Green Speed

Business Plan

Prepared by Edgar Bettencourt, Adolfo Diaz, Jeremy Espino, Mayra Martinez, and Ciara Ryan-Todd

11/18/2014

This business plan has been submitted on a confidential basis and may not be reproduced, distributed or stored without explicit permission from its creators.

Table of ContentsExecutive Summary.........................................................................................................................3

Mission Statement........................................................................................................................3

The Opportunity.......................................................................................................................3

Business Concept.....................................................................................................................3

Industry Overview...................................................................................................................3

Target Market..........................................................................................................................4

Competitive Advantage...........................................................................................................4

Management Team..................................................................................................................4

The Financials..........................................................................................................................4

Company Overview.........................................................................................................................6

Services Plan....................................................................................................................................6

Marketing Plan.................................................................................................................................7

Market Analysis...........................................................................................................................7

Competitors..................................................................................................................................7

Marketing Strategy.......................................................................................................................8

Service.....................................................................................................................................8

Distribution..............................................................................................................................9

Pricing....................................................................................................................................10

Promotion..............................................................................................................................11

Operations and Development Plan................................................................................................12

Management Team........................................................................................................................14

Critical Risks.................................................................................................................................15

Financial Plan................................................................................................................................16

Summary of Key Financial Assumptions..................................................................................16

Sources of Financing..................................................................................................................17

Financial Projections..................................................................................................................18

Profit Forecast........................................................................................................................18

Sales Forecast........................................................................................................................20

Appendices....................................................................................................................................21

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Executive Summary

Mission StatementOur mission at Green Speed is to provide apartment owners with rapid and reliable service, which includes special emphasis on preserving and promoting environmentally friendly maintenance to our customers.

The OpportunityThe opportunity for apartment servicing in Arlington is very promising. Arlington is the third most populous city in North Texas and continues to see growth (City of Arlington, n.d.). Redevelopment has begun in parts of the city to compensate for higher density living spaces and the University student population in Arlington is slowly rising (The City of Arlington, 2014). Apartment complexes mainly utilize in-house maintenance crews; however, this puts a lot of responsibility on apartment complex managers and there are services that these in-house maintenance crews cannot perform due to lack of expertise or tools. Tenants often complain about the slow response to work orders and the poor quality of work done. Green Speed will have the expertise, tools, and professionalism it takes to service needs and exceed customer expectations. In addition, the continuous growth and plans for redevelopment make Arlington a prime location for apartment maintenance.

Business ConceptGreen Speed is a service-oriented company. The services offered include a variety of apartment refurbishing activities such as painting, carpet installation and flooring, bathroom and countertop resurfacing, sheetrock repairs, and housekeeping. Green Speed’s first major focus is on customer satisfaction through timely and quality service. All clients are offered a Customer Satisfaction Guarantee. This guarantee will ensure that all jobs are completed to the expectations of the clients, and will increase customer satisfaction and customer retention. Green Speed’s second major focus is on using environmentally friendly products; this allows for a healthier environment for tenants to live in and a lower carbon footprint on Green Speed’s behalf.

Industry OverviewGreen Speed has the potential to infuse the market with a needed service company- especially with the lack of companies emphasizing environmentally conscious efforts. Apartments within Arlington, TX generally use in-house maintenance crews of about 2-3 individuals. There are not many competing companies who offer apartment servicing in Arlington, and none of them advertise the use of environmentally friendly products. Green Speed will be able to capture a large market share in apartment servicing, and will even contract with apartment complexes to be hired as a full-time servicing company for their apartment maintenance needs. Any in-house maintenance crew employees of contracted apartment complexes will be offered the opportunity

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to work with Green Speed so that they are not forced out of their jobs. This will also give Green Speed a promising source of new employees with experience in the field.

Target MarketThe target market for Green Speed will consist of mid-to-high end apartment complexes in Arlington, TX. Mid-to-high end apartments were chosen because Green Speed’s competitive advantage is a differentiation based strategy that focuses on high-quality service, professionalism, and environmentally conscious products. The mid-to-high end apartments are more concentrated in the neighborhoods of Pantego, Dalworthington Gardens, West and North Arlington (Arlington, TX Neighborhoods Map & Guide, 2014).

Competitive AdvantageGreen Speed LLC focuses on customer service, timeliness of service, and the use of environmentally responsible products. Green Speed has taken on a niche market by using environmentally products. There are currently no other competitors in the region who focus on environmentally friendly products. In-house maintenance crews often receive efficiency complaints, but Green Speed will be at an advantage with fast and professional serviceBy entering this niche, Green Speed is ahead of companies such as Efurd Maintenance and other general maintenance crews that apartments typically have.

Management TeamThe owners of Green Speed will be the only managers initially, additional personnel will be added when the need arises. Each of Green Speeds five owners brings unique and valuable skills that will be imperative to the success of the company. Jeremy Espino has experience working in startup company Affordable Apartment Services as an entrepreneur and advisor to the owner. Ciara Ryan-Todd is Green Speed’s marketing specialist who will also serve as the Firm’s leader. Edgar Bettencourt’s strong background in Finance through education, work experience, internships and organizations, make him an excellent Chief Financial Officer for Green Speed. Adolfo E. Diaz’s excellent management and coordination skills exemplified through his work experience, internships, and organizational involvement will serve Green Speed well. Mayra Martinez is yet another Marketing expert for Green Speed whose excellent communication skills will ensure that the firm will excel in acquiring and retaining business from customers.

The FinancialsThe company is requesting the total amount of $619,924.80 (80% of total of 2 years cost) in order to get the operations running, with a reasonable margin of safety. The sales performance of the first two years of operation will carry the company beyond this point and allow for the repayment of debt (see profit forecast on the following page).

