Are you about starting a spray foam insulation business? If YES, here is a complete sample spray foam insulation business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a spray foam insulation business. We also took it further by analyzing and drafting a sample spray foam insulation marketing plan template backed up by actionable guerrilla marketing ideas for spray foam insulation companies. So let’s proceed to the business planning section.
Why Start a Spray Foam Insulation Business?
As an investor who is looking for good returns on your investment, one of the business opportunities that can guarantee you that is to start your own spray foam insulation installation company.
In the United States of America and in most countries in Europe, you may notice that a good percentage of homes and offices have spray foam insulation installed in their facility. This goes to show that there is indeed a large market for spray foam insulation installation business. Spray foam insulation installation howbeit technical is a business that can be learnt in a few months especially if you have the technical background.
To start this business, you need to write your own business plan. The essence of writing a business plan is for you to have a roadmap of how you would want to setup, manage and expand your business. Below is a sample spray foam insulation installation company business plan template that will help you successfully write yours with little or no stress.
A Sample Spray Foam Insulation Installation Company Business Plan Template
- Industry Overview
Spray foam insulation installation business is a subset of the Insulation Contractors industry and the industry is made up of establishments that install insulation products for buildings.
Spray foam insulation is a highly suitable substitute for old-fashioned insulation materials, such as glass and metal. Spray foam insulation is usually installed in new builds, renovations, and retrofits. Spray foam insulation includes open cell and closed cell foam insulation.
Open cell insulation is a lightweight foam that stays soft and flexible. Closed cell spray foam is a high density product and becomes hard and durable when cured. It is a more expensive product that also serves as a moisture barrier. It is more suitable for basements and under-grade applications, as compared to open cell foam.
In recent time, the industry has very moderate barriers to entry. You will also notice that the number of private spending on home improvements and the value of private nonresidential construction are all projected to increase, bolstering demand for industry services.
Over the five years to 2023, insulation contractors will likely benefit from continued improvements across downstream building markets, including home builders, apartment construction, industrial construction, commercial construction and apartment rentals.
Statistics has it that in the United States of America alone, there are about 22,908 registered and licensed spray foam insulation installation companies responsible for employing about 67,318 people and the industry rakes in a whooping sum of $9 billion annually. The industry is projected to grow at 4.6 percent annually within 2013 and 2018. It is important to state that there are no establishments in this industry with a lion market share.
A recent report published by IBISWORLD shows that the Insulation Contractors industry is characterized by a low level of capital intensity. In 2018, IBISWorld estimates that for every dollar spent on wages, industry operators will spend $0.02 on capital investment. As insulation contracting is service-oriented, major capital costs are minimal.
The industry’s level of capital intensity has remained steady over the past five years. Industry operators invest primarily in small depreciable tools and materials such as utility saws, knives, trowels, straps, tapes, tubing, tool bags and other minor parts. The costs of insulation contractors pertain to labor expenses. Industry operators typically employ a small team of laborers or are self-employed.
Some of the factors that encourage entrepreneurs to start their own company could be that the business is highly profitable, and it can be started with minimal capital and of course minimal full – time employees. The Insulation Contractors industry is highly regulated in the United States of America and anyone who aspires to start the business must obtain a license.
Spray Foam Insulation Business Plan – Executive Summary
Brent Allister© Insulation Contractor, Inc. is a licensed insulator contractor company that will major on spray foam insulation installations. Our head office will be located in an office facility in the heart of Newark – New Jersey. Although our Head Office will be located in New Jersey, but we will open our branch offices in major cities in all regions of the United States of America.
Within the first twelve years of operation, we would have set up our offices in the following locations; Suburban Maryland-D.C., Maryland, Orlando, Florida, Phoenix, Arizona, Washington MSA, District of Columbia, Tampa-St. Petersburg-Clearwater, Florida, San Diego, California, Nassau-Suffolk, New York, Richmond-Petersburg, Virginia and New Orleans, Louisiana.
Brent Allister© Insulation Contractor, Inc. will install insulation spray foam and other products such as fiberglass, polyisocyanurate, mineral wool, polystyrene and alternative insulation materials for residential, commercial, institutional and industrial buildings. We will work towards becoming one of the largest spray foam insulation installation companies in the United States of America.
As part of our plans to become one of the leading spray foam insulation installation companies in the United States of America, we have perfected plans to adopt international best practices in the industry. Brent Allister© Insulation Contractor has overtime perfected plans that will help us walk into the hearts of residents and businesses in the location where we operate.
Brent Allister© Insulation Contractor, 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 client’s needs precisely and completely.
