Forecasted Business Plan
2014 – 2015 – 2016
Trans-Global Capital Management, Inc.
28 E Jackson
10th Floor Suite 550
Chicago, IL60604
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Company History
Development and Construction Company
1.0 The Company
1.1 Services
1.2 The Market
1.3 Financial Considerations
1.4 Objectives
1.5 Mission
1.6 Keys to Success
2.0 Services
3.0 Market Analysis Summary
3.1 Market Segmentation
4.0 Target Market Segment Strategy
4.1 Service Business Analysis
4.1.1 Competition and Buying Patterns
5.0 Strategy and Implementation Summary
5.1 Competitive Edge
5.2 Marketing Strategy
5.3 Sales Strategy
5.3.1 Sales Forecast
6.0 Management Summary
7.1 Projected Profit and Loss
Insurance Company
8.0 Mission Statement
9.0 Executive Summary
9.1 Company Description
9.2 Marketing Plan
9.3 Underwriting Guidelines
9.4 Operational Plan
9.5 Management and Organization
10.0 Marketing Plan
10.1 Financial Guarantee Bonds
10.1.1 Background
10.1.2 Business Partnerships
10.1.3 Targeted Products
10.1.4 New Product Distribution
10.1.5 Promotion and Advertising Expense
10.1.6 Competition
11.0 Underwriting Guidelines
11.1 Premise
11.2 General Guidelines
11.3 Underwriting Philosophy
11.4 Underwriting Steps
12.0 Operational Plan
12.1 Funds and Project Management
12.2 Captive Carrier Participation
12.3 Projected Profit and Loss
13.0 Projected Financial Statements
13.1 Balance Sheet
13.2 Income Statement
13.3 Notes
13.3 Combined Projected Profit and Loss
Company History
Trans-Global Capital Management Inc., a Nevada corporation was originally incorporated in April 17, 1996 under the name Western Union Capital Corporation (WUCC). It was organized for the purpose of providing a number of different financial services, including the financing of personal property, leasing and reinsurance. The Company considered the feasibility of acquiring other finance companies engaged in the same type of business. The sudden and unexpected death of the Chairman and visionary of this development stage company set a new era in motion.
On May 9, 1997 the Company’s name was changed to Lionshead Entertainment Corporation (LHRD). Management at that time decided to enter the Seniors Television Market, which was considered to be a highly profitable market. The Company was in the development stage of a Senior Channel, a Senior Life Style Show and the purchased the following programs:
- Gospel Music Hour
- Big Band Hour
- The Low Fat Gourmet
- The Senior Travel Show
- The Washington Spy
- Whatever Happened to? (A Senior Celebrity)
- Senior Health and Fitness Reports
A number of pilot sections were produced by Great Scot Productions in Phoenix, AZ., the Company did not reach its expectations because of the onset of poorhealthof one of its major promoter and star, Donald O’Conner,and new management was brought in to change the direction of the company
On February 1, 1999 the Company’s name was changed to Trans-Global Holdings, Inc. (TGHI), and a new management team was elected. The Company planned to engage in the investment of real estate for future development of the retirement and vacation property markets.
The Company had plans under development to build and market time-share VOI (vacation ownership interest) communities. Management was considering sites that could be developed using the VOI concept that was strongly rebounding after several years of disappointing growth. Various new partnerships and sole ownership opportunities were being explored domestically, in Canada and in the Caribbean.
The Company, at that time, had already certain equity positions in IT and Home Construction related concerns that it deemed Integra table and associated with it VOI plans. However, those businesses need greater equity infusions than originally budgeted and further due diligence uncovered weakness in the forward looking business plan to a point that further infusions of capital was deemed unadvisable. At this point the management of the company decided that liquidation of those IT and Home Construction related concern was in its best interest.
Subsequently the Company was in a dormant mode, reviewing its options and future opportunities. It was during this period that a run was made on its existence by a group of people that made a practice of taking over dormant companies without shareholder knowledge. The major shareholders of the then Trans-Global Holdings, Inc., became aware of this situation and took immediate steps to reverse what the Company deemed was an illegal takeover. This time the Company had already been sold to a third party named Clear Cut Film and Technology Studios, Inc and the reversal proceeds took quite some time.
From that point Trans-Global Capital Management, Inc., (“TGCM”) was reorganized by its majority shareholders to take advantage of many years of experience in general and specific areas of insurance. The “Company” began its search to locate an insurance company to be purchased and capableof writing Financial Performance Bonds. TGCM’s strategic business plan calls for rapid growth in Financial Performance Bonding, Portfolio and or Group Loan Guarantees, Private Placement Guarantees and Project Enhancements. The “Company” has received from Hedge Funds their desire to purchase Financial Performance Bonds in the amount of approximately 20 Million US Dollars per month. The financial overview assumes monthly sales of 20 Million US Dollars in contracts earning ten percent prepaid over a three year period. This sales assumption was generated from evaluations based on knowledge and experience of the market for this kind of insurance product. The net result of the projected robust earnings is a more than tripling of the per share value of TGCM’s stock over the next three years. TGCM is confident about its future financial performance and therefore would like to projects the payments of annual dividends to further enhance shareholder value.
