Business Plan
Fast Fix Architectural Building Systems Pty. Ltd. ACN 602 090 728
As Trustee for Quick Wall Unit Trust
Trading as Quick Wall
Level 23, HWT Tower, 40 City Road, Southbank, Melbourne
Phone: 03 9817 3222 Mobile: 0412 3844 478
Index
About the Company......................................................................................................................... 3
Products and Services ................................................................................................................... 3
The Market.......................................................................................................................................... 3
The Business Potential ................................................................................................................... 4
Vision and Mission .......................................................................................................................... 4
Strategies ........................................................................................................................................... 4
Business Structure .......................................................................................................................... 5
Funds Required ............................................................................................................................... 6
The investment opportunity .......................................................................................................... 6
Utilisation of Funds ........................................................................................................................ 6
Financial Forecasts ........................................................................................................................ 7
Industry Profile : Competition : Barriers to entry .................................................................. 8
Product comparison ..........................................................................................................................
Market Segmentation ...................................................................................................................... 9
Strategy............................................................................................................................................. 10
Strengths, Weaknesses, Opportunities, Threats................................................................... 11
Sales and Marketing Objectives ................................................................................................. 12
Value Proposition........................................................................................................................... 12
Pricing ............................................................................................................................................... 12
Promotion ......................................................................................................................................... 12
2
BUSINESS SUMMARY
About the Company
Quick Wall supplies the Fast Fix Architectural Building System.
The system consists of prefabricated walls and floors that give high-rise developers and builders,
along with design and construct contractors a better building solution.
The Quick Wall Fast Fix Architectural Building System is set to revolutionise the building industry.
Quick Wall reduces building time and on site waste, whilst improving a project’s thermal, acoustic and
fire ratings.
In short, Quick Wall will lower overall building costs by increasing construction efficiency.
Quick Wall’s supply of the Fast Fix Building System is the result of considerable planning and due
diligence in establishing the business to the point where it can deliver product to the market.
Quick Wall has secured exclusive distribution rights for the Fast Fix Building System in the states of
Victoria, New South Wales and Queensland.
Products and Services
The product includes the:




Fast Fix wall system
Fast Fix floor system
Fast Fix roofing system
Fast Fix beaming system
The building system includes self-load-bearing, prefabricated, composite, wall and floor technology.
Quick Wall can replace the traditional columns, lintels, large roof trusses, false ceilings, and concrete
slabs and other structures that form part of conventional building systems.
Quick Wall products are easy to install in high and medium rise commercial and residential buildings.
The key to the system is its patented joining system.
CLICK ON: http://www.youtube.com/watch?v=UZ6LIt96Qr4
Example domestic building process.
CLICK ON: MCM Global Product & System Data pdf
The Market
Market segments for Quick Wall products include:
 Medium-rise suburban residential and commercial developments

