T.C. Septic Inc.
To Micheal Garnier:
T.C. Septic Inc at this time is stable enough in this industry with the knowledge and customer base to advance to a much more profitable company. We believe that with financial backup T.C. Septic Inc. will advance to the leading septic business in our area. We project by 2013 T.C. Septic Inc will be earning close to a half million dollars in this industry. With our marketing plan in place and a name in our community for over ten years, our portable toilets, tanker trailer, and our bio-green products that we will invest in will defiantly not be with regret. As of today we have produced a list of customers in the construction industry that will be in need of our portable toilets, City and County functions(such as the Fair and Markets) that will require portable toilets and fencing. I have contacted Liquid waste companies for sub hauling and Restaurants that will put our tanker trailer to work the day we purchase it. I have also made a list of customers in the unincorporated area of Solano County that asked to purchase bio safe septic products, and is waiting for a call to confirm. I would like to thank you in advance for taking the time to consider our company and look forward to hearing from you soon.
Respectfully,
Tennille DeLaTorre
Operations Manager
T.C. Septic Inc.
Table of Contents
1.0Executive Summary………………………………………………………………….….….3
1.1Mission Statement…………………………………………………………….…….3
1.2Objective……………………………………………………………………….…....3
1.3Keys to Success……………………………………………………………………..4
2.0Company Background……………………………………………………….……….…....4
2.1Company Financials………………………………………………………………..5
3.0Management …………………………………………………………………………….....6
3.1Management Team……………………………………………………………..….6
3.2Resume………………………………………………………………………..…….7
4.0Financial Plan………………………………………………………………….……..…….7
4.1Financial Statement………………………………………………………..………8
4.2Current list of Assets…………………………………………………..…...………9
4.3Projected Income Charts……………………………………………………….…10
4.4Projected Income Chart (monthly)……………………………………..………...10
Continued…………………………………………………………………………..11
4.5Projected Financials.………………………………………………………………12
5.0Capital Required…………………………………………………………………………...13
6.0Marketing Plan……………………………………………………………………………..13
6.1Marketing segment and strategy………………………………………………….13
6.2 Marketing Plan Analysis……………………………...…………..………………14
6.3Competition…………………………………………………………...……………15
7.0Location Analysis……………………………………………………………..……………15
1.0 Executive Summary
T.C Septic Inc. is a Vacaville California Based septic company that strives to be unique and best overall in customer service in our area. T.C Septic is focusing on the septic industry with plans to help the planet by producing green products, Invest in a 5,000 gallon tanker truck, as well as expanding into Portable Toilet rentals with fencing. T.C Septic Inc. has chosen this diversity and expansion with knowledge of high demands in our area.
The Organization
T.C. Septic is prided on the idea that customer service is our number one priority and that maintaining customer satisfaction is essential to the financial health of our organization.
Marketing
T.C. Septic will be targeting five different area’s 1) Restaurants 2) Realtors 3) Construction Companies 4) Wineries 5) Residential. We will be marketing with Local Newspapers, Local Radio stations, and Yard signs.
Services
Our goal is to ensure the complete satisfaction of every customer who contacts us, while offering knowledgeable and friendly service at competitive rates. Ourhope is that our customers will feel confident in our ability to meet all of their expectations and know that they are always our number one priority.
Financials
T.C. Septic projects our company being profitable with stable growth. Our revenue will be exceptional with a steady growth rate for the upcoming years. T.C Septic has always been a profitable company and now is ready to become the top rated company in our area with the expansion.
1.1 Mission
To provide the best quality service with keeping safety as our number 1 priority.
1.2 Objective
- To fulfill our customers demand with top quality service
- To encourage customers to help protect our land and community
- To become the company that every one thinks of when they hear septic
1.3 Keys to Success
Keys toSuccess and critical factors for the next year are:
- Identify “Target Markets”
- Quality customer service
- Bio-Green Products
2.0 Company Background
T.C. Septic is locally owned and operated out of Vacaville, CA. We are Incorporated as an S-Class Corporation since July of 2000. The owner David Jr. started the septic business over 10 years ago, but has over 30 years experience in the septic industry. David Sr. Started T.C. Trucking in 1966, since then his two sons Danny and David Jr took over and made this company into T.C. Trucking and T.C. Septic. We are family oriented and strive to always improve our community. T.C. Septic Inc is members of the Chamber of Commerce and are rated an A-1 Business with the Better Business Bureau. David Jr. has:
a contractors License # 884206 and is currently bonded.
Currently hold business licenses in the County of:
Solano
Yolo
Napa
Solano County liquid vehicle waste certification
Motor Carrier Permit (for hire) CA #0087351
Alcohol and Drug testing certification DOT certified
2 million liability coverage
Strengths:Quality Work, Dependable, Reliable, good work ethics, in business for over ten years, customer relationships.
Weakness: small company, fuel prices, family relationships
Opportunities: Invest, Expand, and offer stability and strength in our family business
Threats:Competition, Winter Months
2.1 Company financials(current)
Profit & Loss
January through December 2009
Jan-Dec 09
Ordinary Income/Expense
Total Job Income289,653.63
Cost of goods sold
Equipment rental for jobs184.50
Job materials purchased10,633.10
Sub contractors expense9,565.69
Tools and small equipment270.31
Total COGS19,838.60
Gross Profit179,815.03
Expense
Advertising5,858.56
Auto and Truck Expenses1,367.68
Bank Service Charges122.44
Business Licenses and Permits1,231.00
Waste Discharge Fee’s8,961.60
DMV3512.00
Drug Testing99.00
Fines658.95
Fuel27,130.72
Garbage830.96
Insurance Expense13,109.81
Medical75.00
Office Supplies60.00
Professional Fee’s574.00
Rent Expense18,935.68
Repairs & Maintenance16,092.79
Telephone Expense5,116.70
Utilities4,335.92
Total Expense111,480.25
Net Ordinary Income68,334.78
Other Income and Expense
Sales Tax105.53
Other Expenses
Brokers Fee84.72
Total Other Expense84.72
Net Income65,324.59
3.0 Management Team
T.C Septic management team includes David Welch who has owned and operated this company for over ten years with great knowledge with experience in this industry for over 30 years. Tennille DeLaTorre is the operations manager whom is highly educated with great customer service, They are the best in this field and make a great team.
3.1 ManagementTeam
CEO-David Welch
Operations Manager-Tennille
Field Manager-Dom Jones Dispatch-Jamicia Jones
Laborer Driver
CEO is overall responsible for the company. The duties and responsibilities are to handle the day in and day out operations but not limited to the jobs as described above.
Operations Manager is directly responsible for all the administrative and financial reports that occur on a daily basis. Also, is responsible for all the employees as stated above.
Field Manager -is responsible for all the laborers and oversees all the jobs that have been assigned to him.
Laborer -under the direct supervision of the field manager, job description, includes but is not limited to digging, cleaning shop area including the yard to the shop
Dispatch -handles all incoming and out going phone calls. They are the direct link to all communications to and from the job site. Directly supervises all drivers.
Driver is responsible for the transportation of receiving and transporting all waste material to the proper site for disposal.
3.2 Resume
Tennille DeLaTorre5874 LeisureTown Rd Vacaville, CA. 95688
QualificationsWorking knowledge of managing a small business
Leadership experience
Computer Skills – MS Word, Excel, and More
Professional1996-CurrentT.C.SepticVacaville, CA
ExperienceDirector of Operations
- 3/1990 to Current – Provide direction and supervision for the day to day functioning of all operations. Direct supervision of all employees. Develop and implement new policies and procedures, Oversight of human resources. Stand in for CEO in his absence.
- 1980 to 1990 (Office Manager) – Oversight of all business functions including but not limited to accounts payable, accounts receivable, payroll, human resources, contracts, audits, insurance and supervision of administrative personnel.
Education1985 – 1990Sac StateSacramento, CA
BA Degree – Business Graduated with honors(3.9 GPA)
Additional January 2003
Computer Courses – MS Word, MS Excel
4.0Financial Plan
T.C Septic is currently and has been a profitable business since it opened their doors. This company only has three other liabilities and those include, Mortgage on our commercial land, and two leases not to exceed $50,000.T.C. Septic is hoping to raise $200,000 for the purpose of obtaining 50-100 portable toilets with fencing, a 5,000 gallon tanker trailer,and green products for our customers.
4.1 Financial StatementASSETS / Amount / LIABILITIES / Amount
Cash in this Bank / 12,000 / Accounts Payable
Cash in other Banks (Detail)
Savings / 6,000 / Notes Payable to this Bank / 0
Notes Payable to Others (Sched. 7) / 0
Income Taxes Payable / 0
Accounts Receivable / 47,000
Other Taxes Payable / 0
Notes Receivable (Schedule 1) / 0
Mortgages & Deeds of Trust Owned (Schedule 2) / 0
Securities Owned (Schedule 3) Fidelity / 8,000 / Loans on Life Insurance (Sched. 4) / 0
Cash Surrender Value of Life Insurance (Schedule 4) / 75,000 / Mortgages on Liens or Real Estate (Sched. 6) / 125,000
Real Estate (Schedule 5) / 300,000 / Installment Contracts Payable
Automobiles (Description and Value) / Financial Pacific / 20,000
2000 Ford F250 / 17,000 / Sterns Bank / 23,000
2005 Nissan Quest / 31,000 / Other Liabilities (Detail) / 0
Personal Property / 58,000
see attched document for details
Other Assets (Detail) / TOTAL LIABILITIES: / 168,000
NET WORTH: / 386,000
TOTAL ASSETS: / $554,000 / TOTAL / $554,000
ANNUAL INCOME / Amount / ANNUAL EXPENDITURES / Amount
Annual Gross Income / 250,000 / Property Taxes/Assessments / 3,000
Income and Other Taxes / 8,000
Dividends / x / Mortgage Payments & Interest / x
Interest / x / Other Contract Payments AMERICAN GEN. / 6,960
Rentals / 36,000 / Insurance / 3,000
x / Living Expenses / 6,000
Alimony, child support/maint. / x
Other / x
Other
TOTAL INCOME / $286,000 / TOTAL EXPENDITURES / $26,960
4.2 Current List of Assets
EQUIPMENT EST. VALUE
1994 FORD PUMP TRUCK$30,000 D1
1993 WHGM WGM$35,000 D2
1989 PETERBILT 379 $15,000 D9
1991 PETERBILT 357$20,000 D10
2000 PETERBILT 379$60,000 D11
2000 TRAILMAX TRAILER $15,000
1991 RELIANCE TRAILER$15,000
1983 STAR TRAILER$15,000
CAT 257B$20,000
CAT BACKHOE$50,000
LOADER$18,000
FORD UTILITY TRUCK$15,000
$308,000
Property
Office/Land$1.3 Million
Tools and Supplies
Power tools$200,000
Shop Machinery$150,000
Supplies$100,000
$450,000
T.C. Septic Total list of assets:$1,758,000.
4.3Projected Income chartGreen-Income
Blue-profit
4.4 Projected Income by Month chart for 2011
continuedJanuary / -1112 / 9287 / 8,175
February / -1393 / 11063 / 9,670
March / 1594 / 8428 / 10,022
April / 20087 / 7403 / 27,490
May / 13343 / 4289 / 17,632
June / 30020 / 11858 / 41,878
July / 14748 / 19340 / 34,888
August / 4930 / 5426 / 10,356
September / 8031 / 17319 / 25,350
October / 4922 / 16296 / 11,374
November / 25387 / 14906 / 40,293
December / 812 / 9627 / 9,627
Profit / Expense / Income
4.5 Projected Financials at a glance for 2011-2013
Ordinary Income/Expense
20112012 2013
Total Job Income
Backhoe/Tractor Work6301,330 3,215.00
Septic240,633 354,716 477,485.00
Portable Toilets3,415 5,037 8,512.00
Total$244,678.00$361,083.00 489,212.00
Cost of goods sold
Equipment rental for jobs0 0 0
Job materials purchased20,562.0022.932.00 26,000.00
Sub contractors expense12,640.003,291.00 10,000.00
Salary05,360.00 30,000.00
Total COGS33,202.00 21,583.00 66,000.00
Gross Profit211,476.00 339,500.00 423,212.00
Expense
Advertising2,174.009,000.00 6,000.00
Auto and Truck Expenses1,367.681,000.00 1,000.00
Bank Service Charges122.44200.00 200.00
Business Lisences and Permits7,232.001,500.00 3,801.00
Waste Discharge Fee’s6,800.0013,045.00 15,000.00
DMV7,535.009,647.00 6,700.00
Drug Testing99.0099.00 99.00
Fines10.00881.00 1,000.00
Fuel29,386.0046,000.00 61,000.00
Garbage830.961,000.00 1,000.00
Insurance Expense14,746.0022,000.00 24,000.00
Medical75.00200.00 200.00
Office Supplies1,591.002,000.00 3,500.00
Professional Fee’s574.00500.00 500.00
Rent Expense19,601.0019,024.00 19,396.00
Repairs & Maintenance2,937.005,242.00 10,000.00
Telephone Expense3,054.006,000.00 7,800.00
Utilities2,450.002,000.00 2,700.00
Total Expense100,585.08 139,338.00 163,896.00
Net Ordinary Income110,890.92 200,162.00 259,316.00
Other Income and Expense
Sales Tax285.15420.59 710.75
Other Expenses
Legal Fee’s 2,275.00250.00 250.00
Brokers Fee2,346.005,966.00 12,000.00
Total Other Expense4,906.157,057.18 12,960.75
Net Income105,984.77 183,104.82 246,355.25
5.0 Capital Required
T.C. Septicwill be needing $200,000 in order to become an even more profitable company. Our company is well know and a well established Business as it is and will have no problems repaying the loan, as you are well aware from earlier findings T.C. Septic makes well over their margin and takes pride in everything that they do. Here is the list of Items we will need to obtain and move forward with our plan.
100 Portable Toilets$7,000.00
Truck & Tankfor pumping$50,000.00
Fencing for rentals$100,000.00
Bio-Green Product$43,000.00
6.0 Marketing Plan
T.C. Septic Inc. has an opportunity to entrench its competitive position in the septic industry market by selectively focusing on certain major target areas. Our company has already had experience in servicing such clients and we believe that there is a growing demand for reliable septic service solutions in this customer segment.
6.1Marketing Segment and strategy
T.C Septic Inc. will focus on its marketing budget on a selected few targets that will help strengthen the company’s reputation of a reliable septic service and will generate favorable referrals. The market segmentation is divided into the leading target markets. All marketing strategies will include an add in the local newspapers, and yard signs posted in town and in the country.
The local newspapers that will we target for advertisement space are:
- The Daily Republic
- The Vallejo Times-Herald
- The Reporter
- The Winters Express
- The Daily Democrat
- The Napa Registrar
The cost of this space varies with each newspaper, however the average is close to $60 to $100 a month for a small add in the business section. The yard signs will be posted in the busy intersections in town and the entrances and exits in the country. The yard signs will include our name and number with some of the major services that we provide. The cost for the yard signs are $7 each and we will obtain 50 every three months for a total of $350 every three months, $1400 a year.
The division below reflects the differences in marketing strategy that will be used to target each different market.
Restaurants:Send a Brochure/Flyer
Realtors:Email a Brochure/Flyer to the Realtors association to email to all realtors in Solano, Napa, and Yolo County.
Construction:send flyer with our trucking rates, along with our low flat rate prices
Vineyards: send mailer or flyer
Residentials:send mailers with coupons and brochures
6.2 Marketing Plan Analysis
This Market analysis chart is T.C Septic Inc. expected growth from 2010 to 2013Market Analysis Chart:
Target / Growth / 2010 / 2011 / 2012 / 2013
Restaurants / 10.00% / 56,000 / 61,600 / 67,760 / 74,536
Realtors / 8.00% / 32,000 / 34,560 / 37,325 / 40,311
Construction Company / 10.00% / 188,000 / 206,800 / 227,480 / 250,228
Wineries / 15.00% / 13,000 / 14,950 / 17,193 / 19,772
Unincorporated / 20.00% / 50,000 / 60,000 / 72,000 / 86,400
Total / 0.12% / 339,000 / 377,910 / 421,758 / 471,247
6.3 Competition
Competitive threats come from one other septic company in the Solano County area. There are 4 other septic companies in Yolo and Napa County, and a few that come from the greater Sacramento area that really cannot compete in this area with our prices since they are so far out of the area. In Solano County alone there are 10,500 residential homes that have septic systems. Well over a thousand restaurants in our area, over sixty Vineyards and thousands of realtors and construction companies that could use our services.
7.0 Location Analysis
T.C. Septic Inc. is located in the rural part of Solano County right in the middle of the Counties that we serve. We currently have two dump sites. 1)Oakland(EBMUD) which is 45 minutes from site that we will travel only with the large tankers to dump large quantity for less dump fee’s 2) Vacaville(Easterly Waste Water Treatment Plant.)10 minutes from site where we will only dump smaller quantity.
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