ABSTRACT

(Construction Accolades Residential Entrepreneurs)

Building and Construction Pty Ltd
Business Plan Document dated 13th Oct 2014

CARE Building and

Construction Pty Ltd

by JOEY LOH, FERNANDO FREITAS, ROLAND LING

for BUIL1249 CONSTRUCTION ENTERPRISE

CARE Building and Construction Pty Ltd

Business Plan

Table of Contents
1.0

Executive Summary................................................................................................................ 2

1.1

Purpose of Business Plan .................................................................................................... 2

1.2

Description of Business ...................................................................................................... 2

1.3

Target Markets................................................................................................................... 2

1.4

Market Positioning ............................................................................................................. 3

1.5

Strategic Direction.............................................................................................................. 3

1.6

Executive Management Team ............................................................................................ 3

1.7

Financial Factors ................................................................................................................ 4

1.8

Summary of Risk & Opportunities....................................................................................... 4

2.0

Business Description .............................................................................................................. 5

2.1

Registration Details ............................................................................................................ 5

2.2

Company History ................................................................................................................ 5

2.3

Company Legal Structure ................................................................................................... 6

2.4

Business Organization Chart ............................................................................................... 7

2.5

Vision Statement ................................................................................................................ 9

2.6

Mission Statement ............................................................................................................. 9

2.7

Key Business Objectives ..................................................................................................... 9

2.8

Roadmap ......................................................................................................................... 10

3.0

Products and Services .......................................................................................................... 11

4.0

Markets and Competition .................................................................................................... 12

5.0

Marketing ............................................................................................................................ 14

6.0

Financial Goals and Requirements ....................................................................................... 20

7.0

Positioned For Success ......................................................................................................... 21

APPENDIXES .................................................................................................................................... 22
APPENDIX A1 CASH FLOW MODEL ........................................................................................ 22
APPENDIX B1 PUBLIC LIABILITY INSURANCE POLICY............................................................... 22
APPENDIX B2 BUSINESS INSURANCE POLICY.......................................................................... 22

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CARE Building and Construction Pty Ltd

Business Plan

1.0 Executive Summary

1.1 Purpose of Business Plan
In any successful business, having a well thought out business plan and strategy is key to
business survival and winning in the market. This documents aims to succinctly and
concisely lay out the game plan of our company named CARE (Construction Accolades of
Residential Entrepreneurs) Building and Construction Pty Ltd.

1.2 Description of Business

CARE Building and Construction Pty Ltd is a small medium business company established in
July 2014. Core business model is to be Melbournes top SMB firms that provide one stop
profession service provider for residential and commercial properties with a keen niche
specialisation of Victorian heritage home restoration works and services. Business core
values hinges on energy saving technology and environmental sustainability factors where
appropriate during the planning and design process with our clients and customers.

1.3 Target Markets

Target markets are centred on Melbourne inner city property owners, both residential and
commercial as well as Victorian home owners living in Melbourne City.
Key target market segments in the heart of Melbourne City as follows:

Residential properties

Commercial properties

Modernising Victorian houses - niche capability

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1.4 Market Positioning

CARE Building and Construction Pty Ltd will be positioned as a diversified construction and
design company positioned for strong success and growth in the Melbourne property
market with limitless potential with strong trends of city living being prevalent with high
flyers and corporate professionals. More detailed market positioned is outlined in the later
section of this document at section 5.2

1.5 Strategic Direction

Key strategic direction of the company is to become one of Melbournes top Small and
Medium Construction Company in the next 3 to 5 years with AUD$100M annual revenue
achieved and high market capitalisation achieved. Being able to differentiate ourselves with
large pool of competitors is a key element of success and we believe in building a high
performing culture. Attracting and retaining top talents in the construction industry will
form a core component of our companys strategic plans and future direction that is
ffocused on providing the best service to our customers and partners.

