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Luntian Doors and Windows Corp.
Business Plan The Table of Contents
Executive Summary
1
Mission
4
Company Overview
5
Proucts an Services
!
The Mar"et
15
Market Definition
15
Market Segment
15
Marketing
17
Position
17
Pricing
17
Distribution Channels
18
Advertising and Promotion
18
Competition
#$
%is"&Opportunity
##
Mana'ement Team
#4
Capital %e(uirements
#5
)inancial Plan
#!
Assumptions
7
!inancial Statements
7
Luntian Doors and Windows Corp.
Bussiness Plan
Executive Summary
"hether one is aiming an elegant# energ$ efficient# or a secure home amidst the rapidl$ changing outlook for taste in fanc$ accessories for their respective homes# the rising issues in energ$ consumption the %orsening challenges being given b$ the environment# families have been having a great problem in addressing these things simultaneousl$& simultaneousl$& 't %ould then not be surprising that s$nergisticall$ addressing these things has long been a dream for man$# but# b$ introducing the products and services being offered b$ our compan$# Luntian Luntian Doors Doors and Windows# such dreams that seemed ne(t to impossible turns them into a realit$& Doors and Windows Windows# have been providing our customers %ith the utmost "e# at Luntian Doors
)ualit$ products superior to others# use onl$ the finest products and cutting*edge technolog$ in our field# to meet the undoubting high e(pectations being set b$ the customers and the respective circumstances& +ur outstanding and e(emplar$ staff has been thoroughl$ trained to help the customers select the t$pe of door or %indo% the $ need# %hether it be interior or e(terior# e( terior# metal# glass or %ood# having been elegantl$ e legantl$ garnished or simpl$ decorated# among others& +ur %indo%s and doors are speciall$ set up to meet all of the challenges being be ing offered b$ the environment# such as harsh %inds# raining conditions# and e(treme heat& ,e have been licensed and insured compan$ %ith a seemingl$ uncountable $ears of e(perience- our proven )ualit$ %orkmanship and our %ide variet$ of selections hav e continuall$ set us apart from the competition being set b$ other companies& +n the other hand# if one is looking for%ard for high
1|Page
Luntian Doors and Windows Corp.
Bussiness Plan
Executive Summary
"hether one is aiming an elegant# energ$ efficient# or a secure home amidst the rapidl$ changing outlook for taste in fanc$ accessories for their respective homes# the rising issues in energ$ consumption the %orsening challenges being given b$ the environment# families have been having a great problem in addressing these things simultaneousl$& simultaneousl$& 't %ould then not be surprising that s$nergisticall$ addressing these things has long been a dream for man$# but# b$ introducing the products and services being offered b$ our compan$# Luntian Luntian Doors Doors and Windows# such dreams that seemed ne(t to impossible turns them into a realit$& Doors and Windows Windows# have been providing our customers %ith the utmost "e# at Luntian Doors
)ualit$ products superior to others# use onl$ the finest products and cutting*edge technolog$ in our field# to meet the undoubting high e(pectations being set b$ the customers and the respective circumstances& +ur outstanding and e(emplar$ staff has been thoroughl$ trained to help the customers select the t$pe of door or %indo% the $ need# %hether it be interior or e(terior# e( terior# metal# glass or %ood# having been elegantl$ e legantl$ garnished or simpl$ decorated# among others& +ur %indo%s and doors are speciall$ set up to meet all of the challenges being be ing offered b$ the environment# such as harsh %inds# raining conditions# and e(treme heat& ,e have been licensed and insured compan$ %ith a seemingl$ uncountable $ears of e(perience- our proven )ualit$ %orkmanship and our %ide variet$ of selections hav e continuall$ set us apart from the competition being set b$ other companies& +n the other hand# if one is looking for%ard for high
1|Page
Luntian Doors and Windows Corp.
Bussiness Plan
)ualit$ services# especiall$ for those looking for%ard for replacement of doors and %indo%s# %e have been offering a %ide variet$ of brands and st$les to choose from& +ne ma$ ma $ check out the great selection for replacement for doors and %indo%s# and be surprised that a home that seemed degraded ma$ be turned into an elegant one# b$ changing the out*of*st$le doors and %indo%s# %hile simultaneousl$ ma(imi.ing the efficienc$ being brought& Luntian Doors Doors and Windows Windows manufactures custom %ooden doors and %indo%s#
primaril$ for residential construction& construction& Doors /solid %ood# %ood0glass or %ood0brass account for 234 of gross sales %hile %ood*frame %indo%s account for 134& +ur products are sold to Southern +ntario retailers %ith an increasing portion going to e(ports& he compan $ started b$ selling to the ne% home market in 1288 but in response to changes chang es in the marketplace is no% a leading supplier for the up*scale renovation market& +ur implementation plan %ill be carried out in t%o parts6 prepare for manufacturing# and marketing and selling the product& 'n preparation for manufacturing# %e plan to hire cheap labor and train them to engage them in full*service sales and installation purposes dedicated to satisf$ the needs for the customers doors and %indo%s& hat is# %e %ill purchase the re)uired materials ** steel# plastic# %ood# and other t$pes of materials depending on the product ** from %holesale companies in bulk# build our o%n protot$pe for a specific product# and thoroughl$ test our protot$pe before starting mass assembl$& assembl$& "e "e estimate our startup startup time# completion of the first successful protot$pe# to be appro(imatel$ ranging from a %e ek to up to three %eeks& +ur )ualified team has e(pertise in such %orks# %hich %ill ensure successful product development and an unmatched reliabilit$ and )ualit$&
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Luntian Doors and Windows Corp.
Bussiness Plan
'n marketing and selling the product# %e plan to hire kno%ledgeable salespeople# capable of convincing customers to promote the upliftment of their )ualit$ of life& o promote our product %e %ill sponsor $oung surfers# team up %ith companies selling complimentar$ products# and involve the compan$ in surfing communit$ events such as competitions& he total estimated cost for the installation and fabrication of doors and %indo%s shall var$ per piece# %hich shall be influenced mainl$ b$ the specific characteristics of the said product& Markups shall not be initiall$ included&
Luntian’s Doors and Windows is one of the companies in the gro%ing market eager for
inventive ne% products and upgrades& "e at Luntian’s Doors and Window believe that the products and services %e provide %ill create a more advanced and more productive e(change of products to the ever*gro%ing industr$ of doors and %indo%s& "ith our proposal# %e offer $ou the chance to oin an industr$ %ith a strong trend of gro%th&
3|Page
Luntian Doors and Windows Corp.
Bussiness Plan
Mission Statement
he Luntian Doors and Windows’ mission is to be the recogni.ed and the leading name in the manufacturing of high )ualit$ %indo% and door accessories# parts and services& 9eing a performance leader means# %e %ill achieve operational e(cellence# industr$*leading customer satisfaction and superior financial performance& "e aspire to carr$ a reputation in the marketplace for developing and delivering our products# that is# our doors and %indo%s in a time saving and better*%a$ products sold at a fair price for uses in the market in a professional %a$& "e can achieve such a thing b$ closel$ understanding the market trends and needs of the public# having innovative and profitable merchandising and packaging and b$ having a cutting edge product development& o accomplish our goal# he Luntian Doors and Windows needs a capital to start %ith# an e(perienced set of managerial staffs to keep the compan $ moving for%ard to%ards its goal# and b$ having larger and more efficient facilities& 'n such a manner# achieving the said goals %ould be met in no time& 'n pursuit of our goal# %e resolve to treat stakeholders# customers# and the communit$ %ith utmost professionalism# honest$ and obe$ing the rules set b$ the respective parties& hese groups see our compan$ as providing an improved )ualit$ of life that have been derived from our striving compan$&
4|Page
Luntian Doors and Windows Corp.
Bussiness Plan
Company Overview
he Luntian Doors and Windows manufacture custom %ooden doors and %indo%s# primaril$ for residential construction& Doors /solid %ood# %ood0glass or %ood0brass account for 234 of gross sales %hile %ood*frame %indo%s account for 134& +ur products are sold to retailers %ith an increasing portion going to e(ports& he compan$ %ill start selling to the ne% home market in but %ishes to be a leading supplier for the up*scale renovation market& +ur products fit %ell into overall social and economic trends& :enovation investment has continued to increase as the population ages6 people tend to sta$ more at home and invest in their comfort /cocooning& 'n addition# our market niche is fairl$ %ell protected against fluctuations in the real estate market6 high*)ualit$ doors and %indo%s add both resale value and comfort& 'n 331# renovation and alterations accounted for ;8&74 of household pesos and additions accounted for <&74& !urther# the appeal of %ood# a natural product# remains strong in toda$=s markets& 'ts %armth# solid look and silk$ feel are intangible factors favoring our speciali.ed products& he manufacturing of custom %ooden doors and %indo%s is ver$ concentrated# %ith a fe% manufacturers occup$ing 754 of the market& ,o%ever# the renovation and construction markets have traditionall$ been ver$ fragmented# %ith a large number of small operators# both for clients and suppliers&
5|Page
Luntian Doors and Windows Corp.
