FORMULA ONE TILING
BUSINESS PLAN MARCH 2007
Strictly Private & Confidential
Sole Trader Mr Stephen Watson Formula One Tiling 14 Silton Grove Stockton-on-Tees TS18 5AT
EXECUTIVE SUMMARY Company Information Business Name: Formula One Tiling Address: 14 Silton Grove, Stockton-on-Tees TS18 5AT Business Structure: Sole Trader Sole Proprietor: Mr Stephen Watson (Steve) Primary Contact: Mr Stephen Watson Telephone: 01642 651590 Email: steve.watson@f1-tiling.co.uk Secondary Contact Mr Dean Bell Telephone: 01642 640799 Email: dean.bell@f1-tiling.co.uk Brief Introduction The primary service offered by F1 Tiling is the fitting of tiles and fascia boards to walls, ceilings and floors. This will be chiefly to residential customers in the first instance but Steve foresees more lucrative B2B (commercial) contracts being sourced by the end of the first year of trading. Secondary services include the sub-contracting of associated trades (i.e plastering and electrical work) due to an already established network of contacts. Another service that may be looked into is the more artistic or designer side of the tiling trade. Similar to the production of mosaics, this skill involves using image manipulation to create feature walls using tiles. This is done through the manipulation and colouring of individual tiles which when put in place generates a completed image - this can be anything from a geometric pattern to a photograph reproduction. Due to the limited availability of such a service it will be a niche market, however as it is a premium service it could become a highly profitable arm of the company. Business Objectives Steve aims to build a successful tiling service through intense networking activities, word-of-mouth and brand-led marketing strategies (such as a professionally design brand identity that can be incorporated onto van signage, work uniforms and future advertising). This will give an impression from the outset of a professional, nationally based organisation and as a result will drive sales and increase awareness. This in turn will help to build up the business either through the employment of tilers or through subcontracting in the form of franchising the 'F1 Tiling' operation.
Formula One Tiling Business Plan - March 2007
Why a Tiling Service? Steve Watson, the proprietor of F1 Tiling is a keen DIYer with many years of experience behind him. One of his key interests is tiling and having carried out such a service for friends and family has chosen to adopt this as his primary trade for the purpose of this business. Due to recent enforced redundancy, this has granted Steve with an ideal opportunity to realise this business and has prompted him into action to achieve his goal. The Market Opportunity The ceramic tile market is estimated to be worth ÂŁ300 million in the UK and has, over recent years demonstrated strong growth. There is also growing consumer interest in a greater product range such as clay, teracotta, cork and stone which are becoming increasingly fashionable. The tile industry is likely to remain popular and strong development in this market supports this assertion. New fashions in the market include photo tile production and growth in 'designer' tiles created by designers such as Charles Allen and Dominic Crinson. With a growing and fashionable market in place there will always be call for professional tile fitters. If Steve can create a recognised brand through self-promotion and subsequently increase awareness of the company then perhaps he can build and create a national tiling service. This will be a welcome change among the glut of one man band style operations that we currently see today. Likely customers will range from domestic sources in the first instance (kitchens and bathrooms for homeowners) through to larger commercial concerns (such as leisure centres, shopping centres, factories and restaurants) which could be the basis for more secure contract based work. Mission Statement To provide a fast, efficient and superior quality tiling service where customer satisfaction is number one priority.
