Are you about starting a painting business? If YES, here is a complete sample painting business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a painting business. We also took it further by analyzing and drafting a sample painting marketing plan template backed up by actionable guerrilla marketing ideas for painting businesses. So let’s proceed to the business planning section.
As an aspiring entrepreneur who is looking for a thriving business to start, one the business opportunities that can guarantee you steady income is a painting business.
In the united states of America and in most countries in Europe, you may notice that a good percentage of homes and offices paint their facilities on a regular basis. This goes to show that there is indeed a large market for the painting business.
The Painting business can be learnt within a few months especially if you know how to pay attention to details. If you are actually convinced that starting a painting company is the right business for you, then you need to write your own business plan.
The essence of writing a business plan before starting any business is for you to have a roadmap and a blueprint of how you want to setup, manage and expand your business. Below is a sample painting company business plan template that will help you successfully write yours with little or no stress.
A Sample Painting Company Business Plan Template
1. Industry Overview
The painters industry comprises of various niches such as construction and industrial painters amongst others. What construction cum industrial painters do is to apply paint, special coatings, and wallpaper to various internal as well as external surfaces for protection, cleanliness or beautification.
Industry painters offer services to a wide range of customers that cut across residential, commercial, industrial and municipal building markets as well as for infrastructure projects like roads, bridges and stadiums et al. Painters are sometimes contracted to paint ships but not automobile and aircraft.
On the average, a standard painting business offers services such as bridge painting, painting of buildings or other structures, paper hanging for the purpose of beautification, spray painting buildings or other structures, wallpapering, house/residential painting, rustproofing (excluding automotive), paint and wallpaper removal, and whitewashing. Painting or coating provides two primary functions; decoration and protection.
If you are a close watcher of the Painters industry, you will agree that the industry’s foundation shook as the housing bubble burst, with several factors contributing to discourage consumers from spending on home improvements such as painting.
Experts projected that the Painters industry recovery will be driven by improvements in employment and per capita disposable income.
In the United States and in most countries of the world, home prices are expected to continue to raise, facilitating growth in demand for painters industry services because homeowners often leverage the value of their homes through loans to fund remodeling projects.
The Bureau of Labor Statistics (United States of America) projects 11.1 percent job growth for the real estate industry between 2012 and 2022, which is about as fast as average. During that time, an additional 38,000 jobs will open up in the industry.
Hence any painting company that is well equipped and positioned will rake in huge revenues from this industry within this period and of course the future is bright.
Statistics has it that in the United States of America alone, there are about 323,194 registered and licensed painting companies responsible for employing about 503,130 people and the industry rakes in a whooping sum of $43 billion annually.
The industry is projected to grow at a 4.2 percent annual growth within 2014 and 2019. It is important to state that there are no establishments in this industry that has a lion market share.
A recent report published shows that the Painters industry is very labor-oriented, as it relies on employees to carry out most industry activities. Therefore, the industry requires a low level of capital investment and instead allocates much of its cost structure to labor payments, which accounts for 23.1 percent of revenue. Purchases account for 56.9 percent of industry revenue.
The report further stated that these costs are largely related to materials, components and supplies used during service requests as well as the costs associated with contracting work out to third-party subcontractors. Depreciation absorbs only 1.0 percent of industry revenue, and capital purchases are largely limited to vehicles and computers used in sales offices.
Lastly, as a professional painter, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a shanty town property or facility into a beautiful edifice if indeed you want to become a major player in the industry.
2. Executive Summary
Jim De Rosa® Painting Company, LLC is a construction painting company that is incorporated under the law of the United States of America.
Our head office will be located in a standard and centrally located office facility in the heart of Newark – New Jersey. Although our Head Office will be located in Newark – New Jersey, but we will open our branch offices in major cities in all regions of the United States of America.
Within the first two years of operation, we would have set up our offices in the following locations; New York City, Los Angeles, Florida, North Dakota, Boston, Dallas and Washington.
Jim De Rosa® Painting Company, LLC will engage in industrial and commercial painting services such as bridge painting, painting of buildings or other structures, paper hanging for the purpose of beautification, spray painting buildings or other structures, rustproofing (excluding automotive), paint and wallpaper removal, and whitewashing.
We will work towards becoming one of the largest painting 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 painting companies in the United States of America, we have perfected plans to adopt international best practices.
Jim De Rosa® Painting Company, LLC 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.
Jim De Rosa® Painting Company, LLC will be owned by Jim De Rosa and his immediate family members. Jim De Rosa has a Degree in Fine Arts and he has over 13 years’ experience as a professional painter working for one of the leading property development companies in the United States of America.
