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1.0 Executive Summary
Asbestos removal is an extremely important service that is in demand among residential, commercial, and industrial property owners. As this material can cause substantial health risks, nearly every property owner that has asbestos within their properties will need to have it removed. Asbestos Removal Service, LLC (“the Company”) is a Chicago, Illinois based company founded by Peter Stevens. The business is currently seeking $250,000 to commence operations.
1.1 The Services
As stated above, Asbestos Removal Service will provide comprehensive removal of asbestos as well as other hazardous materials. The business will be licensed to handle HAZMAT materials as well as providing specialized demolition services. For each engagement, the Company anticipates that it will generate $50,000 to $200,000 depending on the size of the property.
The Company will coordinate these efforts with waste facilities that can accept asbestos and other hazardous materials. Asbestos Removal Service, at all times, will comply with all federal and state laws regarding the removal and processing of waste materials.
The third section of the business plan will further describe the services offered by the Asbestos Removal Service.
1.2 Financing
Peter Stevens is seeking $250,000 to launch the operations of Asbestos Removal Service, LLC. This business plan assumes that the Company will receive a 10-year loan that carries a 7% interest rate. Management will use the funds for the following:
• Vehicles
• HAZMAT removal equipment
• Professional fees and licensure
• Working capital
As Asbestos Removal Service will be a highly economically secure enterprise, the business can easily acquire additional rounds of capital to further expand operations. This event would most likely occur if Management expands its operations to include other markets within the Midwestern United States. This document further assumes that the ongoing growth of the business will be financed with retained earnings.
1.3 Mission Statement
Asbestos Removal Service’s mission is to provide comprehensive and safe removal of asbestos and hazardous materials from properties in a cost-effective manner.
1.4 Management Team
Peter Stevens is a highly experienced demolition contractor that has seventeen years of experience within this industry. He will able to properly provide services to Chicago area clients while expanding the revenue generating operations of Asbestos Removal Service, LLC on a yearly basis.
1.5 Sales Forecasts
1.6 Expansion Plan
Over the next three years, Asbestos Removal Service, LLC will continue to acquire additional equipment, vehicles, and personnel in order to carry out larger-scale hazardous material removal projects. The Company, after the third year of operation, may acquire companies that operate in a similar capacity.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Asbestos Removal Service, LLC. The business is registered as a limited liability company in the State of Illinois.
2.2 Required Funds
Peter Stevens is seeking $250,000 in order to establish the operations of Asbestos Removal Service. The funds are to be used for the following:
Management will provide $50,000 towards the venture.
2.3 Investor Equity
Peter Stevens, in the future, may work with a private funding source in the event that a property is acquired to further expand operations. However, this will not occur within the next three years.
2.4 Management Equity
Peter Stevens is currently the sole owner and member of Asbestos Removal Service. This capital structure may change if an investor is used to expand operations.
2.5 Exit Strategy
Given the secure nature of demolition and HAZMAT contractors, there is an immense demand among firms to acquire these companies. If it is financially prudent, the Company will work with a construction focused business brokerage to manage the sale to a third party. This event would not occur for seven to ten years.
3.0 Operations
Asbestos Removal Service, through its state-of-the-art equipment, will provide asbestos removal and general HAZMAT removal services. As an ancillary benefit to clients, the business will provide demolition services. The Company will operate in a direct contracting and subcontracting capacity. As stated earlier, the Company will generate $10,000 to $200,000 per engagement.
The business will maintain extensive insurance policies to protect the business. The Company will retain a qualified attorney to assist the Company in creating its employee handbook so that all staff members conform to the numerous policies and procedures when removing hazardous materials from a job site. Asbestos Removal Service will have substantial internal training programs in regards to this matter.
The Company will comply with all federal, state, and local regulations regarding the handling, removal, and waste processing of asbestos.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
At this time, the US economy is doing reasonably well. Interest rates and inflation rates are declining as a result of comprehensive policies enacted by the US Federal Reserve. It is expected that there will be no further increases in interest rates given that the rate of inflation is quickly falling.