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Profit Forecast

Table 1.1

Estimated 2015 2016 2017

Sales $ 374,400.00

$ 421,200.00

$ 468,000.00

Rent expense $6,804.00 $6,804.00 $6,804.00Web development $2,500.00Average Labor Cost (contract workers)

$260,000.00 $260,000.00 $260,000.00

Average Labor Cost (Accountants) $87,404.00 $87,404.00 $87,404.00Insurance Expense $3,000.00 $3,000.00 $3,000.00Transportation( 2 Vans ) $13,990.00Inventory $24,000.00Miscellaneous $10,000.00 $10,000.00 $10,000.00

Operating Income $ (33,298.00)

$ 53,992.00

$ 100,792.00

Income Tax $ 3,914.42

$ 7,307.42

Less Interest $40,295.11 $40,295.11 $40,295.11

Net Income $ (73,593.11)

$ 13,696.89

$ 60,496.89

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Company Overview

Green Speed LLC will be a property service and repair company focusing on customer service, speed of service, and the use of environmentally responsible products. The company will target mid-to-high-end apartment complexes. Green Speed’s main objective is to provide outstanding service to customers by having trained staff and fulfilling orders in a timely and professional manner. This service will be provided to independent jobs and Green Speed will serve as a main service repair company for contracted apartment complexes. Repair work orders will be taken via phone, email, and smartphone applications.

The first office location will be near the central region of Arlington, TX in order to facilitate the distribution of our services to our target market. This office location will approximately 1,000 square feet in order to house the offices as well as a small warehouse section to store equipment and other assets.

Green Speed will be a Limited Liability Company owned by Ciara Ryan-Todd, Mayra Martinez, Edgar Bettencourt, Jeremy Espino, and Adolfo Diaz. Each owner would have the right to do as they please with their 20% ownership, including selling or buying ownership from another owner, except for any legal action which might heighten or lower the value of the other owners’ portions. Because the ownership is divided in such way, the liability will also be divided into the five. Green Speed has chosen to be a Limited Liability Company in order to keep the ownership, sales, and liability under control.

Services PlanGreen Speed company is service oriented and is hired out on a need basis. Clients will request from a variety of services including painting, carpet installation and flooring, bathroom and countertop resurfacing, sheetrock repairs, and housekeeping. These services include every service a typical apartment may need that their own maintenance personnel would not do themselves. Housekeeping refers to the one-time thorough cleaning of a unit so that it may be further serviced, or be prepared for a move-in; housekeeping generally is required before any other servicing can be done. The service prices are to be similar to that of major competitors. Green Speed will look to capture the market through superior quality, customer service, and timeliness of service; research has indicated that these three qualities are by far the most important in retaining and acquiring customers. Once a client has ordered a service via email, phone call, or smartphone app, the job coordinator will contact the appropriate employee and notify him/her of the job. The employee will then gather any needed supplies for the job and complete it; not leaving the site until the apartment manager approves of the work. This function ensures that our customers are completely satisfied with their service, and that our employees will not waste time on return trips for touch ups. The Supply Manager will be in charge of supplying any additional cleaning products or materials to the employee.

A long-term goal is to take over all of our clients’ maintenance needs by placing full-time maintenance employees in each apartment complex.

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Marketing Plan

Market AnalysisThe target market for Green Speed will consist of mid-to-high end apartment complexes in Arlington, TX. Mid-to-high end apartments were chosen because Green Speed’s competitive advantage is a differentiation based strategy that focuses on high-quality service, professionalism, and environmentally conscious products. The mid-to-high end apartments are more concentrated in the neighborhoods of Pantego, Dalworthington Gardens, West and North Arlington (Arlington, TX Neighborhoods Map & Guide, 2014).

Even though Green Speed is targeting the apartment complexes and complex management, it is important to know some information about the basic population of Arlington residents as there will be much interaction with the tenants. About 40% of Arlington’s population falls between the ages of 18 and 44 (Demographics of Arlington, Texas and Fast Facts, 2014).The median household income for apartments without a mortgage is $54,342 (Arlington, TX (Texas) Houses and Residents, 2012). Arlington is the third most populous city in North Texas and continues to see growth (City of Arlington, n.d.). Redevelopment has begun in parts of the city to compensate for higher density living spaces and the University student population in Arlington is slowly rising (The City of Arlington, 2014). The continuous growth and plans for redevelopment make Arlington a prime location for apartment maintenance.

CompetitorsGreen Speed has found a niche through the use of environmentally products. Tenants who are concerned with fumes or the long-term effects of potentially harmful products will be attracted to the commitment to safer cleaning and maintenance products. This eco-friendly niche creates a competitive advantage that puts Green Speed ahead of companies such as Efurd Maintenance and other general maintenance crews that apartments typically have.

Apartments within the Arlington area have disclosed that in-house maintenance crews of about 2-3 individuals are generally hired. Managers of apartments delegate jobs to these individuals as tenants raise concerns. While some apartment complexes have work orders, there is inconsistency in the way maintenance is handled. Green Speed is focused on providing not only efficient maintenance, but also on creating an organized process to take on work orders. Managers of apartment complexes that are unable to focus on the work order procedure and managing the level of work orders could contract Green Speed to alleviate their problems. Contracting a company such as Green Speed will also help maintain the needs of an apartment complex. For example, an in-house maintenance crew might not have specialization with dry wall, but our company has a team of different expertise that could be assigned to the location. If Green Speed is already in a contract with that complex, then finding individuals to fix maintenance issues will be much easier. Green Speed would also consider hiring the apartment complexes’ existing staff, training them, and making them a part the Green Speed staff. Apartment manager’s time and resources will not be wasted trying to manage work order issues when Green Speed is hired.

