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New Venture Business Plan based on the presentation slides come up with a new venture business plan

Company and Industry:

Mission

Vision

Value Statements

Corporate objectives

Business concept Operational, Staffing and Implementation plans:

Operational requirements

Management structure

Human Resources Plan

Employee Policies

Job Descriptions

Office Manager

General Contractor

General Labourer

Risk management and legal requirements:

Client Terms & Conditions

Forward Thinking
Home Designs and Renovations
Designing the future, you can live in today
Small Business Operations
ENTR2010 Section 2
Professor Larry Drew
April 12, 2018
Group # 2 Full Business Plan
Student 1
Student 2
Student 3
Student 4
Student 5
20
Table of Contents
Introduction …………………………………………………………………………………………………………………… 5
Executive Summary……………………………………………………………………………………………………….. 5
Fact Sheet……………………………………………………………………………………………………………………. 6
Company and Industry ……………………………………………………………………………………………………. 7
Mission……………………………………………………………………………………………………………………….. 7
Vision …………………………………………………………………………………………………………………………. 7
Value Statements………………………………………………………………………………………………………….. 7
Corporate objectives……………………………………………………………………………………………………… 7
Business concept…………………………………………………………………………………………………………… 8
Industry Background ……………………………………………………………………………………………………… 9
Top trends …………………………………………………………………………………………………………………… 9
Environmental Scan …………………………………………………………………………………………………….. 10
Market Analysis & Marketing Plan ………………………………………………………………………………… 11
Market and Customer Profile ………………………………………………………………………………………… 11
Customer Outline: ………………………………………………………………………………………………………………………………………….11
Commonly Asked Questions from Clients: ……………………………………………………………………….. 14
OUR PROD UCT LINE INCLUDES: …………………………………………………………………………………………………………………..14
Competitive Analysis……………………………………………………………………………………………………. 16
SWOT Matrix ……………………………………………………………………………………………………………. 19
Estimate market size ……………………………………………………………………………………………………. 20
Final Marketing Plan …………………………………………………………………………………………………….. 23
Product-Market Strategy………………………………………………………………………………………………. 23
Promotional Mix …………………………………………………………………………………………………………………………………………….23
Promotional Objectives, Messages, Media……………………………………………………………………….. 23
Month by Month Advertising Schedule……………………………………………………………………………. 25
Pricing: ……………………………………………………………………………………………………………………… 26
Profitability objective…………………………………………………………………………………………………… 26
Place…………………………………………………………………………………………………………………………. 26
Operational, Staffing and Implementation plans …………………………………………………………….. 29
Operational requirements…………………………………………………………………………………………….. 29
2
Management structure ………………………………………………………………………………………………… 31
Human Resources Plan…………………………………………………………………………………………………. 31
Employee Policies ……………………………………………………………………………………………………….. 31
Job Descriptions………………………………………………………………………………………………………….. 32
Office Manager ……………………………………………………………………………………………………………………………………………..32
General Contractor ………………………………………………………………………………………………………………………………………32
General Labourer …………………………………………………………………………………………………………………………………………33
Risk management and legal requirements ……………………………………………………………………… 34
Client Terms & Conditions…………………………………………………………………………………………….. 35
References: ………………………………………………………………………………………………………………….. 36
Appendices:………………………………………………………………………………………………………………….. 39
Location surveys ………………………………………………………………………………………………………. 39
Creative promotional Flyer ……………………………………………………………………………………….. 43
Implementation Plan………………………………………………………………………………………………… 43
Floor plan ………………………………………………………………………………………………………………… 43
Financial Plan…………………………………………………………………………………………………………… 43
Financing structure ………………………………………………………………………………………………….. 43
Cash Required for Start-up………………………………………………………………………………………… 43
Pro Forma Income Statement ……………………………………………………………………………………. 43
Pro Forma Cash Flow Forecasts …………………………………………………………………………………. 43
Assumptions…………………………………………………………………………………………………………….. 43
Financial Ratio Analysis ……………………………………………………………………………………………. 43
Research Articles ……………………………………………………………………………………………………… 43
3
Letter of Transmittal
Conestoga College
Small Business Operations
Forward Thinking Home Designs and Renovations
Business Graduates
299 Doon Valley
Kitchener, ON N2G 4M4
April 16, 2018
Professor of Business
299 Doon Valley
Kitchener, ON N2G 4M4
Dear Larry Drew
On behalf of Forward Thinking Home Designs and Renovations, we are here to propose to you an
opportunity to share with you the business concepts that as a team we have developed and
implemented in order to come up with this genuinely unique idea.
We ask to take this time to present you our established project and to turn the heads of those who are
looking to create a better future around the KW region.
Best Regards,
Student 1
Student 2
Student 3
Student 4
Student 5
4
Introduction
Executive Summary
Forward Thinking Home Designs and Renovations incorporated is a high-quality accessibility renovation
services company focusing on the aging in place needs of the greater Cambridge Ontario area. Our goal
is to help our clients think ahead about their changing accessibility needs and show them how to
renovate to accommodate while still keeping a stylish look in their home. We will have a clear guide
and design for our clients that will provide an equal level of functionality and safety while maintaining
their independence and dignity. As accessibility is a need for disabled as well, we will provide a personal
approach and assess each individual needs to create the best design solution for their needs and
budgets. There are over 140,000 people over the age of 50 in the region and this number is only going
to grow. There are approximately 120 renovation companies in the greater Waterloo region and only 2
of them have a focus on aging in place renovations. will have a staff of 3 including an office manager,
General contractor and a general labourer to start. This will allow us to cover over $480,000 in our first
year with a 5.9% revenue increase per year. Our 5-year goal is to have a full crew of 2 full time
contractors at least one apprentice per year and have our trusted renovation brand known throughout
the tri-city area and beyond. We are ready to start renovating and this Business plan will show that
there is a strong need for us now with an excellent potential for growth.
SALES REVENUES
3 YEAR SALES PROJECTIONS
$100,000
$80,000
$60,000
$40,000
$20,000
$0
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
MONTHLY SALES FOR EACH YEAR
YEAR 1
YEAR 3
YEAR 2
Gross Profit and Net Profit Margins
Year 3
Year 2
Year 1
0%
10%
20%
40%
50%
60%
Net Profit Margin
Year 1
3%
Year 2
6%
Year 3
7%
Gross Profit margin
62%
63%
62%
Net Profit Margin
5
30%
Gross Profit margin
70%
Fact Sheet
6
•
The Waterloo region Ontario renovates program has contributed over $2.1 million since 2012
offering forgivable loans of up to $15,000 for accessibility home modifications and up to $25,000
for building an in-law suite. (Region of waterloo, 2017) We will educate our clients about the
financial incentives available to them and how to apply.
•
According to March of Dimes, the most common home modifications for seniors aging in place
as well as those with disability requirements are: walk-in bath/showers, access ramp/groundlevel access, widened doorways/hallways, lift device/elevator, automatic/easy-to-open
doors/cabinets, and lower kitchen/bathroom counters. (FitzGerald, p. 39, 2014)
•
The main disadvantage that seniors worry about is that the modification will be poorly designed
e.g. equipment problems, poor installation and our high-Quality guarantee will overcome this
fear. We will offer a 5-year craftsman warranty on any installation we do. (Fitzgerald, p. 40,
2014)
•
According to Ted Tsiakopoulos, CHMC’s regional economist for Ontario. “Ontarians are aging,
the housing stock is aging, home prices are on the rise and more homebuyers are turning to the
resale market — all these factors support renovation spending.” (Greene, N.D.,
WhichMortgage.ca)
Company and Industry
Mission
Forward thinking provides high quality accessibility and aging in place home designs and renovations.
Our renovations will help keep people with special needs in their homes longer. Our storefront will
provide a meeting place where our customers can view and purchase some of our products including
