Business Plan for JMB Landscaping - Case Study Example

1.0 Company JMB Landscaping is a reputable company in the landscaping business providing lawn care for commercial/residential landscapingto clients with exceptional service. JMB has built a long reputation of providing quality services to clients in a timely manner. JMB has also built its reputation by consistently providing customers with quality services within the budget. The landscaping business is an outdoor business that can significantly market itself when the work has been done well. The key to success in the landscaping business is creativity and the ability to interpret the customer’s desires and imaginations into actual physical beauty. 1.1 Vision and Mission Statement of the Company The mission statement of the company will be the basis of the company’s marketing strategy and the creation of the company’s image as a brand. Already the company has a reputation of offering quality services in a timely manner and within budget. The company’s mission statement will therefore be “JMB Giving Landscaping Holistic touch of Creative Art.” The aspect of imagination will portray the company’s intention to apply creativity innovation and invention towards ensuring that consumers enjoy unique landscaping services because creativity cannot be easily reproduced but requires talent. At JMB our visions will be to turn imagination into reality to ensure that our customers enjoy unique and customized services and that the outcomes have the uniqueness and aesthetics only found in art. In addition we believe in keeping of time and operating within the customer’s budget. Once you give us the contract you will only have to sit back and wait for your finished product. 1.2 Uniqueness Currently JMB has built reputation among small scale consumers. The company is now targeting contractual agreements with corporate partners to increase on the volume of contracts and to be able to make future projections. The company will depend on its capacity to deliver quality services in a timely manner and to add artistic creativity to landscaping. According to Ingels one of the ways to attain competitive advantage that cannot be easily reproduced by rivals in landscaping business is by applying graphic and design art to landscaping (15). The company will employ the services of reputable graphic designers and computer animators whose work will be to create visual images of designs for display to customers. The graphic designers and computer animators will also be able to turn the imaginations of the consumer into 3D images to allow the consumer to have a taste of what the finished products will look like. As other businesses take advantage of advances in Information Techonology, JMB aims at being one of the first to have 3D images on its website to allow customers to have previews. 1.3 Keys to Success As outlined by the Atlantic Group Publishers, the key to success in the landscaping business is identifying a specific area of interest and proficiency and being able to concentrate on that area (24). JMB has already identified an area in landscaping around the area of Southeast Michigan that is untapped but that has potential. Most companies just reproduce landscaping ideas and do not significantly invest in creativity and innovation. There seems to be a trend by companies to reproduce ideas. JMB will concentrate on creating landscaping designs, applying art and offering customized services to customers in order to give landscaping a unique touch. Although JMB will still be involved in other aspects of landscaping such as management or lawns and nurseries, the major focus will be a look at how the whole landscape will look and ensuring that it is artistic. The other aspects can be subcontracted to other smaller companies that specialize in the specific areas. By looking at the landscape as a whole and not separately in terms of the house, the garden, the trees, the flowers and the lawns, JMB will be able to create value for corporate clients such as real estate developers. 2.0 Market and Industry Analysis 2.1 Macro-environment The Southeast Michigan Council of Governments (SMCG) already has comprehensive provisions and partnership that promote the maintenance of communities and neighborhoods. The SMCG supports the maintenance of lawns and cleanliness, and ensuring that planning is effectively adopted to ensure easy accessibility and aesthetics in all areas under the jurisdiction of SMCG. One of the municipal codes actually requires residents to effectively maintain the exteriors of their houses failure to which penalties will be applied (Southeast Michigan Council of Governers). SMCG also has provisions and codes that govern land utilization and environmental factors that should be placed into consideration during land usage. For instance, the use of chemicals for flower gardens and lawns should follow guidelines as provided by Southeast Michigan. The general realization is that JMB will work closely with SMCG and local municipalities to ensure