Bunch & Sons Construction

Company Profile

Final Project

BUILDING LEADER BUILDING LEADER

EXPERTISE TESTED EXPERTISE TESTED

EXPERIENCE PROVENEXPERIENCE PROVEN

Corporate Profile

BUNCH & SONSBUNCH & SONSCONSTRUCTIONCONSTRUCTION

Table of Contents

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Section 1: Executive Summary (Business Description)..................................................................4

Section 2: Code of Conduct.............................................................................................................6

Section 3: Marketing Plan (Strategy and SWOT)...........................................................................7

Section 4: Operations.....................................................................................................................10

Section 5: Finance..........................................................................................................................13

Section 6: Cash Flow Analysis......................................................................................................15

Section 7: Information Management.............................................................................................16

Section 8: Management Summary.................................................................................................17

References......................................................................................................................................18

Appendix........................................................................................................................................19

(After you copy and paste each section, return to the Table of Contents, right click on the table and select Update Fields. Once this is done, delete all instructions in the template and delete them).

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Section 1: Executive Summary (Business Description)

BUNCH & SONS CONSTRUCTION offers construction services for both residential and commercial needs.

The residential aspect includes everything you need from cutting the first tree on the lot. We build from the

footings to the peak. We provide the service needed for our customers to turn the key and enter their new

home. Our commercial application provides the commercial customer with demolition and restoration services

preparing for new openings or new tenants. Recently added has been a phase of green heat technology to help

us all become less dependent on foreign fuel.

RESIDENTIAL - NEW HOMES & RENAVATIONS

When you are looking to build a custom homes builder or remodeling to protect your investment we are

there.

Experts- We serves a broad scope of customers needs from contracting, building, and consulting.

Bunch & Sons will serve your need to insure that your dream home is delivered within your budget. You are

not forgotten in the process keep our customer on board working with us to ensure satisfaction. We can start

with clearing the wooded lot and cover all phases of construction until the home is completed.

Bunch & Sons may have your home waiting already. If you are looking for a finished home browse our

website and choose from one of our many beautiful custom homes already available.

COMMERCIAL – RENAVATION & MANTANANCE

Your commercial building needs a lift the care and quick delivery to reopen is now available.

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Your Commercial needs for demolition, remodeling, and restore the interior of the existing structure

we are experts in our field. We make your building more appealing to new entrepreneur looking to make their

dreams of self-sustainment a reality.

GREEN WOOD GASIFICATION BOILERS

Using the innovation of wood gasification, Bunch and Sons is helping the environment and our economy

with the installation of a wood gasification boiler from Pro Fab. Let us reduce the need for foreign oil, cut your

heating bill in half, and give you peace of mind installing with superior craftsmanship.

OUR MISSION:

Our company is founded on Christian principles; we seek to please God by doing all things to honor

Him. Our mission is to offer the highest quality of construction services. Through exemplary craftsmanship we

meet your building needs which will fully satisfy your expectations treating you in a way that honors God.

OUR VISION:

We will begin to build a new home every four months providing company growth to become the

industry leader in the Mid-Hudson Valley region.

In five years we will expand becoming a publicly owned company growing into Bunch Corporation.

With increased capital and work force Bunch Corporation will be called upon to engineer, construct, maintain,

and manage project sights reaching beyond residential construction. The expansion will target large

Government residential and commercial projects within New York City as well as other cities in the New

England Area.

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Section 2: Code of Conduct

WE’RE BUNCH & SONS CONSTRUCTION

Our Code of Conduct is based on Biblical principals Our Code of Conduct is based on Biblical principals

 Colossians 3:17

17 And whatever you do in word or deed, do all in the name of the Lord Jesus, giving thanks to God the Father

through Him. New King James Version (NKJV)

Code of Conduct

The ethics behind our code of conduct policy is founded on Christian biblical principle. Do all things to

the best of your ability before God. Jesus, Himself laid out an exemplary example as a carpenter prior to His

Ministry we seek to exemplify our work in a Christ-like manner displaying critical thinking and joyful service

to our customers. Our conduct in public should be consistent with the basic philosophy of Christian living

which is to love God above all things and to love our neighbor as ourselves. We are all created in God’s

image. He expects us to show respect for all people regardless of race or gender and all those who work for our

company are expected to conduct themselves responsibly contributing to the welfare of the greater good for the

company. Jesus gave a commandment in Romans 13:1-7 which lays out instructions to avoid practices that the

Bible does not condone and to love one another.