grab bars, toilets, faucets, etc. Our personable and comfortable atmosphere will be a place we can
discuss and educate our customers about our renovation service options. Our services will include full
bathroom/kitchen renovations as well as wider doorways/hallways, heated floors, and much more. Our
principal competitive advantage is that we are the only one-stop-shop offering the latest in trends for
accessibility and renovation products and services in the Cambridge and tri-city area.
Vision
Forward thinking will provide high quality accessibility and aging in place home designs and renovations
to take care the growing need in this underserviced market. We will become the aging in place experts
the community can trust.
Value Statements
•
•
•
•
•
•
Personable: Friendly approach bringing value and enhance the quality of life in our clients’
homes
Professional: Experienced high-quality craftspeople ensuring our clients safety including keeping
a clean and healthy work environment
Plan: Organized, thorough and compassionate while forward thinking to help our clients design
the future they can live in today
Integrity: We will always operate under an honest, transparent, trustworthy model
Responsibility: We will stay up to date and knowledgeable on changes to government incentives
and industry trends to be a reliable and trusted source for our clients
Employees: we will offer an apprenticeship program in 3-5 years where we can provide specific
training for our high-quality services
Corporate objectives
•
•
•
•
•
•
7
To Generate $486,000 in sales during year one
Increase sales by 6% by year 2
To achieve a minimum of $15,000 in after tax profits during year one
By year 3 be able to purchase a second vehicle for a second general contractor
To establish a network of suppliers by year 3 to reduce COGS by 2% per year
Be able to hire an apprentice by year 5
Business concept
The Business concept our group would like to present is for a new Home Renovations company. Our
demographic specialization focus will be with baby boomers and seniors so we can provide high quality
modifications to their homes to help them age in place. Our renovation services will specialize in making
home alterations to accommodate accessibility restraints and upgrade living spaces for easier access
and additional home comfort. The specific industry code from the Government of Canada NAICS is
238350 finish carpentry, which shows a healthy profit margin in the general home renovation scope
(Financial performance data report, 2015). The industry is currently consumed with typical kitchen and
bathroom renovations with strategies such as lowest cost, longest in service and largest network of
subcontractors.
With seniors increasingly wanting to stay in their homes as long as they can and the rapid growth of
baby boomers reaching retirement age there is currently not enough Aging in place home renovation
specialists to cover all the market needs. Based on our research there are only a few home renovation
companies in Waterloo region that have a niche focus on aging in place home renovations leaving lots of
opportunity for a fresh perspective in the growing market place. We will offer home design services as
certified aging in place specialists and we will be able to offer accommodating, welcoming and
accessible designs and renovations projects. Our renovation specialists will not only have their CAPS
designation but will also have a solid understanding and experience of the home renovation process.
We will have a showroom to display our product lines and give customers a place to meet and discuss
design needs and requirements. Our showroom will allow for a partnership with local suppliers and will
allow us to hold an inventory of day to day and top sold items.
We will have plenty of opportunity to be able to show our customers that the renovations don’t have to
be obvious in order to be effective, sensible and safe. We can provide walk in tiled showers with glass
doors, easier to open cupboards and door handles and widen doorways to name a few, and guests won’t
even realize it is an aging in place renovation.
8
Industry Background
As our Canadian population ages, home renovations will need to take retrofit considerations in mind for
safe, accessible and comforting homes to accommodate those will mobility and special needs. (IBIS report,
p. 14, 2017) Although business may slow down slightly in the winter months, we will mitigate these losses
by planning more indoor jobs and focus on more retail sales during these times with in store promotions.
While investigating the need for senior home modifications we discovered that people in Cambridge
aged 55+ are predicted to increase to 29.5% of the total Cambridge population coverage by 2021 (social
planning council of Cambridge, p. 3, 2017). With that said, the Canada Mortgage and Housing
Corporation predicts that 80% of homeowners over 50 years old want to stay in their existing homes as
long as possible (CMHC, 2016).
An added bonus is the home renovation funding offered by Waterloo region which is av ailable to those
who need it for repairs, accessibility and secondary in law suites (Region of waterloo Ontario Renovates ,
2017). Additionally, in 2014 seniors spent $8 billion of the $63.4 billion total spent on renovations in
Canada (Financial Post, 2014).
Top trends
The World Health organization officially designated Waterloo region as one of the top 3 age friendly
cities in Ontario so, there is plenty of opportunity to grow our business with the aging needs of the
community (social planning council of Cambridge, p. 4, 2017). The City of Cambridge also has an age
friendly action plan that is encouraging promotion of aging in place home renovations. We offer a
slightly innovative approach by focusing our renovations on accessibility and special nee ds. While
joining this trend are committed to creating partnerships within the community that will be beneficial
for our company as well as the seniors in our area (social planning council of Cambridge, p. 9, 2017).
9
Environmental Scan
Demographic
•Target Geographic area: Cambridge – Kitchener – Waterloo region (468,128 ppl.)
•Focus mainly on the 141,255 people over the age of 50 in the tri-city area
•ajority of the residents speaks English and have lived in Cambridge most of their lives
•Most hold a college or university diploma.
•We will be focusing our demographic marketing strategy to the senior population aged
50 years and older, which includes 141,255 people at 43% of the total tri-city
population.
Socio-Cultural
•For entertainment they attend many different social group events or churches and
watch the news or game shows on TV and listen to talk/news radio or read the local
newspaper
•Baby boomer population is aging
•They pride themselves on improvement to their region and their homes and for the
most part like to take part in community activities and initiatives. Their longevity in the
community makes them emotionally attached and holds high value to the sentiments of
home and community improvement
•Our typical customer will be hesitant about the renovation to begin with as most won’t
think they need it, so we will need to reach out to them
Economic
•Accessibility renovations are not always covered by insurance so baby boomers want to
make sure they are investing in something they are going to enjoy
•Baby boomers are planning ahead for their retirement income and expendatures and
want to make sure they can continue to live comofrtable
•We understand some seniors cannot afford these renovations so financial assistance will
be needed
Technological
•Baby boomers are increasingly becoming comfortable with technology and relying on
devices and social media
•Advancements in tech have made home design more efficient and affordable
Competitive
•Over 120 general renovation companies in the tri-city area with only 2 currently specializing
in aging in place renovations
•Low barriers to entry and low capital investment
Regulatory
•Government incentives involve tedious processes and approvals to work through
•Health and safety precautions
•Local building codes and laws
•Environmental regulations
10
Market Analysis & Marketing Plan
Market and Customer Profile
Customer Outline:
Our customers will see the quality craftsmanship with a very clean work environment making
minimal disruption to their home. They want to feel like they are priority. We will be able to
