JOE’S QUALITY PAINTING
TH4358 W. 224 AVENUE WOOD CITY, CA 93XXX
559-000-000 (T) – 559-000-000 (F)
Wood City Community Bank
2424 E. Cincinnati Blvd.
Wood City, CA 93XXX
TABLE OF CONTENTS
THE BUSINESS DESCRIPTION4MARKET ANALYSIS5VISION STATEMENT7VISION TRIGGER7MISSION STATEMENT7BUSINESS OBJECTIVES8BUSINESS OPERATIONS8MARKETING8
PROMOTION11COMPETITIVE ANALYSIS11LEGAL STRUCTURE13MANAGEMENT EXPERTISE13SUPPORT PERSONNEL15FINANCIAL INFORMATION15SUMMARY20TABLES AND EXHIBITS
Table 1- Population Growth6Table 2- Cost of Living6Exhibit 1- Competitive Analysis14Exhibit 2- Monthly Cost of Living - Joe Smith16Exhibit 3- One Year Cash Flow Projection17
The purpose of this business plan is to support a request for a $50,000, five-year
bank loan to purchase equipment and inventory as part of the financing for a start-up sole
proprietorship, Joe’s Quality Painting. The business will be owned by Joe Smith and will
thbe located at 4358 W. 224 Avenue, Wood City, CA 93XXX. The owner will provide a
minimum of $25,000 in initial equity.
The business will offer professional quality painting, stucco repair, sandblasting,
drywall repair, textured coatings, waterblasting, and waterproofing for residential and
commercial buildings. Based on the financial and competitive analysis presented in this
plan, Joe’s Quality Painting will be successful. The cash flow projection, Exhibit 3, One-
Year Cash Flow Projection, indicates break-even including owner’s draw of $28,080 for the first year of operations.
It is anticipated that Joe’s Quality Painting will become well known in the Wood
City area within two years and will become known throughout the Central Valley in five
years. Joe’s Quality Painting’s distinctive logo, its reputation for quality service and only
the highest quality products, plus its slogan, ―Joe’s Quality Painting—don’t settle for
less!‖ will provide a distinctive competitive edge. The owner, Joe Smith, has founded two highly successful contractor businesses in the Wood City area. The owner holds an
undergraduate business degree from the School of Entrepreneurship, California State
University, Wood City.
Joe’s Quality Painting will be a start-up painting contractor business serving the Wood City and surrounding areas. Initially, Joe’s Quality Painting will work out of
thleased space at 4358 W. 224 Avenue. Joe’s Quality Painting plans to begin operations
st on April 1of the year 20XX.
Joe’s Quality Painting will be a sole proprietorship, owned by Joe Smith. Joe Smith has been in the residential and commercial painting business for approximately ten
years. Additionally, Joe has first hand experience founding and operating start-up
businesses. Joe Smith has started two successful contracting businesses in the Wood City
area that have broken even after only four to six months. His first business venture, a
residential painting service, became one of the most recognized names in residential
painting in the area of Groves, Texas.
Joe’s Quality Painting will offer high quality interior and exterior painting for
residential, commercial, and industrial properties. Due to the continuous growth in
population and construction in the Wood City area, Joe’s Quality Painting will be highly
successful and enjoy continuous growth. Joe’s Quality Painting will go from the
operation of a single crew of three employees, to multiple crews within two years.
Joe’s Quality Painting’s predicted success and growth is based upon extensive market research demonstrating the explosive growth trend in construction in the Wood
City area. This trend, along with the limited competition in the Wood City area, offers a
promising future for Joe’s Quality Painting.
Americans spent an estimated $119.1 billion in home improvements and repairs in
1996, according to the U.S. Census Bureau. Affluent Americans (those with incomes of
$100,000 or more) spend $31 billion a year on home improvements.(Source: Yankelovich
Partners) According to the U.S. Census Bureau, 78 percent of all home remodeling is done by professional sub-contractors. According to a survey conducted by Getting To
Know You, the largest homebuyer welcoming program in North America, 79.4% of
respondents plan to make major home improvements within the year. Among families
with children, 86.8% cited a need to remodel.
Market analysis is very favorable toward the painting and overall construction and remodeling business in the Wood City area. Population, housing and commercial
construction demands make Wood City an ideal location for this type of business.
California's Central Valley is one of the nation's fastest growing regions as well as one of
the more rapidly developing regions in the state. Wood City, with an historic growth of
66% since 1980, has been identified as one of the top ten expansion cities in the nation.
The future will be defined by even more rapid expansion because 67% growth is
projected through 2005 and 71% to 2020, as shown in Table 1. In addition, new home
construction is predicted to grow at about 3.4 percent, opening up many opportunities for
painting contractors. (Wood City Development Office) At least two factors are
contributing to the Central Valley's faster growth. First, the Valley's population is
growing faster than the state's during the current decade as homebuyers seek affordable
housing in this location. This growing population needs a range of goods and services
and that will fuel the regional economy. Second, businesses continue to relocate in this
location because of lower costs, favorable business climate and the overall positive
quality of life. Much of this growth is "spillover" from California's costly and congested
coastal urban regions.
TABLE 1—Population growth
1995 1998 2005 2020 Actual Actual Projection Projection
Wood City 109,500 114,349 152,726 214,097
Source: Wood City Development Office
In summary, the general industry analysis shows that Wood City is expected to
experience substantial population, housing and commercial construction growth, which
makes it a prime location for a painting contractor business. Wood City’s cost of living
is among the lowest in the state of California. (American Chamber of Commerce) Which
is beneficial because the target market for this type of service is middle to upper income
families. Table 2, ACCRA Cost of Living Index, 1997, provides informative statistics
about the cost of living in the Wood City area.
ACCRA COST OF LIVING INDEX, 1997
Wood City 107.5
San Sacro 103.7
Angel City 117.6
Franklin Bay 174.6
SOURCE: American Chamber of
Commerce Research Association
In five years, Joe’s Quality Painting will be an area leader in the painting industry in the Wood City area, and plans will be developed and implemented to serve
The main vision trigger will be the slogan: ―Joe’s Quality Painting—Don’t settle
for less!‖ The vision trigger will emphasize the overall high level of quality provided by
Joe’s Quality Painting service. This high level of quality will include the best painting
products, attention to detail, and total commitment to complete customer satisfaction.
Joe’s Quality Painting’s mission statement is presented below:
We, the employees and owner of Joe’s Quality Painting, make the
following pledge to our valued customers:
We pledge to provide a professional quality painting service to
both our residential and commercial customers in the Wood City area.
We pledge to go the extra mile in order to ensure your complete
We pledge to use only paint that is of the highest quality and
environmentally safe, in order to better serve you and the community.
We also pledge to be open and responsive to your comments and
Joe’s Quality Painting plans on doubling in size in the next three years. The business objectives for the next three years are:
1. Owner draw of $28,080 by the end of Year 1.
2. Cash break-even by the end of the first year.
3. Owner draw of $33,000 by the end of Year 2.
The business operations of Joe’s Quality Painting will be described using the main functions of the business: marketing, competitive analysis, legal structure,
management expertise, support personnel, and financial information.
Remodel paint jobs
Water proofing decks
Sand blasting, water blasting
Remodel paint jobs
Joe’s Quality Painting will perform these services on commercial properties as well as
Painting and Related Services
Joe’s Quality Painting will perform the following services. New construction services will include painting interiors, exteriors, decks as well as waterproofing and
applying textured coats. Remodel jobs will include matching the new stucco with the old
stucco to insure that the colors match perfectly. Repair and preparation work that is
needed will be completed as well. Water proofing will be done for apartment decks,
garages, and private homes. Water blasting and sand blasting will be performed to clean
areas that are going to be painted. Drywall preparation and texturing will also be
Joe’s Quality Painting will base its price on the industry average. The price of the
paint will depend on the job. Exterior paint will cost between $15.00 to $25.00 a gallon. Each gallon will cover between 200 and 250 square feet of surface, a wall that is ten feet
high by twenty feet long. Interior paint will cost between $15.00 to $20.00 a gallon.
Because interior surfaces are smoother, the area covered will be between 300 and 350 square feet of surface. This means that one-gallon will cover a wall that is eight feet by thirty-eight feet. Waterproofing sealant costs between $20.00 and $35.00 per gallon and will cover only 150 square feet, an area of about ten by fifteen feet. Wood deck sealant costs between $15.00 to $30.00 a gallon and covers between 200 to 250 square feet. Drywall textured coating will cover between 150 to 170 square feet per gallon. This product costs from $5.00 to $10.00 a bag for the mixture. Stucco repair will cost between $50 to $100 depending on the size of the repair.
The price per square foot to repaint an existing interior is $0.35; new construction interior paiting is $0.40. The price per square foot for exterior painting is $0.40 for either repaint work or new construction. Waterproofing cement decks and garages is $0.55 per square foot. Waterproofing a deck will cost $0.35 per square foot.
The business will be located in Wood City just three blocks from the freeway. This will provide access to any location in Wood City in less than half an hour. The location will also provide access to three nearby cities: Firestorm, Woodranches, and Big City. The longest commute needed to reach any location in these three cities would be one hour.