Looking for a hardwood floor refinishing business plan? You're in the right place.
A flooring company that sells to builders and property managers has questions a homeowner-only shop never faces. How long does a builder take to pay, and how much hardwood does the company front before then? How many installed square feet can a crew of three finish in a month? What happens in January, when nobody schedules floors? A blank template will not show what sensible answers look like.
This article walks through a complete sample plan for a floor installation and dustless refinishing company in Atlanta, Georgia: the executive summary, the SWOT analysis, the sales and marketing plan and, in the most detail, the financials.
Here is what the plan lets a reader do:
- The executive summary: put the raise, the two founders and the three-year picture on one page, so a lender sees what is being asked for within a minute
- The builder and property-manager accounts: see how a small shop plans for a handful of repeat buyers without letting any one of them carry the year
- The crew-day table: check that forecast jobs fit the crews on payroll before a lender checks it for you
- The first year, month by month: find the winter months that lose money and size the cash reserve to match
- The five-year profit and loss, cash flow and balance sheet: follow how each crew hire, price rise and van lease shows up in the numbers
- The downside case: have an answer ready for "what if jobs come in 20% short?" along with the steps the owner takes
- The stress tests and lender questions: see which single changes the cash absorbs, which it does not, and what a bank asks next
If you are planning a flooring or finishing company, read this before writing your own. The company is fictional, so take what fits and change the rest.
In this plan
To turn this example into your own hardwood floor refinishing business plan, use the hardwood floor refinishing business plan template.
Summary for a Lender
The Hardwood Co installs and refinishes hardwood floors in metropolitan Atlanta, Georgia, and opens on January 1, 2027. Its buyers are home builders and remodelers who need floors laid and finished on a schedule, property managers who turn units between tenants, and owners who are selling or have lived with a worn floor too long. Terrence Okafor, an installer with eleven years on Atlanta job sites, runs the company and works on the first crew. Dana Whitlock, a retired builder, owns 20% and opens doors with builders.
The company raises $170,000: $60,000 of Terrence's savings, $40,000 from Dana and a $70,000 bank equipment loan. Of that, $47,000 buys sanding machines, dustless extraction gear and a used van, $12,600 pays for certification, legal work and the launch, and $110,400 stays in the bank to cover slow months, builders who pay late and the spring when a second crew starts.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $286,250 | $533,410 | $758,586 |
| Net income after start-up costs | ($30,280) | ($9,336) | $47,616 |
| Closing cash | $71,730 | $40,506 | $61,366 |
Year 1 finishes 60 jobs over about 127 crew-days. Seven months, April through October, earn an operating profit and five do not, so the year ends in a loss after depreciation, interest and start-up costs. Year 2 loses $9,336 because a second crew starts in May 2028 before its calendar fills. Year 3 is the first profitable year. A part-time estimator joins in 2029 and an apprentice at the end of that year.
The base case is thin in its first two years. Debt cover stays under 1.0x until Year 3, and a 10% revenue shortfall with no response would spend the reserve during Year 2. If jobs run 20% below plan, Terrence takes a pay cut from July 2027, pushes back the 2028 and 2029 hires, trims marketing from 2028 and pays almost nothing to the owners, cash stays positive at every year end. Year 3 is the weakest, with $9,537 in the bank and a break-even result, and the bank would be asked to waive debt-cover tests for 2027 to 2029.
The Company and Its Two Trades
Legal name: The Hardwood Co, LLC, a Georgia limited liability company. Owners: Terrence Okafor 80%, Dana Whitlock 20%. Shop: about 1,500 square feet of light-industrial space in west Atlanta, with a loading door and room for stock. Opens: January 1, 2027.
What it sells
| Work | How it is priced | Year 1 share of revenue |
|---|---|---|
| Supply-and-install for builders and remodelers | About $13.80 a square foot installed and finished, $12,400 on 900 square feet | 43% |
| Dustless refinishing in multifamily units, from a rate sheet | About $4.00 a square foot, $2,400 on 600 square feet | 26% |
| Owner and listing-prep refinishing | About $5.55 a square foot, $4,150 on 750 square feet | 28% |
| Board, stair and water-damage repairs | Quoted per item or per crew-day | 3% |
Why two trades under one roof
Installation brings large tickets and builders who call again. Refinishing fills the days between installs and is the work property managers send in volume. A crew that does both can move from a job that waits on a delivery to one that does not.
Targets through 2029
- 60 jobs finished in 2027 and 110 in 2028.
- About eleven builder and manager accounts by the end of 2028 (four builders and seven managers), with no account above about 15% of revenue.
- A second crew working from May 2028.
- A small loss in 2028 while crew two fills its calendar, a profit in 2029 and the first payout to the owners that year.
Permits and certificates to settle first
Lead-safe work comes first. The EPA's renovation rule requires firms paid to disturb painted surfaces in homes, child-care facilities and preschools built before 1978 to be certified, with workers trained in lead-safe practices, and the EPA lists Georgia among the states that run their own program. In Georgia the firm certification and the renovator course therefore go through the state's Environmental Protection Division, and its fees are confirmed with the division. Whether a floor-only job disturbs painted surfaces depends on scope, since trim, doors and baseboards often come into it, so Terrence completes a certified renovator course and the firm applies in the fall of 2026, which lets older homes be taken from January either way. Georgia licenses residential and general contractors through a state board. Whether flooring-only work needs a license, and above what contract value, depends on scope, so Terrence confirms it with the board and with the City of Atlanta's business office before the first contract. Builders also expect a certificate of insurance from every subcontractor. The $1,900 licensing line is a planning figure and fees change; the financial section books it in January 2027 with the other opening costs.
Floor Work Around Atlanta
Three sources of work
New houses and remodels need floors laid. Rental communities turn units between leases, with a lull in winter. Older in-town houses often have oak under carpet or tired varnish, and their owners refinish before selling or after a long time of living with it. No market-size figure is used for any of this. A company of this size is held back by crews, so the working number is how many crew-days it can sell.
