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Business plan: what's your view on it?


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  #1  
Old 04-12-2007, 03:09 AM
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What is your view on this business plan? Are they going in the right or wrong direction?

Super Cuts Lawn Care Business Plan - Super Cuts Lawn Care will bring a new element to the market with our quick, quality service. We guarantee we can finish any job faster than our competitors. We will beat or match any competitorís price as we make a name for ourselves. We will always clean all grass clipping from sight, including the large clumps of clippings left on lawns by our competitors. Super Cuts will strive to be the best lawn care service in the market.

We project that the market will be busiest in the spring and summer months. However unlike other areas of the nation, the market in Florida will remain year round. The winter months will generate less revenue, but will produce enough to profit for us to remain open. We plan to be profitable by our 3rd year. Our market share will increase every year as word of our excellent service spreads.

We estimate Super Cuts will require about $350,000 to start up. The owner will be putting $150,000 of his own money on the line. We are applying for a $200,000 small business loan. These funds will enable Super Cuts to get off to a great start. Super Cuts will be the consumersí first choice for price, quality, and speed of service.
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Old 06-28-2007, 06:26 PM
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wrong direction in regards to providing quick service. Perhaps offer quick response time, but nobody wants somebody provide a quick service if it is going to effect quality
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Old 07-02-2007, 07:11 PM
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Wrong direction, If I was the customer I would not want a lawn company bombarding thru my lawn and missing posible problems I may have. most important that will sacrifice quality, not a good thing.
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Old 07-02-2007, 08:25 PM
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The amount of startup discussed can't all be for equipment and related overhead. Sounds like the speed factor is based on the number of employees it may be hiring.

I also have a feeling they may not have experience enough to back up what they are claiming they will do.

For their sake, I hope they make a go of it just the same.
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Old 07-02-2007, 11:35 PM
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Quote:
Originally Posted by [b
Quote[/b] ]We estimate Super Cuts will require about $350,000 to start up
I do wonder where all that money is going to go to? That is quite a bit of money for a start up lawn care operation!
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Old 07-03-2007, 02:16 AM
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Maybe some of the money is figured in to pay themselves for a year or 2 while they are trying to drum up enough business to pay the bills.
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Old 07-03-2007, 02:47 PM
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Good point.
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Old 07-03-2007, 06:35 PM
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For the life of me i can not understand why a startup business would want to put itself behind the eight ball from the get go.This startup is late in the advertising season which starts in late febuary. To finance that much does not make any sence. those loan payments will drive you out of business. the best bet is to spend about 50 grand of your money and keep your full time job untill you get some name recognition and experiance.then you can thank about going into debt to finance the purchase of new equipment in the future. Take it from some one who has been there. And don't advertise on the speed of which you can get the job done.The customer dosent care how long it takes you just that the job is done in a profesional manor and done right.
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Old 07-03-2007, 07:39 PM
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Quote:
Originally Posted by [b
Quote[/b] ] the best bet is to spend about 50 grand of your money and keep your full time job untill you get some name recognition and experiance.
Hi ckoffman,

Welcome to our forum!

I think it's always better to take small steps than to jump right in because sometimes, you are never able to get past the mountain of debt you take on.

Quote:
Originally Posted by [b
Quote[/b] ]Take it from some one who has been there.
Do you have any stories you could share with us to help illustrate the point of not going into debt?
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Old 07-03-2007, 09:36 PM
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Yes I do,some fifteen years ago I was an owner of a machine shop. We had been in business for about 3 years when we had so much work that we could no longer service our accounts on a part time basis. So we decided to go full time. inorder to do this we had to come up with more capital. so we worked on our business plan and figured out what we needed and added 25% for intangibles and approched the bank with our plan and requested a loan. This loan was not for $200,000 Just $50,000. First the bank cut what we asked for by 50%, and in our exuberance to move we deciced to go forward any way.Big Mistake.The debt service along with all the extra expences that we incured was huge to say the least.But we moved on for amother 8 years. It almost cost me my marrige and after we finaly closed it down it took another 9 years to get out from under all the extra debt that this all created. So move slowly and with great care and stay out of debt. Also the cost of adding employees changes every thing and quaddruples the expences,stay owner opperator for as long as possible you will not regret that decission.:blush:
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