Famille Contracting Inc
BUSINESS PLAN
May 2021
Ayo Fayoyin
Director
Famille Contracting Inc
9417, 206A Street
Edmonton, Alberta T5T7J5
5879379505
afayoyin@famillecontracting.com
www.famillecontracting.com
Famille Contracting Inc Business Plan
I. Executive Summary
Business Overview
Famille Contracting is a Design-and-Build Renovation company specializing in General Contracting
for Custom Homes, Renovations, and Full Home Additions. We provide full service to Edmonton and
surrounding areas. Whether you're looking for a bathroom renovation, kitchen remodel, full home
renovation, basement development, or addition onto your existing home, Famille Contracting has
the skills and team to make your vision a reality!
We are committed to ensuring customer satisfaction in every aspect of our work. This commitment
is accomplished through our full-service contracting company providing quality work, integrity, and
on-time service, no matter how large or small the job may be. Our knowledge and expertise in the
construction industry enable us to offer a trusted and reliable service that is backed up by
continual training and development for our team members.
Products / Services Offered
Basement Renovation
Kitchen Renovation
Home House Renovation
Decks and Fences
Design and Planning
Basement Development
Success Factors
Famille Contracting Inc is uniquely qualified to succeed due to the following reasons:
Products and/or Services: Our Products and/or Services are superior to our competitors
because: Use the latest technology and are able to get good pricing through our special
supplier arrangement
Operational Systems: We have developed systems that enable us to provide high quality
products/services at a lower cost. These systems include: We maintain positive working
relationships with subcontractors and suppliers to ensure smooth project execution,
supported by our high ethical standards of treating everyone fairly. Our active approach to
teamwork keeps teams accountable for delivering on time and on budget.
Customers: We are already serving key customers which our competitors are not. These
customers include: Famille Contracting prequalifies our subcontractors, trade partners, and
suppliers and rigorously evaluates them based on their stability and past performance. This
ensures every person on the job site performs up to Horst Construction’s standards of
quality.
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Famille Contracting Inc Business Plan
II. Company Overview
Below is a snapshot of Famille Contracting Inc since its inception:
Date of formation: 01-01-2020
Is your business already in operation? Yes
Legal Structure: C Corporation
Prior funding rounds were received (include amount and date): 12500
Revenue generated last month: 9850
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Famille Contracting Inc Business Plan
III. Industry Analysis
Industry Overview
Famille Contracting Inc operates in the Construction and Engineering market.
Total monetary sales in this industry last year: $86million
Operators were in this industry last year: 500+
Industry's key product and service segments: Commercial and Residential
Key market trends: Downturn due to COVID 19
Key market statistics: Growing rapidly
Relevant Market Size
Our relevant market size is the annual revenue that our company could attain if we owned 100%
market share.
Our relevant market size is calculated as follows:
Number of customers who might be interested in purchasing our products and/or services
each year? 45
Amount these customers might be willing to spend, on an annual basis, on our products
and/or services? $28,000
Our relevant market size: $1,260,000
As the analysis shows, our relevant market is large enough for our company to enjoy considerable
success.
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Famille Contracting Inc Business Plan
IV. Customer Analysis
Customer Needs
Below is a profile of the needs that our target customers have:
Speed: Complete work within schedule
Quality: Complete work with premium quality without the need for rework
Reliability: We go above and beyond to make sure that our clients are understood and their
concerns are always addressed.
Price: Best possible price
Value: Our highly skilled staff take great care of producing results that matters to our client.
Customer Service: Unexpected things can happen and we always here to help.
Convenience: We will take care of everything from start to finish so you can focus on the
things that matters.
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Famille Contracting Inc Business Plan
V. Marketing Plan
Our marketing plan, included below, details our products and/or services, pricing, promotions plans
and distribution strategy.
