Cedar Line Kitchen and Bath

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

Executive Summary

Cedar Line Kitchen and Bath is a remodeling company in Minnesota that specializes in kitchen and bathroom renovations for homeowners. We handle the design, permits, demolition, cabinets, counters, tile, plumbing, electrical and finishing under one project manager, with a fixed price and a written schedule. We use our own carpenters and trusted subcontractors, and we show customers every step.

Kitchens and baths are the rooms that most improve a home, and they are the projects that go wrong most often. Homeowners worry about contractors who disappear, change prices or leave a mess. The best remodelers earn customers by communicating, keeping a clean site and finishing when promised. That is the company we plan to build.

Here is what our numbers show. We expect about 10 kitchen remodels, 14 bathroom remodels and 40 smaller projects in Year 1, which brings in sales of $739,000, growing to $2,991,603 by Year 5. We expect a profit of about $27,700 in Year 1, a profit from Year 2 ($92,500) and about $254,900 by Year 5. Remodeling margins are about 28% after materials, subcontractors and field labor, and we plan carefully for cash because customers pay in stages.

We need $140,000 in total. Of that, $96,000 is startup costs (a work truck, tools, software, the contractor license and bond and showroom samples) and the rest is cash to pay for materials and crews between customer payments. I am putting in $50,000 of my own money, and I am asking for a $90,000 SBA loan.

I am Tom Larsen, the owner, a licensed remodeling contractor with 12 years of experience in residential remodeling, including six years as a lead project manager. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Cedar Line Kitchen and Bath is a small, independently owned remodeling company in Minnesota, planned as a limited liability company (LLC). We serve homeowners within about 40 miles of our base.

Our mission. To renovate kitchens and bathrooms the way we would want our own done: on time, on budget and with respect for the home.

What we believe. A remodel is one of the largest purchases a family makes, and it should not be a source of stress. We give a fixed price, a written schedule and one point of contact, we protect the home and we clean up every day.

What we offer:
- Kitchen remodels. Layout design, cabinets, counters, backsplash, flooring, lighting, plumbing and electrical, from a small refresh to a full renovation.
- Bathroom remodels. Tub and shower replacement, walk-in showers, vanities, tile, accessibility upgrades and aging-in-place changes.
- Smaller projects and repairs. Vanity or counter replacements, tile repair and small updates.
- Design and permits. Layout drawings, product selection and permit applications.

Who we serve. Homeowners, with a focus on older homes and on aging-in-place bathroom upgrades.

What we do not do. We do not do new home construction, additions or structural changes beyond a set scope, and we refer large projects to general contractors. We do not start a project without a signed contract and a deposit within the state's limits.

How we are run. I am the owner and project manager. An estimator and designer and an office manager join in Year 2, and a lead carpenter and site supervisor in Year 3. Field labor and subcontractors are counted in the cost of each project. A small advisory group of a supplier, an accountant and an attorney tells us what is working.

Where things stand today. We have a draft contract and warranty, supplier quotes, a showroom plan and letters of interest from eight past clients and two real estate agents. Before we begin, our attorney will review our contract and lien notices, and we will confirm the state's contractor license, bond and registration requirements.

Problem & Opportunity

Homeowners dread remodeling kitchens and bathrooms for good reasons. They hear stories about contractors who take a deposit and disappear, jobs that run months late, surprise charges and subcontractors who do not show up. Good remodelers are booked months out. Many homeowners find it hard to know who to trust or what a fair price is.

For a contractor, the business is cash-heavy and risky. Materials are paid before the customer finishes paying. Subcontractors must be scheduled around deliveries. A single mistake, such as an ordered cabinet that does not fit, costs thousands. Older homes hide surprises behind walls, from lead paint and asbestos to outdated wiring.

Rules matter. Contractors must hold a license where the state requires it, carry insurance and a bond, follow the federal lead-safe work rules for homes built before 1978, pull permits and follow state limits on deposits. A mistake can cost a license.

We want to be clear about what we know and do not know. Remodeling demand is steady, and homeowners with older homes and equity are spending on kitchens and baths. We will use the most recent numbers from the census and housing surveys for our area in our final plan and will not overstate them. We do not know how fast referrals will build, which is why our plan builds slowly and focuses on past clients and agents.

Products & Services

Cedar Line will give homeowners a fixed price, a written schedule and one project manager for a kitchen or bathroom remodel.