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All employees must agree to the following:

1. Worked diligently doing all to the best of your ability. (Colossians 3: 17)

2. Show respect, love, and attentiveness toward our customers. ( Timothy 13: 34-35)

3. Physical aggression, verbal aggression, sexual harassment, racial harassment is forbidden. (Romans 12)

4. Stealing is forbidden. (Ephesians 4:28)

5. Swearing is forbidden. ( Ephesians 4:29)

6. Disrespect to customers or supervisors will not be tolerated. ( 1 Corinthians 8)

7. Attendance will be required when scheduled to work; notification of inability to work will be made in

any event of absences one hour prior to scheduled start of shift. (Galatians 5)

The purpose for these Christian-based conduct policies are simply too guide all those who are representing

our company (whether Christian or not) in a way that allows them to work unhindered. We all are expected

to present ourselves on our jobsites in a manner that is acceptable to what our customers expect from a

Christian owned and operated company.

“Work as hard as you can; save as much as you can; give as much as you can

– all for the glory of God.” John Wesley (1772):

Section 3: Marketing Plan (Strategy and SWOT)

Bunch & Sons Constructions will deploy two marketing strategies set forth to cover two different types

of target markets. The first one will be targeting customers who are looking for construction service; the

second is for our customers who are looking for green heat technology.

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The service market customers need to be made aware of the services we provide. These are

renovations and remodeling to residential and commercial pre-existing structures. A lot of this will rely on

word-of-mouth referrals which will be encouraged with cash incentives. We will need to create awareness.

Awareness for new customers will be targeted through advertising locally. Actively placing signs with our

logo outside of construction sites we are actively working on will ensure that potential customers in the area

will become formula with us. We must be diligent to put forth the effort in having an active flyer campaign.

The product market customers that we provide will be targeted in two separate categories. The first

category is new home sales. Once the purchase of the lot to build the new home on is closed upon customer

awareness of the upcoming home to be built and sold will be advertised. This advertising will be done with

on-site signs having the company logo informing the passerby public of the upcoming home that will be

available. Increased awareness upon the completion of the home will be made through newspapers

advertising an open house viewing with a reach out to surrounding neighbors giving them cash incentives

for assisting in the sale of the house. Finally, if the home sits on the open market for four full months it will

be placed on the real estate market with a realtor.

The second category is gasification wood boiler sales and installations. This product for sale will be

marketed by creating awareness with advertising both in newspapers and events such as fairs and shows.

We will advertise with signs including our logo outside of any resident that installs our alternative green

heating systems. The key to selling the gasification wood boilers is overcoming the work of loading a wood

stove daily by shifting the emphasis on emotions of the customer making them aware of the ability for them

to remove themselves from oil dependency. To overcome buying objectives we will be placing the

gasification wood boilers in the president and vice president’s home emphasizing the endorsement of both

along with warranties that will attract new customers, and showing the large savings.

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SWOT ANALYSIS

I. Strengths

1. Technological skills are shouldered primarily by the owner having good motivational skills with

his staff as well as 25 years experience building.

2. Networking our company has a great network of experienced craftsman in all aspects of building

which are also close friends that can be called upon to assist as projects arise.

3. Product distribution is a leading point for our company since we have developed a relationship

with two large distributors which carry only technologically advanced and products that are

superior in quality.

II. Weaknesses

1. We are a small company that requires the president to continually be on-site in order to manage

activities to ensure the high level of craftsmanship expected.

2. Our current employment is low and we lack skilled managers.

3. Breaking into new gasification boilers present a major opportunity, but also require more

training.

III. Opportunities

1. Our company is technologically advanced since we have kept on the edge of the development of

building technology, with investing in the latest tools as they develop.

2. Customers in our current area of the Hudson Valley are looking for smaller homes that are

custom-built, giving us the advantage of providing them with a service that is not currently being

exploited.

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3. We are seeing an increase in population in the area which will require an increase in homes, so

as long as that continues home sales should rise.

IV. Threats

1. The biggest threat to construction companies are their employees. As employee skill level rises

and they learn the business it is very hard to maintain employment with them and not have them

go off on their own.

2. Changes in government policies increasing operating cost which could threaten both home

construction as well as the sale of gasification boilers.

3. Our area of operation being New York is one of the highest tax areas and the increases that

seemed to continue may become intolerant for people to move into the area. Without continual

population growth the need for more housing is strangled.

Section 4: Operations

Customer analysis:

We are building the starter homes targeting the younger recently married couples. These homes will be less

expensive to build but yet offer better chance for future labor intensive development. Within the industry more

money can be made through renovations than new construction. Offering a young couple a small home with

satisfactory craftsmanship will ensure future work when the young couple has children and the need to expand

arises. The secondary customer analysis is for the customer who is looking for the alternative heating with

alternative resources from our current area. Finally, the third customer that we are looking for are those who

have contacted other construction companies and are dissatisfied with the professionalism that they are

expecting.

