Are you about starting a brick manufacturing plant? If YES, here’s a complete sample cement brick making plant business plan template & feasibility report you can use for FREE to get started.
The rule of thumb in choosing a business to launch is to look out for a business whose products or services are needed in our everyday life. Starting a cement bricks manufacturing company can come in handy if you have the business exposure and financial requirements.
A Sample Bricks Making Plant Business Plan Template
1. Industry Overview
Cement bricks manufacturing business is part of the Concrete Pipe and Block industry and players in this industry primarily manufacture concrete pipes, bricks and blocks. Concrete pipes include storm sewer pipes, sanitary sewer pipes, reinforced pressure pipes, pre-stressed cylinder pressure pipes and culvert pipes.
Concrete brick and block production mainly includes structural blocks, decorative blocks and pavers, bricks and miscellaneous concrete products. Products made by this industry are heavily used in infrastructure and residential construction.
While concrete blocks are used across board, concrete pipes are especially reliant on demand from infrastructure markets such as natural gas distribution and sewage treatment. IBISWorld estimates that the industry’s sustained growth had partially resulted from these key markets, which have led industry revenue to rise over the five years to 2017.
Moving forward, construction markets are expected to continue their steady growth. As a result, IBISWorld expects industry revenue to continue increasing. The Concrete Pipe and Block manufacturing industry that cement bricks manufacturing business is a part of is indeed a large industry and pretty much active in most countries of the world.
Statistics have it that in the united states of America alone, there are about 603 registered and licensed concrete pipe and block manufacturing companies scattered all across the United States responsible for employing about 24,110 people and the industry rakes in a whooping sum of $7 billion annually.
The industry is projected to enjoy 2.5 percent annual growth within 2012 and 2015. It is important to state that Cemex SA de CV and CRH PLC are the establishments with the lion shares of the available market in this industry.
Research carried out by IBISWorld shows that the Concrete Pipe and Block manufacturing industry has a medium level of market share concentration, with the three largest players generating an estimated 20.6 percent of industry revenue in 2017. The remainder of the market is captured by a large number of small and medium-scale operators that service relatively narrow geographical markets.
However, large-scale players maintain a presence across many regional markets. The report further stated that over the past five years, ownership concentration within the industry has increased due to acquisition activity in the US building materials market.
This has typically involved the acquisition of local and regional players by larger companies seeking to expand their operations, and large foreign owned manufacturing companies hoping to gain a foothold in the US market.
Over and above, the concrete pipe and block manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale or you can choose to start on a large scale servicing a wide range of clientele in the United States’ market space.
2. Executive Summary
Four Squares® Cement Bricks, Inc. is a registered cement bricks manufacturing company that will be located in Raleigh – North Carolina; in an ideal location, highly suitable for the kind of manufacturing business we want to establish. We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the kind of standard cement bricks manufacturing company that we intend launching.
Four Squares® Cement Bricks, Inc. will be involved in manufacturing different sizes and shapes of concrete blocks, concrete pipes, and concrete bricks. We are set to service a wide range of clientele in and around Raleigh – North Carolina.
We are aware that there are several large and small cement bricks 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 in the market.
Four Squares® Cement Bricks, 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.
Four Squares® Cement Bricks, 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 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.
Four Squares® Cement Bricks, Inc. is a family business that is owned by Fritz Humphrey and his immediate family members. Fritz Humphrey has a Degree in Civil Engineering with over 10 years of experience in the construction cum concrete pipe & block manufacturing industry, working for some of the leading brands in the United States.
3. Our Products and Services
Four Squares® Cement Bricks, Inc. is in the concrete pipe and block manufacturing industry to service a wide range of clients and of course to make profits, which is why we will go all the way to give our clients options. 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 concrete blocks
- Manufacturing concrete pipes
- Manufacturing concrete bricks
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the concrete pipe and block manufacturing industry in the whole of Raleigh –North Carolina.
- Our mission is to establish a world – class cement bricks 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
Four Squares® Cement Bricks, Inc. does not intend to start a cement bricks manufacturing business like the usual cottage business; our intention of starting a cement bricks 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 structure 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 Admin Manager
- Sales and Marketing Manager
- Cement Bricks Machine Operator
- Accountants / Cashiers
- Customer Services Executive / Front Desk Officer
5. 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; developing incentives; developing a climate for offering information and opinions.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- In authority of providing direction for the business
- Responsible for signing checks and documents on behalf of the company
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
- Oversees 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 cement bricks 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 both 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.
- Interfaces with third – party suppliers (vendors) of raw materials
- Controls cement bricks distribution and supply inventory
- 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
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Cement Bricks Machine Operators
- Responsible for operating machines used in the manufacturing concrete blocks, concrete pipes and concrete bricks
- Assists in loading and unloading of concrete blocks, concrete pipes and concrete bricks 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 reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- 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
6. SWOT Analysis
Four Squares® Cement Bricks, Inc. is in business to become one of the leading cement bricks manufacturing companies in the whole of Raleigh – South Carolina 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 cement bricks 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.
Four Squares® Cement Bricks, 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 Four Squares® Cement Bricks, Inc.;
Our core strength lies in the high quality of our concrete bricks, pipes and blocks, the power of our team and the state of the art cement bricks manufacturing factory that we own. We have a team of highly trained and experienced staff members that can go all the way to produce durable concrete bricks, pipes and blocks.
