Do you want to start an aluminum door & window business and need to write a plan? If YES, here is a sample aluminum fabrication business plan template & feasibility report.
If you are interested in the thriving construction industry, there are loads of businesses you can start in the value chain of this industry and one of them is to go into the manufacturing of aluminum doors and windows.
Aluminum door and window manufacturing is of course one of the many businesses that can be started in any part of the world and the owner of the business can still penetrate the global market by simply exporting his or her products to other countries of the world.
Aluminum doors and windows are basically doors and windows made from aluminum materials and in some cases, these doors are bullet-proof and are used in situations where security is of top priority. It is a known fact that the market for aluminum doors and windows has continued to soar high.
If you are however considering starting your own aluminum door and window manufacturing business, then you must be ready to learn the ropes. Below is a sample aluminum door and window manufacturing business plan template that will help you write your own.
A Sample Aluminum Door & Window Manufacturing Business Plan Template
Table of Content
- 1 Industry Overview
- 2 Executive Summary
- 3 Our Product Offering
- 4 Our Mission and Vision Statement
- 5 Job Roles and Responsibilities
- 6 SWOT Analysis
- 7 MARKET ANALYSIS
- 8 Our Competitive Advantage
- 9 SALES AND MARKETING STRATEGY
- 10 Sales Forecast
- 11 Publicity and Advertising Strategy
- 12 Our Startup Expenditure (Budget)
- 13 Sustainability and Expansion Strategy
Aluminum door and window manufacturing companies manufacture metal doors and door frames. The products made by players in this industry are primarily made of aluminum and steel and are used in a variety of residential and nonresidential facilities, including fire doors and safety exits; they supply doors made from metal for residential, commercial, institutional and industrial building applications.
Please note that the Metal Door and Window Manufacturing industry does not manufacture doors with a wood core. Research conducted by IBISWORLD shows that the Metal Door and Window Manufacturing industry performance depends on demand from residential and commercial construction, which accounted for a respective 55.7 percent and 29.7 percent of industry revenue in 2017.
As a result, construction trends tend to indicate industry revenue movements. The report further pointed out that construction activity and residential spending in particular, lagged in its recovery. This factor was borne out in the relatively low revenue generated by industry participants.
If you take note of the Metal Door and Window Manufacturing industry, you will notice that the industry performance was initially constrained by weak recovery in residential construction activity, followed by weakening demand from the commercial and industrial construction markets in the latter half of the period.
On the other hand, revitalized residential construction activity since 2013, coupled with continued new product development and branding, has helped domestic metal door makers boost sales during the second half of the period. In addition, input prices have generally trended downward since 2013, helping boost profit margins.
Over the next five years, IBISWorld expects the industry to benefit from accelerating construction activity in the residential and nonresidential sectors despite rising external competition.
Statistics has it that in the United States of America alone, the Metal Door and Window Manufacturing industry generates over $49 billion annually from more than 7,692 registered and licensed door and window production companies scattered all around the United States of America.
The industry is responsible for the employment of over 187,220 people. Experts project the metal door and window manufacturing industry to grow at a 3.2 percent annual rate between 2014 and 2019. Please note that no company can boast of having the lion share of the available market in the United States of America.
Some of the factors that encourage entrepreneurs to start their own aluminum door and window manufacturing could be that the business is a thriving business and the products can be sold not just in your country but all across the globe because there is a large market for aluminum doors and windows manufactured in the United States of America.
Good enough, there are fewer aluminum door and window manufacturing companies in the United States of America especially when compared to countries like India and China. This in effect means that the industry is not saturated and it is open to interested investors who are ready to tap into the rising activities in the construction industry.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is a registered aluminum door and window manufacturing company that will be located in Fargo Moorhead – North Dakota. We have been able to lease a facility that is big enough (a 10 thousand square foot facility) for the kind of standard aluminum door and window manufacturing company that we intend launching.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. will be involved in manufacturing different sizes and shapes of aluminum doors and windows and also other products such as metal doors and screen doors, architectural and ornamental metal work and grills, diffusers and moldings for acoustical ceiling systems and sheet metal HVAC ducts, culverts and stove pipes et al.
We are set to service a wide range of clientele in and around Fargo Moorhead – North Dakota. We are aware that there are several aluminum door and window manufacturing companies all around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete with all our competitors.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. will ensure that all our customers are given first class treatment whenever they visit our factory.
