1. Executive Summary
Joe's Quality Painting will be a
start-up sole proprietorship in Baton Rouge, Louisiana. The business will
become well known in the Baton Rouge area within two years and throughout the
region in five. Joe's Quality Painting's distinctive logo, its reputation for
quality service, offering the highest quality products, and its slogan,
"Joe's Quality Painting-don't settle for less!" will provide a
distinctive competitive edge.
The business will offer professional
quality painting, stucco repair, textured coatings, and waterproofing for
residential and commercial buildings. They will specialize in residential
painting; however, they will acquire many commercial and new construction
contracts. Joe will offer complete inspections and free estimates to all new
customers.
With increasing population and housing
starts in Baton Rouge, there is a need for quality painters with competitive
prices. Joe's Quality Painting will enter the market and capture customers
quickly. They will start their business with a barrage of advertisements that
will lead to prosperous customers.
1.1 Business Opportunity
Baton Rouge, located in southern
Louisiana, is a thriving community. The population has increased by 9% over the
last 7 years, and it is estimated the trend will continue (Source: http://www.census.gov).
Housing starts are also growing at a rapid rate. Joe's Quality Painting has the
opportunity to capture a share of the market in new home and commercial
painting. Also, Baton Rouge is located in an area of the country that has very
brutal weather conditions. The salt air and torrential rains increase the need
for repainting home and business exteriors. Joe's Quality Painting will acquire
many commercial and residential contracts and will work year round.
1.2 Joe's Quality Painting Description
Joe's Quality Painting will offer high
quality interior and exterior painting for residential and commercial
properties. The business will provide professional quality painting, stucco
repair, textured coatings, and waterproofing. Due to the continuous growth in
population and construction in the Baton Rouge area, Joe's Quality Painting
will be highly successful and enjoy continuous growth. It will grow from an
operation of a single crew of three employees, to multiple crews within five
years.
Joe's Quality Painting's predicted
success and growth is based upon extensive market research demonstrating the
explosive growth trend in construction in Baton Rouge. This trend, along with
the limited competition in the area, offers a promising future for Joe's
Quality Painting.
1.3 Financial Potential
Based on projected residential and
commercial painting jobs, it is estimated that Joe's Quality Painting will have
gross sales of $233,352 in its first year of operation. Gross revenue in years
two and three is projected to be $243,770 and $250,931, respectively. These
translate into net income of $60,000 in year one, $68,000 in year two, and
$75,000 in year three.
