Welding & Fabrication Company

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Executive Summary

Ironwood Welding is a welding and fabrication company serving homeowners, farms, contractors and small businesses in our county and the nearby towns. We repair and build metal gates, railings, trailers, equipment, frames and custom pieces, in our shop and on site. When something metal breaks or needs building, people need it fixed quickly and properly. Many welders are hard to reach, booked for weeks or only take large jobs. We will win customers by being responsive, certified, honest about prices and able to come to the job when the piece cannot move. Here is what our numbers show. We expect sales of about $154,000 in Year 1, growing to about $615,200 by Year 5 as we add certified welders and more shop fabrication jobs. We expect losses of about $77,700 in Year 1, $73,200 in Year 2 and $7,800 in Year 3 while we build our customer base, then a profit from Year 4 (about $12,200), growing to about $40,700 by Year 5. We need $259,000 in total. That covers $55,200 in startup costs (a mobile welding truck, welding machines, shop tools, opening supplies, certification fees, insurance and a shop deposit) and a cash cushion of about three months of bills. I am putting in $20,000 of my own money, and I am asking for $182,000 as an SBA 7(a) loan, plus $57,000 from an investor or partner. The startup costs include a used truck for mobile welding and a shop lease deposit. I am Patricia Garcia, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Ironwood Welding will be a limited liability company (LLC) in Arkansas, owned by Patricia Garcia. We will work from a small rented shop with a roll-up door, with the truck parked at my home. What we believe. Weld it right, be honest about what is possible, quote clearly and finish when we say. What we offer:
- Mobile welding repairs at the customer's site. - Gates, railings, fences and stairs. - Trailers, truck beds and equipment repair. - Custom frames, tables and metal art. - Structural and code welding where certified. Licenses and insurance. Welding rules vary. Most places require a business license, and structural welding on buildings or bridges usually requires certified welders and a code-approved procedure. Our city requires a business license, and structural work requires AWS-certified welders. We will carry general liability and commercial auto insurance, and workers' compensation once we hire. Hot work needs fire safety care, and we follow local rules for welding in the field, including permits and fire watches where required. Where things stand today. I have worked as a welder for seven years, I hold two certifications and I have repaired trailers and built gates for neighbors.

Problem & Opportunity

Homeowners, farms and businesses near us need metal work done well, and welders are hard to find. 1. Long waits. Good welders are often booked for weeks. 2. Small jobs ignored. Many shops only take big projects. 3. Unclear prices. Quotes can be vague and grow later. 4. Poor welds. Weak welds can fail and cause injuries. How we know people want this. Six farmers and neighbors asked me to repair equipment last year, and a contractor said he needs a reliable welder.

Products & Services

What we sell. 1. Mobile welding service calls. A visit to repair or build on site. Our plan assumes an average of about $220 per call in Year 1, rising to about $244 by Year 5. Materials and direct costs run about $75 per call. We expect about 350 calls in Year 1 (about 7 a week), growing to about 1,253 calls a year by Year 5. 2. Shop fabrication jobs. Custom and repeat work done in our shop. Our plan assumes an average of about $2,200 per job in Year 1, rising to about $2,476. Steel and direct costs run about $950 per job. We expect about 35 jobs in Year 1, growing to about 125. Our prices. Mobile welding $95 an hour plus materials. Gate from $1,200. Trailer repair from $250. How it works for the customer:
1. A call or message answered quickly, with a rough price. 2. A site visit or photos and a written quote. 3. Careful work, tested and finished, with the area left clean. 4. A 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 61% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners who need gates, railings or repairs. - Farms and ranches with equipment to repair. - Contractors who need a reliable fabricator. - Small businesses with metal frames, racks and signs. Where we will work. A service area close enough to reach customers fast, starting with farms and small businesses within 30 minutes of the shop, plus our shop for larger jobs. Season. Welding is steady all year, with extra farm and construction work in spring and fall. Shop jobs fill the slower weeks. Our plan is careful on purpose. About 7 service calls a week in Year 1 is a pace the owner and one welder can handle well.

