Are you about starting a fencing company? If YES, here is a complete sample fencing business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a fencing business. We also took it further by analyzing and drafting a sample fencing marketing plan template backed up by actionable guerrilla marketing ideas for fencing companies. So let’s proceed to the business planning section.
In the united states of America and in most countries in Europe, you will notice that a good percentage of homes have one form of fencing or the other. This goes to show that there is indeed a large market for a fencing business.
If you want to start a fencing company, then you need to start with writing a business plan. The essence of writing a business plan before starting any business is for you to have a road-map and a blueprint of how you would want to setup, manage and expand your business.
So, ensure that you consider all the factors involved in the business when preparing your business plan. Below is a sample fencing company business plan template that will help you to successfully write yours with little or no stress.
A Sample Fencing Company Business Plan Template
1. Industry Overview
Fencing companies are part of the fence construction industry and this industry comprises of establishments that construct and install a wide range of fences, including residential fences, security fences, niche fences amongst others.
In recent time, establishments in the industry have experienced a variation of conditions as the US economy has recovered from the recession and housing values have begun to rebound. So also, with the recent resurgence of residential construction markets, fencing companies are benefiting from new investments in housing stock.
In the same way, non – residential construction returned to growth during the stated period as increasing consumer spending revived corporate profit margins.
Going forward, players in the industry are forecast to experience more favorable conditions. Robust residential growth during the period, especially in the next two years, will aid fencing contractors increase profitability and enlarge their revenue.
Statistics has it that in the United States of America alone, there are about 48,918 registered and licensed fencing companies responsible for employing about 80,287 people, and the industry rakes in a whooping sum of $8 billion annually.
The industry is projected to grow at 8.3 percent annual growth within 2013 and 2018. It is important to state that there are no establishments in this industry that has a lion share of the market.
A recent report published by IBISWORLD shows that the industry revenue is expected to grow at an annualized rate of 6.3 percent to $8.2 billion, including a projected 4.2 percent increase in 2018 alone. The industry experienced strong expansion during the period, growing each of the five years to 2018, underpinned by low interest rates and sustained demand for new single-family homes throughout the country.
Over the five years to 2023, revenue for the industry is projected to rise at a more modest annualized rate of 2.3 percent to $9.2 billion. With an expanding housing market, there will be greater demand for fences, especially from home builders and households in need of renovation.
In 2018, an estimated 68.4 percent of total industry revenue will be derived from metal fences, according to data from Freedonia, a market consultancy. There is a wide range of metal fences that customers can choose from depending on consumer preference as well as practical end use.
Chain-link fences are generally the most economical type of fencing available in the market today. The nonresidential commercial building and institutional market are two important downstream markets for chain-link fences.
Ornamental metal fences come in a variety of styles and is one of the most popular fencing products. The residential construction market is the main buyer for ornamental metal fences. Wood fences are expected to represent 17.9 percent of the overall revenue generated in the industry.
Some of the factors that encourage entrepreneurs to start their own fencing companies could be that the business is a highly profitable business, and it can be started with minimal capital and manpower. The fence construction industry is highly regulated in the United States of America and anyone who aspires to start a fencing company must apply and obtain a license before they can legally operate in the industry.
2. Executive Summary
Beth Seychelles® Fence Construction Company is a licensed fencing company. Our head office is located in a standard office facility in the heart of Nassau-Suffolk – New York. Although our Head Office will be located in Nassau-Suffolk – New York, but we will open our branch offices in major cities in the United States within our first five years of operation.
We will work hard to ensure we have active presence in the following locations; Albany-Schenectady-Troy, New York, Vallejo-Fairfield-Napa, California, Fort Myers-Cape Coral, Florida, Middlesex-Somerset- Hunterdon, New Jersey, Tampa-St. Petersburg-Clearwater, Florida and Fort Lauderdale- Hollywood-Pompano Beach, Florida.
Beth Seychelles® Fence Construction Company will engage in construction of a wide range of fences, including residential fences, security fences and niche fences; we will make use of a variety of materials like metal, wood, plastic and concrete for residential, commercial, institutional and industrial building markets.
We will work towards becoming one of the largest fencing companies in the United States of America with active presence in major cities.
As part of our plans to make our customers our number one priority and to become one of the leading fencing companies in the United States of America, we have perfected plans to adopt international best practices in the industry.
Beth Seychelles® Fence Construction Company have overtime perfected plans that will help us to become the go to fencing company in the cities we operate in.
Beth Seychelles® Fence Construction Company 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 client’s needs precisely and completely.
Beth Seychelles® Fence Construction Company is owned by Engr. Beth Seychelles and his immediate family members. Engr. Seychelles has a Degree in Building Engineering and had worked with top construction and fencing companies in the United States of America for many years prior to starting his own business.
