business plan - mgmt

8/13/2019 Business Plan - MGMT

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PEEPING TOMS -- BUSINESS PLAN


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BUSINESS PLA

PREPARED BY: Brian RayBrian CusickMatt RowanCJ Lewis


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TABLE OF CONTENTS Section I. EXECUTIVE SUMMARY

Section II. MISSION, GOALS, AND OBJECTIVES Description of Business Mission Statement Goals And Objectives

Section III. BUSINESS/INDUSTRY PROFILE Current Size/Growth Potential Industry Trends/Opportunities

Section IV. ORGANIZATIONAL MATTERS Risk Management Outside Services/Advisors Personnel Management Business Structure

Section V. THE MARKETING PLAN A.Products/Services

1. Products/Services Description2. Life Cycles/Seasonality3. Product/Services Growth Description

B.Market Analysis1. Customer Analysis2. Competitive Analysis

a. Current Trade Areab. Market Size & Trendsc. Market Potential

C. Marketing Strategies1. Location/Distribution2. Price/Quality Relationship3. Promotional Strategies

a. Packagingb. Public Relationsc. Advertising

Section VI. THE FINANCIAL PLAN Financial Assumptions Additional Financial Statements:

Appendix


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I. EXECUTIVE SUMMARY Peeping Toms provides a simple solution to give you more privacy and make your home asafer place.

PeepHoles have been around a long time, but there are still a lot of people who do not haveone installed. In our research we found that 78% of the individuals we surveyed do nothave a peephole in their door. Almost all of these people said that they would like one; mosay that they just have not gotten around to installing one. And of those who do have apeephole, every single one said that they use their peephole frequently.

People want to know who is behind their door before they open it. Here are just twocomments we received from survey participants:

It is nice to see who is at the door before opening it. We have windows but usually it is veryhard to see who is there, especially if they are standing close to the door.

-Survey Participant

I hate opening the door for salesman!-Survey Participant

PeepHoles are not a new product; our goal is simply to be the most convenient peepholeinstallation service available.

We bring our product directly to consumers through door-to-door sales and local marketin We can install our product on the spot and to the clients specifications. Our installers arewell trained and professional and we guarantee all of the work we provide.

In this business plan you will see how we plan to reach our clients and meet their needs inways that our competitors do not.


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II. MISSION, GOALS, AND OBJECTIVESDescription of the Business

Our business is a primarily a door to door sales model. We will be selling peepholeto individuals in residential arias (primarily Utah County then expanding when sales justthe growth) and installing them at the point of sale. Initially we will be selling a basicselection of peepholes that get drilled into the door and allow the homeowner to see who ison the other side. We also want to make our company name (Peeping Toms) a commonname/brand that people will know and recognize. Our target market will be homeownersand home/apartment renters of all ages, anyone that wants a custom installed peephole.Our product will be installed at the exact height and spot of the customers choosing.Peeping Toms is at the beginning stage, but we intend to recruit and hire college students

to sale and install our product during the summer months. We will continue to expand untwe are located all over the United States.

Mission Statement

Our mission is to build a valued, trusted, and hard working company that people wilknow they can trust and refer to friends. We will treat all people with dignity and respect,while working as hard as we can to build a company and brand. Our purpose is to helpfamilies feel a little safer in their homes. We will be the most convenient option for anyonelooking for a peephole.

Goals & Objectives

1. Get the business up and started2. Hire at least 15 individuals to our sales team3. Sell enough product to turn a profit the first summer4. Add a minimum of 3 offices each year after the first5. Brand our company name (Peeping Toms)


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III. BUSINESS/INDUSTRY PROFILECurrent Size/Growth Potential

- County population in 2012: 540,504 (97% urban, 3% rural); it was 368,536 in 2000- County owner-occupied with a mortgage or a loan houses and condos in 2010: 76,601- County owner-occupied free and clear houses and condos in 2010: 19,452- County owner-occupied houses and condos in 2000: 66,800- Renter-occupied apartments: 44,549 (it was 33,137 in 2000)- % of renters here: 33% - State: 30%

Source:http://www.city-data.com/county/Utah_County-UT.html#ixzz2muHbnY5O

The data above makes evident that the number of residents in Utah County continues togrow at a rapid pace. 10,000 new apartment complexes where built between 2000 and2010, that is 1000 a year on average. Such rapid growth suggests continued opportunityfor growth in industries related to the housing market, including peepholes and homeautomation, which itself is a multi-billion dollar industry. Peepholes are our ticket into theindustry of home automation and a cost effected method of creating brand recognitionprevious to healthy investments into automation technology.

