Business Plan & Loan Proposal PDF

Preview

Summary

Detailed business plan and proposal to bank. This assignment is to request a loan to start up your business. Partner/group project....

Description

Business Plan and Loan Proposal

MC² Designs, LLC

Principle Designers

Letter to The Bank

November 21, 2018

Loan Officer Suntrust Bank 5775 Red Bug Lake Rd Winter Springs, FL 32708 RE: MC² Designs, LLC – Loan Request Dear Loan Officer, Please see the enclosed business plan for MC²Designs, LLC. We are a small interior design firm that specializes in hospitality design located in the Winter Springs area. Our company consist of four members with a combined total of 21 years of experience in the industry. As an up and coming firm, we have set short-term and long-term goals for our firm to ensure its success. In order to achieve these objectives, we are requesting a loan of $50,000. This loan will be used to cover startup expenses, licenses, office equipment, and office furniture for the first six months. We have already invested $240,000. We are eager to meet our objectives to create a successful business. Please review the enclosed business plan. If you have any questions, please don’t hesitate to call us. We are excited to be a part of the community and look forward to working with you. Sincerely,

Designer 1 Principal Interior Designer, IIDA

cc: Designer 2, Principal Interior Designer, IIDA Designer 3, Principal Interior Designer, IIDA Designer 4, Principal Interior Designer, IIDA

Encl: Business Plan

2

Business Summary 2.1 Business Partners Designer Designer Designer Designer

1 2 3 4

-

2600556 2600314 2600122 2600444

2.2 Business name MC² Designs, LLC IB26000999

2.3 The Business Formation The business formation will be a Limited Liability Company (LLC).

2.4 Location

3

2.5 Proposed Business Description MC² is a commercial firm which specializes in hospitality design. Our main goal is to provide highly economical and environmentally friendly design to the hotel industry. We as a team see the need to reform existing structures as well as create new spaces. Hotels are more than just places to stay in, they should be homes away from homes. Creating the right environment for customers allows for higher reviews and more hotel stays. Our team works diligently to create the best possible design and furniture layout for each room/common area. From the reception desk to outdoor pool areas we are dedicated to utilizing spaces to their maximum potential. We consider atmospheric and structural factors that best benefit both the staff and guests who stay. Our target market is both Central and East coast Florida hotels. Whether part of a chain or a boutique hotel, we include all price ranges from low end to high. As an all-inclusive company we work with every budget to better service all types of clientele. Our marketing strategy shows prospective clients that by remodeling their existing hotel/motel they are subject to a higher influx of guests and can charge more nightly for better quality stays. For companies who are building from the ground up, we tailor designs to fit their budget in order to give them what they are looking for in a cost-effective way. One of the things we pride ourselves on here at MC² Designs is how personalized our design experience is. We set realistic goals and expectations for our clientele to reach the most suitable outcome possible.

2.6 Services we provide Our talented designers have a total of 25 years of experience between us. We are a full-service hospitality design firm that creates distinctive, high-end design solutions to surpass customer expectations with a high level of professionalism and knowledge to create sustainable design solutions that will meet or exceed the client’s expectations. Services we provide:  Design consultation/analysis  Programming  Schematic and conceptual design, 3D drawings  Design Development/Conceptual Design  Specifications that are commercial grade, code compliant materials that are sustainable and environmentally friendly

4

   

Project management and installation Post occupancy evaluation to ensure client satisfaction ADA Compliant means of access Site & Energy analysis

2.7 Summary of owners’ expertise in design and operating a business: Owner 1, IIDA, We collectively are credited with the completion of the Daytona Beach Restoration Project. Our team single handedly managed and executed the reconstruction of 3 beachfront bed and breakfast locations. In a 18 month period we restored these B&Bs to their shining glory and brought them into the 21st century. Faced with the challenge of ensuring these properties are hurricane proofed and structurally sound, we ensured the structural integrity of the exterior was not compromised during this reconstruction. The four of us are highly experienced in working with specific requirements and expertise in unique situations. We continue to take extensive continuing education courses in exterior elements and building structures. My personal background is from residential kitchen and bath design. Working directly under the lead designer has greatly benefited me. I have learned and become proficient in 2020 design. I bring over a year of experience with material selection, space planning, client relationship building and budget planning to our group. While I was working with the operations manager, I created projected budget and goals timelines. This provided me valuable insight I can translate to our business. I’ve graduated for Seminole State with my bachelor’s in design then later completed my Master of Fine Arts in Interior Design at the Miami Interior Design School. Collectively I’ve designed over 100 home remodels as well as 20 new constructions. Owner 2, IIDA As one of the owners, the expertise and experience I will bring to the table will further our success as a hospitality interior design firm. I graduated with my bachelor’s in interior design at Seminole State College. I later went to get my masters in sustainable interior environments at the New York School of Interior Design. There I developed my knowledge in sustainability and learned how to create environments that help our planet without sacrificing aesthetics or comfort. Since then I have gathered years of experience in a variety of interior design jobs. I began as an assistant interior designer at CID Design group and later on was promoted to senior designer. My main experience comes from

5

hospitality projects. I have created high level concept and detailed designs for casinos, hotels, and restaurants. These years of knowledge and experience will help my partners and I develop our business.

Owner 3, IIDA, ASID, USGBC I am a licensed Interior Designer with 10 years of experience in commercial and hospitality design. Before joining MC ² Designs, LLC, I worked at Phil Kean Design Group for eight years where I was the lead designer in charge of all the FF&E selections, specifications and documents for the Grand Bohemian Hotel Orlando. While at Phil Kean, I worked on several other projects such as the Alfond Inn, Winter Park, FL where I created the design and worked on the project from concept to completion as well as other hotel and restaurant projects, some of which was for the Kessler Collection. Prior to working at Phil Kean, I worked at CVS Hospitality for seven years. While working there, I became proficient in space planning, color theory, design aesthetics, visual communication using 3-D technology and project management. My organizational and analytical skills were instrumental in my ability to complete my projects on time and under budget which contributed to our team earning the Hotel Management award of “Top Design Company” of 2012. I earned my Bachelor of Fine Arts in Interior Design with honors from the University of Florida. I am a member of the local chapters of American Society of Interior Designers, and the International Interior Design Association. Additionally, I am a licensed real estate agent and a member of Commercial Real Estate Women Orlando chapter and have served on multiple city and community boards in Orlando.

Owner 4, IIDA As one of the owners, my experience will assist in propelling our firm to success. After graduating with my bachelors at Seminole State, I went on to get my master’s in design at Florida State University. From there I worked for a variety of interior design firms throughout the state of Florida. I began at Baker Barrios Architects as a Junior Interior Designer, where I served for 2 years before becoming a Senior Designer. Following the 4 years there, I moved to HKS Architects where I’ve been for the last 3 years as a Senior Designer. As I have created a variety of high-end designs for hotels/ casinos, bars and restaurants and cruise lines. This experience will be used to further develop and succeed in our business.

6

2.8 Mission Statement Our firm is dedicated to creating unique environments that enhance client business needs and assist them in achieving branding goals. With dedication and passion, we strive to deliver memorable design and experience which enhances and compliments individual needs. Our goal is to provide comfort along with style while remaining on the cusp of the latest trends and technologies.

2.9 Short term & Long-term goals Short term 1. Increase the traffic to the business by 50% with the use of advertisements 2. Increase networking by 30% by hosting events 3. Enhance employee skills through program training 4. Reduce overall budget cost by 20% 5. Establish relationships with the vendors and reps

Long term 1. 2. 3. 4. 5.

Open a second location within the state. Increase revenue by $150,000 each year Reduce carbon emissions by 50% Return capital investments to the owners Employ design assistants and a project manager

Marketing Research and Market Plan

7

3.1 Enhancing the community MC² Designs will be the first hospitality interior design firm in the area. Currently, our specialty niche is in hotel design for chain brands or smaller boutique brands. Our presence in the community brings with it our contribution to the tax base which funds the school district, library system, and others that benefit all who live in the county. With the opening of our firm, we are creating and promoting a culture of business in the area which hopefully will encourage others to start businesses in the area that will be good for the local economy. Our location of Winter Springs is near one of the best design schools in the state. To pay it forward, we will partner with Seminole State College to host interns on a regular basis. This is an excellent opportunity to mentor and share our years of knowledge and experience to encourage and help students from the community enter the industry. That isn’t something our competitors aren’t doing. We’re just taking it a step further in bringing this opportunity into an area where it hasn’t been done before. Our competition offers all the expected basic design services. But what sets us apart from the competition is our personalized attention to detail. We realize that every client is unique, so we design with the careful consideration of our clients’ wants and needs to make their guests’ experience one that will keep their guests coming back time after time. We will ensure complete customer satisfaction by conducting a thorough post occupancy evaluation.

3.2 Design Services 



   

Design consultation/analysis - principal designers visit and measure preexisting structure to provide preliminary renderings and space planning layouts to best use interior space. Principal designers look at proposed blueprints to design interior spaces planned for development. Schematic and conceptual design, 3D drawings - AutoCAD and SketchUp renderings/layouts created by designers to help client envision new spaces. Construction documentation - Creation of electrical/lighting and plumbing plans for use by contractors and submission for permitting. Project management and installation - Principal Designers with help of Project Coordinator, oversee Post occupancy evaluation ADA Compliant means of access - Bathrooms and means of egress cess all

Marketing Research and Market Plan

8



Site & Energy analysis - Designers work with engineers and determine how much energy consumption is occurring in the building then actively work towards reducing overall levels.



Furniture and color coordination/consultations - Creation of themes or palettes allowing the building to flow aesthetically/seamlessly into one another

Demographics/Target Market      

Population 2,717,764 Median household income is $52,385 20.7% of the 1,298,492-million-person workforce is employed in the leisure & hospitality industry. Approximately 2.3 million square feet of industrial buildings are currently under construction with a vacancy rate of 4.3%. Target market (“traveling age group”) - 18-65 Male/Female International and domestic tourism rates continue to climb. Central Florida is known for its theme parks and attractions that further attract tourists. The rate at which individuals are likely to return to visit Florida is currently ⅔ of those surveyed.

Marketing Research and Market Plan 3.3 STATISTICS

9

1. A Our team has created a projected revenue graph as pictured above after reviewing our clients’ collective revenue. We, our team and clients, are currently on the upward trend. We are aiming to be at $110.33 million next year and $115.33 million in 2020. This is in the Orlando/Central Florida area alone. With our clientele and cooperative efforts, we are well on track to meeting and slightly exceeding this goal. Florida overall is seeing an exponentially increase upward trend for the remodel business. When the stock market crashed there was a large dip, but ever since 2010 there’s been a slow, but steady incline. Now more than ever is the opportune time to cash in on this revenue. Florida hotels are also quantifying total number of visitors in the hundred million.

1.B Top of the line hotels have raved about 2015 being an outstanding tourism year

Marketing Research and Market Plan

1.C From 2006-2010 Florida experienced a steady annual volume of visitors. After the market crash it took roughly 3 years for our influx to shoot back up to what we were expecting, and even exceed prior expectations. We’ve discovered that 86% of 9.8 our 20igh

Marketing Research and Market Plan 11

1.D 90% of Florida’s Visitors are traveling here for leisure purposes. Top reasonings being to vacation (40%) and visiting friends/family (25%). This is excellent for hotels as this accounts for longer stays in more desirable condition rooms. It is projected that between 2012 and 2032 consumer spending will increase by 58% (roughly $4.6 trillion). Nearly ⅔ of visitors plan to come back to Florida within the upcoming year.

Marketing Research and Market Plan 12

3.4 Compensation & Fees Hourly FeeHourly fees will be used for onsite consultations. Compensation for the design services will be based on:

  

Partners- $150 Hourly Designers- (When applicable)- $100 Hourly Design Assistants- (When applicable)- $15-20

Fixed Fee – Full Service on Project, fee depends on the scope of project.

Consultation Fees The designer will be compensated for consultation services on an hourly rate of $150-$200. Monthly invoice will be sent to client.

Cost- Plus Percentage Markup The designer will be compensated at a cost percentage markup at 25% for the cost of furnishings and equipment specified. Warehouse and delivery services will be subcontracted with a 25% cost percentage markup and invoiced directly to client.

Payroll       

Each member will receive an annual salary of $40,000 Office Administrator is full-time and will receive $30,000/year Interior Design Assistant is a part-time position and will receive $15/hour General Contractor is full-time and will have an annual salary of $50,000 Accountant is full-time $55,000/year Project Architect position is contract Electrician position is contract

Marketing Research and Market Plan 3.5 Direct Competitors 13

L2 Studios Address: 109 E Church St, Orlando, FL 32801 Phone: (407) 648-8888

Hospitality Resources and Design Address: 919 Outer Rd, Orlando, FL 32803 Phone: (407) 855-0350

SENA Hospitality and Design, INC Address: 941 Lake Baldwin Ln, Orlando, FL 32814 Phone: (407) 730-9996

KBCO Designs Address: 641 Bryn Mawr St, Orlando, FL 32804 Phone: (407) 839-1124

3.6 Marketing Plan The marketing strategy will be essential for us to create an overall game plan for reaching people and converting them into loyal clients. We will be able to develop a strong client base and establish connections with them. Networking: Building contacts and rapport with appropriate professionals and clientele in a social environment will create opportunities for MC Squared Designs.

    

Creating relationships with realtors, architects, and contractors Fundraising events Connecting with other Interior Design Firms and Vendors Networking at Hospitality conventions like Boutique Design Trade Fair and International Hotel Technology Forum Networking at Interior Design Conventions like Neocon

Marketing Research and Market Plan Advertising: With appropriate advertising we will create awareness for our firm and attract customers.

 

Creating an informative and attractive website to attract clients Creating small biographies on the principle designers to have a more personable feel 14

 

Having an attractive portfolio of our previous projects Advertising our firm in hospitality and interior design Magazines

  

Interior Design Magazine Hospitality Trendz Magazine Luxury Hospitality Magazine

Social Media: Will be an effective tool to network with our target audience and build relationships with fellow professionals.

  

Instagram page to display new designs. Facebook to promote events Twitter to draw more attention to specific day by day things.

Promotional Give Aways with Logo

   

Pens Journals with rulers attached Mugs Flash Drives

Marketing Research and Market Plan 3.7 Specific Marketing Plan Our marketing plan involves an advertising strategy that will help our firm to achieve our short-term and long-term goals. Our short-term goal is to increase our brand awareness and highlight the services we offer to generate new business with the use of advertising. Since we are a new company, we will feature 3-D digitally enhanced renderings of our design aesthetic to deliver the exposure we need to introduce our brand to the marketplace. We will also utilize search engine optimization (SEO) to ensure the best search results for the website. Also, 15

marketing software such as Google Analytics will enable us to track and report traffic to our website. In addition to the website, we will start a blog and other social media platforms such as Facebook, Instagram, and Pinterest. They will be informative and fun with a lot of visuals. Per Brain Rules by John Medina, when people are only given data, they only remember 10% of it three days later. But when visuals accompany that data, they remember 65% of it. Our social media strategy is to stay relevant by posting several entries weekly on all social media platforms. In addition to social media, attending trade shows are another great marketing strategy. networking events. They give us the opportunity to network and form relationships with hoteliers, investors, suppliers and vendors who are the driving forces in the hospitality industry. build our brand an...