Barnum Painters is committed to providing high-quality interior and external residential and commercial painting service. Barnum Painters is a company that believes there are two major problems facing companies in this sector. These include poor scheduling of jobs projects and poor retention. Both these issues lead to customer dissatisfaction, low repeat business, and low word-of mouth referral rates. Barnum Painters believes by implementing this contractor plan, it can capitalize on and exploit these strengths to gain local market shares.
The goals of Barnum Painters for the next 3 years are:
- To reach sales revenues of approximately $620,000 in the third year.
- To reach a customer mix that is 30% commercial and 10% residential per year.
- Expand operations to include the entire Greater Seattle area, including Kirkland and Renton as well as the Kitsap Peninsula.
The company will provide painting services in the quickest possible manner, with a continuous quality-control program to ensure customer satisfaction. Principal officers of the company see every contract as an agreement between two partners, not between customers and businesses. They want to build a long-lasting relationship that is mutually beneficial. This will lead to greater long-term profitability through repeat and referral business.
Barnum Painters will follow the following key processes to achieve its objectives:
- Have at least one expediter assigned for each project.
- A project manager should be assigned to each project, who will handle quality control issues.
- Initiate a profit sharing program among all employees.
Barnum Painters is an LLC that offers limited liability for start-ups. It is composed of three officers who have combined experience in the industry of over 40 years. Barnum Painters can be described as a partnership between Mr. William Barnum and Mr. Anthony Barnum. The principals will be investing substantial amounts of their own capital in the company. In addition, they will be looking for a loan of $7,000 to help with start-up costs and future growth. The company has also obtained a $10,000 line (not shown in financial statements) to help cover unexpected expenses and opportunities.
Barnum Painters’ office will be in a rented room in the Rucker International Park at 710 Snoquamie Route. The space will include offices for the principals and a storage area for inventory. It also includes a lounge for employees. Barnum Painters specializes in interior and exterior commercial and residential painting. Additionally, the firm offers services such drywall plastering as well as acoustic ceilings, pressure washing and other related services. It is designed to offer clients a wide variety of services that will decrease the need for them to employ multiple contractors. Barnum Painters will employ a low cost leadership strategy, while maintaining a good level of quality.
Initially, the company will concentrate on residential customers and commercial clients in the Everett (Washington) area. However, by the end of the three-year projections, the company expects to be serving the entire Puget Sound area. The company thoroughly examined its financial projections. It found them to be both conservative in profits but generous in spending. This was done deliberately to provide for unforeseeable events. According to the company’s principals, cash flow projections seem realistic.
Keys to Success
Barnum Painters’ principal officers are experienced in the contracting industry for many years. Barnum Painters sees two problems in the painting industry that are common to most companies.
The scheduling of jobs can be the first problem. Many painting contractors find it difficult to maintain established schedules with their customers that lead to a decrease in customer satisfaction and retention. This can be caused by poor management, less reliable employees, delays in inventory distribution, and poor inventory procurement. A second issue is keeping motivated and reliable workers. Many painting companies rely on temporary or transient employees that lead to high turnover rates and decreased service quality.
Barnum Painters will follow the following key procedures
- A position of inventory coordinator is created. Every project has at least one assigned expediter.
Barnum Painters’ mission it to provide superior interior and exterior commercial and residential painting services. The company will work to provide these services as quickly and efficiently as possible. It will also maintain a strict quality control program in order to ensure 100% customer satisfaction. Principal officers of the company see every contract as an agreement between two partners, not between customers and businesses. They are meant to be a long-term partnership that is mutually beneficial. This will allow for greater long-term profit through repeat business and referrals.
Barnum Paintersâ€™ goals over the next three year are:
- Achieve sales revenues of approximately $450,000 by year three.
- Reach a customer mix between 30% and 60% residential building contracts every year.
- Expand operations to all areas of Greater Seattle, including Kirkland & Renton as well the Kitsap Peninsula.