Formula One Tiling Business Plan - March 2007
TABLE OF CONTENTS Executive Summary 2 Table of Contents
4
Business Introduction
5
Business Objectives
6
Products & Services
7
Management & Personnel
8
The Market
9
Competitive Business Strategy
10
Marketing Plan
12
Brand Identity
13
Future Prospects
15
Financial Information
16
Appendices 1. Curriculum Vitaes of Key Personnel
Formula One Tiling Business Plan - March 2007
BUSINESS INTRODUCTION Location F1 Tiling is based at Steve's place of residence in Stockton-on-Tees. To begin with the company will concentrate on providing services within a 30 mile radius (45mins) of Stockton - this will cover areas such as Middlesbrough, Hartlepool, Durham, Darlington, Northallerton and Thirsk. Once established within this area and the company operation is running smoothly and successfully with an experienced group of tilers on board, then Steve may look to franchise the operation further afield with a view to achieving national recognition and awareness. Trading Address: 14 Silton Grove Stockton-on-Tees TS18 5AT Business Proposal The primary service offered by F1 Tiling is the fitting of tiles and fascia boards to walls, ceilings and floors. This will be chiefly to residential customers in the first instance but Steve foresees more lucrative b2b (commercial) contracts being sourced by the end of the first year of trading. Secondary services include the sub-contracting of associated trades (i.e plastering and electrical work) due to an already established network of contacts. Another service that may be looked into is the more artistic or designer side of the tiling trade. Similar to the production of mosaics, this skill involves utilising image manipulation to create feature walls using tiles. This is done through the manipulation and colouring of individual tiles which when put in place generates a completed image - this can be anything from a geometric pattern to a photograph reproduction. Due to the limited availability of such a service it could become a niche market, however as it is a premium service it could become a highly profitable arm of the company. Equipment Steve has spent in the region of ÂŁ1000 so far in purchasing the relevant tiling equipment required for all tiling and fascia board based jobs. He is currently sourcing a van to complete the setup and begin trading. Start date Due to tiling training courses that Steve is currently attending with son-in-law Dean, he has anticipated an April start date for the company to commence trading.
Formula One Tiling Business Plan - March 2007
BUSINESS OBJECTIVES Steve aims to build a successful national tiling operation through: Intense networking activity Word-of-mouth Brand-led marketing strategies How F1 Tiling aims to do this Intense networking activity: Having already built up a valuable network of trade contacts (including plasterers, electricians, builders and plumbers) and family based business contacts to whom he can seek continued advice and guidance Steve is already increasing his windows of opportunity which will stand him in good stead for the future. He can rely on existing trade contacts for referral work and he will also be able to sub-contract work to them. Steve's business mentors have extensive experience in both the business arena in general and the field of advertising, design and marketing so can offer continued support in his quest. Word-of-mouth Having already provided a tiling service to many of his friends and family, they are now able to refer other people to Steve knowing he has set up a company vehicle to offer his services. Indeed there are already two jobs scheduled for April that will be Steve's first tiling jobs. Brand-led marketing strategies By adopting a professionally designed corporate identity and following this through to all internal and external communications (i.e business cards, letterheads, vehicle livery, work uniforms and invoices) a professional image is established and maintained. This will help increase the impression that 'F1 Tiling' is a national company rather than a small regional outfit and will therefore act as the seeds for future growth and expansion.
Formula One Tiling Business Plan - March 2007
PRODUCTS & SERVICES Products: Although primarily a service based business, it is anticipated that future growth of the business will require the incorporation of the retailing of tiles and fascia boards - if only for supply to 'F1 Tiling' franchised operations. With contacts in the field Steve is able to keep abreast of trends and prices in the sector so when the final decision comes to begin the retail arm of the company he is sufficiently informed to enter the market in a strong position. Services: The primary service involves the fitting of tiles and fascia boards. Tilling covers a vast array of designs and materials including ceramic, stone, clay, terracotta and cork - these can be applied to walls, ceilings or floors. Fascia boards are fairly new to the scene but are increasing in popularity due to the variety of styles they are available in - these are similar to laminate flooring but are built to be placed on both walls and ceilings.