3. Our Products and Services
Jim De Rosa® Painting Company, LLC is going to offer varieties of services within the scope of the Painters industry in the United States of America. Our intention of starting our painting company is to favorably compete with leading players in the industry in the United States of America.
We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals. Our business offerings are listed below;
- General residential painting
- General nonresidential painting
- Paper hanging, wall covering and removal
- Non building painting
- Other related services
4. Our Mission and Vision Statement
- Our vision is to become one of the top 10 painting companies in the United States of America within the first 10 years of starting Jim De Rosa® Painting Company, LLC.
- Our mission and values are to help people, businesses and property owners in the United States of America paint their homes to fit into the ideal mental pictures they have of how a world – class home should be and to also paint other public structures to fit into the plan of the government.
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 painting 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 our 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 set target. Jim De Rosa® Painting Company, LLC is fully aware of the modus operandi in the painting industry, hence adequate provision and competitive packages have been prepared for independent sales agents.
Our marketing department will be responsible for managing this aspect of our business. Below is the business structure we will build Jim De Rosa® Painting Company, LLC on;
- Manager (Owner)
- Project Manager
- Admin and HR Manager
- Professional Painters
- Business Developer/Sales and Marketing
- Customer Service Executive / Front Desk Officer
5. Job Roles and Responsibilities
- 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
- Creating, communicating, 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 fixing prices and signing business deals
- Responsible for providing direction for the business
- Creating, communicating, 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
- Responsible for the planning, management and coordinating all projects on behalf of the company
- Supervise painting projects
- Ensure compliance during project executions
- Providing advice on the management of projects
- Responsible for carrying out risk assessment
- Responsible for overseeing the accounting, costing and billing of every project
- 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
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- 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.
- Defining job positions for recruitment and managing interviewing process
- Carrying 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.
- Read blueprints/instructions and examine surfaces to determine the kind and amount of work necessary
- Make on-site preparations such as building scaffolding, covering fixtures etc.
- Prepare walls and other surfaces for painting by scraping, using sandpaper, removing old paint etc.
- Fill cracks and holes with appropriate material (e.g. plaster)
- Mix paint and other materials to prepare the right color or texture
- Paint surfaces according to instructions with various tools
- Apply varnish and other finishes
- Take and adhere to all health and safety precautions.
Marketing and Sales Executive/Business Developer
- Identify, prioritize, and reach 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
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports
- 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
- Ensuring 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
- Distribute mails in the organization
- Ensures that all contacts with clients (e-mail, 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 services
- Manages administrative duties assigned by the line manager in an effective and timely manner
6. SWOT Analysis
The fact that painting business is a very rewarding business does not mean that there are no challenges in the industry. Starting a painting 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 real estate business value chain who also are interested in making a living and building a business in the US.
In order to compete favorably in the industry as a painting company we have been able to hire the services of tested and trusted business consultant to help us conduct critical SWOT analysis for us. Here is a summary from the SWOT analysis that was conducted on behalf of Jim De Rosa® Painting Company, LLC;
Some of our strengths that we will be bringing to the table in the Painters industry is our robust relations with works departments, homeowners and property investment moguls in the whole of the United States of America. We have a team of experts who have cut their teeth in the commercial painting line of business.
Our commission structure and relationship with freelance real estate agents in Newark – New Jersey and other states in the US will also count towards our advantage.
As a newbie in the Painters industry, we might have some challenges competing with big time property developers and other painting companies that have been in the industry for many years; that perhaps is part of our weakness.
The opportunities in the Painters industry especially as a painting company is massive considering the numbers of home owners who have the financial capacity to renovate their homes as at when due and government painting contracts in the United States. 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 painting company are unfavorable government policies, and global economic downturn; global economic downturn usually affects spending power and the real estate industry cum painting business is known to encounter decline in sales and profits during this period.
7. MARKET ANALYSIS
- Market Trends
As a result of real estate growth and expansion, demand for industry services across several construction markets has significantly expanded over the five years to 2019. The residential market, a key source of industry revenue, has been especially supportive.
Furthermore, activity in nonresidential construction sectors has also grown, further widening demand for industry services. Over the five years to 2019, broad improvements in the US economy facilitated strong growth in the housing market. During the period, housing stats increased at an annualized rate of 6.2 percent.
Another obvious trend that is common with painting companies in the United States of America is that most of them are making use of health friendly paints hence the production and usage or insect repellent paints.
Lastly, one thing is certain for every painting 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 all projects that they are involved in.
8. Our Target Market
As a painting company, our target market cuts across people (home owners) of different classes and from all walks of life, corporate organizations and the government. We are coming into the Painters industry with a business concept that will enable us work with a wide range of clientele.