How it works, step by step:
1. Consultation. We visit the home, listen to what the homeowner wants, measure and review the budget.
2. Design and estimate. We prepare a layout, choose products with the homeowner and give a written fixed-price estimate that lists allowances.
3. Contract. The homeowner signs a contract with the price, schedule, payment schedule and warranty. We take a deposit as the state allows and tie later payments to completed stages.
4. Permits and ordering. We pull permits and order cabinets and materials, checking measurements and delivery dates before demolition.
5. Demolition and protection. We protect floors and the rest of the home, set up dust control and, in homes built before 1978, follow lead-safe practices.
6. Construction. Our carpenters and subcontractors do plumbing, electrical, drywall, tile, cabinets, counters and finishes in a planned order, and the project manager is on site.
7. Communication. The homeowner gets a weekly update with photos and the schedule.
8. Inspection and punch list. We pass city inspections, walk through with the homeowner and finish a punch list.
9. Warranty. We give a one-year workmanship warranty and check back at 30 days and 11 months.

Why this approach is strong. Clear contracts, tied payments and constant communication address the main fears homeowners have. A small company with one accountable manager can deliver that.

Market Analysis

Who we serve: homeowners within about 40 miles who want a kitchen or bathroom renovated.

Our primary group is homeowners with older homes and equity, especially those who want accessibility changes for aging in place. We will use the most recent numbers for home age, values and remodeling spending for our area in our final plan. Our secondary group is real estate agents and landlords who need updates before a sale.

How we sized our plan. We plan 10 kitchen remodels, 14 bathroom remodels and 40 smaller projects in Year 1, growing to 36, 52 and 135 by Year 5. Our Year 1 prices are about $38,000 for a kitchen, $16,500 for a bathroom and $3,200 for a small project, rising about 3% a year. Materials, subcontractors and field labor cost about 72% of the price.

Demand data. Eight past clients and two agents have said they would refer us, which we expect to cover about a quarter of the Year 1 projects. We do not count on any one referral.

We do not take every job. We decline projects outside our scope, and we do not start without a signed contract.

Competitive Landscape

Other choices for homeowners, and what makes us different.

- Large home improvement stores. They sell installed packages and subcontract the work. We manage the whole job ourselves.
- General contractors. They do many kinds of work. We specialize in kitchens and baths.
- Other remodelers. Some are excellent and booked. We compete on communication, clean sites and a fixed price.
- Handymen. They are low cost and not licensed or insured for larger work. We are licensed, bonded and insured.
- Design-build firms. They offer a full service at a higher price. We offer a similar process at a mid-range price.
- Doing it yourself. Some homeowners do their own work. We help with the parts they cannot do.

What makes us different.
- A fixed price and a written schedule.
- One accountable project manager.
- A clean site and a weekly update with photos.
- A written warranty.

What we do not claim. We are new. Established remodelers have long portfolios. We plan to earn trust one kitchen at a time.

Marketing & Sales Strategy

How we will reach homeowners.

Referrals. We will ask past clients and agents for introductions and give a thank-you for each referral that becomes a project. We will meet real estate agents, property managers and home inspectors.

Online. A website with a project gallery, a Google business listing and reviews, and home improvement platforms where our reviews are strong.

Showroom and samples. We will offer a free consultation and keep a small showroom of samples at our office.

Community. We will sponsor a local home show, give talks on aging-in-place bathrooms at senior centers and partner with local suppliers.

Pricing. About $38,000 for a typical kitchen, $16,500 for a bathroom and $3,200 for a small project in Year 1, quoted in writing.

Operations Plan

How the business will run.

Setup (the 2 to 3 months before the first project). We will form the LLC, get the contractor license, bond and any city registrations, complete lead-safe renovator training, buy the truck and tools, set up estimating and project software, sign supplier accounts and buy insurance. We will not start work until we hold the license and insurance.

Staffing. In Year 1: I serve as owner and project manager. Carpenters and laborers are employees, and subcontractors are used for plumbing, electrical, tile and counters. Their cost is counted in each project. An estimator and designer and an office manager join in Year 2, and a lead carpenter and site supervisor in Year 3.

Costs. Materials, subcontractors and field labor are about 72% of the price (about $27,500 for a $38,000 kitchen in Year 1).

Payments. We take a deposit as the state allows, bill in stages tied to progress and pay suppliers and subcontractors on terms. About 8% of annual sales is owed to us at any time.

Safety and compliance. We follow lead-safe work practices, OSHA site safety rules, state license rules and local permit and inspection requirements. We keep lien waivers and a project file for every job.

Insurance. We carry general liability and completed operations, workers' compensation, commercial auto and a license bond. Insurance is about $12,000 a year in Year 1.

Management & Organization

The people who will run Cedar Line.

Tom Larsen, owner and project manager. A licensed remodeling contractor with 12 years of experience, including six years as a lead project manager on kitchen and bath projects. He leads sales, estimating, project management and finance. (Replace this paragraph with your own background.)

Estimator and designer (from Year 2). Prepares layouts and estimates.

Office manager (part-time, from Year 2). Handles scheduling, billing and permits.

Lead carpenter and site supervisor (from Year 3). Runs crews and quality.

Carpenters, laborers and subcontractors. Their cost is counted in each project.