Humid summers and what they do to wood
Atlanta summers are humid, and wood moves with moisture. Boards are acclimated and moisture-tested before nailing, and the finish schedule allows for slow drying in July and August. Builders know which subcontractors have been called back for cupped floors, and a clean record is a selling point.
How many days a crew can sell
A crew of two to three sells about 190 to 195 productive days a year after estimates, deliveries, weather and callbacks. At this mix, a crew-day is worth between $2,250 and $2,470 of revenue, or about $1,690 to $1,850 after hardwood and finish. Crew-days sold run at 67% of available days in Year 1, 74% in Year 2, then 83%, 78% and 80% as the second crew and an apprentice arrive.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Crew-days sold | 127 | 235 | 324 | 365 | 377 |
| Crew-days available | 190 | 317 | 390 | 470 | 470 |
| Share of available days sold | 67% | 74% | 83% | 78% | 80% |
The yearly shares hide the busy months. If 2027's monthly pattern repeats, July 2027 uses 99% of the first crew's 16 sellable days, April 2028 would ask one crew for about 23 days before crew two starts, and July 2029 would ask two crews for about 42 days against 32. A crew can stretch to about 19 days in a month with Saturday work, and the financial plan budgets overtime and day labor for the rest.
Others who answer the same call
- Big-box and flooring-retail installers. One source for material and labor, usually at a set price per square foot. Installation is their core offer, and refinishing is usually outside it.
- Established refinishing and installation shops. Long local histories and builder relationships. Most do not publish prices.
- Builders' own subcontractor crews. Often cheap and flexible, and a builder with a bad experience moves on.
- Franchised dustless brands. A recognizable promise, typically aimed at owners.
- Do-it-yourself machine rental. Typically the lowest price, with no workmanship warranty.
The list sketches what each kind of provider offers and is not a ranking. Prices and terms shift, and most local shops publish neither, so no business is named.
SWOT
| Strengths | Weaknesses |
|---|---|
| Eleven years of Atlanta installation and a builder's introductions on day one | A single crew in Year 1, so one wet week moves the month |
| Install and refinish under one roof, with dustless extraction on every machine | Hardwood is bought before the builder pays |
| A rate sheet that property managers can approve without a site visit | Winter months lose money before spring work starts |
| Opportunities | Threats |
|---|---|
| Builders consolidating floor work with one reliable crew | A larger installer undercutting on new-build volume |
| Water-damage repairs referred by managers and restoration firms | A finish failure or cupping complaint spreading through builder circles |
| Agents and stagers who need a floor ready before photos | Insurance and workers' compensation premiums rising for floor crews |
Who Signs for the Floor
The builder or remodeler
A superintendent wants floors installed between drywall paint and cabinets, and a crew that arrives on the day it said it would. Price matters, but a missed start costs a builder more than a better quote saves. A builder with one good job behind a crew will usually send the next one. Year 1 books 10 installs from about four accounts, and any one account stays near or below its 15% ceiling because accounts are added rather than work turned away.
The property manager
A manager with twelve units turning over in the summer asks for a single price per unit, firm start and finish days and an invoice that drops straight into the payables queue. Year 1 has 31 units from three managers, about 62 in Year 2 from roughly seven, and 102 in Year 5 from about eleven.
The homeowner or the listing agent
An owner selling in three weeks needs a floor that looks right on a fixed schedule. Owners who have lived with a worn floor ask about dust, odor and how soon the rooms come back. Both usually collect a few written quotes, so a clear quote carries weight.
What turns a quote into a signed job
Fast written quotes, photos of finished Atlanta floors, a calendar the crew keeps and a straight answer on dust. Builders also get a certificate of insurance and a one-page warranty statement with the first quote.
Winning Builder and Manager Accounts
The routine for each buyer type
Builders receive a visit from Terrence and Dana with a sample board, a schedule sheet and references from the first jobs. Property managers receive the rate sheet and an offer to refinish one vacant unit at the sheet price so the work can be judged. Owners get an in-home visit and a written estimate priced per square foot, with stairs, repairs and a stain change as separate lines.
How the first year fills
| Jobs finished | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Supply-and-install | 10 | 18 | 26 | 30 | 30 |
| Unit refinishing | 31 | 62 | 88 | 98 | 102 |
| Owner refinishing | 19 | 30 | 36 | 40 | 42 |
| All jobs | 60 | 110 | 150 | 168 | 174 |
Year 2 depends on the second crew, on the first three manager accounts repeating and on four more opening. Installs grow more slowly, since a builder tries a subcontractor on one job before committing. Counts rise 12% in Year 4 and 4% in Year 5, with both crews near 80% of their days.
Payment terms
Owners pay a deposit when they sign and the rest on completion. Builders and managers are invoiced on completion and settle in 30 to 45 days, and some run later. Blended across all buyers, the model uses 30 days. Builders may also hold back part of the price until a project closes, and lien waivers are a question for counsel. Prices hold through 2027 and rise 3% a year from 2028.
Where the Marketing Money Goes
The budget
Year 1 marketing is $25,500: $6,500 of launch spending paid from start-up capital and $19,000 of running costs. That is 9% of Year 1 revenue, falling to 3% by Year 3 as repeat builders and managers take over. Spread over 60 Year 1 jobs, the total comes to about $425 a job and the running costs to about $317.
| Channel | Year 1 spend | What it is expected to do |
|---|---|---|
| Website, sample boards, van lettering, builder introductions (launch) | $6,500 | A site with an estimate form, a gallery of local floors and boards to leave on site |
| Google local service ads | $5,500 | About 100 leads at roughly $55 each; about 8 owner jobs |
| Builder and remodeler outreach | $4,000 | Sample boards, jobsite lunches and association events; about 10 installs |
| Property-manager program | $2,500 | A rate sheet and one sample unit; 31 units from three accounts |
| Real estate agent and stager cards | $2,000 | Floor-care cards at open houses; about 4 owner jobs |
| Yard signs and neighborhood mail | $1,500 | Signs outside active jobs; about 3 owner jobs |
| Trade referral thank-yous | $1,000 | Painters, designers and restoration firms that do not sand floors; about 4 owner jobs |
| Website and review requests | $1,500 | Pages on refinishing steps and costs |
| Print and photo updates | $1,000 | Fresh before-and-after images each season |
Milestones
- January 2027: site live and the first owner job on the calendar.
