Do you want to start a tiles production company? If YES, here is a detailed sample tiles manufacturing business plan template & FREE feasibility report. Depending on the location you intend starting your business, one of the businesses that we will advice that you start if you are in and around a city where the real estate cum construction market is booming is a tiles manufacturing business. Below is a sample tile manufacturing company business plan template that will help you launch your own business.
A Sample Tiles Manufacturing Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Tiles manufacturing business is part of the clay brick and product manufacturing industry and players in this industry primarily manufacture tiles, ceramic paving, pipes and conduits. Please note that the industry excludes the manufacturing of artificial stone such as cultured marble, tiles made into stands or other ornamental articles.
The Brick and Tile manufacturing industry produces clay bricks and tiles for use in the downstream building and construction markets. The Clay Brick and Tiles Manufacturing industry in the US is the 156th ranked Manufacturing industry by market size and the 587th largest in the US.
Statistics has it that in the united states of America alone, there are about 603 registered and licensed clay bricks and tiles manufacturing companies responsible for employing about 24,110 people and the industry rakes in a whooping sum of $6.3 billion annually.
The industry grew at 0.9 percent annual growth within 2015 and 2022 and the industry is projected to grow at 1.1 percent in 2022. It is important to state that no establishment can boast of having a lion share of the available market in this industry. The market size of the Clay Brick & Product Manufacturing industry in the US grown slower than the economy overall.
Research carried out by IBISWorld shows that the Clay Bricks and Tiles Manufacturing industry has a medium level of market share concentration, with the three largest players generating an estimated 20.6 percent of industry revenue in 2017.
The remainder of the market is captured by a large number of small and medium-scale operators that service relatively narrow geographical markets. However, large-scale players maintain a presence across many regional markets.
The report further stated that over the past five years, ownership concentration within the industry has increased due to acquisition activity in the US building materials market. This involved the acquisition of local and regional players by larger companies seeking to expand their operations, and large foreign owned manufacturing companies hoping to gain a foothold in the US market.
The Clay Bricks and Tiles Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business. You can choose to start on a small scale or you can choose to start on a large scale servicing a wide range of clientele not only in the United States’ market space, but exporting to other countries of the world.
2. Executive Summary
King George® Tiles Manufacturing, Inc. is a standard tiles manufacturing company that will be located in Rapid City – South Dakota. We have been able to lease a facility that is big enough (a 25 thousand square foot facility) to fit into the kind of standard tiles manufacturing company that we intend launching.
King George® Tiles Manufacturing, Inc. will be involved in manufacturing different sizes and shapes of tiles. We are set to service a wide range of clientele in and around Rapid City – South Dakota.
We are aware that there are several tiles manufacturing companies all around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.
King George® Tiles Manufacturing, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
King George® Tiles Manufacturing, Inc. will ensure that all our customers are given first class treatment whenever they visit our factory. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large their numbers may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
King George® Tiles Manufacturing, Inc. is owned by Kingsley George. Mr. George has a Degree in Civil Engineering with over 10 years’ experience in the construction cum clay bricks and tiles manufacturing industry, working for some of the leading brands in the United States.
3. Our Products and Services
King George® Tiles Manufacturing, Inc. is in the Clay Bricks and Tiles Manufacturing industry to service a wide range of clients, which is why we will go all the way to give our clients options. Our product offerings are listed below;
- Ceramic Tile
- Porcelain Tile
- Glass Tile
- Cement Tile
- Marble Tile
- Mosaic Tile
- Granite Tile
- Limestone Tile
- Travertine Tile
- Quarry Tile
- Metal Tile
- Resin Tile
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the Clay Bricks and Tiles Manufacturing industry in the whole of Rapid City –South Dakota.
- Our mission is to establish a world – class tiles manufacturing business whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.
- We want to become the number one choice for building material retailers and construction giants.
Our Business Structure
Our intention of starting a tiles manufacturing company is to build a standard business whose products will be exported to other countries of the world. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Factory Manager
- Human Resources and Admin Manager
- Sales and Marketing Manager
- Tiles Production Machine Operator
- Customer Services Executive/Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- 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
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- 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
- Oversee the smooth running of the daily office activities.
- Responsible for overseeing the smooth running of the factory
- Part of the team that determines the quantity of tiles that are to be produced
- Maps out strategies that will lead to efficiency amongst workers in the factory
- Responsible for training, evaluation and assessment of factory workers
- Ensures that the steady flow of both raw materials to the factory and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the factory meets the expected safety and health standard at all times.
- Control tiles distribution and supply inventory
- Supervise the workforce in the factory
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Tiles Production Machine Operators
- Responsible for operating machines used in the manufacturing of different types of tiles
- Assist in loading and unloading of tiles into trucks meant for delivery.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- 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 organization
- Serves as internal auditor for the organization
Client Service Executive/Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels/documents for the company
- Distribute mails in the organization
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
King George® Tiles Manufacturing, Inc. is in business to become one of the leading tile manufacturing companies in the whole of Rapid City – South Carolina and we are aware that it will take the right business concept, management and organizational structure to achieve our goal.
We are quite aware that there are several tiles manufacturing companies all over the United States of America, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
King George® Tiles Manufacturing, Inc. employed the services of an expert HR and Business Analyst with bias in manufacturing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for King George® Tiles Manufacturing, Inc.;
Our core strength lies in the quality of the different types of tiles that we manufacture, the power of our team and the state of the art tile manufacturing factory that we own. We have a team of highly trained and experienced staff members that can produce strong and durable tiles.
We are well positioned in the heart of Rapid City – South Carolina and we know we will attract loads of clients from the first day we open our tiles manufacturing company for business.
