Summit Spray Foam Insulation

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

Executive Summary

Summit Spray Foam Insulation is a spray foam insulation contractor in Colorado. We install spray foam insulation in new homes for builders and in existing homes for homeowners, in attics, walls, crawl spaces and rim joists. Our customers want a home that is tighter and more comfortable and a crew that finishes on schedule.

The problem is simple. Poorly installed insulation wastes energy and leaves hot and cold spots, and spray foam must be installed correctly under the right conditions and with the right safety steps. We use trained applicators, follow the manufacturer's rules and clear the home safely.

Here is what our numbers show. We expect sales of $329,200 in Year 1, growing to $1,332,800 by Year 5 as we add crews, builder accounts and a second spray rig. We expect a loss of about $62,800 in Year 1 while we win builder accounts and build our reputation, then a profit of about $11,000 in Year 2 and a profit of about $55,900 in Year 3, growing to about $120,400 by Year 5.

We need $222,500 in total. That covers $126,500 in startup costs (a spray rig and equipment, protective gear, opening chemicals, training, the shop deposit, licenses and insurance) and a cash cushion for the first months. I am putting in $40,000 of my own money, and I am asking for a $172,500 SBA loan plus $10,000 from an investor or partner.

I am Cody Mercer, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Summit Spray Foam Insulation will be a limited liability company (LLC) in Colorado, owned by Cody Mercer. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Spray foam is a chemical process, so safety and training come first. We follow the manufacturer's instructions exactly and we protect families and crew.

What we offer:
- New construction insulation jobs. Spray foam for builders in new homes, scheduled with the framing and inspection timeline.
- Homeowner retrofit jobs. Attics, crawl spaces and rim joists in existing homes.
- Later, as we grow: commercial buildings and a second rig. The numbers in this plan add a second rig in Year 3.

The space. We rent a small shop to store the rig, chemicals and materials. We budget $12,000 a year for the shop in Year 1, and the plan assumes this grows about 5% a year.

Licenses, training and insurance. Contractors who install insulation may need a state or local contractor license, and manufacturers train and approve installers. Spray foam uses chemicals that can harm the lungs and skin, so every applicator must be trained, fit-tested for a respirator and follow written safety steps. Before I buy equipment I will ask the state and city what license and permits apply and what the building code requires, and I will complete the manufacturer's training. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and carry general liability, workers' compensation and pollution coverage, plus commercial auto insurance.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will talk with at least 10 builders and 20 homeowners about what they pay and need, confirm licensing and training requirements and line up at least 3 builders who would hire us. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Good insulation is harder than it looks.

1. Energy waste. Gaps and thin insulation make heating and cooling costly.
2. Comfort. Some rooms are always too hot or too cold.
3. Installation quality. Spray foam must be mixed and applied correctly.
4. Safety. Chemicals require trained applicators and careful ventilation.
5. Builder schedules. Builders need a crew that is on time and passes inspection.

How we will find out if people want this before we spend money. I will talk with at least 10 builders and 20 homeowners and line up at least 3 builders. Our Year 1 plan needs about 40 new construction jobs and 34 retrofit jobs.

Products & Services

What we sell. We have two offerings, each priced simply.

1. New construction insulation jobs. The plan assumes an average of about $5,000 per job in Year 1, rising to about $5,600 by Year 5. Chemicals and supplies cost about $2,700 per job. We expect about 40 jobs in Year 1, growing to about 145 a year by Year 5.
2. Homeowner retrofit jobs. The plan assumes about $3,800 per job in Year 1, rising to about $4,200, with about $2,000 per job in direct costs. We expect about 34 jobs in Year 1, growing to about 124.

Our prices. A written quote by area and thickness, with a clear schedule and a clear safety plan.