Competitive Landscape

Other choices customers have:
1. Larger fabrication shops. Allied Welding (a made-up name) charges about $95 an hour for mobile welding; known for quality, but booked for weeks. 2. Mobile welders. Many work alone and are hard to book. 3. Doing it yourself. Cheaper, but a weak weld can be dangerous. How we will win customers: quick response, certified work, clear quotes, mobile service 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 contractors, farms, equipment dealers and trailer shops. - Photos of finished projects on social media. - Truck lettering and business cards. Marketing budget. About $5,000 a year. Truck lettering, business cards and the website are paid for from startup costs.

Operations Plan

How the business runs day to day. Calls and shop work. The owner takes calls, quotes jobs and schedules mobile calls and shop work. In Year 1 the owner works with one certified welder, and we grow to four by Year 5. Each job has a quote, a material list, a safety plan and a final inspection. Equipment. About $40,000 to start: used pickup truck for mobile welding; engine-driven welder and generator; mIG and TIG welding machines; plasma cutter; shop tools: grinders, clamps and saws; welding tables and shop fixtures; protective gear and fume ventilation. We set aside about $5,000 to $6,000 a year for repairs and replacements. Upkeep. Welders and torches cleaned and serviced on schedule, gas lines and hoses inspected, and consumables restocked weekly. Safety. Welding is hazardous: eye, face and lung protection, fire-resistant clothing, fire extinguishers and fire watches, safe handling of gas cylinders and good ventilation. We keep the shop clean and orderly. Running costs in Year 1: shop lease and utilities about $16,000, equipment and consumables about $12,000, marketing about $5,000. Scheduling and billing. A simple scheduling and invoicing app on my phone, with customers billed after each job and larger jobs billed in two parts.

Management & Organization

Who runs the business. Patricia Garcia, owner. As owner I will weld and fabricate, quote jobs, schedule, order materials and handle the money side of the business. I plan to pay myself $58,000 a year in salary in Year 1. Crew. Certified welders at about $50,000 a year each (or part-time pay): one in Year 1, two in Year 2, two 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). Jamal Thompson serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: register the business, get insurance, lease the shop, buy the truck, welders and tools, and set up the phone and website. Target start: March 2027. - First year: complete about 350 mobile service calls and 35 shop fabrication jobs, for about $154,000 in sales. - Year 2: add a second certified welder, about $244,600 in sales, and a loss of about $73,200. - Years 3 to 5: grow to four certified welders and about $615,200 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: calls and jobs finished, quotes out, rework, material costs, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $259,000. The Funding Need Calculator in this plan shows a minimum, and we plan to raise a little more than that so the loan payments in the early years are also covered. The calculator's number adds up: - Startup costs of $55,200, listed item by item in the Startup Costs section (about $40,000 for the truck, welders, plasma cutter, shop tools and safety gear, $3,500 for opening wire, rods, gas and steel, $1,200 for the business license and welder certification fees, $4,500 for the first insurance payments, $800 for business setup and bookkeeping software, $2,000 for truck lettering, business cards and a website, and $3,200 for the shop lease security deposit). - A cash cushion of about $200,800: 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 $202,000 (rounded up to the nearest $500), which is the minimum the calculator shows. We are planning for $259,000, which adds room for the early loan payments. Where the money comes from: - My own money: $20,000. - Amount requested: $182,000. - From an investor or partner: $57,000. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender, plus investor or partner money, which is not paid back with interest but gives that person a share of the business. How we will pay it back. We expect losses of about $77,700 in Year 1, $73,200 in Year 2 and $7,800 in Year 3 while we build our customer base, then a profit from Year 4 (about $12,200), growing to about $40,700 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 $2,691 a month are already included in our cash flow. What we are offering the lender: our welders, truck and tools 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 and projects on evenings and weekends using your own tools and a home shop where local rules allow, while keeping your current job. Startup can be under $3,000. - Phase 2: once you have more jobs than you can handle part-time, lease a shop, buy the truck and machines 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 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 welder certifications. - Quotes for the truck, welders and shop lease. - 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):
- Mobile Welding Service Calls: about $220 per call in Year 1, rising to $244; about $75 per call in direct costs; about 350 calls in Year 1, growing to 1,253. - Shop Fabrication Jobs: about $2,200 per job in Year 1, rising to $2,476; about $950 per job in direct costs; about 35 jobs in Year 1, growing to 125. - Owner salary: $58,000 a year. Crew: $50,000 a year each, from one in Year 1 to four in Year 5. - Other yearly costs in Year 1: shop lease and utilities about $16,000, equipment and consumables about $12,000, marketing about $5,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs