I. Executive Summary
This Section's Contents
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Business Overview
[Company Name] is a new machine shop located in [Location] that provides custom fabrication and machining services to local businesses and residents. Our mission is to help the members of our community make their designs a reality. We offer affordable pricing, design services, and the best customer service in the industry. No matter how challenging the project is, we have the experience and capability to produce everything our customers need.
Services Offered
[Company Name] will provide a variety of machine shop services to manufacture our customers’ unique designs and parts. We can work with a variety of materials including plastic, aluminum, and stainless steel. Some of the services we offer include:
- Boring
- Milling
- Lathe machining
- Abrasive machining
- Grinding
- Design and prototype services
The costs for each project will be determined by the materials needed and the amount of labor required.
Customer Focus
[Company Name] will primarily serve the residents and businesses of [Location] and surrounding areas. The demographics of this area are as follows:
- 224,813 residents
- 15,000 businesses
- Average income of $62,000
- 27% married
- Median age of 36 years
Management Team
[Company Name] is run by [Founder’s Name], who has over [X] years of experience as a professional machinist. Throughout his career, he has worked as a machinist for local businesses, spending much of that time as a manager and trainer for other employees and apprentices. For the past year, he has worked on additional repair and fabrication projects on the side and is ready to turn his side hustle into a full-on business.
Though he has never run his own machine shop business, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company will be providing a valuable service for individuals and businesses in need of machine shop services for a variety of projects.
- [Founder’s Name] has a track record of success in the machine shop industry and is a proven expert.
- [Company Name] will provide high-quality services for a moderate price.
- The local area is currently underserved and has few local machine shop companies offering quality customer service.
Financial Highlights
[Company Name] is currently seeking $520,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Equipment and machinery: $200,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