We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large they may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is owned by O’Brien Smith and his immediate family members. O’Brien Smith has a Degree in Production Engineering with over 15 years’ experience in the metal door and window manufacturing industry, working for some of the leading brands in the United States.
Our Product Offering
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is in the metal door and window manufacturing industry to manufacture quality and durable products for a wide range of clients and of course to make profits.
We will do all that is permitted by the law of the United States to achieve our business goal, aim and ambition of starting the business. Our product offerings are listed below;
- Manufacturing aluminum doors and windows (both bulletproof and regular)
- Other related products such as metal doors and screen doors, architectural and ornamental metal work and grills, diffusers and moldings for acoustical ceiling systems and sheet metal HVAC ducts, culverts and stove pipes et al.
Our Mission and Vision Statement
- Our vision is to become the leading brand in the metal door and window manufacturing industry and the pride of the construction industry in the whole of the United States of America.
- Our mission is to establish a world – class aluminum door and window manufacturing business whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Our intention of starting an aluminum door and window manufacturing company is to build a standard business whose products will be exported to other countries of the world. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Factory Manager
- Human Resources and Amin Manager
- Sales and Marketing Manager
- Aluminum Doors and Windows Manufacturers
- Customer Services Executive/Front Desk Officer
Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Accountable for providing direction for the business
- Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Supervises the smooth running of the daily office activities.
- Responsible for overseeing the smooth running of the factory
- Part of the team that determines the quantity of aluminum doors and windows and other products that are to be produced
- Maps out strategy that will lead to efficiency amongst workers in the factory
- Responsible for training, evaluation and assessment of factory workers
- Ensures that the steady flow of raw materials to the factory and easy flow of finished products to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the factory meets the expected safety and health standard at all times.
- Supervises the workforce in the factory.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Aluminum Doors and Windows Manufacturers
- Responsible for operating machines used in the manufacturing aluminum doors and windows
- Responsible for manufacturing metal doors and screen doors, architectural and ornamental metal work and grills, diffusers and moldings for acoustical ceiling systems and sheet metal HVAC ducts, culverts and stove pipes et al
- Assist in loading and unloading of aluminum doors and windows, and other products into trucks meant for delivery.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting report
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive/Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels/documents for the company
- Distribute mails in the organization
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is in business to become one of the leading aluminum door and window manufacturing companies in the whole of Fargo Moorhead – North Dakota and we are aware that it will take the right business concept, management and organizational structure to achieve our goal.
We are quite aware that there are several aluminum door and window manufacturing companies all over the United States of America and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. employed the services of an expert HR and Business Analyst with bias in manufacturing to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc.;
Our core strength lies in the high quality of our aluminum doors and windows, closeness to sources of raw materials and of course the power of our team and the state of the art factory that we own. We have a team of highly trained and experienced staff that can produce durable aluminum doors and windows.
We are well positioned in the heart of Fargo Moorhead – North Dakota and we know we will attract loads of clients from the first day we open our company for business.
A major weakness that may count against us is the fact that we are a new aluminum door and window manufacturing company and we don’t own our own aluminum ore like other key players in the industry.
Studies show that the largest market for industry products is the commercial construction market, which purchases sheet metal products such as air ducts, grilles, metal moldings for acoustical suspension ceiling systems, emergency egress doors and exits for use during construction.
Consequently, the value of private nonresidential construction is the primary driver of industry performance. The value of private nonresidential construction is expected to increase in 2019, representing a potential opportunity for the industry.
Steel is one of the primary raw materials used in this industry, and its price can fluctuate wildly. Higher prices damage industry profitability because companies cannot always pass on increased prices to the consumer. The world price of steel is expected to decline in 2019. This decline and its historical volatility pose a potential threat to the industry. So also, unfavorable government policies may also pose a threat for businesses such as ours.
- Market Trends
If you are conversant with the trends in the metal door and window manufacturing industry, you will agree that the industry has benefited from improved industrial production and construction activity over the last half a decade.
A close watch on industry activities reveals that the metal door and window manufacturing industry was hit hard by the recent economic downturn and experienced a decline in revenue in recent time. Please note that external factors such as Housing stats and Industrial production index in will impact industry performance and trend.
The aluminum door and window manufacturing landscape has seen tremendous changes in the last 20 years; it has grown from the smaller enterprise to a more organized and far reaching industry. This trend has benefited them in such a way that they can comfortably sell their aluminum doors and windows nationally and also export them to other countries of the world.
