Zafe Builders : A Proposed Business Plan

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

Reported by: Adda Marie L. Zafe

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Executive Summary

Contents Executive Summary Company Description

Company Description

Services

Services

Market Analysis

Market Analysis

Marketing Strategy and Implementation Organization and Management

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Ƨafe Builders is construction company situated in the island of Catanduanes, Bicol. A small company owned by Adda Zafe wherein services are offered with a price worth of quality and timeliness.

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With the desire to build safe infrastructures for the locals, Ƨafe Builders shifts its target market to both residential clients and commercial customers.

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Ƨafe Builders offers comprehensive services designed 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.

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The Primary objective of Ƨafe Builders company is : • To significantly expand into the commercial and office building contracting market to improve profit margins and increase local market share.

• To begin to market and offer services in the Virac area • To provide quality service with no delay • To build residential or commercials places safe for the clients • To ensure safety of the workers in the work area • To u s e h a r m l e s s p ro c e s s e s s a fe fo r t h e environment

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Ƨafe Builders aspire to offer the finest quality design, site preparation, cost estimates, and construction to clients needing small or large scale construction services, whether it be a residential house, office buildings, warehouses, large apartment complexes, or public works. ƧB maintains the highest standards of service in the commercial construction industry. This company seeks to provide strong structures to ensure safety for the clients, systematic field site to ensure s afet y fo r t h e wo r ke rs , a n d m et i c u l o u s construction processes to ensure safety for the environment.

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1.Safety first -All workers should wear their personal protective equipment at all times in the site.

2. Deadlines are deadlines - All work goals must be done on the specified and agreed date.

3. Think. Build. Save.

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The local commercial construction market is booming at the moment. In order to achieve a defendable position in this environment, the company 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.

• Increase marketing expenditures by 15%.

• Secure connections to gather more clients.

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Ƨafe Builders will be established on the year of 2024. The office will be located in 43B Cabinitan, Virac , Catanduanes. The office will be located in a residential house wherein clients can come for discussion of projects. The company will be fully owned by Adda Marie and Fabio Nico L. Zafe.

The office will be opened from Monday to Saturday from 8AM to 5PM. The office will be closed on holidays. The clients must first call, email or text for an appointment.

Ƨafe Builders will be owned by Adda Marie and Fabio Nico L. Zafe. This was an idea ago and will soon be executed in the year of 2024.

Adda Zafe is a Civil Engineering student in Adamson University with student leadership background. She will graduate in 2020 and will work in MPTC for three years as experience on the field.

Nico Zafe is a registered nurse and a personal gym trainer. He is the owner of Fitness Movement, a gym in Virac, Catanduanes.

Ƨafe Builder will be organized as sole proprietorship, wholly owned, and operated by Adda Zafe. The BIR is registered in district of Virac.

The estimated capital needed is Php 85 million. The 50% of the capital will come from bank loans. Adda and Nico Zafe will provide 20% of the capital from their savings.

The 10% will be borrowed from Nico Zafe’s father-in-law who is an engineer.

The office will be located in a residential house in 43B Cabinitan, Virac , Catanduanes in front of Catanduanes S t a t e U n i v e r s i t y. T h i s i s n e a r t h e business district of the city.

Virac, Catanduanes is an island province with a population of 73,650.

Ƨafe Builder offers a comprehensive package of services designed to allow the client to work with one of our managers and create a project the company can carry forward to completion.

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Design work Site preparation Carpentry Cement foundations Painting Plumbing and utilities installation Exterior renovations Subcontractor assessment and evaluation.

SER VI CES

• Currently, there are still no construction companies located in Virac. • Bicol Saro Construction Company is located in Pandan, a city three hours away from Virac

Through Nico Zafe’s gym, he already have connections with suppliers who offers reasonable prices.

Adda Zafe’s uncle will be the sand and gravel supplier for the business.

• The management ensures the safety of the workers on the field. The company will provide PPE. • Appointments. The clients must first book an appointment to discuss the project.

• Weekly Inventory. Management will conduct a weekly inventory to determine weekly profit and loss.

• Monthly Staff Evaluation. There will be a monthly evaluation to determine the performances of the staff.

Future plans are : • to extend to the other parts of Bicol and • to provide services to bridges and road projects

• Weekly Prime Cost. A staff will prepare a weekly prime cost to profit during projects.

• Purchasing Records/ Payables. A bookkeeper will account all the transactions of the day such as check disbursements and other transactions • Payroll Processing. Payroll Processing will be issued bi-monthly. Nico Zafe will check the attendance and performance of the staff. He will issue the payment to the workers every 15th and 30th of the month.

Market Analysis

The Bicol region is booming at this moment, overall business growth over the past seven years has averaged approximately 5.5% and is expected to continue for at least the next four years.

Other than the fact that this is owners’ province, the developing market attracts the business people to invest.

The company will be concentrating on the customers that will provide the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of all the commercial clients requiring our services. The other categories that will be served include the standard occupancy structures and essential facilities.

Industry Analysis At the moment, the potential list of clients includes all the various businesses in the area and its suburbs.

The company will concentrate on the customers that can provide us with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of all the commercial clients requiring the services.

MARKET SIZE There are 315 barangays with a population of 260964 in the island of Catanduanes. Currently, there are commercial businesses rising in the market.

INDUSTRY PARTICIPANTS A nearby industry is the Bicol Saro Construction MAIN COMPETITORS •

Currently, there are still no construction companies located in Virac.

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Bicol Saro Construction Company is located in Pandan, a city three hours away from Virac

At the moment our potential list of clients includes all the various businesses in the Bicol area and its suburbs. Safe Builders will concentrate on the customers that can provide us with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of all the commercial clients requiring our services. The other categories that we will serve include the restaurant segment, the special facilities segment, such as gas stations, and theaters, and a category which we will call "general", encompassing all other potential commercial clients.

Since office building construction has the highest average profit margin, we will focus most of our marketing and servicing toward these customers. Usually these clients require the largest projects in scope, land use, and cost. In addition, they tend to be the most sensitive to completion times. Therefore, we plan to accommodate these clients through a well established and expeditious permitting program, strict cost accounting and supply management, and intensive and comprehensive project management capitalizing on Fosse's experience in the field.

Marketing Strategy and Implementation Ƨafe Builders plans to market itself through a

variety of methods. Our plan will use referral systems, radio and published ads, leveraging of our pre-existing contacts with the local real estate companies, and industry contacts. Ƨafe Builders has been able to gain a very advantageous supplier contract that will allow Ƨafe Builders to obtain its materials at a significant discount. This will allow the company to underbid its rivals and achieve a low cost leadership role.

STRENGTHS: Prime location, Connections, Reliable consultant

Weaknesses: Quality of Employees, Limited Suppliers Opportunities: Less Competition, Developing Market Threats: Uncontrolled weather , Rising external Costs

UNIQUE SELLING POINT Ƨafe Builders has been able to gain a very advantageous supplier contract that will allow Ƨafe Builders to obtain its materials at a significant discount. This will allow the company to underbid its rivals and achieve a low cost leadership role. Ƨafe Builders promises a service of safety that ensres the sustainability of the society.

Competitive Edge In the construction industry the primary ways to compete are through low cost or better project management. One of the most important processes for winning a contract is the bid process. The company has a unique competitive edge over its competitor. The Bicol Saro Construction Company is on another area and is located far from Ƨafe Builders. Through this relationship, Ƨafe Builders has been able to gain interested clients and accept projects. With these edges the company can underbid its rivals and achieve a low cost leadership role.

Ƨafe Builders will ensure safe practices for the staff, a quality and safe structure for the clients and will use safe processes for the environment.

POSITIONING S TAT E M E N T: Think. Build. Save.

P R I C I N G S T R AT E G Y: With the mentioned competitive edge, the company aims to provide quality service with a reasonable price.

PROMOTION AND ADVERTISING S T R AT E G Y: *Location- located in front of a university and the main road * Wo rd o f M o u t h *Social Media such as Facebook

O R G A N I Z AT I O N A L C H A R T The manager of Finance Department is a fulltime bookkeeper of all the finances, invoice and check disbarment.

The president is in charge of presenting the project plans with her STAAD, ETABS, and AUTOCAD skills.

With her previous student leadership skills, she can truly manage the workers to meet the dealines

The Vice President is in charge of seeking new clients and ensuring a good relationship with the suppliers.

As a registered nurse, he will ensure the physical safety of the workers during projects.

The Manager of Services and Labor will be a full time job and is in charge of seeking manpower during projects . He/She will be in charge of inventory.

MANAGEMENT

President

Php 750.00/ day *

Vice President

Php 750/ day *

Manager for Financial Depart

Php 530/day *

Manager for Labor and Services

Php530/ day *

As a startup company, manpower and equipment needed for a project will be rented through reliable sources.

Supplier of materials such as sand and gravel will come from Sonny Zafe and other trusted suppliers.

* May vary due to the current minimum wage and due to projects signed

PERSONAL PLAN