- February 2027: first builder install. March 2027: first property-manager units.
- July 2027: busiest month, with $34,100 of work finished.
- December 2027: 60 jobs finished and a spring 2028 calendar half full.
How a Job Moves Through the Shop
The shop and the vans
About 1,500 square feet in west Atlanta at roughly $10 a square foot, or $15,000 in Year 1, a planning figure to test against listings, holding machines, finish and a pallet or two of hardwood. Crew one drives a used van bought at launch, and crew two will run a leased one.
An install from delivery to final coat
Hardwood is delivered and acclimated in the shop or on site, and a moisture meter confirms the boards and subfloor are within the manufacturer's range. The crew nails or glues the floor, sands with extraction on every machine, stains, and applies three coats of water-based finish with drying time between them. A 900-square-foot job takes about 4 crew-days, and the crew starts a refinish nearby while the finish cures.
Dust control and lead-safe work
Dustless extraction is built into two lines of the budget. The $14,500 machine set is a drum sander, an edger, a buffer and nailers, each with an extraction port. The $8,500 containment kit is extraction units, an air scrubber and sheeting. Supplies run $2,800 in Year 1 and between $5,000 and $7,000 afterward. In older houses where painted surfaces are disturbed, work follows the lead-safe procedure of Georgia's program and the crew leaves a record file.
Warranty and callbacks
A one-year workmanship warranty covers finish and installation. Callbacks and warranty recoats are budgeted at $2,000 in Year 1 and $7,000 by Year 5, about 0.7% of revenue in Year 1 and 0.8% in Year 5.
Insurance and bonding
General liability, commercial auto and workers' compensation are in place before the first estimate. Insurance is $9,500 in Year 1 and $20,000 by Year 5, with workers' compensation inside the field payroll load; both are planning figures for an insurance agent to quote, and a builder may ask to be named as an additional insured. No bond is budgeted. A builder on a larger project may ask for one, which would add a premium and a surety review of a young company's statements.
Owners and Crew Leads
Terrence Okafor, founder and lead installer
Terrence has eleven years on Atlanta job sites, the last six as a lead installer for a flooring subcontractor that worked for production builders. He holds no contractor license of his own yet and plans to complete a certified renovator course before opening. He earns $62,000 from the company and has put in $60,000 of savings.
Dana Whitlock, investor and advisor
Dana ran a small residential construction company in the Atlanta suburbs for about twenty years and now invests in trade businesses. She owns 20%, takes no salary and joins builder meetings in the first year. Her $40,000 is paid in at launch.
Where the team is thin
Neither founder has built a company with payroll, and neither has run a property-management sales cycle. An outside bookkeeper on a retainer, a written rate sheet that does not depend on Terrence's memory, and a part-time coordinator from month 26 who takes quoting and builder paperwork off the crew leads cover that gap.
If Terrence is out
Terrence is the only estimator at launch. The journeyman can run a job to a written spec, and the crew-two lead from month 17 can write estimates. Key-person cover on Terrence is not budgeted, and a lender may ask for it.
The bank and the investor
The loan carries Terrence's personal guarantee and a lien on the machines and van. Dana's shares carry no preferred terms; distributions are paid 80% and 20%. Her $40,000 buys 20% at a $200,000 valuation, and Terrence's 80% for $60,000 reflects his eleven years, his builder relationships and the unpaid set-up work.
Pay, hours and overtime
Field crews are hourly and non-exempt. The lowest starting wage, $36,000 for a helper, is about $17.30 an hour over 2,080 hours, above the federal minimum wage of $7.25. Hours past 40 in a week are paid at time and a half, and the peak-month overtime line in the financial section carries that cost. In 2027 the first crew has no spare day in July and August, so a wet week or a late delivery moves work into September.
What a lender would still ask
- The lease: its term, whether the landlord wants a personal guarantee, and the one to two months' deposit, which comes out of the reserve. Rent of about $10 a square foot is a planning figure to test against listings.
- Collateral beyond the machines and van. The $70,000 loan stands against about $47,000 of equipment that would resell for less.
- Debt cover of under 1.0x in Years 1 and 2, measured after Terrence's $62,000 salary, against a likely 1.25x test, and the request to begin testing with the year ending December 2029.
- A seasonal line of credit. A rough scaling of 2027's monthly pattern to 2029 puts month-end cash below zero from February to June, so a $50,000 undrawn line is part of the request, and the model does not carry it.
- Evidence for Year 1: letters of intent from the four builders and three managers behind the 10 installs and 31 units.
- Licensing: whether a flooring-only contract needs a Georgia contractor license and above what value, and the date of the firm's lead-safe certification.
- Insurance: the workers' compensation rating for flooring crews, whether Terrence can be excluded as an owner, and any umbrella limit a builder requires.
- Collection terms with builders: retainage, lien waivers and the effect of a 45-day blend, which cuts Year 2 closing cash from $40,506 to $18,585.
- Fragility. A 10% revenue shortfall with no response, or 10% higher wages, leaves cash negative in Year 2, so the downside steps and the owners' cash behind them are what a lender weighs.
- The investor's return: $13,200 of distributions to Dana over Years 3 to 5 on $40,000, with no exit forecast.
- Whether the company elects corporate tax treatment or stays a partnership, since members of a partnership owe tax on profit that is not paid out.