- Our Target Market
Our target market is well defined and in view of that, we have positioned our aluminum door and window manufacturing company to service construction companies, building material retailers and other construction related companies all around Fargo Moorhead – North Dakota and every other location where we intend distributing our products.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.
Our Competitive Advantage
A close study of the Metal door and window manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other leading aluminum door and window manufacturing companies in the industry.
Having a good technical knowledge of the product, access to high quality inputs, optimum capacity utilization, ability to quickly adopt new technology, ability to control total supply on market and upstream vertical integration (ownership links) are part of our competitive advantage.
Our aluminum door and window manufacturing company is located in an ideal property highly suitable for the kind of manufacturing company that we want to run. One thing is certain, we will ensure that we manufacture different sizes and shapes of aluminum doors and windows to meet international standards.
One of our business goals is to make Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. a one stop company for construction material retailers and contractors. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
SALES AND MARKETING STRATEGY
- Sources of Income
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is in business to manufacture and retail different sizes and shapes of aluminum doors and windows. Our source of income will be the manufacturing and retailing of different sizes and shapes of;
- Aluminum doors and windows (both bulletproof and regular)
- Other related products such as metal doors and screen doors, architectural and ornamental metal work and grills, diffusers and moldings for acoustical ceiling systems and sheet metal HVAC ducts, culverts and stove pipes et al at affordable prices.
One thing is certain when it comes to aluminum door and window manufacturing business, if your factory is well located and you have good business network, you will always attract customers cum sales.
We are well positioned to take on the available market in Fargo Moorhead – North Dakota and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond Fargo Moorhead – North Dakota to other states in the United States of America.
We have been able to examine the metal door and window manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projection for Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc., it is based on the location of our business and other factors as it relates to aluminum door and window manufacturing startups in the United States;
- First Fiscal Year (FY1): $575,000
- Second Fiscal Year (FY2): $975,000
- Third Fiscal Year (FY3): $1.95 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing or retailing same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for stakeholders in and around Fargo Moorhead – North Dakota.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the Metal door and window manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Fargo Moorhead – North Dakota and throughout the United States of America.
In summary, Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our aluminum door and window manufacturing company by sending introductory letters alongside our brochure to construction companies, building materials retailers and contractors and key stake holders in and around Fargo Moorhead – North Dakota
- Make use of attractive hand bills to create awareness and also to give direction to our factory
- Position our signage / flexi banners at strategic places around Fargo Moorhead – North Dakota
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Join local chambers of commerce and industries with the aim of networking and marketing our products.
Publicity and Advertising Strategy
Despite the fact that our aluminum door and window manufacturing company is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our aluminum door and window manufacturing company.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. has a long – term plan of opening our distribution channel in various locations all around key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Fargo Moorhead – North Dakota before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc.;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Fargo Moorhead – North Dakota
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our aluminum door and window manufacturing company in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to an aluminum door and window manufacturing company, it is normal for clients to go to places where they can get quality aluminum doors and windows at cheaper prices which is why big players in the industry will always attract loads of clients.
We know we don’t have the capacity to compete with leading aluminum door and window manufacturing companies in the United States, but we will ensure that the prices and quality of all our products are competitive with what is obtainable amongst aluminum door and window manufacturing companies within our level.
We are aware that there are one – off supply contracts from government works department and construction giants. We will ensure that we abide by the bidding price template for such contract.
- Payment Options
The payment policy adopted by Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our aluminum doors and windows without any stress on their part.
Our Startup Expenditure (Budget)
After due diligence, we noticed that these are the key areas where we will spend our startup capital on;
- The total fee for registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard production factory – $150,000
- The total cost for remodeling the warehouse – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The total cost for aluminum doors and windows making machines and start-up inventory – $150,000
- The total cost for supply of raw materials – $100,000
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a website: $600
- Miscellaneous: $10,000
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our aluminum door and window manufacturing company in Fargo Moorhead – North Dakota.
Generating Funds/Startup Capital for Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is owned and financed by O’Brien Smith and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have garnered, the capability and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a company, then it won’t be too long before the business closes shop.
One of our major objectives of Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. is to construct a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to manufacture and retail durable and quality aluminum doors and windows, and other related products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Perfect Edge® Aluminum Door and Window Manufacturing Co., Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (warehouse and factory): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed aluminum doors and windows making machines, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of products that will be available in our warehouse: Completed
- Establishing business relationship with vendors – suppliers and wholesale distributors of aluminum doors and windows, raw materials and key players in the construction industry and building material retailing industry in and around Fargo Moorhead – North Dakota: In Progress
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