Orland, Harvey, South Holland, East Hazel Crest and Homewood |
E&E Landscape
Executive Summary
E&E Landscape the most reliable landscaping business.
Company Background
|
Contact Information
Ezequiel
Year Founded
2012
_____________
Investment Opportunity
1,575.68
Annual Operating Costs*
3,044.46
Annual Sales*
12000
Annual Profit*
2019.21
Return on Sales*
16.8%
Return on Investment*
128%
Breakeven Units/Month*
19
units
*Projected
|
Business Description: My
business is called E&E Landscape. My business is a partnership. I chose
partnership because we can help each other financially. My industry is in the
landscaping industry.
|
|
Business Model: E&E Landscape will add
beauty to every single lawn we work on. Customers will be the envy of their
neighborhood; their lawn will be the best around.
|
|
Mission Statement: To help
the customers maintain their property structure. We do the service for a good
price so people could afford it.
|
|
Market Opportunity
|
|
Opportunity: In the areas we work in the
population is elderly people, not all but most. We work for them because we
know that they will struggle to work, they don’t have much strength.
|
|
Target Market: We mostly think our target
market is elderly people mostly the age of 50 and up, however, we will be
pleased to service any customer in our community.
|
|
Industry Overview: Our
service is in the landscaping service industry. Our industry size is
$29,245,521.
|
|
Market Research: My business is in the
landscaping service industry. We prefer to work with elderly people, who are
in need of help. We work at places in
areas such as South Holland, Harvey and Hazel Crest.
|
|
Leadership
|
|
E&E Landscape: I’m
qualified to run E&E Landscape because I’m very hard working. I always
treat my customers with respect. I’m also experienced in this field of work.
|
E&E Landscape
Business Plan
E&E Landscape the most reliable landscaping business.
1. OPPORTUNITY RECOGNITION & BUSINESS STRUCTURE
1.1 Business
Opportunity
We have a service
business. Our consumer can call our
office to arrange an appointment when our service is needed.
1.2 Type
of Business
We run a service
business.
E&E Landscape is a
service that helps maintain the consumer’s property.
1.3 Type
of Business Ownership
Partnership, because we
can help each other financially.
1.4 Mission
Statement
To help the customer
maintain their property structure, we do the service for a good price so people
could afford it.
1.5 Social Responsibility
Our social
responsibility is that we will recycle grass clippings instead of throwing them
away and use them to make mulch.
1.6 Qualifications
I’m experienced, I’m
very hard-working, and I have equipment to do the job right.
2. MARKET RESEARCH
2.1 Market
Research
My business is in the
landscaping service industry. We prefer to work with elderly people, who are in
need of help. We work at places in areas such as South Holland, Harvey and
Hazel Crest,
2.2 Target
Market
Demographic Information: Any age but mostly 50 and up. We will focus on
elderly people who own their own house.
Geographic Information: We will
mostly work at a neighborhood with the population filled with most elderly
people. People who live in the areas of Orland, Harvey, South Holland, East
Hazel Crest and Homewood.
Psychographic Information: Our
consumer decides to have great looking lawns. They all have different
personalities and they also have different attitudes but they are respectful,
they all have clean lifestyles.
Buying Patterns: Our consumers will use our
service weekly.
2.3 Competitors
Direct Competition: A direct competitor will be
Lawn Crafters.
Indirect Competition: Yard and Lawn Clean-up.
2.4 Competitive
Advantage
1.
We recycle
grass clippings for mulch.
2.
We do our best
to keep your lawn nice and clean.
3.
We don’t
charge as much as other landscaping businesses.
4.
We also
respect every lawn and customer; we will never disrespect a customer.
2.5 Business
Growth
Short-Term Business Goals: Our short term goals are to get recognized in our
community
Long-Term Business Goals: Our long term goals are to expand a lot over the
country, get noticed all over the country.
2.6 Challenges
Short-Term Business Challenges: Short term challenges will be the seasons, and the
competition.