Bussiness Plan
he mill%ork industr$ is stable and mature& Manufacturers produce a %ide range of fabricated mill%ork# including %ood mill%ork commodities %ith metal and plastic overla$s& "ithin the industr$# in terms of value# doors /;34 represent the largest segment follo%ed b$ %indo%s /including %ood# aluminum# metal and vin$l clad# 54& he niche market is significant# representing 54 of all sales& "hile the mill%ork industr$ generall$ follo%s fluctuations in ne% home construction# repair and remodeling investment remains stead$& he market for custom products such as those from he >untian Doors and "indo%s tends to be better protected from fluctuations here are no significant regulations for this industr$&
6|Page
Luntian Doors and Windows Corp.
Bussiness Plan
Products and Services
he Luntian Doors and Windows make# provide# install and do related services in various t$pes of %indo%s and doors# %hich include the element in the list# some of %hich are sho%n in the sample picture among others& he price ranges# P733&33*P8333&33 for %indo%s and P7333&33*P18333&33 for doors# are dependent on the dimensions of the specified door or %indo%# on the material used# and other characteristics as specified b$ the customer&
Alternativel$# Luntian Doors and Windows deliver the follo%ing services6
Door and "indo% Services Maintenance "orks and :epairs 'nstallation Services :eplacement Services 'nspection Services Services for pgrades
Presentl$# the products and services being offered are in the development stage& "e plan to follo% this t$pe of e(emplar$ service %ith e(tensions to our line# %hich shall include steps that %ill pave the %a$ for a greater )ualit$ products and services& +ur products or services# ho%ever# is uni)ue because of the fle(ibilities it had offered %hich then stood out above the rest# including the innovation in hurricane impact %indo%s# a great leap that redefined products in its o%n respect&
The Mar"et Market Definition
"e e(pect to compete in the local manufacturing and distribution of high )ualit$ doors and %indo%s# and be an internationall$ recogni.ed distributor& his market %as appro(imatel$ made for large and small scale construction and made order available in %holesale or retail& "e believe# the maor future trend in the industr$ %ill be to%ards environmentall$ oriented# high )ualit$# and value oriented product offerings&
Market research suggests this market %ill gro% to be having shipments or deliveries around the countr$ b$ having branches nation%ide b$ the $ear 33& "e e(pect the niche in %hich %e compete to gro% more during this time& he maor forces affecting this change %ill be trends# demand# environmental issues and innovations& he area of greatest gro%th %ithin the industr$ %ill be focused on our doors and %indo%s designs# parts# accessories and services b$ setting standards&
Mar"et Se'ment
"e define our market segment as the light and ventilation of the buildings# home and other infrastructures& his segment has been stead$ in the last fe% $ears& 'ndustr$ e(perts like the Santiago doors forecast greater sales for the industr$ in the ne(t fe% $ears& he maor market segments are on production# design# services# etc& >ist# in general# the t$pes of customers %e are likel$ to reach such as retailers# contractors# construction firms# etc& he segment of the market is based on %indo%s that retail in the Php 733&33 B Php 8333&33 depending on the specification of the costumer and doors ranging Php 7333&33 B 18333&33 depending on the materials needed& Most of the sales in the segment are delivered on the specified place using truck& he charge is included on the package the costumer availed&
A t$pical customer for our product is a person %ho current ma$ use o ur products as one of his prospect to make good ventilation and design for his home# building# e tc& he$ are motivated to bu$ our product because of its uni)ueness since %e ensure customer satisfaction# high )ualit$ at reasonable price& "e kno% this from customer responses and feel our customers perceive our products as good value
+ur product# does# ho%ever# have the follo%ing %eaknesses- man p o%er if the orders are made at high volume and a possible scarcit$ of ra% materials& "e are %orking to position our product as a continuous innovation in order to reduce this vulnerabilit$ and hire people to increase man*po%er&
Mar"etin'
+ur marketing plan is based on the follo%ing fundamentals6 "e e(pect to penetrate the local then international segment of the market and achieve this b$ using the retail# %holesale# mail order and internet as our primar$ distribution channels& 'n time# %e plan to capture 53*34 share of the market&