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 (brokers) nationally 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 services for;
- Corporate organizations who are interested in acquiring their own property / properties
- Home Owners who are interested in remodeling, painting and selling off their home
- Properties Owners who are interested in remodeling, painting and selling off their properties
- Foreign investors who are interested in owning properties in the United States of America and remodeling and painting the property
- The government of the United States of America (Government contracts)
- Managers of public facilities who would want to engage painting companies to help them paint properties under their care.
Our competitive advantage
The Painters industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can paint their homes to fit into the picture of the ideal home they have in mind. We are quite aware that to be highly competitive in the industry means that you should be able to deliver consistent quality painting jobs and you should be able to meet the expectations of your clients at all times.
Jim De Rosa® Painting Company, LLC might be a new painting company in the Painters industry, but our management team and the owner of the business are professional who have what it takes to grow a business from scratch to become a top brand within the shortest time possible. This is what will count as a competitive advantage for us.
Aside from our robust experience and the expertise of our team of 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 achieve all our business aims and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.
9. SALES AND MARKETING STRATEGY
We mindful of the fact that there are stiff competitions in the painting market in the United States of America, 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 experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also our freelance brokers that are scattered all over the United States of America.
Our goal is to become one of the leading painting companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry. Jim De Rosa® Painting Company, LLC is set to make use of the following marketing and sales strategies;
- Introduce our business by sending introductory letters alongside our brochure to stakeholders in the real estate industry, government public works department, also property owners and potential clients in the United States of America
- Promptness in bidding for painting contracts
- Advertise our business in real estate/property 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 category of clients in order to successfully paint their homes / properties
- Leverage on the internet (social media platforms) and our official website to promote our business
- Encourage word of mouth marketing.
Sources of Income
Jim De Rosa® Painting Company, LLC is established with the aim of maximizing profits in the Painters 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 Jim De Rosa® Painting Company, LLC;
- General residential painting
- General nonresidential painting
- Paper hanging, wall covering and removal
- Nonbuilding painting
- Other related services
10. Sales Forecast
It is a known fact that as long as there are facilities and home owners in the United States of America, there will always be need to for them to remodel their homes from time to time to conform with the trends in the neighborhood or city. Hence the demand for the services of painting companies to help them solve these needs.
We are well positioned to take on the challenges that are synonymous to painting businesses in the United States, and we are quite optimistic that we will meet our set target of generating enough income/profits from our first month of operation and grow the business beyond New Jersey to other states in the United States of America within record time.
We have been able to examine the painting line of business, 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 peculiar to similar startups in New Jersey.
Below are the sales projections for Jim De Rosa® Painting Company, LLC it is based on the location of our business and the painting and related services we will be offering;
- First Fiscal Year (FY1): $200,000
- Second Fiscal Year (FY2): $500,000
- Third Fiscal Year (FY3): $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.
11. Publicity and Advertising Strategy
We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the Painters industry by storm which is why we have made provisions for effective publicity and advertisement of our company. Below are the platforms we intend to leverage on to promote and advertise our painting 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 are painting
- Sponsor relevant TV shows so as to be able 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
- Distribute our fliers and handbills in targeted areas from time to time
- Attend landlord and residence association meetings with the aim of networking and introducing our business.
- Ensure that all our workers wear our branded shirts and all our vehicles 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 paint their homes and facilities to meet their expectations. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.
Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable when it comes to fixing the price for a painting 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. In addition, we will also offer special discounted rates to our clients from time to time especially when they recommend clients to us.
- Payment Options
At Jim De Rosa® Painting Company, LLC 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 Jim De Rosa® Painting Company, LLC 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 itches and we will also pay our freelance sales agents with same platforms.
13. Startup Expenditure (Budget)
This is what it would cost us to set up Jim De Rosa® Painting Company, LLC 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, QuickBooks Pro) – $7,000
- The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
- Cost for payment of rent for a suitable office facility with enough space in Newark – New Jersey for 12 month 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
- The cost for the purchase of painting equipment and accessories – $30,000
- 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 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 painting company in the United States of America.
Generating Startup Capital for Jim De Rosa® Painting Company, LLC
Jim De Rosa® Painting Company, LLC will be owned and managed by Jim De Rosa, his immediate family members and other business partners. They decided to restrict the sourcing of the start up capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of 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 (loan facility).
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 capacity 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 Jim De Rosa® Painting Company, LLC 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 painting 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.
Jim De Rosa® Painting Company, LLC 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.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. 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 and 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 Newark – New Jersey: 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 painting equipment and accessories, furniture, office equipment and electronic appliances: 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 (networking and membership of government contractor’s association): In Progress