Long-Term Business Challenges: Long term challenges will be expanding to big and
buying more equipment.
3. PROMOTION
& SALES
3.1 Marketing
Plan
We plan to market the
elderly, ages 50 and up.
The marketing plan will
highlight the following customer benefits:
1.
More time
spent with their family.
2.
Less time
spent on their lawn.
3.
Less money
spent.
4.
Healthier
backs.
5.
More aesthetic
lawns.
3.2 Promotion
E&E Landscape will
engage in 2 types of promotional activities: business cards, and a website,
also we will use social media websites such as Instagram, Facebook, and
Twitter.
1.
Business cards: We will make business cards and
pass them out to our customers. My customers can also pass out my business
cards to friends and family,
2.
Website: I will make a website will my contact
information, it will also list my prices and when I will have time to cut your
lawn. Instagram, Facebook, Twitter.
3.3 Sales
Methods
Future selling
strategies will include asking customers for referrals and recommendations of
potential clients that would be interested in my services. We will get jobs by
customer recommendations. We will also go around house to house and ask the
house owners if they will like their lawns cut.
Steps a consumer follows to purchase my service:
1.
They dial my
company’s number.
2.
I answer and
we set an appointment.
3.
They can also email
me, I will respond, we can set up an appointment through email.
3.4 Sales
Estimates
Factor
|
Influence on sales
|
Market Analysis
|
80% of the people live in the
areas of Orland, Harvey, South Holland, East Hazel Crest and Homewood would
give me a call when they need their lawns cut.
|
Maximum Capacity
|
We will do a maximum
of 15 units each week (15 hours). This
allows us to meet our sales projections.
|
Break Even Units
|
We must sell at least
19 units per month to cover our operating expense, we predict to be selling
more than 19 units a month.
|
Seasonality
|
We will work more in
June, July, and August. At least 80
units each month for those 3 months.
|
Month
|
Units
|
Revenue
|
January
|
0
|
$0
|
February
|
0
|
0
|
March
|
0
|
0
|
April
|
55
|
1650
|
May
|
65
|
1950
|
June
|
80
|
2400
|
July
|
80
|
2400
|
August
|
80
|
2400
|
September
|
40
|
1200
|
October
|
0
|
0
|
November
|
0
|
0
|
December
|
0
|
0
|
Annual Total
|
400
|
$12000
|
4. FINANCIAL INFORMATION & OPERATIONS
4.1 Definition
of One Unit
One unit is defined as
servicing one customer’s lawn.
4.2 Variable
Expenses
Materials
|
||||||
Material Description
|
Bulk Price
|
Bulk Quantity
|
Quantity per Unit
|
Cost per Unit
|
||
Gasoline
|
$43
|
10 gallons
|
1
|
$4.30
|
||
Trash Bags
|
5.99
|
40
|
1
|
.15
|
||
Total
Material Costs per Unit
|
$4.45
|
|||||
Labor
|
||||||
Cost of Labor per Hour
|
Time (in hrs) to make one unit
|
Total
Labor Costs per Unit
|
||||
$12
|
1 hour
|
$12
|
||||
EOU
|
||||||
Material Costs
|
Labor Costs
|
TOTAL
EOU
|
||||
$4.45
|
$12
|
$16.45
|
||||
4.3 Economics
of One Unit
Selling Price per
Unit
|
$30
|
||
Variable Expenses
per Unit
|
|||
Costs of Goods Sold
|
|||
Materials
|
$4.45
|
||
Labor
|
$12.00
|
||
Total Cost of Goods Sold
|
$16.45
|
||
Other Variable Expenses
|
|||
Commission
|
$0
|
||
Packaging
|
0
|
||
Other
|
0
|
||
Total Other Variable Expenses
|
$ 0
|
||
Total Variable Expenses
|
$16.45
|
||
Contribution
Margin per Unit
|
$13.55
|
4.4 Production
Process OR Delivery of Service (delete one)
Description of Step
|
Time
|
Cost
|
1.