demonstrate knowledgeable, straightforward and trustworthy service with a kind and personal
approach. We will make sure to become certified aging in place specialists as soon as possible
to have complete training with a recognizable designation we can promote for additional
credibility.
Market Segment Analysis:
Market
segment #1:
Market
segment #2:
Market
Segment #3:
Baby boomers planning
the post retirement
phase
in-law suites for senior
parents moving back
home with their families
Accessibility renovations
to accommodate for
disabilities/special
needs related to health
or personal injury
Average clients over 50
years old
Average age of clients
would be 40 – 54 years
old
Clients can be anywhere
from 16 – 64 years old
MARKET SEGMENT #1: Baby Boomers
Many seniors have been saving for retirement for years and are very cautious about how they
spend their money. Over 80% of seniors over the age of 55 would prefer to stay in their home as long
as possible instead of moving to a retirement home (Greene, N.D). They are very concerned about
health issues and are looking for any resource that can help them maintain their independence,
dignity and freedom and increase their quality of life. They have lived through a lot and would like a
personal approach and to have their thoughts and concerns heard and respected. They do not like
to accept help from their children for the most part as they really don’t like feeling like they are a
burden. So, their children are working on helping them find ways to maintain their independence
including staying in their homes longer so they don’t have to move them to a retirement home.
When it comes to renovations they care most about improving mobility and personal care
accessibility inside their home. They do have concerns about poor quality and poor knowledge of
11
quality improvements so it will be important do be prepared and provide proof of craftsmanship
through examples and reviews. Word of mouth referrals are very important to our demographic.
Becoming an active member in the senior community and building trusting relationships and a solid
reputation are the only ways we can make a strong impact in our market entry strategy. We will offer
high quality and care with a personal approach to making sure our clients get what they want and
their needs are being met and exceeded. Offering economic friendly renovations as well affordable
luxury finishes.
The benefit we will have over our competitors is that our designs are universal and will be
astatically pleasing and not too look like a hospital. We can provide renovation solutions that both
accommodate accessibility needs that are so beautiful guests may not even realize it is an “aging in
place” renovation. Most other contractor’s think simple like grab bars, walk-in bathtubs, ramps…etc.
are the only renovations that seniors want and have vastly overlooked targeting this market.
MARKET SEGMENT #2: In-law Suites
Still working with seniors but we will be working more closely with their adult children as they
create in-law suites to help their parents age in place inside their home. The region of waterloo
Ontario Renovates program is providing incentives specifically for people that would like to build an inlaw suite to have their elder parents live with them so they can age at home and avoid moving to a
retirement home. This demographic will be between 35 – 54 years old and will typically have young
children between 5 – 17 at home still. Typically, double parent homes where both parents work full
time jobs, extracurricular activities and generally live a busy and rushed life. They care deeply about
family and want to make sure their parents are well taken care of. This group typically doesn’t have a
good opinion of retirement homes and will do what it takes to make their parents happy in their own
home. They are typically busy and on the go as well as being very connected to social media and word
of mouth referrals and communications.
Since the launch of the Ontario renovates program in Waterloo program there has been
funding provided to 178 families for a total contribution of $2.1 million (Region of Waterloo, 2017).
The home ownership program can offer an interest-free loan for up to 10 percent of the purchase
price of the home, repayable over 20 years. $1,100,000 in building permits were generated which
equates to a total of 5370 permits in 2016 (region of waterloo planning, 2017). We can look at the
number of permits spend on single family apartments which accounted for 2612 permits accounti ng
for 48% of total building permits in 2016. Based on the 48% of building permits being issued go
towards single family residential apartments we could assume that this percentage would work
applied to the $525,000 provided per year. Therefore, an additional market potential of %252,000 per
year just for aging in home specialists for basement in-law suite renovations.
12
MARKET SEGMENT #3: Accessibility for Disability/Special needs
This segment will deal with people who are suffering from personal injury, typically as a result
of an accident or disease. The age group from 15 to 64 years old has 70,541 with a recognized
disability (Giesbrecht, Smith, Mortenson, et. Al, 2017). This segment is going through a major
unexpected life change and will need a lot of emotional support from friends, family and professionals
in some cases. Each situation and needs will be unique and modification coverage will typically be
covered through their insurance plans or court rulings.
Home modification designs are very much the same as the senior home design needs, however
as the age demographic is so vast different marketing strategies will need to be used. Developing
relationships with local occupational therapists and personal injury lawyers to professi onally
recommended can help build our reputation with this sensitive market. Having a kind, sensitive and
respectful approach will be key to gaining trust with these customers. This clientele will be very
hesitant and skeptical of information at first as they feel forced into this life change and sometimes
have a hard time accepting changes needed.
13
Commonly Asked Questions from Clients:
Q: What is the history of your company?
We have over 15 years of custom renovation experience along with project management and business
expertise. Our General Contractor has worked on close to 100 different renovation projects over the
years from start to finish including, kitchens, bathrooms, doorways, floors and much more throughout
the GTA. Our expertise can use our past experience to better assess the needs of our clients and
recommend the best design solutions.
Q: What products and services do you offer?
We offer full interior design and renovation services from kitchens and bathrooms to basements, in-law
suites, bedrooms, family rooms and more.
OUR PRODUCT LINE INCLUDES:
• Walk-in bathtubs
• Grab bars and related reinforcements around the toilet, tub and shower
• Handrails in corridors
• Wheelchair ramps, stair/wheelchair lifts and elevators
• Heated floors
• Wheel-in showers with handheld shower heads
• Raised toilets
• Widening passage doors
• Lowering existing counters/cupboards
• Installing adjustable counters/cupboards
• Light switches and electrical outlets placed in accessible locations
• Door locks that are easy to operate
• Lever handles on doors and taps, instead of knobs
• Pullout shelves under counters to enable work from a seated position
• Non-slip flooring
• Additional light fixtures
• Relocation of tap to front or side for easier access
• Hands-free taps
• Motion-activated lighting
• Touch-and-release drawers and cupboards
Q: Have you done renovations like ours before?
Although many of our past renovation projects in the past have not been originally approached as
accessible renovations, about 56% of all renovations we do end up being some type of accessible
renovation anyway. Especially when we look at in-law suites, bathrooms and kitchens as well as
widened doorways and a more open concept look to the home.
Q: What warranty do you offer on your work?
We offer professional and prompt service as well as a 5-year warranty on craftsmanship. We guarantee
high quality installation and service so if there are problems or defects in the work we will come in and
14
replace it for free (materials may be additional if it is not within the scope of the repair work) . We are
happy to provide references, from past customers and have reviews posted on our website.
Q: How would you deal with our project?
We will have you fill out a survey online to answer some basic questions about your needs and wants
before we do an in-home inspection. This allows us to be better prepared before our initial meeting and
provide you with more relevant options. From there measurements will be completed and then we can
provide you with a preliminary quote. First step to confirming the project will be a contract to
guarantee the prices, products and services provided and will outline all the terms for your protection.
Then we will design a working drawing to match the scope and timeline of the project and you will
confirm these details before work is started? We will assist you in choosing products and guide you on
what permits are needed. We will make a clear outline on how long the work would take and when we
can they start and what will the schedule be like. Our deposit structure is 30% upon booking, 50% one
month after and 20% the 2nd month following. We have a professional standard and promise to keep
your home as clean and clear of obstruction as possible.
Q: Why should I choose you?
You can expect a lot of questions from us so we can try to find out as much as possible about you and
the proposed project. We listening carefully, take notes and ask the right questions. We will have many
idea offerings and suggestions to maximize the quality provided and if something is not clear or out of
scope we will be very transparent with you. At the end of our meetings we are confident you feel
assured that we understand what you want and can help you accomplish it.
15
Competitive Analysis
Our key success factors will include, a variety of services offered to suit customer’s needs, highly skilled workforce, good reputation. New tech and
increased training with apprenticeship will increase revenues. (IBIS, p. 19, 2017). General Renovation and interior design competition growth is
expected 5.2% by 2022 (IBIS, p. 9, 2017
Factor
Market Position
Rank competitors based
on relative size.
Strengths
What are their major
strengths?
Your Business:
Competitor 1:
Competitor 2:
Competitor 3*
Forward Thinking
Hearts of Oak
Easier Living
General Contractors
Small Business (less than 10
employees)
Small Business (less
than 10 employees)
Small Business (less than
10 employees)
SME (all general contractors linked
together) Small Business (less than
10 employees)
•
•
•
•
•
•
•
20
Ability to be a first in the
aging in place focused Reno
market in Cambridge.
Will have a showroom to
display designs.
We will offer a 5-year
warranty on labour
(craftsmanship) where we
will come and fix for no
additional labour charge
(parts/materials
additional).
Quality and precision and
personal approach
reputation.
•
•
•
Aging in place in
KW. 25 yrs. exp.
CAP certified.
Established
suppliers and
industry experts.
Have lots of
referral business
•
•
Specialize in aging in
place specifically with a
focus in Waterloo.
25 years of experience
and very large list of
qualifications.
Also, a real estate
agent and interior
designer by trade.
•
•
The majority have repeat clients
and their own little “niche”
network of repeat clients.
Typically, they have been in the
region for a while and have
supplier connection
the strongest companies focus
on project management as well.
Weaknesses
•
What are their principal
weaknesses?
Target Market
Who appears to be their
principal target
market/segments?
Product or Service
•
•
•
•
How does the
company’s product or
service differ from
others?
•
How do competitor
prices differ? (Show
numbers, but also
indicate % differences)
•
Identify the primary
promotional tools used.
17
Seniors
In-law suites for parents
rehoming
people needing accessible
renovations.
Aging in place and
accessibility focus
•
•
•
•
•
•
no fresh
perspective.
Standardized
approach to
renovation not
much creativity or
variety
•
High-end
additions.
Custom homes.
Aging in place.
•
Custom
homes. CAPS
certified
•
•
•
•
•
$85 per hour for labour
Based on mid-range
industry standards ($50$100 per hour)
junior helper of $40-$50
•
Snap’ d Magazine
Cambridge chamber of
commerce
Cambridge social planning
council aging in place
action plan partnership
•
•
•
Prices not listed
online and only
provided with
private
consultation.
Only specialize in aging
in place no versatility
with market segments.
Limited aging in place
resources on their
website
•
•
Not much differentiation.
They all claim the same thing,
quality, affordable, reliable.
Aging in place seniors.
All income levels
•
35 years old and up requiring
general repairs on wear and tear
kitchen/bath/basement
renovations
•
•
Price
Promotion
A lot of renovation
competition could take
over our specialty focus
•
KW record.
•
WR home builder
•
association
•
Waterloo chamber
of commerce
do not offer regular
reno services, only
aging in place
solutions.
CAPS certified
•
Prices not listed online
and only provided with
private consult.
•
•
•
LinkedIn
Facebook
Real Estate and interior
design events and
magazines
•
•
•
•
•
Very little differentiation from
each other will most likely come
down to who answers the call
first and comes in with the best
quote
sales approach matching
personality.
Prices vary however, Based on
mid-range industry standards
($50-$100 per hour)
junior helper of $40-$50
Google
social media
Trusted pro’s website
yellow pages
some use newspaper as well as
radio
Distribution/Place
•
•
Describe the principal
features of their
place/distribution mix.
•
•
•
Marketing Strategy
15. How would you
summarize their
overall marketing
strategy?
•
•
•
Google/social media
Cambridge social planning
council aging in place
action plan partnership
Still serve surrounding
areas.
Meeting directly with
customers at our
showroom and their home
Retailer and indirect
distribution.
Quality, precision,
compassion and personal
touch.
Cambridge aging in place
action plan partnership
Promoting universal 5-year
labour warranty
•
•
•
KW.
No showroom
Dual indirect
distribution acting
as a retailer
•
•
Quality, loyalty,
craftsmanship
Old school
marketing
approach of
newsprint
advertising and
awards.
Member of the
KW chamber
•
•
•
18
•
•
•
Cambridge, Kitchener,
Waterloo.
No showroom
Indirect distribution
acting as an agent for
the private renovator.
•
Personally, relates to
customers with
family/professional
experience
Education with interior
design and real estate
•
•
•
•
Cambridge, Kitchener,
Waterloo.
Majority have no showroom
Distribution acting as a retailer
They all typically rely on the
same reliable, quality, trusted
contractor approach
Very little differentiation.
SWOT Matrix
Opportunities
Threats
1.accessibility renovations for disability in-law
suites for parents rehoming
1.certified aging in place specialist training is difficult
to obtain year-round in Ontario. Only offered
through US companies.
2. low barriers to entry, regulation, investment,
risk
2.financial resources may not be available for those
that need it.
3.Underserviced market – not many aging in
place specialists in the region
3.Renovation industry is at a mature life cycle so
companies may catch on and want to follow the
aging in place trend as well
Strengths
O/S Matches
T/S Matches
1.specialize in aging in place
renovations
First to promote aging in place/accessibility
renovations in Cambridge as #1 service focus.
Showroom will allow us to become a one stop
shop for all your accessibility renovation needs.
We do renovations like everyone else but we are the
first to specialize in Cambridge However, we are not
limited to just Cambridge services. Will be able to
use our knowledge to educate our clients
2.Only renovation company
targeting baby boomers, in law
suites and disability/special needs
in addition to regular renovations.
Growing demand from consumers as there is a
shortage of retirement home living spaces.
Other renovation companies don’t have a focus on
the disability or accessibility side of renovations
where our aging in place solutions are transferable
to both market segments
3.young skilled workforce available,
possible college apprenticeships
Getting involved in the community will allow for
more loyalty and trust to build growth
Ability to provide seniors with various financial
resource links offered by various agencies.
Weaknesses
O/W Matches
T/W Matches
1.small and new in Cambridge and
don’t have brand loyal customers
in the area yet so a steady revenue
flow may start out difficult
Have a good reputation for renovations in
