Executive Summary
The Hardwood Co has found considerable success by offering quick and affordable hardwood floor refinishing services for both residents and businesses. This particular focus on quick turnaround times has helped us establish ourselves as a stalwart in the industry.
Another aspect of our business that has helped us stand out from the competition is the strict use of non-toxic, water-based, finishes. This is a safer alternative for our customers and the environment. What's more, water-based finishes have a far more pleasant odor than high-VOC polyurethane finishes, which are typically oil-based. This means our customers don't need to vacate the refinished area for days on end.
We have extensive experience using Vermont Natural Coatings, Paperstone, Bioshield, and Silacote. These are amongst the safest hardwood floor refinishing brands in the world.
We've made significant investments in our marketing tactics to further increase our market share. Both social media marketing and traditional advertising form part of our promotional strategies. Our sales and marketing budget has allowed us to exhaust various channels to spread the word about The Hardwood Co - both locally and nationally.
Our sales forecasts suggest that we'll generate at least $480,000 over the next financial year. This indicates a growth of 2,5%, which we expect to achieve YoY. An investment of $700,000 will allow us to invest in our marketing and recruit more staff to meet the increasing demand.
The Hardwood Co is seeking $40,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Gross margin | 73% | 73% | 73% |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Company Overview
The Hardwood Co is a hardwood floor refinishing service founded by Nathan Brooks, operating as a LLC. Headquartered in Charlotte, North Carolina, USA, The Hardwood Co was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
The Hardwood Co was founded by Graham White and Conor Locklear in 2006. The company is based in Atlanta, Georgia, and is registered as an LLC. Graham and Conor are the CEO and CFO respectively.
Graham White has extensive experience working as a softwood and hardwood floor refinisher. He received no formal training for this skill but excelled to the point that his former boss promoted him to Project Supervisor on countless occasions.
Graham set out on his own as a freelance floor refinisher and needed someone on board to help him promote the business. That's when he met Conor Locklear, an equally ambitious marketing graduate fresh out of Georgia Tech. Together, they set up The Hardwood Co and have grown it from strength to strength.
To date, the company has generated just over $1,400,500. Last fall, the company was mentioned in The Home Insider as one of the ‘House and Home Businesses To Watch.’
Our primary mission is to build upon our notoriety of being the hardwood floor refinishing company with one of the quickest turnaround times in all of Atlanta. We've already taken strides to achieve this by investing in state-of-the-art equipment and water-based polyurethanes - making us up to 5x quicker than the vast majority of our competitors.
Market & Customer Analysis
The hardwood floor refinishing market is especially vibrant in the US. It's currently valued at just under $50 billion and is set to reach $70 billion over the next 9 years. This indicates a compound annual growth rate of at least 3,5%.
By continuously assessing market conditions, we've been able to position ourselves effectively. The hardwood floor refinishing market is booming in Atlanta. More and more young wealthy couples, middle-aged professionals, and retirees are attracted by the affluent suburb of Cabbagetown in Georgia.
This has resulted in a surge of real estate developments including stores, homes, offices, and schools; all of which may be in the market for hardwood floor refinishing every couple of years.
We source our supplies from a water-based producer of Polyurethanes from a factory in Wisconsin, which has reduced our costs significantly. By making bulk orders, we've managed to negotiate an even better rate. Our customers, who have a relatively disposable income, are happy to pay top dollar for our services. Especially given our favorable reputation in Cabbagetown.
We still have a sizable database of suppliers across various state lines in case of any emergencies.
There are only three other companies in Cabbagetown that offer Zero-VOC hardwood floor refinishing. By offering competitive prices and having a distinct focus on speed, we've been able to retain our considerable market share.
Working closely with private market analysts has also contributed to our acute awareness of the market landscape.
Customer analysis:
Our target customers are based in and around Atlanta, Georgia. This is where almost 70% of our business is conducted. We've been fortunate enough to be commissioned by firms and educational institutions in Maine, Seattle, New Jersey, Louisville, and more. This is a result of aggressive marketing, competitive pricing, and healthy relationships with a network of real estate developers. Our target customers typically make at least $40,000 per annum and are employed full-time. These are 2nd or 3rd-time homeowners who understand the gravity of maintaining their hardwood floors at least once every 3 years.
They live relatively busy lives, so they place great importance on swift refinishing jobs. The vast majority of our competitors require a minimum of 2 days to complete a comprehensive refinishing job. This is due to various factors such as a shortage of staff, mediocre equipment, and the use of finishing treatments that release toxic fumes.
One key observation we've made about our competitors is that they're environmentally conscious and would opt to refinish their hardwood with water-based treatments 100% of the time.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| LL Flooring | Established brand, wide reach | Higher price point, less personalised |
| Empire Today | Strong marketing, national presence | Generic offering, less specialist focus |
| Floor Coverings International | Competitive pricing | Lower service quality, limited expertise |
Hardwood Floor Refinishing Service's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Our sales strategy is heavily targeted toward businesses, financial institutions, and other organizations that operate from buildings that may need to have their hardwood floors refinished.
Our talented sales team reaches out to this target market segment directly and informs them about our services. This proactive sales approach has accounted for 77% of our total revenue to date.
Our prices are significantly higher than that of our competitors. We've priced our hardwood floor refinishing services based on our quick turnaround times, quality of solvents, and the sheer affluence of our target audience.
Our high quality of customer service has helped us build a loyal following. Our target audience also refers us to clientele, which helps us meet our objectives consistently.
Additional marketing notes:
Our marketing strategy is based primarily on social media and emails. Social media is an essential part of marketing for just about any business that has ambitions to become an authority. We've hired a talented social media manager who’s responsible for driving our digital platforms forward. This has resulted in 61,000 followers and counting, which is impressive for a fish farming business.
To complement our robust social media following, we maintain a close relationship with our clients by signing them up for our weekly newsletter. We have an average open rate of 37%. This indicates that our potential customers are relatively engaged with our marketing messages.
Promotions, discounts, and all recent news about our business is communicated via email.
In order to engage our customers further and become more of an authority in the fish farming industry, we also create blog content focused on fish recipes. This has not only increased our web traffic, but also
Operating Plan
Personnel Role Tasks Justin Lewis Lead Technician Leading our team of technicians Manuel James Floor Refinishing Technician Staining and sealing of our client’s floors Juliette Price Admin Assistant Storing of files Mason Bright Customer Service Rep Dealing with customer inquiries and scheduling appointments Fiona Right Apprentice Assisting to the lead technician Gina Given Sales Rep Overlooking sales and customer inquiries
Management Team
CEO, Graham White
Graham White has led us to our success in this industry. Along with our co-founder, Conor Locklear, he's made the strategic decisions that have enabled us to beat our direct competitors. Graham studied business management at UCLA.
CFO, Conor Locklear
Conor Locklear is proficient when it comes to balancing the books. He's had a passion for numbers ever since elementary school.
HR Manager, Hope Davidson
Hope is responsible for ensuring that we hire all the right personnel. Thanks to her, we've recruited the right people. Like our CEO, she studied business management at UCLA.
Financial Plan
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Direct labour and contractor costs | $86,400 | $151,200 | $237,600 |
| Gross profit | $233,600 | $408,800 | $642,400 |
| Gross margin | 73% | 73% | 73% |
| Salaries and wages | $102,400 | $179,200 | $281,600 |
| Marketing and advertising | $35,200 | $61,600 | $96,800 |
| Rent and utilities | $24,000 | $24,000 | $25,200 |
| Other operating costs | $19,200 | $28,000 | $35,200 |
| Total operating expenses | $180,800 | $292,800 | $438,800 |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Break-even analysis:
- Estimated monthly fixed costs: $15,100
- Monthly revenue required to break even: $20,600
- Break-even is projected to be reached within the first 12–18 months of trading.