New construction and engineering company is seeking an initial investment of US$1,5 million to start up, incl. purchase of machinery & equipment, office setup, etc.
Our company is a new player in the construction industry with primary focus on comprehensive civil works in transport infrastructure and commercial building. We will provide construction and maintenance services to the public and private sector that entails the government departments, private sector and manufacturing & mining industries.
The target clients are all the national municipalities, private sector clients and the mining industry across the republic. Our competitive edge will be our full-range equipment and expert financially engineered development plans. Superior customer service will also be a point of firm differentiation.
The most significant challenge and the biggest milestone ahead includes expansion of the client base, and ultimately positioning the firm to have the capacity of qualifying for +$10m contracts. This business plan outlines the primary entry objective on transport infrastructure segment, focus, and implementation of this idea.
We are seeking a start-up investment of $ 1,500,000 (One million five hundred thousand dollars) to start-up and maintain our cash flow over the next year as we become profitable.
The company plans to become a leading provider of commercial building & road construction services nationally. To achieve this, we will invest in many ways that will pay off in competitive advantages for its clients, for example:
· Full range equipment including our Sophisticated hot recycling machine - Remixer RX 4500. This will give us the greatest advantage over majority contractors who do not have this machine
· Assist in technical or conceptual design
· Assist in supervision when other contractors are employed
· Organize project supervision facilities and staff
· JIT (Just In Time) procurement policies
The local area is booming at this time, with many development projects running both by public and by private sources. Overall business growth over the past seven years has averaged approximately 9.5% and is expected to continue for at least the next several years. This constitutes an attractive market for our company. We will be concentrating on road
construction, industrial maintenance and commercial & residential building construction in the long term.
Start-up costs will cover a number of details to convert the structure to suit our concept both visually, and functionally. Included in start-up costs are all necessary expenditures to cover the pre-opening hiring and training of our staff, adding and revising equipment needs, supplying small wares and
service wares, stock and other essentials.
Total start-up expense (office setup and related expenses) comes to $13,400. Start-up assets required include $1,945,000 in fixed assets (Machinery & equipment and motor vehicles) and $241,600 in current assets (Initial cash to handle the first few months in materials, consulting operations,payroll, office furniture etc) as sales and accounts receivable play through the cash flow.
We are only looking for an investor/partner who will also bring additional added value to our company, such as expertise in finance, international business, industry networks, and more. We intend to build a strong finance reserve such that additional funding that may eventually beneeded to go into a larger scale operations will be acquired from the local finance houses thus
limiting the risks while increasing the ROI on our investor/partner.
We project increasing dividends (set at 20%), which will be distributed first to our partner/investor and the founder.