Milton and can get references that can transfer
to Cambridge customers.
Showroom to
offer retail sales becoming a one stop shop
aging in place experts
Large number of renovation companies and lots with
25 years of experience. Could be hard to enter the
market One direct competitor that does the same
thing as us but with much more experience and
reputation in the area.
2. Don’t have supplier network
setup to get steady inventory and
trade negotiations
Have the chance to explore all available
suppliers and make fresh connections
Not well known in the area and we are not certified
CAP specialists yet.
19
Estimate market size
Other incentives for people to stay in their home longer include the scarce amount of resale
homes along with increasing contract prices from realtor fees.
CMHC reports indicate that southwestern Ontario should see even more renovation work in
general due to low unemployment, aging population and renovation needs. Ontario
contractors are reporting that 56% of renovations actually end up being some form of aging at
home renovation without the client even realizing and once people start catching on they are
more likely to do similar renovations. Home builders’ association in Waterloo stated that there
are not very many people focusing their renovation businesses on aging place it is a growing
concern.
We estimate that business will be fairly steady year-round with a slight increase in warmer
months and a slight slowdown in colder months. We can plan ahead for and fill the winter
months interior renovations and retail store sales. Customers will typically only make a
purchase once, however if needs change they could always come back down the road. The idea
is to build a reputation and grow our reference and referral business. Customers would like to
see some product samples and meet with a friendly team of helpful staff and designers to make
sure their needs are understood and met. We will use Newspapers, word of mouth,
tradeshows (the Kitchener home show), trusted pro’s online contractor rating sites, other social
media and personally attending senior’s events as our main sources of advertising to our
clients.
SALES ESTIMATE APPROACH #1: TOP DOWN
DESCRIPTION
spent in home renovations by seniors across Canada
Number of Seniors in Canada
per capita spending
seniors in Kitchener-Cambridge-Waterloo
per capita x # of Seniors
% of home renovations that become accessibility
aging in place renovation market potential
Divided by local contractors
OUR MARKET SHARE POTENTIAL
20
SALES FIGURES
$8,000,000,000
notes
Financial post 2014
10,846,380 Stats CAN 2015
$737.57
141,255
$104,185,913
56%
$58,344,111
120
$486,200
consumer reports
on home advisor
SALES ESTIMATE APPROACH #2: CAPACITY
We used a combination of hourly wages at max capacity per year with billable hours and combined this
with the cost of goods sold plus the gross profit markup to show some combination sales revenues.
CONSTRUCTION
MANAGER
44
45
1980
$85
$168,300
$247,500
DESCRIPTION
# of Hours per week
# of Weeks per year
Max capacity of labour/yr.
x Billable hourly rate
Total Max capacity of billable labour hours
TOTAL COMBINED CAPACITY
COGS
x 49% GP markup (SME)
GENERAL LABOURER
44
45
1980
$40
$79,200
$184,680
$90,493.20
$522,673.20
TOTAL WAGES + COGS + GP MARKUP
SALES ESTIMATE APPROACH #3: BENCHMARKING
We would be safe to estimate that our revenue would be in the middle of the lower and upper middle
based on industry standards in the first year. Since we have a retail location we have used 2 separate
benchmarking comparisons. One is comparing us between the lower and mid ranges for sales for the
Home supply store (retail sales). The other has us between lower and upper middle for finish carpen try
(renovation services/products).
If we combine our revenues from both sections we will have a yearly revenue of $535,000
SME BENCHMARK
HOME SUPPLY
STORE
Bottom
quartile
(25%)
Revenues
Sales of goods sold
Gross Profit
Operating Expenses
Net Profit
Net Profit %
21
$87,000
$37,000
$50,000
$56,000
($6,000)
-7%
FINISH
CARPENTRY
**MIDDLE**us
Lower
middle
(25%)
Lower
middle
(25%)
$200,000
$94,000
$106,000
$98,000
$8,000
4%
$319,000
$165,000
$154,000
$138,000
$16,000
5%
$107,000
$33,000
$74,000
$54,000
$20,000
19%
**MIDDLE**us
Upper
middle
(25%)
$335,000
$117,000
$218,000
$154,000
$64,000
25%
$564,000
$276,000
$288,000
$231,000
$57,000
10%
BREAKDOWN ABOVE BASED ON MAJOR SEGMENTS
Description of segment: According to financial post increase of 5.9% per year on average.
Percent Change
Estimated sales
2019–2020
2020–2021
2021-2022
5.9%
5.9%
5.9%
$486,000
$515,000
$545,000
YEAR 2
YEAR 3
YEAR 1
January
February
March
April
May
June
July
August
September
October
November
December
TOTALS:
22
$25,000
$25,000
$25,000
$36,000
$45,000
$55,000
$60,000
$60,000
$55,000
$45,000
$30,000
$25,000
$30,000
$30,000
$30,000
$40,000
$50,000
$60,000
$60,000
$60,000
$55,000
$45,000
$30,000
$25,000
$35,000
$35,000
$35,000
$40,000
$50,000
$60,000
$60,000
$60,000
$60,000
$50,000
$35,000
$25,000
$486,000 $515,000
$545,000
Final Marketing Plan
Product-Market Strategy
Promotional Mix
Advertising
Social Media: We will be utilizing costs by free promotional efforts on social media streams; Facebook
and Instagram. Facebook is a great way for us to reach out to users and spread the name of our business
through word of mouth, but in the online world. Instagram is a great way for users to see professional
style pictures of the foundations that we build. With the pictures, users are also able to provide
feedback and personal thoughts on the work presented.
Newspaper Ads: “Snap’ d” is a great locally known paper in which we will take advantage of. “According
to Snap’ d they have 2.4 readers per copy, with 65% or readers being between ages 24 and 49”. This is
very cost effective with fees of up to $100/month. This is another great way for users in the KW region
to read across what it is we do.
Personal Selling
KW Home and Garden Show: This is a local networking event that will allow us to present our idea to
potential users in the Home and Garden industry. The show has annually, 15’000 visitors and 150
exhibitors. We will use a good word of mouth for this event to build relationships not only with home
users, but with other home innovators and construction idealists. We will have substantial online
presence with our website and social media as well as full colour catalogues handed out at community
and industry related events to establish our presence.
Sales Promotion
First 25 Clients: We will be having a special offer on our labour rate for the first 25 clients. This is
offering the lowest competitive rate of $75/hr instead of our initial rate of $85/hr. For this promotion
we are going to include certain supplies at a 0% markup that way these clients are really getting a deal.
Promotional Objectives, Messages, Media
Promotional Objectives:
•
•
23
We want users in the KW region to be able to see and acknowledge what possible services are going to be
offered come release of the business.
This is a great opportunity to introduce more accessible foundations in home to the future retiring age
group, as well those who are struggling already to create more accessible home foundations.
Main Message:
We offer a personalized approach to your home more to make your home more accessible. We will
deliver an equal level of functionality and safety foundations which will give you the maximum comfort
you always wanted. We deliver the latest trends to maintain style, dignity and independence.
Media:
•
•
24
Media will be used for clients to keep track with the latest trends with in our business industry.
As we continue to grow, we want our clients to be able to grow with the name.
Being active and up to date with the social media will keep users wanting to re-visit both
website and face-book posts.
Month by Month Advertising Schedule
•
Prior to the social media development, we will make sure that our website is running smoothly
and effectively. The design of our face-book page and website are to be setup on a professional
grade that way users are attracted to visit back. We will be linking most advertisements with the
“URL” of the website.
We will be selling flyers and brochures 3 months prior to the launch of our business. Getting the
business idea out in word-of-mouth is a great way for the manager/employers to reach out to
potential cliental and raise more awareness before the launching date of the business.
•
Month 1-3