Position
"e %ill position our product as good value for price and top )ualit$ %hich is a position not presentl$ being addressed b$ the competition& +ne demographic group in particular# the elderl$ has a particular need for this product# and %e tailor our positioning accordingl$&
Pricin'
"e arrive at our pricing based on market prices& "e revie% this pricing )uarterl$ to ensure that potential profits are not s)uandered& Customers seem %illing to pa $ as much as the specified price for their orders because of )ualit$ since %e can assure it to them&
*istribution channels
he distribution channels %e use for our product are retailers# %holesalers# contractors# etc& hese make sense for delivering our product to the end user because of the reputation of the products& +ur channel %ill prove more advantageous because it %ill be kno%n and a trend %hen it comes to doors and %indo%s&
+vertisin', promotion, trae shows
Luntian Doors and Windows have developed a comprehensive advertising and
promotion strateg$# %hich %ill be implemented b$ the best possible firm %hen fund is completed& "e e(pect to have a presence in several national maga.ines as %ell as the trade press& "e %ill produce our o%n ads and be a part of ad campaigns of our E partners or +@Ms& +ur publicit$ plan is to remain in constant contact %ith editors and %riters of different medias and seek stories and coverage that %ill introduce us to bu$ers&
"e plan to promote our product through a variet$ of onsite product sampling# give*a%a$s at fund raisers# sponsorship and other high leverage events& he obective of all our promotions is to e(pand the costumers# position our product as a premium brand# and strengthen our ties to the consumers&
Luntian Doors and Windows participate in the follo%ing trade sho%s- economic green
a%areness and innovations participated b$ the managers and C@+ of the compan$ and talked about the efficienc$ of the products& "e have a regular displa$ booth of knock do%n construction %hich allo%s us to displa$ our e(isting products and introduce ne% ones& he follo%ing factors are taken into account %hen considering a trade sho%- %ill this event help deliver ou r message to our target audienceF Does the location of th e sho% have significanceF 's the time frame convenientF 's it a Gmust*go sho%GF
Competition
here are three maor manufacturers in the Philippines %hich is serving appro(imatel$ 754 of the doors and %indo%s segment6 :ockefeller "indo%s and Doors# Luntian Doors and Windows# and E Doors and "indo%s Services# %hose reputation have been established and is
offering different t$pes for the needs of the customers& Several local operations make up the balance of the local marketplace %ith competition arising from artisan door makers&
Maor strengths of large competitors lie in the economies of scale given b $ their broad* brush approach to the marketplace& he large si.e of these companies allo%s them better access to retailers across the Philippines&
9oth :ockefeller "indo%s and Doors and E Doors and "indo%s Services concentrate their efforts in aluminum and vin$l %indo%s# and are not positioned to enter the diverse range of products to be introduced in the market %ithout significant investment and re*tooling# a significant advantage to these companies& he$ also offer doors but onl$ as an add*on to fill orders from their regular customers&
:ockefeller "indo%s and Doors has decided to concentrate on the manufacture of plain interior doors but has also entered into an agreement %ith a foreign compan$ to distribute their
!rench doors in the market in the Philippines& Although their doors are of lo%er )ualit$ and lack our uni)ue glass carvings and brass inla$s# the$ represent a significant threat to our products# especiall$ in the superstore market& >ocal artisans= products are most similar to ours# and %hile the$ generall$ have close relationships %ith architects and local builders# the$ are unable to suppl$ the larger retailers because of their si.e and more speciali.ed nature of their products& Luntian Doors and Windows’ advantage reside in its niche6 %e are big enough to suppl$
large retailers# $et offer high*)ualit$ %ood products that respond directl$ to the tastes of the mid to high*end market segment& @ven :ockefeller "indo%s and Doors higher )ualit$ products do not match our custom glass carvings and brass inla$s# and the Gone*si.e*fits*allG approach of the competition allo%s ample room for smaller speciali.ed competitors such as Luntian Doors and Windows to thrive& "e intend to continue positioning our products in the higher end of the
