Business Plan

Carlos Islas Jesica Islas Partners Islas 314 Inc 73 Jackson St Suite 3N Yonkers, NY 10701 347-645-9001 914-751-8342 [email protected] I. Table of Contents

I. Table of Contents...... 2

II. Executive Summary...... 3

III.General Company Description...... 4

IV. Products and Services...... 6

V. Marketing Plan...... 7

VI. Management and Organization...... 10

VII.Personal Financial Statement...... 11

VIII.Startup Expenses and Capitalization...... 13

IX. Appendices...... 15 II. Executive Summary

Islas 314 Inc is a construction company. Our product or service will be remodeling houses or business, fixing small damages in apartments or elsewhere, and constructing houses or apartments from scratch. Our customers will basically be all homeowners, or business owners or even landlords. In a near future we are planning to apply to get into the city system, so we could be one of their construction contacts, and have periodical jobs with the public business. This will help us to maintain a good reputation among other private clients. The owners are Mr. Carlos Islas and his daughter Ms. Jesica Islas, the both share the same amount of responsibilities in different aspects of the business. Due to the seniority the one that has more power in the company is Mr. Carlos Islas, but he is not able to take financial decisions without having Ms. Islas approval. Every year the numbers of small construction companies are declining, but this business is planning to open and stay in the market for a long time. Our job will satisfy our clients and the demand will increase.

Sincerely,

Carlos Islas Jesica Islas General Company Description

Islas 314 Inc. is a construction company. We can fix any problems or start a whole house from the beginning. Whether the problem is electricity, plumbing, hardwood, remodeling or constructing something new, our employees will be able to help and satisfy our customers’ needs. As a starting construction company our main focus will be customer satisfaction allowing us to build and maintain a strong reputation among our clients and competitors. Our company such as other companies has goals and objectives that we will be able to meet in a reasonable period of time. As it is stated above, our main goal in this first year is to build a good reputation, in that way we will have loyal clients that will be happy to do business with us. In order to do so our employees besides being the ones doing the job are also going to serve as counselors. They are going to advice our clients into what is going to be best for them. Sometimes is hard to choose between so many finishing touches and/or materials to use, and our staff will be more than happy to use their knowledge to help our customers in choosing the option that best suits their needs. Our objective is to have an agreement with Home Depot which have been our major supplier. This will cause our expenditures to go down, so we will be able to offer even better prices to our clients. Seeing our customers happy is what we are all about. Our service will be market basically to everybody that needs it. It is going to be focused in home owners, landlords, and business owners. The service industry is the one that has grown tremendously in the past years. Islas 314 Inc. is both the service industry as well as the manufacturing industry. The service is seen because we provide our customers with advices and the knowledge for choosing the right option, and for choosing the right materials, as well as the knowledge that we use to construct the final product. The manufacturing is shown in the process of building the required job. The manufacturing industry has declined over the years, but construction is still indispensable in our everyday life. I believe that the service industry will be still growing and although it seems that the manufacturing industry will keep declining, the construction part will still be a vital part, especially in the city. The strengths that we have are qualified and responsible employees. That has the knowledge of new techniques and the cheapest techniques that are available in the industry. Other companies are looking to make a profit, therefore they are going to be looking to get contractor that do the job right as well as have the inexpensive prices. That will enable us to have more clienteles. Our major competitive will be the amount of employees that we have, since we are just starting we don’t have that much staff on our team, so it will take a little time to organize the appointments and the jobs that need to be done. We bring our experience; our employees have work in the construction industry for more than 5 years. They have experience and knowledge of the field, and are more than happy to bring it to this new company. Islas 314 Inc. is a partnership. We have selected this form of business because it was easy to start up, and we did not need that much capital, besides is much easier to make decisions between two people that a group of them. Products and Services

Our service is going to be in a very competitive market, but since is very competitive customers are always looking for their best option. A very important advantage that Islas 314 Inc has is the warranty that we offer. Usually we will offer a 5 to 10 years warranty depending on the type of work that we will be doing. We do not charge extra for this warranties because we want our clients to feel safe with our work, and feel like there is no one that could do a better job than the one we will do. Islas 314 Inc has uniqueness like no other. We have the equipment necessary to do the work done in the right way, which means the way our clients will preferred it. The process of contacting our services is not going to be a hassle. After you reach us (mail, fax, or phone number) and set an appointment, our expertise will go and check what needs to be done, within 3 days you will get an estimate. The estimate will clearly specify everything that needs to be done, the price of the work, as well as the days in which we are going to be able to start. Also it will include the approximate length of the job and the form of payment. Upon the payments the customers are going to be asked to sign the receipts, and to be checking the job to see if they want to make any last minute changes, so we will be able to do them while there is time. Our prices will be based on the degree of work and the length of the job, also customers will be provided with two different estimates. One in which include the materials, and the other one without the materials, just in case the customer prefers buying them themselves. Marketing Plan