that they follow the codes as stipulated in the law with regard to land usage. According to report by Szczesny, Southeast Michigan has been showing a significant growth in its economy with indices of region like Detroit showing an increase of 56.3. An overall growth in economy in the region implies that more people will be in need of homes while some will need renovations. The SMCG through Comprehensive Economic Development Plan (CEDP) also encourages economic development through increased business and enterpreneural initiatives (Southeast Michigan Council of Governers). CEDP also offers economic assistance to businesses. JMB stand to gain the support of SMCG, because JMB will be promoting the economic development of Southeast Michigan through the creation of jobs, increased investement and increased tax remittance as the company continues to grow. In addition, JMB will also be promoting prosperity of Southeast Michigan by increasing competition within the landscaping business. In field of computer and IT, JMB will have to outsource for skilled manpower because the region rather lacks a comprehensive computer technology and information technology industry. By outsourcing manpower in these fields JMB will make it difficult for competitors to reproduce the strategies it uses to attain competitive advantage. Internet connectivity is fairly good and JMB is assured that it will have access to most of the internet users in the region during marketing. 2.2 Market Analysis Southeast Michigan operates a lucrative real estate business and JMB seeks to tap into the successes of real estate developers through corporate partnerships. Although the prices of homes have been increasing and the number of homes sold decreased, these changes are very minimal and a report by SMCG predicts an increase in sales and a further increase in the prices as the U.S. economy eases out from economic strains. As more homes are built and sold, JMB will be certain of market availability for its products because more real estate developers will require unique landscaping services and more homeowners will be in need of landscaping services. Competition will be fairly stiff in Southeast Michigan considering that apart from the local small landscaping businesses, there are also national landscaping companies that target the Southeast Michigan market. However, JMB will only need to establish competitive advantage against the local rivals because the big nationals landscaping companies have little impact on the region perhaps due to their remote locations. 3.0 Implementation and Marketing Strategy The implementation and marketing strategies will serve as groundbreaking initiatives both in giving the company a good image and enabling the company to curve a solid niche in the landscaping business in the Southeast Michigan region. According to Doole, most of the fastest growing companies in the current business world like WalMart and Google employ strategies aimed at loering the cost of production to ensure that consumers enjoy fair prices (147). JMB will also seek to employ unique strategies to ensure that the cost of production is cheapt and that the services are lower as compared to other competitors. JMB will set a specific date for the launch of its new products and invite players in the real estate business, SCMG and other players in the real estate industry for the launch. The launch will incorporate a comprehensive presentation that will allow stakeholders to understand the major objectives of the new product and how the various stakeholders will have business opportunities in the new product. By showing the stakeholders that they will also benefit from the new product, JMB will stand even greater chances of business. After the initial launch JMB will then target the corporate partners and the small landscaping business individually and discuss with them various ways to take the landscaping business to the net level by incorporating graphic design, computer technology and IT. JMB will seek promotional partners of related products such as real estate developers and in doing the promotions together JMB will both have a wider access to customers and reduce the cost of marketing and implementation. JMB will also re-launch its website and incorporate 3D images of various unique ladnscaping designs. These strategies will ensure that JMB has reduced the cost of implementation and marketing and in return JMB will be able to offer customers fair prices for the quality services it offers. 4.0 Management Team JMB will have a single CEO overseeing all its activities. Below the CEO there will be four mangers dealing with Corporate clients, Individual clients, Graphic and design development and creativity and a manager for the subcontracting businesses. The management fashion will be as shown in Chart 1. Chart 1 Although the CEO will be overseeing all the duties of all the managers, all the other managers including the Graphic and design development and creativity manager, all the other managers will be dependent on the activities of the Graphic and design development and creativity manager because the main niche for the company will be in the artistic design of landscapes. The company will always strive to reduce the number of employees by working with reputable sub-contractors. In essence, JMB will play the major role of coming up with new designs for landscaping and developing professional and specialized approaches in landscaping. 5.0 Financial Analysis The projected vertical analysis for JMB for the next seven years is as outlined in figure 1 Figure 1: Income Analysis Year 2012 2013 2014 2015 2016 2017 2018 Revenue 100% 100% 100% 100% 100% 100% 100% Cost of production 90% 85% 80% 75% 70% 65% 60% Gross Profit 10% 15% 20% 25% 30% 35% 40% Administrative Expenses 2% 3% 4% 5% 6% 7% 8% Operating Profit 8% 12% 16% 20% 24% 28% 32% Tax Expenses 1% 2% 2% 2% 2% 3% 3% Projected Profits 9% 10% 14% 18% 22% 25% 29% Cost of production will be the major source of expenses for the company but the company will also aim at reducing cost of production by 5% every year through cost reduction. By 2018 the company seeks to have a projected profit of 29%. 6.0 Investment Opportunities For the first five years JMB seeks to develop significantly from the financial provisions of SCMG. SCMG through CEDP gives financial assistance to companies that promote the development of the economy of Southeast Michigan. JMB will also aim at obtaining financial assistance from banks in instances when urgent capital is needed. As the company grows it will also be important to generate capital through initiatives such as selling of company shares. JMB will build a reputation in the Southeastern Michigan to ensure that investors are comfortable in investing in the company. Financial stability is also another strategy of attracting potential investors that can pump in their money into the company. JMB will also seek to invest in small scale landscaping companies by acquiring them and outsourcing the management of those companies. 7.0 Business Organization JMB will be a limited liability company (LLC). A limited liability company will always ensure that the interest of the owner is protected and that managers always strive to make the company more profitable. The LLC will also ensure that the private property of shareholders and the owners are protected in case the company experiences financial difficulties. In addition, JMB will always have the chance of attracting new shareholders. When the company operates as a limited liability company all the stakeholders will always strive to nurture JMB for mutual benefits. 8.0 Internal Investment Strategies The major source of internal investment for JMB will be to request for the partners and employees to purchase shares from the company. However, 70% of the total shares will be sold to the employees of the company’s employees. 70% of the 30% sold to the company’s employees will be sold to the senior employees and the other 70% sold to the other employees in the company. By selling the majority of the shares to the employees, the company will maintain the ownership of the company within the company and ensure that employees are motivated. By allowing employees to buy a bigger share of the company, JMB will give them a sense of belonging to the company and perhaps improve their productivity. Provision of shares to partners will improve the relationship with the partnering companies. 9.0 Articles of Organization of JMB The Article or organization will be drafted in accordance with the laws applicable in State of Michigan. Articles of Organization for JMB Landscaping Limited Liability Company The Owner of the Company hereby assumes the provisions of these Articles ARTICLE 1 Name The limited liability company is called JMB Landscaping Limited Liability Company ARTICLE 2 Physical and mailing address . . . . ARTICLE 3 Agent Name: Physical Address: ARTICLE 4 Statement of acceptance by agent I………………………………….hereby accept to the initial registered agent of the limited liability company outlined in these Articles of Organization hereby known as JMB Landscaping Limited Liability Company. . . Signature of agent ARTICLE 5 Lifespan The lifespan of the limited liability will be until that time that the owner or as determined by the government liquidation becomes necessary. ARTICLE 6 Management The limited liability company will be managed by the CEO (chief executive officers) and under the CEO there shall be five managers known as the Corporate Clients Manager, Individual Client’s Manager, Finance and Marketing Manager, Contracting Business Manager and Graphic and Design and Creativity Manager. ARTICLE 8 Initial Capital The initial capital will be contributed by the owner of the company and the sum will be $3 million (U.S. dollars three million). ARTICLE 9 Aim The limited liability company will conduct all businesses related to landscaping as stipulated by the law and will not engage in any unlawful businesses. The limited liability companies will also limit its operations to the provisions provided for limited liability companies according to the law. ARTICLE 10 Liability All debts and obligations shall solely be left upon the company and the owner, managers or shareholders shall not be liable to such debts and obligations. ARTICLE 11 Organizer I………………………………carry out the provisions of this Articles of Association on date . . Signature of the organizer 10.0 Contractual Agreements 10.1 Contractual Agreements with Corporate Partners Contract Agreement Date……………………………. JMB Landscaping Limited Liability Company and………………………………. Description of the services………………………………………………………… JMB Landscaping Limited Liability Company will provide the following services: 1………………………………………………….. 