Formula One Tiling Business Plan - March 2007
MANAGEMENT & PERSONNEL Sole Proprietor: Mr Steve Watson* Formerly employed by BPI Recycled Products as a Process Operator, recent enforced redundancy has gifted Steve with the opportunity to set up this tiling service company. His personal DIY experience in tiling is a valuable base from which to start. He is undergoing several courses in tiling (through North East Tiling Training) to hone and finish his skills which should help towars gaining accreditation with TTA (The Tile Association - http://www.tiles.org.uk/) Other Key Personnel: Mr Bell* As Mr Watson's son-in-law, Dean has many years experience working alongside Steve in his DIY endeavours. He is also undergoing the same training as Steve through North East Tiling Training. As Dean is currently in full-time employment, he will be acting as a part-time tiler to begin with, assisting Steve in his larger projects. When the workload, bookings and income permits then Dean envisages joining his father-in-law as a full partner in the business. Mrs Yvonne Watson* As wife of Steve, Yvonne currently works as manageress of Factory Fabrics in the Portrack Lane area of Stockton-on-Tees. Her role involves day-to-day running of the outlet which involves ordering, payroll, book-keeping and accounts management. These skills will be utilised in setting up an invoice and accounting system for Formula One Tiling as well as dealing with day-to-day correspondence. *See full CVs in the appendices section
Formula One Tiling Business Plan - March 2007
THE MARKET Residential Market Domestic customers are likely to come from a range of sectors. Examples of consumers who are likely to use the service include: Homeowners decorating their property, most often the kitchen, bathroom and conservatory areas People who have recently purchased a property, or who are in the process of renovating their home Homeowners that are having a jacuzzi or swimming pool fitted Commercial Market Commercial concerns that may require the services include Leisure centres Shopping centres Factories Restaurants Shopping centres Smaller businesses and offices may require shower rooms or kitchens tiled
Formula One Tiling Business Plan - March 2007
COMPETITIVE BUSINESS STRATEGY Analysis of Industry Structure (Porter’s Five Forces) Threat of New Entrants With tiling services currently in demand and due to current attendances at tiling training courses the threat of entry into the sector is immediately apparent. However many of these individuals will end up one man outfits and have little or no desire to expand their service offerings. As Steve intends to grow the business through a franchise operation these individuals (or potential competition) could end up being the basis for F1 Tilings's workforce. So what is first considered a negative connotation could end up being a positive. Threat of Subsitute Products With the company primarily service based, the threat of subsitute products is not applicable. However if Steve decides to enter the retail market at a later stage, given that it is a growing market, he may encounter many possible threats. However this is secondary to the main focus of F1 Tiling. Power of Buyers Although there are many tilers for consumers to approach, the problem is often where to find them. As most will be small operations their sole form of advertising is likely to be Yellow Pages and through wordof-mouth. As a result many consumers face difficulty finding a tried and trusted tiler. Power of Suppliers The power of suppliers (tiling equipment) is weak as there are a large number of suppliers and intense competition between them. Rivalry Amongst Existing Players As stated above, most rivals will be small outfits who rely on word-of-mouth and yellow pages advertising. Although both are strong mediums, by adopting a professional image, van livery and advertising F1 Tiling can fast become the service of choice for local customers and indeed Steve can look to build up a relationship with local competition rather than work against them. That way both parties will benefit in the long-term. SWOT Analysis The internal Strengths & Weaknesses of the company and the External Opportunities & Threats, can be summarised as follows: Strengths Keen and dedicated personnel Good network of trade contacts Close relationship with brand consultant and other business mentors Ability to conduct marketing, design and advertising in-house Weaknesses Start-up venture (no business history or proven record)
Formula One Tiling Business Plan - March 2007
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Opportunities No recognised 'firm' of tilers or tiling franchises in the region To capitalise on a growing market and trends in tiling Threats New entrants into the market (although these could form the basis for future employees). F1 Tiling's strengths will allow them to exploit opportunities in the market: Their dedicated personnel and commitment to providing a quality service will build a loyal customer base and increase prospects of referral work through word-of-mouth. Their network of trade contacts and business mentors will aid the future growth of the company and their ability to provide marketing, advertising and design in-house will allow them to promote awareness and recognition of 'F1 Tiling' as a professional outfit of choice. They are mitigating against weaknesses and threats: Although the threat of new entrants to the market will always exist, Steve feels that these will ultimately form the basis of a long-term harmonious working relationship - be it through referral work, employment of said individuals or by introoducing them to a franchise operation under the 'Formula One' banner. Steve feels that his commitment to providing a fast and supreme quality service combined with a professional image to enhance the service will help build a company that becomes a recognisable business entity in the local community and eventually in the UK as a whole.