We are well positioned in the heart of Raleigh – South Carolina and we know we will attract loads of clients from the first day we open our cement bricks manufacturing company for business.
A major weakness that may count against us is the fact that we are a new cement bricks manufacturing company and we don’t have the financial capacity to compete with multi – million dollars’ cement bricks manufacturing companies in the United States. So also, we may not have enough cash reserve to promote our cement bricks manufacturing company the way we would want to do.
The fact that we are going to be operating our cement bricks manufacturing company in one of Raleigh – South Carolina provides us with unlimited opportunities to sell our products to a large number of clients. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our factory; we are well positioned to take on the opportunities that will come our way.
One of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new cement bricks manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with trends in the Concrete Pipe and Block 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 concrete pipe and block manufacturing industry was hit hard by the recent economic downturn and experienced a decline in revenue in recent time.
The concrete pipe and block 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 factory. This trend has benefited them in such a way that they can comfortably sell their cement bricks, pipes and blocks nationally and also export them to other countries of the world.
8. Our Target Market
Our target market is well defined and in view of that, we have positioned our cement bricks manufacturing company to service construction companies all around Raleigh – South Carolina 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.
A close study of the concrete pipe and block 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 stiffer competition and we are well prepared to compete favorably with other leading concrete pipe and block manufacturing companies in Raleigh – South Carolina and throughout the United States and Canada. Four Squares® Cement Bricks, Inc. is launching a standard cement bricks manufacturing company that will indeed become the preferred choice of residents of Raleigh – South Carolina.
Having a good technical knowledge of the product, ability to control total supply on market and upstream vertical integration (ownership links) are part of our competitive advantage. Our cement bricks 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 concrete bricks, pipes and blocks to meet international standards. One of our business goals is to make Four Squares® Cement Bricks, Inc. a one stop cement bricks manufacturing company for construction cum civil engineering companies.
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 achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Four Squares® Cement Bricks, Inc. is in business to manufacture and retail different sizes and shapes of cement bricks, pipes and blocks to clients in the United States of America and other countries of the world. We are in the concrete pipe and block manufacturing industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the manufacturing and retailing of different sizes and shapes of cement bricks, concrete pipes and concrete blocks at affordable prices.
10. Sales Forecast
One thing is certain when it comes to the cement bricks manufacturing business, if your factory is well located and you have good business network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Raleigh – South Carolina and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base beyond Raleigh – South Carolina to other states in the United States of America and other countries of the world.
We have been able to critically examine the concrete pipe and block manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.
Below are the sales projection for Four Squares® Cement Bricks, Inc., it is based on the location of our business and other factors as it relates to cement bricks manufacturing startups in the United States;
- First Fiscal Year: $250,000
- Second Fiscal Year: $550,000
- Third Fiscal Year: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown or 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 Four Squares® Cement Bricks, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in and around Raleigh – South Carolina. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the concrete pipe and block 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 Raleigh – South Carolina and throughout the United States of America.
In summary, Four Squares® Cement Bricks, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our cement bricks manufacturing company by sending introductory letters alongside our brochure to construction companies, and key stake holders in and around Raleigh – South Carolina
- Ensure that we manufacture different sizes of cement bricks, pipes and blocks
- Make use of attractive hand bills to create awareness and also to give direction to our factory
- Position our signage / flexi banners in strategic places around Raleigh – South Carolina
- Create a loyalty plan that will enable us reward our regular customers
- 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.
11. Publicity and Advertising Strategy
Despite the fact that our cement bricks 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 cement bricks manufacturing company.
Four Squares® Cement Bricks, Inc. has a long – term plan of opening our distribution channel in various locations all around key cities in the United States which is why we will deliberately build our brand to be well accepted in Raleigh – South Carolina before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Four Squares® Cement Bricks, 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 Raleigh – South Carolina
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our cement bricks 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 wears our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to a cement bricks manufacturing company, it is normal for clients to go to places where they can get cement bricks, pipes and blocks 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 cement bricks manufacturing companies in the United States, but we will ensure that the prices and quality of all the products that we manufacture are competitive with what is obtainable amongst cement bricks manufacturing companies within our level.
We are aware that there are one – off cement bricks, pipes and blocks 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 Four Squares® Cement Bricks, 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 regulation of the United States of America.
Here are the payment options that Four Squares® Cement Bricks, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- 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 cement bricks, pipes and blocks without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
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 Four Squares® Cement Bricks, 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 warehouse and showroom – $250,000
- 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) – $60,000
- The total cost for cement bricks, concrete pipes and concrete block making machines and start-up inventory – $250,000
- The total cost for counter area equipment – $9,500
- 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
- The total cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of five hundred and fifty thousand dollars ($550,000) to successfully set up our cement bricks manufacturing company in Raleigh – South Carolina.
Generating Startup Capital for Four Squares® Cement Bricks, Inc.
Four Squares® Cement Bricks, Inc. is a family business that is owned and financed by Mr. Fritz Humphrey 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.
These are the areas we intend generating our startup capital;
- 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 $350,000 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.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of Four Squares® Cement Bricks, Inc. is to build 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 cement bricks, pipes and blocks a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Four Squares® Cement Bricks, 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 cement bricks, concrete pipes and concrete blocks 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 cement bricks, concrete pipes and concrete blocks: In Progress
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