1. Non-Disclosure and Confidentiality Agreement
The undersigned ("Recipient") hereby agrees that all financial and other information
("Information") that it has and will receive concerning Erosion Patrol is confidential
and will not be disclosed to any individual or entity without prior written consent.
The Information shall remain the property of Erosion Patrol and shall be returned to
Erosion Patrol promptly at its request together with all copies made thereof.
Recipient acknowledges that no remedy of law may be adequate to compensate
Erosion Patrol for a violation of this Agreement and Recipient hereby agrees that in
addition to any legal or other rights that may be available in the event of a breach
hereunder, Erosion Patrol may seek equitable relief to enforce this Agreement in any
Court of competent jurisdiction.
_______________ ________________________________
Date Signature
This is a business plan and does not imply an offering of securities.
2. Contact Information:
Monica Carpenter, Owner
Carol Meder, Owner
Christy C. Carpenter, Owner
Erosion Patrol
614 Alison Dr.
Largo, FL 33771
This document contains confidential information. It is disclosed to you for
informational purposes only. Its contents shall remain the property of Erosion Patrol
and shall be returned to Erosion Patrol when requested.
This is a business plan and does not imply an offering of securities.
3. Table of Contents
1. Executive Summary 1
Business Opportunity
Product/Service Description
Current Business Position
Financial Potential
The Request
2. Company Background 3
Business Description
Company History
Current Position and Business Objectives
Ownership
3. Services 6
Service Descriptions
Competitive Comparison
Service Delivery
Research and Development
4. The Industry, Competition and Market 10
Industry Definition
Primary Competitors
Market Size
Market Growth
Customer Profile
5. Marketing Plan 12
Competitive Advantage
Pricing
Distribution Channels
6. Operating Plan 14
Location
Facility
Operating Equipment
Suppliers and Vendors
Personnel Plan
General Operations
7. Management, Organization and Ownership 19
Management/Principals
Organizational Structure
Professional Consultants
Ownership and Boards
4. 8. Goals and Strategies 21
Business Goals
Keys to Success
Future Plans
9. Financial Assumptions 23
Assumptions
10. Appendix 28
Income Projection
Expense Projection
Profit & Loss
Balance Sheet
Cash Plan
Ratio Analysis
5. 1. Executive Summary
Erosion Patrol will become a leading provider of erosion control services in the
state of Florida. Our strategy will be based on a continuing improvement process
of providing quality services, setting goals, growing with the market, and
measuring our results through feedback to facilitate further growth and progress.
Erosion control is important in the construction industry because of the EPA. The
U.S. Environmental Protection Agency (EPA) developed the National Pollutant
Discharge Elimination System (NPDES) storm water permitting program in 1990.
This permitting program created regulations for construction projects. It
addresses sites that are considered large construction activity (disturbs more than
5 acres of land) and small construction (disturbs between 1 and 5 acres). The
NPDES created BMP's (Best Management Practices) to slow water runoff and stop
sediment from polluting the earth's waterways. These various erosion control
practices protect the environment from the effects of construction site runoff.
Our company will install, inspect, maintain and remove these devices.
Erosion Patrol is a company that will have a home office located in Largo, Fl. The
company's management is highly qualified: the sisters who lead the management
team have a combined twenty years of experience in the construction and business
industry, and their third partner is a highly qualified finance officer.
1.1 Business Opportunity
Erosion Patrol has a huge business opportunity to succeed in this market. The
erosion control industry has very few competitors and most of these
competitors do not advertise or promote their business effectively. There are
few competitors that are certified as a Disadvantaged Business Enterprises
(DBE) or a Minority and Women Owned Business (MWBE) for Federal, State, and
Local Government agencies. The owner, who is an Engineer, has been able to
build close relationships with contractors from her past and still maintains
these relationships presently. The company will continue to build new
relationships with local, statewide, and national contractors, architects and
residential builders. Also, the owner, who is a business leader, is an expert at
marketing and networking. She will continually be trying new angles for
capturing a greater clientele. Erosion patrol will quickly become a market
leader in the State of Florida.
6. 1.2 Product/Service Description
1.3 Current Business Position
Monica Carpenter, an experienced civil engineer, Carol Meder, an experienced
financial manager, and Christy Carpenter, a business and marketing executive,
founded Erosion Patrol as a Limited Liability Company in 2009. The company
will secure financing based on the solidity of our business plan and projected
numbers. The owners will invest a total of $10,000 in assets. Monica
Carpenter will invest $5600. She has a 2000 Toyota 4 Runner that the company
will be using in the field. She will also be contributing office supplies and her
computer. Carol Meder has already invested $2500 in cash. The money has
been used for website development, LLC creation, training and travel. Christy
Carpenter Carpenter’s initial investment is $1900. She has contributed the use
of her 2003 Ford Expedition as well as her computer and software. The
company will be seeking an initial cash loan of $25,000.
Through their years of experience, Erosion Patrol's
owners have learned and implemented business,
construction, and financial ideas and projects into their
careers. The company will use versatile and completely
adaptable methods for a variety of erosion control
configurations. The company's method of using
innovative technology and continuing education will
enable owners, developers, construction managers, and
general contractors to see substantial savings in labor
and materials.
Erosion Patrol will provide a peace of mind for our
customers by being responsible for all sediment runoff
on the construction project. Our efficiency in which we
place our products, by using products that are quick to
install and easy to maintain, will enable our customer to
break ground in a timely manner. Products such as silt
fence, synthetic hay, and rock bags can create a
multitude of BMPs. BMPs come in the form of silt fence
barrier filter socks, rock bags, inlet sediment trap, and
temporary check dam. Our responsibility of maintaining
our weekly reports will set the customers mind at ease
and allow for their attention to be on other crucial
project issues. Our ability to manipulate technology and
software systems will make our reports accurate and
clear. Transparency is very important and our advanced
use of technology will allow our clients to see the
project as it unfolds. Our knowledge of the field at hand
will allow our crews to install our products correctly and
efficiently the first time and minimize erosion problems
created by inaccurate installation of BMPs. We will also
employ a maintenance program as part of the agreement
to ensure the soil remain secure throughout the entire
project.
7. 1.4 Financial Potential
As federal money enters the industry, it will bring more construction projects.
The majority of these road contracts will require some form of erosion control.
Due to federal money being involved there will be a DBE requirement set forth
by the contract. Erosion Patrol plans to rapidly develop marketing alliances
with industry leaders. We will also be pursuing new sales of services to
residential and commercial builders. The marketing strategy will focus on
securing city, county, state and federal government contracts.
1.5 The Request
The following table describes our start-up requirements. One of our biggest
start-up expenses involves equipment, initial inventory, and the initial rent and
deposit of a warehouse/office building.
EROSION PATROL START-UP FUNDING & EXPENSES
Explanations
Start-Up Cash
Monica Carpenter 56% Owner 5,600 Investing Office Materials, Vehicle usage, and computer
Carol Meder 25% Owner 2,500
Initial set up for website, business plan, training, &
travel
Christy Carpenter 19% Owner 1,900 Investing computer and vehicle usage
Loan Proceeds 25,000 Business Loan
Real-Estate Loans
Total Source of funds 35,000
Start-Up Expenses
Security Deposits
Storage Facility Rent 500 5 months of storage rental
Telephone & Internet Deposit 1,000 Initial phone contract including mobile internet
Total Security Deposits 1,500
Other Costs
Opening Inventory 3,600 Min 20,000' @ $15.50 per 100'= $3100 + $500 shipping.
