PRODUCT OR SERVICE DESCRIPTION 1

Products and Services 1

Mission: 1

Bio of Principal Owner 1

GENERAL MARKETING PLAN 2

Industry Analysis and Overview 2

Business SWOT Analysis 2

Business Target Markets 3

Competition Analysis 4

SALES AND MARKETING STRATEGY 6

Products and Services Offered: 6

Place 6

Price 7

Promotion 7

OPERATIONAL PLAN 7

Team/Roles and organizational structure 7

Business Location 8

Short-term goals (include 1st year financial goals) 9

Long-term goals (include 5th-year financial goals) 9

FINANCIAL PLAN 9

Sales Forecast Assumptions 9

Payroll Cost Projection 10

Financing 11

Projected Startup cost. 11

References 13

Executive Summary

Dream Craft Renovations is a new, growing firm providing home renovation and remodeling services located in Springfield, Illinois. The business mission is to convert ordinary and obsolete houses with unique design and craftsmanship artistry, thus demonstrating sustainability concerns. Dream Craft Renovations offers quite a broad range of services, such as interior design, carpentry, and landscape design, which can all be adjusted to meet the client’s specifications. The organization will partner with the best providers of building materials, which are Cambria, and the best producers of paints and wallpapers. Sherwin-Williams and Benjamin Moore. These partnerships guarantee that quality should not just be limited to beauty and durability standards, but also be the principle of environmental sustainability to which Dream Craft Renovations is devoted. In regard to the target neighborhoods, Dream Craft Renovations mainly focuses on clients who reside in Springfield, Peoria, and Chicago, and provides the best quality renovation services to individuals between 30 and 60 years of age, and focuses on houses that are at least ten years old. The company distinguishes itself by offering customers better quality, a wider product range, and excellence in customer satisfaction as its ambition.

Daltile, a leading producer of high-quality and diversified tiles, will be our main source for floor tiles. As for our fitting materials, Cambria will be our supplier of top-quality quartz countertops, while Kraftmaid will be our cabinetry of choice, accommodating various design preferences. The startup has a plan of funding that is made up of $21,240 from savings, $5,310 from funds from family members and friends, and a $8,850 bank loan. The enterprise sets up specific financial targets, with the goal for the first year of operation being to reach a revenue of $1.0 million and then to increase the annual turnover to $3 million by the fifth year.

Dream Craft Renovations

Product Or Service Description

Products and Services

Dream Craft Renovations will provide a diverse range of product categories and services that meet the needs of each individual customer. The organization offers a comprehensive suite of home renovation and remodeling services tailored to meet the unique needs and aspirations of our clients. Our portfolio consists of the following: expert interior design services that assist in clients’ visualizations and conceptualizations of ideal home environments. Our services also include carpentry works, in which we produce custom-made furniture and fittings that our clients find fascinating. Moreover, we offer landscaping design, outdoor spaces that are beautiful, quiet, and convenient extensions of the house. With Dream Craft Renovations, every project implies a creative combination of modern design, functionality, and rigorous craft, upgrading your home into a dream dwelling.

Mission: At Dream Craft Renovations, our mission is: "Transforming houses into dream homes through innovative design and expert craftsmanship." 

Bio of Principal Owner

As the principal shareholder of Dream Craft Renovations, I offer a unique craftsman's vision and technical know-how in home renovation. Despite being a manager, I have two years of experience in architectural design and project management. I have developed a keen eye for detail and a passion for transforming spaces. As a manager, my journey in architecture began to nurture a special love for eco-friendly design practices, which I would promote within our projects. I am also an art lover, which underpins my aesthetic and functional prism of outlook.

Industry Analysis and Overview

This business works in the home renovation and remodeling industry and offers renovation and remodeling services alongside other building products for both property owners and prospective homeowners. It includes activities and services for improving, renovating, or restructuring the properties in a residential setting. These include kitchen and bathroom renovations, basement finishing, room additions, and interior design consultations (Pelchen, 5).

