Start-up Funding | |
Start-up Expenses to Fund | $35,200 |
Start-up Assets to Fund | $104,800 |
Total Funding Required | $140,000 |
Assets | |
Non-cash Assets from Start-up | $7,800 |
Cash Requirements from Start-up | $97,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $97,000 |
Total Assets | $104,800 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $40,000 |
Total Liabilities | $40,000 |
Capital | |
Planned Investment | |
Company Stock Sale | $100,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $100,000 |
Loss at Start-up (Start-up Expenses) | ($35,200) |
Total Capital | $64,800 |
Total Capital and Liabilities | $104,800 |
Total Funding | $140,000 |
Bottlieb Innovations, Inc. is located in an industrial district of Escondido, CA. The approximately 1,500 square-foot, freeway-close facility includes office, workshop, and assembly space, as well as ample parking.
In terms of capital equipment, manufacturing is not heavily automated. Product assembly requires minimal skills and tools. The company owns several well-lighted workbenches and ample tools required for assembly. Additionally, the company owns four networked computers with a DSL connection to the Internet, as well as financial and CAD software packages.
Contact Information:
Bottlieb Innovations, Inc. 1800 Simpleton Way #404 Escondido, CA 92029
The Digital Geographer product is what makes Bottlieb Innovations a unique business. The product contains the power to revolutionize all industries that require accurate land-based area measurement. When properly marketed, the patented Digital Geographer has the potential to quickly transform Bottlieb Innovations into a very successful business.
No fair comparisons can be made between the functionality of Bottlieb’s Digital Geographer and the distance wheels offered by a range of other manufacturers. The Digital Geographer transforms complex area measurements into a simple task. What used to require several measurements, a large degree of estimation, and a lot of geometric calculations, now only requires the abilities to walk and push a button.
As of December 2000, Bottlieb Innovations has a single Digital Geographer product, the DG-2000. The professional grade product is constructed of high-quality plastic and metal components.
An excerpt from the Web page:
Bottlieb Innovations, Inc. has created a new type of land survey equipment that will revolutionize the industry. Our newest device, the Digital Geographer, DG-2000, has the look and feel of a traditional distance wheel – but with one amazing new feature. When wheeled around the perimeter of ANY area, the DG-2000 will calculate the area inside!
The DG-2000 eliminates all of the problems and inconveniences associated with current area estimation methods. Before the DG-2000, an estimator had to somehow break odd-shaped areas into simple geometric shapes (squares, triangles, circles, etc.) and add up the areas of those shapes. The result was usually both inaccurate and time-consuming.
The importance of accurate area measurement is well known by contractors. Better knowing the scope of a job can help to eliminate the costs associated with underestimating in a competitive market.
The DG-2000 is the perfect tool to help with that next driveway, patio, roof, or landscaping job. It can display results in square feet, square yards, or square meters at the touch of a button. The DG-2000 can also be used as a traditional distance wheel, offering results in feet, yards, or meters.
Since the Digital Geographer is a breakthrough product, it currently has no direct competition.
The Digital Geographer is expected to segment and take a portion of market share from companies that manufacture distance wheels. Every major distance wheel manufacturer has excellent distribution and product support structures in place.
The following table gives a brief summary of the largest worldwide distance-wheel manufacturers:
Company | HQ | Founded | Est. Sales* | URL Product Link |
Rollertape | Washington, USA | 1950 | $45,000 | www.Rollertape.com |
Measure Man | Minnesota, USA | 1963 | $25,000 | www.meter-man.com/dmwindex.html |
TruMeasure.com | UK | 1937 | $20,000 | www.TruMeasure |
Rollersure | South Africa | 1975 | $9,000 | www.Rollersure.com |
* Estimated Sales reported annually, worldwide and in thousands of U.S. dollars.
3.4 sourcing.
Most other components, including the LCD display, printed-circuit board, microprocessor and other electronic components are available from multiple distributors and manufacturers. Bottlieb Innovations currently has an excellent working relationship with Cartwright Plastics and American Distributors, key suppliers of parts for the Digital Geographer. The current Digital Geographer product, the DG-2000, contains an electronic compass integrated circuit. The electronic compass device is manufactured exclusively by Precise Notation, Inc. Bottlieb Innovations is working to establish a relationship with Precise Notation.
Bottlieb Innovations has filed for a U.S. patent on “ground-contact area measurement devices.” This patent is pending.
Plans for the DG-3000 product are already underway. The DG-3000 will use two wheels and a differential-based system, instead of an electronic compass, for determining directional changes.
Bottlieb Innovations is also developing plans for personal computer software and Palm Pilot interfaces to the Digital Geographer products. These products from Bottlieb Innovations will allow customers to transfer information stored in the Digital Geographer to common standardized systems with more powerful processing and graphical display capabilities. The software algorithm used in the DG-2000 product is applicable to the DG-3000, as well as any future iterations of the product which may utilize a Global Positioning Satellite (GPS) system.
Analysis has shown that the annual global revenue from the sales of measuring wheels is roughly $100M, spread among four major competitors, with the average price about $50 (U.S. dollars). This implies that approximately two million distance wheels are sold annually worldwide. Bottlieb Innovations conservatively estimates that within this market, one-third of the demand is generated due to customer need to calculate area and distance versus distance measurement only. If this estimate is reasonable, there is potential demand for 600,000+ units per year in the area measurement segment.
TSM offers the Model 100 Measuring Wheel and is an excellent example of a company that fills a local niche market. The TSM wheel is specifically designed for cable TV strand mappers, to be primarily operated from a vehicle, and claims superior wheel bearing durability and life over competitors. TSM’s primary customer currently appears to be its own TSM Cable TV business.
Dandy focuses on professionals in the agriculture and land management industries, with minimal emphasis on other industries such as construction. Dandy’s customers generally need to calculate distance and area of large sites one acre plus, and are not a major factor in the market in comparison to the other four. Dandy hesitantly related that their sales per year in the professional agricultural and land management segment was “under 2,000 units.”
Rollertape, Measure Man, TruMeasure, and Rollersure all focus primarily on professionals in construction, engineering/surveying, and assessment industries (real estate, insurance, etc.). The greatest customer demand is in the professional market segment and probably accounts for over 90% of distance-wheel sales. Rollertape quoted a surprising yearly revenue from measuring wheel sales at $20-25M nationally (U.S. dollars) and another $20-25M internationally.
Current distance wheels are a largely homogeneous product, so Bottlieb’s competitors do not enjoy much differentiation based upon individual product uniqueness. Each competitor offers a product line of several wheels with different diameters and tire treads designed for use over various surfaces and distances. The competitors do, however, seek to differentiate their products based on superior accuracy, reliability, and service.
The small-diameter (4″-10″) distance wheels are typically designed for measurement of shorter distances over paved ground. They offer excellent precision and are easy to carry because of their small size. For added convenience and portability, Meter-Man sells hard carrying cases for their small diameter distance wheels. Competing distance-wheel manufacturers have designed and positioned their small-diameter wheels for use by decorators, appraisers, painters, realtors, insurance agents, and other related professions in mind.
The large-diameter (18″-25″) wheels are better-suited to uneven terrain and longer distances. They do not have the pinpoint accuracy of the smaller wheels, but they typically do not need it. Typically, they have tires designed for traction over rough terrain or mud. Competing manufacturers position the large-diameter wheels for use by big contractors, fencing companies, irrigation contractors, and anyone else who needs to take large-scale outdoor measurements. “Tractor pull operators” is one of the more amusing specific professional applications listed on one manufacturer’s large-distance wheel information Web page.
In addition to the small and large-diameter wheels, competing distance wheel manufacturers offer a more flexible line of wheels with diameters between 10″ and 18″. These wheels are a good compromise between the small and large diameter wheels and cover a very wide range of applications, including general construction, athletic fields, and landscapers. The mid-range diameter wheels represent the broadest range of applications and, consequently, the largest number of sales for distance wheel manufacturers.
Wheels with simple analog distance counters are typically priced between $30-70 (U.S. dollars). A large portion of wheels are sold through tool distributors. Wheels are also available at retail stores such as Home Depot, HomeBase, etc. Wheels with digital liquid crystal displays (LCDs) are less common than analog wheels, but they may be purchased for between $55-75 (U.S. dollars). The digital wheels offer the added functionality of standard and metric measurements and usually have a hold function to store more than one measured value.
Comparing the functionality of any distance wheel to that of the Digital Geographer is unfair. For applications that currently use distance wheels to compute area, the Digital Geographer offers superior accuracy and simplicity. However, current distance wheel products do have manufacturing benefits brought about by years of evolution, a lower retail price, and an established customer base.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Small Contractors | 0% | 100,000 | 105,000 | 110,000 | 115,000 | 120,000 | 4.66% |
Construction | 0% | 50,000 | 52,500 | 55,000 | 57,500 | 60,000 | 4.66% |
Real Estate Appraisers | 0% | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 0.00% |
Pest Control Specialists | 0% | 200 | 200 | 200 | 200 | 200 | 0.00% |
Other | 0% | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 0.00% |
Total | 4.36% | 161,200 | 168,700 | 176,200 | 183,700 | 191,200 | 4.36% |
Although the Digital Geographer has the ability to measure distance, it is not cost-competitive with other distance wheels on the market. The Digital Geographer must be marketed as an area-measurement wheel as opposed to a mere distance wheel. Bottlieb’s expected customer base is shown in the following chart.
