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Construction projects run over budget more often than not, and the most common reason is a business plan that never properly modelled cash flow. In project-based work you can be profitable on paper and still run out of cash waiting on milestone payments.
This sample plan shows how a construction, architecture, or engineering firm structures its project pipeline, manages the cash gap between milestones, and prices its services to hit a margin worth working for.
Follow how Summit Fell builds its proposal process and projects three years of revenue. Our Business Plan Toolkit is built for project-based service businesses like this one.
Executive Summary
Summit Fell is a firm specializing in mechanical, electrical, plumbing and fire protection. We provide engineering, design and consulting services on government, educational, health care and commercial facilities, and through subcontracting with architects working on such facilities. The firm provides engineering services using technologically superior processes, providing greater value for clients and enhanced design and construction. The target clients are architectural firms. The targeted work is segmented into five categories: educational, health care, commercial and government facilities, and contractors. Summit Fell’s competitive edge will be our knowledge of digital-based design resources. Superior customer service will also be a point of firm differentiation. Implementation of a quality control and assurance program will also provide a focus for production. Summit Fell, P.C. was created as a professional corporation chartered in Tennessee. The company is privately owned by its three founding partners: John Lavoie, who leads the firm as principal engineer, Tom Heasley and John Solarczyk.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $468,400 | $641,700 | $823,900 |
| Gross margin | 85% | 85% | 86% |
| Net profit / (loss) | $22,100 | $62,500 | $112,000 |
Company Overview
Summit Fell is a mechanical, electrical and plumbing (MEP) engineering firm operating in Memphis, Tennessee. The business was established to serve a growing demand for quality, specialist services in this sector, where many customers are underserved by larger, less responsive providers.
Mission: To deliver consistent, high-quality service to every client, building long-term relationships based on trust and results.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, build initial client base, reach monthly break-even |
| Year 2 | Grow revenue by about 35 percent, expand service capacity, hire an additional MEP engineer |
| Year 3 | Consolidate market position, target new customer segments, achieve strong net margins |
Market & Customer Analysis
Industry context
When we last checked (October 2026), the value of US construction work in 2025 was $2.16 trillion (US Census Bureau).
An MEP design firm sells staff time, so its figures turn on payroll rather than materials. The 85% gross margin looks high because the cost line holds only $70,300 of materials and subcontracted work against $468,400 of year-one revenue. The engineers sit further down, in salaries and wages of $311,600.
A common rule of thumb in design and consulting firms is that revenue should run at about three times salary cost: roughly a third for pay, a third for overhead and a third for profit. Summit Fell's year-one revenue is 1.5 times its wage bill ($468,400 ÷ $311,600), improving to 1.6 times by year three ($823,900 ÷ $511,700). That is well under the rule, partly because the wage line covers all four staff, including the CAD technician and administration role, and it explains why year-one net profit is only $22,100.
Cash timing matters as much as margin. Design fees are often billed at project stages, so one slow-paying architect client can leave the firm short in a profitable year. Break-even of $36,800 a month is 94% of an average year-one month of $39,033, and a common rule of thumb is to keep three months of fixed costs in reserve, which at $31,300 a month is $93,900.
Target customer profile
Summit Fell's primary customers are architectural firms and contractors in the Memphis, Tennessee area working on educational, health care, commercial and government facilities, who need a reliable MEP engineering partner. These customers prioritise quality and reliability over lowest price and are willing to pay a moderate premium for consistent results.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Large regional MEP engineering firms | Established brand, wide market reach | Higher price point, less personalised service |
| National multidisciplinary engineering consultancies | Strong national marketing presence | Generic offering, less specialist focus |
| Smaller local MEP practices | Competitive pricing at entry level | Limited digital design capability, limited specialist depth |
Summit Fell’s advantage: Specialist focus, personal service, and deep knowledge of the target customer segment are the primary competitive differentiators.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong service quality; clear target market positioning | Weaknesses: Limited brand recognition at launch; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing target market; underserved customer segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic conditions affecting discretionary spend; potential new market entrants |
Sales & Marketing Plan
Summit Fell reaches its target customers through direct outreach, referral and a professional online presence. The primary acquisition channels are relationships with architectural firms and contractors, word-of-mouth referral from satisfied clients, and the firm’s website and local search listings.
Pricing approach: Pricing is set at a modest premium to the local market average, reflecting the specialist quality and reliability of the service. All pricing is transparent and communicated clearly before work begins.
Sales process:
- Enquiry received by phone, email, or website contact form
- Initial consultation or discovery call completed within 24 hours
- Proposal or quote issued within 48 hours
- Contract or agreement signed; deposit collected where applicable
- Service delivered; follow-up contact made within one week of completion
Operating Plan
Summit Fell operates from Memphis, Tennessee with a lean team focused on service delivery quality over volume. Standard operating procedures cover client onboarding, service delivery, quality review, and client communication.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Founder / Principal Engineer | 1 | 1 | 1 |
| MEP design engineers | 2 | 3 | 4 |
| CAD technician / administration | 1 | 1 | 1 |
Key suppliers and partnerships: Summit Fell maintains relationships with a small number of trusted suppliers and subcontractors to ensure consistent service quality and the ability to manage periods of high demand.
Management Team
The founding partners of Summit Fell bring relevant industry experience and a clear understanding of the target market. Each has held senior roles in MEP engineering prior to starting the business and brings both technical expertise and commercial knowledge to the leadership of the organisation.
Hiring plan: As the business grows, the priority is to hire people who share the company's commitment to quality and client service. The business will promote from within where possible and invest in staff development to reduce turnover.
Financial Plan
3-year profit and loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $468,400 | $641,700 | $823,900 |
| Materials and subcontractor labour | $70,300 | $96,300 | $115,300 |
| Gross profit | $398,100 | $545,400 | $708,600 |
| Gross margin | 85% | 85% | 86% |
| Salaries and wages | $311,600 | $408,300 | $511,700 |
| Marketing and advertising | $9,200 | $11,400 | $13,100 |
| Rent and utilities | $28,300 | $29,400 | $30,600 |
| Other operating costs | $26,900 | $33,800 | $41,200 |
| Total operating expenses | $376,000 | $482,900 | $596,600 |
| Net profit / (loss) | $22,100 | $62,500 | $112,000 |
Break-even analysis:
- Estimated monthly fixed costs: $31,300
- Monthly revenue required to break even: $36,800
- Break-even is projected within the first year of trading.
Ready to write yours? Open the architectural engineering business plan template, fill in your figures and export it.