Brent Allister© Insulation Contractor, Inc. is owned by Engr. Brent Allister. He has a Degree in Civil Engineering from Princeton University (summa cum laude). Born in Albuquerque, New Mexico, Brent and his family moved to Miami when he was a teenager.
While in high school, Brent launched his first business. He has worked with top spray foam insulation installation companies in the United States of America for many years prior to starting Brent Allister© Insulation Contractor, Inc.
- Our Product and Services Offerings
Brent Allister© Insulation Contractor, Inc. is going to offer varieties of services within the scope of the industry. We are well 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, aim and ambition. Our business offerings are listed below;
- Wall cavity and attic space insulation installation
- Exterior insulation finish system installation
- Roof insulation installation
- Foam, panel, mineral wool, glass fiber, polystyrene board and urethane foam installation
Our Vision Statement
Our vision is to become one of the top 5 spray foam insulation installation companies in the United States of America within the first 12 years of starting Brent Allister© Insulation Contractor, Inc.
- Our Mission Statement
Our mission and values are to help people, home owners, property owners and clients in the United States of America to handle all their spray foam insulation installation and other related insulation installation contracts.
Our Business Structure
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 spray foam insulation installation 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 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 depending how fast we meet our set target.
Brent Allister© Insulation Contractor, Inc. is fully aware of the modus operandi in the industry hence competitive packages has been prepared for independent contractors. Our marketing department will be responsible for managing this aspect of our business structure. Below is the business structure we will build Brent Allister© Insulation Contractor, Inc. on;
- Chief Executive Officer
- Project Manager
- Admin and HR Manager
- Spray Insulation Installers/Technicians
- Business Developer
- Customer Service Executive/Front Desk Officer
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, and appraising job results and developing incentives
- 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.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Accountable for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
- Responsible for the planning, management and coordinating all projects on behalf of the company
- Supervises spray foam and other insulation installation projects
- Ensures compliance during project executions
- Provides advice on the management of projects
- Responsible for carrying out risk assessment
- 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
- Designs job descriptions with KPI to drive performance management for clients
- 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.
Spray Foam Installer/Technicians
- Responsible for handling wall cavity and attic space insulation installation, exterior insulation finish system installation, roof insulation installation and foam, panel, mineral wool, glass fiber, polystyrene board and urethane foam installation
- Establishes and enforces company’s engineering and construction standards
- Ensures that spray foam insulation that are installed meet standards within a designated geographic area.
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Accountable 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 for one or more properties.
- Accountable for developing and managing financial systems and policies
- Responsible 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
Spray Foam Insulation Business Plan – SWOT Analysis
Starting a spray foam insulation installation 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 other entrepreneurs who also are interested in making a living and building a business in the US.
In order to compete favorably in the Insulation Contractors industry as a spray foam insulation installation company we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Brent Allister© Insulation Contractor, Inc.;
Some of our strengths which we will be bringing to the table is our robust relations with construction giants, home owners and properties investment moguls in the United States. Also, our management team are people who have what it takes to grow a business in a short period of time.
As a newbie in the industry, we might have some challenges competing with big time spray foam insulation installation companies that have been in the industry for many years; that perhaps is part of our weakness.
The opportunities in the construction cum real estate industry especially as a spray foam insulation installation company is massive considering the numbers of home owners who are now leveraging on green energy. We are well – positioned to take advantage of any opportunity that comes our way.
Some of the threats that we are likely going to face as a spray foam insulation installation company are unfavorable government policies, and global economic downturn. 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.
Spray Foam Insulation Business Plan – MARKET ANALYSIS
- Market Trends
If you are conversant with green energy and energy cost cutting, you will notice that household and businesses are now switching to the use of spray foam insulation hence the booming demand for spray foam insulation is directly correlated with the recent surge in potential homeowners opting for high-performing environment friendly technologies for their homes.
The use of green technologies has also been incorporated into commercial construction and office buildings to reduce energy consumption and increase appeal among consumers. New developments in the market are countering problems regarding applications.
This will be one of the major drivers of the spray foam insulation market. The demand for spray foam insulation will be driven by building improvements and upgrades, coupled with increasing construction activities in the United States of America. This goes to show that the market for spray foam insulation installation in the United States is on the rise.
Another obvious trend is that government authorities are in the fore front of promoting energy efficiency and the demand for spray foam insulation will also rise in government construction projects. Rising middle class population in emerging markets is also anticipated to fuel the demand for spray foam insulation for various applications such as in roofing.
In developed countries, demand will stem mainly from refurbishment of commercial and residential buildings following a few years of decline. Fire regulations will comprise a key restraint for the spray foam insulation market. There are issues related to thickness and application of spray foam that mostly depend on installers, however spray foam problems are generally less frequent and easier to overcome with proper planning and application.
