Carpentry Company

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Plumb and Square Carpentry is a carpentry company serving homeowners, landlords and small businesses in our city and the nearby suburbs. We do framing, decks, doors, trim, built-ins, repairs and remodeling, with careful craftsmanship. Homeowners want a carpenter who can do real work, finish on time and charge a fair price. Many carpenters are booked for months, quote low and ask for more later, or leave a job half done. We will win customers by being reliable, giving a clear written price and doing careful work that passes inspection. Here is what our numbers show. We expect sales of about $189,000 in Year 1, growing to about $752,300 by Year 5 as we add carpenters and take on larger framing and remodeling projects. We expect losses of about $23,500 in Year 1 and $5,400 in Year 2 while we build our customer base, then a profit from Year 3 (about $22,500), growing to about $129,500 by Year 5. We need $76,500 in total. That covers $23,000 in startup costs (saws, nail guns, power tools, a trailer, opening lumber, license fees, insurance and advertising) and a cash cushion of about three months of bills. I am putting in $12,000 of my own money, and I am asking for $64,500. In Year 1 I will use my own truck to haul the trailer and materials. I am Fatima Mitchell, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Plumb and Square Carpentry will be a limited liability company (LLC) in Kentucky, owned by Fatima Mitchell. We will work from my home, with the trailer parked in my driveway and tools stored in my garage. What we believe. Measure twice, build it right, give a clear written price, show up when we say and clean up every day. What we offer:
- Framing, decks, porches and structural repairs. - Doors, windows, trim and baseboards. - Built-in shelves, cabinets and custom work. - Remodeling: kitchens, baths and basement finishing. - Repairs for landlords and property managers. Licenses and insurance. Carpentry rules vary. Many states and cities require a contractor license for jobs above a set dollar amount and permits for structural work, decks and additions. Our state requires a contractor license for jobs over $2,500, so I will get my license before taking larger jobs. We will carry general liability insurance, and workers' compensation once we hire. On homes built before 1978, we follow lead-safe rules when disturbing painted surfaces. Where things stand today. I have worked as a carpenter for six years, I own hand and power tools, and I have built decks and trim for neighbors.

Problem & Opportunity

Homeowners near us want carpentry done right, and a carpenter they can count on. 1. Long waits. Good carpenters are often booked for months. 2. Low quotes, high extras. A low price at the start can grow with extras. 3. Unfinished jobs. Some carpenters start and then disappear for weeks. 4. No permits. Unpermitted work can cause problems when selling or insuring a home. How we know people want this. Six neighbors asked me to build decks or fix trim last year, and a property manager said she needs a reliable carpenter for her rentals.

Products & Services

What we sell. 1. Framing and structural carpentry. Decks, porches, framing, repairs and additions. Our plan assumes an average of about $6,200 per project in Year 1, rising to about $6,978 by Year 5. Lumber and direct costs run about $2,700 per project. We expect about 15 projects in Year 1, growing to about 54 a year by Year 5. 2. Finish carpentry and remodeling jobs. Doors, trim, built-ins and smaller remodel work. Our plan assumes an average of about $2,400 per job in Year 1, rising to about $2,701. Materials cost about $950 per job. We expect about 40 jobs in Year 1, growing to about 139. Our prices. Hourly work $70. Deck from $25 a square foot. Door install from $250. Built-in shelves from $900. How it works for the customer:
1. A free estimate, with a site visit and a written price. 2. A clear plan: materials, timeline and permits, if needed. 3. Careful work, with the site protected and cleaned every day. 4. A final walk-through, and a warranty on our work. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 58% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners adding or repairing decks, doors, trim and built-ins. - Homeowners remodeling a kitchen, bath or basement. - Landlords and property managers. - General contractors who need a dependable carpenter. Where we will work. A service area close enough to reach jobs easily, starting with four neighborhoods and two nearby towns within 20 minutes of my home. Season. Carpentry is busiest in the warm months for outdoor work, and indoor projects fill the colder months. We plan jobs to keep the crew busy all year. Our plan is careful on purpose. About 40 finish jobs and 15 framing projects in Year 1 is a pace the owner and one carpenter can handle well.

Competitive Landscape

Other choices customers have:
1. Larger remodeling and carpentry companies. Allied Remodeling (a made-up name) charges about $75 an hour; known for quality, but booked for months. 2. Handymen. Often cheaper, but may not be insured or do structural work. 3. Doing it yourself. Free, but a mistake in framing can be costly and unsafe. How we will win customers: reliable scheduling, careful work, clear written prices, permits when needed and a warranty on our work.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with photos of finished work, and a simple website. - Asking every happy customer for a review and a referral. - Relationships with general contractors, real estate agents and property managers. - Photos of finished projects on social media and in neighborhood groups. - Truck magnets and business cards. Marketing budget. About $5,000 a year. Truck magnets, business cards and the website are paid for from startup costs.

The first 90 days. Days 1 to 30: confirm licensing, buy insurance and set up the shop and tools. Days 31 to 60: build a photo portfolio and quote jobs for neighbors, builders and designers. Days 61 to 90: close the first remodeling jobs and ask each customer for a review.