A major competitor of Green Speed will be the apartment maintenance staff many of the apartment complexes already have. For example, Pavilion Apartments in Arlington have a

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professional maintenance team that is listed as an amenity on their website. However, one of the major complaints listed in an online apartment ratings website is that the maintenance takes too long to be completed (Pavilion Apartments, n.d.). The apartment ratings consistently list maintenance quality complaints such as lack of oven repair or lack of interest from the staff to make repairs (Apartment Ratings, n.d.). The goal of Green Speed is to satisfy customer needs efficiently and hold a reputation for being dependable, professional, and friendly.

El Lider is a limited liability company that resides in Dallas, TX and operates out of a warehouse. The company has been established for 13 years and relies on customer references to acquire more customers. Jobs such as flooring and resurfacing are within the company’s focus; while they do not solely focus on apartments, the company has established themselves as a contracting company. The company also concentrates on keeping customers satisfied through an insured security policy and has direct references on their webpage. Green Speed is directly competing with El Lider because they have a focus in Dallas as well as an existing clientele base ("El Lider", 2014). Green Speed is new to the market and potential customers may not have consumer confidence in the company, plus Green Speed does not have references to rely on. Green Speed will emphasize its customer service qualities and commitment to environmentally friendly products in order to target those within Arlington and potentially DFW. This differentiation based strategy will work to attract a clientele interested in that market.

Efurd Maintenance is an in-house maintenance company that focuses on their specific Efurd properties. Efurd’s properties are in the DFW and Arlington areas. They provide routine maintenance as well as the same services that Green Speed would provide with 24/7 on-call service repair. Efurd provides additional services such as providing photos of specific completed jobs and allowing customers to see the logistics behind the amount of time it takes to complete a job (Dallas Property Management - Efurd Properties, 2014). This company will be competing for many of the same locations as Green Speed, and will be a direct competitor with their effectual service plan. Green Speed’s environmentally friendly products and reliable services will help in competing with Efurd.

Green Speed has the potential to infuse the market with a needed service company- especially with the lack of companies emphasizing environmentally conscious efforts. The company focuses on providing proficient maintenance to sustain a successful apartment complex; including the living conditions of tenants and the ability of management to bring in maintenance companies on a reliable basis that efficiently service tenant needs.

Marketing Strategy

ServiceThe name of the company is Green Speed and it is a service-oriented company. The services offered include a variety of apartment refurbishing activities such as painting, carpet installation and flooring, bathroom and countertop resurfacing, sheetrock repairs, and housekeeping. The name Green Speed was chosen because it represents two of the three most important service qualities that differentiate Green Speed from other apartment maintenance companies. “Green” is used to represent Green Speed’s commitment to using products that are eco-friendly. “Speed” is used to indicate Green Speed’s commitment to providing fast and efficient services. This

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company name will be filed with the U.S. Patent and Trademark Office for intent to use, which will legally protect the name from being used by other service-oriented businesses.

Green Speed’s major focus is on customer satisfaction through timely and quality service. All clients are offered a Customer Satisfaction Guarantee. This guarantee will ensure that all jobs are completed to the expectations of the clients, and will increase customer satisfaction and customer retention. As soon as a work order is approved and accepted by Green Speed, the Customer Satisfaction Guarantee goes into effect. The employee(s) responsible for a specific job will be required to remain on the site until the apartment manager has approved if the work completed. Apartment manager approval will be defined as a written signature stating that the job was completed to their standards. If a job is not approved, the employee must remain on the site and make appropriate corrections to the work until approval is given. If the employee is unable to complete the job due to lack of training, a follow-up appointment will be scheduled with a qualified employee. If the employee is unable to complete the job due to time constraints, a follow-up appointment must be made to complete the job by a deadline specified by the apartment manager.

Timeliness of job completion will be guaranteed through the work order approval process. When a client requests a work order to be completed, they will be allowed to select the time frame in which the job needs to be completed. Green Speed will have until the end of the business day to approve any orders placed by 12:00pm, and 24 hours to approve any orders placed after 12:00pm. Green Speed will only approve of jobs that can be completed within the time frame specified by the client. If the time frame is not feasible, Green Speed will work to compromise with the client so that both parties are satisfied with the timeframe. Any approved jobs that are not completed within the agreed timeframe will be subject to a price reduction to compensate the client for failure to comply. This policy is used to make sure Green Speed is able to meet or exceed customer expectations, thereby increasing customer retention and satisfaction.

DistributionGreen Speed is looking to have a strict distribution system of services through two main managers: the Job Coordinator and Inventory Manager.

In the beginning stages of the company, there will be two teams working. Each team will work for one of the two sectors; the northern or southern areas of Arlington. Although flexible, the defining line between the two sectors would be HWY 303, which runs east to west across Arlington. Initially, each team will be made up of three full time employees who have been trained by the Job Coordinator to deliver Green Speed service and speed. The goal is to add more employees as business increases with a maximum of about 10-20 employees per supervisor. As the company grows the section divisions will be subject to change as Arlington is long, rather than wide, and easier to navigate laterally. Therefore, it would make much more sense to have lateral section divisions so the teams can reach the jobs in a more timely manner.

The Job Coordinator is in charge of managing the jobs submitted to the company via website, phone call, or smartphone application. Once the Job Coordinator has received the information, he

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or she will notify the corresponding team, make sure they have the materials or have them ready for pick-up at the warehouse, and give them a deadline by which the job needs to be completed. The team will then check in with the apartment complex, complete the job, and provide a copy of the apartment manager’s signature of completion to the apartment complex and Green Speed. Starting the next business day, the billing will be issued by the Job Coordinator to the apartment complex with a 3/10 net 30 collecting policy.

Green Speed seeks to be seen as a valuable asset to the apartment complexes, rather than a liability. The goal is to facilitate their work. For this reason, Green Speed will offer quick and reliable service, facilitated by the availability of work orders even if is not during business hours, and a flexible collecting policy. Green Speed is a service company dedicated to provide the best work possible and in the fastest time possible. The customer is valued as a partner in business, rather than just a means of income.

As expansion begins, the Job Coordinator will train contract workers how to deliver the Green Speed service. This will be a two-day training that covers the mission of the company, the policies they should follow as an employee, how to be an observer on a job, and other skills that are necessary for maximum customer service. After the contractor has completed the training, he will be offered jobs by the Job Coordinator to fulfill. If needed, the Job may offer the contractor the option to become a fulltime worker in the future.

PricingBy analyzing some of our potential competitors’ financial information, estimates and projections have been made to account for the cost of providing services and other overhead costs. Because this business charges by the job, estimates are not made on an hourly or recurring basis. Apartment communities contact Green Speed when in need of service, and Green Speed fulfills their service request. The workers are contract employees in that they do not work unless there are jobs available for them from service requests. This helps keep costs down by minimizing time spent waiting for jobs. In order to support the company and its workers with a full time jobs worth of work, Green Speed must have a large enough volume of apartment communities to give the company enough business.

Our labor cost, which is Green Speed’s largest expense, is directly associated with how many jobs/sales we have. Competitor financial information was used to estimate sales and generate an average number of sales per apartment community within a given month. The average number of sales from any given apartment community in a given month is estimated to be $1,500. Also, using competitor financial information, labor costs are approximately 55% of sales. Monthly inventory costs are estimated to be about 5.5% of sales, and Administrative costs can be as low as 4.1% of sales. This leaves about a 35% margin available to the owners of Green Speed for their own wages and profit.

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In order for Green Speed to be economically viable for all of its laborers and owners, it is estimated that monthly sales should reach at least $28,000 a month. This is the amount of sales needed for our laborers’ wages, and the owners to receive enough of a profit to make Green Speed economically viable. In order to reach this threshold, Green Speed would need to have about 19 average sized Apartment Communities as customers.

Pricing Estimates (Based on Competitors’ Pricing)Green Speed has compiled a basic list of prices of services offered.

Painting $0.13 Per Square Foot, not including paint price Ceilings- $65 Cabinets- $295 Oil based

Sheetrock Repairs 1 Square foot- $25-35 5 Square Feet- $55-60 12 Square Feet- $105-110 Full Sheetrock- $120

Resurfacing Kitchen Countertops- $75 Kitchen Sink- $45 Kitchen Vent Hood- $45 Bathroom Countertops- $40 Bathroom Sink- $35 Bathtub- $75 Bathtub stripping- $35 Bathtub Crack Repair- $35 Wall Ceramic- $125

Flooring Carpet by Yard- $9.50 Vinyl by Yard- $12.00 Planking by Square Feet- $1.80

Housekeeping 1 Bedroom- $55 2 Bedroom- $65 3 Bedroom $75

PromotionApartments in need of servicing are typically on very short deadlines and do not have time to look for companies to service them. Often times they are looking for the fastest solution to their problem, whether that is cleaning, carpet, painting, or any other service. Apartment managers just want to get units ready as fast as possible so they can lease them out to tenants. Because of this, it is imperative that Green Speed be aggressive in its approach to customer acquisition. This is the primary focus of the Customer Acquisition Manager; however, it is also the responsibility

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of every employee to represent Green Speed in a matter that reinforces the commitment to quality, service, and timeliness.

In order to generate customer awareness, Green Speed will utilize several different mediums of promotion. Mailings with our pricing list and contact information will be delivered to hundreds of different apartment communities at a time. If an apartment manager sees our mailing and prefers our services and prices to that of their current servicer, then we may receive a call back for services. Emails will also be sent to apartment managers/owners with the same content.

Managers will be responsible for making cold calls to apartment communities that are potential clients. Priority will be given to very large communities that are relatively old; older communities tend to have a higher need of services due to normal wear and tear. Larger complexes are more attractive because they have a large number of units that may need servicing. During these calls, Green Speed’s commitment to prompt and excellent service will be pitched.

Visits to apartment communities will be made for those communities with the highest potential for business and profit. The Customer Acquisition Manager will visit properties regularly and evaluate their profit potential to Green Speed by determining their size and need of services. This data will be recorded for future reference. When the Customer Acquisition Manager finds an apartment community with high profit potential, he/she will set up a meeting with the community manager/owner in order to discuss potential business relations. The Customer Acquisition Manager may offer free demonstrations of our services to showcase Green Speeds quality and service. Because this is expensive, free demos should only be done when the apartment community has a very high potential for business.

Green Speed will also have an online presence through a mobile friendly website, and a strong social media presence (Facebook, Twitter, Google Plus, etc.) in order to further promote the business. The website will primarily be used for business, and contain all contact information, estimates on pricing, and a catalog of services Greed Speed provides. Customers will also be able to place orders through the website. The social media pages will be used primarily for promotions and to generate awareness of Green Speed and its use of environmentally friendly materials.

Green Speed will employ an outside company to enhance Green Speed’s Google presence through the use of Google Analytics. This will make it easier for potential customers to find Green Speed on Google searches. A combination of aggressive promotion and a user-friendly website for placing orders will give clients easy acces to Green Speed. This is an advantage because other companies in the industry have been slow to adopt new technologies.

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Operations and Development Plan

Operating FacilityThe starting target Market is Arlington, Texas. Green Speed will lease a work space/office in a centralized location in Arlington. The center of operations will be of no more than 1,000 square feet in order to be cost efficient; it is sufficient for handling customer orders, training, accounting and supervising activities.

StaffStaff will be hired and trained consistently with the company’s mission of providing quality service. Proper staff training and supervision is crucial to Green Speed’s long-term success because repeat business will be the main focus. Employee pay will be slightly higher than that of the competitors. Higher pay will act as an incentive to promote the expectation of better service providing. Staff evaluations are conducted bi-weekly; the staff will also have a channel to provide feedback on their supervisors and the company’s general operations.

SupervisionThe area of Arlington will be divided into two sectors; each area will have 10-20 employees under one supervisor and the supervisors report to the Activities Manager. Activities Manager processes information from the supervisors and shares any necessary data with the Financial Planner and the owners for planning and actions.

DepartmentsThe owners of Green Speed oversee all of the departments.

Finance DepartmentThe Financial Planner/Financial manager will run the finance department. There will be two accountants under the financial planner.

Operations DepartmentThe Activities Manager will run the operations department. There will be supervisors working under the Activities Manager, and the supervisors will each manage 10-20 employees.

Equipment and SoftwareA system will be purchased to handle incoming orders. The system will organize orders by location, service requirement, and time urgency. This system will be synced online so that service orders can be placed on the Green Speed website. Customer service calls will be directed to the supervisor’s work cell phone.

All the departments will utilize additional software such as MS office tools. In addition, SAP will be used for database management and inventory control.

Supply ManagementGreen Speed will not be inventory intensive as it is a service-based company; however, both the Financial Planner and Activities Manager will manage the product supply inventory. An inventory minimum on each of the cleaning/maintenance products will be established; once inventory levels drop below the minimum, the inventory management software will alert the department heads to order more supplies.

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Area supervisors will inspect the specialized equipment on a weekly basis.

Green Speed’s purchases will be made from warehouses using B2B. Each purchase will be done in a large quantity; this will keep supply costs down.

Purchasing ProcedureThe two largest inventory purchases that will be made are cleaning products and supplies, and equipment. There will also be miscellaneous costs that involve such things as office supplies and vehicle maintenance.

When a purchasing need has been established, the accountants will deal with the financials. The approved money for purchase will be given to the Activities Manager, who in turn authorizes and hands the money to the Area Supervisor in order to purchase the equipment. Once the purchase has been completed, the inventory will be updated in the inventory management software and checked by both the Financial Manager and Activities Manager.

Management TeamThe management team will include an Area Supervisor position that is in charge of assigning workers to jobs on the basis of availability and proximity to the jobs. Preference should be given to more senior employees with better service records. This position will also be in charge of recruiting new part-time workers as needed, as well as managing the small full-time workforce. Employees will be found through job sites, word of mouth, and other reliable sources.

The Activities Manager will manage supplies/inventory. It is important to stay adequately stocked up on materials so that Green Speed will be able to respond to unanticipated jobs. This position is also in charge of providing workers with required materials for jobs. Management should control supplies to help reduce waste and lower costs.

One of the most important things in this type of business is making sure to have a large list of clients. Because most clients will only have work a few times a week, it is important to have a large volume of clients in order to keep workers occupied and the business profitable. As such, the Customer Acquisition Manager is one of the most important positions on the management team. They are in charge of finding new clients through means such as personal visits, mail, email, social media, and general promotion. In addition to pursuing new clients, he/she will also be in charge of ensuring repeat business from existing clients through meetings, promotions, and more.

Initially, a small management team will suffice because apartments do not need to be serviced every day unless Green Speed is hired as the full-time maintenance crew for the property. One manager may be capable of coordinating the business of about 30 different apartment complexes- depending on size and demand.

The owners of Green Speed will be the only managers initially; additional personnel will be added when the need arises. Each of Green Speed’s five owners brings unique and valuable skills that will be imperative to the success of the company.

Jeremy Espino has experience working in the startup company Affordable Apartment Services as an entrepreneur and advisor to the owner. This experience gives the management team insight

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into how the apartment servicing business works, and how to set up and run the business. In addition to experience, Jeremy Espino also has a large network of contacts in the industry as well as family who work in related fields.

Ciara Ryan-Todd is Green Speed’s Marketing Specialist who will also serve as the firm’s leader. Her educational background in marketing, as well as her vast work and organizational experience will give Green Speed superior marketing ability as well as excellent leadership and direction. Ciara has the utmost respect and trust from her fellow owners, and will undoubtedly inspire the same confidence in Green Speed’s employees, customers, and investors.

Edgar Bettencourt’s strong background in Finance through education, work experience, internships and organizations, make him an excellent Chief Financial Officer for Green Speed. His expertise in planning and projections will serve the company well in the long run, and his excellent linguistics will help Green Speed cater to customers of different cultures.

Adolfo E. Diaz’s excellent management and coordination skills exemplified through his work experience, internships, and organizational involvement will serve Green Speed well. Adolfo has demonstrated that he is able to effectively coordinate difficult and complex tasks- skills essential to the smooth operation of a complex and fast moving business such as Green Speed. Adolfo will make an excellent Job and Logistics Coordinator for Green Speed and give the firm a strong infrastructure.

Mayra Martinez is yet another Marketing expert for Green Speed whose excellent communication skills will ensure that the firm will excel in acquiring and retaining business from customers. Her educational background in marketing, as well as practical experience from internships, work, and organizations demonstrate that she will excel at creating and maintaining great business relations with Green Speed’s many clients, suppliers, and partners.

Critical RisksOne of the major critical risks in the market would be apartment complexes opposed to outsourcing repair services and maintenance to a service company rather than finding contractor workers themselves. Currently, most apartment complexes have either in-house maintenance crew for repair or, if the job is larger in scale, will hire independent contractors. Green Speed will have their own inventory of supplies and equipment, which will reduce the price for customers per job completed.

Green Speed is looking to offer more than just service repair. The company focus is to be a reliable source for apartment maintenance. This focus will be supported by Green Speed’s various staff members, because there will be employees available 24/7 for on-call jobs. Other companies with limited staff cannot offer such flexible services. Because Green Speed’s service repair staff consists of company employees, the staff ir more reliable than independent contractors who might be offered outside jobs. All of the work orders submitted are of priority, regardless of size or cost. When it comes to supply, Green Speed is prepared to offer environmentally friendly products without adding any extra charges outside the basic cost for the supplies.

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Another small critical risk for the company would be competition. According to research, there is not a company that offers similar services with as much organization, employee structure, or potential as Green Speed. Most of the competing companies are simply intermediaries who hire contract workers to complete a job and collect a commission on a case-by-case basis. Green Speed would be a service company for apartment complexes to rely on as a trusty source for many years.

Financial Plan

Summary of Key Financial Assumptions

Table 1.2

Estimated Expenses 2015 2016 2017Rent expense $

6,804.00 $ 6,804.00

$ 6,804.00

Web development $ 2,500.00

Average Labor Cost (contract workers) $ 260,000.00 $ 260,000.00

$ 260,000.00

Average Labor Cost (Accountants) $ 87,404.00

$ 87,404.00 $ 87,404.00

Insurance Expense $ 3,000.00 $ 3,000.00 $ 3,000.00Transportation( 2 Vans ) $

13,990.00Inventory $

24,000.00Miscellaneous $ 10000.00 $ 10000.00 $ 10000.00

Average Labor cost was calculated by comparing it to the competing companies. In this industry, the contract labor costs tend to be very much fixed and Green Speed will not be expecting any significant deviations from the competitor’s labor expense rate.

Average Labor cost for accountants was estimated by researching the CPA minimum salaries on Payscale.com .

The office space and the operations of Green Speed will need to be insured, the insurance rate for minimum liability averages about $3,000 per year for a small business.

Web development from Freelancers tend to be the least costly way, the rate tends to average at 50$/hour and a reasonable expectation for the time required for the development process tends to be about 50 hours.

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Office Rental Space at location: 3000 Pine wood Dr., 103 Arlington TX, 76010; comes to about 567$ a month for a space close to 1000 sq. ft.

Green Speed will invest in two vans to insure speedy service and enough space to carry the equipment. A used Ford 2001 Econoline Wagon offers plenty of space, and with 80k miles, runs at a price of $6695.

Miscellaneous includes all the small things such as paint job for the car, gas cost for car, other minor expenses, and other unforeseen expenses.

Table 1.3

Estimated Expenses 2015 2016Rent expense $6,804.00 $6,804.00Web development $2,500.00Average Labor Cost (contract workers)

$260,000.00

$260,000.00

Average Labor Cost (Accountants)

$87,404.00 $87,404.00

Insurance Expense $3,000.00 $3,000.00Transportation( 2 Vans ) $13,990.00Inventory $24,000.00Miscellaneous $10,000.00 $10,000.00

$407,698.00

$367,208.00

The company is requesting the total amount of $619,924.80 (80% of total of 2 years cost) in order to get the operations running, with a reasonable margin of safety. The sales performance of these two years should carry the company beyond this point and gradually pay off the debt over time.

Sources of Financing1) Small business loans will be needed.

Small business Loan rate: 6.5% (smallbusiness.chron.com).

Payment period: flexible, preferably in a time more than 10 years

2) Smart leases can be used for heavy-duty equipment and any costly software. Smart leases require lower down payments , which means more cash on hand for working activities; likely to have higher interest rates than banks.

3) Personal funds from the owners and bootstrapping will be utilized.

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Financing StructureLoans-80%

Internally (owners)- 20%

Tax Rate

6.25% State

1.00%City of Dallas

7.25%Data pulled from Small Business Solutions

Financial Projections

Profit Forecast

Table 1.4

Estimated 2015 2016 2017

Sales $ 374,400.00

$ 421,200.00

$ 468,000.00

Rent expense $6,804.00 $6,804.00 $6,804.00Web development $2,500.00Average Labor Cost (contract workers)

$260,000.00 $260,000.00 $260,000.00

Average Labor Cost (Accountants) $87,404.00 $87,404.00 $87,404.00Insurance Expense $3,000.00 $3,000.00 $3,000.00Transportation( 2 Vans ) $13,990.00Inventory $24,000.00Miscellaneous $10,000.00 $10,000.00 $10,000.00

Operating Income $ (33,298.00)

$ 53,992.00

$ 100,792.00

Income Tax $ 3,914.42

$ 7,307.42

Less Interest $40,295.11 $40,295.11 $40,295.11

Net Income $ (73,593.11)

$ 13,696.89

$ 60,496.89

The following estimation is based on area competitors.

The above financials are the projected sales for Green Speed. Apartment servicing is a niche market where the companies that operate are very private with their financial data. However, Green Speed was able to gather sales information from one of its major competitors that serve the DFW area, Affordable Apartment Services. Affordable Apartment Services makes an average

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of $9,000 a week. The competitor serves about 24 apartment communities. It is within reasonable expectations that Green Speed will be able to make at least 80% of this amount in the first year of operations, with a growth of about 10% per year as Green Speed becomes more efficient, and expands market share.

The above calculations were made as follows

: $9,000*52 weeks* 80% percent of the amount the competitor is making=$374,400, percentage increases by 10% with each year

Average weekly sale per job (per complex) =9000/24=$375

Explanation:

The competitors Efurd, El lider, Pavilion, and Apartment Services Company are all targeting and operating within very specific areas. The market, 6,000 apartments in the DFW area, is still very far from saturation. Considering the number of direct competition and their scope of operations (details in the marketing competitor section) Green Speed feels that it is safe to assume that it is attainable to make at least 80% of Affordable Apartment Services’ sale;, only 24 apartments are serviced by this direct competitor in a market of 6,000 apartment complexes. This direct competitor is servicing 0.40% of the market. Specific numeric data on the other competition is unavailable. However, using the qualitative data on their operations, the number of main direct competition combined with the projected ability of Green Speed’s operational and marketing efficiency has led to the conclusion that meeting these very conservative sales projections listed above is attainable.

For year 2015, we expect to make about 80% of the profit the competitor is making, however over the next years we will expect that percentage to rise and eventually earn a superior amount through efficient operations (see sales forecast on page 19).

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Sales Forecast(Calculations done as a percentage of the average weekly sales of the competitor)

Table 1.5

2015 2016 2017350000

370000

390000

410000

430000

450000

470000

490000

Sales

Sales

Table 1.6

2015 2016 2017Sales $374,400 $421,200 $468,000

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Appendices

Company Ownership

Edgar BettencourtCommerce, TX, 75429

(928) 446 4548ebettencourt@leomail.tamuc.edu

Objective: To secure a position with a well-established financial organization where I can add value to that organization, and gain additional skills through this experience

Relevant Work Experience and Highlights: Innovation First Inc, Finance Department, Financial Planning Intern 2014. Assisted the Financial

Planner, Corey Butcher, with preparing forecasts, and reports on demand and inventory. Nomin Holding Mongolia, Retail & Distribution Marketing Department, Manager 2008-2009.

Roles included: Media Marketing, Sales programs, and sales staff management. Raffles International Institute Mongolia, Marketing Department, Marketing Project Manager

2009-2010, Responsible for the marketing of the Institute’s English Language and Business program. These promotions were both passive and active, and were targeted towards High Schools and Universities.

Linguistics: English (fluent), Mongolian (conversational), Spanish (conversational, basic writing), Portuguese (Conversational, basic writing) Russian (basic)

Work Experience: Resident Assistant 2011-present, Arizona Western College, Texas A&M-commerce. The

position includes communicating and enforcing residence hall policies, reporting to the appropriate professional staff, creating a community, and answering to the needs of the residents and the Residential Living and Learning

Lab Aide, 2011, Arizona Western College, Assist lab users in the use of lab computers, software, and equipment

Desk Assistant 2013-present, Texas A&M Commerce, assisting School residents with their issues and problems, and assisting the Hall director

Education: Texas A&M University-Commerce, cumulative GPA 3.78, Major: Finance Arizona Western College- Associate in Business, Honor Student, and also a member of the Phi

Thetta Kappa Honors Society Raffles International Institute-Advanced Diploma in Marketing, Mongolia 2009.

Organizations: VP of Marketing, Student Government Association; Honors Student; President’s Advisor for

Fusion Dance Group; and Corresponding Secretary for the Phi Thetta Kappa (Arizona Western College)

Interests and Hobbies:

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Mixed Martial Arts Training, Sports, Dancing & Choreography, working out, and swimming

Adolfo E. Diaz16022 Rough Oak, San Antonio, TX, 78232

(210) 683-1685ADOLFODIAZZ@OUTLOOK.COM

Education:Honors College at Texas A&M University-Commerce Expected Graduation: June 2016Major: General Business-Business Administration

Texas A&M University-Commerce October 2014-PresentLogistics Coordinator, "Proyecta 100,000" Program Commerce, TX

Administered the logistics of arrival, stay, and departure of 50 exchange students Coordinated the housing, meals, cultural events, and academic events for the group of students

Golf San Antonio May 2014- August 2014Amateur Golf Intern San Antonio, TX

Emerged an understanding of organizing city-wide events Independently ran Division IV and V city match play tournament Other tasks including inventory management, data input, and maintaining the pro-shop

Travelers Insurance May 2013- August 2013Claims Professional Intern Dallas, TX

Developed and implemented ideas to increase the fluidity of processing claims Managed and reported claims in the general liability, auto, property, and worker compensation Received outstanding summer evaluation for exemplary work including the community service

projectActivities: Hispanic Student Association August 2012-Present President (2013-2014), Vice President (2012-2013)

Organized and lead HSA university-wide projects and events managing budgets up to $12,000 Youngest individual elected to serve as President and Vice President (2012-2013)

Lion Student Ambassadors August 2013-May 2014 First Year Ambassador

Built relationships with faculty, organizations, and campus recruiters to establish our campus brand

Executed presentations and campus tours to future students covering the A&M-Commerce experience

Adolfo and Elsa Diaz Annual Luncheon November 2007-Present Co-Founder Organizes luncheon for custodial and lunch servers of Bradley Middle School Recipient Honors College Scholarship August 2012- Present

President's Scholarship August 2012- Present

Outstanding Campus Student Leader of the Year 2013-2014 School Year

Outstanding Campus Program of the Year 2013-2014 School Year Member INROADS Intern January 2013- Present

Phi Eta Sigma Honors Society April 2013- Present

Alpha Lambda Delta Society April 2013- Present

Skills General MIS Microsoft Office Training, including Excel and Word Spring 2013

General Accounting Fall 2013

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Jeremy Espino229 North Irving Heights Drive, Irving TX, 75061

(214) 908-8429jespino@leomail.tamuc.edu

Work Experience: Residential Assistant,  Texas A&M University-Commerce 2012-Present Planned and implemented various educational, cultural, and wellness

programs, served in an integral part of housing administration. 2012-Present Server,  Cracker Barrel 2012-2013

Education: BBA Finance,  Texas A&M University-Commerce 2011-Present

Organizations: Hispanic Student Association, Texas A&M University-Commerce 2012-Present

o Promoted Hispanic Culture, Charity, Student Involvement,

and Academic Excellence 2012-Present Phi Iota Alpha Fraternity Inc. Texas A&M University-Commerce 2014-Present

o Planned and executed fundraising, community service,

professional, and social events

Skills: Bilingual Fluent in English and Spanish

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Mayra Martinez678 Edgeglen Drive, Dallas, Texas

(469) 583-3628mymtz@sbcglobal.net

Objective: Strive for successful impact on consumer attitudes through distinct exposure.Education:Texas A&M University - Commerce Fall 2012- Present Eastfield Community College Fall 2009 – Spring 2012Richland Community College Spring 2009

Experience: Roobix Marketing Specialist, Dallas, Texas Summer 2013

Assists in digital marketing projects through social media analysis. Serve as a Spanish translator to meet client’s needs. Worked with different programs to edit webpages.

Texas A&M Commerce University Commerce, Texas August 2012-Present College of Humanities and Social Sciences, Student Assistant

Assist in daily office duties in order to create a more organized environment. Created and organized documents for events. Received and screened calls to communicate to different faculty within the office.

Charming Charlie, Sales Associate Dallas, Texas October 2011- January 2013 Provide customer service obtaining the overall Charming Charlie experience. Organize and sustain the stores image through regulated guidelines. Undertake a variety of tasks that provide an effective professional atmosphere.

Organizations:Kappa Delta Chi Sorority Inc. Fall 2012- Present

Gained hands on experience in holding a leadership role as well as for working in groups. Held a leadership role as Service Officer that consisted of arranging volunteer opportunities. Worked towards directly affecting the community through the organization as a whole. Held position as Council Delegate representing Kappa Delta Chi amongst other organizations

and reporting information on the behalf of the organization.Multi-Greek Council Fall 2013-Present

Council Delegate Fall 2013 Served as a liaison between council matters and the Alpha Xi Chapter of Kappa Delta Chi

President January 2014- PresentManages and conducts council meetings as well as deals with matters that affect those who fall under the council. Creates a events with the council to positively impact the community.

Volunteer Experience: Habitat for Humanity Greenville, Texas October 5th, 2013

Assisted in the creation of a new home through labor. Cleaned

Crow Collection Dallas, Texas February 2011 - Present Assist as instructor for arts and crafts activities when opportunity is admissible. Assist guest by handing out informational pamphlets to guide them to their destinations. Provide maintenance help following the festivals.

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Ciara Ryan-ToddRockwall, TX 75032

(720) 883 7984cryantodd@leomail.tamuc.edu

Summary of Qualifications: Coordinating and planning fundraising and social events for University organizations Leveraging social media to promote University events for various organizations Student Social Media marketer of the Texas A&M- University Dance Marathon that raised over

$1,400 for the Boys and Girls Club Currently developing an undergraduate thesis that explores social media users’ willingness to

share and online privacy concerns Experience in network marketing Customer service experience working with a diverse population

Skills: Computer:

Social media experience including Facebook, Twitter, LinkedIn and Pinterest Microsoft Office including Word, Excel, PowerPoint and Publisher Adobe Photoshop and Pixlr online photo editor

Communication: Excellent written and verbal communication skills Basic verbal and written Spanish Reporting updates to the officers and faculty advisor of my organization Listening and willingness to experiment with new ideas

Work Experience: Ciena: Marketing Intern June 2014- Present Arbonne International: Independent Consultant July 2012- Present B Unique Boutique: Sales Clerk/Cashier January 2007 – December 2009

Education: Bachelor Degree; Marketing, Expected May 2015 The Honors College at Texas A&M University-Commerce, GPA 3.95

Organizations: President, Fusion Dance Crew, Texas A&M University Spring 2013- Spring 2014 Secretary, Fusion Dance Crew, Texas A&M University Fall 2012- Spring 2013 Member, Sigma Alpha Pi Society of Leadership and Success Spring 2013- Present Member, Alpha Chi Honors Society, Texas A&M University Fall 2013- Present

Honors/Awards

Honors College Scholarship (Academic: $60,000) Presidential Scholarship (Academic: $10,000) Phoenician Essay Award (Leadership: $3,000) President’s List Award (Five-time recipient) Dean’s List Award (Six-time recipient)

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Operating Facilities

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Resources

Apartment Ratings. (n.d.). Retrieved October 21, 2014, from http://www.apartmentratings.com/rate/TX-Arlington-Parks-at-Treepoint-111317856.html

Arlington, TX Neighborhoods Map & Guide. (2014). from http://www.areavibes.com/arlington-tx/neighborhoods/

Arlington, TX (Texas) Houses and Residents.(2012). From http://www.city-data.com/housing/houses-Arlington-Texas.html

City of Arlington (n.d.). Retrieved October 20, 2014, from http://www.arlingtontx.gov/parks/PROS/pdf/City%20of%20Arlington%20Population%20Growth%20Profile.pdf

Demographics of Arlington, Texas and Fast Facts. (2014). from http://www.arlingtontx.com/arlington-demographics

Efurd Properties. (2014, January 1). Retrieved October 20, 2014, from http://efurdproperties.com/

El Lider. (n.d.). Retrieved November 5, 2014, from http://www.ellidercarpetpaint.com/services.html

Pavilion Apartments. (n.d.). Retrieved October 20, 2014, from http://www.apartmentratings.com/rate/TX-Arlington-Pavilion-Apartments.html

Payscale.com. 2014. http://www.payscale.com/research/US/Certification=Certified_Public_Accountant_(CPA)/Salary

Small Business Loan Rate. 2014. http://smallbusiness.chron.com/average-interest-rate-small-business-loans-15342.html

Small Business Solutions. http://www.dallas-ecodev.org/wp-content/uploads/2012/07/SmallBusinessSolutionsBrouchure.pdf

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