Tools to Go: A Proposed Business Plan

ADAMSON University College of Engineering Civil Engineering Department CE 431- Elective 3: Entrepreneurship for Civil Engineers Proposed Business Plan

ools To Go Presented by: C. J. Tampos

Tools To Go is a start-up business serving the Laguna area, Philippine community with home improvement tools for lease or rental, owned by CJ Tampos. Tools to go offers customers a range of common home improvement tools with benchmarked levels of customer service.

EXECUTIVE SUMMARY

MISSION Tools to go’s mission is to offer the finest selection of home improvement tools for the Community of Laguna. Tools To Go will support the tools with the finest customer service. All customers will have their expectations exceeded.

Guiding Principles Deliver Quality we must give people the assurance that the tools that they’re renting is in good shape and functioning well.

Be attentive and respectful no matter what some people are difficult to interact and high maintenance. Keeping your cool and maintaining success under fire is essential in this type of business Commit To Service Clients first before anything else .

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•To Have 70% of the tools rented by month seven.

•Reach profitability by year two.

•Achieve self-sustaining revenue by year two.

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ØMaintain a sufficient inventory of highquality tools, kept in excellent condition. Ø Ensure all staff are extremely knowledgeable on all of the offered tools. ØMaintain strict inventory and accounting controls, reducing overhead while assuring availability at the same time.

Company Description Tools To Go is registered as sole proprietorship. Registration will be taken on November 2024. Tools To Go offers a range of home improvement tools which may be rented for intervals of less than one month and leased for intervals of more than a month. Tools will serve both individuals interested in improving their home as well as handymen. Tools To Go will be established on the year of 2025. The office will be located in San Pedro Laguna area, near Angeles Holdings.

The store will be open from Monday to Saturday 8am – 5pm. But will be closed during the holidays.

OWNERSHIP Tools To Go will be owned by CJ Tampos. The business was an idea by mr. Tampos and probably soon will establish around Laguna in the year 2025.

CJ Tampos is a Civil engineering student in Adamson University and he will graduate in the year 2021. He will work in SMI for experience.

LEGAL FORM Sole Proprietorship is a type of enterprise that is owned by one person and In which there is no legal distinction between the owner and the business entry.

Start-up Summary

Tools To Go will incur a variety of expenses associate with the start up phase of the business. Some expenses will be equipment related, for inventory as well as for operations. Other expenses will be from service providers used to assist in the development of operations.

With a fund of 30million from the service providers and the 70% of the business would be from the founding members.

Service providers •

Angeles Holdings: Other equipments supplier

Location and Facilities

The office will be located in a residential Diamond st. beside Caltex and Swedish Designs, San Pedro, Laguna.

San Pedro Laguna is a city with a population of 305,809.

Services Tools To Go offers the Laguna community a wide range of tools that can be rented or leased depending on the length of time needed. Tools To Go will offer a bright, cheerful showroom. Customers will be greeted when they walk in and offered assistance. While Tools To Go rents tools, the real service is the attention that the customer receives. This takes the form of assistance in determining what tools are needed. The customer is then shown exactly how to use the tool and given plenty of tips to make them as proficient as possible.Â

The tools are available for rent if the borrowing period is less than one month and are available for lease for periods beyond one month. Tools that will be leased/rented are grouped into three broad categories: WOODS oRadial arm saw oDrum sander oSawzall oRouter oLathe oPlaner

ASSORTED oIndustrial cordless drill. This unit is rented with several battery packs oNail gun oAir compressor.

For use with the nail gun, paint sprayer, and pressure washer

Exterior products oPressure washer oPaint sprayer. Also included is a roller attachment oRoto tiller

Competetive Comparison

Currently there are no construction companies that rent tools for home improvements.

Suppliers Tools to Go will have a suppliers through Angeles Holdings. Angeles Holdings is a manufacturer, marketer, and a supplier of high quality products for exhibitions, interior designs, construction, and graphic design and print.

Management controls •Safety Controls Identifying and eliminating safety hazards and implementing ways to reduce safety risks. •Supervision Monitoring the performance of employees to improve productivity, efficiency and work quality. •Performance Management The process of agreeing to a set of objectives with employees and evaluating performance against those objectives.

Future Services To open more branches in other areas, maybe in Cavite area.