How it works for a customer:
1. We visit, measure and photograph the space and give a written quote.
2. The customer signs, and we schedule the job around framing and inspections.
3. We prepare the space, cover surfaces, ventilate and apply the foam in layers.
4. We clean up, explain when the home can be safely re-entered and give the customer written care notes.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for chemicals and supplies. Our plan shows about 47% in Year 1. That money pays the crew, insurance, the shop and other bills. Crew pay is counted separately, under payroll. We do not promise a specific energy savings, because results depend on the home.

Market Analysis

Who will use us:
- Home builders and remodelers.
- Homeowners in older homes with drafts or high energy bills.
- Small commercial and agricultural building owners.

Where we will work. Within about 60 miles of the shop.

How we sized the plan. Our Year 1 plan needs about 40 new construction jobs and 34 retrofit jobs, a few a week, which one crew can complete. I will check the real numbers by talking to builders before spending money.

Season. Spring through fall are busiest, and cold weather can limit spraying. The numbers show a yearly average.

Competitive Landscape

Other choices customers have:
1. Fiberglass and blown-in insulation contractors, which cost less but seal less.
2. Other spray foam contractors.
3. Large national insulation companies.
4. Do-it-yourself foam kits.

How we will win customers: trained applicators, careful safety, written quotes, on-time work and clean sites. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How customers will find us.
- Visits to builders and remodelers with a one-page offer and sample photos.
- A free Google business listing with reviews.
- A website with a quote form and information about safety.
- Home energy auditors, HVAC companies and real estate agents.
- A referral thank-you for builders and homeowners who refer us.

Marketing budget. About $6,000 a year in Year 1 (about $500 a month), growing about 8% a year. The lettering, website and photos are paid for from startup costs ($3,500).

Operations Plan

How the business runs day to day.

The equipment. A spray rig with a proportioner, hoses and generator, installed in a trailer or truck, with protective suits, respirators and ventilation fans.

A normal job:
1. Review the plan, check the weather and the chemical temperatures.
2. Cover surfaces, set up ventilation and notice signs, and have everyone wear protective gear.
3. Spray in layers and check thickness and coverage.
4. Clean up, remove waste properly, explain re-entry times and leave written notes.

Safety and compliance. Applicators wear fitted respirators and protective suits, follow the manufacturer's mixing and ventilation instructions, keep other people out of the work area, never spray in conditions that are not allowed and follow the re-entry times. We keep safety data sheets, dispose of chemical waste legally and follow the building code. We do not promise that foam will fix every comfort problem.

Equipment. About $95,000 to start: a spray rig, a trailer or truck, protective gear and tools. We set aside about $6,000 a year after that, and the plan adds a second rig in Year 3.

Running costs in Year 1: rig and truck fuel and maintenance about $14,400, insurance, including workers' compensation, about $18,000, the shop about $12,000, marketing about $6,000, training, respirators and protective gear about $4,800, and accounting, licenses and legal about $4,800. That is $60,000 in all.

Payment. Builders are invoiced and pay in 30 to 45 days, and homeowners pay a deposit and the balance at completion, so we keep a cushion of cash for the cost of chemicals while we wait.

Management & Organization

Who runs the business. Cody Mercer, owner and lead applicator. As owner I will quote jobs, spray, train the crew and handle the money. I plan to pay myself $45,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Applicator (full-time): one in Year 1, two in Years 2 and 3, three in Year 4 and four in Year 5, at about $40,000 a year each.
- Crew helper (full-time): one in Years 1 and 2, two in Years 3 and 4 and three in Year 5, at about $30,000 a year each.
- Office and scheduling (part-time): one starting in Year 3, at about $24,000 a year.