A major weakness that may count against us is the fact that we are a new tile manufacturing company and we don’t have the financial capacity to compete with multi – million dollar companies in the United States. So also, we may not have enough cash reserve to promote our tiles manufacturing company the way we would want to do.
Downstream residential construction markets account for approximately 70.1 percent of revenue for brick and tile manufacturers. Hence, rising residential building activity is expected to bolster demand for industry products. Residential construction activity is expected to rise in the coming year, representing an opportunity for industry revenue growth.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our factory; we are well positioned to take on the opportunities that will come our way.
Housing stats measure the number of new, privately owned housing units started in a given year. As more new homes are built, demand for tiles increases, positively affecting the industry. Housing stats are expected to decrease in 2022, posing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the trends in the Clay Bricks and Tiles Manufacturing industry, you will agree that the industry has benefited from improved industrial production and construction activity over the last half a decade.
The clay bricks and tiles manufacturing landscape has seen tremendous changes in the last 20 years; it has grown from the smaller enterprise to a more organized and far reaching industry. This trend has benefited them in such a way that they can comfortably sell their tiles nationally and also export them to other countries of the world.
8. Our Target Market
Our target market is well defined and in view of that, we have positioned our tiles manufacturing company to service construction related companies all around Rapid City – South Carolina. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.
We will sell our products to;
- Building materials suppliers and retailers
- Construction companies
- Home remodeling companies
- Property development companies
Our Competitive Advantage
A close study of the Clay Bricks and Tiles Manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading tiles manufacturing companies in Rapid City – South Carolina.
King George® Tiles Manufacturing, Inc. is launching a standard tiles manufacturing company that will indeed become the preferred choice of residents of Rapid City – South Carolina. Having a good technical knowledge of the product, ability to control total supply on market and upstream vertical integration (ownership links) are part of our competitive advantage.
Our tiles manufacturing company is located in an ideal property highly suitable for the kind of manufacturing company that we want to run. We have enough parking space that can accommodate well over 30 cars/trucks per time.
One thing is certain, we will ensure that we manufacture different sizes and shapes of concrete bricks, concrete pipes and concrete blocks to meet international standards. One of our business goals is to make King George® Tiles Manufacturing, Inc. a one stop tiles manufacturing company. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
King George® Tiles Manufacturing, Inc. is in business to manufacture and retail different types, sizes and shapes of tiles to clients in the United States of America and other countries of the world. We are in the Clay Bricks and Tiles Manufacturing industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the manufacturing and retailing of;
- Ceramic Tile
- Porcelain Tile
- Glass Tile
- Cement Tile
- Marble Tile
- Mosaic Tile
- Granite Tile
- Limestone Tile
- Travertine Tile
- Quarry Tile
- Metal Tile
- Resin Tile
10. Sales Forecast
If your factory is well located and you have good business network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Rapid City – South Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base beyond Rapid City – South Carolina to other states in the United States of America.
We have been able to critically examine the Clay Bricks and Tiles Manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for King George® Tiles Manufacturing, Inc., it is based on the location of our business and other factors as it relates to tiles manufacturing startups in the United States;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.3 million
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for King George® Tiles Manufacturing, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for stakeholders in and around Rapid City – South Carolina. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the Clay Bricks and Tiles Manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Rapid City – South Carolina and throughout the United States of America.
In summary, King George® Tiles Manufacturing, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our tiles manufacturing company by sending introductory letters alongside our brochure to building material suppliers and retailers, construction companies, and key stake holders in and around Rapid City – South Carolina
- Ensure that we manufacture different sizes and types of tiles
- Make use of attractive hand bills to create awareness and also to give direction to our factory
- Position our signage / flexi banners at strategic places around Rapid City – South Carolina
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Join local chambers of commerce and industries with the aim of networking and marketing our products.
11. Publicity and Advertising Strategy
Despite the fact that our tile manufacturing company is well located, we will still go ahead to intensify publicity for the business.
King George® Tiles Manufacturing, Inc. has a long – term plan of opening our distribution channel in various locations all around key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Rapid City – South Carolina before venturing out.
Here are the platforms we intend leveraging on to promote and advertise King George® Tiles Manufacturing, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Rapid City – South Carolina
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our tiles manufacturing company in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to our tiles manufacturing company, it is normal for clients to go to places where they can get tiles at cheaper prices which is why big players in the industry co will always attract loads of clients.
We know we don’t have the capacity to compete with leading tiles manufacturing companies in the United States, but we will ensure that the prices and quality of all the products that we manufacture are competitive with what is obtainable amongst tiles manufacturing companies within our level.
- Payment Options
The payment policy adopted by King George® Tiles Manufacturing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that King George® Tiles Manufacturing, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our tiles without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.
13. Startup Expenditure (Budget)
These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of King George® Tiles Manufacturing, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard warehouse and showroom – $250,000
- The total cost for remodeling the warehouse – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The total cost for tiles making machines and start-up inventory – $250,000
- The total cost for counter area equipment – $9,500
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a website: $600
- Miscellaneous: $10,000
We would need an estimate of five hundred and fifty thousand dollars ($550,000) to successfully set up our tiles manufacturing company in Rapid City – South Carolina.
Generating Funds/Startup Capital for King George® Tiles Manufacturing, Inc.
King George® Tiles Manufacturing, Inc. is owned and financed by Mr. Kingsley George and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of King George® Tiles Manufacturing, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to manufacture and retail durable tiles a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
King George® Tiles Manufacturing, 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.
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 six 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; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (warehouse and factory): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed tiles making machines, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of products that will be available in our warehouse: Completed
- Establishing business relationship with vendors – suppliers and wholesale distributors of tiles: In Progress