Knappandsonsgeneralcontractors,LLC | Application Preview
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General Information
Business Registration Number: 8332811992
Location: lutz, FL, United States
Length of Operation: 3
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
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Funding Usage
This modest request will be used to start up capital on actual contracted jobs. no payroll costs until the Company is properly funded at a 10% cash position of revenue. so the target for the year 2021 would be 500,000. So at a conservative Profit of 25 % 2021 will net 125,000 plus the original $50,000 for a working capital of $175,000 Dollars. These funds will remain in the Company for working capital making the revenue goal of $1,750,000 dollars in year 2022 and have a net margin of $437,500.Giving us a cash position of $ 612,500. so in year 2022 we would take our first distribution of $ 50,000 dollars each leaving the Company with 412,500. The Company has no debt service and is to ran from the office at the address listed. All the numbers illustrated are extremely conservative as the Commercial General Contractors in the State of Florida are currently netting over 35%. The State of Florida has 4000 people moving into our States everyday. The time to strike is now. There are no obstacles to slow this growth and it will continue for at least 10 years. Currently for every Commercial job put to bid they are receiving letters back that they are booked solid. Florida has at least 40% more commercial work than it has General Contractors to perform this work. I have been waiting for this for 6 years now and now is the time to strike. I have several Commercial Building Owners calling me weekly to look at their work. I was not ready because my Son and a close friend were just not ready yet. They are now. I have been in this business for over 35 years. getting the work will not be the problem. The issue will be to have the discipline to say no to jobs when you are over booked. Also, I do not confuse cash flow with profit. Fifty percent of the failures in construction come from lack of knowledge in General Accounting Principles. I am perfectly aware that your "Jobs in progress" reporting line is crucial and has to be completely accurate. This Company will hit 7.5 million in revenue by 2024 and that will be our cap of work that we will take on to allow for about 2 years of some growing pains to settle in to be accurate.
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Business Plan
I covered this question in the financial request I apologize I was unaware this question would be hear. However, My family has been in this business since 1961 right here in Tampa. I already have a costumer base that I have not approached because our growth would move to quickly that would lower our returns on capital and also create poor performance. In Commercial Construction you have to make your dates or you have already failed. You will see I have laid out an extremely conservative growth plan that also incorporates a cap in the 5 year to absorb all possible growing pains that are inevitable. I am asking for a very small amount that has next to zero risk as we have no expenses for the first 3 years and the business will be ran from my home office. Our margins will be staggering and far surpass my conservative projections, It is more likely that investors will want to inject more cash to receive the higher margins of return. Simple math.
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Self Identified Competition
That is an impossible question as the answer is a negative 30% of available work for the foreseeable future in Florida. Four Thousand new residents ever day is very difficult to keep up with. In Florida Commercial Contractors are actually receiving incentive bonuses to take on the real work that has drop dead completion dates. Once again I have been in this game now for 35 years and my family has been here in this game since 1961. To be point blank I am just that better than our competitors when working on the size jobs I have planned and projected. We will be targeting $150,000 to $1,000,000 dollar jobs where your risk is low and your return is high. I have contacts very close to me from Pizza Hut, Raymond James Bank and several personal friends who are in the Real-estate business that are privately owned and they never sell anything. Work will not be our issue as I said before having the discipline to say no when you should is much more difficult but essential for a strong financial Construction Company as I mentioned before I am not comfortable having more revenue than I have 10% of cash in the bank.
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