market& 'n superstores# %here our products are at the greatest disadvantage beside E Doors and "indo%s# our point*of*sale marketing efforts /H!eel the DifferenceI series have paid off and our sales remain strong&
Risks and Opportunities
-usiness %is"s
Some of the maor risks facing our development include limited operating hours# limited resources and hence# had passed do%n to production uncertainties& ,aving these problems rooted mainl$ from the limited resources that greatl$ affected the production& "hile the suppl$ of the ra% materials needed is considered to be unlimited to some certain points of time# the )ualit$ of these sources var$& Providing )ualit$ materials is no eas$ task# and hence having a limited resource %ould impl$ a limited product being p roduced& he result of variabilit$ in log )ualit$ is lo% $ield from primar$ breakdo%n& sing a customi.ed production s$stem# that %ill have to be developed# it %ill be difficult to leverage profits from fi(ed costs particularl$ at earl$ stages of the business& ,ence# no%# since the resources being delivered varies from time to time# uncertaint$ issues arise and hence transform the problem itself to the limit in operating hou rs and production uncertainties& Also# it is also an emerging threat to the compan $ the increasing environmental and certification re)uirements for ra% materials that ma$ put do%n%ard pressure onto the industr$& 'nitiall$ profits %ill be lo%# resulting in tight cash flo%s and little fle(ibilit$&
Opportunities
Although our business toda$ has its share of risk# %e feel %e can overcome these risks because of the skilled professionals and emplo$ees %e have recruited& heir e(pertise and the e(perience in similar instances %ould then be of great help in alleviating or# if possible# eliminating the said problems& "e %ill address the limitations being brought to our compan$ b$ doing a comprehensive stud$ to pave a %a$ in giving certain alternatives to keep the scorching determination of the compan$ to%ards success running# and to further complement the said solution# %e shall also be partnering %ith a larger compan$ %ho kno%s the market# and have had a much broader e(perience in such& ,aving their thoughts and opinions regarding the problems %ould be of great help to our compan$& 'f %e are able to overcome these risks# our compan$ has the opportunit$ to continuall$ dominate a niche in the marketplace# and conse)uentl$# become a maor force in the industr$ in the production of doors and %indo%s# and the services %e render& "e feel our brand# and our compan$ in general# could become kno%n as the premiere supplier of high )ualit$ products and services in the door and %indo% industr$# and being a role model in such an endeavor& "e think %e can achieve this goal in the ne(t fe% $ears# possibl$# b$ 5 $ears&
Management Team
C%!
%e'uti)e
,i'e President ,i'e President "ales - $ar+eting 0inan'e - (''ounting Produ'tion and
"e seek a sum of ₱ 1#533#333&33 of additional senior financing to fund our gro%th for the ne(t three $ears& At that time# %e %ill need an additional ₱ ;33#333 to reach a positive cash flo% position& he initial stage of funding %ill be used to complete development of the business# to
Capita Re!uirements
"e seek a sum of ₱ 1#533#333&33 of additional senior financing to fund our gro%th for the ne(t three $ears& At that time# %e %ill need an additional ₱ ;33#333 to reach a positive cash flo% position& he initial stage of funding %ill be used to complete development of the business# to purchase e)uipment# to introduce and market our ne% product line# and to fund %orking& ,ere is a breakdo%n of ho% the funds %ill be spent-
Complete Development
₱
833#333
Complete development includes6 >egal e(pense for obtaining licenses and permits as %ell as •
• •
accounting services totaling ₱ 53#333 'nsurance coverage of ₱ 33#333 Pre*paid rent e(pense for months for the %arehouse at ₱133#333
•
Pre*paid rent e(pense for months for the office at ₱
•
3#333 Premise remodeling in the amount of ₱ 33#333
Purchase @)uipment
₱
;33#333
Market our ne% product line
₱
33#333
!und %orking capital
₱
;33#333
!und %orking capital includes6 Start*up e(penses of ₱ 133#333 • Start*up Assets of ₱ 33#333 •
"e can provide and e(it for this investment %ithin 13 $ears b$ the sales earned b $ the compan$& 9ased on our proections# %e feel an investment in our Compan$ is a sound business investment& 'n order to proceed# %e are re)uesting an investment of ₱ 1#333#333 b$ anuar$ 31&