1.6 Executive Management Team

CARE Building and Construction Pty Ltd executive leadership team is backed with
international and a successful track record in the construction industry. With a strong
executive leadership team with clear business strategy that can be executed effectively as
well as having lean company structure with right people and right skillsets the company is
set up well move forward successfully.
Below are the executive management team: Ms Joey Y S Loh, CEO & Managing Director
Ms Loh is appointed as CEO brings a wealth of experience in leading marketing and
customer relationships in her various management roles at JTC Corporation for more than a
decade. She has been awarded and recognized as a winning innovator and forward leader in
the commercial property and construction industry in Singapore and Asia Pacific.
Mr Fernando M Freitas, Managing Director
Mr Fernando is appointed as VP of Sales and Operations. He has more than a decade of
successful track record in the industry and is reputed as a thought leader and upcoming
executive to watch in the construction industry in Asia Pacific region.
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Business Plan

Mr Roland Z L Ling, Managing Director

Mr Ling is appointed as Chief Financial Controller and company secretary. He currently sits
on the board of various start-up companies head quartered in Asia Pacific and Japan region,
as non executive advisor. He is a veteran who brings in a depth of financial management
experience with an impressive track record in leading start-up companies to navigate and
grow beyond the USD $1B mark.

1.7 Financial Factors

Business start-up capital: AUD $1.5M
Our financial forecast and outlook for the first quarter of business operation is AUD
$105,000 and net income of AUD $151,300 by end of year one.
High level Revenue goal and financial projections: with a target of YOY 40 % growth rate and
estimated return of investment estimated at 15-20% growth.
o Year 1: AUD $420,000
o Year 2: AUD $600,000
o Year 3: AUD $780,000

1.8 Summary of Risk & Opportunities

Risk

Opportunities
Market Slow down

Diversified services . Be
a preferred approved
vendor for Melbourne city
council and relevant
government entities

Suppliers/subcontractors
going out of business

Establish more than one

supplier and contractor
relationship to mitigate
this risk.

Lack of good skilled

workers/team

Attract and retain top

talents in construction
industry with good career
growth prospects and
professional training

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2.0 Business Description

2.1 Registration Details
Business name: Construction Accolades Residential Entrepreneurs Building and
Construction Pty Ltd
Trading name(s): CARE Building and Construction Pty Ltd
Date registered: 1 July 2014
Location(s) registered: Victoria
Business structure: Company
ABN: 47396824574
Domain names: www.carebuildconstruct.com.au
Business location: 1 Queens Road Unit 201 St Kilda Road Towers Melbourne VIC 3004

2.2 Company History

CARE Building and Construction Pty Ltd is a small medium business company established in
July 2014. The companys key value hinge on being a one stop profession service provider
for Victorian heritage home restoration, as well as restoring old residential and commercial
fit out in the Melbourne city area. Special care on ensuring environmental sustainability are
factored and integrated into the planning process of all projects undertaken.
We are starting the company to achieve our following goals:

Financial independence
Create jobs
Self achievement
Work-life balance
Sustainable development
Preserving heritage

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Business Plan

2.3 Company Legal Structure

CARE (Construction Accolades of Residential Entrepreneurs) Building and Construction Pty
Ltd is incorporated as a private limited company. We have decided to operate the business
in this structure for the following reasons:

liability for shareholders is limited

ease of ownership transfer by sales of shares to another party
shareholders (e.g. family members) can be employed by the company
the company can trade anywhere in Australia
favorable tax rate of 30%
access to a wider capital and skills base

The shares distribution is illustrated in the following Figure 2.3.1: -

CARE Building & Construction Pty Ltd

Shares Distribution

30%

35%

Fernando Frietas
Joey Loh
Roland Ling

35%

Figure 2.3.1

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Business Plan

2.4 Business Organization Chart

The following organisation chart Figure 2.4.1 shows our organization chart at start up phase.

Figure 2.4.1

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Business Plan

In 36 months, the company aims to bring house the supporting functions of Legal and
Human Resources as outlined below in Figure 2.4.2

Figure 2.4.2

There will be minimal changes planned to the organisational structure to ensure a good
stable organisation structure design on the onset where possible. There may some
reallocation and renaming of duties. Possible expansion with hiring a suitable candidate for
the fourth director position, or invite a suitable shareholder to head the Legal and Human
Resource Department. In addition, we will smaller functional teams managing the scope
under each director.

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Business Plan

2.5 Vision Statement

Living the Melbourne Dream and restoring Our Victorian Heritage

2.6 Mission Statement

CARE Building and construction Pty ltd aims to provide our Melbourne city dwellers a total
end to end, one stop residential property restoration service and specializes in modernizing
Victorian heritage homes.

2.7 Key Business Objectives

The company aims to grow its current portfolio to AUD $100M revenue and 10-20% margin
growth YOY, with a high appetite and aggressive strategic growth plan to establish itself as
one of Melbournes top SMB (Small Medium Business) construction firms for residential
property restoration in the next 3 to 5 years.
With its strategic focus on Victorian heritage residential restoration as a niche market in
Melbourne City, CARE Building and Construction Pty Ltd sets itself apart from key
competitors in the industry. While Melbournes inner city property scene is booming, there
is also a huge market of ageing properties, which equates to business opportunities for our
company.
Being a one stop service provider in this niche market will require the company to build key
and successful relationships as well as a wide network of suppliers, contractors and
potentially distributors and channel partners in the ANZ region. This will be one of the key
success factor and element that will form part of the companys strategy and growth plans.
Environmental sustainability is core to the companys vision to integrate into the solutions
provided to their customers and the need to balance cost effectiveness with energy
efficiency is paramount to the companys promise and aim of providing high quality
solutions and services to their customers in all projects undertaken.

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2.8 Roadmap

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3.0 Products and Services

Our products and services offer our customers end to end solution on renovation works for
Melbourne City residential and commercial properties. From the initial consultation process
all the way through to the end of the project, our team will work with you to ensure you
achieve the desired results for your home. We can assist with:

Design and construction services

House Build & Extensions
Interior Design
Project Management
Kitchen Specialists
Bathroom Specialists
Decking / Flooring
Rendering
Structural Welding
Roofing
Plumbing
Plastering
Cabinet Making
Rising Damp
Waterproofing
Paving
Concreting
Underpinning
Insulation

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Business Plan

4.0 Markets and Competition

4.1 Target Market
Our extensive market research shows that Melbourne City and city fringe houses have a
high potential for renovation. Also, In view of the property boom in Melbourne currently,
there are also high business opportunities to work with established builders as a building or
fit out subcontractor. The high density of commercial units and small business owners are
also potential business opportunities.

SOURCE:
Australian Bureau of Statistics

SOURCE: RESIDEX REPORT

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Business Plan

4.2 Competitive Factors/Strategy

To build our customers database, we will be keeping ourselves updated on the property
launches. We believe by placing the company out in the market will gain us visibility. We will
also link up with established realtors such as Central Equity; we offer attractive value for
money renovation package for house buyers.

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Business Plan

5.0 Marketing
5.1 Market Research

SOURCE: RESIDEX REPORT

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Business Plan

5.2 Market Positioning

Core Business
Services Provided

Target Market
Credentials
Key Message

Construction & Renovation company

Property renovation & modernization
Specialise in Victorian Heritage restoration

One stop shop for residential and commercial renovation needs

Consultation on design and construction requirements
Energy efficiency consulting and implementation

Melbourne City home owners and developers

City commercial and residential properties
Victorian house owners

Backed by an experience Executive Management Team with

international construction expertise

Aims to be the one stop professional service provider for

Victorian heritage home restoration, Melbourne city residential
and commercial properties

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Business Plan

5.3 Target Audience

SOURCE: RPDATA

5.4 Marketing Strategy

With thriving social media, internet advertising is an affordable and efficient way of getting
noticed. We plan to engage wed designers for a professional website, which will feature the
companys completed projects. We believe in word of mouth, and clients testimonials will
be our best advertising tools.
We will also market our business through traditional way of publications in the local news,
trade industries journals and newsletters, distribution of brochures in the indentified
suburbs, attending property launches, and participating in property shows.

