CF Services LTD Co DBA EasTek | Application Preview
CF Services LTD Co, doing business as EasTek, is seeking government grants to facilitate rapid expansion of its HVAC services. The funding will be used to hire 2-4 new employees with a goal of reaching 10-20 employees, lease office space with a small receiving area for equipment, and acquire a new service truck with necessary tools.
The cost breakdown includes $80,000 for the service truck and tools, an estimated $3,000-$4,000 per month for office lease, and wages of $50 per hour for experienced service technicians and $30 per hour for an office manager. The owner faces cash flow challenges, needing funds primarily as a line of credit, despite high profit margins on services. Currently, the owner is unable to take on additional work due to insufficient capital, resulting in lost revenue opportunities.
EasTek aims to address the shortage of HVAC service personnel in the Northeast by hiring experienced staff, as demand for services is rising with the influx of heat pumps requiring maintenance. The owner has extensive experience in the industry, having worked as an HVAC technician for 15 years and previously as a marine system engineer. The company was founded in 2019 and has supported the owner's family of eight on a single income, but cash flow limitations are hindering growth.
EasTek's competitive advantages include the potential for significant revenue growth with the requested funding and the ability to capitalize on current market demands. The owner believes that with a $500,000 cash influx, the company can rapidly progress to seven-figure revenues and achieve eight-figure revenues within 5-10 years.
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General Information
Business Registration Number: NAICS 23220
Location: Johnson, VT, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: $100k to $250k
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
Rapid expansion, adding 2-4 employees (goal of 10-20 employees in time) leasing office space with small recieving area for equipment orders, new service truck and tools for new employees, Service Truck With tools $80K Office lease estimate $3-$4K month Wages per experienced service technician $50/hour Wages for 1 office manager $30/hr Cash flow is currently my biggest issue, an investment in my company will produce almost immediate returns, the addition of one experienced service technician and one office manager will produce $300-$400K additional revenue Very little of the funds are even necessary for capital expenses, mostly it is required as more of a line of credit, I have to spend thousands dollars a day sometimes, all which comes back with 46%-50% margin but doesnt come back for 30-60-90 days sometimes, equipment suppliers still need to be paid, lease payments still have to be made and employees still need to be paid. I have had to send work away or give up the mark up on equipment because I didnt have the capital to complete the job, or purchase the equipment.
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Business Plan
The addition of experienced staff is the fastest way to grow HVAC business, their is extreme shortage of HVAC service personnel in the northeast, National accounts vendors are unable to employee any contractors in the area to service there clients, the market is being flooded with heatpumps, and no one will service them, they only install, I turn away service request daily. I consistently leave money on the table from clients due to lack of staffing to keep up with demand, at this very moment, writing these grants requests i am costing myself $165 hour that i could be billing a client, they all have more work than I can keep up with alone. I have been an HVAC service technician for 15 years prior to that i was a Marine system engineer servicing yachts on the coast of Maine, I am driven successfull and my services are in high demand, I am the call when no one else can figure it out, my own competition has to utilize my services, I specialize in large scale complex automated industrial commercial equipment, for HVAC industry, I started my company in 2019 after leaving my position as a senior technician with Trane. I have successfully supported my family of 8 on a single income for the past 6 years, I am up against a wall with expansion right now due to cash flow, I have a vision to bring this company to the top in the northeast I want people to say "ya he owns EasTek", or "Thats the founder of EasTek" this industry can easily accommodate a $20 million year business. I dont even want to manage the money I just need access to it to grow the business.
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Self Identified Competition
Alliance Mechanical Group, 15 million revenue, 50 employees founded 2010 (Reputation for poor services, but has expanded into building automation services, is gaining good reputation with that) VHV (Vermont Heating Ventilation) 45 Million revenue, 120 employees (Overall good reputation difficulty with staffing and managing $45 million business, many employees working 7 days a week.) New England Air System 27 million revenue, 100 employees (Long running service company overall good reputation employees seem mostly satisfied there) With My Company you would be getting in on the ground floor, this company is still at early stages of expansion, a $500K cash flow will jump start EasTek into 7 figure revenues almost immediately and 8 figure revenues within 5-10 years
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