Sample Business Plan on Powder Coating Business Plan
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EXECUTIVE SUMMARY
The Business Concept
ABC Powder Coating, LLC (ABC POWDER COATING or the Company) will specialize in custom powder coatings, spray chrome painting and custom machining. The Company will provide customers the most unique and custom finishing options in the area. It will be located in CITY, STATE.
The Company will target the drag racing community. It will perform custom coatings on various dragsters and bikes. ABC POWDER COATING will provide fast turn around and great customer service.
Excellent Market Opportunity
ABC POWDER COATING will take advantage of several factors to drive its growth. Powder coating is becoming the new paint choice because it has no VOC emissions and it is harder and more durable than liquid paint. The spectra chrome spray system is also taking over the market due to EPA regulations that make electro-plating companies close due to the harsh chemicals used in the plating process.
There are many opportunities in the finishing market from custom rides to refinishing antiques. The Company will focus most of its efforts in the custom car and bike scene, but will take on any job that requires custom finishing industrial and individual customers
Profitable Growth
ABC POWDER COATING expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $70,000 in its next twelve months. ABC POWDER COATING will achieve strong growth over the next several years, reaching $120,000 in revenues and more than $15,000 of net income by the fifth year.
The Opportunity
According to a report from The Freedonia Group (market research group out of Cleveland), the US powder coatings market is growing and will reach 445 million pounds in 2013 with a market value of $1.2 billion.1 Powder coatings will continue to achieve gains above the overall paint and coatings market average, taking share from competing products. However, advances in powder coatings market value will continue to be restrained by downward pricing pressure, as overcapacity in the industry persists and the manufacture of durable goods shifts to developing regions, particularly Asia.
The vast majority of the overall powder coatings market is for thermoset powder coatings and they represented 91 percent of demand in 2008. Thermoplastic powder coatings account for the remainder of demand.
Powder coatings are primarily used in durable goods markets such as motor vehicles, appliances and housewares, furniture, industrial machinery, and lawn and garden equipment. Based largely on an expected rebound in motor vehicle output, the motor vehicle market will provide the strongest gains through 2013 following the significant declines of the 2003-2008 period.
The Freedonia Group has also published a new study that forecasts world demand for dyes and organic pigments will increase 3.9 percent per year to $16.2 billion in 2013. Volume demand will grow to 2.3 million metric tons. While the textile industry will remain the largest consumer of dyes and organic pigments, faster growth is expected in other markets such as printing inks, coatings and plastics. Strong gains will occur in developing Asia and, to a lesser extent, other developing areas such as Africa, the Middle East and Eastern Europe. Market maturity will limit advances in developed areas such as North America, Western Europe and Japan.