Prompt General enterprise Limited Business plan

Prompt General Enterprise Limited Business plan

Executive Summary

Prompt general enterprises ltd is a small construction company formed by highly motivated Contractors. The company has successfully operated in the Bungoma area for almost a year now working on both small and large scale construction, repair, and alteration projects focusing on residential contracting. With the business boom that is occuring in our local area and the desire to improve overall profit margins, the company is planning to shift its target market from residential clients to the larger commercial customers. This business plan will lay out our goals and tasks to make this transition successful and create enough market share to succeed in this highly competitive market.
The Company began in 2009 when Mr. Wanyonyi and his sons began their own company, and it began to bid successfully for large projects.

PGE offers comprehensive services designed to allow the company to do whatever it takes to finish a project. Some of these services include; design work, remodeling and alterations, permitting, site preparation, carpentry, cement foundations, painting, and plumbing and utilities installation. In addition, skills PGE ltd lacks can be subcontracted.
The Market in the Bungoma area is booming at this moment, overall business growth during the past seven years has averaged approximately 9.5% and is expected to continue for at least the next four years.

This makes for a very attractive market for PGE ltd Commercial Contractors.
We will be concentrating on the customers that will provide us with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of commercial clients requiring our services. The other categories that we will serve include the restaurant segment, the special facilities segment, and all other potential commercial clients.

Financial Considerations

Prompt general enterprises has only a small amount of debt and intends to stay that way. We expect to see increased profits from our market shift efforts by the end of Year 2. Over the next three years we expect lower profits as we make inroads into this tough market. We estimate that we will be able to reduce marginal costs and increase overall profitability by Year 3 or Year 4 as we grow and take advantages of economies of scale.

Objectives

PGE ltd Contractors plans to:
Significantly expand into the commercial and office building contracting market to improve profit margins and increase local market share.
Expand services and decrease costs by creating a permanent painting crew, as well as adding a bookkeeper and an accountant to our staff.
Begin to market and offer services in the Western Kenya area in preparation for opening an office in Year 4.

Mission

Prompt general enterprises (PGE) strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services, whether it be office buildings, warehouses, large apartment complexes, public works, schools, etc. PGE ltd maintains the highest standards of service in the commercial construction industry.

Keys to Success

The local commercial construction market is booming at the moment. In order to achieve a parmanent position in this environment, PGE must concentrate on the following tasks.
Secure at least five large scale commercial contracts over the next three years.
Expand our customer base through expansion into other geographic areas to retain a sufficient level of profitability.