Luxury Landscaping
You Can Afford!!!!
TABLE OF CONTENTS
Section 1 – Executive Summary……………………………………………………………………3
1.1 Mission Statement………………………………………………………………………………….3
1.2 Vision Statement……………………………………………………………………………………3
1.3 Business Description……………………………………………………………………………...3
1.4 Strategy…………………………………………………………………………………………………3
Section 2 – Company Background………………………………………………………………..3
2.1 Insurance………………………………………………………………………………………………4
2.2 Accounting and Legal……………………………………………………………………………..4
Section 3 – Management Team…………………………………………………………………….5
3.1 Organizational Chart………………………………………………………………………………5
3.2 Managers……………………………………………………………………………………………….5
3.3 Management and Personnel…………………………………………………………………5-6
3.4 Training…………………………………………………………………………………………………6
3.5 Personnel Duties……………………………………………………………………………………6
3.6 Employee Profile……………………………………………………………………………………7
Section 4 – Financial Plan…………………………………………………………………………….8
4.1 Three Year Projection…………………………………………………………………………….8
4.2 Projected Market……..……………………………………………………………………………..8
4.3 Start-up Costs………………………………………………………………………………………...9
Section 5 – Capital Required………………………………………………………………………..10
Section 6 – Marketing Plan…………………………………………………………………….…….10
6.1 Customer Profiles…………………………………………………………………………………..10
6.2 Marketing…………………………………………………………………………………………10-11
6.3 Competition……………………………………………………………………………………..……12
6.4 Methods of Distribution………………………………………………………………………….12
6.5 Advertising Strategy……………………………………………………………………………….12
6.6 Community Involvement…………………………………………………………………………13
Section 7 – Location Analysis……………………………………………………………………….13
7.1 Facility…………………………………………………………………………………………………..13
7.2 Solano County Statistics…………………………………………………………………………14
Section 8 – Appendix……………………………………………………………………………………15
8.1 Resume of Sharon XXXXX…………………………………………………………………...16-17
8.2 Resume of Christy XXXXX…………………………………………………………………...18-19
8.3 Letter to Investor……………………………………………………………………………………20
8.4 Letter of Recommendation……………………………………………………………………..21
Section 1 – Executive Summary
Mission Statement
Our main goal is to provide quality service and excellent customer care to all of our customers. We will specialize in our industry with hard work and continued growth and education in lawn care, landscaping, irrigation and fertilization.
Vision Statement
Our vision is to install and maintain premium commercial and residential landscapes in Solano County. To establish and maintain long term relationships with customers and suppliers built on honesty and quality rewarded by continued business. Most importantly, create an enjoyable work environment where employees respect their job and our customers respect the service we provide.
Business Description
Luxury Landscapingis a locally owned landscaping business located conveniently in Solano County. We handle landscaping and lawn maintenance, of residential homes, and small businesses. The company also offers a unique service of oriental garden design landscaping, the only one in the Solano County area. Today that service is offered in Solano County only. Our plan is to open markets in Yolo and Contra Costa Counties over the next 3 years. It is important to note that these gardens are a not only a unique service; they are also our premium high ticket service and provide a larger profit margin, directly impacting the company’s bottom line. Luxury Landscaping has chosen the following words as the hallmark of our business: Pride in our passion for landscaping and quality service, integrity above profits, 100% accountability, respect in the community, flexibility and fun.
Luxury Landscaping handles landscaping and lawn maintenance, of residential homes, and small businesses in Solano County. As of today, the company has 160 residential accounts and 25 small business accounts.
Strategy
The company’s growth strategy is to buy out smaller landscaping companies as we expand thebusiness in Solano and Yolo Counties. Currently, with local corporations “downsizing”, “out-sourcing” these services to local businesses has become prevalent.
Section 2 – Company Background
Projections for 2011 shows that it is reasonable to expect expansion of its customer base to new markets and territories. Cash Flow projections support the assumption that the company will have sufficient funds to purchase equipment and hire additional employees to support implementation of the marketing programs.
The success of the company lies in the direct result of our ability to provide personal service at a competitive rate, thus creating a dedicated customer base. Currently, the average cost for lawn maintenance of a residential home is $100 per month, small business accounts $500 per month, and large corporate accounts are negotiated on a per contract basis.
Luxury Landscaping maintains the following insurance: Comprehensive General Liability $1 million per occurrence, $2 million aggregate, Automobile Collision $1 million, Workman’s Compensation State of California Mandate.
Insurance
Carrier: Bahamamama Agent: Patty Peaches
123 Mayberry St, Vacaville California
Type of Insurance:
Business/personal $1,000,000
Deductible $1,000
Liability $1,000,000
Accounting and Legal
Accounting
All bookkeeping is kept on computer, on a regular basis, by the Vice President/Administrator on the software “QuickBooks Pro” from Intuit. At the end of the year the files are printed and passed to the accountant. Their fees are reasonable and there is a high level of trust in their input to the business. The customer base and prospect database is kept on the software “LawnPro” from LawnPro International that allows us to keep precise timelines of our scheduling and mange our accounts accurately.
Legal
All contracts and other legal matters are handled by Barney Phiffe. Mr. Phiffe is the senior partner of a 20-year old law firm specializing in business contracting.
Section 3 – Management Team
Managers
Sharon XXXXX, President
Christy XXXXX, Vice President and Administrator
Thomas XXXXX, Treasurer and Supplies
Brendon XXXXX, Secretary and Supervisor (see resumes in Supporting Documents)
The officers of the company determine the direction of the company through its monthly meetings. Additionally, there is an incentive plan for board members to acquire bonuses based on set profit goals.
Management & Personnel
Management
At present, Sharon XXXXX, is the President of Luxury Landscaping. Sharon has five prior years of experience in the landscaping business, working for a local competitor. Previously she worked in a variety of service industries selling and marketing products and services. She has set up an incentive plan for her employees that reward them for outstanding customer service based on year-end survey results, or when contracts are renewed or new business is closed. Under Ms. Jones’s management, a strong team of very dedicated people who love to work with nature has been formed. As manager her role is to identify new business, develop and implement marketing activities, and to negotiate and close new contracts. The four supervisors manage the accounts and part-time workers. They also determine staffing and equipment needed to maintain the account. There are also one design specialist, who is specifically trained in oriental garden design and tree topiaries.
Personnel
There are three full-time office employees - one Vice President/Administrator and two administrative assistants. One Supervisor/Secretary. One Treasurer/Supplies. The remaining employees are part time workers, numbering from four to twelve or more, depending on the work load.
1. President: Salary $35,000 with yearly increases justified byprofitability.
2. Vice President/Administrator: Salary $32,000with yearly increases justified byprofitability.
3. Supervisor/Secretary: Salary $28,000 with yearly increases justified byprofitability.
4. Treasure/Supplies: Salary $18,000 with yearly increases justified byprofitability.
Training
All employees receive training from the President and the Supervisor in the following areas:
Given by the President
a. Company policies and procedures regarding the customers and company standards
b. Landscaping orientation at the time they are hired
c. Liability and safety procedures
d. Equipment care and theft policies
Given by the Supervisors
a. Overview of each account assignment
b. Equipment assignment and training - operation of mowers, tools, and supplies
c. Chemicals precautions
Personnel Duties
1. President
a. Sets company policies and assigns training to new employees
b. Assigns accounts to Supervisors
c. Negotiates new contracts
d. Approves purchasing of new equipment/supplies
e. Reviews and signs all checks
g. Follows up on Supervisor sales leads
h. Marketing
2. Vice President/Administrator
a. Manages account scheduling
b. Dispatches to supervisor
c. Answers phones
d. Bookkeeping:
1. Accounts receivable/payable
2. Payroll
3. General ledger
e. Tracks orders of equipment and supplies
f. Supervises office employees
3. Secretary/Supervisor
a. Supervise “workers” team
b. Responsible for training
c. Forecasts and manages work schedules
d. Solicits new business leads
e. Organizes monthly business meetings and documents report
4. Treasurer/Supplies
a. Reviews books
b. Forecast supplies needed for each account
c. Handles account problems related to service and equipment
d. Responsible for inventory and equipment assignments
e. Supervises warehouse employees
5. Part-time Employees - report to supervisor
a. Assigned to work specific accounts
b. Mows, weeds, performs manual labor
c. Identifies any problems
d. Follows instructions from supervisor
e. Manages inventory of supplies
Employee Profile
All employees must be:
a. Hard working and neat in appearance
b. Like working outdoors
c. Good communicators
d. Team workers
e. Able to follow directives and be a quick learner
f. Dedicated to doing an outstanding job
g. Responsible, regarding safety
Section 4 – Financial Plan
Three Year Projection2010 / 2011 / 2012
Ordinary Income/Expense
Total Income / $172,500.00 / $258,500.00 / $610,000.00
Expense
Advertising and Promotion / $2,200.00 / $2,200.00 / $3,000.00
Truck and Trailer Expenses / $43,000.00 / $1,000.00 / $1,000.00
Bank Service Charges and Dues / $100.00 / $100.00 / $100.00
Business Licenses and Permits / $300.00 / $300.00 / $300.00
Computer/Office Equipment Expenses / $9,450.00 / $4,800.00 / $5,200.00
Fertilizers and Chemicals / $4,000.00 / $6,000.00 / $8,000.00
Insurance Expense / $5,000.00 / $5,000.00 / $5,000.00
Tools and Equipment / $17,500.00 / $2,520.00 / $3,200.00
Fuel Expenses / $7,000.00 / $8,500.00 / $10,000.00
Rent / $24,000.00 / $24,000.00 / $24,000.00
Loan Re-Payment / $24,000.00 / $24,000.00 / $24,000.00
Office Supplies / $1,000.00 / $700.00 / $1,000.00
Utilities / $2,400.00 / $2,400.00 / $2,400.00
Postage and Delivery / $2,500.00 / $3,000.00 / $3,500.00
Repairs and Supplies / $3,000.00 / $3,500.00 / $4,000.00
Tool Repairs and Maintenance / $3,000.00 / $3,500.00 / $4,000.00
Uniforms / $1,000.00 / $1,250.00 / $1,500.00
Earnings / $212,160.00 / $212,160.00 / $212,160.00
Management Earnings / $113,000.00 / $113,000.00 / $121,000.00
Total Expenses / $474,610.00 / $417,930.00 / $433,360.00
Total Loss / $302,110.00 / $159,430.00
Total Profit / $176,640.00
Projected Market:The projected growth rate for the landscaping industry, based the previous years is 28%. We will be expanding our business with new equipment, marketing, and additional employees tomeet andexceed that demand. We are expecting to grow our customer base by 50% based on our firstyear’s track record,our unique offering, and planned marketing activities.
Section 5 – Capital Required
Luxury Landscaping has $400,000 in cash to invest. Those funds coming in as follows: $100,000 being invested by Sharon XXXXX, $100,000 being invested by Christy XXXXX, $100,000 being invested by Thomas XXXXX and $100,000 by Brendon XXXXX. An additional amount of $100,000 in loan funds is needed as start up costs.
(Letter to investor in appendix)
Section 6 – Marketing Plan
Luxury Landscaping offers two categories of landscaping services to three varieties of customers. The customers consist of residential homes, small businesses, and large corporations. Each group has the option of purchasing the same types of services. Lawn care includes, mowing, weeding, planting, re-sod, pest control, and tree and shrub maintenance. Customized landscape design can be purchased on a contract basis, including specialties in oriental gardens, tree sculpture, and complete landscape design. All the plantings are high quality and are purchased from a local nursery that has been in the business for over 35 years. We also have an arrangement to use the nursery as a consultant when there is a need for it.
Customer Profiles
The following are descriptions of the three types of customers and the services that are typicallypurchased by each.
1. Residential homes in mid- to high-income areas, typically purchase lawn care thatconsists of mowing, weeding, pest control, and tree/shrub maintenance. There are twopeople assigned per job: two part-time college students, over-seen by a supervisor. Thisjob can take an average of two hours to complete. Each home receives a contract for fourvisits per month unless there is a special need, which is an additional cost to the basiccontract. These lawn contacts run year round.
2. Small business account or office park is the second type of customer. Theytypically consist of banks, or small office buildings and require shrub and landscapingcare, weedand pest control and minimal lawn mowing. The average time required toservice this type of account is three to four hours with one supervisor and two or threepart-time employees.
3. Large corporate account or condo complex are the third type of customer. Theyrequire the same services as the small corporate account, but require many more hours,employees, and equipment. Additionally, included in their lawn maintenance is routinewatering. The accounts that are being targeted will require an average of one week ofmaintenance per month. This is the area to be expanded over the next three years. Tosupport the watering needed every other day during the summer months, one part-timeworker is hired and dedicated to watering for every two companies. Corporate accountcontracts are negotiated individually, and range from 60K to 350K per year depending onthe amount of square footage and specific landscaping requirements.
Marketing
Target #1
Large Corporate Facilities and Condominiums
Who: Corporations that are “outsourcing” the landscaping maintenance of their facilities to outside vendors, and condominium complexes. There are approximately 75 accounts that are potential customers within a 50 mile radius. Our goal is to secure 5 in 2010.
What: Send a direct mail with telemarketing follow-up. Describe landscaping, lawn maintenance, pest control and all other landscaping services, such as tree removal and replacement, landscaping design and care. Provide a guarantee for the services and show competitive comparison pricing from local companies.
When: Begin January to determine the bidding process and to determine the timing of proposals. Call each account to determine the timing and arrange for an on-site estimate, to determine the amount of work needed and special needs to develop an estimate. If possible inquire what the previous years’ costs were and if the customer was satisfied with the work of their current landscaper.
Target #2
Small Businesses
Who: All small businesses that have outdoor grounds that want to save money, or are unhappy with their present landscaping company. In the 50 mile radius there are approximately 125 accounts that are potential customers. Our goal is to add 15 new contracts in this category in 2010.
What: Direct mail with telemarketing follow-up. Describe all the same landscaping services, referencing existing satisfied customers. Provide a guarantee for services rendered, show the cost savings using Luxury Landscaping. Develop a plan for continued landscape maintenance.
Offer the company’s quality guarantee, and competitive pricing.
When: Begin January to determine when existing contracts expire and provide information onthe company and services. Request an on-site estimate to determine costs and uncover anyproblem areas needing work.
Target #3
Residential Homes
Who: Target all residential homes in the 50 mile radius that are in mid to high income areasand over 3+ acres. Contact all existing customers with satisfaction survey, and solicit at thesame time for:
a. Additional business - renew contracts for next year
b. New customers - referrals
What: Develop and send company brochure that targets the residential homes supplying themwith information on all services offered by Luxury Landscaping, with price comparisons.
When: Develop brochure in January and mail in February prior to Spring and Summercontracts.
Competition
Luxury Landscaping currently has two competitors in the local area: The Cut Above and The Cutting Edge. While they have been in the Solano County area for several years, they are family owned businesses that have a limited number of clientele and the same number of accounts year after year. They also have no type of Landscaping specialty.
Methods of Distribution
Luxury Landscaping sells directly to the customer, is primarily a service business, with the exception of selling the landscaping plants and shrubs, which come from a local nursery wholesaler.
Advertising Strategy
Paid Advertising
We currently participate in several forms of advertising:
1. Newspaper ads: All ad copy is identical, and include information required by thenewspaper:
a. Ad information:
1. Ad size: The ad is two column x 3 ins.
2. Timing: Monthly
3. Section: Landscaping section
b. Ad location and Contact:
The Reporter
916 Cotting Lane
Vacaville, CA 95688
P.O. Box 1509
Vacaville, CA 95696
(707) 453-8109
Contact: Sally Schulz
The Daily Republic
1250 Texas Street
Fairfield, CA 94533
(707) 427-6937
Contact: Sharon Guy
2. Phone books - Yellow pages
Ad Information:
Coverage: Solano County area
Ad Size: 1/4 page
Renewal date: February 1st
Contact: Sue Billings
Community Involvement
Member of the Chamber of Commerce in Fairfield and Vacaville. Board Member of the local Garden Club, involved with teaching kids about plants and nature, as well as involved with the “Beautification of Solano” program.
Section 7 –Location Analysis
Facility
The company currently leases a 20,000 sq. ft. area, which includes a 4,000 sq. ft. building for the main office, a large attached garage for trucks, maintenance equipment and supplies, two large lots, one fenced in for parking equipment, flatbeds, and storage of trees, shrubs, and plants.
Solano County Statistics
County Population (January 2009): 426,729
- Benicia: 27,977
- Dixon: 17,573
- Fairfield: 106,440
- Rio Vista: 8,222
- Suisun City: 28,856
- Vacaville: 96,450
- Vallejo: 121,055
- Unincorporated Solano: 20,156
County’s Population Ranking in California (January 2009): 21 of 58 counties
County Sales Tax Rate: 8.375%
Average Wage per Job (2007): $43,383
Median Household Income (2008): $69,925
Median Age (2005): 34.8
Median Price of Existing Homes (June 2009): $185,000
Miles of streets, roads and highways: 1,801
County-maintained mileage: 587.3 miles
Section 8 - Appendix
Summary of Financial Needs
Sharon M. XXXXX
1234 Home Rd
Fairfield, CA 94534
707-688-1400
Summary
Five years’ experience in the Landscaping Industry. Skilled in sales, support and operations of
new accounts for an established landscaping company. Managed office of 10 employees related
to customer service. Proficient in management and workings of the landscaping service industry.
Knowledgeable in landscaping design, and planning.
Experience
Landscaping Plus, Sacramento, Ca 1998 – 2006
Office Manager, Jan. 2005-December 2006
Managed 10 employees that sold and serviced customer accounts. Responsible
for planning scheduling, and managing inventory (equipment and tools) for the
ten employees. Implemented the first “customer satisfaction survey” over the
phone, to the entire base of customers.
Developed a tool “check-in” process saving the company $10,000