Barnum Painters is committed to providing high-quality interior and external residential and commercial painting service. The principal officers of Barnum Painters believe that most companies in this industry suffer two major problems. These are poor scheduling of job projects and poor retention of quality employees. Both these issues lead to customer dissatisfaction, low repeat business, and low word-of mouth referral rates. Barnum Painters believes this contractor business strategy can help it exploit its weaknesses to increase local market share.
The objectives for Barnum Painters over the next three years are:
- To achieve sales revenue of approximately $620,000 within the third year.
- To reach a customer mix that is 30% commercial and 10% residential per year.
- Expanding operations to include all of the Greater Seattle region, Kirkland Renton, and the Kitsap Peninsula.
The company will do everything possible to provide the best painting services to its customers. This includes ensuring that they are available when needed and maintaining a quality-control program that ensures 100% 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 result in greater long-term profits via referrals and repeat customers.
Barnum Painters will institute the following key procedures to reach its goals:
- Have at least one expediter assigned for each project.
- Each project should have a project manager who is able to handle quality-control issues.
- Establish a profit sharing plan for all employees.
Barnum Painters Limited Liability Company is a new start-up with three principal officers, each of whom has over 40 years industry experience. Barnum Painters will be a partnership between Mr. William Barnum, Mr. Anthony Barnum and Mr. Michael Kruger. The principals will be investing significant amounts of their own capital into the company and will also be seeking a loan of $7,000 to cover start-up costs and future growth. A $10,000 line of credit has been obtained by the company (not shown in financial statements). This credit can be used for any unforeseen expenses.
Barnum Painters will be located at a rented unit in Rucker Industrial Park, 710 Snoquamie Route Suite 250, Edmonds, WA. There will be a reception, offices for principals, inventory storage, and an employee lounge. Barnum Painters offers a wide variety of services primarily focused on interior and exterior residential and commercial painting. Additionally, the firm offers services such drywall plastering as well as acoustic ceilings, pressure washing and other related services. The aim is to provide clients a broad range related services that will minimize the need for multiple contractors. Barnum Painters will be able to provide a low-cost, high-quality leadership strategy.
Initially, the company will only be serving residential and commercial customers in Everett. The company plans to serve the entire Puget Sound region by the end the three-year projections. The company has rigorously examined its financial projections and concluded that they are both conservative in profits and generous in expenditures. This was done intentionally to allow for unexpected events. According to the company’s principals, cash flow projections seem realistic.
Keys for Success
Barnum Painters’ principal officers are experienced in the contracting industry for many years. They believe that most companies in this industry, which includes painting contractors, suffer from two major problems that Barnum Painters can improve upon and exploit.
The scheduling of jobs can be the first problem. It is difficult for many painting contractors to keep their schedules straight with customers, which can lead to customer dissatisfaction and loss. This can be caused by poor management, less reliable employees, delays in inventory distribution, and poor inventory procurement. The second problem is in retaining reliable and motivated personnel. Many painting companies rely upon temporary or transient employees which results in high turnover rates and reduced service quality.
These are the key procedures Barnum Painters will use:
- Incorporation of an inventory coordinator position and at least one expediter for each project.
Mission
Barnum Painters aims to provide the highest quality interior and exterior residential as well as commercial painting services. This company will ensure that these services are provided in a timely 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 are meant to be a long-term partnership that is mutually beneficial. This will lead to greater long-term profitability through referrals, repeat business, and other activities.
Objectives
Barnum Painters’ goals for the next three-years are:
- In the third year, sales revenues will be approximately $450,000
- You can achieve a client mix of 30% commercial and 10% residential building contracts each year.
- Expand operations to include all the Greater Seattle area including Kirkland, Renton and the Kitsap Peninsula.