Action plan
Steps to accomplish this year’s goals
Schedule outlining checkpoints throughout year
IV. THE FINANCIAL PLAN Financial forecast
Preliminary balance sheet
Income and expense forecast statement Cash flow forecast
Financing needs (if necessary) Loans
V. APPENDIX List of references
Banker Leasing agent Accountant Attorney Insurance agent
Personal net worth statement
Summary of business insurance coverage Accounts receivable summary
Accounts payable summary Legal agreements
Financial statements for company Copy of company brochure News articles on firm
CHART 15
Sample Business Plan
Apple Architecture, Inc.
Architecture / Interior Design–Business Plan: 2006
I. BACKGROUND
Company name:Apple Architecture, Inc.
Address:401 Orchard Avenue
Applegrove, Maryland 20000 Telephone:(000) 000–0000
Facsimile:(000) 000–0000 Web site:www.Applearch.com
Contact person:George MacIntosh Apple IV, AIA President E-mail:[email protected]
The Company
Apple Architecture, Inc. has provided quality architecture and interior design services throughout the Middle Atlantic region since 2000. The company was founded with a portfolio of mostly residential and small commercial projects.Through the early 2000s, the firm strove to develop and maintain a commercial and institutional client base, which expanded throughout the East Coast markets. With the expected downturn in the economy, the firm began concentrating in 2005 on developing a strong institutional client base, including government, healthcare, and educational commissions.The company still maintains a strong residential design portfolio in the multifamily, single-family speculative, custom, and addition markets.
II. BUSINESS CONCEPT Outlook
The outlook of the architectural profession in the Middle Atlantic region is one of “steady no-growth.” The current recession has hit the area, with many firms downsizing. It has been said in the design industry that “the
recovery is here,” and that the business volume and size of a firm at pres- ent will be the size of the firm for the near future.
The small-scale residential design market is strong, along with institu- tional clients (healthcare, education, and government). Apple Architecture, Inc., does not expect significant growth over the next year; however, after staff reductions in the past two years, we do expect to conduct limited staff increases in our CADD group.
The Competition
Apple Architecture, Inc., with a staff of twelve, is considered in the profes- sion as a “medium-sized” architectural firm. As of January 2006, 9 percent of the architectural firms nationwide are our size. Some 86 percent of the firms have fewer than ten employees, and 5 percent have more than twenty staff positions. On a national basis, medium-sized firms control 17 percent of the market share of the gross billings.
The recession has created quite an erosion in the profession. Many of the larger firms have reduced staff, which has created many smaller,“one- person” firms.
Our firm has found that it is now competing with the start-up firms on smaller-scale projects. The “larger firms” are now competing for our
“larger” projects, which is a challenge in and of itself.
We feel that we are in an excellent position because, given our size and experience, we can still compete on all levels and get “our share” of commissions. We have significantly reduced our overhead to compete with the competition and remain profitable.
Business Goals
Foremost, Apple Architecture, Inc., wants to be a profitable, service-driven design firm. We have managed our practice through the good as well as the difficult times over the past decade. What we have learned in the past twenty months has been how to control our cost of business and maintain a profit through the lean times.
Because of the economy and available developed structures, the construction industry will be heavily concentrated in the renovation and
interiors markets over the next five to ten years. We started our interiors division five years ago, expecting it to grow, to hedge our business in the lean “design” times ahead.The interiors work is profitable, and is helping open doors into the healthcare industry.We expect our interiors group to make and possibly exceed the 30 percent volume of the firm by year-end.
Our long-term business plan is to have an established design firm, noted for its quality service and commitment to the community and environment, and to be a leader of the profession in the Maryland mar- ketplace.We see a similarity in the profession’s future to that of the 1960s and 1970s, when there were not as many firms and most of the work was institutionally oriented.
Apple Architecture, Inc., has been in a survival mode over the past year; however, we do see a brighter future, unlike the 1980s, with more stable and rewarding times through community-oriented projects. The role of designers as problem solvers to the government and society will increase during the challenging decade of the 2000s. We at Apple Architecture, Inc., are proud to be in our “position.”
Forecasts
Apple Architecture, Inc. enjoyed its highest-gross volume year in 2005.
We concentrated on reducing our overhead throughout the year, and invested our profits into reducing our payables to consulting engineers and vendors.
The first half of 2006 has been challenging; however, owing to our decreased operational costs, we have been profitable.
Our current workload and contracts include the following:
Apple Elementary School addition for Apple County Apple County Public Safety Headquarters
These should result in a $1 to $1.2 million gross volume year, down from $1.4 million in 2005.
III.BUSINESS OPERATION Location
Apple Architecture, Inc. operates its business from a 6,000-gross-square- foot office building located at 401 Orchard Avenue,Applegrove, Maryland.
This central Apple County location provides our firm with unparalleled access to our client base in Apple City, Apple County, MacIntosh County, and Winesap County.We have easy access to the interstate highway system for providing service throughout the state.The firm is in year two of a five- year lease on the premises.We feel that this current office space will fulfill the needs of our staff and clientele through 2009.
Staff
Apple Architecture, Inc., currently has a staff of twelve. Of that number, five are licensed architects and one is a certified interior designer. George Apple, AIA is licensed in Maryland, Pennsylvania, Delaware,Virginia, and the District of Columbia. He is NCARB certified. Our staff has over one hundred years combined experience. Please refer to our corporate back- ground for further detailed information.
Business Structure
Apple Architecture, Inc., has been a Maryland corporation since 2000.
Officers:
George M. Apple IV, AIA President Kyle Granny Smith, AIA Vice President Kolby B. Apple, Secretary
Korey MacIntosh,Treasurer