Executive Summary


This business plan was developed to provide an in-depth view of XYZ Co. to National State Bank and to assist in the implementation of strategic changes to the organization and direction of the company, as set forth in this document.

The Company

XYZ Co. was founded in 1984 as a Michigan partnership with principals, John and Jane Doe owning 100% of the company. In 1997 the company converted to a corporation (Sub-chapter S status), and has continued to operate as such to the present. The stock is still owned 100% by John and Jane Doe.

The company is headquartered in Grand Rapids, MI, and operates as a residential and commercial construction company, and as a real estate developer. The business also provides consulting and on-site supervision for other developers.

The principals believe that the company’s experience in the construction of over one and a half million square feet of structures has helped to develop a project management and business control system equal to those used by some of the largest similar companies in the industry. Our attention to detail and our desire to produce a TOP QUALITY product have been key factors in a high percentage of repeat business.

Concept & Market Niche

Our market share has historically come from the mid-price range new home market, 80% of which has been within a 20-mile radius of our office. Control of the real estate gives the best advantage to compete in the residential construction industry; therefore, a majority of our residential construction activities have been within subdivisions in which we were the exclusive builder.

Our commercial business has been almost exclusively in the Design & Build arena. Seldom have we ventured into the open bid market. We have designed and built up to five facilities for a single customer; we consider this a testament to our commitment to quality and service. Projects include medical facilities, strip-shopping centers, retail showrooms, and multi-family complexes.


Most of our sales come from referrals from local Real Estate Brokers and/or Sales Associates. This accounts for 70% of our current sales, with the remaining 30% coming from direct calls typically generated from signage or referrals from past customers.

XYZ Co. relies heavily on traffic generated through our model homes built within subdivisions where we are the exclusive builder, and manned by either in-house sales personnel or real estate agents via listing contracts.

We will invest time in market research and product development to continually improve our product and follow-up service. Due to the seasonal nature of our industry, we have developed strategies in our marketing plan to minimize excess inventory. We do anticipate the need for short-term debt to carry us through the slack seasons. (see projection graphs below)

The main points of our marketing plan are:
    • Develop existing sales leads
    • Expand Real Estate Broker relationships
    • Increase name recognition in attempt to
       attract more first-time customers
    • Secure land for subdivision development


The principals are dedicated to the implementation and management of the changes herein proposed, and will seek the advice of professionals to assist in management decisions requiring specialized competence. Such advisors include:

1. _____________________                     3. ______________________

2. _____________________                     4. ______________________

The current management team comprises over 93 years of experience in the construction industry.