Newspaper Ad
Facebook
Flyers/Brochures
Company Vehicle
Website
Months 4-6

Newspaper Ad
Facebook
Flyers/Brochures
Company Vehicle
Website
Months 7-9

KW Home and Garden event
Facebook
Instagram
Company Vehicle
Website
Months 10-12

Facebook
Instagram
Company Vehicle
Website
Car ad costs $700
!00 brochures will be printed $80 as per staples website
Website (via wix.com) costs $120/year
Newspaper: Cambridge Snap’ d $100/month
25
Pricing:
Our prices will follow within industry average at $85 per hour and $40 per hour for an assistant.
Customers are typically going with word of mouth referrals for general contractors for home
renovations with minimal aging in place knowledge. Hearts of Oak is a renovations company
that has a reputation for being specialized in building new homes and has developed a sub
segment in aging in place renovations. They have been around for 25 years and focus primarily
in Kitchener and Waterloo with no focus in Cambridge. The main competitor that focuses on
aging in place is a company named Easier Living at home. They specialize specifically in aging in
place renovations and nothing else. With only one contractor working with Easier Living, they
will not be able to keep up with the demand in the region.
Profitability objective
In our first year we hope will fall below the industry standard of 9% profit margin coming in at 3%.
This is because we have a combination of a store front and a renovation company and there is no
benchmarking ratio to directly compare this to. If we combine our 3% profit margin with the 4%
profit margin of the store we will be at roughly 7% for the first year. Our goal is to reduce expenses
by gaining better supplier relationships and increase sales and have reduced wages with College
Apprentice help which offers government rebates.
Place
LOCATION ANALYSIS:
LOCATION #1: 652 Bishop Street Cambridge **CHOSEN LOCATION**
26
ABOUT UNIT 1
1920 sq. Office for Lease in Cambridge. Clean, bright, with recent updates for $1560 a month. Private
offices and boardroom and space for showroom. Security system. Great frontage on a Regional road and
close to the 401. Photos to follow paint and lighting upgrades curre ntly being undertaken. Additional
$1.55/ft. for included utilities (Heat, Power, Water.) Great value for office or studio space in this market.
This location rates fairly high on the scale and is easily accessible for bus routes. The main entrance is
wheelchair friendly and there are no steps inside the storefront. There are also suppliers for kitchen and
bath products just down the road. It is a well build up area and just had lots of road work and waterlines
replaced. This is our chosen location to rent. See Appendix for more details
LOCATION #2: 135 George Street Cambridge
ABOUT UNIT 202
Newly renovated Brick & Beam 1300sq office space backing onto the Grand River in Downtown Galt.
Open concept with exposed brick, wood beams, high ceilings and refinished original hardwood floors.
Abundance of free parking adjacent to building and steps from GRT bust stop. On site amenities will
include shared kitchen and cafe with patio.
All ratings are in around the mid area meaning that the buildings current situation and standing are not
the greatest. The data suggests that there are better options to analyze. The location was a bar, so
there is a risk of damage to the area. Price is $1900 and at a midpoint compared to the three but could
be on the rise due to the area. See Appendix for more details
27
LOCATION #3: 200 Franklin Blvd Cambridge
ABOUT UNIT A6
Busy plaza located on high traffic road, offering great visibility and easy access excellent signage
Very well-maintained plaza plenty of free parking steps from GRT bus stop.1026 sq. with office
and open space for showroom . The location rates higher than average in regards to ownership
relationship but falls victim to too much road construction. The Rent is $2460 per month reaching the
more expensive end for an average building and doesn’t seem justified. The previous community
support business did not succeed in this location as it was not convenient for clients so they moved. See
Appendix for more details
28
Operational, Staffing and Implementation plans
Operational requirements
We will need to arrange supplier relationships with the following companies:
Brolain: Building Material Supplier – Cambridge, Ontario
KW Kitchens: Cabinet supplier – Cambridge, Ontario
Cambria: Granite and stone countertops – Cambridge, Ontario
29
Schedule 1
Required Start-Up Funds
Estimated Monthly Expenses
Column 1
Item
Your Estimate of Monthly
Expenses Based on Sales
of $230,000 Per Year
Salary of Owner-Manager
Salaries & Wages (incl. payroll taxes)
Rent and Occupancy Costs
Advertising and Promotion
Delivery Expense/Transportation
Supplies and Misc.
Telephone, internet,
Other Utilities
Interest
Insurance
Legal & Accounting
Maintenance
Other (misc.)
Column 2
Column 3
Number of Months of
Cash Required to Cover
Cash Required To Start
Business (Column 1 X
Column 2)*
$7,600
$7,900
$1,600
$350
$50
$100
$100
$250
$200
$500
$0
$200
$2,200
$0
$0
$0
$0
*
Expenses
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
Total Cash Requirements for Monthly Recurring Expenses: (A1)
$22,800
$23,700
$4,800
$1,050
$150
$300
$300
$750
$600
$1,500
$0
$600
$6,600
$0
$0
$0
$0
$63,150
Estimated one-time expenses
(will be paid in month 1)
Legal and Other Professional Fees
Licenses and Permits
Advertising and Promotion for Opening
$1,000
$1,000
$5,500
Total Cash Requirements for One-time expenses (A2)
total cash required
$7,500
$70,650
Cash Required to
Start Business
Capital Costs/Asset requirements (show on opening Bal. Sheet)
30
Fixtures and Equipment (incl. instal’n)
Vehicles
Leasehold Improvements (remodelling, signage)
Starting Inventory
computer equipment
Other (specify)
Other (specify)
$15,000
$25,000
$10,000
$15,000
$5,000
$0
$0
Total Captial Costs/Asset Purchases: (B)
$70,000
Total Estimated Funds Required to Start Business: (A1) + (A2) + (B)
$140,650
* You Will Have to Decide For Your Particular Business How Many Months You Expect Your
Expenses to Exceed Your Revenue So That You Will Have a Shortfall of Cash. This Should
Somewhat Overestimate Your Overall Cash Requirements and Provide You With a Safety Cushion
In Case Sales Don’t Materialize As Rapidly As You Expected.
Management structure
ORDER OF HIERACHY
SKILLS AND QUALIFICATIONS
Human Resources Plan
The Office Manager and the Construction Manager are both owners of the company and will do the
recruiting together. First year will hire a general labourer that is interested in growing their
knowledge and skills in the construction industry. We will look to local Colleges to post listings for
trades students as well as online job search sites including indeed. We will do an end of day, end of
week and end of first month assessment to see if basic compatibility requirements fit with the job
profile and that the employee is happy as well. Each day the worker will be directly working with
the Construction Manager for proper training. We are not going to rush job site training we want to
ensure 100% accuracy to comply with our high-quality standards and hard work.
Employee Policies
•
•
•
•
•
•
31
Usage of alcohol or drugs is prohibited in the office and working sites
Respect all other on premises
Fair use of all equipment within the working hours
Abide by instructions given by onsite managers
All employees are obliged to follow the safety rules and instructions
Clients information and data must not be known outside the company and must be kept
confidential
Job Descriptions
Office Manager
Office manager is responsible for a diverse set of administrative tasks. Contributes to team effort
by accomplishing related results as needed
Job description
•
•
•
•
•
•
•
Maintains office services by organizing office operations and procedures; preparing
payroll; controlling correspondence; designing filing systems; reviewing and approving
supply requisitions; assigning and monitoring clerical functions.
Provides historical reference by defining procedures for retention, protection, retrieval,