To have gears, heavy equipments, and small vehicles rental in the future

Market Analysis Tools To Go has identified two distinct customer segments that will be the most attractive. The first segment is individuals who will be performing home improvement work themselves. The second is the handyman who will be performing a job in a client's house and need to use tools which he/she does not own. The Market Segmentation section provides additional detail about the market segment including useful demographic data.

Industry analysis

Currently the area has a medium pressure of bargaining suppliers and a low pressure of potential competitors.

Market size

San Pedro is the fourth largest city in terms of population after the cities of Calamba, BiĂąan, and Santa Rosa. The city also has the highest population density in the province of Laguna and in the whole Calabarzon region, having 14,000 people per sq.km

Main Competitors

As of now there are no competitors around San Pedro, Laguna

MARKET

S E G M E N T A T I O N

Tools To Go has identified two segments of the market that are most attractive to the tool rental/lease business model: individuals and handymen.

Individuals: This market segment is homeowners who are interested in undertaking a home improvement project but do not have the equipment to compete the project. They may already possess the skills to complete the job or have the aptitude to learn with a Tools To Go' sales assistant's help.

The individuals have typically owned the home for one to three years, or for more than ten years.

• Ages 30-45 • 76% have undergraduate schooling • 59% perform other forms of home improvements around the house • 43% will be having one of their more experienced friends assisting them with the project on hand •

MARKET

S E G M E N T A T I O N

Handymen: This is the market segment of service providers who perform a wide range of home improvement services for customers. The average handyman does not have all the tools needed to complete a job. There are so many different tools out there and the industrial quality ones cost so much that is often not cost effective for a handyman to own all of the tools that he may need. Tools to Go will serve the handyman market well with high quality, good condition industrial offerings.

Tools to Go has selected these two customer segments because they will provide the most revenue to Tools to Go relative to other customer groups. Individuals will be a significant revenue driver since they are all home owners who are looking to make improvements in their home. The unexpected costs of home ownership create a great incentive to pursue improvement projects themselves as a means of saving money.

As long as the individual has the time (often what weekends are for) and a sense of adventure, they can go to Tools to Go, rent or lease tools, receive instructions on how to use them and complete the home improvement project on their own, saving significant amounts of money.

Target Market Segment Strategy

 Handymen are also a great target segment because they are more likely to

undertake the leasing option relative to the individuals. While many handymen have a significant collection of tools, it is difficult for them to have every tool since there are just so many. From a capital expenditure standpoint it makes sense not to buy every conceivable tool, but to rent or lease tools on an as needed basis. The handymen typically already have the skills to operate the tools, they just are being conservative with their limited capital resources. They will rent or lease the tool when they have a job that requires it.

Target Market Segment Strategy

Strategy and Implementation Summary Tools to Go will seek to leverage its competitive edges to quickly gain market share. Tools to Go has developed a marketing strategy that will generate visibility for the company regarding the various services that it offers. The sales campaign will have the goal of converting possible customers or one-time customers into dedicated, frequent users of Tools to Go services. The proper implementation of these strategies will be a key element in Tools to Go market penetration and growth into a profitable business.

Unique Selling point

A loyalty card will be available in our store to those customers who are loyal in renting our tools within a year. The customers typically receive either a discount on the current purchase or to an allotment of points that they can use for future renting.

Competitive Edge

Tools to Go will focus on one key element which comprise the competitive edge, an advantage that will assist in fast growth in the market: • High quality products: Tools to Go will only rent the highest-quality tools. For so many customers the decision of who to lease/rent from comes down to the tools that they have to use. Are the tools high end, industrial quality? What is the condition of the tools, have they been well maintained?

SWOT ANALYSIS STRENGTHS

High quality products and ready to use Easy access to supply and promotions from Angeles Holdings Affordable rents and leases

WEAKNESSES OPPORTUNITIE S THREATS

Number of employees Developing Market No competitors Similar shops in the future Changing of customer’s attitude towards company

Positioning

Tools To Go is a “ready to use� high quality construction tools which can easily be rented at a reasonable price that will cost less instead of purchasing.

Promotion and Advertising Strategy

Social Media such as Facebook and Instagram Through Angeles Holdings advertising, they will promote Tools To Go especially in events that they will handle and through their websites.

And in the future will make a website for this business

Organizational Chart CEO Cj Tampos OFFICE MANAGER

SALES/ MARKETIN G

MANAGEMENT OFFICE MANAGER

600/DAY

SALES/MARKETING

600/DAY

PAYROLL

600/DAY

LABORERS

530/DAY

THANKÂ YOU! KAMSAMNIDA