Industry Trends/Opportunities

While much of the industry is trending towards home automation, there is still a huge markfor the traditional and cost effective peephole. Many people think the inventor of a peephowas William Didds lll but it was really George Winningham and he invented the peephole 1932. Since then it has been installed into millions of doors, both for residents andbusinesses.

The majority of families living in homes (especially condos and townhomes) that do notalready have peepholes cannot afford expensive home automation systems and are not inthe market for them. Although it is important to mention that augmenting these modern

digital automation systems into the Peeping Toms marketing plan is going to be essentiafor substantial growth later on, it is not cost effective to start with initially.

It will be Vital for the Peeping Toms brand to grow and become known as the leadingpeephole installers in the industry. Currently a large franchised company focusing on suchpractice as installing peepholes does not exist. The majority of installers are independentcontractors going door to door on their own accord and for the sake of their own


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companies. The Peeping Toms uniformity among reps will give customers a since of truand comfort in buying and create very positive sense of name recognition. The reputationcreated by the effectiveness of the employment screening process will be essential inensuring that the Peeping Toms brand and name recognition is positive with the public.The housing market has been recovering from the crash in 2008, housing has been up 15-20% in Utah County and developers have begun again the condo and townhomeconstruction projects throughout Pleasant Grove, American Fork, and other Utah Countycities. Opportunities are endless in the industry of privacy and security for home andbusiness residents. Both on the small scale, starting initially with peepholes, and also on alarge scale, moving into home automation later on. The profit margin per peephole issignificant enough ($25-$50 etch.) That to gain traction in this industry is both reasonableand realistic.


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IV. ORGANIZATIONAL MATTERSBusiness Structure

Our business will be registered as a limited liability corporation. There are 4 owners; MattRowan, Brian Ray, Brian Cusick, and CJ Lewis, all with equal share in the company profitand liabilities. Any person additional employee will be a 10-99 employee paid as acontractor based on commissions. Our goal is to keep our structure as simple as possible.This will be true until sales justify hiring in house employees legal or accounting servicefor example.

Management

Our team is uniquely qualified to enter this market because each founder has a set ofrelevant and complementary skills that will help us to move this business forward.

Brian Ray is an expert in direct sales and has a lot of experience selling productsdoor-to-door. We will lean on this knowledge as we build out our sales team.

Brian Cusick will provide his tools and skills to help our team learn to install ourpeephole products. His knowledge of financial planning and money management walso be invaluable for this organization.

Matt Rowan is an expert in website optimization and online marketing. He will helpus reach our local markets through online marketing and social media.

CJ Lewis is a designer and web marketer. His skills will help us produce qualitycontent that will allow us to brand our company and reach our target market. He wilsupport Matt in online marketing efforts.

Resumes can be found in the appendix of this document.

Personnel

We will need a team of energetic and enthusiastic sales people to help us sell and install ouproduct in a door-to-door fashion. In order to reach these people (our potential teammembers) we will sponsor events and parties that attract our target employees. Our no-ceiling commission structure should prove very compelling (and lucrative). We will use


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college campuses and college events to reach our potential team members. We will alsooffer bonuses and incentives to current team members for helping us to find good talentedpeople to join the team.

Outside Services/Advisors

Although our team is well equipped to handle most aspects of business management andday to day processes, there will likely (and hopefully) come a time when we need to reachout to outside service providers for help. We expect that we will hire a CPA and potentiallyan attorney or legal council to help us manage finances and more complex agreements anddocumentation. If demand for these services is great (within our organization) we may brinon full time accounting or legal team members, but our plan is to hire third parties for mossituations.

Risk Management

There is a possibility that our installers will make a mistake and damage a door during theinstallation process. We intend to have an agreement in place with each costumer thatguarantees our work up to a certain value (i.e. $1000). We will make sure that we haveenough cash on hand to cover any situations that may occur. This will require us to keep adetailed log of every issues that arise so that we can foresee and plan for potentialproblems in the future.


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V. THE MARKETING PLAN A. Products/Services

1. Products/Services Description We will offer only one primary service - the custom installation of a peephole. We will alslimit our selection of peepholes to just a few (10 or less) basic styles. We will sell thepeephole along with the installation.

Purchasing a peephole from Home Depot or another hardware store will cost an individualaround $5 to $15. They will have to install the hardware themselves.