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MARKETING PLAN Brand identity The brand identity for F1 Tiling has been designed by Daniel Pinkney. As former Creative Director of Ellahi & Pinkney Ltd, he has over 10 years experience producing creative work for NTL, Business Link (Jonathan Lamb & Debbie Lee), Electrolux Outdoor Products, Northumbrian Water, Middlesbrough FC, UNIS4NE (Universities for the North East), Middlesbrough College and CCAD (Cleveland College of Art & Design) with his company turning over ÂŁ8.2million in 2004. As a family friend, Daniel will be acting as Brand Consultant and advisor to F1 Tiling. The new image and brand presence will be carried through to a variety of mediums including: All stationery (ie letterheads, business cards, invoices etc) Van livery and signage Work uniforms *See Pages 13-14 for and in depth look at Brand Identity proposals
Promotional Strategy The new van signage, and business cards will help enhance word-of-mouth advertising. These will also incorporate the company's newly acquired website domain name (www.f1-tiling.co.uk) and individual email contact details. Having a dedicated domain name helps to enhance the image of the company in contrast to adopting third-party domains such as f1-tiling@hotmail.com which can sometimes appear amateurish. Yellow pages advertising will be utilised and will be designed to comply with the established brand identity. Steve also has several contacts who have convenience stores and newsagents, which can help provide free advertising and promotion. As business picks up Steve will be looking to spend additional capital on various forms of advertising such as the 'Homes' supplement in the Evening Gazette and direct mail / leaflet drops to local housing estates. This will drive demand further and enable Steve to recruit additional tilers and branded vans to build the company into an established and profitable going concern. Public Relations Once established and the company begins to do well Steve will look to compile a press release for inclusion in the local business magazines and supplements, which will help increase awareness of F1 Tiling.
Formula One Tiling Business Plan - March 2007
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BRAND IDENTITY Why 'Formula One' Tiling Formula One conjures up images of speed, sophistication, precision, accuracy, high performance and dedication. These qualities and Steve's 'drive' to be number one in the tiling service sector are the key reasonings behind the 'Formula One' name. In creating an identity for the name the designer has come up with a number one symbol which contains a red and black chequerboard pattern. The number one is self explanatory (Formula One and the ambition to be no.1). The chequerboard pattern represents both the chequered flag and grid seen in Formula One racing as well as a proposed tiling pattern - the concise and uniform appearance reflects the need for precision and accuracy. The red has been chosen as it is the colour most associated with Formula One, perhaps as it relates to the veteran and stablemate of F1- the Ferrari.
Primary Logotype: Typeface used: Bonn Bold Caps / Bonn Reg Caps Red: c15 m100 y100 k0 or Pantone Red CV Black: c0 m0 y0 k100 or Pantone Black
FORMULA ONE TILING
Secondary Logotypes: For use in mono colour applications or on solid dark background colours.
FORMULA ONE TILING
Formula One Tiling Business Plan - March 2007
FORMULA ONE TILING
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Preliminary Design Visuals
Proposed Business Cards (Front and Back)
FORMULA ONE TILING Proprietor Steve Watson -on-Tees TS18 5AT 14 Silton Grove, Stockton 07896 796052 01642 651590 | Mobile: Fax: | 590 651 42 016 Tel: 1-tiling.co.uk n@f atso e.w stev il: | Ema Web: www.f1-tiling.co.uk
FORMULA ONE TILING Dean Bell
FOR CONSERVATORIES
, BATHROOMS & KITCH
ENS
14 Silton Grove, Stockton-on-Tees TS18 5AT Tel: 01642 651590 | Fax: 01642 65159 0 | Mobile: 07920 836808 Web: www.f1-tiling.co.uk | Email : dean.bell@f1-tiling.co.uk
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FUTURE PROSPECTS Short-Term (1 year) Year one will be spent consolidating the business by: Increasing contacts and spreading the word though networking Ensuring branding is applied sympathetically to all communications and promotions - in particular to the the van which will play a key role in raising awareness and generating sales leads. Self promotion - Yellow Pages and taking advantage of 'free' advertising from business contacts Dean Bell becoming a full partner in the business Medium Term (2-3 years) Year two will be looking to build upon the first year's work by: Looking to employ further - additional tilers and vans to cater for increased trade Stepping up local advertising and promotion - this could include press, bus adshels and direct mail campaigns Establishing a retail outlet (may be internet based only) for supply of tiles and fascia boards Explore the viability of securing a freephone number to drive business growth and maintain impressions of a 'national' company. Long-Term (3 years +) After year three Steve and Dean hope to have a fleet of several vans that can comfortably cater for the local (30 mile radius) of Stockton-on-Tees. Steve aims to have an established operation in place that will form the basis for developing franchise opportunities further afield and a retail outlet that is able to supply tiles and associated products to the franchisees.
Formula One Tiling Business Plan - March 2007
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FINANCIAL INFORMATION TBA
Formula One Tiling Business Plan - March 2007
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APPENDICES 1. Curriculum Vitaes of Key Personnel
Formula One Tiling Business Plan - March 2007
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Sole Trader Mr Stephen Watson Formula One Tiling 14 Silton Grove Stockton-on-Tees TS18 5AT