Business Plan

Carlos Islas
Jesica Islas
Partners
Islas 314 Inc
73 Jackson St
Suite 3N
Yonkers, NY 10701
347-645-9001
914-751-8342
Islas314inc@hotmail.com

I. Table of Contents

I. Table of Contents .................................... 1

II. Executive Summary .................................... 3

III. General Company Description .......................... 4

IV. Products and Services ................................ 6

V. Marketing Plan ....................................... 7

VI. Management and Organization ......................... 10

VII.Personal Financial Statement......................... 11

VIII.Startup Expenses and Capitalization................. 13

IX. Appendices .......................................... 15

II. Executive Summary

Islas 314 Inc is a construction company. Our product or

service will be remodeling houses or business, fixing small
damages in apartments or elsewhere, and constructing houses or
apartments from scratch. Our customers will basically be all
homeowners, or business owners or even landlords. In a near
future we are planning to apply to get into the city system, so
we could be one of their construction contacts, and have
periodical jobs with the public business. This will help us to
maintain a good reputation among other private clients. The
owners are Mr. Carlos Islas and his daughter Ms. Jesica Islas,
the both share the same amount of responsibilities in different
aspects of the business. Due to the seniority the one that has
more power in the company is Mr. Carlos Islas, but he is not
able to take financial decisions without having Ms. Islas
approval. Every year the numbers of small construction companies
are declining, but this business is planning to open and stay in
the market for a long time. Our job will satisfy our clients and
the demand will increase.

Sincerely,

Carlos Islas Jesica Islas

III. General Company Description
Islas 314 Inc. is a construction company. We can fix any
problems or start a whole house from the beginning. Whether the
problem is electricity, plumbing, hardwood, remodeling or
constructing something new, our employees will be able to help
and satisfy our customers’ needs. As a starting construction
company our main focus will be customer satisfaction allowing us
to build and maintain a strong reputation among our clients and
competitors.
Our company such as other companies has goals and
objectives that we will be able to meet in a reasonable period
of time. As it is stated above, our main goal in this first year
is to build a good reputation, in that way we will have loyal
clients that will be happy to do business with us. In order to
do so our employees besides being the ones doing the job are
also going to serve as counselors. They are going to advice our
clients into what is going to be best for them. Sometimes is
hard to choose between so many finishing touches and/or
materials to use, and our staff will be more than happy to use
their knowledge to help our customers in choosing the option
that best suits their needs. Our objective is to have an
agreement with Home Depot which have been our major supplier.
This will cause our expenditures to go down, so we will be able
to offer even better prices to our clients. Seeing our customers
happy is what we are all about. Our service will be market
basically to everybody that needs it. It is going to be focused
in home owners, landlords, and business owners.
The service industry is the one that has grown tremendously
in the past years. Islas 314 Inc. is both the service industry
as well as the manufacturing industry. The service is seen
because we provide our customers with advices and the knowledge
for choosing the right option, and for choosing the right
materials, as well as the knowledge that we use to construct the
final product. The manufacturing is shown in the process of
building the required job. The manufacturing industry has
declined over the years, but construction is still indispensable
in our everyday life. I believe that the service industry will
be still growing and although it seems that the manufacturing
industry will keep declining, the construction part will still
be a vital part, especially in the city.
The strengths that we have are qualified and responsible
employees. That has the knowledge of new techniques and the
cheapest techniques that are available in the industry. Other
companies are looking to make a profit, therefore they are going
to be looking to get contractor that do the job right as well as
have the inexpensive prices. That will enable us to have more
clienteles. Our major competitive will be the amount of
employees that we have, since we are just starting we don’t have
that much staff on our team, so it will take a little time to
organize the appointments and the jobs that need to be done. We
bring our experience; our employees have work in the
construction industry for more than 5 years. They have
experience and knowledge of the field, and are more than happy
to bring it to this new company.
Islas 314 Inc. is a partnership. We have selected this form
of business because it was easy to start up, and we did not need
that much capital, besides is much easier to make decisions
between two people that a group of them.
IV. Products and Services
Our service is going to be in a very competitive market,
but since is very competitive customers are always looking for
their best option. A very important advantage that Islas 314 Inc
has is the warranty that we offer. Usually we will offer a 5 to
10 years warranty depending on the type of work that we will be
doing. We do not charge extra for this warranties because we
want our clients to feel safe with our work, and feel like there
is no one that could do a better job than the one we will do.
Islas 314 Inc has uniqueness like no other. We have the
equipment necessary to do the work done in the right way, which
means the way our clients will preferred it. The process of
contacting our services is not going to be a hassle. After you
reach us (mail, fax, or phone number) and set an appointment,
our expertise will go and check what needs to be done, within 3
days you will get an estimate. The estimate will clearly specify
everything that needs to be done, the price of the work, as well
as the days in which we are going to be able to start. Also it
will include the approximate length of the job and the form of
payment.
Upon the payments the customers are going to be asked to
sign the receipts, and to be checking the job to see if they
want to make any last minute changes, so we will be able to do
them while there is time. Our prices will be based on the degree
of work and the length of the job, also customers will be
provided with two different estimates. One in which include the
materials, and the other one without the materials, just in case
the customer prefers buying them themselves.
V. Marketing Plan
Our office is located in The City of Yonkers. But our work
is done mainly through out New York City. There are not a lot of
construction companies around our area, but there is always
somebody able to do the job that is required. Now, with somebody
from the same neighborhood, customers will feel more secure in
doing business with us, and instead of contracting one single
person they will contract a company that will do a better job
for about the same amount of money.
Construction companies are all around the state, they
specialize either in electricity or plumbing, hardwood or any
other area. Our advantage is that we know how to do everything
and do every single aspect of the construction industry. So the
customers won’t have to be shopping for companies that all
together will give them the final product, but for just a
company in which they can trust, and know that everything that
needs to be done is going to be done and in the right way.
Networking is going to be an essential part of our company.
That is how we are planning to get as much customers as
possible. The advantage of being a construction company is that
most of the people see the final product, and that is how they
get to know about us. When they see a really good job done in
their friends, family or neighbors houses, they will get exited
and start wanting to do something new for them selves too. That
is how networking takes a big role in our marketing plan.
The total size of our market is very big, it is estimated
that 250,000 people are working for this industry only in the
city of New York. Construction work is project-based, with
workers and companies migrating from one job to the next. Most
construction companies are trade-specific contractors or
employers, such as electrical, plumbing, masonry, or roofing.
General contractors serve as organizing agents, working with
engineers and architects and coordinating the entire array of
trade contractors. Most residential contractors are very small
businesses, averaging 4 to 10 employees, while most non-
residential contractors are only slightly larger, averaging 15
to 25 people. The New York City construction industry has still
not fully recovered from the economic downturn in the early part
of this decade. Payroll employment in the city's construction
companies dropped more than 10 percent from the first half of
2001 to the low point reached at the beginning of 2004. Over the
past two years, payroll employment has recovered about 3,000 out
of the 13,000 jobs lost between the peak and the trough points
(see Figure 1). However, the current payroll employment level of
114,000 is above where the construction industry stood for most
of the late 1990s.
 Although the construction labor force have being
decreasing, the demand for more construction even small ones are
out there everyday. Most of the time tenants need repairs,
requiring the landlords to hire professionals to handle the jobs
for them. Also companies need more renovations, just like the
landlords they also need to keep their business according to the
regulations to avoid violations. Therefore construction jobs are
going to be available.
Some of the barriers that we will face while entering this
market with our new company will be:
 High production costs

 High marketing costs

 Consumer acceptance and brand recognition

 Training and skills

We will overcome these barriers by having a good flow chart.