Bottlieb’s customers are those currently using measuring wheels to calculate area. Small and large businesses alike can rapidly reduce surveying and appraising costs, while increasing accuracy, with the Digital Geographer. Bottlieb hopes to build solid local product reputation through direct marketing and exposure in retail home improvement stores. Superior capability, cost benefits, and local reputation will provide the Digital Geographer the foothold it needs for further expansion.
Current measuring wheel industry growth is difficult to forecast because of the large number of privately-owned companies that operate in the industry. The wheels themselves are simple, mechanical devices which do not need to be replaced often and so have a long, useful life. Although worldwide growth in construction is a strong indicator that the market is growing, Bottlieb Innovations does not necessarily anticipate a unit sales growth in the measuring wheel industry over the next few years because it expects to gain market share from the existing market.
Bottlieb’s Digital Geographer product represents a leap in technology, essentially creating a new product for an established market. Bottlieb’s growth is not as dependent upon the entire market size growing as it is upon generating interest, awareness, and excitement for the Digital Geographer product, which has yet to be released.
E. S. “Dandy” Gandrud invented and patented an improved land-measuring wheel and founded Dandy Co. in 1936. His motivation was to produce a measuring wheel accurate enough for New Deal farm programs. Previous to this, measuring wheels were custom-made devices. Today, Dandy Co. produces measuring wheels, lawn, and nursery equipment with annual sales of about $3M. Dandy died in 1988 at age 85.
Rollertape Corp. today claims to be the industry leader in measuring wheels and the inventor and pioneer of the “Modern Measuring Wheel industry,” setting “the standards for the industry for over 50 years.” Rollertape claims to have “reinvented the wheel” in 1950 and to be the industry benchmark for measuring wheels.
Distance measurement has always been critical, especially in construction and agriculture. Since the invention of the modern measuring wheel in this century, demand has grown swiftly due to booms and constant overall growth in population and construction. Although recently the number of small farms has been declining, the need for precision application of new soil and chemical technologies has increased. As populations grow and the urban sprawl continues, the demand for distance and area measurement is estimated to at least exceed the growth rate to compensate for replacement demand and new demand.
Advances in technology, however, such as Global Positioning Satellite (GPS) systems, could threaten the measuring wheel market as GPS systems become increasingly more accurate and less expensive. Theoretically, GPS technology could allow an individual to simply walk a perimeter carrying a small GPS device, calculating distance and/or area automatically.
Overall sales of measuring wheels worldwide are unknown. A local San Diego HomeBase store sold 88 measuring wheels during a six month period. There are hundreds of HomeBase stores nationwide, and thousands of similar retailers (e.g. Home Depot, Lowe’s) nationwide.
Measuring wheels are the sole products of several companies in the industry. Rollertape, Measure Man, and Rollersure are focused almost exclusively on the production of measuring wheels for the professional market. A large portion of TruMeasure’s revenue also comes from the sale of measuring wheels.
Although the Digital Geographer has no direct competition, sales of the device may impact the sales revenues of other companies. Therefore, these companies may view Bottlieb Innovations as a competitor with a replacement, not a substitute, product.
The companies most likely to be impacted by Bottlieb Innovations will be the previously discussed distance measuring wheel manufacturers, namely:
The following table shows a breakdown of major distance wheel manufacturers, their market share, and their target markets.
Company | Approx. Mkt. Share | Est. Sales* | Target Market Customer Profile |
Rollertape | 45% | $45,000 | Construction, Engineering, and Appraising |
Measure Man | 25% | $25,000 | Construction, Appraising and Agricultural |
TruMeasure | 20% | $20,000 | Transportation, Construction, Appraising |
Rollersure | 9% | $9,000 | Surveyors, Construction, Appraising |
Dandy | 0.25% | $250 | Farming, Agricultural |
Other (TSM) | 0.1% | $100 | Local, Niche, Specialized |
All of the above named companies are privately owned, well-established companies. It is difficult to estimate their financial strength, although sales revenue data received from Rollertape indicated that yearly revenue is very strong ($20-25M within the U.S. and another $20-25M globally). It is probably safe to assume that other competitor’s financial posture is solid due to their established positions in the measuring-wheel industry and their distribution throughout the world.
Competitors in the distance wheel market typically sell through tool distributors. Some of the larger wheels are sold through agricultural supply distributors. Distributors handle the burden of product placement issues as well as the issues encountered in dealing with individual customers. Distance wheels are also sold at large retail home improvement chains (e.g. Home Depot). Despite the volume of customers in retail outlets, overall demand from this segment is relatively low in comparison to the professional customer base.
Distributors typically receive discounts based upon volume orders, and add markups to wholesale prices to set the retail prices. Some distributors have opened online stores (e.g. “MyToolStore.com”). Foreign manufacturers such as TruMeasure (UK) and Rollersure (S. Africa) depend heavily on worldwide distributors, since international sales represent such a large part of their revenues. Domestic manufacturers such as Meter-Man and Rollertape depend more on domestic and local distribution networks.
Retail stores represent another substantial portion of domestic distance wheel company sales. Since large chains like Home Depot typically have their own professional buyers, and since they purchase such large quantities, distance wheel companies can effectively sell directly to retail stores.
Distance wheels have a wide range of applications, and as such, a very wide range of promotional options. However, distance wheels are tools for professionals, not novelty or luxury items targeted at the general public. Competing distance-wheel manufacturers promote their products through the same channels as other tool manufacturers. Rollertape has indicated that it only “dabbles” in the home improvement market segment, fully realizing that the greatest potential for sales lies among industry professionals and business owners. This strategy certainly does not bar the “non-professional” from acquiring distance wheels readily available through retail chains and on the Internet, although it does little to stimulate any potential demand in this segment.
Each manufacturer has a professionally-designed company website with detailed product specifications. The Measure Man website offers a video file download–the content is essentially a television commercial for Measure Man. Most websites offer links to distributors’ websites or at least distributor phone numbers and addresses.
Since the market for distance wheels is not universal, competitive distance-wheel manufacturers do not promote products through primetime television advertisements. That would be a waste of resources. The majority of the population has no practical use for a distance wheel. Distance-wheel manufacturers target professional markets by using tool distributors and by attending trade shows. Some examples of such trade shows in the U.S. include the annual “World of Concrete” show, and the “International Hardware Show.” The companies typically rent floor space at these shows for direct contact with customers and interactive demonstrations of products.
Distance-wheel manufacturers use promotional strategies very similar to other professional industries that use distributors to advertise to a defined customer base. A professional user of measuring wheels will probably base his buying decisions on personal preference, prior use, reputation within his industry, and exposure at industry trade shows. Once the decision is made, the customer will work through a distributor. If a retail home improvement or hardware store stocks distance wheels, a customer will not find all five major brands lined up, as might be the case with other products.
Although it is difficult to determine useful information regarding internal allocations to product development and R&D, it is apparent that Bottlieb’s competitors actively seek to improve their products. Advertised improvements in durability and accuracy are common, not to mention minor changes relating to ease of use and style.
Allocations to selling and promotion appear to be minimal and focused on professions within various industries. With the exception of Rollertape, mass advertising to the general public or within its retail distributors is not common probably due to cost constraints and low “non-professional” demand in the population overall. Rollertape recently used a national magazine advertising campaign, with ads appearing in “Home Center News,” “Do-It-Yourself,” and “Equipment Today.” The ads appeared four times in each publication, and reached a combined total subscriber population of 330,000. Rollertape, however, still relies primarily on the professional market. Its most cost-effective advertising is still done at trade shows and in industry journals.
Most of the Digital Geographer’s competition offers excellent customer service. The professional user who buys his measuring wheel through a distributor can easily return his wheel to the distributor or manufacturer for repair. Retail purchasers may experience slight delays as they must work through the retail chain. Although not every one of the four major distance-wheel makers manufacture every single component in their measuring wheels, they generally can quickly replace any defective component under warranty and turn the product around fairly quickly.
All products from Rollertape of Spokane, Washington, have a three-year warranty. Rollertape also offers a seven-day return from the time they receive a product for repair. Rollertape is very concerned with customer service and standing behind their fifty-year reputation. Meter-Man offers a lifetime warranty–the best in the industry. TruMeasure, of Manchester, England, offers online support for their products. Customers may email the company with any questions or concerns regarding their product. The TruMeasure website advertises the company’s concern for after-sales service. Rollersure, a South African measuring wheel manufacturer, backs their products with a two year warranty. Customers must go through the Rollersure distributor for warranty claims. The company then reimburses the distributor. If the customer is unable to make a warranty claim through the distributor, they may then contact the company directly.
Types of service organizations consist of online support, answering questions about products and providing information about repair. Rollertape maintains its own repair shop at its Spokane, Washington factory. Customers simply send their product back to the factory, and Rollertape will have it back to them within seven days.
Since Bottlieb Innovations has yet to launch the Digital Geographer product line, all competitors have a significant advantage in the customer service department. Both Rollertape and TruMeasure have been in business for over fifty years, which gives them a significant edge in customer service. Bottlieb Innovations must first focus on the technology and retail aspects of the Digital Geographer before answering the customer service question. However, once the product line is operational, Bottlieb Innovations must focus on the customer service aspects.
Bottlieb Innovations will focus on professional customers who can benefit from the advantages offered by the Digital Geographer–accurate and timely area measurement. Customers will come from large corporations and small businesses alike.
Bottlieb’s marketing strategy assumes that production of the Digital Geographer will start in low volume and grow to a significant volume over time. Initially, Bottlieb will rely most heavily on word-of-mouth advertising and online promotion through the Internet. Any subsequent formal advertising budget will depend on the success of the product and the profitability of the company. The Digital Geographer’s unique capability is the product’s strongest selling point.
Bottlieb Innovations’ competitive edge is the superiority of its breakthrough product in applications requiring measurement of odd-shaped areas. The company expects to receive a patent on the Digital Geographer, which will clearly provide further competitive advantages.
Bottlieb Innovations intends to seize market share of the existing measuring wheel market within the local San Diego area and its surrounding region in the first year of production. Bottlieb expects direct marketing and product reputation, as well as sales through major distributors and home improvement stores, to briskly expand market demand throughout the state, region, and nation within the next five years. Initial domestic success and favorable Web-based sales will determine whether Bottlieb Innovations will be able to focus on global expansion within this period. However, Web-based marketing, sales, and existing global distribution methods may very well allow Bottlieb to rapidly exploit global demand with production capacity as the only significant constraint within the initial five year period.
For professionals in the construction, contracting, and other industries who frequently need to accurately assess the area of land or buildings, the Digital Geographer offers simple operation and state-of-the-art technology which combine to offer huge time savings.
Exact Digital Geographer pricing has not been determined, but it will significantly exceed that of current measuring wheels from existing manufacturers. The Digital Geographer is expected to retail in the $550 to $600 range. Bottlieb intends to hype the obvious cost saving benefits of the Digital Geographer. The Digital Geographer can realistically be promoted to be able to pay for itself within its first several uses.
The management of Bottlieb Innovations is tasked with promoting its unique product through the most cost effective methods. The Digital Geographer is targeted at customers who currently use distance wheels for area calculation. Several evaluation versions of the Digital Geographer will be loaned out to construction companies, contractors, and real-estate appraisers in an attempt to generate interest for the product, and speed up adoption of the new technology.
Tool distributors and large tool retailers will be targeted as an efficient method of obtaining both sales and industry exposure. Presence and advertising at industry trade shows will also help to stimulate interest and demand for the Digital Geographer product. Finally, a company website will provide customers with information about the product, as well as the opportunity to buy the product over the Internet.
Several magazines, such as “Popular Science” have sections that describe innovative new products and services. Bottlieb Innovations expects to gain broad, inexpensive advertising and exposure by submitting the Digital Geographer to these magazines for review.
Since the product is new, generating a positive company image and good reputation within the industry is essential for quick growth. Establishing the product’s quality and reliability are both essential to forming the basis for a good reputation. If the initial production run of the Digital Geographer has any functional problems, then subsequent revisions, no matter how reliable they might be, will not be as well-received by the market. Management recognizes the need to “get it right the first time.” The benefits of the product will be readily obvious to the market, but reliability and reputation will be the determining factors in order to break any possible existing customer brand loyalties.
Within the first year of production, Bottlieb Innovations expects to establish several strong sales relationships with local or regional construction and surveying equipment distributors and several retail home improvement chains such as Home Base, Ace Hardware, etc.
Additionally, Bottlieb will rely on direct, face-to-face marketing and promotion of the Digital Geographer to local small and large construction companies and real estate agencies in order to promote superior product features and thus establish a core reputation on which to base further expansion. Online sales are expected to eventually exceed distributor and traditional retail sales.
Bottlieb Innovations’ sales forecast assumes constant, non-seasonal growth and an average revenue of $425 per unit. Since volume requirements will drive production, and our suppliers have substantial discounts associated with larger volumes, it is possible that we will lower the price of the Digital Geographer if the sales volume increases substantially. However, we will not allow the price decrease to cut into our profit margin.
It is difficult to know how many of our customers will pay in the neighborhood of $600 for a Digital Geographer, but we expect to ramp up to 100 units per month within the first year. If demand for the product turns out to be greater than expected, the facility in Escondido is capable of producing up to 500 units per month. The following table contains the annual sales forecast for FY2001 through FY2003.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Digital Geographer[DG-1] | 380 | 3,000 | 4,000 |
Digital Geographer[DG-2] | 0 | 900 | 3,200 |
Other | 0 | 0 | 0 |
Total Unit Sales | 380 | 3,900 | 7,200 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Digital Geographer[DG-1] | $425.00 | $415.00 | $400.00 |
Digital Geographer[DG-2] | $0.00 | $375.00 | $360.00 |
Other | $0.00 | $0.00 | $0.00 |
Sales | |||
Digital Geographer[DG-1] | $161,500 | $1,245,000 | $1,600,000 |
Digital Geographer[DG-2] | $0 | $337,500 | $1,152,000 |
Other | $0 | $0 | $0 |
Total Sales | $161,500 | $1,582,500 | $2,752,000 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Digital Geographer[DG-1] | $264.47 | $230.00 | $190.00 |
Digital Geographer[DG-2] | $0.00 | $215.00 | $175.00 |
Other | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||
Digital Geographer[DG-1] | $100,500 | $690,000 | $760,000 |
Digital Geographer[DG-2] | $0 | $193,500 | $560,000 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $100,500 | $883,500 | $1,320,000 |
Bottlieb Innovations is a small corporation owned and operated by George S. Bottlieb. George is the developer and designer of the Digital Geographer.
George is aided by his friend Jay Rosenburg, Jr. The two have been friends and co-workers for over four years. They have worked together at several semiconductor companies in San Diego.
George’s management style reflects his personality. All employees of the company are motivated by a personal stake in the company’s success. The company is not hierarchical, and all employees work together cooperatively to reach the company’s goals.
The management of Bottlieb Innovations is young and enthusiastic. The founder and vice-president have excellent engineering and marketing backgrounds, but little experience in operations, finance, sales, and general business management.
As the company grows, it plans to hire an assembly supervisor towards the end of FY2001 and a product manager responsible for sales and business development in FY2002. Other management personnel will be added as needed.
The personnel table assumes slow growth in employees, and moderate pay raises. Production personnel will initially be contracted from temporary employment agencies to eliminate the overhead associated with benefits. The president and vice-president will have to assume several roles and “wear many different hats” during the first few years.
Salaries are quite low across the board. The company will institute an aggressive bonus plan, linked to exceptional company performance. The bonus plan, coupled with the opportunity to work for a company that has such tremendous growth potential, should help attract and retain key personnel. The personnel plan is shown in the following table.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Production Personnel | |||
Supervisor | $6,000 | $30,000 | $35,000 |
Assembler 1 | $0 | $24,000 | $27,000 |
Assembler 2 | $0 | $12,000 | $27,000 |
Other | $0 | $0 | $0 |
Subtotal | $6,000 | $66,000 | $89,000 |
Sales and Marketing Personnel | |||
Product Manager | $0 | $30,000 | $40,000 |
Other | $0 | $0 | $0 |
Subtotal | $0 | $30,000 | $40,000 |
General and Administrative Personnel | |||
George Bottlieb, President | $32,500 | $60,000 | $66,000 |
Jay Rosenburg, Vice-President | $13,500 | $54,000 | $60,000 |
Receptionist / Administrative Assistant | $0 | $24,000 | $36,000 |
Other | $0 | $0 | $0 |
Subtotal | $46,000 | $138,000 | $162,000 |
Other Personnel | |||
Contractor, Mechanical Design | $1,000 | $5,000 | $5,000 |
Contractor, PCB Design | $2,000 | $3,000 | $3,000 |
Other | $0 | $0 | $0 |
Subtotal | $3,000 | $8,000 | $8,000 |
Total People | 3 | 7 | 7 |
Total Payroll | $55,000 | $242,000 | $299,000 |
George S. Bottlieb, president and CEO, is responsible for product design, development, sales, and overall business management. Jay Rosenburg, Jr., vice-president, shares the responsibility for business management, with a particular focus on operations, marketing, and finance. Since the company is very small, both the president and VP will initially have to focus on tasks such as product assembly, packaging, order processing, and shipping.
George S. Bottlieb, 28, president, had a successful career as an engineer before founding Bottlieb Innovations, Inc. George was employed as a senior application engineer at Conexus Systems and Riteon Electronics, focusing on complex video and cable modem integrated circuits. George has both a B.S. and M.S. in electrical engineering from Northern Illinois University.
Jay Rosenburg, Jr., 26, vice-president, is currently employed as a senior application engineer at Conexus Systems. He also worked with George at Riteon Electronics. Jay has a bachelor’s degree in electrical engineering from the University of California, San Diego, and expects to receive an MBA from California State University, San Marcos in December of 2000.
Britney Bottlieb, George’s wife, is a CPA. Although Britney is not an official employee of the business, she serves on the Board of Directors. The fact that Britney has worked as an accountant at several major companies in Illinois and California makes her an excellent resource for financial and accounting advice.
Albert Bottlieb, George’s father, also serves on the Board of Directors. Albert was formerly the president of Albert B. & Co., a large pinball manufacturing company. Having successfully managed a large manufacturing organization for several years, Albert’s insights and advice are very valuable to Bottlieb Innovations.
The financial picture is very encouraging. Bottlieb Innovations has a great product. If the company can successfully segment the market and generate interest in the Digital Geographer product, as well as meet the production volumes required, the financial targets are very achievable.
The financial plan depends on important assumptions, shown in the following General Assumptions table.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The following chart shows changes in the following benchmark financial indicators: sales, gross margin, operating expenses, collection days, and inventory turnover. Sales are expected to almost double between FY2002 and FY2003, while operating expenses are only expected to increase by 22%.
Bottlieb Innovations’ break-even analysis is based on running costs, the “burn-rate” costs incurred to keep the business running, not on theoretical fixed costs that would be relevant only if the company were closing. Between payroll, rent, utilities, and basic marketing costs, a good estimate of monthly fixed costs is shown in the following chart and table, which details the break-even information.
The break-even analysis is based on an average sales revenue of $425 per unit. An exact average is not necessary, $425 is close enough to help us understand what a real break-even point might be. The essential insight here is that the expected sales level will keep the business running comfortably above break-even.
Break-even Analysis | |
Monthly Units Break-even | 37 |
Monthly Revenue Break-even | $15,830 |
Assumptions: | |
Average Per-Unit Revenue | $425.00 |
Average Per-Unit Variable Cost | $264.47 |
Estimated Monthly Fixed Cost | $5,979 |
Management’s primary goal is to make Bottlieb Innovations profitable before the end of FY2001. More specifically, management is aiming to make the business turn a profit in the month of September, the final month of FY2001. Maintaining a high gross margin in the first year is a key component of the profitability goal. The following chart illustrates the expected FY2001 monthly profit numbers.
Projected yearly profit numbers are shown in the following chart and table. Although Bottlieb Innovations is expected to be profitable in September of 2001, it will still lose money in FY2001 overall, due to losses in earlier months of the fiscal year. The business is expected to earn healthy profits in FY2001 and FY2002.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $161,500 | $1,582,500 | $2,752,000 |
Direct Cost of Sales | $100,500 | $883,500 | $1,320,000 |
Production Payroll | $6,000 | $66,000 | $89,000 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $106,500 | $949,500 | $1,409,000 |
Gross Margin | $55,000 | $633,000 | $1,343,000 |
Gross Margin % | 34.06% | 40.00% | 48.80% |
Operating Expenses | |||
Sales and Marketing Expenses | |||
Sales and Marketing Payroll | $0 | $30,000 | $40,000 |
Advertising/Promotion | $1,350 | $3,000 | $6,000 |
Travel | $3,000 | $6,000 | $9,000 |
Miscellaneous | $900 | $1,200 | $1,500 |
Total Sales and Marketing Expenses | $5,250 | $40,200 | $56,500 |
Sales and Marketing % | 3.25% | 2.54% | 2.05% |
General and Administrative Expenses | |||
General and Administrative Payroll | $46,000 | $138,000 | $162,000 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $2,400 | $2,400 | $3,000 |
Insurance | $1,200 | $1,200 | $1,500 |
Rent | $8,400 | $8,400 | $9,600 |
Payroll Taxes | $5,500 | $24,200 | $29,900 |
Other General and Administrative Expenses | $0 | $0 | $0 |
Total General and Administrative Expenses | $63,500 | $174,200 | $206,000 |
General and Administrative % | 39.32% | 11.01% | 7.49% |
Other Expenses: | |||
Other Payroll | $3,000 | $8,000 | $8,000 |
Consultants | $0 | $0 | $0 |
Contract/Consultants | $0 | $0 | $0 |
Total Other Expenses | $3,000 | $8,000 | $8,000 |
Other % | 1.86% | 0.51% | 0.29% |
Total Operating Expenses | $71,750 | $222,400 | $270,500 |
Profit Before Interest and Taxes | ($16,750) | $410,600 | $1,072,500 |
EBITDA | ($16,750) | $410,600 | $1,072,500 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $123,180 | $321,750 |
Net Profit | ($16,750) | $287,420 | $750,750 |
Net Profit/Sales | -10.37% | 18.16% | 27.28% |
Although Bottlieb Innovations is expected to be profitable by the end of FY2001, there are still drains on the cash flow. The cash flow numbers illustrated in the following chart are based on very conservative estimates of first year sales. Since manufacturing and assembling the Digital Geographer is not capital intensive, profits should be directly tied to sales and variable costs. Personnel costs will start to impact the cash flow more severely in FY2002.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $121,125 | $1,186,875 | $2,064,000 |
Cash from Receivables | $21,533 | $229,842 | $551,558 |
Subtotal Cash from Operations | $142,658 | $1,416,717 | $2,615,558 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $142,658 | $1,416,717 | $2,615,558 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $55,000 | $242,000 | $299,000 |
Bill Payments | $112,249 | $1,167,711 | $1,759,666 |
Subtotal Spent on Operations | $167,249 | $1,409,711 | $2,058,666 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $167,249 | $1,409,711 | $2,058,666 |
Net Cash Flow | ($24,590) | $7,006 | $556,892 |
Cash Balance | $72,410 | $79,416 | $636,308 |
The projected balance sheet, shown in the following table, shows a healthy increase in net worth. The company’s value is projected to increase steadily over the first three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $72,410 | $79,416 | $636,308 |
Accounts Receivable | $18,842 | $184,625 | $321,067 |
Inventory | $28,600 | $211,191 | $315,532 |
Other Current Assets | $1,800 | $1,800 | $1,800 |
Total Current Assets | $121,651 | $477,032 | $1,274,707 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $121,651 | $477,032 | $1,274,707 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $33,601 | $101,562 | $148,487 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $40,000 | $40,000 | $40,000 |
Subtotal Current Liabilities | $73,601 | $141,562 | $188,487 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $73,601 | $141,562 | $188,487 |
Paid-in Capital | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($35,200) | ($51,950) | $235,470 |
Earnings | ($16,750) | $287,420 | $750,750 |
Total Capital | $48,050 | $335,470 | $1,086,220 |
Total Liabilities and Capital | $121,651 | $477,032 | $1,274,707 |
Net Worth | $48,050 | $335,470 | $1,086,220 |
Standard business ratios are included in the following table. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8713, Surveying services, are shown for comparison. Bottlieb Innovations’ ratios show a plan for healthy, solid growth. Gross margin, net profit margin and ROA all show increases over time.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 879.88% | 73.90% | 7.10% |
Percent of Total Assets | ||||
Accounts Receivable | 15.49% | 38.70% | 25.19% | 34.20% |
Inventory | 23.51% | 44.27% | 24.75% | 2.80% |
Other Current Assets | 1.48% | 0.38% | 0.14% | 43.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 80.00% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 20.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 60.50% | 29.68% | 14.79% | 47.80% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 11.50% |
Total Liabilities | 60.50% | 29.68% | 14.79% | 59.30% |
Net Worth | 39.50% | 70.32% | 85.21% | 40.70% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 34.06% | 40.00% | 48.80% | 0.00% |
Selling, General & Administrative Expenses | 44.43% | 21.84% | 21.52% | 80.50% |
Advertising Expenses | 0.84% | 0.19% | 0.22% | 0.20% |
Profit Before Interest and Taxes | -10.37% | 25.95% | 38.97% | 3.00% |
Main Ratios | ||||
Current | 1.65 | 3.37 | 6.76 | 1.68 |
Quick | 1.26 | 1.88 | 5.09 | 1.38 |
Total Debt to Total Assets | 60.50% | 29.68% | 14.79% | 59.30% |
Pre-tax Return on Net Worth | -34.86% | 122.40% | 98.74% | 6.40% |
Pre-tax Return on Assets | -13.77% | 86.07% | 84.14% | 15.70% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -10.37% | 18.16% | 27.28% | n.a |
Return on Equity | -34.86% | 85.68% | 69.12% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 2.14 | 2.14 | 2.14 | n.a |
Collection Days | 52 | 94 | 134 | n.a |
Inventory Turnover | 9.16 | 7.37 | 5.01 | n.a |
Accounts Payable Turnover | 4.34 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 20 | 25 | n.a |
Total Asset Turnover | 1.33 | 3.32 | 2.16 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 1.53 | 0.42 | 0.17 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $48,050 | $335,470 | $1,086,220 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.75 | 0.30 | 0.46 | n.a |
Current Debt/Total Assets | 61% | 30% | 15% | n.a |
Acid Test | 1.01 | 0.57 | 3.39 | n.a |
Sales/Net Worth | 3.36 | 4.72 | 2.53 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Digital Geographer[DG-1] | 0% | 0 | 0 | 0 | 5 | 10 | 15 | 25 | 35 | 50 | 60 | 80 | 100 |
Digital Geographer[DG-2] | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Unit Sales | 0 | 0 | 0 | 5 | 10 | 15 | 25 | 35 | 50 | 60 | 80 | 100 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Digital Geographer[DG-1] | $0.00 | $0.00 | $0.00 | $425.00 | $425.00 | $425.00 | $425.00 | $425.00 | $425.00 | $425.00 | $425.00 | $425.00 | |
Digital Geographer[DG-2] | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
Other | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
Sales | |||||||||||||
Digital Geographer[DG-1] | $0 | $0 | $0 | $2,125 | $4,250 | $6,375 | $10,625 | $14,875 | $21,250 | $25,500 | $34,000 | $42,500 | |
Digital Geographer[DG-2] | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales | $0 | $0 | $0 | $2,125 | $4,250 | $6,375 | $10,625 | $14,875 | $21,250 | $25,500 | $34,000 | $42,500 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Digital Geographer[DG-1] | 0.00% | $0.00 | $0.00 | $0.00 | $280.00 | $280.00 | $280.00 | $270.00 | $270.00 | $270.00 | $260.00 | $260.00 | $260.00 |
Digital Geographer[DG-2] | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Digital Geographer[DG-1] | $0 | $0 | $0 | $1,400 | $2,800 | $4,200 | $6,750 | $9,450 | $13,500 | $15,600 | $20,800 | $26,000 | |
Digital Geographer[DG-2] | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $1,400 | $2,800 | $4,200 | $6,750 | $9,450 | $13,500 | $15,600 | $20,800 | $26,000 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Production Personnel | |||||||||||||
Supervisor | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,200 | $1,200 | $1,200 | $2,400 | |
Assembler 1 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Assembler 2 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,200 | $1,200 | $1,200 | $2,400 | |
Sales and Marketing Personnel | |||||||||||||
Product Manager | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
General and Administrative Personnel | |||||||||||||
George Bottlieb, President | $0 | $0 | $0 | $0 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,000 | $5,000 | |
Jay Rosenburg, Vice-President | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $4,500 | $4,500 | $4,500 | |
Receptionist / Administrative Assistant | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $9,500 | $9,500 | $9,500 | |
Other Personnel | |||||||||||||
Contractor, Mechanical Design | $0 | $0 | $0 | $1,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Contractor, PCB Design | $2,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $2,000 | $0 | $0 | $1,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total People | 0 | 0 | 0 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | |
Total Payroll | $2,000 | $0 | $0 | $1,000 | $2,500 | $3,000 | $3,500 | $4,000 | $5,700 | $10,700 | $10,700 | $11,900 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $97,000 | $94,960 | $93,767 | $92,767 | $92,342 | $91,450 | $90,650 | $88,580 | $85,911 | $84,330 | $76,479 | $75,606 | $72,410 |
Accounts Receivable | $0 | $0 | $0 | $0 | $531 | $1,576 | $2,621 | $4,197 | $6,286 | $8,907 | $11,510 | $14,663 | $18,842 |
Inventory | $6,000 | $6,000 | $6,000 | $6,000 | $4,600 | $3,080 | $4,620 | $7,425 | $10,395 | $14,850 | $17,160 | $22,880 | $28,600 |
Other Current Assets | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 |
Total Current Assets | $104,800 | $102,760 | $101,567 | $100,567 | $99,273 | $97,906 | $99,690 | $102,002 | $104,393 | $109,888 | $106,949 | $114,949 | $121,651 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $104,800 | $102,760 | $101,567 | $100,567 | $99,273 | $97,906 | $99,690 | $102,002 | $104,393 | $109,888 | $106,949 | $114,949 | $121,651 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $1,160 | $967 | $967 | $1,498 | $2,881 | $7,240 | $10,977 | $13,843 | $19,358 | $20,039 | $28,459 | $33,601 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 |
Subtotal Current Liabilities | $40,000 | $41,160 | $40,967 | $40,967 | $41,498 | $42,881 | $47,240 | $50,977 | $53,843 | $59,358 | $60,039 | $68,459 | $73,601 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $40,000 | $41,160 | $40,967 | $40,967 | $41,498 | $42,881 | $47,240 | $50,977 | $53,843 | $59,358 | $60,039 | $68,459 | $73,601 |
Paid-in Capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) | ($35,200) |
Earnings | $0 | ($3,200) | ($4,200) | ($5,200) | ($7,025) | ($9,775) | ($12,350) | ($13,775) | ($14,250) | ($14,270) | ($17,890) | ($18,310) | ($16,750) |
Total Capital | $64,800 | $61,600 | $60,600 | $59,600 | $57,775 | $55,025 | $52,450 | $51,025 | $50,550 | $50,530 | $46,910 | $46,490 | $48,050 |
Total Liabilities and Capital | $104,800 | $102,760 | $101,567 | $100,567 | $99,273 | $97,906 | $99,690 | $102,002 | $104,393 | $109,888 | $106,949 | $114,949 | $121,651 |
Net Worth | $64,800 | $61,600 | $60,600 | $59,600 | $57,775 | $55,025 | $52,450 | $51,025 | $50,550 | $50,530 | $46,910 | $46,490 | $48,050 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $2,125 | $4,250 | $6,375 | $10,625 | $14,875 | $21,250 | $25,500 | $34,000 | $42,500 | |
Direct Cost of Sales | $0 | $0 | $0 | $1,400 | $2,800 | $4,200 | $6,750 | $9,450 | $13,500 | $15,600 | $20,800 | $26,000 | |
Production Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,200 | $1,200 | $1,200 | $2,400 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $1,400 | $2,800 | $4,200 | $6,750 | $9,450 | $14,700 | $16,800 | $22,000 | $28,400 | |
Gross Margin | $0 | $0 | $0 | $725 | $1,450 | $2,175 | $3,875 | $5,425 | $6,550 | $8,700 | $12,000 | $14,100 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 34.12% | 34.12% | 34.12% | 36.47% | 36.47% | 30.82% | 34.12% | 35.29% | 33.18% | |
Operating Expenses | |||||||||||||
Sales and Marketing Expenses | |||||||||||||
Sales and Marketing Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Advertising/Promotion | $0 | $0 | $0 | $100 | $100 | $100 | $100 | $150 | $150 | $150 | $250 | $250 | |
Travel | $0 | $0 | $0 | $250 | $250 | $250 | $250 | $250 | $250 | $500 | $500 | $500 | |
Miscellaneous | $0 | $0 | $0 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Total Sales and Marketing Expenses | $0 | $0 | $0 | $450 | $450 | $450 | $450 | $500 | $500 | $750 | $850 | $850 | |
Sales and Marketing % | 0.00% | 0.00% | 0.00% | 21.18% | 10.59% | 7.06% | 4.24% | 3.36% | 2.35% | 2.94% | 2.50% | 2.00% | |
General and Administrative Expenses | |||||||||||||
General and Administrative Payroll | $0 | $0 | $0 | $0 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $9,500 | $9,500 | $9,500 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Rent | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
Payroll Taxes | 10% | $200 | $0 | $0 | $100 | $250 | $300 | $350 | $400 | $570 | $1,070 | $1,070 | $1,190 |
Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total General and Administrative Expenses | $1,200 | $1,000 | $1,000 | $1,100 | $3,750 | $4,300 | $4,850 | $5,400 | $6,070 | $11,570 | $11,570 | $11,690 | |
General and Administrative % | 0.00% | 0.00% | 0.00% | 51.76% | 88.24% | 67.45% | 45.65% | 36.30% | 28.56% | 45.37% | 34.03% | 27.51% | |
Other Expenses: | |||||||||||||
Other Payroll | $2,000 | $0 | $0 | $1,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Contract/Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Expenses | $2,000 | $0 | $0 | $1,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other % | 0.00% | 0.00% | 0.00% | 47.06% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Total Operating Expenses | $3,200 | $1,000 | $1,000 | $2,550 | $4,200 | $4,750 | $5,300 | $5,900 | $6,570 | $12,320 | $12,420 | $12,540 | |
Profit Before Interest and Taxes | ($3,200) | ($1,000) | ($1,000) | ($1,825) | ($2,750) | ($2,575) | ($1,425) | ($475) | ($20) | ($3,620) | ($420) | $1,560 | |
EBITDA | ($3,200) | ($1,000) | ($1,000) | ($1,825) | ($2,750) | ($2,575) | ($1,425) | ($475) | ($20) | ($3,620) | ($420) | $1,560 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($3,200) | ($1,000) | ($1,000) | ($1,825) | ($2,750) | ($2,575) | ($1,425) | ($475) | ($20) | ($3,620) | ($420) | $1,560 | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | -85.88% | -64.71% | -40.39% | -13.41% | -3.19% | -0.09% | -14.20% | -1.24% | 3.67% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $1,594 | $3,188 | $4,781 | $7,969 | $11,156 | $15,938 | $19,125 | $25,500 | $31,875 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $18 | $549 | $1,080 | $1,629 | $2,692 | $3,772 | $5,348 | $6,446 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $1,594 | $3,205 | $5,330 | $9,049 | $12,785 | $18,629 | $22,897 | $30,848 | $38,321 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $1,594 | $3,205 | $5,330 | $9,049 | $12,785 | $18,629 | $22,897 | $30,848 | $38,321 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,000 | $0 | $0 | $1,000 | $2,500 | $3,000 | $3,500 | $4,000 | $5,700 | $10,700 | $10,700 | $11,900 | |
Bill Payments | $40 | $1,193 | $1,000 | $1,018 | $1,598 | $3,130 | $7,619 | $11,454 | $14,510 | $20,049 | $21,020 | $29,617 | |
Subtotal Spent on Operations | $2,040 | $1,193 | $1,000 | $2,018 | $4,098 | $6,130 | $11,119 | $15,454 | $20,210 | $30,749 | $31,720 | $41,517 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $2,040 | $1,193 | $1,000 | $2,018 | $4,098 | $6,130 | $11,119 | $15,454 | $20,210 | $30,749 | $31,720 | $41,517 | |
Net Cash Flow | ($2,040) | ($1,193) | ($1,000) | ($425) | ($892) | ($800) | ($2,070) | ($2,668) | ($1,581) | ($7,852) | ($872) | ($3,197) | |
Cash Balance | $94,960 | $93,767 | $92,767 | $92,342 | $91,450 | $90,650 | $88,580 | $85,911 | $84,330 | $76,479 | $75,606 | $72,410 |
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Table of contents, a comprehensive guide to a land surveying business plan.
Before diving into the intricacies of starting a land surveying business, it’s crucial to have a solid understanding of the importance of land surveys and the various types of surveys conducted.
Land surveys play a vital role in various industries and serve multiple purposes. They are essential for property ownership, land development, construction, engineering, and environmental protection. By conducting accurate land surveys, surveyors can determine property boundaries, identify encroachments, establish easements, and ensure compliance with zoning regulations.
Land surveys help prevent legal issues that may arise from disputes over land boundaries, encroachments, easements, or zoning violations. They provide a clear understanding of the spatial characteristics of a piece of land, enabling stakeholders to make informed decisions about its use and development. Land surveys are a foundational component of any land-related project, ensuring accuracy, compliance, and legal protection.
There are several types of land surveys, each with its own standards, methods, and deliverables. The choice of survey type depends on the specific requirements of the project. Some common types of land surveys include:
Survey Type | Description |
---|---|
Boundary Surveys | These surveys determine the legal boundaries and corners of a property, helping to identify encroachments or discrepancies between property lines. |
Topographic Surveys | Topographic surveys capture the natural and man-made features of a piece of land, including contours, elevations, trees, buildings, and utilities. They provide a detailed representation of the land’s surface and are essential for engineering and design projects. |
Construction Surveys | Construction surveys are conducted during the construction process to ensure that structures are being built in accordance with the approved plans and specifications. They involve stakeouts, elevation verification, and monitoring of construction progress. |
Subdivision Surveys | These surveys are conducted to divide larger parcels of land into smaller lots for residential, commercial, or industrial development. They involve establishing lot boundaries, roadways, utilities, and other necessary elements. |
ALTA/NSPS Surveys | ALTA/NSPS surveys are comprehensive surveys that adhere to the standards set by the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS). They provide detailed information about a property’s boundaries, improvements, easements, encroachments, and other relevant features. ALTA/NSPS surveys are commonly used in commercial real estate transactions. |
Understanding the different types of land surveys is essential for surveyors starting a land surveying business. Each type requires specialized knowledge, equipment, and expertise to ensure accurate and reliable results. By offering a range of surveying services, surveying businesses can cater to the diverse needs of their clients and establish a strong reputation in the industry.
Now that we have a solid foundation in the importance of land surveys and the various types available, we can move forward to explore the steps involved in starting a land surveying business.
When venturing into the land surveying industry, it’s important to lay a strong foundation for your business. This involves careful planning and consideration of various aspects such as business planning, legal considerations, and financial planning.
Before starting your land surveying business, it’s essential to create a comprehensive business plan. This plan will serve as a roadmap for your company’s success. It should include a detailed analysis of the market, target audience, and competition. Additionally, it should outline your business goals, marketing strategies, operational processes, and financial projections.
Developing a well-thought-out business plan enables you to identify potential challenges and opportunities, helping you make informed decisions to set your business on the right path. It also serves as a valuable tool when seeking financing or investors for your land surveying business.
Navigating the legal aspects of a land surveying business is crucial to ensure compliance and mitigate potential risks. It’s important to familiarize yourself with the specific legal requirements and regulations in your jurisdiction. This may include obtaining the necessary licenses and permits, adhering to professional standards, and understanding local zoning and land use regulations.
Hiring a professional land surveyor is essential to ensure accurate and legally compliant land surveying projects. When selecting a surveyor, consider qualifications, experience, technology, communication, cost, and project timeline ( Faster Capital ). Collaborating with legal professionals who specialize in land surveying can also provide valuable guidance in navigating legal issues that may arise.
Proper financial planning is crucial for the success and sustainability of your land surveying business. Start by estimating your startup costs, including equipment, software, office space, and marketing expenses. Consider establishing relationships with suppliers and vendors to negotiate favorable terms.
Develop a detailed financial forecast that includes projected revenue, expenses, and cash flow. This will help you understand the financial viability of your business and make informed decisions regarding pricing, budgeting, and growth strategies.
Additionally, it’s important to secure appropriate insurance coverage for your land surveying business. This may include general liability insurance, professional liability insurance, and worker’s compensation insurance. Insurance coverage protects your business from potential liabilities and ensures that you are adequately protected in the event of accidents or legal claims.
By carefully considering and addressing the areas of business planning, legal considerations, and financial planning, you can establish a solid foundation for your land surveying business. This will set you on the path towards success and enable you to provide accurate and reliable surveying services to your clients while ensuring compliance with legal and professional standards ( A Touch of Business ).
To successfully establish and grow your land surveying business, implementing effective marketing strategies is essential. By identifying your target audience, enhancing your branding and visibility, and establishing partnerships and collaborations, you can attract clients and build a strong reputation in the industry.
One of the first steps in developing a marketing strategy for your land surveying business is identifying your target audience. Consider the specific services your company offers, such as land surveying, topographic surveys, construction surveying, subdivisions, elevation surveys, ALTA surveys, scanning, and drone surveying ( LinkedIn ). Determine the industries or individuals who would benefit from these services, such as real estate agencies, real estate attorneys, home builders, and property developers.
Understanding the needs and preferences of your target audience will help tailor your marketing efforts to effectively reach and engage potential clients. This can include creating targeted advertising campaigns, developing content that addresses their specific challenges, and utilizing permission-based marketing techniques to ensure visibility on search engines like Google ( LinkedIn ).
Establishing a strong brand identity and ensuring visibility in the market is crucial for the success of your land surveying business. Emphasize your expertise and customer service through various marketing activities to differentiate yourself from competitors ( LinkedIn ). Consider the following strategies:
These branding and visibility strategies will help position your land surveying business as a trusted and reliable source for surveying services.
Creating partnerships and collaborations can significantly benefit your land surveying business by increasing business opportunities and establishing credibility. Consider forming relationships with real estate agencies, real estate attorneys, home builders, and other professionals in related industries ( LinkedIn ). Collaborate on projects, offer joint services, or provide referrals to enhance your reach and tap into new client bases.
Another approach is to establish strategic alliances with complementary businesses, such as civil engineering firms or environmental consultants. By combining your expertise, you can offer comprehensive solutions to clients and increase your competitive advantage.
When forming partnerships or collaborations, it’s important to establish mutually beneficial agreements and clearly define roles and responsibilities. This ensures a smooth working relationship and maximizes the potential for business growth.
By implementing targeted marketing strategies, enhancing your branding and visibility, and establishing strategic partnerships and collaborations, you can effectively promote your land surveying business and attract a steady stream of clients. Regularly evaluate and adjust your marketing efforts based on feedback and industry trends to stay ahead of the competition and unlock new opportunities for success.
When establishing a land surveying business, there are several operational aspects to consider in order to ensure its success. This section will explore three key areas: service differentiation, technological integration, and professional responsibilities.
Service differentiation is crucial to stand out in the competitive land surveying industry. By providing unique and exceptional services, you can attract and retain clients. There are several ways to differentiate your business:
Delivery and Customer Service : Offer prompt and reliable service to clients, ensuring that their needs are met in a timely manner. This includes effective communication, responsiveness, and delivering accurate survey results.
Training and Installation : Provide training for clients on how to interpret and utilize survey data effectively. Additionally, offer installation services for surveying equipment to ensure proper setup and functionality.
Ease of Ordering : Streamline the process of ordering surveys by providing convenient online platforms or customer portals. Simplify the paperwork and make it easy for clients to request and receive surveying services.
Emphasizing service differentiation will help establish your land surveying business as a reliable and reputable provider. By implementing strategies for delivery, customer service, training, installation, and ease of ordering, you can set your business apart from competitors ( Market Research ).
Technological advancements have significantly impacted the land surveying industry, improving accuracy, efficiency, and overall project outcomes. It is essential to integrate these technologies into your business to stay competitive and provide high-quality services.
3D Laser Scanning : Incorporate 3D laser scanning technology for precise and detailed mapping of land surfaces, structures, and infrastructure. This technology allows for the creation of accurate 3D models and point clouds.
Drones : Utilize drones equipped with high-resolution cameras and LiDAR sensors to capture aerial imagery and generate accurate topographic maps. Drones can efficiently survey large areas and inaccessible terrains.
GNSS (Global Navigation Satellite System) : Integrate GNSS technology, such as GPS, GLONASS, or Galileo, to enhance the accuracy of positioning and establish control points for surveys.
BIM (Building Information Modeling) : Adopt BIM software to create digital representations of land and infrastructure projects. BIM allows for collaboration, coordination, and visualization of project data.
By embracing these advanced technologies, you can improve data collection, analysis, and overall efficiency in your land surveying business. Clients will appreciate the accuracy and detailed information that these technologies provide ( LinkedIn ).
As a land surveyor, it is essential to uphold professional responsibilities to ensure the integrity and reliability of your business. These responsibilities include:
Adherence to Standards : Follow industry standards and best practices in all surveying activities. This includes maintaining accuracy, precision, and ethical conduct.
Continuing Education : Stay updated with the latest advancements in land surveying through continuous learning and professional development. Attend workshops, seminars, and conferences to enhance your knowledge and skills.
Legal Compliance : Ensure compliance with all legal requirements and regulations related to land surveying. This includes obtaining necessary licenses, permits, and insurance coverage for your business ( surveying business license requirements and surveying business insurance ).
Client Confidentiality : Maintain strict client confidentiality by safeguarding survey data and protecting sensitive information.
By fulfilling these professional responsibilities, you establish trust and credibility with clients, reinforcing your reputation as a competent and reliable land surveyor.
Operational aspects play a vital role in the overall success of your land surveying business. By focusing on service differentiation, technological integration, and professional responsibilities, you can build a strong foundation for your business and provide exceptional services to clients.
As the field of land surveying continues to evolve, it is essential for professionals to stay informed about emerging trends that can shape the future of the industry. This section explores some of the key trends that are currently transforming land surveying practices.
The integration of advanced technologies has significantly impacted the field of land surveying, revolutionizing traditional practices and enhancing accuracy, efficiency, and overall project outcomes. Professionals are increasingly utilizing technologies such as 3D laser scanning, drones, GNSS (Global Navigation Satellite System), BIM (Building Information Modeling), AR/VR (Augmented Reality/Virtual Reality), and cloud-based solutions.
These technologies enable surveyors to streamline data collection, analysis, and visualization processes. For example, 3D laser scanning allows for the rapid capture of detailed, high-resolution data, while drones provide a cost-effective and efficient way to gather aerial imagery and conduct topographic surveys. GNSS technology enhances positioning accuracy, while BIM and AR/VR offer improved visualization and collaboration capabilities.
By embracing these advanced technologies, land surveyors can enhance their capabilities, provide more accurate data, and contribute to the success of infrastructure projects. For more information on these technologies and their applications in land surveying, visit our article on how to start a surveying company .
The land surveying industry is undergoing a significant transformation due to the integration of advanced technologies and evolving project requirements. These changes bring about new opportunities and challenges for professionals in the field.
The adoption of advanced technologies has led to increased efficiency and productivity in land surveying projects. It has also facilitated data integration and collaboration among project stakeholders, resulting in improved decision-making and project outcomes. With the growing demand for accurate spatial data in various industries, land surveyors are playing a crucial role in supporting infrastructure development, construction, urban planning, and environmental management.
To stay ahead in this evolving industry, land surveyors must continuously update their skills and knowledge to adapt to changing project requirements and technological advancements. By keeping abreast of industry trends, professionals can position themselves as leaders and contribute to the growth and success of the land surveying field.
The future of land surveying holds exciting possibilities, with emerging trends opening up new opportunities for professionals in the field. As technology continues to advance, land surveyors can expect to see further improvements in data collection, analysis, and visualization techniques.
With the increasing demand for accurate spatial data, the need for skilled land surveyors will remain strong. Professionals who embrace emerging trends and technologies will be well-positioned to lead the way in this dynamic industry. By staying updated and adapting to new methodologies and technologies, land surveyors can enhance their capabilities, provide accurate data, and contribute to the success of infrastructure projects.
As the industry continues to evolve, it is essential for land surveyors to stay informed and continuously develop their skills to meet the changing needs of clients and projects. By embracing emerging trends and technologies, professionals can unlock new opportunities and contribute to the advancement of the land surveying field.
Remember to visit our article on surveying business license requirements to ensure compliance and legal aspects in your land surveying business.
When starting or running a land surveying business, understanding the legal aspects is essential to ensure accuracy, compliance, and avoid potential legal disputes. In this section, we will explore common legal issues in land surveying, the importance of hiring a professional surveyor, and the significance of ensuring compliance.
Land surveying can involve various legal complexities, and being aware of common legal issues is vital to navigate them effectively. Some of the common legal issues in land surveying include:
By being aware of these common legal issues, land surveyors can take proactive measures to address them and provide accurate and legally compliant services to their clients.
One of the most important steps in land surveying is hiring a professional surveyor. A professional surveyor brings expertise, experience, and knowledge of the legal aspects of land surveying. When selecting a surveyor, consider the following factors:
Hiring a professional surveyor not only ensures accurate survey results but also helps minimize the risk of legal disputes by adhering to legal requirements and industry best practices.
Legal compliance is of utmost importance in land surveying. Adhering to local regulations, professional standards, and ethical guidelines helps maintain the integrity of the profession and ensures accurate and legally valid survey results.
To ensure compliance, surveyors should:
By prioritizing legal compliance, surveyors can build a reputation for accuracy, professionalism, and reliability in their land surveying business.
Understanding the legal aspects of land surveying, hiring a professional surveyor, and ensuring compliance are essential components of a successful land surveying business. By navigating the legal landscape effectively, surveyors can provide accurate and legally compliant services while minimizing the risk of legal disputes.
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Last month, I wrote about business planning in general. This column is specifically about a business plan.
Whether you are the principal, owner, or partner of an existing survey practice, or your about to start a new business, taking the time to write a business plan is a worthwhile investment of your time.
In 2016, David Gardy, LS, a Virginia surveyor and a past President of the Virginia Association of Surveyors, was the instructor of a seminar on “ Starting Your Own Surveying Practice ” at the fall conference of the Maryland Society of Surveyors. He noted, “there are numerous resources available to help in developing a business plan. Your business plan will be an invaluable tool in developing your thoughts and presenting your ideas for the business to potential business partners”.
In a blog on the U.S. Small Business Administration’s (SBA) website, Allen Gutierrez, Associate Administrator of SBA’s Office of Entrepreneurial Development provides reasons for a business plan, including to help steer the business; set milestones, benchmarks, and metrics to monitor growth and goal attainment; and obtain funding from banks or other investors. The blog also includes links to numerous SBA resources.
A business plan need not be voluminous. It should not fill a three-ring binder or be so cumbersome that upon completion it sits on a shelf never to be seen or used again. There are some advisers who advocate a one-page business plan, with one simple sentence for each category, or using a “GPS” method of stating an overall goal, three priorities to reaching the goal, and five strategies items for each priority. But a more thorough plan can easily be less than 10 pages in length. Some of the sections of a business plan could include:
In an existing firm, development of the business plan should be a team effort, including all employees or, at a minimum, senior staff. It can be compiled by in-house staff or with an outside consultant and facilitator. Assistance is available from several SBA programs, such as the Service Corps of Retired Executives (SCORE), Small Business Development Centers (SBDC) or a Women’s Business Center. There are several SBDC offices throughout the United States . There is also online SBA assistance on writing a business plan .
Upon completion, it should be shared with all employees. Most importantly, it should be reviewed on a periodic basis with an analysis of how well the firm is doing in meeting the plan.
The 12 elements of a business plan need not go into great detail. Next month, we’ll discuss creating a strategic plan, which is a supplement, not a duplicate of a business plan.
John Palatiello is Executive Director of the Maryland Society of Surveyors (MSS) and Virginia Association of Surveyors (VAS), and Vice President Miller/Wenhold Capitol Strategies, a public affairs consulting firm based in Fairfax, VA, providing government relations, public relations, association management, strategic planning, event planning, and management and marketing consulting services to private firms, associations, and government agencies. He is also national government affairs consultant to the National Society of Professional Surveyors (NSPS). He has more with 30 years of experience working in the architecture and engineering; geospatial, mapping and GIS; information technology; construction; transportation and infrastructure, and land use sectors. This article is an edited version of what first appeared in the MSS and VAS newsletters.
It's official. You're going to become an entrepreneur and start a land surveyors business. What's next? Getting started can be intimidating, but we're here to help.
Wondering how to start a land surveyors business? We take you step-by-step from start to success.
State of the Industry
The land surveying industry has come a long way in the past twenty years. Without a doubt, the biggest change has been the transition away from manual surveying tools to sophisticated surveying technologies.
Today, the leading land surveyor businesses utilize electronic data collection, computer aided graphing and global positioning systems. While these changes have improved surveying speed and accuracy, they have also created higher capital requirements for entrepreneurs trying to break into the industry.
Scope of Surveying Services
Startup surveyors can't afford to specialize in a particular market niche. Until you establish yourself as a quality surveyor, your business will need to service a wide range of private and governmental clients.
Likewise, you'll need to be ready to provide a variety of surveying services including land title surveys, boundary surveys, construction staking, GPS control surveys, utility surveys, route surveys and more. Since each survey you perform represents a potential repeat client, you'll need to demonstrate that you're capable of handling the full spectrum of survey types to build your client base.
Staffing a Startup Survey Business
During the early stages of your survey business, your firm's only employees will probably be you and an assistant (or family member). As your business grows, you can begin to add staff to accommodate increased demand.
However, every new hire has to be able to hit the ground running from their first day on the job. Your startup's reputation depends solely on the quality of the services you provide. So in addition to being certified, your surveyors need to be experienced and knowledgeable about local customs.
Best Practices for Writing a Land Surveyors Company Business Plan
Many new land surveyors business owners feel unprepared for the challenge of writing a business plan.
But even though you have primary responsibility for drafting a business plan for your land surveyors business, you aren't entirely alone. These days, there are tons of great resources and solutions available to support the business plan writing process.
If you're feeling overwhelmed, take a look at Gaebler's Business Plan Help section for a list of business plan writing resources.
Check Out Competitors
Prior to launching a land surveyors business within your community, it's worthwhile to see how strong the competition is. Try our link below to find competitors in your area. Complete the form by entering your city, state and zip code to get a list of land surveyors businesses that are close by.
Is the local market large enough to support another land surveyors business? If not, you had better be sure that you are doing things much better than the competition.
Talk to People Who Are Already in the Business
After you've evaluated your local competitors, it's a wise move to talk to somebody who is already in the business. Local competitors are not going to give you the time of day, mind you. Why would they want to educate a future competitor?
Thankfully, an owner of a a land surveyors business outside of your community may be willing to share their entrepreneurial wisdom with you, after they realize you reside far away from them and won't be stealing their local customers. In that case, the business owner may be more than happy to discuss the industry with you. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.
Where do you find a land surveyors business founder that lives outside of your area?
Here's how we would do it. Try the useful link below and key in a random city/state or zipcode.
Benefits & Drawbacks of a Land Surveyors Business Acquisition
An acquisition can be a great way to enter land surveyors business ownership. But it's important to evaluate the benefits and drawbacks of buying a business before you decide on either an acquisition or startup approach.
BENEFITS: Acquired land surveyors businesses should be profitable right out of the gate; they should also be capable of demonstrating a loyal customer base, brand identity and operational efficiencies.
DRAWBACKS: On the downside, land surveyors business acquisitions can be difficult to adapt to your unique business philosophy so it's important to make sure the business is capable of achieving your ownership goals before you initiate the buying process.
Franchising May Be a Better Way to Go
If you are launching your first business venture, it might be wise to contemplate whether it makes sense to franchise instead of doing everything yourself.