We are not going to attempt to compete on a price comparison test. Our goal is to be themost convenient option. We come to you and provide the service on the spot. Our trainedinstallers are quick and professional and our work is guaranteed. Our installers can even bescheduled (using our website or Facebook page). So Peeping Toms can provide services atthe clients convenience.

We want to reach individuals who do not have the skills, tools, or time to install their ownpeephole. We also want to be more convenient even for those who do have the skills, tollsand time. Our trained and practiced installers and our reasonable pricing will accomplishthese goals.

Our product/service will sell for $40 to $75 per installation (including parts and labor).Variation in pricing will very depending on complexity of the project (type of door, type ofpeephole etc).

2. Features/Benefits

Our products will be basic (initially) just a few peephole styles and colors. What makes usunique is our ability to provide the product on the spot or on demand. Our door-to-door installers can provide the service on point of sale. Or, a time can be scheduled for youinstallation using our Facebook page or website.

3. Life Cycles/Seasonality

We do have a seasonal product. Most of our sales will be made in the summer months whethe weather is good. Our sales people will be contacting customers directly through door-


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to-door sales so cold weather will not be optimal. We account for this seasonality bytargeting college age students who are looking for summer time work. We also account forthis by paying individuals as 10-99 employees who have the understanding that their workis seasonal. This will allow us to be heavily staffed in the summer months but lean in thewinter.

4. Product/Services Growth Description

We plan to keep our product basic for as long as possible. However we would like to reachinto more advanced peephole solutions eventually. Once our model is proven and sales arepredictable we would like to introduce more advanced electronic audio and video recordinpeepholes. These products would require more skilled installers but they will also be ahigher ticket item and could potentially bring higher revenue.

B. Market Analysis1. Customer Analysis

Our funnel will target homeowners, home renters, apartment owners, and apartment renterwho do not currently have a peephole installed. More specifically, we are targeting thedecision makers of each household. Our marketing will focus primarily on the Utah countyaria initially but we will quickly branch out to other arias based on our sales team andcapabilities.

Residential arias will be our primary focus; however, we will also be targeting a more specgroup of individuals who own multiple apartments or apartment complexes, as wellas organizations responsible for many apartments or homes. The plan is to start small bytargeting individual residents and then move to these larger opportunities after our processis refined and the business model is more proven. Approaching owners of many apartmentor homes will allow us to capture more business quickly, and without the need for costly,antime consuming door-to-door sales.

Secondary Markets

For residential customers our secondary market will target homeowners who currently dohave a peephole. For these individuals we will be offering to provide additional peepholesfor interior and exterior doors. For example; we will offer peepholes for backdoors orgarage doors that provide added security and indoor peepholes for parents to check onyoung children.


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Additional Details About Our Target Market

From the surveys and interviews that we performed we found that many people who desirepeepholes want them for security reasons. They want the ability to see who is at the doorwithout having to open the door and reveal themselves (or their home) to the visitor. It isclear that our target market values security. We also had a number of comments thatsuggest that our target market also values privacy. Several individuals mentioned that theyhave windows, or other ways to view who is at their door, but they would prefer not to beseen by the visitor until they first see who is at their door.

2. Competitive Analysis

We conducted a survey to find out if we have any direct competitors. None of our survey

respondents have every been approached by someone selling peephole installation. Thismarket appears to be relatively un-tapped.

Our competition is the handyman or do it yourself type who would prefer to purchase aninstall their own peephole. Our goal is to be competitive in our pricing and so convenient ato make this option impractical even for the average handyman.

Because there is nothing to prohibit new entrants into our space we know that marketingand brand awareness will be key. We want people to recognize the name Peeping Toms andto trust us. We believe that beating our competitors will primarily be accomplished bygetting their first.

3. Market Potential

A. Current Trade Area - we will focus first on Utah CountB. Market Size & Trends - based on our research we estimate that around 70% ofresidents will be in need of at least one peephole. (see Industry information above andsurvey results in appendix for more details)C. Market Potential - we estimate that each sales rep will install 1 to 2 peepholes per hour

In a single summer (90 days) this is 720 hours X $50/per sale average X 1.5(average per hour sale) = 54,000. If the company takes $10/per sale this is 10,800 peremployee. The seller will keep the rest of the profits less the cost of products.

Our goal is to have 15 installers our first summer and grow from there.


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C. Marketing Strategies

1. Location/Distribution

We will focus first on Utah County and expend to surrounding areas. This will be idealbecause of our familiarity with the aria and also because we will have access to UVU, BYUand several other universities for new employees.

