Christina Johnson created company business plan for RCW Construction that landed the approval of the owner's lender for the construction of Southern Dance Theatre.
1. BUSINESS PLANBUSINESS PLAN
April 2007April 2007
RCWRCW
CONSTRUCTION & CONSULTING, LLCCONSTRUCTION & CONSULTING, LLC
4374 JUNIPER TERRACE, BOYNTON BEACH, FL 334364374 JUNIPER TERRACE, BOYNTON BEACH, FL 33436
Tel: 561-374-9990Tel: 561-374-9990 ∗∗ Fax: 561-375-9821Fax: 561-375-9821
Personalized Service in the Construction IndustryPersonalized Service in the Construction Industry
Managing – Contracting – ConsultingManaging – Contracting – Consulting
MEMBERSMEMBERS
Robert WriedenRobert Wrieden
Managing Member, C0-CEO, CFOManaging Member, C0-CEO, CFO
4374 Juniper Terrace4374 Juniper Terrace
Boynton Beach, FL 33436Boynton Beach, FL 33436
561-809-7892561-809-7892
bob@rcwconstruction.netbob@rcwconstruction.net
Christina WriedenChristina Wrieden
Managing Member, C0-CEO, COOManaging Member, C0-CEO, COO
4374 Juniper Terrace4374 Juniper Terrace
Boynton Beach, FL 33436Boynton Beach, FL 33436
561-767-0978561-767-0978
chris@rcwconstruction.netchris@rcwconstruction.net
PREPARED by ROBERT and CHRISTINA WRIEDENPREPARED by ROBERT and CHRISTINA WRIEDEN
RCWRCW
CONSTRUCTION & CONSULTING, LLCCONSTRUCTION & CONSULTING, LLC
2. MISSION STATEMENTMISSION STATEMENT
TO OFFER PERSONALIZED SERVICE IN THE CONSTRUCTION INDUSTRY,TO OFFER PERSONALIZED SERVICE IN THE CONSTRUCTION INDUSTRY,
THROUGH MANAGING, CONTRACTING AND CONSULTING AND IN THE BESTTHROUGH MANAGING, CONTRACTING AND CONSULTING AND IN THE BEST
INTEREST OF OUR CLIENTS.INTEREST OF OUR CLIENTS.
VISION STATEMENTVISION STATEMENT
RCW CONSTRUCTION AND CONSULTING HAS A VISION TO BE THE PREMIERRCW CONSTRUCTION AND CONSULTING HAS A VISION TO BE THE PREMIER
BUILDER IN PALM BEACH COUNTY WHO CATERS TO THE COMMUNITY AND THEBUILDER IN PALM BEACH COUNTY WHO CATERS TO THE COMMUNITY AND THE
SMALL BUSINESS OWNER. WITH THE BEST INTEREST OF OUR CLIENTS ANDSMALL BUSINESS OWNER. WITH THE BEST INTEREST OF OUR CLIENTS AND
THEIR BUILDING NEEDS, RCW WILL FULLFILL A NEED FOR THE LAYMAN WHOTHEIR BUILDING NEEDS, RCW WILL FULLFILL A NEED FOR THE LAYMAN WHO
DOES NOT HAVE A CONSTRUCTION BACKGROUND AND WHO LIKELY NEEDS ADOES NOT HAVE A CONSTRUCTION BACKGROUND AND WHO LIKELY NEEDS A
CONTRACTOR WHO IS LOOKING OUT FOR THE OWNER’S BOTTOM LINE AS WELLCONTRACTOR WHO IS LOOKING OUT FOR THE OWNER’S BOTTOM LINE AS WELL
AS THE PERSONAL BUILDING NEEDS OF THE OWNER. PERSONALIZED SERVICEAS THE PERSONAL BUILDING NEEDS OF THE OWNER. PERSONALIZED SERVICE
WITH AN EMPHASIS ON EDUCATING THE OWNER AND ANTICIPATING HIS ORWITH AN EMPHASIS ON EDUCATING THE OWNER AND ANTICIPATING HIS OR
HER NEEDS AS WE HOLD THEIR HAND IN A JOURNEY THAT CAN BE DAUNTINGHER NEEDS AS WE HOLD THEIR HAND IN A JOURNEY THAT CAN BE DAUNTING
AND FRUSTERATING TO THOSE NOT IN THE CONSTRUCTION INDUSTRY BUTAND FRUSTERATING TO THOSE NOT IN THE CONSTRUCTION INDUSTRY BUT
NEEDING THE SERVICES OF A CONSTRUCTION CONTRACTOR. SPECIALIZEDNEEDING THE SERVICES OF A CONSTRUCTION CONTRACTOR. SPECIALIZED
AND VALUE ADDED SERVICES ARE THE NORM AT RCW CONSTRUCTION ANDAND VALUE ADDED SERVICES ARE THE NORM AT RCW CONSTRUCTION AND
CONSULTING!CONSULTING!
Personalized Service in the Construction IndustryPersonalized Service in the Construction Industry
Managing – Contracting – ConsultingManaging – Contracting – Consulting
TABLE OF CONTENTSTABLE OF CONTENTS
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Executive Summary………………………………………………………………………………
The Business………………………………………………………………………………………..
Legal Structure
Office Location
Attorney
Services Provided
Management
Personnel
Methods of Record Keeping
Insurance
Security
Legal Documents………………………………………………………………………………….
3. Articles of Organization
Certificate of Status
Operating Agreement
Company Information Sheet
Member Certificates
General Contractor License
Qualified Business License
Local Business Tax Receipt
Liability Insurance
Workers Compensation Insurance
IRS EIN
Marketing…………………………………………………………………………………………..
Target Market
Competition
Advertising
Financial Information………………………………………………………………………………
Summary of Finance/Banking
Certified Public Accountant
Bonding Agent
Wachovia Letter
Cash Flow Statement
Balance Sheet
P & L
Personal Resume………………………………………………………………………………..
Letters of Recommendation………………………………………………………………….
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
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RCW Construction and Consulting is an LLC that brings to the market the
core business of construction management and contracting along with
considerable experience for owner representation through the personalized
service of a general contractor and the efficiency of a business consultant.
RCW Construction is a company that specializes in contracts in the
commercial industry that range from a half a million up to three million dollars.
The company desires to stay with in these parameters so that it can be true to its
mission statement in providing a personalized service to its clients. We intend
for our clients to be as proud of the buildings being constructed as we are to build
them. Developing a relationship with owners that goes beyond the typical
corporate style of profit only driven mechanisms is what our company looks
forward too. RCW Construction is different in that we feel the industry has more
to offer than red tape, bricks and mortar, but rather something special. We hold
the owners hand, walk them through the ins and outs and anticipate the owner’s
4. needs and questions and provide answers and alternatives that are in the owners
best interest. We watch out for the owners back and their bottom line. RCW
Construction and Consulting also has a vision to have a work environment that
awards employees for exceptional work. We look forward to low turnovers and
quality, insightful production. In addition, our subcontractors are required to
have demonstrated sound business practices and be professional and fully
insured. Of course, RCW Construction and Consulting intends to be very
profitable as that is the hallmark of a job well done. The two founders of this
business have acquired the expertise in their professional careers through many
years of experience in the business world and practical applications to insure that
we can meet these needs.
Robert (Bob) Wrieden is a state licensed General Contractor and has over
26 years of building experience. His background includes constructing smaller
tenant build out office spaces, commercial buildings, hotel high rises, and large
scale residential apartment complexes and resorts. Bob is well known in the
industry as the one to call on to fix a major construction problem or to bring a job
that is far behind schedule in on time. His knowledge in value engineering his
tough negotiating skills have saved large and small companies big fortunes. He
has built projects in nearly every city and county in the tri-county area and is well
versed in the various city requirements. Finally, when it comes to scheduling and
completing the job on time, Bob is not only respected but has made many share
holders quite pleased. Bob oversees estimating and contract negotiation as well
as quality construction and the personal interaction that is required to meet the
needs of our future clients.
Christina recently left law school in order to partner in RCW Construction
as the operational side of the business. She brings strict core ethics and her
master in efficiency and research skills to insure a successful business. She
establishes the operational procedures, employee handbooks, human resources
and insurance. She will also be overseeing accounts payable, receivables, leads,
advertising, marketing, purchasing, and payroll. Christina’s background in
Public Administration has given her the experience in dealing with city officials.
Her tenacity and legal background make way for educated decisions that are a
necessity for a successful business. And finally, her experience as a President and
Treasurer of different non-profit entities have added to her abilities to foresee
pitfalls. One of Christina’s insistences is that RCW Construction have a high
credit rating and be well known as a professional company with high expectances
and quality relationships in the construction industry.
RCW Construction and Consulting is financed initially by the two
founders. A capital investment of $100,000.00 will provide the startup and
carrying cost of the company. In addition, the company has available a line of
credit of $231,000.00 for additional carrying cost if needed to complete
construction. Because the risk is solely on the two founders whom have
personally invested their own money and secured the LOC with their personal
home, it is assured that the owners of this company are serious business persons
who will work in everyway to insure the success of the business. While it is
intended to move the Line of Credit into the business name, it is also the hopes
the business will be self-sufficient and not need the use of the loan. The loan
5. terms are one half percent below prime for the life of the loan. The founder’s
personal credit is also outstanding and they have no debt except a first mortgage
on their home.
6. THE BUSINESSTHE BUSINESS
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LEGAL STRUCTURELEGAL STRUCTURE
RCW Construction and Consulting is an LLC organized in the state of Florida on
April 19, 2007. The company is a S-Corporation strictly for IRS tax purposes
with flow through tax advantages and the protection and rights of a corporation
with the benefits of a partnership.
OFFICE LOCATION & CONTACTOFFICE LOCATION & CONTACT
RCW Construction and Consulting, LLC
4374 Juniper Terrace, Boynton Beach, Florida 33436.
Phone: 561-374-9990, Fax: 561-375-9821.
Robert Wrieden’s mobile 561-809-7892,
Christina Wrieden’s mobile: 561-767-0978.
Additionally, satellite offices located in trailers on some construction sites will be
in the future with additional temporary phone lines.
ATTORNEYATTORNEY
Jack S. Cox, P.A. Located at 4400 PGA Blvd., Palm Beach Gardens, Florida 33410
Phone: 561-627-5605, Fax: 561-624-0856. Jack Cox is a corporate attorney who
has given us advice in the past. He comes highly recommended by other business
in the construction industry.
SERVICES PROVIDEDSERVICES PROVIDED
The company will provide contracting services in the commercial sector with the
cost of each job ranging between $500,000 and 3 million for new construction
and under $500,000.00 for remodeling. The company may contract as an owner
representative or as a qualifier for another business. The company may be hired
as a consultant for another construction firm or owner and may be hired for
estimating services or as an expert witness.
MANAGEMENTMANAGEMENT
The LLC is member managed. Therefore, it will be directly managed by its’
owners. The company’s organizational chart is as follows:
Robert Wrieden
Co-CEO, CFO
Christina Wrieden
Co-CEO, COO
7. PERSONNELPERSONNEL
As the company grows, the above chart will be further broken down but the
owners will still oversee the same territories. As more contracts are awarded,
more superintendents will be needed and an administrative assistant will be
added as well. Employees salaries are dependant upon skills and experience but
approximate compensation for superintendent will be $70,000 and for
administrative assistant $35,000. Owners salaries are entirely negotiable and is
completely dependant upon the success of the company. The company plans to
pay a minimum salary per year of $150,000 and a maximum of $250,000 per
year to the owners total. The company plans to add a minimum of $100,000 in
company equity each year and increase this amount as the company grows.
METHODS OF RECORD KEEPINGMETHODS OF RECORD KEEPING
Accounting will be accrual method of accounting. Christina Wrieden will be the
initial bookkeeper. Software in use is Quickbooks Contractors Premier Edition.
Aside from traditional accounting this software keeps track of all projects to date
and subcontractor insurance expirations. This software is an excellent tool for
analyzing the contracting business. Audited statements shall be available via our
Certified Public Accountant when required. As the business grows, some
bookkeeping may be contracted out.
INSURANCEINSURANCE
The company’s Insurance Consultant is Roy Marcus of Marcus Consulting, 7777
Glades Rd. #217. Boca Raton, FL 33434. Phone: 561-558-8889, Fax: 561-558-
8891. The company will carry statutory Workers Compensation Insurance on its
employees and General Liability Insurance with an aggregate of 2 million in
coverage. Average cost for General Liability $11,500 on a job of 1.3 million.
Additional jobs will increase the cost of this insurance.
SECURITYSECURITY
Estimating
Contracts/Leads
Project Management
On-site staff
Subcontractor Agreements
Scheduling
Accounts Payable/Receivable
Advertising/Marketing
Operating Procedures
Human Resources
Purchasing/Computing
Research/Legal Compliance
Insurance
In house staff
8. All projects will be kept secure during the building process either by security
fencing and by roving security at night when there is valuable equipment on a job
or alarm systems or other means of protecting the owner and the property.
10. MARKETINGMARKETING
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TARGET MARKETTARGET MARKET
At this time, as a contractor, the company wishes to stay local with an emphasis
on community pride and services. The company plans to target warehouses,
theaters, churches, small hotels, restaurants, banks and large independent stores.
After a two-year period, the company plans to target the public sector as well in
building similar sized projects such as fire stations and governmental offices. As a
consultant the company will target other firms needing a qualifier and attorneys
and insurance companies that are in need of consultants and expert witnessing.
The company plans to construct 1.5 million in sales in its first year of business.
COMPETITIONCOMPETITION
While the residential market is poor, the commercial market shows no signs of
slowing down. By targeting our business to the smaller commercial projects with
personalized service we develop a niche market that is not being represented.
Too many companies try to spread themselves to thinly over a large market area.
This is not our goal and it is what is going to make us successful. At the point
when the company targets the public sector, being a 51% female owned company
will allow for the company a larger market share of the available work.
ADVERTISINGADVERTISING
After careful research and deliberation, the company plans to advertise through
several different vehicles. We believe the company’s money will be best spent on
the following types of marketing:
• Networking with trade associations-Our local trade associations can
provide a better networking experience than the state and national
associations. Our money is best spent at this level.
• Signage, bill boards, and branding with particular use of our slogan,
personalized service in the construction industry, and other such slogans
such as who’s looking out for your bottom line and who’s watching your
back. The company’s colors are steel blue and teal. Branding in every
possible way, through letterheads, on checks, thank you letters, news
advertisements and the like.
• Public Relations campaign, news coverage and word of mouth—ribbon
cutting ceremonies and society news, every opportunity to get our name in
the papers. Volunteer for events, charity events, radio. Contractors
BlueBook. Enter and compete for construction industry awards.
THREE-YEAR INCOME PROJECTIONTHREE-YEAR INCOME PROJECTION
11. Year 1 Year 2 Year 3
Gross Sales 1,500,000.00 3,000,000.00 4,500,000.00
Income 150,000.00 200,000.00 250,000.00
Equity 0 75,000.00 125,000.00
Beginning Balance 4/19/07
4/19/2007 Equity Balance $100,000.00
4/19/2008 Equity Balance $100,000.00
4/19/2009 Equity Balance $175,000.00
4/19/2010 Equity Balance $300,000.00
THREE YEAR ACTUALTHREE YEAR ACTUAL
Year 1 Year 2 Year 3
Gross Sales
Income
Equity
Beginning Balance 4/19/07
4/19/2007 Equity Balance $100,000.00
4/19/2008 Equity Balance $
4/19/2009 Equity Balance $
4/19/2010 Equity Balance $
12. FINANCIAL DOCUMENTSFINANCIAL DOCUMENTS
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SUMMARY OF FINANCE/BANKINGSUMMARY OF FINANCE/BANKING
Please see current Financial Statements regarding the financial position of the
company at any one point in time. Also see the company Dunn and Bradstreet
Ratings.
CERTIFIED PUBLIC ACCOUNTANTCERTIFIED PUBLIC ACCOUNTANT
The company’s CPA is Jay Pereira of Pereira & Associates. Located at 123 NW 13th
Street, STE: 308, Boca Raton, FL 33432. The company was selected due to its
niche market serving the construction industry with accounting services.
Approximate cost for yearly audited statements on a quarterly basis and year end
taxes is $8,000.00. The company will begin the use of the services at the time the
company is required to provide audited statements.
BONDING AGENTBONDING AGENT
Our Bonding agent is Brett Rosenhaus of Nielson, Rosenhaus & Associates.
Located at 4000 South 57th
Avenue, STE: 201, Lake Worth, FL 33463.
Phone: 561-432-5550, Fax: 561-432-5442. The company was selected due to its
niche market dealing exclusively with the construction industry. Approximate
bonding cost depend upon the cost of the job and the length of time the business
is established. As a new company with excellent credit and experienced
background, it is our hope that a bond is not required in order to keep cost down
for all involved.
13. RESUME &RESUME &
LETTERS OF RECOMMENDATIONLETTERS OF RECOMMENDATION
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