Products, Services & Pricing
Product/Service #1 Name: Legal Basement Development
Product/Service benefits: Project manage legal basement development from initiation
to completion
Product/Service Price: 300000
Product/Service #2 Name: Renovation
Product/Service benefits: Woodwork renovation and cabinet installation
Product/Service Price: 3500
Product/Service #3 Name: Woodwork Installation
Product/Service benefits: Deck construction
Product/Service Price: 2500
Promotions Plan
Famille Contracting Inc will use the following tactics to attract new customers:
Blogs, Podcasts, etc: Use social media channels
Coupons: Distribute coupons and flyers to neighborhoods
Networking: Attend networking events
Word of Mouth / Viral Marketing: Tell family and friends
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Famille Contracting Inc Business Plan
VI. Management Team
Our management team has the experience and expertise to successfully execute on our business
plan.
Management Team Members
Name : ABAYOMI ADEYEMO
Title: Construction Chief
Background: Journeyman
Name : Rex Efruwhe
Title: Financial Controller
Background: Tax and Finance Expert
Name : Onome Ugeh
Title: Admin Assistant
Background: Project Admin
Management Team Gaps
Title/Role: Quality Inspector
Key Functional Areas Covered: Quality Assurance/Safety Specialist
Qualities of the individual who will be sought to fill this role: Quality Assurance/Safety
Specialist
Title/Role: Business Development
Key Functional Areas Covered: Advertising, Customer retention, Business Relation and
Customer Satisfaction
Qualities of the individual who will be sought to fill this role: Business Development
Board Members
Name : Ayo Fayoyin
Past positions, successes and/or unique qualities: Chief Operating Officer
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Famille Contracting Inc Business Plan
VII. Financial Plan
Revenue Model
Famille Contracting Inc generates revenues via the following:
Sales of products/services: Engineering and Construction
Summary
Below is an overview of our expected financial performance over the next five years:
Revenues
FY 1
FY 2
FY 3
FY 4
FY 5
$880,142
$977,647
$1,087,173
$1,210,227
$1,348,512
Direct Expenses
$601,551
$644,174
$689,823
$738,715
$791,080
Gross Profit
$278,590
$333,473
$397,349
$471,512
$557,431
Gross Profit (%)
31.7%
34.1%
36.5%
39%
41.3%
Other Expenses
$202,354
$212,663
$223,498
$234,884
$246,850
EBITDA
$76,235
$120,809
$173,851
$236,628
$310,580
Depreciation
$15,000
$15,000
$15,000
$15,000
$15,000
Amortization
$0
$0
$0
$0
$0
Interest Expense
$4,750
$4,750
$4,750
$4,750
$4,750
Income Tax
Expense
$16,945
$30,317
$46,230
$65,063
$87,249
Net Income
$39,540
$70,741
$107,870
$151,814
$203,581
Funding Requirements/Use of Funds
To successfully execute on our business plan, we require $50,000 in outside funding.
The primary uses of this funding include:
Product Development: $2,000
Marketing: $3,000
Staffing: $20,000
Other: $30,000
Other is defined as: Material, tools and supplies
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Famille Contracting Inc Business Plan
Financial Projections
Projected Sales, Gross Profit & Net Income
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Famille Contracting Inc Business Plan
5 Year Annual Income Statement
FY 1
FY 2
FY 3
FY 4
FY 5
Revenues
Revenues
Total Revenues
$880,142
$977,647
$1,087,173
$1,210,227
$1,348,512
$880,142
$977,647
$1,087,173
$1,210,227
$1,348,512
Direct Costs
$601,551
$644,174
$689,823
$738,715
$791,080
Total Direct Costs
Direct Costs
$601,551
$644,174
$689,823
$738,715
$791,080
GROSS PROFIT
$278,590
$333,473
$397,349
$471,512
$557,431
31.7%
34.1%
36.5%
39%
41.3%
$186,443
GROSS PROFIT %
Other Expenses
Salaries
$152,836
$160,622
$168,805
$177,405
Marketing Expenses
$2,445
$2,569
$2,700
$2,838
$2,983
Rent/Utility Expenses
$22,008
$23,129
$24,307
$25,546
$26,847
Other Expenses
$25,065
$26,342
$27,684
$29,094
$30,576
$202,354
$212,663
$223,498
$234,884
$246,850
Total Other
Expenses
EBITDA
$76,235
$120,809
$173,851
$236,628
$310,580
Depreciation
$15,000
$15,000
$15,000
$15,000
$15,000
Amortization
$0
$0
$0
$0
$0
$61,235
$105,809
$158,851
$221,628
$295,580
EBIT
Interest Expense
$4,750
$4,750
$4,750
$4,750
$4,750
$56,485
$101,059
$154,101
$216,878
$290,830
Net Operating Loss
$0
$0
$0
$0
$0
Use of Net Operating
Loss
$0
$0
$0
$0
$0
Taxable Income
$56,485
$101,059
$154,101
$216,878
$290,830
Income Tax Expense
$16,945
$30,317
$46,230
$65,063
$87,249
$39,540
$70,741
$107,870
$151,814
$203,581
4.5%
7.2%
9.9%
12.5%
15.1%
PRETAX INCOME
NET INCOME
Net Profit Margin (%)
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Famille Contracting Inc Business Plan
5 Year Annual Balance Sheet
FY 1
FY 2
FY 3
FY 4
FY 5
Cash
$98,058
$181,725
$302,224
$467,372
$635,506
Other Current Assets
$25,415
$28,242
$31,419
$33,617
$37,458
$123,473
$209,968
$333,643
$500,989
$672,964
Intangible Assets
$0
$0
$0
$0
$0
Acc Amortization
$0
$0
$0
$0
$0
Net Intangibles
$0
$0
$0
$0
$0
Fixed Assets
$50,000
$50,000
$50,000
$50,000
$50,000
Accum Depreciation
$20,000
$35,000
$50,000
$65,000
$80,000
Net fixed assets
$30,000
$15,000
$0
($15,000)
($30,000)
ASSETS
Total Current Assets
Preliminary Exp
$0
$0
$0
$0
$0
$153,473
$224,968
$333,643
$485,989
$642,964
Current Liabilities
$11,433
$12,186
$12,990
$13,522
$14,415
Debt outstanding
$47,500
$47,500
$47,500
$47,500
$0
Total Liabilities
$58,933
$59,686
$60,490
$61,022
$14,415
Share Capital
$52,500
$52,500
$52,500
$52,500
$52,500
Retained earnings
$42,040
$112,781
$220,652
$372,467
$576,049
Total Equity
$94,540
$165,281
$273,152
$424,967
$628,549
$153,473
$224,968
$333,643
$485,989
$642,964
TOTAL ASSETS
LIABILITIES &
EQUITY
TOTAL LIABILITIES &
EQUITY
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Famille Contracting Inc Business Plan
5 Year Annual Cash Flow Statement
FY 1
FY 2
FY 3
FY 4
FY 5
CASH FLOW FROM
OPERATIONS
Net Income (Loss)
$39,540
$70,741
$107,870
$151,814
$203,581
Change in Working
Capital
($15,981)
($2,074)
($2,372)
($1,666)
($2,947)
Plus Depreciation
$15,000
$15,000
$15,000
$15,000
$15,000
Plus Amortization
$0
$0
$0
$0
$0
Net Cash Flow from
Operations
$38,558
$83,667
$120,498
$165,148
$215,633
Fixed Assets
($45,000)
$0
$0
$0
$0
$0
$0
$0
$0
$0
($45,000)
$0
$0
$0
$0
Cash from Equity
$47,500
$0
$0
$0
$0
Cash from Debt
financing
$47,500
$0
$0
$0
($47,500)
Net Cash Flow from
Financing
$95,000
$0
$0
$0
($47,500)
Net Cash Flow
$88,558
$83,667
$120,498
$165,148
$168,133
CASH FLOW FROM
INVESTMENTS
Intangible Assets
Net Cash Flow from
Investments
CASH FLOW FROM
FINANCING
Cash at Beginning of
Period
$9,500
$98,058
$181,725
$302,224
$467,372
$98,058
$181,725
$302,224
$467,372
$635,506
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