transfer, and disposal of records.
Maintains office efficiency by planning and implementing office systems, layouts, and
equipment procurement.
Designs and implements office policies by establishing standards and procedures;
measuring results against standards; making necessary adjustments.
Completes operational requirements by scheduling and assigning employees; following
up on work results.
Keeps management informed by reviewing and analyzing special reports; summarizing
information; identifying trends.
Achieves financial objectives by preparing an annual budget; scheduling expenditures;
analyzing variances; initiating corrective actions.
General Contractor
A general contractor hires and organizes all necessary workers for a construction job. He or she
also provides materials, obtains necessary permits, schedule inspections, complies with all
building codes and sees the project through to completion. General contractors get hired by
estimating how much a project will cost to build overall and offering that estimate in the form
of a bid to the persons or company who are paying for the project. General contractors who
work on very large-scale projects, such as high-rise buildings or civil projects, typically work as
managers rather than direct labourers. Those involved in smaller, residential buildings or
remodels may also provide many hours of hands-on labour.
Job description:
•
•
32
Plans all phases of a construction project from beginning to end, as these phases pertain
to their knowledge area
Estimates costs of material, labour, machinery and any other expenses to formulate a
quote price
•
•
•
•
•
•
•
•
Prepares a timetable to present to clients to illustrate a project timeline
Completes any necessary paperwork, including legal permits or new work orders
Meets with clients to discuss project and schedules follow-up meetings
Provides employees with motivation and encourages quality work
Puts project back on schedule when emergencies or new timelines arise
Follows up on jobs to make sure elements are in working order
Ensures the safety of employees and other workers on a job site
Provides guidance and job tasks to workers and oversees job performance
General Labourer
Construction laborers perform a variety of tasks at all kinds of construction sites. Tasks that
require little skill can be learned quickly; other tasks require considerable experience or
training.
Job description:
•
•
•
•
•
•
•
33
Climb to heights and conduct work with proper safety restraints
Lift heavy loads up to 70 lbs and navigate construction job site terrain
Dig pits, trenches and foundations in preparation for job site
Operate heavy machinery
Identify utility lines
Perform setup and cleanup tasks at job site
Provide labour support as needed for specialty crew
Risk management and legal requirements
Risk management plan
Insurable
Risk Management Strategy
Employee theft
(I.e. tools)
Accidents to employee
(i.e. slip and fall, severe
damage etc.)
NO
Accidents to general pubic
(I.e. customers)
Property loss to vandalism,
Fire, water damage, etc.
YES
Delayed or non-payments of
contracts
NO
Damage to property and
products
Employee misses or Does not
show up for work
YES
Supplier satisfactory and
quality of materials
NO
Reduce Risk by locking tools up, putting
security cameras in store and in truck
Transfer risk to insurance company
$1000/Year
Reduce risk by following safety
requirements, wearing all safety
equipment, checking all tools before
use and keeping a clean workplace
Reduce risk by keeping work area
closed off, keeping area clean
Transferring risk to insurance company
for $ 1500 a year for full coverage
Reduce Risk by installing sprinkler
system, fire alarms and keeping all
potential fire hazards clean and stored
correctly
Reduce risk by doing credit checks,
keeping contact with client, provide
quality work
Reduce Risk by being careful with
products
Reduce risk by doing background
checks of employee, having an
employment contract, on call back up
employee
Reduce risk by doing background
checks on company and customer
reviews and checking orders before
receiving
Reduce Risk by always having jobs
available for employees and making
sure employee is content with work
and pay and employee incentives
Transfer Risk to insurance company
$1000 a year
Reduce Risk by having a contract done
by a lawyer that includes all risk and
liabilities that are possible
YES
YES
NO
Non-competition clause
NO
(I.e. employee cannot work on
side without company
agreement)
Professional Liability
Partially
(Errors & omissions)
34
Client Terms & Conditions
35
•
Payment installments are as follows: 30% collected upon sales, 50% collected in 2 nd month, and
balance in 3rd month
•
In case of modification of contract, all changes are made and confirmed in writing
•
Allow up to 24 business hours for a response to questions
•
Clients are advised not to present on the working site, as we are not responsible & liable for any
injuries
•
All sales of installed equipment are final
•
When starting a contract, clients must provide two types of identification; one must contain a
photo. Clients must provide proof of ownership of the site or a consent from the owner.
References:
Canada Broadcasting Corporation (2016, September 28) Renovation Boom Underway,
Retrieved February 8 2018. from http://www.cbc.ca/news/business/baby-boomer-renocmhc-1.3782195
Government of Canada (2017, Sep 9) Financial performance data report,
Retrieved February 7, 2018, from
http://communityservices.regionofwaterloo.ca/en/housing/fundingforhomeowners.asp
Marr, Gary, Financial Post (2014, August 9) Seniors staying in their home: the next big trend in
home renovation Retrieved February 7, 2018. from
http://business.financialpost.com/personal-finance/seniors-staying-in-their-home-thenext-big-trend-in-home-renovation
Region of Waterloo (2017), Funding to help repair your home, Retrieved February 7,2018. from
http://communityservices.regionofwaterloo.ca/en/housing/fundingforhomeowners.asp
Social Planning Council of Cambridge and North Dumfries (2013, March), An Age Friendly
Action Plan for Cambridge, Retrieved February 7, 2018, from
http://www.spccnd.org/userContent/documents/Publications/Age%20Friendly%20Ca
brdge%20Action%20Plan%20Final%20Report-%20March%2027.pdf
Canada, G. O. (2017, November 16). Census Profile, 2016 CensusKitchener – Cambridge
Waterloo [Census metropolitan area], Ontario and Ontario [Province]. Retrieved March
07, 2018, from http://www12.statcan.gc.ca/censusrecensement/2016/dppd/prof/details/page.cfm?Lang=E&Geo1=CMACA&Code1=541&G
eo2=PR&Code2=35&Data=Count&SearchText=kitchener&SearchType=Begins&SearchPR
=01&B1=All&TABID=1
Canada, G. O. (2016, July 05). Canadian Survey on Disability, 2012 Mobility disabilities among
Canadians aged 15 years and older, 2012Canadian Survey on Disability, 2012 Mobility
disabilities among Canadians aged 15 years and older, 2012. Retrieved March 07, 2018,
from http://www.statcan.gc.ca/pub/89-654-x/89-654-x2016005-eng.htm
Environics Analytics. (2016). EAG Canada 2016–Kitchener (ON)–Food [Data set]. Retrieved
February 28, 2018, from EAG Canada database.
FitzGerald, J. (2014, July). Long-term Outcomes of Home Modifications. Retrieved March 07,
2018,
fromhttps://www.marchofdimes.ca/EN/programs/hvmp/Documents/HVMP_Longterm_Outcomes_Survey_Report_2014.pdf
36
Giesbrecht, E. M., Smith, E. M., Mortenson, W. B., & Miller, W. C. (2017, August
16). This study
examines the met and unmet needs for environmental accommodations and assistance
among wheeled mobility device users, compared with individuals with a disability who do not
use a wheeled mobility device. Retrieved March 07, 2018, from
http://www.statcan.gc.ca/pub/82-003-x/2017008/article/54852-eng.htm
Greene, K. (2016, September 27). Ontario homeowners set to renovate Which Mortgage
Canada. Retrieved March 07, 2018, from https://www.whichmortgage.ca/article/ontariohomeowners-set-to- renovate
214438.aspx
Mark, D. (2006, February 01). Renovation Spending. Retrieved March 07, 2018, from
http://homebuildercanada.com/1606spending.htm