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Operations plan:

Once contacted by a customer and an agreement has been reached by contract building will begin with

payment. Once operations has commenced for a project the project must not be abandoned until completion.

What puts the customer’s mind at ease is having equipment that can secure tools and other supplies. The

construction company has determined the safest way to insure security is by the purchase of construction

trailers and on-site trailers.

Economics, Government, and Laws:

The type of business that I have selected to establish is fairly safe from overseas manufacturers or offshore

manufacturing, and outsourcing keeping my company relatively safe. The construction company services are

really for stick building and on-site building which means that materials are ordered, those materials are

delivered, and manufacturing is constructed at its finished location.

One way that governmental laws could affect the expansion of my company would be interference with the

heating aspect of the company. Currently the EPA has set industry standards an outlawed the older exterior

wood boilers from being purchased and installed. The town in which I built and also passed similar ordinances.

Currently the only wood boilers allowed our three gasification wood boiler systems available which bunch and

Sons has become a distributor for one. They’re currently yellow tagged for compliance with all federal, state,

and local laws; however that could change the future it is a concern. Regulations and law changes could affect

sections of the business causing reevaluation of certain arms of industry that we expanded into.

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Utilization of technology

Bunch & Sons Construction will utilize technology to structure our business more effective and efficient. In

order to stay in the cutting-edge of technology it requires that management stay on top of new advancements

and developments as they become available. In order to ensure that our company will advance with technology

we will be putting in place a failsafe. We will require suppliers to keep upper management abreast of any

technological advances that may occur as soon as they themselves are aware of it. The quickest way to ensure

that developments in technology are utilized to benefit the company management needs to stay in contact with

the area’s building department. It is a relationship with the building department that will keep our company

educated on the changes in technology advancements making our structures safer, stronger, and last longer. On

example of this is fire rock. Once fire retardant sheet rock was invented the billing departments immediately

require that this type of product be utilized in all garages. This is simply because most fires are started in a

garage in that fire retardant sheet rock will give the fire department and ask for the 30 minutes of time to

respond to the scene to extinguish structure. We in turn put fire rock on all the ceilings of our homes making

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them safer and more affordable to insure. We can see how these advances would be needed in order to keep

our company more appealing to customers as well as protected from violation of building code laws.

Bunch & Sons will need an aggressive new product education system in place. This will start with building

shows. This burden will be shared by all the employees. The need or proper customer interaction depends on a

knowledgeable work force. The main focus is keeping in contact with the construction product manufacturers

requesting notification of any new product obtaining the detailed information and passing down the information

down from management to the labor that will see the customer.

Section 5: Finance

Bunch & Sons Construction startup financial plan

Bunch & Sons construction will focus primarily on the construction field of renovation, new home

construction, and alternative green heat wood boilers. These three areas of service will provide our business

with the minimal amount of capital investment and maximum amount of income. This minimal amount of

capital investment is realized by targeting the construction field where the capital investment in equipment and

tools are utilized for all three areas of construction interests.

There many ways for a company to raise investment capital when starting a business. Bunch & Sons

funding for the initial asset purchases will be $31,804 along with $5,500 in tools needed. The total investment

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capital needed will be $37,304 for the new-home buildings and the remodeling services. In addition will be

the Pro Fab Gasification Wood Boilers which require a $21,000 startup investment for the purchase of

inventory.

Fund raising may include many options:

1. Personal savings, retirement, raising funds by selling personal assets.

2. Family and friends for financial support

3. Professional investors

a. venture capitalists- investors looking for high returns and seek some company control

b. Angel investors- investors looking for high returns without company control however will

offer guidance is needed.

4. Bank Loans

The funding is available in the founder Timothy Bunch’s savings. Bunch and Sons Construction will be

personally financed at start up. Prior to any services rendered to customers a deposit of 50% will be required

prior to work being started. This removes the need for large sums of cash on hand for the purchase of raw

materials. When it comes to the sales of the boilers the total price must be paid prior to shipping the boiler

and installation a eliminating the need for carrying large amounts of inventory and removing collection

issues and doubtful account problems.

Breakeven analysis

The formula: Sales (S) equals Fixed Expenses (FE) plus Variable Expenses (VE)

S= ?

Fixed Expenses= $14,688

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Variable Expenses= $224,925 or (49.6% of S)

S= $14,688 + .496S

-.496S + S = 14,688

.504 S = 14,688

S= $29,143

We see that Bunch & Sons Construction will begin to breakeven in its’ first year of operation upon providing

sales revenue reaching $29,143.