3. Our Products and Services
Beth Seychelles® Fence Construction Company is going to offer lots of services within the scope of the fence construction industry in the United States of America. Our intention of starting our fencing company is to favorably contest with foremost players in the industry. Our business offerings are thus;
- Installing residential fences
- Installing nonresidential fences
- Installing agricultural fences
- Installing security fences
- Installing non – building fences
- Related consultancy and advisory services
4. Our Mission and Vision Statement
- Our vision is to become one of the top 5 fencing companies in the United States of America within the first 10 years of starting Beth Seychelles® Fence Construction Company.
- Our mission and values are to help people, farmers, businesses, home and property owners in the United States of America to handle all their fence construction contracts.
Our Business Structure
Our company’s structure is not entirely different from what is obtainable in the industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our fencing company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
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 five years or more depending how fast we meet our target.
Beth Seychelles® Fence Construction Company is fully aware of the modus operandi in the industry, hence adequate provision and competitive packages has been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure. Below is the business structure we will build Beth Seychelles® Fence Construction Company on;
- Chief Executive Officer
- Project Manager
- Admin and HR Manager
- Fence Construction Engineers
- Business Developer/Sales and Marketing
- Customer Service Executive/Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (President):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives
- Produces, connects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for the planning, management and coordinating all projects on behalf of the company
- Oversees fencing projects
- Ensures compliance during project executions
- Provides advice on the management of projects
- Responsible for carrying out risk assessment
- Uses IT systems and software to keep track of people and progress of ongoing projects
- Responsible for overseeing the accounting, costing and billing of every project
- Represents the organization’s interest at various stakeholders’ meetings
- Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
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.
- Outlines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Accountable for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Fence Construction Engineers
- In charge of handling construction of a wide range of fences, including residential fences, security fences and niche fences by making use of a variety of materials
- Establishes and enforces company’s engineering and construction standards
- Ensures that fence construction work / projects carried out by us meets or exceeds standards within a designated geographic area.
- Offers overall direction on assigned fence construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.
Marketing and Sales Executive/Business Developer
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects
- Responsible for financial forecasting and risks analysis.
- In charge of developing and managing financial systems and policies
- Accountable for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Front Desk/Customer’s Service Officer
- Receives Visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distributes mails in the organization
- 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 line manager in an effective and timely manner
6. SWOT Analysis
Starting a fence construction business in the United States of America comes with its own fair share of challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the industry who also are interested in making a living and building a business in the US.
In order to contend favorably in the fence construction industry as a fencing company, we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical a SWOT analysis. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Beth Seychelles® Fence Construction Company;
Some of the strengths that we will be bringing to the table in the fence construction industry is our robust relations with construction giants, homeowners and property investment moguls in the United States. We have access to funding and also have a team of experts who have cut their teeth in the fence construction industry.
As a newbie in the fence construction line of business, we might have some challenges competing with big time construction companies and other fence construction companies that have been in the industry for many years; that perhaps is part of our weakness.
The opportunities in the industry especially as a fencing company is massive considering the number of home owners who have the financial capacity to renovate their homes and change their fences as at when due. We are well – positioned and ready to take advantage of any opportunity that comes our way.
Some of the threats that we are likely going to face as a fencing company are unfavorable government policies, and global economic downturn; global economic downturn usually affects spending power and the real estate industry is known to encounter decline in sales during this period.
There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
The market trends in the industry are that there are no fixed profit projections when engaging in a fence construction deals.
The profit you stand to gain depends on loads of factors amongst which are your attention to details, ability to source for affordable and quality fencing materials. If you are able to get all the above stated factors, your gains will always be far more than your loss.
Another obvious trend that is common with fence construction companies is that most of them are improvising on more means of making money, and as a matter of fact, they are also involved in some form of building renovation works.
Interestingly, growth has been underpinned by low interest rates and sustained demand for new single-family homes. Industry operators have benefited from the recent rebound in home prices and revenue is expected to grow due to rising demand from homeowners and developers.
Lastly, external factors such as housing and value of private nonresidential construction will impact performance in the Fence Construction industry.
One thing is certain for every fencing company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from the business.
8. Our Target Market
As a fencing company, our target market cuts across people (home and facility owners) of different class. We are coming into the industry with a business concept that will enable us work with highly – placed people in the country as well as lowly placed people who are only interested in fencing their homes at an affordable price.
As a matter of fact, our target market is the whole of the United States of America and we have put plans in place to recruit freelance agents to represent our business interest wherever they are located in the United States of America. Below is a list of the people and organizations that we have specifically designed our products and services for;
- Families who are interested in constructing fences for their home
- Corporate organizations that are interested in installing security fences in their properties
- Farmers who are interested in installing agricultural fences in their farms
- Security companies
- The government of the United States of America (Government contracts)
- Managers of public facilities who would want to engage fence construction companies to help them construct fence for their facility.
Our competitive advantage
The fence construction industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can help them construct fences that will help them secure their homes.
Beth Seychelles® Fence Construction Company might be a new fencing company, but we can boast of having links with suppliers, ability to expand and curtail operations rapidly in line with market demand and access to niche markets. Plus our management team are gurus in the industry, who have what it takes to grow a business from scratch to become a top brand within the shortest time possible.
