every shingle time!
description
Transcript of every shingle time!
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426 13st South Lehtbridge, AB T1K 7S5 (403) 381-Ruff
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My Request
$15,000 business start-up loan
$5,000 equity (from Jensen family)
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Why am I here today?
Who is Robert Jensen?• Family man• Master roofer • Entrepreneur
Is the reason clear now?
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Team JensenTeam Jensen
Robby Jensen Sr. (Owner)
Merley Jensen (Wife)
Bobby Jensen Jr. (Owners son)
Lester Jensen (Shingle)
Sharen Quim (Sister)
Layne Quim (Brother in-law)
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Day in the life of Robby Jensen
• Starts the prior day Organization of the next day’s job
- Based on new or re-roof
• The roofers best friend
• Arrive punctually at 8 AM
• On the roofRemove old shinglesAssess quality of roof surface
• Preparation of the new roof
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Eave ProtectionShinglesUnderlayEdge TreatmentValley TreatmentFlashingVentilation
Critical for roof performance, this 3 foot wide layer of waterproof material is placed under the shingles.
The most visible portion, shingles act as the primary defense against wind, rain, and the elements.
Provides extra protection around all edges of the roof to protect against wind-driven rain.
Typically made of vinyl or metal, the edge treatment allows for more efficient water shedding.
Protects against snow and ice build-up damage, which is more prevalent in valleys on roofs.
Protects against seepage in the most high-risk areas, such as the base of chimneys or vents.
Allows for greater air circulation and prevents seepage, cracking, and peeling of shingles.
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As the day turns…
• Laying of the new shingle
• Clean up! Clean up! Clean up!
• Service and ensure prior clients are happy
• Prospecting for new work every minute of the day
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The real reason I am here
To provide quality, reliability and honesty every time!
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Goals and Objectives
Broad Goals:
• Quality, Workmanship, Price, Reputation
Short-Term Objectives:
• 100 roofs in year 1, up to 160 by year 5
• Profitable by year 2
• Remain financially sound
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Business Environment
• Strong economy
• Favorable lending rates
• High rate of housing starts
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Organizational Structure
• Self Employed Roofing Contractor
• Private Contracts Mostly Re-Roofing
Robert JensenOwner/Roofer
Roofing Labourer Roofing Labourer(p/t and/or temporary if needed)
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Organizational Structure
• Roofing Sub-Contractor
• General Contractor New Roof Contracts
General Contractor
Robert JensenOwner/Roofer
Roofing LabourerRoofing Labourer
(p/t and/or temporary if needed)
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Site Plan
• Home Residence
Area B – Business Office SpaceArea A -
Overnight Truck Parking
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CAPITAL BUDGETTools:
Compressor $500
Power Hammer 400
Ladder 400
Roofing Hatchets 150
Hoist 500
Saw 200
Miscellaneous 400
Tarps 250
Computer Equipment 3,000
Office Equipment 1,000
Total Capital Costs
$6,800
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OPERATING EXPENSES Banking Fees 300
Bookkeeping Services 800
Cell Phone 2,140
Vehicle Insurance 900
Insurance 1,800
Business License 247
WCB Premiums 1,205
EI Payments 353
CPP Payments 2,500
Holiday Pay 516
Capital Cost Allowance 1,253
Fax Machine 360
Vehicle Lease Costs 3,900
Vehicle Operating Costs 4,200
Marketing Expenses 12,658
Interest on Long term Debt 826
Total Expenses 34,385
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WORKING CAPITAL MANAGEMENT
Jan 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2006
Cash 10,000 10,000 10,000 10,000 10,000
Accounts Receivable - 12,165 - - 17,379
Inventory 500 500 500 500 500
Accounts Payable - 12,240 - - 16,057
Total 10,500 11,426 10,500 10,500 11,822
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Supply Analysis
• Main Supplier Home Depot– convenient location in Lethbridge– one-stop supply house – all inputs available at
one location– guaranteed low prices – commercial credit services– ease of ordering – job-site delivery of supplies
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Marketing Plan
• Shingles
• Service Warranty
• Competitive Pricing
• Promotion and Advertising
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Shingles
•15, 20, 25 and 30 years
• Manufacturer coverage
• Patented adhesive “instabond”
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Service
Jensen Roofing has set out a strict set of guidelines to ensure roofing work is completed with the utmost care and precision.