Any future issues with the economy will not impact the Company’s ability to continue to acquire engagements for asbestos removal. As a result of numerous laws and regulations, property owners are required to remove asbestos and other hazardous materials from their properties. Additionally, Asbestos Removal Service, LLC will recognize substantial profits from each engagement.
4.2 Industry Analysis
There are currently 3,400 companies that provide specialized HAZMAT removal services and asbestos removal services within the United States. These entities aggregate generate $20 billion per annum. The industry employs 80,000 people.
The industry is expected to remain strong over the next ten years and then decline as older buildings will no longer have asbestos. At this time, the Company will act in a general demolition capacity given the infrastructure that is in place.
4.3 Customer Profile
Any company or individual that owns a property that has asbestos or other hazardous materials within the Chicago metropolitan area is a potential client of Asbestos Removal Service, LLC. The Company, through its extensive operating infrastructure, will be able to cater to the needs of clients of all sizes. Management anticipates that these property owners will have a property that is older than sixty years. As will be discussed in the next section of this business plan, the Company will use a number of high impact marketing strategies that will create substantial awareness for this business at the onset of operations in the Chicago market.
In this section, you can further document the reasons why you have chosen your market to launch your asbestos removal service. Most importantly, you should discuss the approximate number of buildings and facilities that still have asbestos present. You can also indicate the demographics of your target market including annual revenues, property values, and their budgets for asbestos removal and remediation services. These enterprises tend to do very well in markets where there a number of older buildings present.
4.4 Competition
The ongoing competition that Asbestos Removal Service, LLC will face is moderate. The business will have a specific niche for removing and remediating issues related to asbestos. Most importantly, the Company will be able to carry out these contracting engagements in a cost-effective manner. Here, you can indicate the ways in which you will have competitive advantages over other market agents. You can focus on cost effectiveness, licensure, and related matters.
5.0 Marketing Plan
Asbestos Removal Service will use numerous marketing strategies in order to create substantial brand name awareness in the Chicago market. Most importantly, the Company will work with general contractors and construction firms so that the business can operate in a subcontracted capacity when asbestos removal is needed. The Company will also implement a number of online driven strategies.
5.1 Marketing Objectives
• Foster ongoing relationships with construction firms throughout Chicago.
• Develop a search engine friendly website for Asbestos Removal Service.
• Advertise the Company’s services in trade journals.
5.2 Marketing Strategies
As discussed above, maintaining ongoing relationships with construction firms and contractors throughout the Chicago market will ensure that the business is able to receive ongoing work at the onset of operations. Management will directly contact businesses in this market to create referral and subcontracting relationships.
The Company will also maintain an interactive website that showcases all facets of Asbestos Removal Service’s operations. This platform will feature content rich information about the asbestos removal process and the anticipated costs that a property owner can expect from these services. The website will be search engine optimized specifically for the Chicago market. The Company will post videos of completed projects while also providing ongoing information about the business.
The business will coordinate with a regional advertising agency in order to place half-page and full-page ads among trade journals that are specific for the Chicago market. These will be highly targeted advertisements as the Company does not need to directly market its services to the general public.
The Company will also establish relationships with municipalities in order to receive referrals when asbestos removal and remediation are required for city owned buildings. This will be a more modest aspect of the Company’s overall marketing campaign.
Asbestos Removal Service will also maintain a presence on social media with a focus on LinkedIn. The business will target Chicago based professionals that work in the construction and contracting industries.
5.3 Pricing
Depending on the size of the asbestos removal or HAZMAT removal project, the Company will generate $50,000 to $200,000.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• Asbestos Removal Service, LLC will acquire a $250,000 loan (SBA) in order to commence operations.
• Management will invest $50,000 towards the establishment of the business.
7.2 Sensitivity Analysis
Asbestos Removal Service’s revenues are wholly immune from negative changes in the economy. The demand for asbestos and HAZMAT removal remains strong in any economic climate as laws and regulations require remediation for these matters. The Company will have highly controllable operating costs, which will further contribute to the stability of the business.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