2. Price/Quality Relationship

Our installation price will be higher than the cost of buying and installing a peephole on yoown. However, our price comes with the piece of mind that comes from knowing that yourproject is being completed by a trained professional. It also comes with a guarantee thatany damages will be covered by Peeping Toms. If an individual installs their own peepholeand makes a mistake the project could become very costly for them. We also offerconvenience - we are there and ready to install on the spot.

3. Promotional Strategies

a. Packaging - We will leave our card with phone number, website and name ofinstaller to give the customer access to us in the future. If our services are appreciated thecustomer can also share these card details with friends and family and further advertise ourservices.

b. Public Relations - We want to be heavily involved on college campuses andsponsor events to get our name out - both to the public and also to potential employees.c. Advertising - We will advertise our services in several ways. Our primary and ini

means for getting sales will be door-to-door sales. However we believe that we can makethis job much easier for our reps by providing advertising first.

Here are some of the things we will do to market our business:

1. We will build a website which we will optimize and market for local search terms. Whenusers in Utah County (or any aria that we are servicing) searches the web for Peephole ohow to install a peephole or something similar, we will optimize our website to show upthese searches.

2. We will use Google Adwords to target searchers within our target demographics.


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3. We will create a Facebook page to show potential customers where we are (whichneighborhoods we are knocking) and offer promotional deals to users who see our FB pageand accept our services. We will also use Facebook to hold contests and grow our audience

4. Printed Materials - we will print business cards for each of our installers to hand out. Wewill also create flyers that can be used to canvas a neighborhood prior to our door-to-door visits.


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VI. THE FINANCIAL PLAN Financial Assumptions

The Cost of each unit is very low, only $5 per unit. Since the fulfillment of such product almust be coupled with the service of installation, the profitability aspect of theproduct/service grows substantially. Fulfilling such a sale for $50 avg. per unit/install is nounrealistic and would actually be quite a competitive rate. A conservative projection is givin the projected income statements but expecting a high percentage of products/installs tobe sold at above average prices is likely, resulting from proper branding and recognition oftrust.1. Projected Income Statement: (refer to appendix)2. Projected Balance Sheet: (refer to appendix)3. Projected Cash Flow Statement: (refer to appendix)

Additional Financial Statements

Although costs are low, some capitalization needs still exists. In order to market and brandthe Peeping Toms correctly it will be vital to ensure that the representatives, who interacwith consumers are screened and their appearance consistent. Customers must feelcomfortable to let reps install peepholes in their homes. In order to create such trust in ourconsumer background checks will be given and uniforms purchased with individualnametags included. Total start up capitol product/peepholes and other cost, such as thosementioned above is 25K. This will provide necessary funding to buy a bulk amount ofpeepholes, uniforms for representative, pay for background checks and licensing of reps,while at the same time leave the business with enough working capitol to get through thecritical start up phase.


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AppendixFinancial Documents, Managing Partner Resumes & Survey Data Follows


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Q. Do You Have A Peephole?

We found that the majority of our surveyed people do not have a peephole on their door.

This suggests that there is a demand for our product/service. Especially when considering

the responses to our other questions.

Q. (If Yes) Do you use it? How Often?

Without exception everyone who had a peephole said that they used their peephole. Many

of them made comments suggesting that they use their peephole frequently.

Example Responses:yes, whenever someone comes to the door.

Every time someone comes to the door.

Q. If you do have a peephole - what benefits, if any, do you think a peephole

provides?

Of the people surveyed it seemed like most of the individuals who had peepholes used themfrequently. This suggests that the product we are offering is worth having, and supports the

value of our services.

Example Responses:


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love not having to open the door

Protection and discretion

I know who is at the door before i answer it.

Safety

Q. If you do not have a peephole - Do you think you would use one?

Example Responses:

It is nice to see who is at the door before opening it. We have windows but usually it is very

hard to see who is there, especially if they are standing close to the door

Yes absolutely

yes we wish that we had one

Q. How much would you be willing to spend to have a new peephole drilled (if

you already have a peephole please provide how much the service would be

worth to you assuming that you did not)

Average Amount From Responses = $32.56

This was good news for us because it leaves lots of room for us to price the product and

still make a profit.

Q. Has anyone ever come to your door and asked to put in a peephole?

100% of respondents saidO


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This was good news for us because it means that our target market is not saturated with

any similar offerings.

Q. Would you trust someone coming door-to-door doing them?

Most of the respondents to our survey said that they would trust someone who came door-

to-door selling the installation service as long as that individual had the right tools and

credentials and seemed to be knowledgeable.

Example Responses:

Most Likely

I think I would

YES


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Survey Results Follow:


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