Since the production costs will be high due to the materials, we
will ask the customers to give a certain percentage before hand,
so we will be able to start the job in the required time. The
marketing cost depends on the places in which we will be
marketing. Advertising expenses are considered as investment,
because that is how we are going to get our customers to get to
know us and trust us; therefore we will gain our consumer
acceptance and they will recognize our company as a trustworthy
one. Before we hire the employees, they will have to go through
a training process, so we are going to be able to know what
skills they possess and which skills do they lack.
VI. Management and Organization
The day-to-day business will be managed by both partners.
Carlos Islas will be in charge of managing the people and their
respective schedules, while Jesica Islas will be in charge of
keeping all the books up to date, including the process of
getting our customers to sign the contracts. Mr. Islas task will
mainly be to set the appointments, and personally go to the jobs
and see that everything is going the right way, as well as going
to the new customers and take notes to see what is it that needs
to be done, and go to the suppliers to buy the required
materials. On the other hand Ms. Islas will be in charge of
elaborating and delivering the estimates, or the construction
plans (if necessary) to the customers, and keep track of all the
expenditures as well as the receivables and payables. Also, keep
all the books up to date, and report to the former CPA.
VII. Personal Financial Statements
Personal Financial Statement of:
Carlos Islas
as of:
02/14/07

Assets Amount in Dollars

Cash - checking accounts $60,000
Cash - savings accounts 15,000
Certificates of deposit -
Securities - stocks / bonds /
mutual funds 1,000
Notes & contracts receivable 500
Life insurance (cash surrender
value) -
Personal property (autos,
jewelry, etc.) 15,000
Retirement Funds (eg. IRAs,
401k) -
Real estate (market value) 150,000
Total Assets $ 241,500

Liabilities Amount in Dollars

Current Debt (Credit cards,
Accounts) $ 6,000
Notes payable (describe
below) -
Taxes payable -
Real estate mortgages
(describe) 50,000
Total Liabilities $ 56,000

Net Worth $ 185,500

Signature: Date: 02/14/07

Personal Financial Statement of:
Jesica Islas
as of:
02/14/07

Assets Amount in Dollars

Cash - checking accounts $55,000
Cash - savings accounts 20,000
Certificates of deposit -
Securities - stocks / bonds /
mutual funds 500
Notes & contracts receivable 1,500
Life insurance (cash surrender
value) -
Personal property (autos, jewelry,
etc.) 10,000
Retirement Funds (eg. IRAs,
401k) -
Real estate (market value) 50,000
Total Assets $ 137,000

Liabilities Amount in Dollars

Current Debt (Credit cards,
Accounts) $ -
Notes payable (describe below) -
Taxes payable -

Real estate mortgages (describe) 10,000

Total Liabilities $ 10,000

Net Worth $ 127,000

Signature: Date: 02/14/07

VIII. Startup Expenses and Capitalization
Startup Expenses
Islas 314 Inc

Sources of Capital

Owners' Investment (name and percent

ownership)
Jesica Islas $ 20,000
Carlos Islas 20,000
Total Investment $ 40,000

Bank Loans
Chase $ 25,000
Citibank 10,000
Bank of America 10,000
Total Bank Loans $ 45,000

Startup Expenses

Buildings/Real Estate
Remodeling $ 10,000
Other -
Total Buildings/Real Estate $ 10,000

Capital Equipment List

Furniture $ -
Equipment 15,000
Fixtures -
Machinery 1,000
Total Capital Equipment $ 16,000

Location and Admin Expenses

Rental $ 12,000
Utility deposits 444
Prepaid insurance 8,000
Pre-opening salaries 10,000
Other -
Total Location and Admin Expenses $ 30,444
Summary Statement

Sources of Capital
Owners' and other investments $ 40,000
Bank loans 45,000
Total Source of Funds $ 85,000

Startup Expenses
Buildings/real estate $ 10,000
Capital equipment 16,000
Location/administration expenses 30,444
Total Startup Expenses $ 56,444

Owners

Carlos Islas

Jesica Islas
IX. Appendices
Some of the sources used in this business plan are:
 For industry Studies:
o The New York City Construction Labor Market
o Local Library
o Chambers of Commerce
o Government Agencies
 For the Business Plan Template:
o Business Plan for a Start Up Business from SCORE