The home renovation and remodeling industry has been growing rapidly at an average annual rate of 5.3% between 2017 to 2022, with the market size exceeding 420 billion dollars (Smith, 4). This improvement is due to the advanced concept of ageing infrastructure updates, better life occasions, and modern tastes. This period was marked by a notable increase in the DIY approaches towards interior decor and renovations, especially as dwellers sought to customize their domestic arrangements for a new set of uses during the COVID-19 pandemic. A significant direction is the movement towards ecological renovations, even though it was less rampant during the pandemic. This industry generally includes firms mainly refurbishing, renovating, and restoring residential homes and buildings. This includes a range of services from minor repairs and updates to significant alterations and complete opposite remodeling jobs.

Business SWOT Analysis

Table 1: Business SWOT Analysis

Business Target Markets 

Dream Craft Renovations targets homeowners in affluent neighborhoods within Springfield, Peoria, and Chicago. The demographic focus is on individuals with an average family income ranging from $80,000 to $150,000 per year, primarily adults aged 30-60, who seek home upgrades. Additionally, we target homeowners who own homes that are at least 10 years old and are in need of renovation. This market is appealing because of the more significant proportion of people with an average family income and because these are those who already own at least one house that requires renovation (Wenger & Zaber, 6). Recent trends show a substantial portion of homeowners engaging in renovation activities, emphasizing the demand within this demographic.

Geographic Areas (Springfield, Peoria, and Chicago)

Fig. 1: https://www.nationsonline.org/oneworld/map/USA/illinois_map.htm

Competition Analysis

• Direct Competitors: Alexander Remodeling and Tedrick's Home Renovations

Dream Craft Renovations is in a competitive environment comprising direct and indirect competitors. The main competitors are local renovation companies like Alexander Remodeling and Tedrick's Home Renovations, which offer a similar size and scope. Alexander Remodeling and Tedrick's Home Renovations cater to the same market segment, offering top-notch renovation services to the mid-high-end market. Alexander Remodeling, located at 1240 N Daniels Ave, Springfield, IL 62702, USA, specializes in Kitchen and Baths, Plumbing, Electrical, and Heater Systems. Besides, Tedrick's Home Renovations, located at 2110 N Republic St, Springfield, IL 62702, focuses on kitchen, bathroom, bedroom, living room, and basement renovations. Knowing their operations and market approach enables Dream Craft Renovations to differentiate its services through innovative design and excellent craftsmanship.

Direct Competitors

Fig 2: Direct Competitors: Alexander Remodeling and Tedrick's Home Renovations

• Indirect Competitors: Creasey Construction and Michael Nash Design

Indirect competitors are larger construction companies and national chains that provide a wide range of construction and renovation services, for example, Creasey Construction. These entities compete on a larger scale for the same customer base, particularly for large-scale renovation projects. Creasey Construction, located at 3540 S Park Ave, Springfield, IL 62704, USA, represents an indirect competitor, operating as part of a national chain that offers a broad spectrum of construction and renovation services in areas within Texas. Unlike direct competitors, Creasey Construction and similar entities cater to a wider customer base across various scales of projects. They pose competition by offering convenient, one-stop solutions for both minor repairs and significant renovations.

Indirect Competitors

Fig 3: Indirect Competitors: Michael Nash Design

SALES AND MARKETING STRATEGY

Products and Services Offered:

Building Materials: Floor Tiles, Countertops, and Cabinetry

Design Elements: Wallpapers, Paints, and Decorative Accessories

Services: Interior Design Consultation: Free Consultation and advice on color schemes, layouts, and material selections for cohesive and visually appealing interiors

Place

Our products and services are primarily sold through direct consultations with Springfield, Peoria, and Chicago homeowners. Consultations take place at our showroom located at 3124 Harrison Ln. In unit C, Springfield, IL 62702, clients can view samples, discuss project ideas, and receive personalized recommendations.

Price

Pricing Strategy: Our pricing strategy is based on factors including materials, labor costs, market competition, and perceived value. We aim to offer competitive prices while maintaining profitability and quality standards (Munro, 4).

Promotion

1. 1. Referral Program: Implement a referral program offering discounts or incentives to clients who refer new customers.

Encourage satisfied customers to leave positive reviews and testimonials on our website and social media platforms.

1. 2. Networking and Partnerships: Build relationships with real estate agents, contractors, and interior designers for referrals and collaborations.

Attend networking events, industry conferences, and trade shows to connect with potential clients and industry professionals.

1. 3. Seasonal Promotions: Offer seasonal discounts or promotions such as "Spring Renovation Specials" or "Summer Makeover Deals" to capitalize on seasonal trends and increase sales. Top of Form

Team/Roles and organizational structure

1. Employees

The organizational structure of Dream Craft Renovations includes positions such as General Manager, Project Managers, Design Consultants, Marketing and Sales Personnel, and Skilled People (e.g., carpenters, electricians, plumbers).

Organizational Chart and Employee Structure

Fig. 4: Dream Craft Renovations Organizational Chart

Operation Hours: Our hours of operation are set to accommodate our clients' busy schedules, open from Monday to Friday, 9 AM to 8 PM, and Saturday, 10 AM to 6 PM.

Form of Ownership: Dream Craft Renovations shall be a Limited Liability Company (LLC). This decision has various factors that favor the business and the owner. The LLC structure offers considerable liability protection, guaranteeing that the owner's assets are protected from business liabilities and debts. This is vital for a renovation business where project risks and disputes may occur.

Business Location

Location Analysis for Dream Craft Renovations

Dream Craft Renovations strategically selected its headquarters at 3124 Harrison Ln. Unit C Springfield, IL 62702. This part fits our business objectives and the target audience for several reasons. Our location is close to major highways and roads, conveniently accessible for our clients from Springfield, Peoria, and Chicago to come to us for consultations and project discussions. This is essential to maintain high customer engagement and the personalized service Dream Craft Renovations is known for.

Short-term goals (include 1st year financial goals)

1. Revenue Target: Achieve a revenue milestone of $1.0 million in the first year by completing approximately 100 projects, averaging a project value of $10,000.
2. Market Penetration: Secure a 6% market share in the Springfield, Peoria, and Chicago areas by focusing on our target demographic of homeowners looking for high-quality renovations.
3. Customer Satisfaction: Achieve a customer satisfaction rate of 95% or above, as measured by post-project surveys and online reviews.

Long-term goals (include 5th year financial goals)

• Revenue Growth: Increase annual revenue to $3 million by year 5 through geographic expansion, service diversification, and repeat business.
• Market Leadership: Become a leading home renovation and remodeling service provider in Illinois, with a market share of 15% in our operational areas.
• Sustainability: Implement sustainable and eco-friendly practices in 100% of our projects, reducing our carbon footprint and supporting our clients' desires for green living spaces.

Sales Forecast Assumptions

Dream Craft Renovations' forecasts are based on market research and the expected demand in Springfield, Peoria, and Chicago. We anticipate a booming popularity of home renovations motivated by a trend of home personalization and the rise of remote work. The sales strategy involves targeted marketing campaigns, partnerships with real estate agencies, and positive customer testimonials.

Payroll Cost Projection 

Based on the organizational structure, we will have a mix of salaried and hourly employees. The General Manager, Project Managers, and Design Consultants will be on a salary, while Marketing and Sales Personnel and Skilled Tradespeople will be hourly.

Payroll Structure and Costs

Table 2: Payroll Structure and Costs

Operation Hours Consideration: Considering the operation hours (Monday to Friday, 9 AM to 8 PM; Saturday, 10 AM to 6 PM), the staffing will be adjusted to ensure coverage during all open hours, with additional staff during peak hours and weekends.

Financing

Dream Craft Renovations will be funded through a blend of sources, including $21,240 from the owner's savings, accounting for 60% of the total required funds. Contributions from family, relatives, and friends will add another $5,310, making up 15% of the funding. The remainder, amounting to $8,850 (25% of the needed funds), will be secured through a bank loan. This loan, carrying a 5% interest rate, will be repaid over 5 years.

1. Owner's Savings: 60% of the total funding = $21,240
2. Family, Relatives, and Friends' Contribution: 15% of the total funding = $5,310
3. Bank Loan: The remaining 25% = $8,850

Total Start-Up Cost: $35,400.

Projected Startup Costs

Start-Up Costs

Table 6: Start-Up Costs

Total Estimated Start-Up Costs: $35400