Our office is located in The City of Yonkers. But our work is done mainly through out New York City. There are not a lot of construction companies around our area, but there is always somebody able to do the job that is required. Now, with somebody from the same neighborhood, customers will feel more secure in doing business with us, and instead of contracting one single person they will contract a company that will do a better job for about the same amount of money. Construction companies are all around the state, they specialize either in electricity or plumbing, hardwood or any other area. Our advantage is that we know how to do everything and do every single aspect of the construction industry. So the customers won’t have to be shopping for companies that all together will give them the final product, but for just a company in which they can trust, and know that everything that needs to be done is going to be done and in the right way. Networking is going to be an essential part of our company. That is how we are planning to get as much customers as possible. The advantage of being a construction company is that most of the people see the final product, and that is how they get to know about us. When they see a really good job done in their friends, family or neighbors houses, they will get exited and start wanting to do something new for them selves too. That is how networking takes a big role in our marketing plan. The total size of our market is very big, it is estimated that 250,000 people are working for this industry only in the city of New York. Construction work is project-based, with workers and companies migrating from one job to the next. Most construction companies are trade-specific contractors or employers, such as electrical, plumbing, masonry, or roofing. General contractors serve as organizing agents, working with engineers and architects and coordinating the entire array of trade contractors. Most residential contractors are very small businesses, averaging 4 to 10 employees, while most non- residential contractors are only slightly larger, averaging 15 to 25 people. The New York City construction industry has still not fully recovered from the economic downturn in the early part of this decade. Payroll employment in the city's construction companies dropped more than 10 percent from the first half of 2001 to the low point reached at the beginning of 2004. Over the past two years, payroll employment has recovered about 3,000 out of the 13,000 jobs lost between the peak and the trough points (see Figure 1). However, the current payroll employment level of 114,000 is above where the construction industry stood for most of the late 1990s. Although the construction labor force have being decreasing, the demand for more construction even small ones are out there everyday. Most of the time tenants need repairs, requiring the landlords to hire professionals to handle the jobs for them. Also companies need more renovations, just like the landlords they also need to keep their business according to the regulations to avoid violations. Therefore construction jobs are going to be available. Some of the barriers that we will face while entering this market with our new company will be:  High production costs

 High marketing costs

 Consumer acceptance and brand recognition

 Training and skills

We will overcome these barriers by having a good flow chart. Since the production costs will be high due to the materials, we will ask the customers to give a certain percentage before hand, so we will be able to start the job in the required time. The marketing cost depends on the places in which we will be marketing. Advertising expenses are considered as investment, because that is how we are going to get our customers to get to know us and trust us; therefore we will gain our consumer acceptance and they will recognize our company as a trustworthy one. Before we hire the employees, they will have to go through a training process, so we are going to be able to know what skills they possess and which skills do they lack. Management and Organization

The day-to-day business will be managed by both partners. Carlos Islas will be in charge of managing the people and their respective schedules, while Jesica Islas will be in charge of keeping all the books up to date, including the process of getting our customers to sign the contracts. Mr. Islas task will mainly be to set the appointments, and personally go to the jobs and see that everything is going the right way, as well as going to the new customers and take notes to see what is it that needs to be done, and go to the suppliers to buy the required materials. On the other hand Ms. Islas will be in charge of elaborating and delivering the estimates, or the construction plans (if necessary) to the customers, and keep track of all the expenditures as well as the receivables and payables. Also, keep all the books up to date, and report to the former CPA. Personal Financial Statements

Personal Financial Statement of: Carlos Islas as of: 02/14/07

Assets Amount in Dollars Cash - checking accounts $60,000 Cash - savings accounts 15,000 Certificates of deposit - Securities - stocks / bonds / mutual funds 1,000 Notes & contracts receivable 500 Life insurance (cash surrender value) - Personal property (autos, jewelry, etc.) 15,000 Retirement Funds (eg. IRAs, 401k) - Real estate (market value) 150,000 Total Assets $ 241,500

Liabilities Amount in Dollars Current Debt (Credit cards, Accounts) $ 6,000 Notes payable (describe below) - Taxes payable - Real estate mortgages (describe) 50,000 Total Liabilities $ 56,000

Net Worth $ 185,500

Signature: Date: 02/14/07 Personal Financial Statement of: Jesica Islas as of: 02/14/07

Assets Amount in Dollars Cash - checking accounts $55,000 Cash - savings accounts 20,000 Certificates of deposit - Securities - stocks / bonds / mutual funds 500 Notes & contracts receivable 1,500 Life insurance (cash surrender value) - Personal property (autos, jewelry, etc.) 10,000 Retirement Funds (eg. IRAs, 401k) - Real estate (market value) 50,000 Total Assets $ 137,000

Liabilities Amount in Dollars Current Debt (Credit cards, Accounts) $ - Notes payable (describe below) - Taxes payable -

Real estate mortgages (describe) 10,000 Total Liabilities $ 10,000

Net Worth $ 127,000

Signature: Date: 02/14/07 Startup Expenses and Capitalization

Startup Expenses Islas 314 Inc

Sources of Capital

Owners' Investment (name and percent ownership) Jesica Islas $ 20,000 Carlos Islas 20,000 Total Investment $ 40,000

Bank Loans Chase $ 25,000 Citibank 10,000 Bank of America 10,000 Total Bank Loans $ 45,000

Startup Expenses

Buildings/Real Estate Remodeling $ 10,000 Other - Total Buildings/Real Estate $ 10,000

Capital Equipment List Furniture $ - Equipment 15,000 Fixtures - Machinery 1,000 Total Capital Equipment $ 16,000

Location and Admin Expenses Rental $ 12,000 Utility deposits 444 Prepaid insurance 8,000 Pre-opening salaries 10,000 Other - Total Location and Admin Expenses $ 30,444 Summary Statement

Sources of Capital Owners' and other investments $ 40,000 Bank loans 45,000 Total Source of Funds $ 85,000

Startup Expenses Buildings/real estate $ 10,000 Capital equipment 16,000 Location/administration expenses 30,444 Total Startup Expenses $ 56,444

Owners

Carlos Islas

Jesica Islas Appendices

Some of the sources used in this business plan are:  For industry Studies: o The New York City Construction Labor Market o Local Library o Chambers of Commerce o Government Agencies  For the Business Plan Template: o Business Plan for a Start Up Business from SCORE