High-rise CBD residential and commercial developments

Buildings by project design and construct contractors

Buildings designed and specified by architects and structural engineers.
3
The Business Potential
The aim is for the Quick Wall to evolve as a building system provider.
Quick Wall has secured a contract to provide its products for use in constructing a 22 unit
development in Marysville, Victoria.
Construction is planned to commence during November 2014. The site and development will serve as
a showplace for Quick Wall and play an important role in helping to secure future business.
Reinforcing our view:
The Quick Wall Fast Fix Architectural Building System is set to revolutionise the building industry.
Vision and Mission
Vision
Quick Wall’s vision is to, by the end of 2014 financial year, be operating in Victoria, New South
Wales and Queensland, with solid base of repeat customers developing medium & high rise
projects.
The business will be profitable, producing a 20 per cent EBIT.
Mission
Quick Wall’s mission is to build a sustainable business with a corporate structure and robust
systems including ordering & logistics.
The business projection is to invoice $3.1 million by the end of 2015 calendar year reflecting a profit
of $600,000.
By the end of 2016 calendar year the business projects sales revenue of $9.4 million with a gross
profit of $1.88 million.
Strategies
Early Strategy
Quick Wall will use the Marysville development to demonstrate the system’s unique qualities to key
market segments being medium sized developers undertaking low rise suburban projects.
Following awareness building activity in this area, Quick Wall will conduct individual presentations
targeting developers of medium & high rise commercial and residential projects.
The presentations by the CEO will demonstrate the benefits and savings to be achieved by
developers using Quick Wall.
The strategy includes identifying early adopters in the building industry, and formulating account
plans to engage and convert customers in this market segment.
4
Business Structure
David Kirkham
Chief Executive Officer
David comes with an outstanding pedigree in Australian Business.
He is an experienced businessman encompassing property development , equity raising
and is a seasoned methodical manager.
David has brought to successful conclusion a number of projects enhanced by his proven ability to
interpret market trends and commercialize opportunities during a distinguished business career.
David has a wide array of business experience and brings extensive wisdom to Quick Wall
Bankers:
Westpac Bank
Whitehorse Road, Balwyn
BSB: 033 089 Account No : 460 687
Accountants:
Corporate Outcomes Group Ltd
Advisers:
KPG Equity Australia Limited.
Corporate Outcomes Group Ltd
5
Funds Required
The funds required for the progressive and full implementation of this business plan are
$420,000 which is listed below.
The business plan has been mandated and the minimum amount of capital required
to achieve first milestones is $70,000.
The Investment Opportunity
In Round One the business will raise $70,000 in 2 parcels of $35,000 via the issue of 2 unit holdings in
the Quick Wall Unit Trust @ $35,000 per Unit. This represents a 2% stake holding in the company.
In Round Two the business will raise $150,000 in 3 parcels of $50,000 through the issue of 3 unit
holdings in the Quick Wall Unit Trust @ $50,000 per Unit. This represents a further 3% stake holding.
In Round Three will raise $200,000 in 2 parcels of $100,000 via the issue of 2 unit holdings in the
Quick Wall Unit Trust @ $100,000 per Unit. This represents a further 2% stake holding.
Projected distributions & dividends per Unit Holding are $33,600 in the first year.
See Financial Forecasts on page 7
Post Round 3 the company intends to raise further capital for Joint Venture Building Projects
incorporating its Quick Wall product utilizing the methodology, tools and pathway of the
Australian Small Scale Offerings Board (ASSOB)
Utilisation of Funds
Round 1
Round 2
Round 3
Total Capital
Raised
Appointment of CEO
30,000
50,000
95,000
175,000
Administration
Various Insurance Protection Policies
10,000
5,000
5,000
~
10,000
10,000
~
10,000
20,000
20,000
~
20,000
40,000
35,000
5,000
30,000
Web Site & Time Lapse Video Productions
10,000
~
~
10,000
R & D on Expressed Joint Panel
~
~
5,000
5,000
~
~
~
25,000
25,000
20,000
20,000
~
~
20,000
5,000
20,000
NIL
30,000
50,000
25,000
70,000
150,000
200,000
420,000
Activity
Corporate Advisors Retainer
Marketing Cut Away Samples of Products
Display Site
Prepare Offer Document for Capital Raising
Road Show Marketing & Presentations
Aust.Small Scale Offerings Board Listing
Total
6
Financial Forecasts 2015
ASSUMPTIONS
Suburban medium rise 3 storey apartment sites
Average Apartment size 10m x 10m = 100 sm
No of Apartments per floor = 8
Total apartments = 24
QUANTITIES in square meters (sm)
Apartment wall Length 10 m x ceiling height 3 m
X 4 sides
X by 8 apartments per floor
X 3 floors
MARGIN
COGS : 2880 sqm x $106 psm
SALES : 2880 sqm x $135 psm
GP per model site
PROJECTED SALES 2015
Melbourne sites
Sydney sites
Brisbane sites
PROJECTED GP
Melbourne 5 sales x $84,000
Sydney
2 sales x $84,000
Brisbane 1 sale x $84,000
sqm
sqm
30
120
960
2880
2880
$
$
305,000
389,000
84,000
No.
No.
5
2
1
8
$
$
420,000
168,000
84,000
672,000
DISTRUBITION PER UNIT HOLDING
20 Units issued in Quick Wall Unit Trust
GP ~ 20 units
$
$672,000 ~ 20
33,600
7
THE MARKET
Industry Profile
Building methods in Victoria, New South Wales and Southern Queensland have seen little
advancement in prefabricated wall and floor systems during the past 100 years. Yet there has been an
unprecedented level of medium and high rise development in these areas.
A trend that will grow as land values continue.
Similarly, tradesmen are hard to access and buildings take longer than they should to complete.
The result is an industry in which developers and builders are searching for a better way to construct
the buildings they have worked so hard to have approved.
Competition
There are several prefabricated wall solutions. Most alternatives are inferior in terms of materials and
performance.
Only one local product is comparable – Bondor from Insuwall part of CSR.
However, the Bondor system appears to be more expensive than Quick Wall.
Market research indicate that several developers and builders have tried to fill the void by spending
considerable time and effort to create a product to answer this widely identified need in the building
industry. Most of these attempts have been unsuccessful.
Barriers to entry
The barriers to entry are considerable. Developing a suitable product is expensive, difficult and
technically demanding.
In the short term we are unlikely to see a competitive product at the price we can deliver Fast Wall.
8
Market Segmentation
Segment:
Characteristics:
Melbourne suburban
high rise small to
medium sized
commercial
developers
In the Eastern suburbs alone there are 6 or 8
10’s of millions of
developers building along Doncaster, Whitehorse,
dollars in
and Canterbury Roads. There is a clamour for good development
sites
Melbourne suburban
high rise small to
medium residential
developers
Similar to the above segment except there are
more of them. Hawthorn, Kew, Balwyn, North
Balwyn, Mont Albert, Surrey Hills and Box Hill all
have numerous building projects proceeding
10’s of millions of
dollars in
development
Melbourne CBD high
rise commercial
Melbourne has continuous high rise development,
some of it ‘super high rise’ there are 3 or 4 major
developers in this area, this market will be
developed in conjunction with ‘Speed Floor’
100’s of millions
of dollars in
development
Sydney suburban high Sydney has continuous high rise development,
rise residential and
some of it ‘super high rise’ there are a number of
commercial
developers in this area.
Size
100’s of millions
of dollars in
development
9
MARKETING PLAN
Strategy
The company will identify and convert an early adopter in the Melbourne suburban high-rise
residential or commercial sector. As the Marysville project nears completion we will have a
demonstration site available to promote the product. Building on the early successes we will
identify key players in the market segments selected and conduct small group seminars
demonstrating the benefits to the developers.
Having achieved success in Melbourne we will identify the actual savings to quantify the benefits to
the developers. We plan to develop the Sydney market in tandem with Melbourne. South-East
Queensland will be developed later.
Strengths, Weaknesses, Opportunities, Threats
Strengths