Operations Plan

How the business runs day to day. Estimates and projects. The owner measures, quotes, orders materials and schedules jobs. In Year 1 the owner works with one carpenter, and we grow to four carpenters by Year 5. Each job has a plan, a materials order, a permit if needed and a final walk-through. Equipment. About $14,000 to start: table saw, miter saw and stand; nail guns and air compressor; power tool set: drills, saws and sanders; used utility trailer; ladders, scaffolding and clamps; laser level and measuring tools; dust collection and safety gear. We set aside about $2,000 to $3,000 a year for repairs and replacements. Upkeep. Blades sharpened, nail guns oiled and the compressor drained regularly, and the trailer inspected before each trip. Safety. Eye, ear and dust protection, guards kept on saws, safe ladder and scaffold use, and a clean, organized work area. Running costs in Year 1: tools and equipment about $9,000, insurance and licensing about $7,000, marketing about $5,000. Scheduling and billing. A simple scheduling and invoicing app on my phone, with customers billed in stages for larger jobs.

Risks and how we plan for them:
- Contractor licensing. We confirm what the state and city allow and use licensed trades for work we are not licensed to do.
- Cost overruns. Every job has a written scope and price, and changes are approved in writing.
- Injuries. We follow safety rules for saws, ladders and lifting and carry insurance.
- Material delays and price swings. We order early and quote with current prices.
- Customers who pay slowly. We take a deposit and bill by stage.

Management & Organization

Who runs the business. Fatima Mitchell, owner. As owner I will do carpentry, measure and quote jobs, order materials, schedule projects and handle the money side of the business. I plan to pay myself $56,000 a year in salary in Year 1. Crew. Carpenters at about $46,000 a year each (or part-time pay): one in Year 1, two in Year 2, three in Year 3, three in Year 4 and four in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Brian Coleman serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: register the business, get insurance, buy the saws, nail guns and trailer, and put out business cards. Target start: March 2027. - First year: complete about 15 framing projects and 40 finish jobs, for about $189,000 in sales. - Year 2: add a second carpenter, about $300,100 in sales, and a loss of about $5,400. - Years 3 to 5: grow to four carpenters and about $752,300 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: estimates given, jobs finished, callbacks, material and fuel costs, and cash in the bank.

What the plan's numbers say. Year 1: sales about $189,000, loss about $23,500; Year 2: sales about $300,100, loss about $5,400; Year 3: sales about $438,600, profit about $22,500; Year 4: sales about $585,000, profit about $89,400; Year 5: sales about $752,300, profit about $129,500. The lowest year-end cash is about $15,800.

How we will keep score. Every month we compare real sales to the plan, check the cash in the bank, review the direct cost of each job or product, and look at what customers say. If sales are behind plan for two months in a row, we slow spending and delay hiring until the numbers catch up.

Funding Request

How much we need and how we will use it. Total needed: $76,500. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $23,000, listed item by item in the Startup Costs section (about $14,000 for the saws, nail guns, tools, trailer and ladders, $2,500 for opening lumber and trim, $800 for a business license and contractor registration, $3,000 for the first insurance payment, $700 for business setup and bookkeeping software, and $2,000 for truck magnets, business cards and a website). - A cash cushion of about $53,500: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $76,500 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $12,000. - Amount requested: $64,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect losses of about $23,500 in Year 1 and $5,400 in Year 2 while we build our customer base, then a profit from Year 3 (about $22,500), growing to about $129,500 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $954 a month are already included in our cash flow. What we are offering the lender: our tools and trailer as collateral and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start with small repairs, trim and doors on evenings and weekends using hand and power tools, while keeping your current job. Startup can be under $2,500. - Phase 2: once you have more jobs than you can handle part-time, buy the saws, nail guns and trailer and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

What if sales are slower? We also tested a cautious case where sales come in 20 percent lower every year. In that case the plan shows a loss of about $47,600 in Year 1, a loss of about $24,700 in Year 3 and the lowest year-end cash is below zero, by about $72,000. Cash would run short in that case, so we would cut costs early, delay hiring and talk to the lender before it happens.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Quotes for the equipment and vehicle. - Your price list and a sample written estimate. - Photos of past work and references, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Framing & Structural Carpentry: about $6,200 per project in Year 1, rising to $6,978; about $2,700 per project in direct costs; about 15 projects in Year 1, growing to 54. - Finish Carpentry & Remodeling Jobs: about $2,400 per job in Year 1, rising to $2,701; about $950 per job in direct costs; about 40 jobs in Year 1, growing to 139. - Owner salary: $56,000 a year. Crew: $46,000 a year each, from one in Year 1 to four in Year 5. - Other yearly costs in Year 1: tools and equipment about $9,000, insurance and licensing about $7,000, marketing about $5,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Plain words used in this plan:
- Framing: building the wood structure of walls, floors and roofs.
- Finish carpentry: trim, cabinets and other visible woodwork.
- Scope of work: a written list of what the job includes.
- Change order: a written agreement to change a job's scope or price.
- General liability insurance: coverage for damage or injury caused by our work.

Startup Costs