Marr, G. (2014, August 09). Seniors staying in their home: The next big trend in home
renovation? Retrieved March 07, 2018, from http://business.financialpost.com/personalfinance/seniors-staying-in-their-home-the-next-big-trend-in-home-renovation
Marr, G. (2016, June 22). Renovation spending expected to rise in 2016 as people just can’t
afford to move. Retrieved March 07, 2018, frhttp://business.financialpost.com/personal
finance/mortgages-real-estate/renovation-spending-expected-to-rise-in-2016-as-people-justcan’t-afford-to-move
Pavia, J. (2016, November 28). Deadline looming for Ontario’s homeowner grants. Retrieved
March 07, 2018, from http://www.cbc.ca/news/canada/kitchener-waterloo/granthomeownership-waterloo-region-norfolk-haldimand-1.3868034
Region of Waterloo Planning, Development and Legislative Services Community
Planning
(2017, April 04). Retrieved March 07, 2018,
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38
Appendices:
Location surveys
LOCATION #1: 135 George Street Cambridge
Location Analysis: George Street
Primary Acceptance or Rejection Factors
Will municipal zoning allow the proposed business?
Does this Site meet the minimum operating needs?
Do Existing Building meet minimum initial needs?
Is the rent for this location within your proposed operating budget?
Is the rent for this location, with or without buildings, reasonable?
Column1
Site Evaluation
How does this location compare with the best possible location available?
What rating would you give the present buildings on the site?
Rating of the overall environment in comparison to the best?
How would you rate the availability of parking for vehicles?
The nature and quantity of combined foot and vehicle traffic passing.
What is the improvement potential of this location?
Column1
65
50
50
100
80
80
39
Yes
Yes
Yes
Yes
Yes
Trend Analysis (rating 1-3)
Has the location shown improvement through the years?
Is the owner and/or landlord progressive and co-operative?
What major patterns of change are affecting this location?
What businesses have occupied this location over the past 10 years?
Have the business identified in question 15 been successful?
Why is this location available now?
Are a number of other suitable locations available?
Column1
2
2
2
Bar/Club
Yes
Closed
Yes
Price-Value Determination
What is the asking rent for each location?
What is the estimated cost of required leasehold improvements?
What numerical total for each site is developed for questions 6-11?
Highly favourable, average, fair, or questionable?
Column1
$1,901
Unknown
425
Average
LOCATION #2: 200 Franklin Blvd Cambridge
Location Analysis: Franklin Road
Primary Acceptance or Rejection Factors
40
Column1
Will municipal zoning allow the proposed business?
Does this Site meet the minimum operating needs?
Do Existing Building meet minimum initial needs?
Is the rent for this location within your proposed operating
budget?
Is the rent for this location, with or without buildings,
reasonable?
Yes
Yes
Yes
Site Evaluation
How does this location compare with the best possible location
available?
What rating would you give the present buildings on the site?
Rating of the overall environment in comparison to the best?
How would you rate the availability of parking for vehicles?
The nature and quantity of combined foot and vehicle traffic
passing.
what is the improvement potential of this location?
Column1
Trend Analysis (rating 1-3)
Has the location shown improvement through the years?
Is the owner and/or landlord progressive and co-operative?
What major patterns of change are affecting this location?
What businesses have occupied this location over the past 10
years?
Have the business identified in question 15 been successful?
Why is this location available now?
Are a number of other suitable locations available?
Column1
Price-Value Determination
What is the asking rent for each location?
What is the estimated cost of required leasehold improvements?
What numerical total for each site is developed for questions 611?
Highly favourable, average, fair, or questionable?
Column1
41
Yes
Yes
70
70
60
100
100
50
3
1
1
Community Support
Connections
N/A
Moved
Yes
$2,460
Unknown
450
Average
LOCATION #3: 652 Bishop Street Cambridge
Location Analysis: Bishop Street
Primary Acceptance or Rejection Factors
Will municipal zoning allow the proposed business?
Does this Site meet the minimum operating needs?
Do Existing Building meet minimum initial needs?
Is the rent for this location within your proposed operating budget?
Is the rent for this location, with or without buildings, reasonable?
Column1
Site Evaluation
Column1
Yes
Yes
Yes
Yes
Yes
How does this location compare with the best possible location available?
What rating would you give the present buildings on the site?
Rating of the overall environment in comparison to the best?
How would you rate the availability of parking for vehicles?
The nature and quantity of combined foot and vehicle traffic passing.
What is the improvement potential of this location?
Trend Analysis (rating 1-3)
Has the location shown improvement through the years?
Is the owner and/or landlord progressive and co-operative?
What major patterns of change are affecting this location?
What businesses have occupied this location over the past 10 years?
Have the business identified in question 15 been successful?
Why is this location available now?
Are a number of other suitable locations available?
42
80
80
90
100
50
60
Column1
1
3
3
Pottery Studio
Partially
Company Moved
Yes
Price-Value Determination
What is the asking rent for each location?
What is the estimated cost of required leasehold improvements?
What numerical total for each site is developed for questions 6-11?
Highly favourable, average, fair, or questionable?
Column1
$1,560
Unknown
460
Highly Favourable
See Separate Appendix sheets for the following
documents: (in order)
Creative promotional Flyer
Implementation Plan
Floor plan
Financial Plan
Financing structure
Cash Required for Start-up
Pro Forma Income Statement
Pro Forma Cash Flow Forecasts
Assumptions
Financial Ratio Analysis
Research Articles
43
The Sinkette
Kimberly Azuya, Guosen Ma & Manny
Sahota
01
Problem
Communication including Manufacturing
in Asia and our customers
Supply chain – warehousing and storage
Adding value by providing unique features
02
Customer Segments
Short term B2B Operating
Hardware and appliances businesses
Home improvement businesses
Home accessories and service businesses
02
Customer Segments
Cont’d
Long Term B2C Operating
Luxury spenders
Health-conscious
Comfort lifestyle seekers
Canadian families, senior citizens, and
new homeowners
03
Unique Value Proposition
We are a brand seeking to provide our customers with an easy-touse, sustainable, and environmentally conscious bidet, that aims to
deliver on comfort and promote a healthier lifestyle.
04
Solution
Replaceable filters
Toilet seat warmers
Warranty program
Quality and luxury
05
Unfair Advantage
We provide eco-friendly replaceable filters, a feature that
most competitors do not possess. As most entail a direct
attachment to the toilet tank, we offer sustainable filters
that can be easily replaced.
We also pride ourselves on providing quality customer
service. As the majority of our operations require constant
contact with the clients and customers, we ensure that our
communication is effective.
06
Revenue Streams
In-store advertising
Filter purchases
Expansion into B2C operation.
Labour
25%
07
Taxes, Tariffs, and duties
15%
Cost Structure
Taxes, tariffs, and duties (V)
Warehousing (F)
Advertising and marketing
(V)
Labour (V)
Ads & Marketing
20%
Warehousing
40%
08
Key Metrics
The number of sales in a given period
The number of regions reached
The number of businesses reached
Customer satisfaction
Use of ledgers and/or ERP systems to keep records of sales, clients
and other criteria.
The use of survey and closing questions to determine customer
satisfaction.
09
Channels
Door to Door sales
Cold calling
Social media
High skilled marketing specialist for
potential customers
Thank You!

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