In addition, to the insurance business TGCM has received offers to sell and the ability to purchase land in various stages of development. Based on the potential purchase of this land the “Company” plans create a Development and Construction Company., who will build and construct to our clients specifications. The land we are analyzing is all located in prime locations.
Development and Construction Company
1.0 The Company
Trans-Global Capital Management, Inc plans to acquire various selected parcels of land, which are at various stages, from raw land to fully complete. The company plan is to have our Development and Construction Company begin new construction and/or complete projects in process.
1.1 Services
TGCM’s real estate team focuses on investment opportunities throughout the real estate sector, including office, hotel, retail, industrial, multifamily, homebuilding, healthcare, services, infrastructure, parking, vineyards and other niche sectors.
Our real estate group has a unique ability to execute and grow investments, including:
- Acquiring and developing assets throughout all real estate sectors
- Building operating platforms and joint ventures with management teams
- Creating partnerships with existing real estate groups
- Participating in management lead buyouts
- Maximizing the potential of investments with both real estate and operating company components
1.2 The Market
The real estate market in several areas of the country hasbeen on the up swing; however other areas have experienced a major decline. Overall the real estate business growth for the past several years has been on the up swing and is expected to continue. This makes for a very attractive market for TGCM. We will be concentrating on the customers that will provide us with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of commercial clients requiring our services. The other categories that we will serve include the restaurant segment, the special facilities segment, and all other potential commercial clients.
1.3 Financial Considerations
TGCM expects to realize the projected profits as reflected on our Projected Income Statement and an increase every year thereafter. We are confident we will experience growth, because of the areas selected and the favorable interest received.
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1.4 Objectives
TGCM's real estate team has significant experience across all real estate sectors and geographies. As a result, the team has a broad network of relationships, first hand knowledge of all of the major markets, and the ability to quickly understand and add value to complex projects. In addition, we work closely with the other TGCM investment teams to maximize the value creation opportunities in both the real estate and operating company dynamics in all MDP investments.
1.5 Mission
TGCM strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services, whether it be office buildings, warehouses, large apartment complexes, public works, etc. TGCM maintains the highest standards of service in the commercial construction industry.
1.6 Keys to Success
The local commercial construction market is booming at the moment. In order to achieve a defendable position in this environment, TGCM must concentrate on the following tasks.
- Secure at least five large major clients e.g. Holiday Inn and other commercial contracts over the next two years
- Expand our customer base through expansion into other geographic areas to retain a sufficient level of profitability
- Convert present inquires into contracts
2.0 Services
TGCM offers a comprehensive package of services designed to allow the client to work with one of our managers and create a project the company can carry forward to completion. Some of the myriad services TGCM offers are:
- Remodeling and alterations
- Permitting
- Site preparation
- Carpentry
- Cement foundations
- Painting
- Plumbing and utilities installation
- Exterior renovations
- Roofing
- Subcontractor assessment and evaluation
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3.0 Market Analysis Summary
The real estate market is constantly growing and will continue grow in certain areas of the country. TGCM has selected property in areas that have not experienced any decline in growth and does not expect any decline in the foreseeable future. TGCM’s greatest asset is that we have clients requesting development in the areas we have selected.
3.1 Market Segmentation
At the moment our potential list of clients includes all the various businesses in major cities and its suburbs. According to the Contractor's Association there are more customers than there are contractors capable of satisfying the large demand. As stated earlier we have selected sites to purchase that satisfy the need of clients which are seeking different forms of construction from hotels, condos, recreation facilities, etc.
4.0 Target Market Segment Strategy
Since office building construction has the highest average profit margin, we will focus most of our marketing and servicing toward these customers. Usually these clients tend to be the most sensitive to completion times; therefore, we plan to accommodate these clients through a well established and expeditious permitting program, strict cost accounting and supply chain management, and intensive and comprehensive project management.
4.1 Service Business Analysis
The commercial construction industry is highly fragmented across the nation. More than 86% of all construction companies in the U.S. consist of small "mom and pop" style companies employing less than ten individuals. Contrasted to this are the large companies that engage in "heavy" construction such as roads, shopping malls, etc. who often have a nationwide scope and employ several thousands of workers.
4.1.1 Competition and Buying Patterns
TGCM has no competition; the projects which we will undertake, will only come from clients that have the desire to build on selected land purchased by TGCM.
5.0 Strategy and Implementation Summary
TGCM plans to market itself through a variety of methods. Our plan will use referral systems, radio and published ads, leveraging of our pre-existing contacts with the local real estate companies, and industry contacts.
5.1 Competitive Edge
In the construction industry the primary ways to compete are through low cost or better project management. One of the most important processes for winning a contract is the bid process. TGCM will utilize the experience of its owners and its state-of-the-art job costing tools to gain a competitive advantage over older firms that still rely on the best "guesstimate" method.
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5.2 Marketing Strategy
TGCM plans to market itself through a variety of methods. First, the company will use a referral system with local businesses. We will also air radio spots and publish ads in a variety of commercial construction trade magazines. In addition we will leverage our pre-existing contacts with the local real estate companies.
5.3 Sales Strategy
The most critical part of sales is not the marketing, but the bidding process, in which companies offer their designs, services, material quality, project timeline estimates, and costs. The company that offers the best combination of these variables is the most likely to get the contract. Therefore very detailed project planning, including supply agreements, labor needs, subcontractors, presentation, and other factors, is crucial for TGCM in winning contracts.
5.3.1 Sales Forecast
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TGCM projects Gross Income of $20,000,000 for year 2014, as reflected on our Projected Income Statement.
6.0 Management Summary
TGCM management will concentrate on client contacts and bidding along with overall management of the company. The General Project Manager, will be coordinating all project management and concentrating on cost controls, suppliers, day-to-day project supervision, labor relations, etc. The Office Manager, will be handling client satisfaction, invoicing, permitting, and general book keeping.
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The company is planning to expand its personnel to add a number of job superintendents as soon as the number of projects increases. These superintendents will have the following duties:
- Direct supervision of all work at the job site
- Quality control
- Scheduling subcontractors and material deliveries
- Verifying and insuring that all work is done in accordance with plans
- Insuring that all work is performed in accordance with all OSHA guidelines
In addition, as business increases, we will hire additional job superintendents and project managers as needed.
7.1 Projected Profit and Loss
The following is our best estimate of future revenues and costs, based on current market trends and perceived revenue for the next 3 years.
Insurance Company
8.0 Mission Statement
We expect toexceed our customers’ best expectations with only the highest quality insurance products, consulting, and related services.
9.0 Executive Summary
9.1Company Description
TGCMwas formed to carefully and deliberately assemble the proper talent, team, and plan in order to write highly specialized Financial Performance Bonds. Careful consideration and planning has been given with regard to appropriate internal and external support services.
9.2Marketing Plan
Program is available only through long-time personal and trusted business sources to the investor and underwriter. We will be involved principally with private placement projects or referred and trusted lenders and project owners.
Financial Performance Bonds and related financial guarantees will thus be carefully screened or “cherry picked” for consideration through controlled sources.
9.3Underwriting Guidelines
Project evaluations will be undertaken through a methodical review process of the project’s plans, owner(s), and contractor(s). Verified and carefully evaluated collateral pledged by the owner will be at least two to four times project value, and released only upon project completion.
Projects will only be approved for those cases where it makes sense for the project owner, lender and contractor. Only those projects with verifiable and readily available buyers in the event of project owner default will be acceptable.
All contractors will be carefully screened for financial stability, personal and corporate integrity, required expertise, licenses, insurance, and permits.
Project funds will be released to the contractor only upon verifiable completion of the work for which payment is sought, and when lien waivers from primary and subcontractors are obtained.
9.4Operational Plan
All projects will be managed by a professional and knowledgeable underwriting staff, in coordination with third party resources where necessary or required.
The Insurance Company will participate through the administrative management of its captive carrier cell which is specifically allocated and segregated for this purpose; and will serve as carrier “gate keeper.”
9.5 Management and Organization
Experienced management and underwriting staff have been assembled for this project. Our staff and its advisors have broad experience in the financial management, insurance, legal and investment banking industries.
10.0 Marketing Plan
10.1 Financial Guarantee Bonds
10.1.1 Background
This new product and associated delivery concept has been a natural evolution from our partner’s long and storied career in the Financial Accounting and Management, Investment and Mortgage Banking, Personal Investment and Performance Bonding arenas.
A recent shift in market’s financial risk appetite and capacity has stressed the private sector in the past several years, due to recent significant losses in the bond industry. This situation was exacerbated to the critical level since 9/11/01. That disaster caused not only huge actual real losses, but also caused stress on carrier reserves from expanding or even continuing in some cases, into further supporting various equity market projects.
The bond market has recovered somewhat, but has not fully rebounded from the new attitude of ultra conservative risk management. It is also reflective of the continued uncertainty in the worldwide equities market, where misdirection and nervous investors are not setting into any predictable patterns. A consensus does seem to be building that markets may have bottomed out. However, resistance levels continue to be tested as bonding companies and lenders alike are still approaching the marketplace in unhealthy conservatism in our judgment.