Outside advisors. An attorney, an accountant, an insurance broker and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and project manager $62,000, estimator and designer $58,000, part-time office manager $28,000 and lead carpenter and site supervisor $64,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (2 to 3 months ahead): get at least 5 letters of interest from past clients or agents, confirm the state license, bond and lead-safe requirements, get insurance and truck quotes, form the LLC, get an EIN and open a business bank account. Do not start a project without a signed contract and the required insurance.
- Year 1: 10 kitchens, 14 bathrooms and 40 small projects; $739,000 in sales and a profit of about $27,700.
- Year 2: 18 kitchens and 26 bathrooms, an estimator and an office manager; $1,377,110 in sales and a profit of about $92,500.
- Year 3: 24 kitchens and 36 bathrooms and a lead carpenter; $1,920,229 in sales and a profit of about $150,000.
- Year 4: 30 kitchens and 44 bathrooms; $2,441,153 in sales and a profit of about $198,800.
- Year 5: 36 kitchens and 52 bathrooms; $2,991,603 in sales and a profit of about $254,900.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: leads, estimates sent and won, gross margin on each job, change orders, schedule against plan, punch list items and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $140,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $96,000, listed item by item in the Startup Costs section: $32,000 for work truck, used and inspected, with racks; $18,000 for power tools, saws, measuring tools, ladders and a job-site dust system; $5,000 for estimating, design and project management software with tablets; $6,000 for office or shop deposit and first month of rent; $4,000 for contractor license, bond and city registrations; $5,000 for attorney and accountant: contract forms, lien rights and setup; $6,000 for showroom samples: cabinets, countertops, tile and fixtures; $8,000 for truck lettering, a website with a project gallery and opening marketing; $12,000 for lead-safe renovator training, safety training and the first insurance payments.
- The cash the business uses before it breaks even, about $0: because we pay for materials and crews before customers make their next payment.
- A cash cushion of about $35,750: three months of Year 1 operating costs.
- Together that comes to about $131,750, rounded up to the nearest $500: $132,000.
We are raising $8,000 more than that, $140,000 in all, to cover the loan payments and the extra cash the early years take. With this funding, the lowest year-end cash balance is about $48,100, at the end of Year 1.

Where the money comes from:
- My own money: $50,000.
- SBA 7(a) loan for startup and working capital: $90,000.

Kind of funding we are looking for. An SBA 7(a) loan through a bank or community lender, plus our own equity. Lenders for a remodeler look at the owner's license and experience, the backlog of signed jobs and a plan for payments by stage.

How we will pay it back. We expect a profit of about $27,700 in Year 1 and a profit of about $92,500 in Year 2, then a profit of about $150,000 in Year 3, a profit of about $198,800 in Year 4 and a profit of about $254,900 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan. The loan is planned at sba 7(a) loan for startup and working capital at 12.75% over 10 years, about $1,331 a month. That is about $1,331 a month in all, and it is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: a personal guarantee and a lien on the truck and equipment.

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 bathroom remodels and small projects, which need less cash per job, and use subcontractors for most work.
- Phase 2: once you have a record and a backlog, add kitchens and field staff 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.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and your contractor license and lead-safe renovator certificate.
- 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).
- Insurance quotes or proof of insurance and your license bond.
- Your contract, change order and warranty forms, reviewed by an attorney.
- Photos of past projects and references.
- Letters of interest from clients or agents.
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):
- Kitchen Remodels (per project): about $38,000 in Year 1, rising to $42,769; about $27500.00 in direct costs, rising to $31556.88; about 10 in Year 1, growing to 36.
- Bathroom Remodels (per project): about $16,500 in Year 1, rising to $18,571; about $11800.00 in direct costs, rising to $13540.77; about 14 in Year 1, growing to 52.
- Small Projects and Repairs (per job): about $3,200 in Year 1, rising to $3,602; about $2250.00 in direct costs, rising to $2581.93; about 40 in Year 1, growing to 135.
- Kitchen remodels about $38,000 each in Year 1 with about $27,500 in materials, subcontractors and field labor; bathroom remodels about $16,500 with about $11,800; small projects about $3,200 with about $2,250, rising about 3% to 3.5% a year (gross margin about 28%).
- Pay (a full year, per person): owner and project manager $62,000; estimator and designer $58,000; office manager (part-time) $28,000; lead carpenter and site supervisor $64,000.
- Other yearly costs in Year 1: office or shop rent and utilities $18,000, insurance: general liability, completed operations and workers' compensation (office) $12,000, estimating and project software $3,600, marketing, lead generation and reviews $18,000, accounting and legal $6,000, vehicle and fuel $9,000, licenses, bonds and training $3,000, phones and supplies $2,400, payroll taxes and benefits (office staff) $9,000. These grow between 5% and 14% a year.
- Startup costs and equipment ($96,000 in Year 1, then $4,000, $4,000, $5,000, $5,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 29 days after service. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs