Luntian Doors andWindows Corp. Business PlanThe Table of ContentsExecutive Summary 1Mission 4Company Overview 5Proucts an Services !The Mar"et 15Market Definition 15Market Segment 15Marketing 17Position 17Pricing 17Distribution Channels18Advertising andPromotion 18Competition #$ %is"&Opportunity ##Mana'ement Team #4Capital %e(uirements #5)inancial Plan #!Assumptions7!inancial Statements7Luntian Doors andWindows Corp. Bussiness PlanExecutive Summary"hether one is aiming an elegant# energ$ efficient# or a secure home amidst the rapidl$ changing outlook for taste in fanc$ accessories for their respective homes# the rising issues in energ$ consumption the %orsening challenges being given b$ the environment# families have been having a great problem in addressing these things simultaneousl$& 't %ould then not be surprising that s$nergisticall$ addressing these things has long been a dream for man$# but# b$ introducing the products and services being offered b$ our compan$# Luntian Doors and Windows# such dreams that seemed ne(t to impossible turns them into a realit$&"e# at Luntian Doors and Windows# have been providing our customers %ith the utmost )ualit$ products superior to others# use onl$ the finest products and cutting*edge technolog$ in our field# to meet the undoubting high e(pectations being set b$ the customers and the respective circumstances& +ur outstanding and e(emplar$ staff has been thoroughl$ trained to help the customers select the t$pe of door or %indo% the$ need# %hether it be interior or e(terior# metal# glass or %ood# having been elegantl$ garnished or simpl$ decorated# among others&+ur %indo%s and doors are speciall$ set up to meet all of the challenges being offered b$ the environment# such as harsh %inds# raining conditions# and e(treme heat& ,e have been licensed and insured compan$ %ith a seemingl$ uncountable $ears of e(perience- our proven )ualit$ %orkmanship and our %ide variet$ of selections have continuall$ set us apart from the competition being set b$ other companies& +n the other hand# if one is looking for%ard for high 1 | P a g eLuntian Doors andWindows Corp. Bussiness Plan)ualit$ services# especiall$ for those looking for%ard for replacement of doors and %indo%s# %e have been offering a %ide variet$ of brands and st$les to choose from& +ne ma$ check out the great selection for replacement for doors and %indo%s# and be surprised that a home that seemed degraded ma$ be turned into an elegant one# b$ changing the out*of*st$le doors and %indo%s# %hile simultaneousl$ ma(imi.ing the efficienc$ being brought&Luntian Doors and Windows manufactures custom %ooden doors and %indo%s# primaril$ for residential construction& Doors /solid %ood# %ood0glass or %ood0brass1 account for 234 of gross sales %hile %ood*frame %indo%s account for 134& +ur products are sold to Southern +ntario retailers %ith an increasing portion going to e(ports& 5he compan$ started b$ selling to the ne% home market in 1288 but in response to changes in the marketplace is no% a leading supplier for the up*scale renovation market&+ur implementation plan %ill be carried out in t%o parts6 prepare for manufacturing# and marketing and selling the product& 'n preparation for manufacturing# %e plan to hire cheap labor and train them to engage them in full*service sales and installation purposes dedicated to satisf$ the needs for the customer7s doors and %indo%s& 5hat is# %e %ill purchase the re)uired materials ** steel# plastic# %ood# and other t$pes of materials depending on the product ** from %holesale companies in bulk# build our o%n protot$pe for a specific product# and thoroughl$ test our protot$pe before starting mass assembl$& "e estimate our startup time# completion of the first successful protot$pe# to be appro(imatel$ ranging from a %eek to up to three %eeks& +ur )ualified team has e(pertise in such %orks# %hich %ill ensure successful product development and an unmatched reliabilit$ and )ualit$&2 | P a g eLuntian Doors andWindows Corp. Bussiness Plan'n marketing and selling the product# %e plan to hire kno%ledgeable salespeople# capable of convincing customers to promote the upliftment of their )ualit$ of life& 5o promote our product%e %ill sponsor $oung surfers# team up %ith companies selling complimentar$ products# and involve the compan$ in surfing communit$ events such as competitions& 5he total estimated cost for the installation and fabrication of doors and %indo%s shall var$ per piece# %hich shall be influenced mainl$ b$ the specific characteristics of the said product& Markups shall not be initiall$ included&Luntians Doors and Windows is one of the companies in the gro%ing market eager for inventive ne% products and upgrades& "e at Luntians Doors and Window believe that the products and services %e provide %ill create a more advanced and more productive e(change of products to the ever*gro%ing industr$ of doors and %indo%s& "ith our proposal# %e offer $ou thechance to 8oin an industr$ %ith a strong trend of gro%th&3 | P a g eLuntian Doors andWindows Corp. Bussiness PlanMission Statement5he Luntian Doors and Windows mission is to be the recogni.ed and the leading name in the manufacturing of high )ualit$ %indo% and door accessories# parts and services& 9eing a performance leader means# %e %ill achieve operational e(cellence# industr$*leading customer satisfaction and superior financial performance&"e aspire to carr$ a reputation in the marketplace for developing and delivering our products# that is# our doors and %indo%s in a time saving and better*%a$ products sold at a fair price for uses in the market in a professional %a$& "e can achieve such a thing b$ closel$ understanding the market trends and needs of the public# having innovative and profitable merchandising and packaging and b$ having a cutting edge product development&5o accomplish our goal# 5he Luntian Doors and Windows needs a capital to start %ith# ane(perienced set of managerial staffs to keep the compan$ moving for%ard to%ards its goal# and b$ having larger and more efficient facilities& 'n such a manner# achieving the said goals %ould bemet in no time&'n pursuit of our goal# %e resolve to treat stakeholders# customers# and the communit$ %ith utmost professionalism# honest$ and obe$ing the rules set b$ the respective parties& 5hese groups see our compan$ as providing an improved )ualit$ of life that have been derived from ourstriving compan$&4 | P a g eLuntian Doors andWindows Corp. Bussiness PlanCompany Overview5he Luntian Doors and Windows manufacture custom %ooden doors and %indo%s# primaril$ for residential construction& Doors /solid %ood# %ood0glass or %ood0brass1 account for 234 of gross sales %hile %ood*frame %indo%s account for 134& +ur products are sold to retailers %ith an increasing portion going to e(ports& 5he compan$ %ill start selling to the ne% home market in but %ishes to be a leading supplier for the up*scale renovation market&+ur products fit %ell into overall social and economic trends& :enovation investment has continued to increase as the population ages6 people tend to sta$ more at home and invest in their comfort /cocooning1& 'n addition# our market niche is fairl$ %ell protected against fluctuations in the real estate market6 high*)ualit$ doors and %indo%s add both resale value and comfort& 'n 331# renovation and alterations accounted for ;8&74 of household pesos and additions accounted for ocal artisans= products are most similar to ours# and %hile the$ generall$ have close relationships %ith architects and local builders# the$ are unable to suppl$ the larger retailers because of their si.e and more speciali.ed nature of their products& Luntian Doors and Windows advantage reside in its niche6 %e are big enough to suppl$ large retailers# $et offer high*)ualit$ %ood products that respond directl$ to the tastes of the mid to high*end market segment& @ven :ockefeller "indo%s and Doors higher )ualit$ products do not match our custom glass carvings and brass inla$s# and the Gone*si.e*fits*allG approach of the competition allo%s ample room for smaller speciali.ed competitors such as Luntian Doors and Windows to thrive& "e intend to continue positioning our products in the higher end of the market& 'n superstores# %here our products are at the greatest disadvantage beside DE Doors and "indo%s7# our point*of*sale marketing efforts /H!eel the DifferenceI series1 have paid off and our sales remain strong&Risks and Opportunities-usiness %is"sSome of the ma8or risks facing our development include limited operating hours# limited resources and hence# had passed do%n to production uncertainties& ,aving these problems rootedmainl$ from the limited resources that greatl$ affected the production& "hile the suppl$ of the ra% materials needed is considered to be unlimited to some certain points of time# the )ualit$ of these sources var$&Providing )ualit$ materials is no eas$ task# and hence having a limited resource %ould impl$ a limited product being produced& 5he result of variabilit$ in log )ualit$ is lo% $ield from primar$ breakdo%n& Asing a customi.ed production s$stem# that %ill have to be developed# it %ill be difficult to leverage profits from fi(ed costs particularl$ at earl$ stages of the business&,ence# no%# since the resources being delivered varies from time to time# uncertaint$ issues arise and hence transform the problem itself to the limit in operating hours and production uncertainties& Also# it is also an emerging threat to the compan$ the increasing environmental and certification re)uirements for ra% materials that ma$ put do%n%ard pressure onto the industr$& 'nitiall$ profits %ill be lo%# resulting in tight cash flo%s and little fle(ibilit$&OpportunitiesAlthough our business toda$ has its share of risk# %e feel %e can overcome these risks because of the skilled professionals and emplo$ees %e have recruited& 5heir e(pertise and the e(perience in similar instances %ould then be of great help in alleviating or# if possible# eliminating the said problems& "e %ill address the limitations being brought to our compan$ b$ doing a comprehensive stud$ to pave a %a$ in giving certain alternatives to keep the scorching determination of the compan$ to%ards success running# and to further complement the said solution# %e shall also be partnering %ith a larger compan$ %ho kno%s the market# and have had a much broader e(perience in such& ,aving their thoughts and opinions regarding the problems %ould be of great help to our compan$&'f %e are able to overcome these risks# our compan$ has the opportunit$ to continuall$ dominate a niche in the marketplace# and conse)uentl$# become a ma8or force in the industr$ in the production of doors and %indo%s# and the services %e render& "e feel our brand# and our compan$ in general# could become kno%n as the premiere supplier of high )ualit$ products and services in the door and %indo% industr$# and being a role model in such an endeavor& "e think %e can achieve this goal in the ne(t fe% $ears# possibl$# b$ 5 $ears& $anager$anager$anager$anager$anager$anager$anager$anager$anager$anager$anager$anagerManagement TeamC%!Distri&ution Produ'tion (''ounts#e'ie)a&lePur'*asing "ales $ar+eting,i'e President"ales - $ar+eting%.e'uti)e"e'retar/,i'e President0inan'e - (''ounting,i'e PresidentProdu'tion andDistri&utionCapita Re!uirements"e seek a sum of1#533#333&33 of additional senior financing to fund our gro%th for the ne(t three $ears& At that time# %e %ill need an additional ;33#333 to reach a positive cash flo%position& 5he initial stage of funding %ill be used to complete development of the business# to purchase e)uipment# to introduce and market our ne% product line# and to fund %orking& ,ere is a breakdo%n of ho% the funds %ill be spent- Complete Development833#333 Complete development includes6 >egal e(pense for obtaining licenses and permits as %ell as accounting services totaling 53#333 'nsurance coverage of 33#333 Pre*paid rent e(pense formonths for the %arehouse at 133#333 Pre*paid rent e(pense formonths for the office atC3#333 Premise remodeling in the amount of 33#333 Purchase @)uipment;33#333 Market our ne% product line33#333 !und %orking capital;33#333 !und %orking capital includes6 Start*up e(penses of 133#333 Start*up Assets of 33#333 "e can provide and e(it for this investment %ithin 13 $ears b$ the sales earned b$ the compan$&9ased on our pro8ections# %e feel an investment in our Compan$ is a sound business investment& 'n order to proceed# %e are re)uesting an investment of 1#333#333 b$ Danuar$31C&"inancia Pan5he follo%ing assumptions %here made in order to perform financial forecasting6 Stead$ gro%th of log home building industr$ Annual compan$ gro%th of 13*154 Access to financing as re)uired b$ business plan Anlimited suppl$ of timber at a stead$ cost 'nterest and 5a(ation as follo%s6