Financials: Installed Square Feet, Crews and Cash
One five-year model sits behind every table: twelve months for 2027, then a yearly figure. The working figures come first (job sizes, installed prices, days per job), so a reader can multiply them out and land on each revenue line.
Machines, van and the builder-payment cushion
| Use of funds | Amount |
|---|---|
| Sanders, edger, buffer and nailers, all with dust-extraction ports | $14,500 |
| Dustless extraction units, air scrubber and containment kit | $8,500 |
| Used cargo van with racks and a moisture-meter set | $24,000 |
| Lead-safe firm certification (Georgia program), renovator course, Atlanta business registration | $1,900 |
| Legal: LLC, investor agreement, builder subcontract and warranty wording | $4,200 |
| Launch: website, sample boards, van lettering, builder introductions | $6,500 |
| Cash reserve for slow months and builders who pay late | $110,400 |
| Total uses | $170,000 |
| Source of funds | Amount |
|---|---|
| Terrence Okafor's savings | $60,000 |
| Dana Whitlock, retired builder (20% of the company) | $40,000 |
| Bank equipment loan (SBA-backed) | $70,000 |
| Total sources | $170,000 |
The Hardwood Co raises $170,000, of which $100,000 (59%) is equity. Terrence Okafor puts in $60,000 of savings. Dana Whitlock, a retired builder, pays $40,000 for 20% of the company and brings her address book. At that price the company is valued at $200,000, and each point costs her $2,000 against Terrence's $750, a gap that reflects his eleven years on Atlanta job sites, the builders who will take his call and the unpaid weeks of set-up work behind his 80%.
The remaining $70,000 is a seven-year bank equipment loan at 10.25%, interest-only for six months, of the kind an SBA-backed lender could write, with Terrence's personal guarantee and a lien on the machines and van. The rate is a figure chosen for this example, not a lender's quote, and $70,000 of debt stands against $47,000 of equipment that would resell for less.
Spending is $47,000 on machines, extraction gear and the van, $12,600 on certification, legal and launch costs, and a $110,400 reserve, 65% of the raise. The reserve is sized to the weak points, not only the first winter. On the basis used in the monthly table (month-end cash less 30 days of receivables), the lowest 2027 balance is about $61,000 in April. A two-month slip in the first jobs takes the low to about $24,000 in June. A rough scaling of 2027's monthly pattern to 2028 puts the next low near $27,000 in May 2028, when crew two's payroll and $15,000 of machines arrive together. The model gives no monthly figures after 2027, and the same rough scaling applied to 2029 shows month-end cash below zero from February to June, by up to about $24,000, as receivables grow ahead of the spring work. That scaling carries 2027's start-up ramp into later winters, so it is a harsh case and not a forecast. The loan request therefore comes with an undrawn $50,000 revolving line, which is not in the model. A lease deposit of one to two months' rent ($1,250 to $2,500) is not a separate line. It comes out of the reserve, and the cash figures treat it as spendable. The $1,900 licensing line is a planning figure, because the lead-safe firm fee under Georgia's own program is still to be confirmed with the state.
Job sizes, prices and crew rules
- Supply-and-install jobs average 900 square feet at about $13.80 installed and finished, or $12,400 a job, for solid or engineered oak with a site-applied water-based finish. Each takes about 4 crew-days, counting nailing or gluing, sanding and three coats with drying gaps. Year 1 books 10 of them, then 18, 26, 30 and 30. Every per-square-foot price in this section is a planning figure for the example, to be tested against local bids.
- Property-manager refinishing is priced from a rate sheet at about $4.00 a square foot. A 600-square-foot unit is $2,400 and takes about 1.3 crew-days with dustless extraction. Units number 31 in Year 1 from about three accounts, then 62, 88, 98 and 102 as the manager list reaches about seven in Year 2 and eleven by Year 5, alongside four builders.
- Owner and listing-prep refinishing averages 750 square feet at about $5.55, or $4,150, and takes 2 crew-days. The line has 19 jobs in Year 1, then 30, 36, 40 and 42. Repairs, stair and board replacement and water-damage work are booked at $1,000 of revenue per crew-day: $9,000 in Year 1, $22,000 in Year 2 and $40,000 by Year 5. Every price except the repair rate of $1,000 a crew-day rises 3% a year from Year 2.
- A crew sells about 190 to 195 days a year. Crew-days sold come to 127 in Year 1 against 190 available, 235 in Year 2 against 317 once the second crew starts in May, then 324, 365 and 377 against 390, 470 and 470. That is 67%, 74%, 83%, 78% and 80%. The apprentice from month 36 adds about 80 days of support.
- Yearly rates hide the busy months. Using 2027's monthly pattern, July 2027 asks 15.9 crew-days of the first crew's 16, with June and August close behind, so the first summer has no slack. At 2028 volume, April would ask one crew for about 23 days before crew two starts in May. At 2029 volume, July and August would ask two crews for 41 to 42 days against 32. A crew can stretch to about 19 days in a busy month with Saturday work, and days beyond that go to overtime or day labor at about $1,000 a crew-day: $4,500 in Year 2, $7,000 in Year 3, $4,000 in Year 4 and $7,000 in Year 5.
- Materials come to 40% of install revenue, 12% of unit refinishing, 14% of owner refinishing and 25% of repairs, 25.1% overall in Year 1: hardwood, adhesive, finish and abrasives. The model applies that blended rate to every year, so a line's own percentage holds only in Year 1. Crews are paid through payroll, so the 74.9% gross margin is struck before field wages and is not comparable with a flooring contractor's margin after crews. The company holds hardwood stock worth 2% of annual sales and gets 14 days of supplier credit, a term the distributor must grant. A new account is often asked to pay on delivery, which would use about $2,800 of the reserve at the end of Year 1.
