Abstract:
Skylux Construction Company is a company that has been in business for some time. After being in operation for some time, the business wishes to borrow some finances to fund its activities that are part of the new goals and objectives.
This paper, Applying for Finance shows the amount of funds to be borrowed, how and where. It also shows the types of finances that the company has opted to go for. The paper also shows the major competitors and the services and products that they offer.
Further on, the paper shows the profiles of the key players in the management of the company. The goals and objectives are well listed.
At the end of the paper is a cash flow projection that clearly shows in detail the loan funds, progress claims paid by the clients, cash out flows and the progressive balances .this gives an overview of the finances of Skylux Construction Company.
Skylux Construction Company is a full- service construction company. It is located in Fairfield, New South Wales. The business is a sole-proprietorship kind of company. The physical address of the company is 1457 Pitt Street Mall, New South Wales, Australia. The company was officially started on 1st July, 2011.
Being a sole-proprietorship business, the company is managed by the owner, who has hired highly skilled and experienced employees. The employees are categorised into two; permanent staff and temporary staff. The temporary staff is called on to supplement the permanent staff when there is a lot to be done.
Skylux Construction Company needs a funding of up to $300000. This is to help expand the business, meet all the goals and purchase better equipment. The company plans to get the finance from banks in the form of loans and overdrafts, as well as grants from government financing institutions.
a) Bank loans – Skylux Construction Company intends to borrow some money from a bank. Repayments can be negotiated with the particular bank so as to be charged a fair interest rate.
b) Bank overdrafts – the company intends to request for an overdraft so as to be assured of funds that will urgently be needed in the process of running the business.
c) Grants – there are no charges attached to grants offered government institutions. This in a big way will help reduce the costs and expenses of the company.
2. Management profile:
Skylux is run by a General Manager, who is also the owner of the business. He has hired a number of people who all play key roles in the management of the business as well as running of projects [ CITATION Ste10 \l 2057 ]. Below is an outline of the key personnel;
a) GENERAL MANAGER
b) SALES AND MARKETING MANAGER
C) PROCUREMENT MANAGER:
D) HUMAN RESOURCE MANAGER:
E) CHIEF SUPERVISOR:
3. Services:
Skylux Construction Company is a business that is based solely on total hard work and commitment to the client. The employees are trained to go out of their way to ensure a client is satisfied. The company’s main goal hence is, to create lavish and comfortable homes for its clients.
The Company offers construction, renovation and remodelling services to builders, contractors and homeowners. It has the ability, equipment, personnel and skill to meet all its clients’ needs and requirements, giving forth exemplary results to all its clients. In addition to that, the company offers free consultation services to potential as well as existing clients.
The business has successfully worked on a number of projects. Most of these projects called for remodelling and renovation of existing structures. However, there were a few construction jobs. Below is a list of works that have already been completed:
PROJECT
RETURNS ($)
1. Construction of a 5-storeyed building
7000
2. Renovation of a residential house
3500
3. Remodelling of a church
2000
4. Goals and objectives:
The company has a number of goals and objectives. The goals are categorised in to three, according to the urgency and cost. There are short-term goals, medium-term goals and long-term goals.
a) Short-term goals (up to 12 months)
Get the business a suitable and more accessible location
Putting in place an effective marketing plan.
Laying out a basic organisational structure.
Recruiting and hiring competent employees.
b) Medium-term goals (up to 2 years)
Acquiring a permanent location for the business.
Acquiring a training centre from where the company can train its own staff.
Be the best construction company in the area and increase the clientele base and retain them.
c) Long-term goals (up to 3 years)
Purchase lands to set up its own real estate.
Expand and have branches all over the region.
Summary of the long-term goals:
In the next 3 years, the company hopes to have its own real estate. This will mean having its own pieces of land, on which houses will be constructed and then sold or rented out. This is a major project that will call for a lot legal processes, and lots of negotiations while trying to pull through transactions. Consequently, huge funds will need to be set aside to see through to the success of the project.
Another major goal is to expand and have branches all over the region. This will widen the market and consequently, have a positive impact on the in returns. Nevertheless, the expansion process will demand a restructuring of the business setting for easier and effective management. A strong marketing plan will be implemented to necessitate the expansion.