Capital Expenditures
Computer Equipment 1,200 Owner's own two laptops to put towards the company
Equipment & Machinery 5,500 Purchase of a new trencher, drill, inverters and ect.
Vehicle 5,800
2000 Toyota 4 Runner, Monica Carpenter, Owner
2001 Ford Expedition, Christy Carpenter, Owner
Furniture & Fixtures 500 Desks, chairs and lamps
Total Start-Up Capital
Expenditures 11,800
8. Start-Up Expenses
Accounting Fees 250 Consultant to look over Quick Book Start-up
Federal Tax ID - Already Obtained
Insurance 1,000 Bond Insurance, Rent insurance, Business Insurance
Legal & Consulting Fees 250 Lawyer to look over LLC paperwork and documents.
Marketing 750 See Marketing Spreadsheet
Office Expense 500 Purchase copy/fax/print machine
Office Supplies 500 Pens, pencils, paper, and supplies for brochures
Salaries & Wages 6,200 Novembers operating expense
Payroll Taxes 334
Pre-opening Advertising 500
Sales Tax Permit - N/A
Technology Fee 1,000
Other Start-Up Expenses 1,950 Operating Expenses for November
Total Start-Up Expenses 13,234
Total Start-Up Expenditures 30,134
2. Company Background
The founders of Erosion Patrol have many years of experience in the construction
and business industries. Monica Carpenter's construction experience provided the
environment that led to her realization that consumers desire an erosion control
subcontractor with DBE certification. Christy Carpenter’s business experience
enabled them the insight into how a successful business operates and the do's and
don’ts of business. Carol Meder's knowledge of money and balancing books will
give the company the financial structure that a successful business requires to
operate. We plan to enhance our financial management abilities by utilizing an
industry professional with over 20 years experience in the field on a contract
basis. With positive feedback from known construction companies, the founders
decided to move forward with their concept. Monica left her former place of
employment and started working on putting their plan into action in June, 2009.
Christy is presently employed as the VP of Operations at TODL.com in Clearwater,
Fl.
2.1 Business Description
Erosion Patrol is a LLC registered company in Florida that provides Erosion
control services to government contractors, public contractors and building
contractors. As an added service Erosion Patrol will provide maintenance of
installed products to ensure that soil does not leave the job site. We plan to
market our service statewide to large and small contractors of all types that
need this service provided. Erosion Patrol will begin by being a certified
DBE/WBE in the states of Florida and Georgia. Certification will allow the
company to offer our clients assistance with their necessary federal percentage
of DBE participation. The initial target market is Florida and Georgia
9. contractors. Future plans include expansion into Alabama, South Carolina,
Ohio, Michigan and where market research indicates a need.
2.2 Company History
The principals began research into the need for erosion control within the
construction industry in the summer of 2008. A Limited Liability Company with
the name Erosion Patrol, LLC was established in Florida in August 2009. The
company has completed the necessary registration with the State of Florida
and with the IRS to enter full scale operations.
Monica Carpenter realized that she would like to own and operate her own
business while managing a project for the DOT in Georgia. After shadowing a
similar business on one of her projects, she ran the numbers and realized that
this would be a great business opportunity. She consulted her sister, who has
the education to run a small business, and together they decided that this may
be the exact specialized field to start their own business. After 6 months of
research into the field and competition, the company decided that their
competitive advantage would be the Federal DBE certification and 6 months
after opening having an office located in a SBA HUB Zone. The company can
use these advantages to slowly build their business based on innovative and
outstanding service to eventually change our competitive advantage based on
solely our trade name.
Solid business plan and project spreadsheets were created to completely plan
out the first 3 years of the business. Based on our present market research and
suppliers quotes, we were able to modify and change our profit and loss
statement to reflect an almost flawless financial assumption. Equipment
purchase prices have already been negotiated. We also have a local supplier to
reduce the cost of necessary product shipping.
2.3 Current Position and Business Objectives
In order for Erosion Patrol, LLC to begin operations, the company needs to
secure office space, equipment, advertising funds, and several weeks' worth of
working capital. Upon successfully securing of funds, Erosion Patrol, LLC will
begin purchasing necessary equipment and immediately launch our advertising
campaign. The pool of staff that we have in reserve will be officially hired and
work will commence.
The company's goal is to be recognized as a state-wide leader in erosion control
services for the construction industry. With no dominant player (DBE/WMBE) in
the Florida market, Erosion Patrol, LLC believes this goal can be achieved
within 12 months of start-up.
2.4 Ownership
The company Ownership will be shared by the President, Vice-President and
Treasurer. The current ownership breakdown for Erosion Patrol, LLC is as
follows:
Monica Carpenter (Chief Project Engineer [CPE]) = 56%
Christy Carpenter (Chief Operations Officer [COO]) = 19%
Carol Meder (Chief Financial Officer [CFO]) = 25%
10. All three owners are veterans in the business/construction industry, with a
combined 40 years of experience. Monica Carpenter and Christy Carpenter
presently reside in Largo, Florida. Carol Meder currently resides in Arizona but
plans to relocate to Florida in 2010 as the business grows
3. Services
Erosion Patrol, LLC will sell its services to clients in government, housing, and
industrial contracting. The company staff will compare the plans to an infield
evaluation, create BMP practices for the given situation, and then install, inspect,
and maintain the erosion for the project. Erosion Patrol's method of searching for
innovative cost effective solutions to project situations will create substantial
savings for our clients. The CPE will be traveling with the crew as their certified
DEP Stormwater Erosion and Sedimentation Control Inspector. This will allow
Erosion Patrol to correctly install erosion control devices the first time, every
time. Also, this will allow clients to pass the Environmental Protection
Departments inspections and continue work in a timely manner.
To enter the market with minimum overhead costs, Erosion Patrol intends on
utilizing the owner’s current relationships with contractors and the vast amount of
marketing already in place. Erosion Patrol has already created a basic website and
brochure to extend to our first wave of perspective clients.
3.1 Service Descriptions
Erosion Patrol will have an initial product supply of silt fence, with hay bales,
and rock bags as needed. These products will be used to install the various
BMP's required by customers.
Silt fence installation will be the companies initial main service offered.
This product costs an average of $0.16 per ft.
Synthetic Hay Bales are a versatile product and will be used as needed.
This product costs an average of $4 per ft.
Rock Bags are used mainly in areas where staking is not feasible. This
product costs an average of $0.25 per bag and $1.75 for gravel to fill it.
Detail Description of BMP's are attached in the appendix.
Research has already been completed into Grassing and Mulching. The
company will expand in spring 2010, to include hydro seeding and mulch as a
service provided. It is common for a silt fence company to include grassing as
one of its services. We are waiting until the spring to begin this service due to
money and the season for growing permanent grass. This service will require
more equipment and employees. Also, it will bring in more capital than the silt
fence crew alone will.
3.2 Competitive Comparison
The Federal government requires that federally funded construction projects
have a procurement goal of 5% for Women Owned Businesses. In 2007 the
percentage awarded to WBE's was 3.4149%. This figure shows that in 2007 the
11. federal government did not reach their goal by a vast 1.5851%. As federal laws
get tougher it will be even more important for the federally funded projects to
reach their goals. This fact is what gives us a definite advantage over our
competition.
See section 4.2 for competition tables.
3.3 Service Delivery
An initial field evaluation will be performed after receiving the Request for
Proposal (RFP) or Invitation for Bid (IFB) from the contractor. The field
evaluation will be our first visit to the site. It will allow our Project Engineer
to evaluate the terrain of the project limits and the storm drain system, and
determine the need for BMPs. Placement of erosion control devices, at all
needed locations is crucial to lessening the impact that the project makes on
the environment. After evaluation of the required erosion control devices an
accurate cost projection can be created to determine a loss/ profit ratio.
Once an accurate bid is created then it can be compared to our competitions
history of bids. The history of bids will allow a prior knowledge of where we
stand in the market. It will allow the bid to be adjusted as needed without
experiencing a deficit on the project or an increase for more profit if it is too
low. The bid will then be submitted to the contractor.
When awarded the contract, lines of communication will be opened
immediately. A time line will be established that works for both the contractor
and sub-contractor. Work shall begin immediately after arriving on site with
the crew, supplies and equipment. The Project Engineer will meet with onsite
personal, [contractor, traffic control supervisor, and state-federal officials] to
ensure that all devices will be required and no additional BMPs are requested.
Using the approved erosion control plans, the Project Engineer will mark the
location of the BMPs for the foreman and crew. The crew will then break
ground and as efficiently as possible, install the needed devices. As the
project proceeds, the Project Engineer will double check that the proper steps
are being taken to ensure a top quality product. With all of the erosion devices
installed, per plans, then an onsite inspection will be requested of the
contractor. With the given approval, quantities will be discussed and agreed
on. The quantities will be documented on an invoice and sent to the
contractor. Maintenance will be preformed weekly by the approved erosion
control supervisor (Project Engineer). All installed devices will be examined
for undermining, tears, failure and fullness. Proper repairs will be completed
and a report will be generated from the findings.
3.4 Research and Expansion
Research will be conducted on regularly. Erosion Patrol will collect and
evaluate industries cycles and trends. If demand requires, a second silt fencing
crew and grassing crew will be added. Tentatively scheduled we will add these
crews in the spring of 2011 and 2012 respectively. By having two crews it will
enable our company to properly cover Florida and the surrounding states.
Extensive research will be done on the retaining wall industry. Training and
licensing will be required. As soon as these are both accomplished and
marketing and financing can be implemented, then this service will be provided
12. by Erosion Patrol. Tentatively this addition is scheduled for spring of 2012.
Retaining walls have a great potential for profit. It is a highly skilled trade that
has little to no competition. There is also a great need for these structures in
construction dealing with Federal and State projects. Erosion Patrol will also
explore the demand for “go green” alternatives and implement them into our
services.
13. 4. The Industry, Competition and Market
Erosion Control is a versatile industry. Erosion control includes but is not limited
to Silt Fence, Hay Bales, Rock Bags/Filter Socks, Hydro Seeding, Retaining Walls,
Erosion Control Blankets, and Floating Turbidity Fence. Erosion Patrol will begin
by installing silt fence, synthetic hay, and rock bags/filter socks.
In the spring of 2010, The Company will add a full grassing operation in the form of
hydro seeding and blowing hay. In 2011, the Company intends on adding the
complex structural supports called Retaining walls. Erosion control is used on
every construction site that disturbs more than 1 acre of land. Silt Fence is the
cheapest, easiest to install and most widely used erosion control device. Erosion
Patrol will target this ever growing market and utilize this to our advantage.
4.1 Industry Definition
The Practice of Erosion control is to prevent sediment loss due to removal by
wind and water in areas where natural ground cover has been removed or
damaged. Without Natural ground cover, rain will rapidly wash dirt from
construction sites into storm drains and eventually into rivers and wetlands.
This sediment causes an environmental concern because build up of silt in the
waterways can affect plants and wildlife. Erosion Control is used on
construction sites, land development, and in agricultural practices. It is
accomplished by creating physical barriers to absorb the energy of the wind
and water that causes the erosion. Erosion control is important in protecting
our earth's natural resources including waterways and top soil.
As the topic of sustainability and environmental preservation become much
more relevant in our society, it will lead to more and more opportunities for
the company. The industry of erosion control was unheard of 30 years ago and
now it is regulated and controlled by the state and federal government. Our
plan to constantly stay current with new technology and demand in the erosion
control industry increases our hold on our market share for years to come.
4.2 Primary Competitors
MINORITY / WOMEN OWNED BUSINESS BIZ NET INFO (FDOT PRE REGESTURED)
BUSINESS NAME WEBSITE
UCP
CERT
STATE
CERT
UCP
CERT DISTRICTS
GIBBS-TONKEL CONSTRUCTION LLC In progress DBE OBE FDOT 7/STATE WIDE
KEVIN PUGH SITE & DOZER WORKS NO DBE OBE FDOT 3/STATE WIDE
FLORIDA GEODYNAMICS NO DBE MBE FDOT FOUR
NATURES KEEPER INC NO DBE OBE FDOT FOUR
DOWNSTREAM COMPANY NO DBE OBE FDOT TWO
CIVIL SITE CONSTRUCTORS INC NO DBE OBE FDOT SEVEN
REDD WOLF EROSION CONTROL, INC YES OBE OBE N/A TWO/FIVE
PROJECT SERVICES NO OBE OBE N/A FIVE
BIO MASS TECH INC YES OBE OBE N/A N/A
EROSION WERX, INC YES N/A
HER ENVIRONMENTAL SERVICES INC NO N/A
14. NON MWBE OWNED BUSINESS BIZ NET INFO (FDOT PRE REGESTURED)
BUSINESS NAME WEBSITE
UCP
CERT
STATE
CERT DISTRICTS
PROTECTIVE BARRIERS INC In progress OBE OBE FOUR/STATE WIDE
SOUTHEASTERN SILT & EROSION OBE OBE SEVEN
GEORGETOWN ENTERPRISES INC YES OBE OBE FIVE/STATEWIDE
GULF COAST HYDROSEED YES OBE OBE THREE
LARRY THOMAS & CO INC YES OBE OBE THREE
FLORIDA SILT FENCING, INC YES OBE OBE FIVE/STATEWIDE
SOUTHERN LAND SERVICES OF SW FL NO OBE OBE SEVEN
C & C SILT FENCING COMPANY NO OBE OBE FIVE/STATEWIDE
CLEAR ZONE MAINTENANCE INC NO OBE OBE N/A
DECORATOR MULCH, INC YES OBE OBE N/A
ESI EROSION STOPPERS, INC YES OBE OBE N/A
FLORIDA HYDROSEEDING & EROSION CONT NO OBE OBE N/A
SAYE AND SONS EROSION CONTROL INC YES OBE OBE N/A
US CONSTRUCTION PRODUCTS, INC YES OBE OBE N/A
DIXIE HAULING , INC NO N/A
LANDSAVER ENVIRONMENTAL YES N/A
ENVIRONMENTAL SITE - PREP & MAINT NO N/A
ALPHA ENVIRONMENTAL MANAGEMENT NO N/A
STORMWATER MAINTENANCE INC YES N/A
TWIN OAKS ENVIRONMENTAL NO N/A
* OBE stands for Other Business Enterprise indicating that the firm is not
certified as a MWBE in that category, however they are certified to perform
work in that category.
