Business Plan

CRMT Industrial Services, Inc

“New Engineering Solutions to the Industry”

CRMT Industrial Services, Inc“New Engineering Solutions to the Industry”

1. EXECUTIVE SUMMARY

CRMT Industrial Services, Inc. will be formed as a consulting and training firm specializing in welding engineering services.

A home office in Long Island City, NY will be established the first year of operations to reduce start up costs.

The founders of the firm are professional engineers and managers with more than 25 years of progressive and responsible experience.

Sales Projections

YEAR SALES ($) PROFITS ($) SALES / PROFITS (%)

2008 $684,000 $54,720 8.00%

2009 $889,200 $80,028 9.00%

2010 $1,368,000 $150,480 11.00%

Highlights

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

2008 2009 2010

Sales Expenses Net Profit

Quality System

Quality system implementation

Leadership and management review

Resource management Design and development

implementation Supplier management Service Provision planning

and control Document and record control

Objectives and Goals Sales of $ 684,000 the first year,

approaching $ 1,368,000 at the end of the three years.

Achieve New York Certification to be listed in the Directory of Certified Minority and Women-Owned

Become one of the contractors of inspection task of MTA projects

Have an impeccable reputation in the engineering, inspection, training and materials testing industry in New York City.

Objectives and Goals Achieve 100% of market value at the end

of the three years of operations. Increase gross margin to 70% by the

third year of operations. Implement a quality management system

under ISO 9000 (2nd year). Increase its installed capacity to 50% at

3rd year. Increase its labor positions to 50 % at 3rd

year Establish the level of the laboratory’s

performance at 2nd year Ensure that all personnel are trained to a

level of familiarity with the quality management system appropriate to the individual’s degree of responsibility.

Mission

CRMT Industrial Services, Inc. is a materials solutions company that provides superior value in testing,

consulting, training, problem solving, and design & engineering services. CRMT incorporates state of the art

technology and equipment to provide highly specialized testing procedures and training. It is dedicated to serving

the construction sector.

Market Opportunity

Challenge: Manufacturing“The NAM believes America’s future depends on a skilled, productive and

technically trained workforce. Every citizen needs to know that the winners inthe global marketplace will be companies with the best workers.”

Dream !t Do!t NAM CampaignJohn Engler, President, NAM

“If we don’t address the skills issue, our economy will face a serious decline.”Jerry Jasinowski, President, The Manufacturing Institute

“81% of manufacturers polled by NAM/Deloitte report they can’t find the skilledworkers to keep their businesses competitive in a global 21st century economy.”

Phyllis Eisen, Vice President, The Manufacturing Institute

“NAM predicts that manufacturers will need as many as 10 million new skilledworkers by 2020, in part to replace aging boomers who make up a large part of

manufacturing jobs today.”Wall Street Journal

Challenge: Welding Industry Manufacturing, Construction and Mining is a $3 trillion industry,

1/3 US GDP. Welding is a $34.1 billion industry. Labor represented more than 70% of welding-relate

expenditures, $22.4 billion in 2000. There are more than 500,000 welders working in US. The average age of welders in today’s workforce is 54. It is estimated that there will be a shortage of more than 200,000

welders by 2010. This year, 50,000 welders will leave the industry while only

25,000 students begin their welding education.

Financial DataGROSS OFFERING $750,000

LESS ESTIMATED OFFERING EXPENSES AND COMMISSIONS 0

NET PROCEEDS $750,000

PLANNED USES

CAPITAL EXPENDITURES

Computer equipment $ 10,000

Purchased software y licenses $5,000

Furniture and Fixtures $ 20,000

Remodeling and Decorating $ 30,000

Welding and Testing Equipment $ 450,000

Total proceeds for capital expenditures $ 515,000

WORKING CAPITAL

Salaries and wages $ 100,000

Expenses $ 50,000

Advertising $ 20,000

Reserve $ 65,000

Total proceeds for working capital and reserve $ 235,000

Total Uses $750,000

2. COMPANY

3314 Queen Boulevard, Long Island City, NY 11106-1306.

Distribution of Areas

Distribution of Areas

Company Ownership

CRMT Industrial Services will be created as a limited-liability company. The company will be privately owned by Daniela Romasan, Liliana Melo, Craig Cusanelli, and Amin Taurani.

Startup Summary

Its start-up expenses amount to $25,000, which allows for initial legal expenses, licenses, permits, stationary, specialty software, office equipment, and furniture.

Initial investment of $750,000 will be placed in the company accounts to purchase new equipment

Daniela Romasan, Liliana Melo, Craig Cusanelli, and Amin Taurani will contribute $25,000 each one towards the overall start-up costs.

3. ENVIRONMENTAL AND INDUSTRY ANALYSIS

Welding industry and engineering consulting services is a large industry not only in New York City, but also in entire United States.

Establishments 231

dollar value of business done

3,799,582

annual payroll 794,067

Employees 16,128.

Welding Status Welding is viewed as “dark & dirty” The critical role of welding is not fully appreciated in all corporate

and government offices. High schools phasing out welding programs and discouraging

careers despite annual earnings potential of $30,000 - $60,000. 1/2 of US industries report difficulties locating qualified welders. The US infrastructure is aging. Shortage “barrier” resulting in fewer competitive welding

techniques, less productivity and outsourcing to foreign markets. Natural disaster prone areas have immediate need for welders to

quickly rebuild homes and cities. The typical salary for a Pipe Fitter in New York City is $55,027.

Welding Future Advancing manufacturing technology creates more uses for

welding in the workplace and is expanding opportunities. Increased emphasis on certification, which ensures quality. Computer skills are required for welding professionals

responsible for programming welding robots, lasers, and systems.

New materials are creating a greater need for a highly educated and innovative welder workforce.

Automation reinforces the need for skilled machine operators. US industries face foreign competition and require competitive

welding techniques and skilled operators to stay viable. Skilled welders are needed to maintain the Country’s aging

infrastructure

4. SERVICE DESCRIPTION

Engineering Consulting NDT Services - Laboratory

Welding Equipment RentalWelding Training – Welding

School

Services:

CRMT SERVICE LINES

Equipment Rental Material Testing Laboratory

Engineering Consulting in Quality and Welding

Welding Equipment

Non Destructive Equipment

School of Welding

Instructions and Classes - SeminariesTesting

Qualification

5. MARKETING RESEARCH AND EVALUATION

CRMT will focus on traditional engineering consulting, material testing and rental welder equipment contracts.

Segmentation

WELDING AREA IN NYC

TYPE # Business

Welding Contractors 231

Welding Services 174

Welding Repairs 20

Welding Inspections and Consultants

21

Welding Equipment Rental

11

REVENUES # Bus.

Less than $100,000 13

$100,000 - $499,999 17

$500,000 - $999,999 6

$1,000,000 - $4,999,999

8

$5,000,000 and over 2

TOTAL 46

Census 2002 Classification of minority and women owned business

Business Analysis

10%

53%

2% 7%

19%

7%2%

Business Services Engineering ServicesEquipment Rental and Leasing Management Consulting ServicesManagement Services Surveying ServicesTesting Laboratories

Advertising

The services will be advertising in various newspapers such as Daily News, New York Times and in the free newspapers.

Also, in technical magazines issued by AWS, ANSN, AISI, and others

Advertising

Welding School services will be advertised in Radio and TV at the end of the first year.

Flyers and wed site. Public Relations by

participation on national technical events of Welding.

Flyer Designed

CRMT INDUSTRIAL SERVICES, Inc.

CRMT provides specialized engineering consulting, testing services, and operative welding training applied in heavy industrial, shipbuilding, steel building erection, pipe welding and fabrication

Go to CRMT website at www.crmtindustrial.com for more information or call us at 1-800 WELDING.

“N ew Engineer ing Solutions to the I ndustr y”

Logos

CORPORATIVE LOGO WELDING LOGO

It will be used for formal communications

It will be used for Welding Training (Manuals) and

Advertising

6. OPERATIONS PLAN

General Operating Hours: CRMT Industrial Services, Inc. intends to operate rental, consulting and testing services Monday thru Friday from 9 am to 5 pm. The Welding School will be operated Monday thru Friday from 7 am to 10 pm and Saturday from 9 am to 1 pm. CTMT will be operational year round.

Human Resources Mrs. Liliana Melo will work

as Director Manager as well as School Welding Manager.

Miss Daniela Romasan will work as Administrative Manager.

Mr. Craig Cusanelli will work as Finance Manager.

Mr.Amin Taurani will work as Sales Manager.

Mr. Jonny Olarte will work as NDT Manager.

Selection and Recruitment

In addition, Miss Daniela Romasan will select and recruit new personnel to work on these following job positions: (1) sales person, (1) Bookkeeping, (1) General Secretary, (1) Electrical Technician, (2) Inspectors, and (1) Laboratory Technician during November, 2007.

Work Environment

CRMT Industrial Services, Inc. provides employee benefits, job and schedule flexibility, interesting work, and involvement of our employees in an empowered environment of continual improvement.

CRMT Industrial Services, Inc. engenders total participation by involving employees in internal audit and improvement activities.

The Administrative Manager has overall responsibility for identifying, implementing and maintaining effective employee benefit and workforce involvement programs.

7. MANAGEMENT TEAM

Monthly Salary Expenses

JOB POSITION AMOUNT SALARY TOTAL

Sales person 1 $ 4,000 $ 4,000

Bookkeeping 1 $ 3,000 $ 3,000

General Secretary 1 $ 2,600 $ 2,600

Electrical Technician 1 $ 3,500 $ 3,500

Inspector 2 $ 5,000 $ 10,000

TOTAL SALARY EXPENSES $ 23,100

Organizational Chart

General ManagerGeneral Manager

Sales / Customer S Manager

Sales / Customer S Manager

NDT Laboratory Manager

NDT Laboratory Manager

Welding School Manager

Welding School Manager

Internal ControlInternal ControlManagement Committee

Management Committee

Consulting Manager

Consulting Manager

Finance ManagerFinance ManagerAdministrative /

HR ManagerAdministrative /

HR Manager

MarketingMarketing

Rental ServicesRental Services

8. TIMELINE

JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY

On time!

Planning

Org. Legal

Financial

Dec. / Rem

Fixtures / Eq

Installation

Marketing

Personnel

Q/A

Adjusting

Open doors

9. CRITICAL RISK AND ASSUMPTIONS Liability for injury or death of

employees or other people on CRMT premises.

Liability for injuries or damage caused by services CRMT makes.

Destruction or theft of property, equipment, machinery, vehicles or other assets.

Loss of net income through lost sales or extraordinary expenses.

Risk. Out of cash before orders

secured Competition price cutting Costs in excess of estimates Unmet schedule(s) Difficulties with credit Lots of orders and NO cash Unfavorable industry trends Sales projections not achieved Long lead times in

procurement Unexpected development

costs

Management of Risks – Assumptions (Finance Risks)

Purchase adequate insurance to transfer financial responsibility for losses to CRMT insurer. Obtain enough insurance to cover all risks.

Know the Insurance Policies: review the policies with the independent insurance agent and, if necessary, purchase additional coverage to ensure that the business is fully protected.

Management of Risks – Assumptions (Transfer Risks)

Lease Business Property and Equipment: CRMT may be able to transfer

Property and liability risks in whole or in part to the lessor.

Transfer Risk to the Customer.

Hire the Right Subcontractors.

Decline Risky Business.

Management of Risks – Assumptions (Control Risks)

Take a close look at how CRMT does business. Assess equipment, facilities, employees, processes, and services.

Take advantage of the excellent loss control services provided by many insurers.

10. BENEFITS TO COMMUNITYEmployee Benefits

Provide our employees with opportunities to use their professional skills

Provide CRMT employees with opportunities to use their professional skills outside their day-to-day environment.

Link pro bono work to the Continuing Professional Development program.

Manage the administration of the pro bono program to employees.

Employee Benefits

Strengthen employees’ leadership and motivation.

Make employees participate in the growth of the company.

Build new careers and opportunities for CRMT employees and suppliers.

Fortify supplier chain by special program of training in quality assurance.

Community Benefits

Provide internships to students attending surrounding schools.

Using environment friendly services.

Offering job placement Involvement in matters that affect

community businesses. Develop the understanding of key

social issues in your local community by scholarships.

Community Benefits Build new business contacts locally

and regionally. Work collaboratively with other firms

that need a range of professional skills and expertise to strengthen the technology and knowledge applied in welding industry.

Be another alternative of technical education in New York City.

Develop new opportunities in young people by training and special programs.

Create economic opportunity to the community as well as New York City.

10. Financial Plan

FINANCIAL OBJETIVES

2008 2009 2010

Sales 684,000 889,200 1,368,000

Operating Expenses

478,800 622,440 957,600

Income before Tax

205,200 266,760 410,400

Taxes (30%) 69,768 90,698 139,536

Net Income after Taxes

135,432 176,062 270,864

Objective Needs

A loan of $750,000 at Prime plus 2%. This loan to be used for current near term expenses including inventory, rent and payroll. It will be repaid in five years.

A line of credit of $50,000 to take advantage of discounts available, avoid associated penalties, and expand into high profit areas requiring positive cash flow.

Financial Statements

BALANCE SHEET

CASH FLOW

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