Aside from the robust experience and expertise of our experts, we have a very strong online presence that will enable us attract clients from all across the United States of America.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Beth Seychelles® Fence Construction Company is established with the aim of maximizing profits in the industry. We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Beth Seychelles® Fence Construction Company;
- Installing residential fences
- Installing nonresidential fences
- Installing agricultural fences
- Installing security fences
- Installing non – building fences
- Related consultancy and advisory services
10. Sales Forecast
It is a known fact that as long as there are homeowners in the United States of America, there will always be need to for them to construct or reconstruct from time to time to conform with the trends in the neighborhood or city.
We are well positioned to take on the challenges that are synonymous to fence construction businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough income from our first month of operation and grow the business beyond Nassau-Suffolk – New York to other states in the United States of America within record time.
We have been able to examine the real estate market cum fence construction business, 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 projections for Beth Seychelles® Fence Construction Company. It is based on the location of our business and the fence construction and related services that we will be offering;
- First Fiscal Year: $400,000
- Second Fiscal Year: $650,000
- Third Fiscal Year: $1.2 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 any major competitor offering same services as we do within the locations where we have a strong business presence.
Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.
- Marketing Strategy and Sales Strategy
We are quite mindful of the fact that there are stiff competitions in the industry, hence we have been able to hire some of the best business developers to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained to meet their targets and the overall goal of the organization.
The training is not restricted to only our full – time employees but also includes our freelance brokers that are scattered all over the country. Beth Seychelles® Fence Construction Company is set to make use of the following marketing and sales strategies;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the construction cum real estate industry, farmers and also property owners throughout the United States of America
- Promptness in bidding for fence construction contracts
- Advertise our business in real estate magazines and websites
- List our business on yellow pages (local directories)
- Attend real estate related expos, seminars, and business fairs et al
- Create different packages for different categories of clients in order to successfully install any type of fencing in their homes/properties
- Leverage on the internet (social media platforms) and our official website to promote our business
- Encourage word of mouth marketing especially when we have a home for sale.
11. Publicity and Advertising Strategy
We have been able to work with our consultants to map out publicity and advertising strategies that will help us walk our way into the hearts of our target market.
We are set to take the fence construction industry by storm which is why we have made provisions for the effective publicity and advertisement of our company. Below are the platforms we intend to leverage on to promote our fence construction business;
- Place adverts on both print and electronic media platforms
- Place our flexi banners with our company’s logo and contacts in every property we handle
- Sponsor relevant TV shows so as to communicate our brand and what we do
- Maximize our company’s website to promote our business
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business.
- Install our billboards in strategic locations all around Nassau-Suffolk – New York
- Distribute our fliers and handbills in targeted areas from time to time
- Attend landlord and resident association meetings with the aim of networking and introducing our business.
- Ensure that all our workers wear our branded shirts and all our vehicles and trucks are branded with our company’s logo.
12. Our Pricing Strategy
Part of our business strategy is to ensure that we work within the budget of our potential clients to help them construct fences to meet their expectations.
Since we are not directly in control of the pricing system in the real estate industry (building materials et al) we can only abide by what is obtainable when it comes to fixing a price for a fence construction contract. But one thing is certain, we will ensure that we deliver excellent jobs when have we are contracted to do so.
Lastly, we will ensure that we keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. We will also offer special discounted rates to our clients from time to time especially when they recommend clients to us.
- Payment Options
At Beth Seychelles® Fence Construction Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Here are the payment options that Beth Seychelles® Fence Construction Company will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will help us achieve our plans without any hitches and we will also pay our freelance sales agents with same platforms. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Having done our due diligence, this is what it would cost us to set up Beth Seychelles® Fence Construction Company in the United States of America;
- The total fee for incorporating the business in The United States of America – $750.
- The budget for permits and license – $2,000
- The cost for hiring Consultant – $2,500.
- The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro) – $7,000
- The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
- The cost for payment of rent for a suitable Office facility with enough space in Nassau-Suffolk – New York for 12 months at $1.76 per square feet in the total amount of – $105,600.
- The cost for office remodeling (construction of racks and shelves) – $20,000.
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500)
- Purchase of working tools and equipment – $60,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost of launching our official Website – $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000
Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a small scale but standard fencing company in the United States of America.
Generating Startup Capital for Beth Seychelles® Fence Construction Company
Beth Seychelles® Fence Construction Company is a business that will be owned and managed by Beth Seychelles and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank.
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the volume and competence of their 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 closes shop.
One of our major goals of starting Beth Seychelles® Fence Construction Company 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 offer our fence construction services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Beth Seychelles® Fence Construction Company 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 Incorporation: Completed
- Opening of Corporate Bank 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
- Renting of Office Facility and remodeling the facility in Nassau-Suffolk – New York: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from the CEO / President and Business Partners: Completed
- Applications for Loan from our Bankers: 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: Completed
- Recruitment of employees: In Progress
- Purchase of the needed working tools and equipment, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (real estate bodies, construction giants and building materials dealers): In Progress