We hire people who are careful and reliable, require manufacturer training and respirator fit tests before anyone sprays and run background checks (with the person's permission and following the law) on anyone who enters homes.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands construction contractors, a business attorney for a one-time review of the contractor license and customer contracts, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): confirm the license, training and building code requirements, talk with at least 10 builders and 20 homeowners and line up at least 3 builders, register the LLC and get an EIN, open a business bank account, get insurance quotes, complete the manufacturer's training, find a shop and have an attorney review the contract. Buy the rig only after the license answers and the builder commitments are in hand.
- Year 1: open with the owner, one applicator and one helper, with about 40 new construction jobs, $329,200 in sales and a loss of about $62,800.
- Year 2: add a second applicator, with about 70 new construction jobs, $594,500 in sales and a profit of about $11,000.
- Year 3: add a second rig, a second helper and an office coordinator, with about 100 new construction jobs, $874,000 in sales and a profit of about $55,900.
- Year 4: add a third applicator, with about 125 new construction jobs, $1,115,850 in sales and a profit of about $105,000.
- Year 5: grow to about 145 new construction jobs a year with a team of nine, $1,332,800 in sales and a profit of about $120,400.
Growth depends on winning builder accounts, keeping crews safe and trained and keeping the rigs working, so treat the later years as goals, not promises.

What we check every week: jobs completed, jobs passed on first inspection, callbacks, chemical waste, safety incidents (aim for none), days to get paid and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $222,500.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $126,500, listed item by item in the Startup Costs section: $52,000 for spray rig with proportioner, hoses and generator, $30,000 for trailer or box truck with installed rig, $6,000 for respirators, protective suits and ventilation equipment, $7,000 for tools, ladders and cleanup equipment, $14,000 for opening chemical drums and supplies, $3,500 for shop deposit and first month, $3,500 for contractor license, applicator training and permits, $3,000 for legal and accounting setup, $3,500 for lettering, website and photos, and $4,000 for first insurance payment.
- A cash cushion of about $94,500: the deepest hole our cash falls into while we win builder accounts and cover insurance and chemicals (about $50,700) plus about 3 months of running costs (about $43,800). Lenders call this "working capital."
- Together that comes to about $221,000, rounded up to the nearest $500: $221,000.
We are raising $1,500 more than that, $222,500 in all, to leave extra room for loan payments in the first years and for chemicals ahead of busy months.

Where the money comes from:
- My own money: $40,000.
- Amount requested as a loan: $172,500.
- From an investor or partner: $10,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a loss of about $62,800 in Year 1 while we win builder accounts and build our reputation, then a profit of about $11,000 in Year 2 and a profit of about $55,900 in Year 3, growing to about $120,400 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $28,300, at the end of Year 3. The loan is planned at 12.75% interest over 10 years, so payments of about $2,550 a month (about $30,603 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

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 as a subcontractor for an established insulation company (check the rules) while you complete training and gather equipment. Startup can be roughly $15,000 to $30,000 for training, protective gear, insurance and a smaller rig. Get your own quotes.
- Phase 2: once you have steady builder work, buy a full rig 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 (one page is fine) and any licenses or training 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.
- Your contractor license and manufacturer training certificates, or the agency's written answer.
- Proof of insurance, or quotes.
- Quotes for the rig, trailer and protective gear.
- Letters from builders who would hire you.
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):
- New Construction Insulation Jobs: about $5,000 per job in Year 1, rising to $5,600; about $2,700 per job in direct costs, rising to $3,100; about 40 jobs in Year 1, growing to 145.
- Homeowner Retrofit Jobs: about $3,800 per job in Year 1, rising to $4,200; about $2,000 per job in direct costs, rising to $2,240; about 34 jobs in Year 1, growing to 124.
- Pay: Owner / Lead Applicator $45,000 (1/1/1/1/1); Applicator (full-time) $40,000 (1/2/2/3/4); Crew Helper (full-time) $30,000 (1/1/2/2/3); Office and Scheduling (part-time) $24,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: rig and truck fuel and maintenance $14,400, insurance, including workers compensation $18,000, shop rent & utilities $12,000, marketing $6,000, training, respirators and protective gear $4,800, and accounting, licenses & legal $4,800. These grow between 5% and 10% a year as the business grows.
- Builders are invoiced and pay in 30 to 45 days, and homeowners pay at completion. At the end of Year 1 about $39,504 (12% of Year 1 sales) is owed to us.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs