Architectural Designing Firm Business Plan Marketing Essay

Architectural Designing Firm Business Plan Marketing Essay Contemporary Island Designers Associates (C.I.D.) will be an Architectural Designing as well as Cost Estimating, Building Construction, Project Management and Consultations business specializing in residential and small commercial structures in the Jamaican domestic and commercial market, temporarily based out of my home in the Kingston 10 Area of Jamaica. The business will provide consultation and Draughting services using technologically superior processes, providing greater value for clients and enhanced  design and construction. The target clients are segmented into three categories; potential and existing home owners and developers initially. Contemporary Island Designers competitive edge will be the knowledge of digital-based design resources, creativity and results orientated. Superior customer service will also be  a point of firm differentiation. First year profits are expected to reach $xxxxx and increase to $xxxxx by the third year of operation. We will be profitable within three years of starting. The most significant challenges ahead include: (a). securing a suitable location (b) establishing the initial client base and (c)  positioning the business to be able to have a presence in a larger market. This business plan outlines the objective, focus, and implementation of this start-up firm. 1.1 Mission Contemporary Island Designers Associates will offer a new type of digital interactive media for both the client and the builder. This media will clearly show the client and the builder exactly what the design will look like in a three dimensional (Animated) perspective and the method(s) of construction. With this new form of media, the client does not have to know anything about Architectural designing graphics or terminology (floor plans, sections, elevations construction documents) to have a clear understanding of what the end result will look like. This is possible through the use of computer-rendered images and interactive video. This media will be taken one step further by using it in the construction documents as well. The builder(s) may be provided with an interactive video rendering of the entire building containing both visual photographic quality images and construction specs. Specific details will be worked out in three dimensions in such a way that anyone who knows how to use a computer will be able to access and understand this new means of Architectural presentation. 1.2 Keys to Success Provide a service that is technologically superior to the competitions. Utilizing the skills and knowledge gained in a competent and efficient manner through a diverse staff of Architectural Technologist/Draughtsman to provide a wide variety of product styles. A large array of connections and associations with reputable professionals and business executives. Objectives To establish and keep satisfied a vast client base. To provide quality workmanship to satisfy costumer(s) needs and to sustain the reputation of designing and construction in the Jamaican industry. Sales of at least $540,000 in  Year 3  and $725,000 by Year 4. Market expansion of 20% per year via the  Internet and other mediums. Creating new niche in market by  Year 4  of three dimensional construction documents and interactive digital presentation to clients. Company Summary Contemporary Island Designers Associates will provide a service of Architectural designs via digital media to the limits of technology. This approach will  offer optimal efficiency to the firm and superior value, design processes, and construction methods to the client. 2.1Businnes Ownership Contemporary Island Designers will be created as a Kingston operation based initially in the Molynes Road area. It will be  owned by its principal investor and operator, Mr. Miguel Wood. 2.2 Start-up Summary Contemporary Island Designers start-up costs total $xxxxx. The most significant purchases needed are a plotter, office printer, and desktop and laptop computer. Five hundred thousand dollars ($500,000) will be needed in cash to sustain the business for the first  year to cover rent and wages until a profit is made. 2.3 Company Locations and Facilities The  interim office of Contemporary Island Designers Associates will be located at my home at Tamarind Avenue, Kingston until dedicated office space is secured. Services Contemporary Island Designers Associates will provide many levels of service such as Architectural Designing and Planning, Cost Estimating, Building Construction, Project Management and Consultations to cater to large and small  corporations and entities, along with making it affordable for middle and upper socioeconomic classes. 3.1 Service Description In order for Contemporary Island Designers Associates to provide this new innovative service of digital media, the company will use high speed computers running programs such as AutoCAD, AutoCAD Architecture Rivet Architecture and 3D Max. To keep up with changes in technology, Contemporary Island Designers will investigate all up and coming software related to digital 3-D design to stay at the forefront of the market.   Again, this is a key strategic component to differentiate the firm and to optimize productivity and efficiency. Market Analysis Summary Contemporary Island Designers Associates will provide its service to home owners who are looking to start new construction, remodel, as well as  developers and contractors and other private parties in the domestic markets. Although we are going to cater to a relatively broad scope of customers, the business will decide what the target market is based on sales and trends experienced in the initial months of operation. 4.1 Market Segmentation Potential clients for Contemporary Island Designers Associates market are broken down into four categories: home owners, developers and contractors. Home owners and potential home owners are the largest group based on shear population and this will be emphasized in  all of the business marketing and promotional efforts. Targeting the remaining  two groups will be dependent upon establishing meaningful relationships, and responding and qualifying for request for proposals. 4.2 Service Business Analysis The Architecture/Designing business across the country is primarily made up of small- to mid-sized firms specializing in a particular architectural/design type. But there are also a few large firms that have almost dominated the design of large commercial and industrial facilities.   Initially, Contemporary Island Designers main competitors will be the small to midsized firms.   Strategy and Implementation Summary In the first year of business, Contemporary Island Designers will focus on the Kingston and St. Andrew and the Portmore area of St. Catharine. As the business grows, sales will expand throughout these areas and across the country, eventually spreading regionally. 5.1 Sales Strategy Sales in this  business is a direct result of exceptional client service. It is based on the firms  image and the referrals that result. The more clients this company pleases, the more referrals are given. We will work to provide a positive experience in all cases so our clients will refer and return to us for future work as well. 5.1.1 Sales Forecast Sales are broken down into three categories: Consultations, Design and Supervision of the construction. These three categories put together, may make up one architecture/design project. The totals for each project are based on a 10% cut from the total construction costs of each job. The following table and chart provides an overview  of our  forecast sales.   Actual sales could vary depending on the project size and budget. 5.2 Competitive Edge This business will have a competitive edge over both the larger and smaller firms because it will be composed of the  new generation of Architectural Technologists which are fluent in the digital world. Many firms today employ personnel of which find the computer 3D modeling a mystery, and most of those that do use the computer only have the ability to design in 2-D. Management Summary This business will start with one Architectural Technologists/Designer. In August of 2011, a clerical position will be added. By 2012, Other Architectural Technologists will be hired to compensate the increased work load. 6.1 Personnel Plan The following table summarizes our personnel expenditures for the first three years of operation. Financial Plan Contemporary Island Designers will increase growth and technology with cash flow as it increases through the years. Further money will be set aside to pay for further consulting as needed. 7.1 Important Assumptions The annual assumptions made in the following table are based on a stable economy. We will adjust these assumptions as changes occur in the now tumultuous economy the Bay Area is experiencing. 7.2 Key Financial Indicators The following benchmark chart indicates our key financial indicators for the first three years. 7.3 Break-even Analysis The following chart and table summarize our break-even analysis. Break-even Analysis Monthly Revenue Break-even $80,348 Average Percent Variable Cost 1% Assumptions: Estimated Monthly Fixed Cost $80,246 7.4 Projected Profit and Loss Net profit is virtually nonexistent for the first two years of operation, with respectable increases after that time. Our projected profit and loss is shown on the following table, with sales starting at $102,000 for the first year and climbing to $500,000 the third year. Pro Forma Profit and Loss 7.5 Projected Cash Flow Cash flow is vital to the well being of this company because of the duration of payment. The following chart and table below show cash flow projections. 7.6 Projected Balance Sheet The following table shows our projected Balance Sheet and net worth over the next three years. 7.7 Business Ratios Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7383, Independent Artists (including Architects), are shown for comparison.