Table of Content

    Do you want to start Painting Contractors business?

    Painting is a great business for anyone who is creative, can find worthy partners and can fill happiness and peace in other’s life by selecting suitable paint combinations.

    Starting a painting business doesn’t only mean that you have to pick up a brush or a bottle of paint to start your work, surprisingly it can be as wide as you may like. You can hire employees if you have a big budget and extend your business to the commercial level, or even you can manufacture your own paint for if you want to have perfection and sole independence.

    In each case, you can take help from the painting business plans  available on the web, like the one we are providing here for paint manufacturing and painting company ‘Giana Paints’.

    Executive Summary

    2.1 The Business

    Giana Paints will be a licensed and registered painting company based on providing top-quality exterior and interior painting services in Seattle. The business will be owned by Giana Pratt. Giana is a graduate in Chemical & Manufacturing Engineering from the University of California.

    Considering the time and money she can invest in her business, she has decided to open a company that can manufacture paint as well as provides its customers the facility of painting by highly efficient and professional painters.

    2.2 Management

    Before taking the initiative, you might be thinking that how to run a successful painting company, but if you are following a stepwise approach you don’t need to bother about it. Firstly, make a thorough painting business plan envisaging all the important details of your business.

    In case of Giana, as she was a graduate in pure engineering subject so she had decided to seek the services of professional house painting business plan writers to write a paint business plan for her.

    Owing to the large number of equipment and manpower required in this business, she has decided to hire a General Manager even before the actual launch of the business to help her in managing several tasks.

    2.3 Customers

    Painting business has its customers in residential communities, commercial areas as well as in industries. Usually, the residents having a small apartment find it easy and enjoyable to paint by their own hands, so we will mainly focus on commercial level projects.

    Moreover, we expect that most of the residents in such a big city would like this work to be done by someone expert and skilled. So, they are still in the category of our customers.

    2.4 Target of the Company

    The company aims at providing the highest quality services to its customers, taking care of the employees at the same time. We believe in making and maintaining long term relationships with our clients. Our target is to extend our business and include a broad range of related services so that our clients don’t need to contact several companies for the maintenance of their property.

    The financial targets of the company are given here:

    • To balance the startup cost by earned profits by the end of the first year
    • To achieve a net profit margin of $100k per month by the end of the first year and to achieve the profit margin of $150k by the end of the second year.

    3 Years Profit Forecast - Painting Contractors Business Plan Sample

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    Company Summary

    3.1 Company Owner

    Giana Paints will be owned by Giana Pratt, a graduate in Chemical and Manufacturing Engineering from the University of California. Giana has a seven-year experience of working in Nippon Painters Company. She is a really ambitious and hardworking woman.

    3.2 Why the Business is being started

    After serving as a chemical engineer in Nippon Paints company, Giana has gained a valuable experience which she wants to flourish by opening her own business. After getting her shares she had everything required to open up a new business.

    3.3 How the Business will be started

    The first step will be to make a business plan for painting company, after which Giana will hire a manager to help her through the process of registration and insurance, buying equipment and employing people. A building will be taken on rent and modified to satisfy the requirements of the reception area, storage area for inventory and sitting lounge for employees.

    The company has forecasted the following costs for the start-up:

    Startup Cost - Painting Contractors Business Plan Sample

    The detailed information about the start-up is given below:

    Start-up Expenses  
    Legal $55,300
    Consultants $0
    Insurance $32,750
    Rent $32,500
    Research and Development $32,750
    Expensed Equipment $32,750
    Signs $1,250
    TOTAL START-UP EXPENSES $187,300
    Start-up Assets $0
    Cash Required $332,500
    Start-up Inventory $32,625
    Other Current Assets $232,500
    Long-term Assets $235,000
    TOTAL ASSETS $121,875
    Total Requirements $245,000
    START-UP FUNDING $0
    START-UP FUNDING $273,125
    Start-up Expenses to Fund $11,875
    Start-up Assets to Fund $15,000
    TOTAL FUNDING REQUIRED $0
    Assets $23,125
    Non-cash Assets from Start-up $18,750
    Cash Requirements from Start-up $0
    Additional Cash Raised $18,750
    Cash Balance on Starting Date $21,875
    TOTAL ASSETS $0
    Liabilities and Capital $0
    Liabilities $0
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $0
    Capital $0
    Planned Investment $0
    Investor 1 $332,500
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $695,000
    Loss at Start-up (Start-up Expenses) $313,125
    TOTAL CAPITAL $251,875
    TOTAL CAPITAL AND LIABILITIES $251,875
    Total Funding $255,000