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5.5 Client Service/Follow-Up

Customers remember businesses that provide good customer service. As part of our
commitment to customer service, we ensure maintaining strong relationship with clients
and partners. This helps build customers' loyalty and generate repeat sales
We know all customers appreciate personalized care and attention, we make it part of our
business to pay attention their needs and interests. We also engage our customers by
keeping in touch with festive greeting cards, personalized birthday cards and social media
channels such as Facebook and Instagram.
We also offer incentives for business recommendation or new customer referrals if they are
satisfied with our service.

5.6 Company Location

We are located at St Kilda Road Towers at 1 Queens Road, right in the heart of the St Kilda
Road business precinct; only 5 minutes from the Melbourne CBD and variety of tram lines
and buses allows clients to reach us easily. Affordable monthly rental of AUD $1,000 is
within our budget, and having a fronting office allows for professionalism, reliability,
reputation and provides exposure in the vicinity. Strategically located in the business
precinct also allows for business opportunity in the area.

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Business Plan

5.7 Insurance
Having adequate insurance coverage for our business is important. CARE Building and
Construction Pty Ltd is covered by CGU Insurance. Below is the list of insurance covered by
CGU for CARE Building and Construction Pty Ltd, more details on the policies can be
referenced in APPENDIX B section.
On Workers compensation: All employees will be covered under Workers Compensation
during their employment term with us.
On Public liability insurance: We are covered under Public Liability Insurance up to AUD
$5M.
Trade Insurance
Construction Insurance
Public Liability
Tools Insurance
Machinery & Equipment
Worker's Compensation

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Business Plan

5.8 Risk Management

Part of our risk management strategy is to ensure we undertake project size above AUD
$1M. In addition, below is a summary of the potential risks identified with corresponding
potential impact analysis and recommended strategy to mitigate these risk scenarios.

Potential Risks

Likelihood

Impact

Strategy

Market slow down

Likely

High

Diversify our services. We

planned to prequalify for
council jobs in times when
the construction industry
slows down. Always stay
abreast of what is
happening in the industry.

Suppliers/subcontractors
going out of business

Likely

High

Establish a list of reliable

supplier/contractors;
maintain good working
relationships with them.

Lack of good skilled

workers/team

Likely

High

While most of our

employees are offer
contract based jobs, we plan
to convert them into
permanent staff when our
business takes off. And to
retain good staff, regular
training is necessary.

Figure 5.8.1

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Business Plan

6.0 Financial Goals and Requirements

6.1 Financial Goals and 3-Year Projections
CARE Building and Construction Pty Ltd has a start-up seed capital of AUD $1.5M funding
from its founders.
Revenue goal and financial projections:- with a target of YOY 30 % growth rate. Estimated
return on investment estimated at 25% YOY (Year on Year)

Year
1
2
3
Figure 6.1.1

Annual Revenue Projections

Target Margin % Growth

AUD $ 420,000
AUD $ 600,000
AUD $ 780,000

15-25 %
20-25 %
25-40 %

6.2 Financing Needs

As a growing small and medium business, especially in the construction industry, achieving a
healthy cash flow is paramount to business continuity and capacity to growth and diversity if
required to win competition.
We have a business credit arrangement with Commonwealth Bank Australia for an initial
amount AUD $5M in the event that we require this credit line to ensure smooth running of
our business operations.
In the next 3 years financial projection, our financial needs will certainly evolved and we will
assess as required best possible options with our banking partner Commonwealth Bank
Australia to support the expected business growth and financial needs where appropriate.

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Business Plan

7.0 Positioned For Success

We are a diversified construction company that is positioned for success and open
possibilities to grow.
Key market target segments in the heart of Melbourne City include:

Residential properties
Commercial properties
Modernising Victorian houses - niche capability

Strong executive leadership and operationalised business strategy:

Clear business strategy and KPI established

Lean company structure
Experienced team and supporting functions set up

People culture:

Key differentiator is our people and culture

Hire and retain top talent in the construction industry
Strong performing culture focused on providing the best service to our customers
and partners

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Business Plan

APPENDIXES
APPENDIX A1 CASH FLOW MODEL
APPENDIX B1 PUBLIC LIABILITY INSURANCE POLICY
APPENDIX B2 BUSINESS INSURANCE POLICY

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