Flooring Company Business Plan Essay.
JD Epoxy has established a website that gives general information about products and services. The website will be developed with more detailed functions so it can offer customer services like consultation, Q&A, and reservations. Also, JD Epoxy plans to use the website for links to other social media like Facebook, Youtube and Blogger to connect with customers more closely, and there will be video materials introducing the JD Epoxy team that will deliver a friendly and trustworthy image to customers.
Presently Daniel minimizes costs by managing the business from his home. He rents grinders, vacuums, and application tools from Gestion Anny-Picard, and Simplex. He purchases supplies on a per-project basis from CTM adhesives. He plans to open a warehouse in the West Island area as his client base increases, in order to keep an inventory of supplies and purchase equipment. As business continues to grow, he will add an office space to the warehouse.
Presently all of the installation work is done by Daniel and Yannick.
As contracts increase, they will need to hire additional labor, which will enable them to concentrate on other tasks. The usual installation process takes a couple of days, so having multiple teams will boost the productivity of the business. For the time being Daniel will continue to deal with customers directly by phone and by visiting them in person for estimations. Once financing is ready, JD Epoxy will set up a customer service department to deal with clients. The customer service department will answer the phone, respond to questions and take reservations from customers, as well as attending to the website services. The team will be composed of at least two people in the beginning, so that they can rotate break times, since there should be constant service during business hours. Once website traffic and call volume increases, the customer service team will be expanded to limit wait times.
When a customer calls for a consultation, Daniel visits in person to give a more detailed quote and provide explanations about the service procedures. This is a very important role in this business since customers can change their minds during this step, so it requires someone with professional knowledge and great communication skills to interact with the customer. That is why Daniel prefers to visit customers himself at this point rather than sending an employee.
However, JD Epoxy will start to prepare a sales consultation department for the future. There will be intense training for customer visitation and quoting. The sales consultation department will be necessary when appointments increase and will allow a more flexible schedule to customers, since overlapping appointments will be possible once the department is in place. The sales consultation department is very important in the JD Epoxy organization since they will represent the company on the front line and speak on behalf of the company, bringing in actual contracts that lead to profits.
The accounting department will deal with financing, taxes, and payroll. This department should be organized from the beginning, since JD Epoxy is a partnership, and delegating the accounting work to a third party will give a more objective overview of the company’s financial state and preserves a fair relationship between the partners. The accounting department will start with one inside book keeper working in liaison with an external accounting firm, until JD Epoxy can select a CFO.
JD Epoxy will establish a marketing team which will support the sales department by providing target regions and information for sales pitches. This department will work closely with the sales and accounting departments to coordinate the marketing budget and set sales objectives. JD Epoxy will have a general administration department that organizes documents and handles day-to-day office tasks such as routing calls and dealing with suppliers. This department has an important role because they act as the glue that binds all the other departments together, tracking procedures from beginning to end. This department will start with one employee, and expand as needed.
These five departments should fit together like nuts and bolts. Each department needs the others’ support at all times. They should be able to share their opinions and information openly. There will be regular meetings and events with all departments present to encourage teamwork and motivation. The glue of the business will center around a management software that Daniel will program. This software will follow clients throughout the whole workflow of the business.
All departments will work on the same software and they will update the customer information as it passes through the business: marketing to sales, to production, and finally to clientele satisfaction. This software will track all information of the client and respective projects. At the end of the year, we will know exactly the sales ratio per marketing tool and per period, the gallons bought and used, the hourly estimates and charges, etc. We will then precisely analyze the business and be able to correct faults rapidly.
Organizational Structure Goal:
Based on the sales projection JD Epoxy sales revenue will be around $75,000 in 2013 and grow to $150,000, $300,000, and $500,000 in the following years. The SME report (NAICS code # 23833), shows how much members of this industry are spending for wages and labor. For instance, companies with revenue around $70,000 spend $11,000 for wages and labor, while those with revenue around $300,000 spend $77,000 for wages and labor. Since we should include the CEO’s salary in this cost, from 2013 to 2016, JD Epoxy cannot pay for full time employees; they can only afford part time employees when needed. In 2017, JD Epoxy can start to offer full time positions to part time employees and begin hiring full time employees thereafter.