2………………………………………………….. 3………………………………………………….. 4………………………………………………….. 5……………………………………………………. The agreements has been made on the date of……………………………………….. Between JMB Landscaping Limited Liability Company and………………………….. (And will include any other legal individuals or companies hereby referred to as party or parties). WHEREBY JMB Landscaping Limited Liability Company has agreed to provide the following services by date………………… at a cost of……………………………….. 1. …………………………………………………………………………. 2. ………………………………………………………………………… 3. ……………………………………………………………………….. 4. ……………………………………………………………………….. 5. …………………………………………………………………………. 6. ……………………………………………………………………….. In addition to the legal provisions by the State of Michigan that govern contractual agreement JMB Landscaping Limited Liability Company and……………….shall 1. Ensure that all issues are addressed between the two organizations and their representatives and not through other parties. 2. Ensure that no services will be delivered unless the full agreed upon amount is paid. 3. JMB Landscaping Limited Liability Company to ensure that services are delivered in a timely manner and within the budget. 4. Ensure that all legal provisions governing the contractual agreement are met. 10.2 Contractual Agreements with Small Scale Landscaping Companies Contract Agreement Date……………………………. JMB Landscaping Limited Liability Company and Company B Description of the services………………………………………………………… Company B will provide the following services to JMB Landscaping Limited Liability Company 1………………………………………………….. 2………………………………………………….. 3………………………………………………….. 4………………………………………………….. 5……………………………………………………. The agreements has been made on the date of……………………………………….. Between JMB Landscaping Limited Liability Company and Company B (And will include any other legal individuals or companies hereby referred to as party or parties). WHEREBY JMB Landscaping Limited Liability Company has agreed to provide the following services by date………………… at a cost of……………………………….. 7. …………………………………………………………………………. 8. ………………………………………………………………………… 9. ……………………………………………………………………….. 10. ……………………………………………………………………….. 11. …………………………………………………………………………. 12. ……………………………………………………………………….. In addition to the legal provisions by the State of Michigan that govern contractual agreement JMB Landscaping Limited Liability Company and……………….shall 5. Ensure that all issues are addressed between the two organizations and their representatives and not through other parties. 6. Ensure that no services will be delivered unless the full agreed upon amount is paid. 7. JMB Landscaping Limited Liability Company to ensure that services are delivered in a timely manner and within the budget. 8. Ensure that all legal provisions governing the contractual agreement are met. 11.0 Employment Handbook Becoming an Employee at JMB 1. JMB shall ensure that it gives fair opportunities to all applicants and that all vacant positions are advertised in the dailies. 2. Successful applicants will undergo a probation period of 2 months for junior employees and 4 months for senior employees. 3. Successful applicants will be entitled to 75% of their salary during the probation period 4. Successful applicants will be required to undergo all the training sessions. 5. Only those applicants that undergo the full probation period and attend all the training sessions will be absorbed into the company. Leaving JMB 1. All employees shall be free to leave JMB and no employee will be forced to stay at JMB against their will. 2. Applicants may either leave through resignation or through retirement otherwise no benefits will be accorded. 3. Resignation should be done 3 months prior to exit to allow the company time to process the benefits and look for replacement. 4. Retirement should be done 6 months prior to exist to allow for the company time to process benefits and look for replacement. Diversity and Equality 1. At JMB all employees will be treated with dignity and no employee should be discriminated against because of culture, race, disability or religion. 12.0 Employment Contract between the C.E.O and JMB Employment Contract Date………………………………………………….. The following employment contract will be between JMB limited hereby known as the employer and the C.E.O hereby known as the employee. Employers Name: Address Employee Name: Address: Job Title Responsibilities of Employees 1. Overseeing all the financial, human resource, marketing and customer care at JMB limited. 2. Ensuring that all taxes due is paid in a timely manner. 3. Ensuring that all JMB remains a profitable organization. 4. Ensuring that JMB operates within the legal provisions of the State of Michigan. Hours of Work 1. The employee will be expected to work 8 hours a day for 5 days every week excluding national holidays. Additional hours undertaking the duties of the company will be counted as overtime and paid accordingly. Salary The employee will earn a net salary of $80,000 including allowances and deductions on a monthly basis. Salary increment will depend on merit and will take place annually. The rate of increment will depend on the nature of the merit. Bonus Plan The employee will be entitled to a bonus of 20% their net salary following a revenue increase of more than 5% every month. Leave The employee will be entitled to a family and holiday leave for two months every year. Pension The employer will be responsible for the pension services of the employee and monthly deductions will be made from the gross salary. The employee will be entitled to the pension once they retire. Dismissal Dismissal will follow continuous gross misconducts after 3 warnings and 3 probations. 13.0 Contract Agreement between Graphic Designer and JMB Limited Employment Contract Date………………………………………………….. The following employment contract will be between JMB limited hereby known as the employer and the Graphic Designer hereby known as the employee. Employers Name: Address Employee Name: Address: Job Title: Responsibilities of Employees Generating graphic and design images of landscaping strategies according to the ideas of landscapers and customers Hours of Work The employee will be expected to work 8 hours a day for 5 days every week excluding national holidays. Additional hours undertaking the duties of the company will be counted as overtime and paid accordingly. Salary The employee will earn a net salary of $25,000 including allowances and deductions on a monthly basis. Salary increment will depend on merit and will take place annually. The rate of increment will depend on the nature of the merit. Leave The employee will be entitled to a family and holiday leave for two months every year. Pension The employer will not be responsible for the pension services of the employee. Dismissal Dismissal will follow continuous gross misconducts after 3 warnings and 3 probations 14.0 Real Estate Plan for JMB Limited 14.1 Locality JMB limited will acquire a property away from the city due to the nature of business involved and the nature of front office the company will need. The company will acquire an office in a area that will allow for landscaping and have the look and the feel of a home to give the customers a feel of what they should expect from the company. 14.2 Real Estate Agreement The following will be the sale agreement between JMB Limited and the landowner SALE OF LAND AGREEMENT The following agreement is a sale of land agreement between Sam Nior hereby known as seller and JMB Limited hereby known as the buyer for the sale of piece of land situation in [Insert an address you are familiar with and other land details]. I the seller…………………………………hereby agree to sell the property [Insert an address you are familiar with and other land details] to the person hereby known as the buyer at an amount of $200,000. I the buyer JMB Limited agree to buy the property [Insert an address you are familiar with and other land details]. Seller Name………………… Address………………. Signature…………………. Buyer Name………………… Address………………. Signature…………………. Witness Name………………… Address………………. Signature…………………. Witness Name………………… Address………………. Signature…………………. According to the zoning ordinance of Detroit Article 4(4), no alterations shall be allowed to convert homes into offices (Southeast Michigan Council of Governors). In a bid to create a home environment and at the same time use the premise as offices JMB will have to make several alterations some of which may be restricted by Article 4(4) of the zoning ordinance of Detroit. JMB plans to acquire premises to act as offices in all the major cities in Southeast Michigan so as to blend in the culture of those cities. JMB also seeks to incorporate culture of respective cities into its provisions customizing services. Works Cited Atlantic Publishing Group. How to open and operate a financially successful landscaping, nursery, or lawns. Atlanta: Atlantic Publishing Group, 2010. Print. Doole, Isabel. International marketing strategy: analysis, development and implementation. New York: Cengage, 2008. Print. Ingels, Jack E. Landscaping Principles and Practices. New York: Cengage, 2010. Print. Southeast Michigan Council of Governors. "Creating Success in Southeast Michigan." 2011. Southeast Michigan Council of Governors. 11 December 2011. Web.. Szczesny, Joseph. "Index showing Southeast Michigans Economy Growing." 7 January 2011. The Oakland Press. 11 December 2011. Web.. Read More