- Payroll burden adds 36% to field wages, covering payroll taxes, health insurance and the workers' compensation premium an insurer rates for flooring crews, a planning figure for an insurance agent to confirm. Terrence's load is 27%, which leaves out workers' compensation on the basis that an owner can be excluded, something his insurer must confirm, and the part-time coordinator's is 15%.
- Starting pay is $62,000 for Terrence, $48,000 for the journeyman, $52,000 for the second crew lead, $36,000 to $37,000 for helpers and the apprentice, and $32,000 for the coordinator, all planning figures. A $36,000 helper earns about $17.30 an hour over 2,080 hours, well above the federal minimum wage of $7.25 an hour (29 U.S.C. 206), and the coordinator's $32,000 over about 1,250 hours is about $25.60. Field roles are hourly and non-exempt, so hours past 40 in a week are paid at time and a half, which the peak-month line carries. A 3% yearly raise shows as its own cost line from Year 2 and reaches $50,176 in Year 5.
- Owners put down a deposit when they sign and settle on the day the floor is done. Builders and managers pay 30 to 45 days after invoicing, some later, and a builder may hold back part of the price until a project closes; lien waivers and retainage terms are matters for counsel. Blended across all buyers, receivables sit at 30 days. At a 45-day blend the Year 2 balance would be $18,585 instead of $40,506. The model takes no deposit from builders on installs, and a materials deposit on larger jobs would shorten collection. Bad debt runs at about 0.5% of revenue in Year 1 and 0.4% afterward. No single builder or manager is planned above about 15% of revenue, or about $114,000 in Year 3.
- The shop is about 1,500 square feet of light-industrial space in west Atlanta at about $10 a square foot, $15,000 in Year 1, with 3% annual increases; the rent is a planning figure to test against listings. Terrence buys the first van used for $24,000. The second crew's van is leased at about $700 a month, and its machine set and extraction units are bought used or at a trade discount in Year 2 for $15,000, about two-thirds of the first set's $23,000, with the air scrubber and containment kit shared. Because the model treats only the opening purchases as equipment, these later purchases are charged as expenses in the year they are made. Vans, fuel and mileage run $7,500 in Year 1 and $24,000 in Year 3, when two vans are on the road.
- Tax is figured as if the company paid corporate income tax: 21% federal (26 U.S.C. 11(b)) plus 5.19% for Georgia. On May 11, 2026 the Governor's office announced that HB 463 lowers Georgia's state income tax rate from 5.19% to 4.99% beginning January 1, 2026, so 5.19% errs on the cautious side, and an accountant should confirm the corporate figure. An LLC with two members is taxed as a partnership unless it elects otherwise, which would put the tax on the owners' own returns; corporate rates stand in as a cautious estimate. Early losses carry forward against later profit. The model's tax base ignores start-up costs and the federal 80% limit on using carried-forward losses, so tax in Years 3 to 5 is approximate.
- The owners take $6,000, $25,000 and $35,000 in Years 3 to 5, split 80% and 20%. Cumulative net income after start-up costs is $8,000 by the end of Year 3, $66,943 by Year 4 and $136,311 by Year 5, against $6,000, $31,000 and $66,000 paid out, so no year's total payout exceeds the profit earned to date. Closing cash rises in each of those years after the loan principal. Dana's 20% comes to $13,200 over the three years on her $40,000, with no sale or buy-back forecast. If the company stays a partnership, the owners also owe tax on allocated profit, which these payouts do not cover. The bank loan is paid on its schedule, not early.
Revenue by kind of work
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Supply-and-install for builders and remodelers | $124,000 | $229,896 | $342,030 | $406,500 | $418,680 |
| Dustless refinishing for property managers and multifamily units | $74,400 | $153,264 | $224,048 | $257,054 | $275,502 |
| Owner and listing-prep refinishing | $78,850 | $128,250 | $158,508 | $181,400 | $196,182 |
| Board, stair and water-damage repairs | $9,000 | $22,000 | $34,000 | $38,000 | $40,000 |
| Total revenue | $286,250 | $533,410 | $758,586 | $882,954 | $930,364 |
| Growth on prior year | – | 86% | 42% | 16% | 5% |
Installation is the largest line at 43% of Year 1 revenue and 45% of Year 5, and it is also where the most cash goes out before it comes in, because hardwood is bought before the builder pays. Unit refinishing grows from 26% to 30% as property managers send repeat work, which makes it the line a lender will test for concentration. Owner refinishing falls from 28% to 21% as a share while rising in dollars. Repairs are 3% of Year 1 and 4% of Year 5. Growth of 86% in Year 2 and 42% in Year 3 rests on crew two and on repeat accounts, which is the least certain part of the model. Jobs rise 12% in Year 4 as the apprentice frees both crew leads, and Year 5's 5% is about three points of price and two of volume.
Month by month in 2027
| Month | Supply-and-install for builders and remodelers | Dustless refinishing for property managers and multifamily units | Owner and listing-prep refinishing | Board, stair and water-damage repairs | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $0 | $0 | $4,150 | $0 | $4,150 | ($14,860) |
| Feb 2027 | $12,400 | $0 | $4,150 | $0 | $16,550 | ($5,571) |
| Mar 2027 | $12,400 | $4,800 | $4,150 | $500 | $21,850 | ($1,600) |
| Apr 2027 | $12,400 | $7,200 | $8,300 | $800 | $28,700 | $3,531 |
| May 2027 | $12,400 | $7,200 | $8,300 | $1,000 | $28,900 | $3,681 |
| Jun 2027 | $12,400 | $9,600 | $8,300 | $1,200 | $31,500 | $5,629 |
| Jul 2027 | $12,400 | $12,000 | $8,300 | $1,400 | $34,100 | $7,576 |
| Aug 2027 | $12,400 | $12,000 | $8,300 | $1,200 | $33,900 | $7,427 |
| Sep 2027 | $12,400 | $7,200 | $8,300 | $1,000 | $28,900 | $3,681 |
| Oct 2027 | $12,400 | $7,200 | $8,300 | $900 | $28,800 | $3,606 |
| Nov 2027 | $12,400 | $4,800 | $4,150 | $600 | $21,950 | ($1,525) |
| Dec 2027 | $0 | $2,400 | $4,150 | $400 | $6,950 | ($12,762) |
January brings $4,150 from a single owner refinish, and February adds the first builder install for $16,550. The curve climbs to $34,100 in July, then drops to $6,950 in December because builders stop scheduling floors ahead of the holidays. Five months run an operating loss, together about $36,000: January to March, November and December. The seven months from April to October earn about $35,000, so EBITDA for the year is a loss of $1,187. Month-end cash bottoms out in April, at about $61,000 once 30 days of receivables are netted off. That basis nets off only December's $6,950 of receivables and leaves out stock and supplier balances, while the year-end statements hold $23,527 of receivables, which is why December ends near $91,000 on it against the $71,730 closing balance in the cash table. Later years appear as yearly totals, so the winters after 2027 are not visible; the funding note gives rough lows for 2028 and 2029.