    Any questions? Get in Touch!

    Services for customers

    To fulfill the demands of the public, Giana had included the following services she wants to provide her customers in her painting business description.

    Giana Paints aims at providing painting services to its customers by their own manufactured paint. The company, however, will extend itself and provide all the given services within just the two years of the launch.

    • Residential Painting
    • Commercial Painting
    • Exterior Painting
    • Flooring Services including safety and aisle striping
    • Wall Cleaning
    • Logo Paintings
    • Pipe Coating
    • Rust Encapsulation
    • Bridge Painting

    The price of services will vary depending on the project and deadline.

    Marketing Analysis of Painting Contractors business

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    If you are looking for how to build a successful painting business, you must focus on analyzing your target market and latest trends before finalizing your painting business plan.

    Your paint manufacturing business plan must contain accurate market analysis and the trends that how other people are doing it. Marketing analysis for the Giana Paints according to its location and target market is provided here for your help if you want to study market trends for this business to know how to run a successful painting business.

    5.1 Market Trends

    Due to expansion in real estate, the business of painting mainly for commercial purposes is increasing with a surprising rate. According to IBISWorld, the business has seen an annual growth rate of 4.9 percent over the past five years and has generated total revenue of $40 billion in the year 2018. Despite the fact that more than 306,500 painter’s businesses are running in the United States, there is still place for many.

    Marketing trends of this business are highly satisfactory and depict that you can never be at loss starting this business, provided that you plan it properly.

    5.2 Marketing Segmentation

    Giana Paints has identified the following groups which can serve as its potential customers.

    Painting Contractors Business Plan Sample - Marketing Segmentation

    5.2.1 Industrial Sector: The major group of target customers will come from the industrial sector. We expect to get orders of flooring services, wall cleanings, rust encapsulation, pipe coatings etc. from this target group.

    5.2.2 Commercial Estate Owners: This group includes the owners of the big building and offices who require services of highly professional, fast servicing and insured crew to help them in maintaining their estate. We expect to get long term projects and various orders from this group of our customers.

    5.2.3 Home Owners: This group will comprise of the residents and homeowners who require professional and skilled painters to help them in renovating their houses and to paint inaccessible places. They are expected to use our painting, wall cleaning, and exterior painting services.

    The detailed market analysis of our potential customers is given in the following table:

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Industrial Sector 32% 11,433 13,344 16,553 18,745 20,545 13.43%
    Commercial Estate Owners 48% 22,334 32,344 43,665 52,544 66,432 10.00%
    Home Owners 20% 12,867 14,433 15,999 17,565 19,131 15.32%
    Total 100% 46,634 60,121 76,217 88,854 106,108 9.54%

    5.3 Business Target

    Our main business targets are as follows:

    • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
    • To balance the initial cost of the startup with earned profits by the end of the first year

    5.4 Product Pricing

    To get ourselves introduced to a wide audience we have priced our services and items a little lower than our competitors.

    Strategy

    UK Start-Up Visa Business Plan

    After composing your painting contractor marketing plan the next step is to define the plan by which you will be getting introduced to your target customers. A clear and effective advertising strategy for the painting business plan will help you in gaining the customers, at the very instant you are starting a painting company.

    6.1 Competitive Analysis

    Knowing about the competition, it has to face, Giana Paints have come up with several competitive aspects that most of other in the same business lack. Our staff is highly customer care oriented and they will treat your property like a piece of art. We have skilled workers to paint your facility efficiently, followed by recurrent refinishing.

    Moreover, our experts will be there as soon as possible after your contract and will finish all the work before the deadline. Lastly, we will be applying paint that is highly durable, stain resistant and can resist chemical effects too.

    6.2 Sales Strategy

    • We will advertise ourselves in magazines, newspapers, TV stations, and social media
    • We will make an online website for people to know about us and our services
    • We will offer a 15% discount on our services for the first three months

    6.3 Sales Monthly

    Sales Monthly - Painting Contractors Business Plan Sample

     6.4 Sales Yearly

    Sales Years - Painting Contractors Business Plan Sample

     

    6.5 Sales Forecast

    Our forecasted sales are summarized in the following column charts:

    Unit Sales - Painting Contractors Business Plan Sample

    The detailed information about the sales forecast is given in the following table:

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Residential, Commercial, Exterior Painting 1,887,030 2,680,320 2,588,240
    Flooring & Wall Services 802,370 815,430 823,540
    Logo & Bridge Paintings 539,320 770230 1,002,310
    Pipe Coating & Rust Encapsulation 265,450 322,390 393,320
    TOTAL UNIT SALES 3,494,170 4,588,370 4,807,410
    Unit Prices Year 1 Year 2 Year 3
    Residential, Commercial, Exterior Painting $140.00 $150.00 $160.00
    Flooring & Wall Services $600.00 $800.00 $1,000.00
    Logo & Bridge Paintings $700.00 $800.00 $900.00
    Pipe Coating & Rust Encapsulation $650.00 $750.00 $850.00
    Sales
    Residential, Commercial, Exterior Painting $2,149,800 $2,784,000 $3,383,200
    Flooring & Wall Services $120,050 $194,500 $268,500
    Logo & Bridge Paintings $50,110 $71,600 $93,000
    Pipe Coating & Rust Encapsulation $139,350 $194,600 $249,850
    TOTAL SALES
    Direct Unit Costs Year 1 Year 2 Year 3
    Residential, Commercial, Exterior Painting $0.70 $0.80 $0.90
    Flooring & Wall Services $0.40 $0.45 $0.50
    Logo & Bridge Paintings $0.30 $0.35 $0.40
    Pipe Coating & Rust Encapsulation $3.00 $3.50 $4.00
    Direct Cost of Sales
    Residential, Commercial, Exterior Painting $989,300 $1,839,000 $2,679,700
    Flooring & Wall Services $66,600 $119,900 $173,200
    Logo & Bridge Paintings $17,900 $35,000 $52,100
    Pipe Coating & Rust Encapsulation $19,400 $67,600 $115,800
    Subtotal Direct Cost of Sales $1,294,100 $1,699,400 $2,104,700

    Personnel plan

    Note

    Personnel plan gives you an estimation of the required staff and their salaries over the next few years. It is important to hire your required staff before at least one week of the actual launch of the business so that you will be able to define your painting contractor company profile, alongside training and testing their skills.

    7.1 Company Staff

    Giana will hire a general manager one month before the launch to help her in employing other staff and to manage the process of registrations. The company will initially hire the following people:

    • 2 Administrators/Accountants for maintaining financial records
    • 4 Sales Executives for discovering new ventures
    • 4 Assistants for undertaking various day to day tasks
    • 6 House Painters
    • 1 IT Expert for managing the company’s website
    • 1 Driver for transportation

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Administrators/Accountants $85,000 $95,000 $105,000
    Sales Executives $152,000 $159,000 $166,000
    Assistants $145,000 $152,000 $159,000
    House Painters $210,000 $240,000 $270,000
    IT Expert $50,000 $54,000 $57,000
    Driver $41,000 $50,000 $54,000
    Total Salaries $260,000 $294,000 $327,000

    Financial Plan

    The financial plan is a very essential part of your paint shop business plan. It includes the details about from where you will be collecting the capital to spend on your startup, and how long can you run your business with the present finances if you are failed to gain your target customers.

    Any questions? Get in Touch

    It is advisable to get your financial plan written by an expert, especially if you are starting on a big scale or also if it is Greek to you. As Giana hadn’t much experience in writing a financial plan so she had hired a financial expert to do this task for her. Giana Paints’ financial plan is as follows:

     8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

    8.2 Brake-even Analysis

    Brake-even Analysis - Painting Contractors Business Plan Sample

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    Monthly Revenue Break-even $159,740
    Assumptions:
    Average Per-Unit Revenue $260.87
    Average Per-Unit Variable Cost $0.89
    Estimated Monthly Fixed Cost $196,410

     8.3 Projected Profit and Loss

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $309,069 $385,934 $462,799
    Direct Cost of Sales $15,100 $19,153 $23,206
    Other $0 $0 $0
    TOTAL COST OF SALES $15,100 $19,153 $23,206
    Gross Margin $293,969 $366,781 $439,593
    Gross Margin % 94.98% 94.72% 94.46%
    Expenses
    Payroll $138,036 $162,898 $187,760
    Sales and Marketing and Other Expenses $1,850 $2,000 $2,150
    Depreciation $2,070 $2,070 $2,070
    Leased Equipment $0 $0 $0
    Utilities $4,000 $4,250 $4,500
    Insurance $1,800 $1,800 $1,800
    Rent $6,500 $7,000 $7,500
    Payroll Taxes $34,510 $40,726 $46,942
    Other $0 $0 $0
    Total Operating Expenses $188,766 $220,744 $252,722
    Profit Before Interest and Taxes $105,205 $146,040 $186,875
    EBITDA $107,275 $148,110 $188,945
    Interest Expense $0 $0 $0
    Taxes Incurred $26,838 $37,315 $47,792
    Net Profit $78,367 $108,725 $139,083
    Net Profit/Sales 30.00% 39.32% 48.64%

    8.3.1 Profit Monthly

    Profit Monthly - Painting Contractors Business Plan Sample

    8.3.2 Profit Yearly

    Profit Yearly - Painting Contractors Business Plan Sample

    Any questions? Get in Touch

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Painting Contractors Business Plan Sample

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Painting Contractors Business Plan Sample

    8.4 Projected Cash Flow

    Projected Cash Flow - Painting Contractors Business Plan Sample

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $40,124 $45,046 $50,068
    Cash from Receivables $7,023 $8,610 $9,297
    SUBTOTAL CASH FROM OPERATIONS $47,143 $53,651 $59,359
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $47,143 $53,651 $55,359
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $21,647 $24,204 $26,951
    Bill Payments $13,539 $15,385 $170,631
    SUBTOTAL SPENT ON OPERATIONS $35,296 $39,549 $43,582
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $35,296 $35,489 $43,882
    Net Cash Flow $11,551 $13,167 $15,683
    Cash Balance $21,823 $22,381 $28,239

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $184,666 $218,525 $252,384
    Accounts Receivable $12,613 $14,493 $16,373
    Inventory $2,980 $3,450 $3,920
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $201,259 $237,468 $273,677
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $12,420 $14,490 $16,560
    TOTAL LONG-TERM ASSETS $980 $610 $240
    TOTAL ASSETS $198,839 $232,978 $267,117
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $9,482 $10,792 $12,102
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $9,482 $10,792 $12,102
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $9,482 $10,792 $12,102
    Paid-in Capital $30,000 $30,000 $30,000
    Retained Earnings $48,651 $72,636 $96,621
    Earnings $100,709 $119,555 $138,401
    TOTAL CAPITAL $189,360 $222,190 $255,020
    TOTAL LIABILITIES AND CAPITAL $198,839 $232,978 $267,117
    Net Worth $182,060 $226,240 $270,420

     8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets 4.35% 4.71% 5.80%  9.80%
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $120,943 $140,664 $160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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