

• Growth

• Differentiation

• Cross selling

Key Personnel

Robert Jensen• Extensive on-the-job experience

• Proven record of quality workmanship

• Completion of entrepreneurship course

Additional Staff

Labourers• 1 full-time, year round

• 1 full-time, summer student

• HRSDC wage subsidy

• Training on-site

Personnel Costs

Salary/Wages:• Robert Jensen – $34,000 up to $60,000 annual salary• Full-time Labourer - $12/hour• Summer Student - $10/hour

2006 2007 2008 2009 2010

$46,996 $75,066 $85,075 $86,776 $88,511

Personnel Costs

Salary/Wages:• Robert Jensen – $34,000 up to $60,000 annual salary• Full-time Labourer - $12/hour• Summer Student - $10/hour

2006 2007 2008 2009 2010

$46,996 $75,066 $85,075 $86,776 $88,511

Personnel Costs

Employer Remittances:• Holiday Pay – 4% • CPP and EI – 7.68% combined • WCB Premiums – 9.33%

Total Personnel Costs:

2006 2007 2008 2009 2010

$4,574 $6,994 $7,678 $7,794 $7,913

2006 2007 2008 2009 2010

$51,568 $82,059 $92,752 $94,571 $96,423

Financial Analysis•Capacity

•Utilization

•Sales

•Cost of Goods Sold

•Other Costs

•Financial Statements

•Financing Requirements

Capacity

-25°C 8°C 15°C 22°C

X X X

Utilization

• Takes time to build relationships

• Referrals build with time

• Team efficiency increases

Sales Projections

Available Days 161 161 161 161 161

2006 2007 2008 2009 2010

Market Size 1,715 1,715 1,715 1,715 1,715

# Jobs 104 145 161 161 161

Utilization 65% 90% 100% 100% 100%

Market Penetration

6.1% 8.5% 9.4% 9.4% 9.4%

Annual New Home Construction

800

Annual Re-Roof Requirements

915

TOTAL MARKET SIZE 1,715

Cost of Goods SoldNEW ROOF JOBS Unit Price Quantity Price/ House

Materials

Shingles 0.47 1,500 ft2 708.75

Waterproofing 1.23 300 369.23

Sheathing 0.04 1,500 ft2 60.00

Venting 35.00 4.33 151.67

Supplies 128.96

Labour

Experienced 0.30 1,500 ft2 450.00

Labourer 0.09 1,500 ft2 138.46

Student 0.06 1,500 ft2 96.92

Delivery Costs - Shingles 1.00 47 bundles 47.00

Total Per New Roof Job $2,150.99

Cost of Goods SoldRE-ROOF JOBS Unit Price Quantity Price/ House

Materials

Shingles 0.47 1,300 ft2 614.25

Waterproofing 1.23 260 320.00

Sheathing 0.04 1,300 ft2 52.00

Venting 35.00 4.33 151.67

Supplies 220.58

Labour

Experienced 0.30 1,300 ft2 390.00

Labourer 0.09 1,300 ft2 120.00

Student 0.06 1,300 ft2 84.00

Delivery Costs - Shingles 1.00 41 bundles 40.63

Disposal Costs 125 1 bin 125.00

Total Per Re-Roof Job 2,083.13

Other Costs

• Banking fees

• Cell phone

• Business insurance

• Loan interest payments

• Bookkeeping services

• Vehicle insurance

• Vehicle lease costs

• Vehicle operating costs

Financial Statements

Returns to Mr. Jensen

2006 2007 2008 2009 2010

Labour / Salary

34,084 50,637 57,388 58,536 59,707

Reinvestment 34,084 - - - -

Net Flows - 50,637 57,388 58,536 59,707

Mitigating Risks

• Competitive pricing and quotes

• Quality of workmanship

• Networking ability

• Risk of personal injury

Market Risks

• Poor weather conditions

• New house construction

In Closing…

• Requesting $15,000 business start-up loan• Requesting your support in helping my family achieve its dream

• Strong business plan

• Business with great potential