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
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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 ($)
PROFITS ($)
2008
$684,000
SALES /
PROFITS (%)
$54,720
8.00%
2009
$889,200
$80,028
9.00%
2010
$1,368,000
$150,480
11.00%
Highlights
$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$0.00
2008
Sales
2009
Expenses
Net Profit
2010
Quality System
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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
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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 WomenOwned
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
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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 in
the global marketplace will be companies with the best workers.”
Dream !t Do!t NAM Campaign
John 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 skilled
workers 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 skilled
workers by 2020, in part to replace aging boomers who make up a large part of
manufacturing jobs today.”
Wall Street Journal
Challenge: Welding Industry
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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 Data
GROSS OFFERING
LESS ESTIMATED OFFERING EXPENSES AND COMMISSIONS
NET PROCEEDS
$750,000
0
$750,000
PLANNED USES
CAPITAL EXPENDITURES
Computer equipment
Purchased software y licenses
$ 10,000
$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 111061306.
Distribution of Areas
Distribution of Areas
Company Ownership
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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
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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
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Welding industry and
engineering
consulting services is
a large industry not
only in New York
City, but also in
entire United States.
Establishments
dollar value of
business done
annual payroll
Employees
231
3,799,582
794,067
16,128.
Welding Status
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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
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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
Welding Training – Welding
School
NDT Services - Laboratory
Welding Equipment Rental
Services:
CRMT
SERVICE LINES
Equipment Rental
Material Testing
Laboratory
Engineering Consulting
in Quality and Welding
Welding Equipment
Testing
Non Destructive
Equipment
Qualification
School of Welding
Instructions and
Classes - Seminaries
5. MARKETING RESEARCH
AND EVALUATION
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CRMT will focus on
traditional
engineering
consulting, material
testing and rental
welder equipment
contracts.
Segmentation
WELDING AREA IN NYC
REVENUES
# Bus.
# Business
Less than $100,000
13
Welding Contractors
231
$100,000 - $499,999
17
Welding Services
174
$500,000 - $999,999
6
Welding Repairs
20
8
Welding Inspections
and Consultants
21
$1,000,000 $4,999,999
$5,000,000 and over
2
Welding Equipment
Rental
11
TOTAL
46
TYPE
Census 2002
Classification of minority and
women owned business
Business Analysis
2%
7%
53%
19%
10%
Business Services
Equipment Rental and Leasing
Management Services
Testing Laboratories
2%
7%
Engineering Services
Management Consulting Services
Surveying Services
Advertising
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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
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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.
“New Engineering Solutions to the Industry”
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
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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
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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
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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
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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 Manager
Internal Control
Sales / Customer
S Manager
NDT Laboratory
Manager
Marketing
Rental Services
Welding School
Manager
Management
Committee
Consulting
Manager
Finance Manager
Administrative /
HR Manager
8. TIMELINE
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
Planning
Org. Legal
Financial
Dec. / Rem
Fixtures / Eq
Installation
Marketing
Personnel
Q/A
Adjusting
Open doors
On time!
MAY
9. CRITICAL RISK AND
ASSUMPTIONS
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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.
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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)
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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)
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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)
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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 COMMUNITY
Employee Benefits
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Provide our employees with
opportunities to use their
professional skills
Provide CRMT employees with
opportunities to use their
professional skills outside their dayto-day environment.
Link pro bono work to the
Continuing Professional
Development program.
Manage the administration of the
pro bono program to employees.
Employee Benefits
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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
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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
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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
Income before
Tax
Taxes (30%)
478,800
622,440
957,600
205,200
266,760
410,400
69,768
90,698
139,536
Net Income after
Taxes
135,432
176,062
270,864
Objective Needs
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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
Thanks for your attention