Talk with
client, to get address.
|
10 min.
|
$0
|
2.
Drive to
clients’ house.
|
10-15 min.
|
$0
|
3.
Cut the
lawn.
|
20-30 min.
|
$30
|
4.
Put grass in
trash cans.
|
5 min.
|
$0
|
5.
Collect the
money.
|
1 min.
|
$0
|
6.
Return home.
|
10-15 min
|
$0
|
4.5 Fixed
Expenses for One Month
Expense Type
|
Monthly Cost
|
Explanation
|
Insurance
|
$100
|
As a landscaper we need insurance on our equipment.
|
Salary
|
$0
|
We have no employees.
|
Advertising
|
$15
|
We plan to create business cards.
|
Interest
|
$0
|
We don’t plan on paying loans with interest.
|
Depreciation
|
$8.73
|
All of our tools will be $419 and will last up to 48 months.
|
Utilities
|
$130
|
We will pay $130 a month for gas, electricity, and telephone.
|
Rent
|
$0
|
We will not rent anything
|
Other Fixed Expenses
|
$0
|
No other fixed expenses.
|
Total Fixed Expenses
|
$253.73
|
4.6 Income
Statement for First Year of Operations
REVENUE
|
$12000
|
||
Gross Sales
|
$12000
|
||
Sales Returns
|
|||
Net Sales
|
$12000
|
||
VARIABLE EXPENSES
|
|||
Costs of Goods Sold
|
|||
Materials
|
$1780.00
|
||
Labor
|
$4800.00
|
||
Total Cost of Goods Sold
|
$6580
|
||
Other Variable Expenses
|
|||
Commission
|
$0
|
||
Packaging
|
0
|
||
Other
|
0
|
||
Total Other Variable Expenses
|
$0
|
||
Total Variable Expenses
|
$6580.
|
||
CONTRIBUTION
MARGIN
|
$5420.00
|
||
FIXED OPERATING
EXPENSES
|
|||
Insurance
|
$1200
|
||
Salaries
|
0
|
||
Advertising
|
180
|
||
Interest
|
0
|
||
Depreciation
|
104.46
|
||
Utilities
|
1560
|
||
Rent
|
0
|
||
Other fixed expenses
|
0
|
||
Total Expenses
|
$3,044.46
|
||
PRE-TAX PROFIT
|
$2375.54
|
||
Taxes (15%)
|
356.33
|
||
NET PROFIT
|
$2019.21
|
4.7 Startup
Investment
Item
|
Why Needed
|
Vendor
|
Cost
|
Lawnmower
|
We need it to cut
grass.
|
Sears
|
286.02
|
Weed Wacker
|
To get rid of weeds.
|
Sears
|
66.49
|
Leaf Blower
|
Blowing leaves off of
the lawn.
|
Sears
|
66.49
|
Gas/10 Gal.
|
Fuel up our
equipment.
|
Any gas station
|
43
|
Trash Bags
|
To pick up grass,
leaves, and sticks.
|
Menards
|
5.99
|
Business License
|
So we can start up
our business.
|
City of Harvey
|
75
|
Total
Startup Expenditures
|
$542.99
|
||
Emergency Fund (1/2
of startup expenditures)
|
271.50
|
||
Reserve for Fixed
Expenses (covers 3 months of fixed
expenses)
|
761.19
|
||
Total
Startup Investment
|
$1,575.68
|
||
4.8 Financial
Ratios
Return on Sales (ROS):
Annual Net Profit
|
$2019.21
|
=
|
16.8%
|
≈
|
$0.17
|
|
Total Annual Sales
|
$12000.00
|
Return on Investment (ROI):
Annual Net Profit
|
$2019.21
|
=
|
128%
|
≈
|
$1.28
|
|
Total Startup Investment
|
$1575.68
|
Breakeven Units (Monthly):
Fixed Monthly Expenses
|
$253.73
|
=
|
18.72
|
≈
|
19
units
|
|
Contribution Margin
|
$13.55
|