If your goal is to start a land surveyors business, a smart move is to determine whether purchasing a franchise might help you on your entrepreneurial journey.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
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Mapping Your Future: The Allure of a Land Surveying Business Venture
Related business ideas, discover your perfect domain, land surveying mini business plan, expected percent margin:, earnings expectations:, actions to hit those numbers:, equipment and technology:, marketing and customer acquisition:, licensing and insurance:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if a land surveying business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, tips for choosing a name, how to register the business name, step 3: obtain licensing and certifications, requirements for licensing and certifications, how to obtain the necessary licensing and certifications, step 4: create a business plan, elements of a business plan, tips for creating a business plan, step 5: find a location, factors to consider when selecting a location for a land surveying business include the size of the space needed, the cost of the space, the local zoning laws, and the availability of parking. it is also important to consider the local demographics and the competition in the area. it is important to select a location that is easily accessible and visible to potential customers., tips for finding the right location for a land surveying business include researching the local zoning laws, researching the area to determine the competition, and researching the local demographics to determine the target market. additionally, it is important to look for a space that is large enough to accommodate the necessary equipment and staff, and that is easily accessible and visible to potential customers. it is also important to consider the cost of the space and the availability of parking. finally, it is important to consider the potential for growth in the area and the potential for expansion., step 6: purchase equipment, types of equipment needed, tips for purchasing the right equipment, step 7: market your business, ways to market your business, tips for successful marketing, step 8: hire employees, tips for hiring the right employees, how to create a job description, step 9: keep records, types of records to keep, tips for keeping accurate records, explore more categories, take the next steps.
Interesting Places to be at African Surveyors Connect
A continuation on the series HOW TO START A LAND SURVEYING . This article is based on step number one (1) on the points outlined in the initial post.
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
What will you name your business.
What are the costs involved in opening a land surveying business?
A land surveyor is a professional occupation and starting a business in the field is expensive. Besides the tens of thousands of dollars for training, there is the cost of surveying and computer equipment which can add tens of thousands of more dollars to the bill. Renting or buying a used surveying system can save a business a lot of money when it is getting started. In addition to the cost of the education and equipment, there is still the expense of renting an office, hiring staff, and marketing. Due to the nature of the business, most land surveying experts suggest companies purchase comprehensive liability insurance to protect them from lawsuits.
Since the accuracy of surveying equipment is critical, it is important to maintain and routinely test all equipment. Any inaccurate or worn out equipment needs replacing immediately. Then there is the labor cost, plus the expensive of renting an office and marketing.
The target markets for a land surveying business are homeowners, land developers and public organizations. When starting a land surveying business, finding clients is one of the most difficult parts. New businesses can’t afford to specialize in one particular area of the industry.
Clients hire land surveying businesses to create precise measurements of a property. There are a wide range of potential clients including land developers, homeowners and public organizations.
Land surveyors can charge by the hour or by the job. The cost of surveying depends on a number of factors including the size, location and type of property, in addition to the type if report or map the client needs. The average cost for a land survey of a residential property on ImproveNet is $463 .
According to the BLS, the median income for a land surveyor is $59,390 per year . The income can vary greatly depending on the type of land surveying.
Increasing the type of land surveying services a business offers is a great way to secure more work and higher profits. Land surveying business owners may also consider earning a license to fly drones so they can offer their clients aerial photography to help market a property.
Choosing the right name is very important. If you don’t have a name in mind already, read our detailed guide on how to name a business or get some help brainstorming a name with our Business Name Generator.
Then, when registering a business name we recommend checking if the business name is available in your state, federally by doing a trademark search, searching the web, and making sure the name you choose is available as a web domain to secure it early so no one else can take it.
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About the author.
Kumbirai is a Monitoring, Evaluation, and Learning (MEL) practitioner who began his journey as a GIS analyst and GIS developer. While he still works, explores, and experiments with spatial data among various tools, he is obsessed with the dynamics of spatial data and innovation towards driving sustainable causes.
Kumbirai is also an assistant lecturer in the field of geomatics in Zimbabwe and a mentor who loves sharing knowledge and transferring skills to the younger generation.
In today’s digital age, a website is the face of your brand, and having a well-designed and functional website is essential for businesses to succeed online. Our web development services combine creativity and technical expertise to build custom websites that not only look great but also deliver a seamless user experience across all devices.
From responsive design to e-commerce integration, our team of web developers has the skills and experience to bring your vision to life and help your business thrive in the online world. Let us help you create a website that showcases your brand and drives growth for your business. Get in touch via WhatsApp on +263-77-6-887-606 or send me an Email on [email protected]
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Whether you plan to operate your land survey business independently or with a fully staffed team will significantly impact your monthly expenses. Employee salaries, benefits, and related expenses will be substantial if you opt for a larger team. 2. Location: Your choice of business location plays a crucial role in determining monthly expenses.
land survey business plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free.
By utilizing the Land Surveyor Business Plan Template in ClickUp and following the steps outlined below, you can pave the way for a thriving business that meets your goals and objectives. Let's get started! 1. Define your business objectives. Begin by clearly outlining the objectives and goals you aim to achieve with your land surveying business.
This business plan proposes establishing a surveying and consultancy firm. The firm will provide land surveying services to clients in Kenya. It will be a sole proprietorship owned and managed by Magga Okoth Markus. The plan outlines the company's goals, marketing, operations, production, and financial projections. Key aspects include targeting individual and corporate clients, competing on ...
In your land surveying firm business plan, the second section should focus on the structure and ownership, location, and management team of your company. In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares.
The Company. Bottlieb Innovations, Inc. is located in an industrial district of Escondido, CA. The approximately 1,500 square-foot, freeway-close facility includes office, workshop, and assembly space, as well as ample parking. George S. Bottlieb, president and CEO, is responsible for product design, development, sales, and overall business ...
land survey business plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. survey firm
Instructions in each section to help you complete the document. A well-written business plan is essential to the success of your surveying business. This business plan template is totally customizable to fit your needs. Download Type: Microsoft Word. Last Updated: 29-December-2021. SKU: 6023.
Understanding Land Surveying Business. Before diving into the intricacies of starting a land surveying business, it's crucial to have a solid understanding of the importance of land surveys and the various types of surveys conducted. Importance of Land Surveys. Land surveys play a vital role in various industries and serve multiple purposes.
One of the first tasks is to create a comprehensive business plan outlining your goals and objectives, the types of surveying you will offer, the sectors you will target, and the strategies you will use to market your business, generate leads, and attract partners. A well-crafted plan helps ensure your land surveying business has the best ...
continually harping about better ways of doing business. One of the very enjoyable aspects of land surveying is the elegant simplicity of survey systems. The Public Land Survey System, for example, is beautifully thought out, but quite simple in concept. Likewise, the rules of excess and deficiency, paramount title, and location by
The Business of Surveying: Creating Your Firm's Business Plan. John M. Palatiello 02.08.2021. Last month, I wrote about business planning in general. This column is specifically about a business plan. Whether you are the principal, owner, or partner of an existing survey practice, or your about to start a new business, taking the time to ...
Maryland Society of Surveyors Fall Conference Solomons, MD October 28 - 29, 2016. tarting Your Own Surveying Practice"Many surveyors dream of starting their own firm. but most have no idea how to start. This session will feature one surveyor's experience going out on his own, including how he took the plunge, what he did to get started, how he ...
The land surveying industry has come a long way in the past twenty years. Without a doubt, the biggest change has been the transition away from manual surveying tools to sophisticated surveying technologies. ... Best Practices for Writing a Land Surveyors Company Business Plan. Many new land surveyors business owners feel unprepared for the ...
Step 5: Find a Location. Factors to consider when selecting a location for a land surveying business include the size of the space needed, the cost of the space, the local zoning laws, and the availability of parking. It is also important to consider the local demographics and the competition in the area.
To ensure a smooth launch and sustainable growth of your land surveying business, consider these key takeaways: Develop a comprehensive business plan that outlines your goals, strategies, and financial projections. Obtain all required licenses, permits, and insurance to operate legally and protect your business.
Land surveyors can charge by the hour or by the job. The cost of surveying depends on a number of factors including the size, location and type of property, in addition to the type if report or map the client needs. The average cost for a land survey of a residential property on ImproveNet is $463.
The Land Surveyor in National Economic Development Planning Prepared by Fitzherbert Reyes M.Sc. TTLS, MISTT 25 October 2016 BACKGROUND Land surveyors have an important part to play in national economic development planning. They set the information foundation that has integrity and is reliable, robust and can be used for socio-
education and as such are compelled to acquire business knowledge through experience and continuing study. This course aims to study business fundamentals as they relate to the land surveying profession. Professional competence is assumed and accordingly there will be little, if any, discussion of the actual performance of surveying work.
ac 2 BUSINESS PLAN.docx - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. AC Innovative Surveyor Instrument Shop has developed a new device to simplify area measurements for surveyors. The device allows surveyors to compute areas much faster than traditional distance wheels, transforming complex calculations into a simple task.
Request accessible format. If you need help with this information, please email 311, or call 311 or 612-673-3000.. Please tell us what format you need. It will help us if you say what assistive technology you use.
TRAVERSE CITY — After roughly two years, thousands of survey responses and numerous input sessions, Traverse City's rewritten master plan is all but finished. Planning commissioners on Tuesday ...
NYSAPLS, Inc. 146 Washington Avenue, Albany NY 12210. Introduction to Performing Basic Land Surveys. Objectives. 1. Introduce the concept of performing basic land surveys. 2. Using a hands-on exercise, students will learn the fundamentals of surveying a plot of land. Materials. 1.
Business plan example - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. 1. The document is a business plan for GEOScales Trading, a venture that will sell state-of-the-art surveying equipment in Central Luzon, Philippines. 2. The plan outlines the company's objectives, keys to success, organizational structure, product line, financial ...