Procedures:
The company should be situated in an area that is easy to locate and access. For this, a survey will be conducted around the area before citing a suitable location for the business.
Once a suitable site has been chosen, the next thing will be settling in the business. To get as many clients, marketing will be done all over the region to make people know of the business and its services.
As projects flow in, policies and procedures will get applied. This is an effort towards having a satisfied client at the end of the job.
Having successfully worked on a number of projects, the company will set a training centre where it will train its employees. This will serve both as motivational incentive as well as a measure of quality control. With well-trained personnel, the company will stand a high chance of being the best construction company in the area.
Being the best construction company in the area means that the company has won favour from clients and this widens the market base and retaining the customers comes automatically if they always get the best.
Having achieved the short term and medium term goals, it will be a smart step to start working on the long term goals. Meeting the legal requirements, acquiring land and erecting buildings for sale in the area. This is a sign of a healthy business.
4. Review process:
The reviewing process of the goals and objectives will be done at the middle of every calendar year. Progress will be determined along the development journey [ CITATION Mik10 \l 2057 ]. New opportunities could have emerged and this can cause slight changes in the set plan and procedures, therefore, the goals, objectives and plans should be very flexible to accommodate whatever change encountered along the way.
The reviewing process will be carried out by the chief supervisor and the General Manager. Actual activities on the ground and cash flow statements will be used in the reviewing process. The two best determine if the goals and objectives have been determined. In case of any deviations, the management should sit and make the necessary alterations
5. Customer identification:
The company’s target market is mainly comprised of builders, contractors, and homeowners in the Australian region. The company aims to provide its clients with high-class renovation and remodelling services, while at the same time ensuring that they get the value for their money.
The company chose this particular market because it matches the company’s main objectives and goals. The services provided by Skylux Construction Company are quick, up-to-date, and highly affordable, as compared to those of our competitors. These qualities are meant to satisfy and meet all the needs and requirements of the clients.
6. Competition analysis:
The main competitors to Skylux are Queensland Construction Company Pty Limited, Top Tiles Australia Pty Limited, and Karimbla Construction Services Pty Limited, all being based in Australia.
I) Queensland Construction Company Pty Limited:
This construction company offers a wide range of services, including full contracting options for new buildings and additions, as well as snowploughing services. They only offer a few contracts for the snowploughing per season. Their approach to customer service is a one-on-one kind of approach and they have in place stringent policies to ensure that their services are up to standard.
The services offered by the Queensland Construction Company are a bit limited. They do not offer a wide range of options to the client and their contracts are also limited. Their approach to customer service is reasonable. The company needs to consider more specific measures to enforce quality control.
II) Top Tiles Australia Pty Limited:
It is a full service construction company. It designs most of its homes free of charge to the homeowner. The company maintains its homes through a standard 1-year warranty. Clients are free to make enquiries at any time during the 1 year grace period, which is a good approach to customer service. For quality control the company has put employed highly skilled personnel.
The range of services offered by Top Tiles Australia Pty Limited is quite wide, which is commendable. The 1-year warranty is an attractive package to its clients. Being always available for consultations is a very good customer approach and having well-trained and highly skilled employees are one of the best quality control measures. It is a sure way of providing excellent services to the clients.
III.) Karimbla Construction Services Pty Limited:
It is a full-service company, which offers remodelling services exclusively. The company offers the option of facilitating 100% financing for qualified clients via third-party money lenders. Their main customer approach is making a follow-up on the client’s finances, and making available options for easy payments. For quality control, the construction company ensures constant communication with the client throughout the project.
The company has limited its clientele base, by choosing to offer a single type of service which is remodelling. This will generally affect their income. Their way of approach to customer service is also a bit demeaning, as it shows a bit of distrust on the customer’s part .However; their measure of quality control is highly recommended as it ensures the client gets exactly what they want, or even better.
7. Cash flow projections:
References
McKeever, M. (2010). How to Write a Business Plan. Louisiana: Nolo.
Montier, J. (2007). Behavioural investing: a practitioner's guide to applying behavioural finance. New Jersey: John Wiley and Sons.
Steven D. Peterson, P. E. (2010). Business Plans Kit for Dummies. New Jersey: For Dummies.