Who is on payroll
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder and lead installer | $62,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Journeyman installer-refinisher | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Crew-one helper | $36,000 | Month 14 | – | 1 | 1 | 1 | 1 |
| Crew-two lead installer | $52,000 | Month 17 | – | 1 | 1 | 1 | 1 |
| Crew-two helper | $37,000 | Month 17 | – | 1 | 1 | 1 | 1 |
| Estimator and builder-accounts coordinator (part time, 24 hours a week) | $32,000 | Month 26 | – | – | 0.5 | 0.5 | 0.5 |
| Floating apprentice for both crews | $36,000 | Month 36 | – | – | 1 | 1 | 1 |
| Total payroll incl. on-costs | $144,020 | $269,593 | $351,833 | $399,780 | $399,780 |
Terrence and the journeyman work the first crew from January 1, so no month of 2027 is short-handed through a late hire; the thin months are July and August, when the crew's calendar is full. A helper joins in month 14 (February 2028), once the spring calendar is booked four weeks out. Crew two, a lead installer and a helper, starts in month 17 (May 2028), after an April that would ask one crew for about 23 days. A part-time estimator and builder-accounts coordinator joins in month 26 (February 2029) to take quoting and builder paperwork off the crew leads, and a floating apprentice follows in month 36 (December 2029). Terrence's $62,000 is already in the cost lines, so profit here is what remains after he is paid. The part-time coordinator counts as half a position in the table above and in revenue per full-time equivalent; at 24 hours a week the role is closer to 0.6. Cover for Terrence if he is out is not budgeted.
Profit and loss
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $286,250 | $533,410 | $758,586 | $882,954 | $930,364 |
| Hardwood, finish, adhesive and abrasives (before field wages, which are in payroll) | ($71,817) | ($133,827) | ($190,321) | ($221,524) | ($233,418) |
| Gross profit | $214,433 | $399,583 | $568,265 | $661,430 | $696,946 |
| Payroll incl. on-costs | ($144,020) | ($269,593) | ($351,833) | ($399,780) | ($399,780) |
| Rent | ($15,000) | ($15,450) | ($15,900) | ($16,400) | ($16,900) |
| Utilities | ($2,400) | ($2,500) | ($2,600) | ($2,700) | ($2,800) |
| Marketing | ($19,000) | ($21,000) | ($25,000) | ($27,000) | ($28,500) |
| Insurance | ($9,500) | ($13,500) | ($17,000) | ($18,500) | ($20,000) |
| Professional fees | ($7,500) | ($8,000) | ($8,500) | ($8,800) | ($9,000) |
| Software subscriptions | ($3,000) | ($3,800) | ($4,600) | ($4,800) | ($5,000) |
| Vans, fuel and mileage | ($7,500) | ($17,500) | ($24,000) | ($25,000) | ($26,000) |
| Peak-month overtime and day labor | $0 | ($4,500) | ($7,000) | ($4,000) | ($7,000) |
| Dust-control supplies: filters, bags, sheeting, containment film | ($2,800) | ($5,000) | ($6,300) | ($6,800) | ($7,000) |
| Machine replacement and crew kit for new hires | $0 | ($15,000) | ($3,500) | ($5,500) | ($6,500) |
| Callbacks and warranty work on installed floors | ($2,000) | ($4,800) | ($6,000) | ($6,600) | ($7,000) |
| Certification renewals and training | ($1,500) | ($1,900) | ($1,900) | ($2,200) | ($2,000) |
| Bad debt allowance | ($1,400) | ($2,500) | ($3,300) | ($3,700) | ($3,900) |
| Annual pay raises (3% a year) | $0 | ($8,088) | ($21,427) | ($37,070) | ($50,176) |
| EBITDA | ($1,187) | $6,452 | $69,405 | $92,580 | $105,390 |
| Depreciation | ($9,400) | ($9,400) | ($9,400) | ($9,400) | ($9,400) |
| Interest | ($7,093) | ($6,388) | ($5,485) | ($4,484) | ($3,376) |
| Income tax | $0 | $0 | ($6,904) | ($19,753) | ($23,246) |
| Net income before start-up costs | ($17,680) | ($9,336) | $47,616 | $58,943 | $69,368 |
| Legal, certification and launch costs expensed at opening | ($12,600) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($30,280) | ($9,336) | $47,616 | $58,943 | $69,368 |
Year 1 loses $17,680 before start-up costs and $30,280 after the $12,600 of certification, legal and launch spending, with EBITDA a shade below zero at ($1,187). Year 2 loses $9,336, because it carries eight months of crew two's payroll, $15,000 of machines, a leased van and $4,500 of overtime before that crew's calendar fills. Year 3 is the first profitable year at $47,616, a 6.3% net margin, and Years 4 and 5 earn $58,943 and $69,368. Income tax is zero until Year 3, when it is $6,904 after $27,016 of carried-forward losses are used. Gross profit of about 75% is struck before any wages. After all payroll including pay raises, but before other overhead, what remains is 25% of revenue in Year 1, 23% in Year 2 and 25% to 27% in Years 3 to 5.
Where the cash goes
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($47,377) | ($22,816) | $36,172 | $56,831 | $74,379 |
| Sanding machines, dust extraction and van | ($47,000) | $0 | $0 | $0 | $0 |
| Funding received | $170,000 | $0 | $0 | $0 | $0 |
| Equipment loan principal repaid | ($3,893) | ($8,408) | ($9,312) | ($10,312) | ($11,420) |
| Owner distributions | $0 | $0 | ($6,000) | ($25,000) | ($35,000) |
| Net change in cash | $71,730 | ($31,224) | $20,861 | $21,519 | $27,959 |
| Closing cash | $71,730 | $40,506 | $61,366 | $82,885 | $110,843 |
No year ends below zero on the annual statements. The weakest year-end balance is $40,506 in Year 2, when crew two's machines, van lease and half-empty calendar arrive together. Operations use $47,377 of cash in Year 1 and $22,816 in Year 2, which the reserve funds, and turn positive in Year 3 at $36,172. $26,654 of the loan is still owed at the end of Year 5. Distributions of $66,000 over Years 3 to 5 sit inside the $136,311 earned over five years and begin in the first profitable year. The yearly statements hold receivables at 30 days of average sales, so the seasonal spring lows described in the funding note are deeper than any year-end figure here.
Balance sheet
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $71,730 | $40,506 | $61,366 | $82,885 | $110,843 |
| Accounts receivable | $23,527 | $43,842 | $62,350 | $72,572 | $76,468 |
| Hardwood and finish stock | $5,725 | $10,668 | $15,172 | $17,659 | $18,607 |
| Sanding machines, dust extraction and van (net) | $37,600 | $28,200 | $18,800 | $9,400 | $0 |
| Total assets | $138,582 | $123,216 | $157,687 | $182,515 | $205,919 |
| Accounts payable (flooring distributor) | $2,755 | $5,133 | $7,300 | $8,497 | $8,953 |
| Bank equipment loan | $66,107 | $57,699 | $48,387 | $38,075 | $26,654 |
| Paid-in capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Retained earnings | ($30,280) | ($39,616) | $2,000 | $35,944 | $70,312 |
| Total liabilities and equity | $138,582 | $123,216 | $157,687 | $182,515 | $205,919 |
Margins, break-even and loan cover
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -0.4% | 1.2% | 9.2% | 10.5% | 11.3% |
| Net margin (before start-up costs) | -6.2% | -1.8% | 6.3% | 6.7% | 7.5% |
| Payroll incl. pay raises as share of revenue | 50% | 52% | 49% | 49% | 48% |
| Revenue per full-time equivalent at year end | $143,125 | $106,682 | $116,706 | $135,839 | $143,133 |
| Average monthly revenue | $23,854 | $44,451 | $63,216 | $73,580 | $77,530 |
| Monthly revenue needed to cover operating costs | $23,986 | $43,733 | $55,495 | $63,281 | $65,806 |
| Debt service cover (EBITDA / interest + principal) | -0.1x | 0.4x | 4.7x | 6.3x | 7.1x |
In Year 1 monthly revenue averages $23,854 against $23,986 needed to cover operating costs, a narrow miss that depreciation, interest and start-up costs turn into a larger loss. Year 2 passes by a thin margin, $44,451 against $43,733, and still loses $9,336 once depreciation and interest are paid. Year 3 averages $63,216 against $55,495, 14% above the requirement. Debt cover is below zero in Year 1, 0.4x in Year 2, 4.7x in Year 3 and 6.3x or more after. A 1.25x covenant would fail in Years 1 and 2, so the loan request rests on the owners' $100,000 of equity and the reserve, and the bank is asked to begin testing debt cover with the year ending December 2029. Payroll with pay raises stays near half of revenue every year, 48% to 52%, because the product is skilled labor; only fuller crew calendars bring the share down.
Stress tests, one input at a time
Each row changes one input from the base case and nothing else, with no management response, and is run through the same model. Revenue rows also move dust-control supplies, callbacks, bad debt and peak overtime in proportion to revenue, and hold the direct-cost rate at 25.1%, so a row with fewer installs is not credited with the cheaper materials bill it would really get. Vans, fuel and mileage stay at base levels in every row. The last row is also a revenue row: it moves the 2027 revenue curve two months later, so November and December volume falls out of the year, and leaves payroll, rent and the other fixed costs where they are.
| Case | Net income Year 1 | Net income Year 2 | Net income Year 3 | Closing cash Year 2 | Closing cash Year 3 | Debt cover Years 2 / 3 |
|---|---|---|---|---|---|---|
| Base case | ($30,280) | ($9,336) | $47,616 | $40,506 | $61,366 | 0.4x / 4.7x |
| Revenue 10% lower, no response | ($51,103) | ($47,615) | ($47) | ($13,658) | ($38,376) | -2.2x / 1.0x |
| Revenue 20% lower, no response | ($71,926) | ($85,893) | ($54,613) | ($67,822) | ($145,022) | -4.7x / -2.7x |
| Direct costs 2 points higher | ($36,005) | ($20,005) | $39,348 | $24,522 | $37,287 | -0.3x / 3.7x |
| Wages 10% higher | ($44,682) | ($37,105) | $17,195 | ($1,665) | ($11,226) | -1.4x / 2.2x |
| Rent 10% higher | ($31,780) | ($10,881) | $47,190 | $37,461 | $57,895 | 0.3x / 4.6x |
| Field payroll load 4 points higher | ($32,200) | ($15,118) | $43,956 | $32,804 | $50,004 | 0.0x / 4.2x |
| Receivables at 45 days | ($30,280) | ($9,336) | $47,616 | $18,585 | $30,191 | 0.4x / 4.7x |
| Install jobs 30% fewer | ($57,340) | ($58,828) | ($19,287) | ($29,663) | ($72,591) | -2.9x / -0.3x |
| First jobs two months later | ($51,302) | ($9,335) | $52,894 | $19,485 | $45,623 | 0.4x / 4.7x |
The base case is fragile. A 10% revenue shortfall with no response spends the reserve in Year 2 and leaves cash negative afterward, 10% higher wages do the same, and 30% fewer installs is worse: a flooring company with payroll near half of revenue has little room. Higher rent and a four-point rise in workers' compensation load cost thousands but leave cash positive. A 45-day receivables blend cuts the Year 2 balance to $18,585. A two-month slip takes the lowest 2027 month-end balance to about $24,000 in June, which the reserve covers. Year 2 growth in that row is 107% because Year 1 is smaller, and Year 3 net income is above the base case only because the larger 2027 loss carries forward and shelters more Year 3 profit from tax.
One job in five goes to someone else
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $229,000 | $426,728 | $606,869 | $706,363 | $744,291 |
| Net income before start-up costs | ($51,452) | $436 | ($257) | $34,288 | $38,743 |
| Net income after start-up costs | ($64,052) | $436 | ($257) | $34,288 | $38,743 |
| Closing cash | $43,256 | $26,381 | $9,537 | $33,703 | $61,915 |
This case takes 20% off every revenue line in every year from January 2027. Dust-control supplies, callbacks and bad debt fall with the job count from the start, and the machine and crew-kit budget after Year 2 is cut to $2,000, $3,000 and $4,000. Peak overtime follows the downside's own crew calendar, $12,000 in Year 2 and $800 in Year 5: with crew two delayed to October, one crew carries June to August 2028 at 21.5, 24.0 and 23.6 crew-days against the 19 it can stretch to, and two crews cover the summers of 2029 and 2030, while 2031 runs 0.8 crew-days over their limit, which is the $800. Everything else waits for evidence. Terrence sees the shortfall by June and acts from July 2027, taking 20% less pay. From 2028 marketing is 20% lower and insurance 10% lower, the crew-one helper starts in July 2028 instead of February, crew two in October instead of May, and the coordinator in August 2029 instead of February. The apprentice is never hired. Vans, fuel and mileage stay at base levels. Owners take nothing until 2031, when $5,000 is paid, inside the $9,158 of profit earned over the five years. Year-end cash then stays at or above $9,537, reached in Year 3, and below the base case in every year. The lowest 2027 month-end balance is about $57,000 in July on the base case's monthly basis, while the year-end balance of $43,256 is lower because the statements also carry receivables and stock. Equity closes Year 1 at $35,948 against $69,720 in the base case. Year 2 earns $436 where the base case loses $9,336, only because the response saves more than the gross profit lost that year: the three delayed hires save about $73,000, Terrence's pay cut about $16,000 and lower marketing and insurance about $5,500, against $79,900 of gross profit lost and about $5,000 of extra net spending on summer overtime after lower job-linked costs. Cash is still lower. Year 3 loses $257 with both crews on payroll against fewer jobs, and Years 4 and 5 earn $34,288 and $38,743. Debt cover is below zero in Year 1, 1.1x in Year 2, just under 1.0x in Year 3, 3.3x in Year 4 and 4.0x in Year 5, so a 1.25x covenant would fail in Years 1 to 3. Terrence would ask the bank to waive the debt-cover test for 2027 to 2029, to use a minimum year-end cash balance of $5,000 in its place, since Year 3 closes at $9,537, and to bar distributions until cumulative profit is positive. The rough spring 2029 scaling used in the funding note puts the downside about $34,000 below zero before any credit line, so the $50,000 line matters most here. With no response at all, the same shortfall leaves closing cash at ($67,822) in Year 2 and ($145,022) in Year 3.
Sources
- U.S. Environmental Protection Agency, Renovation, Repair and Painting Program, page updated June 17, 2026. Anyone paid to perform work that disturbs painted surfaces in homes, childcare facilities and preschools built before 1978 must be certified in lead-safe work practices, including sole proprietorships.
- U.S. Environmental Protection Agency, RRP firm certification, page updated May 27, 2026. Lists Georgia among the states that operate their own program; the $300 EPA fee on that page applies to firms working under EPA's program.
- Georgia Environmental Protection Division, Lead-Based Paint: RRP. Companies performing renovation, repair and painting projects that disturb lead-based paint in pre-1978 residential properties and child-occupied facilities must be certified, use certified renovators and follow lead-safe work practices.
- Office of the Governor of Georgia, press release of May 11, 2026. HB 463 lowers Georgia's state income tax rate from 5.19% to 4.99% beginning January 1, 2026.
- 26 U.S.C. 11(b), Legal Information Institute. The corporate income tax is 21 percent of taxable income.
- 29 U.S.C. 206, Legal Information Institute. The federal minimum wage is $7.25 an hour.
- U.S. Small Business Administration, 7(a) loans. The program can fund equipment and operating cash needs.
- Georgia contractor-license thresholds, City of Atlanta business-license fees, Georgia lead-safe firm fees, wage levels, rents, material prices and insurance premiums are planning figures. Confirm each with the State Licensing Board for Residential and General Contractors, the City of Atlanta, Georgia EPD, local suppliers and an insurance agent.
Create a plan as complete as this one
Pick the amount of help you want.
Do it yourself
$197 Toolkit, 12 months
Build your plan with the AI Wizard and every tool you need, at your own pace.
Start my plan →Done with you
$497 Toolkit Plus, 12 months
Our AI builds the plan with you, section by section, from your answers.
Want a person too? Upgrade to a consultation with an MBA graduate.
See Toolkit Plus →Done for you
From $1,997 written for you
We research and write the whole plan, and you review the finished draft.
See the writing service →Still searching for a hardwood floor refinishing business plan template? Build yours here.