Jensen Roofing clients can expect:
• Free, no obligation estimates
• Evaluation of roof deck and recommend repairs
• Calculate proper ventilation for attics
• Offer a wide variety of shingles
• Perform work to exceed industry requirements
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Pricing
• Price sensitive market
• Competitive
• Quality not compromised
Company Price Estimate Warranty Code Timeliness Follow up
Jensen Roofing $1984.00 Free 10/25 years** Yes 1.5 days Yes ***
Charles Hill $2149.00 Free 25 years Yes 1.5 days No
Advantage Roofing $2362.00 Free 25 years Yes 2 days No
Certified Roofing $1950.00 $75.00 * 25 years Yes 3 days No
Contractor Bidding:
• year 1: Cost + 1%
• year 2: Cost + 3%
• year 3 and on: Cost + 5%
Residential Bidding:
• year 1: Cost + 5%
• year 2 and on: Cost + 10%
* Amount is deductible against the project cost
** 10 years relates to the warranty on workmanship
*** Performed 3-6 months following the completion
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Promotion and Advertising
• Yellow pages
• Spirit of Lethbridge (Trade show)
• Home Builders Association
• Door to Door
• Magnets
• Newspaper
• Company Logo
• Internet www.Jensenroofing.com
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Place
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Re-roof Projects
New Projects
North
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Competitors
• Similar businesses in the market
• Large competitor
• Growth
• Differentiation
• Cross selling
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Key Personnel
Robert Jensen• Extensive on-the-job experience
• Proven record of quality workmanship
• Completion of entrepreneurship course
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Additional Staff
Labourers• 1 full-time, year round
• 1 full-time, summer student
• HRSDC wage subsidy
• Training on-site
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Personnel Costs
Salary/Wages:• Robert Jensen – $34,000 up to $60,000 annual salary• Full-time Labourer - $12/hour• Summer Student - $10/hour
2006 2007 2008 2009 2010
$46,996 $75,066 $85,075 $86,776 $88,511
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Personnel Costs
Salary/Wages:• Robert Jensen – $34,000 up to $60,000 annual salary• Full-time Labourer - $12/hour• Summer Student - $10/hour
2006 2007 2008 2009 2010
$46,996 $75,066 $85,075 $86,776 $88,511
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Personnel Costs
Employer Remittances:• Holiday Pay – 4% • CPP and EI – 7.68% combined • WCB Premiums – 9.33%
Total Personnel Costs:
2006 2007 2008 2009 2010
$4,574 $6,994 $7,678 $7,794 $7,913
2006 2007 2008 2009 2010
$51,568 $82,059 $92,752 $94,571 $96,423
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Financial Analysis•Capacity
•Utilization
•Sales
•Cost of Goods Sold
•Other Costs
•Financial Statements
•Financing Requirements
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Capacity
-25°C 8°C 15°C 22°C
X X X
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Utilization
• Takes time to build relationships
• Referrals build with time
• Team efficiency increases
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Sales Projections
Available Days 161 161 161 161 161
2006 2007 2008 2009 2010
Market Size 1,715 1,715 1,715 1,715 1,715
# Jobs 104 145 161 161 161
Utilization 65% 90% 100% 100% 100%
Market Penetration
6.1% 8.5% 9.4% 9.4% 9.4%
Annual New Home Construction
800
Annual Re-Roof Requirements
915
TOTAL MARKET SIZE 1,715
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Cost of Goods SoldNEW ROOF JOBS Unit Price Quantity Price/ House
Materials
Shingles 0.47 1,500 ft2 708.75
Waterproofing 1.23 300 369.23
Sheathing 0.04 1,500 ft2 60.00
Venting 35.00 4.33 151.67
Supplies 128.96
Labour
Experienced 0.30 1,500 ft2 450.00
Labourer 0.09 1,500 ft2 138.46
Student 0.06 1,500 ft2 96.92
Delivery Costs - Shingles 1.00 47 bundles 47.00
Total Per New Roof Job $2,150.99
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Cost of Goods SoldRE-ROOF JOBS Unit Price Quantity Price/ House
Materials
Shingles 0.47 1,300 ft2 614.25
Waterproofing 1.23 260 320.00
Sheathing 0.04 1,300 ft2 52.00
Venting 35.00 4.33 151.67
Supplies 220.58
Labour
Experienced 0.30 1,300 ft2 390.00
Labourer 0.09 1,300 ft2 120.00
Student 0.06 1,300 ft2 84.00
Delivery Costs - Shingles 1.00 41 bundles 40.63
Disposal Costs 125 1 bin 125.00
Total Per Re-Roof Job 2,083.13
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Other Costs
• Banking fees
• Cell phone
• Business insurance
• Loan interest payments
• Bookkeeping services
• Vehicle insurance
• Vehicle lease costs
• Vehicle operating costs
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Financial Statements
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Returns to Mr. Jensen
2006 2007 2008 2009 2010
Labour / Salary
34,084 50,637 57,388 58,536 59,707
Reinvestment 34,084 - - - -
Net Flows - 50,637 57,388 58,536 59,707
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Mitigating Risks
• Competitive pricing and quotes
• Quality of workmanship
• Networking ability
• Risk of personal injury
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Market Risks
• Poor weather conditions
• New house construction
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In Closing…
• Requesting $15,000 business start-up loan• Requesting your support in helping my family achieve its dream
• Strong business plan
• Business with great potential