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Section 6: Cash Flow Analysis

One of Bunch and Sons Construction’s primary purposes is to establish a home-based company that

would be able to sustain a salary base for both its owners and workers. In order to meet that goal cash flow is

the driving force which keeps us focused. The cash flow statement records the activity of cash flowing in and

out of our company. They can be utilized by both internal and external users. It is broken down into three basic

operating activities which are recorded. They are operating activities, investing, and financing. The operating

activities record the incoming and outgoing of cash on a day-to-day basis of operation. This is based on

receiving cash for products sold and services rendered. Operating activities will include current asset and

liability changes – short-term investments. Investment activities are limited to items that are paid for in cash so

that the company was purchased manufacturing equipment portion that was paid for in cash would be reported

not to the entire cost of the equipment what is still owed would be recorded in financing activities.

The purpose of the cash flow statement is to provide information of the company’s financial health at a specific

point in time when the statement was prepared. It provides investors a glimpse of how stable the company is

financially. Here it functions sons construction I think that a full analysis should be performed monthly so we

can better forecast budgeting concerns and prevent borrowing.

Note: see Cash Flow Projections

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Section 7: Information Management

In source Technology systems

Bunch & Sons construction will utilize quick book Pro to track our finances, manage business records,

maintain customer files, and forecast sales and expenses keeping an eye on future cash flow. These records will

be controls internally without broad access to any Internet or other means which may become compromised.

The hardware that will be utilized will be a personal computer in our main office. We will also have a laptop

on construction sites and with our estimate team. We will take advantage of photo altering technology which

will allow us to take pictures of a customer’s work site and then use a building program called professional

home design. The home design program will allow us to implant changes to the actual photo allowing the

customer to get a view of what their home or project could look like when completed. This will assist the

customer in decide on finishing touches.

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Disaster recovery plan in the event that our storage should fail there need to be a plan in place to

recover lost data. In order to maintain records, data, and company information we will outsource with a third-

party data recovery service. Our company will also maintain a backup of all information that will be stored on

location in the main office. With the nature of customers providing bank account information as well as credit

card information when paying their bill, careful control of customer information will be key to avoid

mishandling or accidental release of any customer’s information. We recognize that any mishandling of

customer’s records could be devastating to our company’s reputation. We will do everything in our power to

maintain privacy.

Section 8: Management Summary

Bunch & Sons Construction is the residential builder and commercial renovating

construction company. We strive to exceed our customer’s expectations. Through a

generous personal capital investment by the president and founder Timothy Bunch the

company will begin providing services.

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Bunch & Sons will be a home-based business with Timothy Bunch as president and Aimee Bunch as vice

president. The business will be based out of the president’s home. The president will be responsible for

scheduling, estimates, training, inventory, and seeing that accounts payable are paid on time. The vice

president will be responsible for payroll and assisting in customer care by taking phone calls and organizing

estimate times.

Personnel plan:

The management team will start a small with limited funding at its founding having a president, vice

president, and a consultant. From the initial start of the business what will provide success are the skills that

exists between the executive staff until a level of maturity can take place where others can be hired.

Future plans for expansion of the management team and staff are planned once a sustainable cash flow is

realized. This expansion will include adding to the management team members an estimator, and project

manager. Additional laborers will be hired as needed.

Objectives:

Bunch and Sons Construction for the first three years of operations include:

1. To establish a construction company who is respected throughout the community for building quality

homes, high-quality renovations for residential and commercial, and providing others with an alternative

to the high cost of heating fuel throughout the mid-Hudson Valley region.

2. To sustain a growth rate in which would enable a reliable cash flow to be able to establish a salary for

both management and labor is in order to live off of our salaries.

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3. To be known as the most reliable construction company in the area and to maintain 80% callback

from repeat customers.

References1. John Wesley (1772) from:

http://wesley.nnu.edu/john-wesley/the-letters-of-john-wesley/wesleys-letters-1772b/

2. New King James Version (NKJV) from: http://www.biblegateway.com/

3. http://www.thinkingmanagers.com/management/business-structure.php

4. http://vectorstudy.com/

5. http://sbinformation.about.com/cs/businessplans/a/mission.htm

6. http://www.heavensinspirations.com/work-unto-the-lord.html

7. http://marketing.about.com/od/strategytutorials/Marketing_Strategy_Tutorials_and_Samples.htm

8. http://www.startupbizhub.com/starting-a-fundraising-business.htm

Appendix

Please insert supporting spreadsheets and data in this section.

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