See appendix for full spreadsheets with greater detail.
In the MWBE chart there are a total of 11 businesses. 6 of these businesses
have a DBE certification from the FDOT. 3 of these have websites, 2 work state
wide, and 2 work solely in our district.
In the Non-DBE chart there are 14 businesses registered to work for the FDOT.
11 of these businesses have websites, 4 works statewide, 2 work solely in our
district.
Erosion Patrol will offer all of the same features that our Primary Competition
offers. The Company will offer DBE/WBE certification, Quick and Cost
Effective product Installation, as well as easy access to Erosion Patrols services
through Erosion-patrol.com. The company will quickly become an industry
leader by offering the client these and many other perks to doing business with
Erosion Patrol.
4.3 Market Size
There are thousands of Construction contractors in Florida alone. Contractors
that work on federally contracted projects will be our prime target market.
There are approximately 30 businesses that we will target with our first wave
of marketing.
15. According to the State of Florida the top revenue contractors for the
Florida Department of Transportation in 2007 were Community Asphalt
Corp, Hubbard Construction Co, Ranger Construction Industry, and
Anderson Columbia Co.
The Largest projects that are active in District 7 of the FDOT are
contracted by Flatiron-Tidewater Skanska, PCL Civil Construction, Inc,
Posen Construction Inc, The Lane Construction Corporation, and
Cornerstone Business Inc.
Tampa Bay has a few local Road work contractors that Erosion Patrol will
target: Cone & Graham, inc; Transportation Structures, Inc; Fernando
LLOP; Alford Construction; Precision Paving of Tampa, inc; and Dolphin
Construction.
Residential Builders for the Tampa area that the company will target
include Clark Caddell A Joint Venture; Turner Construction &
Development, Inc; Hammer & Howell Builders, Inc; Graystone
Construction Corporation; MK Construction Co; Universal Erectors.
Erosion Patrol has already created good relationships with prominent
construction companies in Georgia, Michigan, South Carolina and Florida.
A few of these companies are Scott Bridge, Nationwide Fence Company,
Apac, Jacobs Construction and Brooks-Berry-Haynie.
Erosion Patrol will be proud of our working relationships with our clients. A
lasting relationship with our clients will bring about more work for the future.
See appendix for more in depth chart of clients.
4.4 Market Growth
The United States of America is an ever growing country. The government is
constantly evolving the structural system of our countries roads. The ever
expanding highway system, to allow for a greater volume of traffic, is a symbol
of that progress towards the future. As the highways and byways expand, the
need for erosion control becomes even greater. The Environmental Protection
Agency is becoming more involved in the protection of the Earths water ways.
This has caused an even greater need for effective erosion control. Every job
site that disturbs more than an acre of grass requires erosion control practices
as well as a certified erosion control inspector.
4.5 Customer Profile
Our clients will consist of contractors who perform federal, state, county or
city municipality work that are required to meet DBE/MWBE percentage goal.
We will also target local commercial and residential contractors who have
small projects and need efficient services.
16. DISTRICT 7 TOP ACTIVE LARGE PROJECT CONTRACTORS FOR FLORIDA DOT
(WEST CENTRAL FLORIDA - BROOKSVILLE, CLEARWATER, DUNEDIN, LARGO, NEW PORT RICHEY, ST PETERSBURG, AND TAMPA)
COMPANY WEBSITE
Flatiron-Tidewater Skanska http://www.flatironcorp.com/
http://www.skanskausa.com/
PCL Civil Constructors, Inc. http://www.pcl.com/
Posen Construction Inc. http://www.posenconstruction.com/
The Lane Construction Corporation http://www.laneconstruct.com/
Cornerstone Businesses Inc.
http://www.cornerstone-
business.com/
TOP REVENUE FLORIDA CONTRACTORS
(ACCORDING TO THE STATE OF FLORIDA WEBSITE)
COMPANY WEBSITE
COMMUNITY ASPHALT CORP http://www.cacorp.net/
HUBBARD CONSTRUCTION CO http://www.hubbardgroup.com/
RANGER CONSTRUCTION INDUSTRIES http://www.rangerconstruction.com/default.htm
ANDERSON COLUMBIA CO http://www.andersoncolumbia.com/
PERSONAL RELATIONSHIP WITH CONTRACTORS
COMPANY WEBSITE CONTACT PHONE # / EMAIL
NATIONWIDE
FENCE
COMPANY
http://www.nationwide-
fence.com/
RICK PORTER / BILL
HUDSON
(586) 295 - 6872 /
whudson@nationwidecos.com
SCOTT BRIDGE http://www.scottbridge.com/ SUSAN WUNDERLICH SWunderlich@scottbridge.com
JACOBS
CONSTRUCTION http://www.jacobs.com/
BARRY THOMAS/NAN
JORDAN nan.jordan@jacobs.com
APAC http://www.apacinc.com/ DARYL CANNON (912) 313 - 6034
BROOKS-BERRY-
HAYNIE http://www.bbhelectric.com/ PHILIP WATERS (678)614 - 2925
17. LOCAL TAMPA CONSTRUCTION CONTRACTORS
COMPANY
PHONE # /
EMAIL
CITY OF
BUSINESS
CONE & GRAHAM, INC 813 623 2856 TAMPA
TRANSPORTATION STRUCTURES,
INC 813 899 4411 TAMPA
FERNANDO LLOP 813 623 1454 TAMPA
ALFORD CONSTRUCTION 813 875 8935 TAMPA
PRECISION PAVING OF TAMPA, INC 813 986 9970 TAMPA
DOLPHIN CONSTRUCTION 813 818 7717 TAMPA
18. 5. Marketing Plan
Construction activities drive the demand for Erosion Patrol's market, especially the
building of highways. The profitability of the company depends largely on the
volume of work that can be procured by marketing our product. Large companies
have an advantage in being able to handle large contracts. By presenting
ourselves as a sub contractor we can compete effectively by specializing in a
specified control method.
According to the U.S. Census there were approximately 792,000 construction
companies in the United States in 2002. Of these 237,000 were building
construction contractors; 60,000 were heavy and civil engineering construction or
highway contractors; and 496,000 were specialty trade contractors. Most of these
establishments tend to be small, most employing less than 10 workers. About 4
out of 5 workers are employed by small contractors.
Construction offers more opportunities than the majority of other industries for
individuals who want to own and run their own business. With many development
projects being initiated by the federal government, the local/statewide area is
starting to grow.
5.1 Competitive Advantage
Erosion Patrol will have competitive advantage in the:
DBE/MWBE - By qualifying as a federal Minority/Women Business
Enterprise, this will allow the company to offer this bonus to
contractors. Last year only 7.5% of the awarded FDOT federal contracts
were completed by Minority/Women owned business. This is lower than
the Florida target of 8.1%. We will be opening the opportunity for
federal prime contractors to come closer to this goal. Florida has an
outstanding rating performed by the Human Resource Department. They
grade their primes based upon their DBE participation rates. By
eventually offering our service in multiple states the company will
increase this opportunity to contractors on a national level.
Hub Zone - Erosion Patrol a home-based start-up business, will open an
office located in a federally designated HUB Zone after 6 months of
opening. Small businesses in high-unemployment, low-income areas can
receive an economic boost from the HUB Zone contracting program. The
HUB Zone program provides contracting assistance to small businesses
located in economically distressed communities, referred to as
Historically Underutilized Business Zones, or HUB Zones, to promote job
growth, capital investment and economic development in these areas.
The program’s benefits for HUB Zone-certified companies include
competitive and sole source contracting, a 10 percent price evaluation
preference in full and open contract competitions, as well as
subcontracting opportunities. The Federal government has a goal of
awarding 3 percent of all dollars for Federal prime contracts to HUB
Zone-certified concerns. In 2008 they fell short of the goal by 0.76%.
19. 5.2 Pricing
Based on calculations from Q1 2008, the Florida DOT awarded 86 contracts.
Considering that approximately 1/4 of these do not provide itemized project
summaries, we were able to verify that out of the 86 contracts awarded 22 of
them involved erosion control service.
The price per foot average on these contracts for silt fence services similar to
ours is $1 and an average of 20,000 feet was placed per project. Contract
pricing ranged from .49 a foot to $2.41 foot. It does not specify if the
contracts erosion controlled service was performed by a certified MWBE or
located in HUB Zone. Considering there is under 10 MWBE’s that perform
erosion control service in the State of Florida, we chose to charge $1.50 per
foot for large jobs over 8,000 ft and $1.75 ft if the job is smaller in size. This
pricing point is reasonable, considering we are certified MWBE and providing
more than just the erosion control for our federal clients.
Price analysis for synthetic bales has determined, on an average of 18
contracts, $8.90 per foot was awarded. The approximate number of feet
awarded per project is 800 feet. Prices on the synthetic bales ranged from
$5.20 - $18.53. Erosion Patrol will offer synthetic bales to our clients at $9.00
per ft installed.
Rock bags are similar to filter socks and they are another erosion control
technique used in Florida. Of the 11 projects where rock bags were utilized,
averages of 750 rock bags were installed. The average price paid per rock bag
was $5.00. Prices ranged from $4 each to $10 each. Erosion Patrol will
install rock bags for $5.00 per bag.
See appendix for detailed Q1 2008 Florida Department of Transportation
contracts.
5.3 Distribution Channels
Erosion Patrol plans to utilize print advertising including: online/print local and
statewide paper ads and postcard target market mailing in the first month of
business. Trade show attendance will improve our relationships and allow us to
network within the industry. Through extensive research we have isolated the
top 50 statewide construction companies accomplishing the most utilization of
DBEs in their federal contracts in 2008. We plan to aggressively market to
these companies in order to get on their list of utilized DBEs for federal
projects.
Monica Carpenter built strong relationships with key representatives of
nationwide construction companies. We have a verbal agreement with them of
their intent to utilize our services for erosion control on upcoming projects in
2010. We will quickly earn our Federal DBE status in Florida and register all of
the necessary paperwork to begin work in the state of Georgia as well.
20. 6. Operating Plan
Erosion Patrol will operate out of a single building in Largo, Florida. Daily Operations will
be managed by one of the founders, and the others will be responsible for book keeping
and office management, as previously discussed. The company is ready to begin full-scale
installation operations. The business relationships are already established and others will
be easily forged. Erosion Patrol only needs to acquire some equipment and supplies to
begin its full operation.
6.1 Location
The company, upon start-up, will have be home-base in Largo, Florida. After 6
months from start-up, Erosion Patrol will open an office located in one of Florida's SBA
HUB zones, Historically Underutilized Business Zone. The building that will be Erosion
Patrol's headquarters is located in a central position in Pinellas County, FL.
6.2 Facility
Initially the business will be based out of our home located at 614 Alison Dr., Largo, FL
33771. To store equipment and inventory Erosion Patrol will initially rent a 10x10
storage facility that is accessible 24 hours a day located at 12420 Starkey Rd., Largo,
FL.
6.3 Operating Equipment
Erosion Patrol needs to secure some equipment to implement full-scale product
installation. Below is a list and description of the start up equipment required by
Erosion Patrol and their respective costs:
Trencher ($4,500): In the beginning the company will require a Trencher. The
Ground saw by EZ Trencher is a logical choice for silt fence installation. It
allows for minimal ground disturbance while trenching the required depth for
installation. It will easily be transported to the companies various projects by
trailer. This equipment will become a versatile piece of machinery as larger
silt fence machines are purchased. This Trencher will allow for precise
movement around objects that need to be protected. This machinery is
required for start-up operations.
21. Trailer ($500): To pull Trencher behind truck. This will be an immediate
purchase.
See appendix for further equipment explanations and photos of equipment.
After purchasing trucks, hydro seeder, hay blower, and a bobcat, then equipment will
be purchased to recycle and upgrade older machinery. The initial investment requires
little equipment for efficient operation. Erosion Patrol principal's already own the
vehicle that will be used in the initial daily operation.
The company will require $500 in initial office equipment set-up. The equipment will
include a copy/fax/printer combination machine, desks, chairs, phones, filing cabinets
and paper/pen products. This equipment will allow for a professional office set-up.
6.4 Suppliers and Vendors
There are 10 suppliers that are approved by the FDOT as subcontractors on
Myflorida.com. We have chosen the top three:
ACF Environmental http://www.acfenvironmental.com/index.html has an
extensive inventory of erosion control products available. They will allow us to
grow as a company and offer our clients multiple solutions to there erosion
control needs. Erosion Patrol has prior contact with Allan Granda from ACF; he
will be the company’s main contact of operations.
GeoSolutions, LLC www.RAC-GeoSolutions.com has an extensive inventory of
erosion control products available. Our contact with RAC will be Russ Croom.
Russ is a distributer for a multitude of erosion control companies. Having his
service will allow for a local supplier as well as an extensive inventory of
products.
22. North American Green http://www.nagreen.com/ is an all natural
biodegradable supply company. This supplier will give us our "go green"
alternative with the ability to leave our product in place since it will become
one with the soil we place it on. We will utilize their services after our
research team explores the demand for “go green” alternatives.
Our start-up inventory will consist of silt fence and it will be purchased from
ACF Environmental. There is a minimum initial investment of 20,000 ft @
$0.155 per ft. The company will also be charged a $500 fee for delivery of the
supplies from Orlando to Largo. This will be the initial $3600 materials
investment. Occasionally the company will require extra material like Filter
Socks and Hay Bales. These extra supplies will be bought as needed for each
individual situation.
6.5 Personnel Plan
Staffing for the operation includes the three owners who will handle the daily
operations. An additional three employees will be required as the initial field
crew. The CPE will handle the overall field evaluations, servicing client needs,
and supervising daily project activities.
Foreman - (Immediate hire- Shamine Daniels) the foreman will supervise
daily silt fence crew activities. By tracking and monitoring project
progress, the foreman will ensure that the project is completed on time.
Also this position will be responsible for reporting the time for the crew.
The foreman will assist crews in any way possible to ensure a speedy
installation.
Operator - (Immediate hire- Philip Monroe) Daily responsibilities will
include running the machinery for all erosion control device
installations. The duties of the position will include maintenance of the
equipment and labor involved in installing actual silt fence.
Laborer - (Immediate Hire) This position will install silt fencing by hand
and ensure that the proper installation of silt fence is completed.
Office Support Assistant - (2/2010 hire) The OSA will assist with the
everyday operations of the office. Responsibilities include, answering
phones, organizing emails, and fax, copy, printing and mailing as
needed. Organizing the schedules of the executives and arraigning
travel as necessary. Keeping track of and coordinating time sheets with
staffing company.
Sales Associate - (2/2010 hire) The job of the sales associate is to isolate
23. New business by following leads, explore and create working
relationships with new contractors, and attend trade-shows as a
representative of Erosion-Patrol.
COO Support Assistant - (4/2010 hire) The job of a COO support Assistant
is to assist on the everyday operations of Erosion Patrol. They will assist
in creating marketing products and ideas for the company. This will
include website upkeep, sales follow up and returning calls, meeting
marketing material deadlines.
CPE Support Assistant (10/2010 hire) The job is to assist with the
everyday operations of the CPE. They will assist in project paperwork,
site inspections (required FDEP Certification) site maintenance, and
keeping project scheduling reports.
Additional crews will be needed once the rewall installation, grassing
operation and silt fence operation expands.
6.6 General Operations
Business operations will be conducted during the business days of Monday
through Friday, and sometimes Saturday. The office staff will be required to
work an average 40 hour work week 8 to 5 Monday thru Friday. They will be
under the direct leadership of the COO. Their hours and schedule will be
created and maintained by her.
Field Crew employees will be under the direct leadership of the CPE. Their
hours and schedule will be created based upon a contract demand. The crew
will meet at the office Monday thru Friday at 7:00 a.m. They will review the
day’s agenda and load the trucks and equipment accordingly. They will then
deploy to their designated site to begin the days work. An average 40 hour
work week will be the target unless weather or demand calls for a change.
When working out of town, hours will increase due to travel time and the need
to complete the designated job before returning home. If the job is expected
to take more than 50 hours, then a return trip home will be required to allow
proper recovery time for crews. A per diem will be accounted for when
traveling as well as hotel stay for the crew.
As the business proceeds and expands, more perks will be created to retain
good employees. Including, but not limited to, reduce employee payment for
insurance benefits, pay raises based upon performance, educational classes to
further their career, holiday and production bonuses, extra pay for out of town
projects, company parties, and etc.
The cornerstone of Erosion Patrols safety commitment for employees will be
Accident Prevention and education. The company will strive to educate and
maintain the crews’ safety habits. This will eliminate foreseen hazards which
could result in personal injury or illness. At Erosion Patrol’s worksite, safety
and health will not be compromised. Thus a safety bonus will also be
implemented every year we go without accident.
24. 7. Management, Organization and Ownership
Erosion Patrol will be managed and operated by the owners. The three owners will
handle the office, field and financial operations required to run their business.
7.1 Management/Principals
Specifically Mrs. Christy Carpenter has over 10 years of experience in business
and presently works as an executive in the services industry as a VP of
Operations. Through her various roles on the way to VP she learned critical
skills required to run a company at an executive level. This experience,
teamed with her BS in Technical Management will enable her to build and mold
the business through customer relations, marketing and finance.
With over 5 year’s in-field experience, Ms. Monica Carpenter will manage the
daily operations of the field crews. She has a BS in Civil Engineering and has
worked for 4 years with the Department of Transportation in Georgia. Through
her various projects she has developed a keen understanding of the trials and
tribulations of the construction world. She has already accumulated good
partnerships with large and small construction companies. She intends on
continuing her quest for positive customer relations. Through her various roles
on her way to becoming a CPE Ms. Carpenter has developed intricate
management skills. She has over 10 years of experience in Management and
she has learned that the key to managing efficiently is to listen to what her
employees have to say. They are the back bone of the company and without
them work would not be accomplished. Erosion patrol intends on retaining
good employees and making a corporation build on family values.
Mrs. Carol Meder (CFO) has over 20 years of experience with book/record
keeping. She has handled her family’s finances as she and her husband have
bought and sold numerous homes. Their present venture is appraised at
$350,000, however, with all the "glamorous" Arizonian features; the home has a
much higher value. She obtained her BS in Education from Eastern Michigan
University. The Finances will be set up and coordinated through Christie Ellis
(consultant) who will report directly to the CFO. The CFO will be responsible
for keeping the business daily books and paying the companies bills.
25. 7.2 Organizational Structure
ORGANIZATION CHART
7.3 Professional Consultants
Erosion Patrol will utilize the services of a Finance consultant (Christie Ellis)
from the initial start up to ensure accurate tracking of business finances is
taking place. We will also be using A-1 Staffing Company for payroll services,
workman’s comp, and employee insurance.
7.4 Ownership and Boards
Erosion Patrol currently has 4 board members. The company is currently
structured with Monica Carpenter as the president (56%), Christy Carpenter as
the Vice-President (19%), Carol Meder as the Treasurer (26%), and Connie Terry
as the Secretary. The board of directors will be added to as the company
grows and expands.
President – CPE
Monica Carpenter
Vice President –
COO
Christy Carpenter
Treasurer – CFO
Carol Meder
Foreman
Shamine Daniels
COO Assistant
Office Support
Assistant
Operator
Philip Monroe
Laborer
Finance Consultant
Christie Ellis
CPE Assistant
26. 8. Goals and Strategies
Erosion Patrol will be a successful start-up subcontracting company in Largo, FL.
The companies leaders will target companies who strive to maintain good standing
with the DBE programs in the federal, state, county, and city municipals. During
the first three years of operation, the company will grow through advertising and
referrals. By the fourth year Erosion Patrol would like to have created itself an
industry name. The following section's outline the goals in greater detail.
8.1 Business Goals
The company intends on becoming an erosion control expert. There are many
aspects of erosion control and the industry is ever expanding. The more
services offered the greater the client base will become and the more we can
offer our customers. Short term goals include adding hydro seeding, retaining
walls, and offering our clients "green" alternatives. Long term the company
would like to add erosion control devices that include wetland protection and
retaining walls in water systems. Erosion Patrol would like to operate in as
many states as plausible. We will go where ever the market leads us. The COO
will constantly be keeping up with the technology and innovations of our ever
expanding market.
8.2 Keys to Success
There are several keys to Erosion Patrols success. These keys include:
Creating awareness of the business as a DBE certified sub contractor
The company will establish relationships with prominent clients early on.
The key to fast marketing is word of mouth from highly credible
companies. This will also allow the company to establish good referrals
to place on our website to attract future clients.
Under-promise and over-deliver - Nothing sets a service company apart
from its competition like under-promising and over-delivering. Whether
it's coming in under budget, finishing a project early, or just giving the
client more than they expected, this practice will leave a client feeling
positive about Erosion Patrol.
Hire the right people and then train and retain team members - Since
the company is locating in Largo's HUB zone, retaining employees will be
essential to keeping the companies HUB zone classification. Erosion
Patrol will be a small company so it will be important that we keep our
staff, pay them well, and offer many training opportunities. Disgruntled
employees can lead to future competitors.
We recognize that the company’s quality of work will either help or
hinder the success of the business. Therefore, the COO will randomly
inspect jobs and follow-up with customers in order to ensure the success
27. of the business. Our company will also implement a satisfaction survey
for every job to ensure that our services were adequate. This will
enable us to collect data for improving our services and expanding our
products.
8.3 Future Plans
FACILITY – 6 Months
After 6 months of opening Erosion patrol will locate the central office to a Florida SBA
HUB Zone. The building is large enough for a warehouse, office, and parking area.
The warehouse has an open space for easy access. It is large enough for the
companies various equipment and supplies. The office space is ideal for the
companies CPE, COP, Treasurer, and assistants. The yard is large enough to allow for
the companies future growth. It is large enough to house the multiple trucks as well
as the future machinery - hydro seeder, bobcat(s), and hay blower.
The company does not own the building but will be signing a 12-month lease with an
option to extend the lease for an extra 24-month. The lease rate is $750 per month,
which is a blended rate between comparable office and industrial space in the area.
Expansion – 6-8 months
The company has current plans for expanding in the next three years to include
hydro seeding and retaining wall installation, as well as operating in other
states. Future plans beyond that include becoming a nationally recognized
construction company. The company leaders will be watching the market,
keeping track of trends, and following the success of the company. As the
nation heads in new directions so will Erosion Patrol. If needs for other
subcontracting companies arises then the owners will rise to the occasion
expanding the company as needed to fill the gaps in the industry. Having
highly educated and versatile owners will help this company grow and expand
in the directions of an ever changing market. The owners of Erosion Patrol are
experienced and eager to take advantage of this great opportunity for the
future.
28. 9. Financial Assumptions
The owners have long term experience in the business and construction industry. They
are willing to invest heavily in this new company and their accumulated experience will
insure success for the new venture. It will be important to watch closely the salaries and
regular expenses to assure that the company will not suffer from lack of sufficient cash to
fund its operations.
9.1 Assumptions
We have made some assumptions:
We assume a conservative entrance and steady growth in the market.
We assume a slow financial progress based on initially conservative sales
against highest expenses.
We assume there will not be an economic crash that would greatly hinder
our target market’s steady pace.
We assume that an additional crew will be added at least once a year.
This is to include grassing, silt fencing, and rewalls.
The following sections describe the financials for Erosion Patrol:
9.2 Projected Profit and Loss
Erosion Patrol is in the early stage of development; however, due to the companies
extensive research relatively accurate projections have been made. These
projections include the addition of extra crews as well as additional staff being
added throughout the three year period. Our first year monthly profits will become
positive by November, but we will still need to watch our expenses because of the
slow down anticipated to ensue in December.
29. -350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
2009 Year 1 2010 Year 2 2011 Year 3
Gross Margin 2009-2011 (Year 1-3)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
2009 Year 1 2010 Year 2 2011 Year 3
Gross Margin 2009 Year 1
31. 9.3 Break-even Analysis
During the first year of operations, the break-even monthly sales volume is
estimated as shown below. Our average percent variable reflects our cost of
sales which covers contracted construction payroll costs.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
2009 Year 1 2010 Year 2 2011 Year 3
Gross Margin 2009 Year 1
32. Break-even Analysis
Monthly Revenue Break-even
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
9.4 Projected Cash Flow
We have set our initial Cash at $35,000 so that we can start with minimal
overhead. The following table outlines are cash flow estimates.
Erosion Patrol, LLC - Cash Plan (Summary)
Year 1 Year 2 Year 3
Cash receipts 1523250 2044740 3876340
Operating cash
expenses:
Inventory purchases 0 0 0
Other expenses 864562 1261751 2699092
Total operating cash
exp. 864562 1261751 2699092
Cash from operations 658688 782989 1177248
Capital expenditures -91000 -20000 0
Debt activities:
Principal payments -2424 -2729 -3076
Interest payments -2268 -1963 -1616
Total debt activities -4692 -4692 -4692
Net cash after capital
Expenditures and debt 562996 758297 1172556
Change in cash 562996 758297 1172556
Beginning cash 9650 572646 1330943
Ending cash 572646 1330943 2503499
33. 9.5 Projected Balance Sheet
The following table outlines the Balance Sheet.
Pro Forma Balance Sheet
10. Appendix
I. Income Projection - For year ending October, 2010
2. Income Projection - For year ending October, 2011
3. Income Projection Summary - For year 1-2 ending September, 2011
4. Expense Projection - For year 1 ending October, 2010
5. Expense Projection - For year 2 ending October, 2011
6. Expense Projection Summary - For year 1-3 ending September, 2012
7. Profit & Loss - For year ending September, 2010
8. Profit & Loss - For year ending September, 2011
9. Balance Sheet - For year ending September, 2010
10. Balance Sheet - For year ending September, 2011
11. Balance Sheet Summary- For year 1 & 2 ending September, 2011
12. Cash Plan - For year ending July, 2010
13. Cash Plan - For year ending July, 2011
34. Income Projection - For year ending October, 2010
Income Category Nov Dec Jan Feb Mar Apr
TM 1 Synthetic Hay
Bales 18000 3600 7200 7200 7200 7200
TM 1 Small Job 17500 3500 17500 28000 35000 28000
TM 1 Large Job 15000 15000 0 15000 30000 30000
TM 1 Rock Bags 3000 1000 2000 5000 3000 7000
TM 3 Small Job 0 0 0 0 0 0
TM 3 Large Job 0 0 0 0 0 0
TM 2 Grass 0 0 0 0 0 28000
TM 4 Grass 0 0 0 0 0 0
TM 5 Rewall 0 0 0 0 0 0
Total Income 53500 23100 26700 55200 75200 100200
Income Category May Jun Jul Aug Sep Oct Year 1
TM 1 Synthetic Hay
Bales 7200 7200 9000 7200 5400 21600 108000
TM 1 Small Job 35000 35000 28000 54250 31500 18000 331250
TM 1 Large Job 45000 30000 30000 37500 30000 50000 327500
TM 1 Rock Bags 4000 3000 4000 3500 1000 0 36500
TM 3 Small Job 0 0 0 0 0 0 0
TM 3 Large Job 0 0 0 0 0 0 0
TM 2 Grass 104000 112000 112000 112000 112000 140000 720000
TM 4 Grass 0 0 0 0 0 0 0
TM 5 Rewall 0 0 0 0 0 0 0
Total Income 195200 187200 183000 214450 179900 229600 1523250
Erosion Patrol, LLC - Income Projection (Year 1)
Erosion Patrol, LLC - Income Projection (Year 1)
Erosion Patrol, LLC - Income Projection (Year 1)
35. Income Projection - For year ending October, 2011
Income Category Nov Dec Jan Feb Mar Apr
TM 1 Synthetic Hay
Bales 9000 0 5400 12600 5400 5400
TM 1 Small Job 18000 0 24000 12000 30000 24000
TM 1 Large Job 25000 0 0 12500 25000 25000
TM 1 Rock Bags 0 0 2500 500 1000 4000
TM 3 Small Job 0 0 0 0 0 12000
TM 3 Large Job 0 0 0 0 0 25000
TM 2 Grass 90000 0 0 56000 68000 112000
TM 4 Grass 0 0 0 0 0 0
TM 5 Rewall 0 0 0 0 0 0
Total Income 142000 0 31900 93600 129400 207400
Income Category May Jun Jul Aug Sep Oct Year 2
TM 1 Synthetic Hay
Bales 5400 8100 9900 8100 540 14400 84240
TM 1 Small Job 36000 24000 30000 24000 27000 12000 261000
TM 1 Large Job 25000 25000 25000 25000 25000 75000 287500
TM 1 Rock Bags 4000 4000 8000 4000 0 0 28000
TM 3 Small Job 12000 12000 42000 27000 0 0 105000
TM 3 Large Job 25000 25000 25000 25000 0 0 125000
TM 2 Grass 160000 128000 160000 128000 112000 140000 1154000
TM 4 Grass 0 0 0 0 0 0 0
TM 5 Rewall 0 0 0 0 0 0 0
Total Income 267400 226100 299900 241100 164540 241400 2044740
Erosion Patrol, LLC - Income Projection (Year 2)
Erosion Patrol, LLC - Income Projection (Year 2)
Erosion Patrol, LLC - Income Projection (Year 2)
36. Income Projection Summary - For year 1-2 ending September, 2011
Erosion Patrol, LLC - Income Projection Summary (Year 1-3)
46. Balance Sheet - For year ending September, 2010
Erosion Patrol, LLC - Balance Sheet (Year 1)
Nov Dec Jan Feb Mar Apr
Assets:
Current assets:
Cash 49207 56239 51895 63236 100269 151011
Other current assets 10000 10000 10000 10000 10000 10000
Total current assets 59207 66239 61895 73236 110269 161011
Fixed assets (net) 4425 4350 4275 14033 13792 13550
Other assets (net) 5769 5688 5608 5527 5446 5365
Total assets 69401 76277 71778 92796 129507 179926
Liabilities and equity:
Current liabilities:
Current maturities 2447 2471 2496 2521 2546 2571
Total current liabilities 2447 2471 2496 2521 2546 2571
Long-term liabilities (net) 17362 17145 16925 16704 16480 16254
Total liabilities 19809 19616 19421 19225 19026 18825
Equity 49592 56661 52357 73571 110481 161101
Total liabilities and equity 69401 76277 71778 92796 129507 179926
Erosion Patrol, LLC - Balance Sheet (Year 1)
May Jun Jul Aug Sep Oct Year 1
Assets:
Current assets:
Cash 236261 305673 361916 395051 450447 572646 572646
Other current assets 10000 10000 10000 10000 10000 10000 10000
Total current assets 246261 315673 371916 405051 460447 582646 582646
Fixed assets (net) 23142 35517 64392 90800 89208 87617 87617
Other assets (net) 5284 5203 5123 5042 4961 4880 4880
Total assets 274687 356393 441431 500893 554616 675143 675143
Liabilities and equity:
Current liabilities:
Current maturities 2597 2623 2649 2676 2703 2730 2730
Total current liabilities 2597 2623 2649 2676 2703 2730 2730
Long-term liabilities (net) 16025 15794 15561 15326 15088 14848 14848
Total liabilities 18622 18417 18210 18002 17791 17578 17578
Equity 256065 337976 423221 482891 536825 657565 657565
Total liabilities and equity 274687 356393 441431 500893 554616 675143 675143
47. Balance Sheet - For year ending September, 2011
Erosion Patrol, LLC - Balance Sheet (Year 2)
Nov Dec Jan Feb Mar Apr
Assets:
Current assets:
Cash 643137 583535 563275 575044 611089 693337
Other current assets 10000 10000 10000 10000 10000 10000
Total current assets 653137 593535 573275 585044 621089 703337
Fixed assets (net) 86025 104100 102175 100250 98325 96400
Other assets (net) 4799 4718 4638 4557 4476 4395
Total assets 743961 702353 680088 689851 723890 804132
Liabilities and equity:
Current liabilities:
Current maturities 2757 2784 2812 2840 2869 2897
Total current liabilities 2757 2784 2812 2840 2869 2897
Long-term liabilities (net) 14606 14361 14113 13863 13611 13356
Total liabilities 17363 17145 16925 16703 16480 16253
Equity 726598 685208 663163 673148 707410 787879
Total liabilities and equity 743961 702353 680088 689851 723890 804132
Erosion Patrol, LLC - Balance Sheet (Year 2)
May Jun Jul Aug Sep Oct Year 2
Assets:
Current assets:
Cash 808738 899374 1057358 1169095 1219294 1330943 1330943
Other current assets 10000 10000 10000 10000 10000 10000 10000
Total current assets 818738 909374 1067358 1179095 1229294 1340943 1340943
Fixed assets (net) 94475 92550 90625 88700 86775 84850 84850
Other assets (net) 4314 4233 4153 4072 3991 3910 3910
Total assets 917527 1006157 1162136 1271867 1320060 1429703 1429703
Liabilities and equity:
Current liabilities:
Current maturities 2926 2956 2985 3015 3045 3076 3076
Total current liabilities 2926 2956 2985 3015 3045 3076 3076
Long-term liabilities (net) 13099 12839 12576 12311 12043 11772 11772
Total liabilities 16025 15795 15561 15326 15088 14848 14848
Equity 901502 990362 1146575 1256541 1304972 1414855 1414855
Total liabilities and equity 917527 1006157 1162136 1271867 1320060 1429703 1429703
48. Balance Sheet Summary - For year 1-3 ending September, 2012
Erosion Patrol, LLC - Balance Sheet
(Summary)
YE 2010 YE 2011
Assets:
Current assets:
Cash 572646 1330943
Other current assets 10000 10000
Total current assets 582646 1340943
Fixed assets (net) 87617 84850
Other assets (net) 4880 3910
Total assets 675143 1429703
Liabilities and equity:
Current liabilities:
Current maturities 2730 3076
Total current liabilities 2730 3076
Long-term liabilities (net) 14848 11772
Total liabilities 17578 14848
Equity 657565 1414855
Total liabilities and equity 675143 1429703
49. Cash Plan - For year ending July, 2010
Erosion Patrol, LLC - Cash Plan (Year 1)
Nov Dec Jan Feb Mar Apr
Cash receipts 53500 23100 26700 55200 75200 100200
Operating cash
expenses:
Inventory purchases 0 0 0 0 0 0
Other expenses 13552 15677 30653 33468 37776 49067
Total operating cash
exp. 13552 15677 30653 33468 37776 49067
Cash from operations 39948 7423 -3953 21732 37424 51133
Capital expenditures 0 0 0 -10000 0 0
Debt activities:
Principal payments -191 -193 -195 -197 -199 -201
Interest payments -200 -198 -196 -194 -192 -190
Total debt activities -391 -391 -391 -391 -391 -391
Net cash after capital
expenditures and debt 39557 7032 -4344 11341 37033 50742
Change in cash 39557 7032 -4344 11341 37033 50742
Beginning cash 9650 49207 56239 51895 63236 100269
Ending cash 49207 56239 51895 63236 100269 151011
Erosion Patrol, LLC - Cash Plan (Year 1)
May Jun Jul Aug Sep Oct Year 1
Cash receipts 195200 187200 183000 214450 179900 229600 1523250
Operating cash
expenses:
Inventory purchases 0 0 0 0 0 0 0
Other expenses 99559 104397 96366 152924 124113 107010 864562
Total operating cash
exp. 99559 104397 96366 152924 124113 107010 864562
Cash from operations 95641 82803 86634 61526 55787 122590 658688
Capital expenditures -10000 -13000 -30000 -28000 0 0 -91000
Debt activities:
Principal payments -203 -205 -207 -209 -211 -213 -2424
Interest payments -188 -186 -184 -182 -180 -178 -2268
Total debt activities -391 -391 -391 -391 -391 -391 -4692
Net cash after capital
expenditures and debt 85250 69412 56243 33135 55396 122199 562996
Change in cash 85250 69412 56243 33135 55396 122199 562996
Beginning cash 151011 236261 305673 361916 395051 450447 9650
Ending cash 236261 305673 361916 395051 450447 572646 572646
