Handy Hose Services, Inc. | Application Preview
Handy Hose Services, Inc. is applying for government grants to support their expansion in northern California, specifically in Chico, where they see an opportunity due to the lack of efficient mobile hose services. The funding will be allocated as follows: $40,000 for a new van, $16,000 for equipment including a crimper and saw, $7,000 for inventory, and $5,000 for marketing.
The business plan forecasts Year 1 sales at $110,000, with an expected annual increase of $20,000. With plans to add a van each year, they project reaching approximately $750,000 in annual sales within five years.
Handy Hose Services highlights their past success as a Pirtek franchisee, where they achieved $750,000 in annual revenue within three years. They believe that their experience and established business model will facilitate similar success as an independent company.
In terms of competition, they note that Pirtek is a significant player in Los Angeles and Orange County, but in Chico and nearby areas, they stand alone in the mobile hose service sector. This presents a compelling opportunity to meet local demand.
Their competitive edge rests on five main factors: efficiency, pricing, quality, and service, positioning them well for success in the market.
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General Information
Business Registration Number: Handy Hose Services, Inc.
Location: Mission Viejo, CA, United States
Length of Operation: 6-10
Number of Employees: 1-10 Employees
Annual Gross Income: $250k to $500k
Annual Gross Expense: $100k to $250k
Open to Loans: NO
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Funding Usage
Purchase of van $40K Crimper, saw, build out $16K Inventory $7K Marketing $5K
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Business Plan
We regard the northern California in Chico as virgin territory because there is no efficient mobile hose service in the area. Year 1 based on previous experience, sales should be around $110 and should increase by $20K per year. We add a van every year. Using the model above, after 5 years, annual sales should be around $750K. As a Pirtek franchisee, I was able to produce $750K in annual revenues after just 3 years. The 2008 recession and poor franchise management led me to re-start my business as an independent company and never looked back. $750K annual sales is a very realistic target and a proven business model.
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Self Identified Competition
In LA and Orange County Pirtek is the largest competitor. I am the only former franchisee in the mobile hose business that survived from going independent in the U.S. In Chico and surrounding areas, there is no efficient mobile hose service. This is a terrific opportunity to help everyone in the area be more efficient. 5 Reasons: Efficiency, price, quality and service!
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Contact Applicant
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