One thing that is common with spray foam insulation installation companies in the United States of America is that most of them are involved in all aspects of insulation installations. One thing is certain for every spray foam insulation installation 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.
- Our Target Market
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 installing spray form insulation for their home
- Corporate organizations who are interested in installing spray foam insulation in their properties
- Hotels, motels, inns and hostels et al who are interested in installing spray foam insulation in their facility
- The government of the United States of America (Government contracts)
The Insulation Contractors industry is indeed a highly competitive industry especially in the United States of America. Clients will only hire your services if they know that you can successfully help them install spray foam insulation.
We are quite aware that to be highly competitive in the Insulation Contractors industry means that you should be able to deliver consistent quality jobs and you should be able to meet the expectations of your clients at all times.
Brent Allister© Insulation Contractor, Inc. might be a new spray foam insulation installation company, but the management team of the business are professionals who have what it takes to grow a business. These are part of what will count 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. 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.
Spray Foam Insulation Business Plan – SALES AND MARKETING STRATEGY
Spray foam insulation uses less wall space when compared with other materials. It meets codes and completely fills the wall, hence saving energy and money. Spray foam solutions reduce repair and maintenance costs over time for a variety of infrastructure.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of the organization.
Our goal is to become one of the leading spray foam insulation installation 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.
Brent Allister© Insulation Contractor, Inc. 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 and also property owners and potential clients throughout the United States of America
- Promptness in bidding for spray foam insulation installation contracts
- Advertise our business in real estate / properties magazines and websites
- List our business on yellow pages (local directories)
- Attend real estate related expos, seminars, and business fairs et al
- Leverage on the internet (social media platforms) and our official website to promote our business
- Encourage word of mouth marketing
Sources of Income
Brent Allister© Insulation Contractor, Inc. 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. Below are the sources we intend exploring to generate income for Brent Allister© Insulation Contractor, Inc.;
- Wall cavity and attic space insulation installation
- Exterior insulation finish system installation
- Roof insulation installation
- Foam, panel, mineral wool, glass fiber, polystyrene board and urethane foam installation
As long as there are home owners and facilities in the United States of America, there will always be need to for them to cut energy cost and install spray foam insulation, hence the demand for the services of spray foam insulation installation companies.
We are well positioned to take on the challenges that are synonymous to spray foam insulation installation businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough income / profits from our first month and grow the business beyond Newark – New Jersey to other states in the United States of America.
Below are the sales projections for Brent Allister© Insulation Contractor, Inc. it is based on the location of our business and the spray foam insulation installation and related services within the Insulation Contractors industry that we will be offering;
- First Fiscal Year: $350,000
- Second Fiscal Year: $750,000
- Third Fiscal Year: $1.250 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.
- Our Pricing Strategy
Part of our business strategy is to ensure that we work within the budget of our potential clients to help them install any type of insulation in their homes.
Since we are not directly in control of the pricing system in the industry, we can only abide by what is obtainable when it comes to fixing a price for a spray foam insulation installation 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 Brent Allister© Insulation Contractor, Inc. 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 Brent Allister© Insulation Contractor, Inc. 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.
Spray Foam Insulation Business Plan – 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 Insulation Contractors 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 spray foam insulation installation business;
- Place adverts on both print and electronic media platforms
- Place our flexi banners with our company’s logo and contacts in and around construction sites and estates
- Sponsor relevant TV shows so as to be able to communicate our brand
- 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 Newark
- 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 and trucks are well branded with our company’s logo
Spray Foam Insulation Business Plan – Financial Projections and Costing
This is what it would cost us to set up Brent Allister© Insulation Contractor, Inc. 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.
- Cost for payment of rent for a suitable Office facility with enough space in Newark – New Jersey for 12 months at $1.76 per square feet in the total amount of – $95,300.
- 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)
- The cost for the purchase of working tools and equipment – $60,000
- The cost for the purchase of truck – $20,000
- 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 three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a small scale but standard spray foam insulation installation company in the United States of America.
Generating Startup Capital for Brent Allister© Insulation Contractor, Inc.
Brent Allister© Insulation Contractor, Inc. is owned and managed by Brent Allister. He has 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 (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 $250,000 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.
SPRAY FOAM INSULATION BUSINESS GROWTH: 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 close shop.
One of our major goals of starting Brent Allister© Insulation Contractor, 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 offer our spray foam insulation installation 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.
Brent Allister© Insulation Contractor, 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 Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: 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: 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 (networking and membership of relevant real estate bodies and construction giants): In Progress