Product is patented
Product quality
CEO experience
Connections in the development and construction industry
Sales skills of the principals
Support from manufacturer
Weaknesses


Short of capital
Lack of resources to cover a broad market
Opportunities





Suburban high- rise commercial
CBD high-rise commercial
Suburban high-rise residential
CBD high-rise residential
Joint ventures
Threats


Conservative attitudes to building
Competitive panels
10
Strengths
Product Patent
Product quality
CEO experience
Connections in the industry
Sales skills of the Principals
Support from Manufacturer
Opportunities
Suburban high rise
commercial
CBD high rise
commercial
Suburban high rise
residential
Joint ventures
•
Threats
Conservative attitudes
to building
Competitive panels
•
•
•
•
•
•
Weaknesses
One development so far
Short of Capital
Lack of resources
– market coverage
Demonstrate the product
capability to a select market
Find a ‘friendly’ suburban high
rise developer
Sell second one to create case
study
•
•
Build a second with a ‘friendly
suburban High rise developer
Get investors
Demonstrate ‘New Build’ using
‘ Quick Wall’
Get a cross section to show
Web site
Marysville as display showroom
•
•
Demo to a friendly
Use Marysville as showroom
Summary of Key Actions:





Get investors to commit
Create a demonstration piece and a quality brochure
Identify a suburban high-rise developer and sell the next shipment
List prospects in selected markets
Develop an excellent Website and credible seminars
11
Sales and Marketing Objectives
Revenue:
The first sale has produced revenue of $54,000. Subsequent sales to the same development will be
in the region of $100,000.
We have assumed one sale ever second month for the calendar 2015. This is based on the current
prospects in the prospect management system.
As the marketing presentation & seminars produce good prospects more accurate predictions on
sales volumes can be made. It is anticipated that there will be three major accounts in both
Melbourne and Sydney by the end of 2015. These accounts should be producing more than
$500,000 each per project. Additional accounts will be developed during 2016.
Value Proposition
Quick Wall with a cement skin and rigid polyurethane filling means strong prefabricated load bearing
wall that speeds up construction. The patented joining system means further ease of construction.
The filling provides thermal and acoustic properties which means no additional trades persons on
site also no off cuts and waste. The load bearing feature means that the walls will work well on
medium and high-rise development. In summary, the product speeds up construction, thus lowering
the cost of the build; it also simplifies site work and reduces cost of a wall and floor in situ.
Pricing
For internal walls the square meter price will be approximately $69.00. With a shipping container
holding approximately 800 square metres.
The external wall panel system allows speedy construction as the only finishes required are render
to the external face and painting of the internal surface. The square metre price for this panel will be
$135.00.
A shipping container of external wall system will be approximately 400 square metres.
Promotion
The major promotional activities are:





sales activity at the Marysville site
production of high-quality brochure
production of a time-lapse video
development of a high-quality website
conduct of small-group seminars for specific market segments.
12
OPERATING PLAN
Supply Chain
The key operating system in the success of Quick Wall will be the effective supply chain management:
 factory to port
 port to port
 port to site or port to storage
 storage to site
13