Industry Overview

Cement bricks manufacturing business is part of the Concrete Pipe and Block industry
and players in this industry primarily manufacture concrete pipes, bricks and blocks.
Concrete pipes include storm sewer pipes, sanitary sewer pipes, reinforced pressure
pipes, pre-stressed cylinder pressure pipes and culvert pipes.
Concrete brick and block production mainly includes structural blocks, decorative blocks
and pavers, bricks and miscellaneous concrete products. Products made by this
industry are heavily used in infrastructure and residential construction.
While concrete blocks are used across board, concrete pipes are especially reliant on
demand from infrastructure markets such as natural gas distribution and sewage
treatment. IBISWorld estimates that the industry’s sustained growth had partially
resulted from these key markets, which have led industry revenue to rise over the five
years to 2017.
Moving forward, construction markets are expected to continue their steady growth. As
a result, IBISWorld expects industry revenue to continue increasing. The Concrete Pipe
and Block manufacturing industry that cement bricks manufacturing business is a part of
is indeed a large industry and pretty much active in most countries of the world.
Statistics have it that in the united states of America alone, there are about 603
registered and licensed concrete pipe and block manufacturing companies scattered all
across the United States responsible for employing about 24,110 people and the
industry rakes in a whooping sum of $7 billion annually.
The industry is projected to enjoy 2.5 percent annual growth within 2012 and 2015. It is
important to state that Cemex SA de CV and CRH PLC are the establishments with the
lion shares of the available market in this industry.
Research carried out by IBISWorld shows that the Concrete Pipe and Block
manufacturing industry has a medium level of market share concentration, with the
three largest players generating an estimated 20.6 percent of industry revenue in 2017.
The remainder of the market is captured by a large number of small and medium-scale
operators that service relatively narrow geographical markets.
However, large-scale players maintain a presence across many regional markets. The
report further stated that over the past five years, ownership concentration within the
industry has increased due to acquisition activity in the US building materials market.
This has typically involved the acquisition of local and regional players by larger
companies seeking to expand their operations, and large foreign owned manufacturing
companies hoping to gain a foothold in the US market.
Over and above, the concrete pipe and block manufacturing industry is a profitable
industry and it is open for any aspiring entrepreneur to come in and establish his or her
business; you can choose to start on a small scale or you can choose to start on a large
scale servicing a wide range of clientele in the United States’ market space.
2. Executive Summary
Four Squares® Cement Bricks, Inc. is a registered cement bricks manufacturing
company that will be located in Raleigh – North Carolina; in an ideal location, highly
suitable for the kind of manufacturing business we want to establish. We have been
able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the
kind of standard cement bricks manufacturing company that we intend launching.
Four Squares® Cement Bricks, Inc. will be involved in manufacturing different sizes and
shapes of concrete blocks, concrete pipes, and concrete bricks. We are set to service a
wide range of clientele in and around Raleigh – North Carolina.
We are aware that there are several large and small cement bricks manufacturing
companies all around the United States of America, which is why we spent time and
resources to conduct a thorough feasibility studies and market survey so as to be well
positioned in the market.
Four Squares® Cement Bricks, Inc. will at all times demonstrate her commitment to
sustainability, both individually and as a firm, by actively participating in our
communities and integrating sustainable business practices wherever possible. We will
ensure that we hold ourselves accountable to the highest standards by meeting our
customers’ needs precisely and completely whenever they patronize our products.
Four Squares® Cement Bricks, Inc. will ensure that all our customers are given first
class treatment whenever they visit our factory. We have a CRM software that will
enable us manage a one on one relationship with our customers no matter how large
they may grow to. We will ensure that we get our customers involved when making
some business decisions that will directly or indirectly affect them.
Four Squares® Cement Bricks, Inc. is a family business that is owned by Fritz
Humphrey and his immediate family members. Fritz Humphrey has a Degree in Civil
Engineering with over 10 years of experience in the construction cum concrete pipe &
block manufacturing industry, working for some of the leading brands in the United
States.
3. Our Products and Services
Four Squares® Cement Bricks, Inc. is in the concrete pipe and block manufacturing
industry to service a wide range of clients and of course to make profits, which is why
we will go all the way to give our clients options. We will do all that is permitted by the
law of the United States to achieve our business goal, aim and ambition of starting the
business.
Our product offerings are listed below;

 Manufacturing concrete blocks

 Manufacturing concrete pipes
 Manufacturing concrete bricks

4. Our Mission and Vision Statement

  Our vision is to become the leading brand in the concrete pipe and block
manufacturing industry in the whole of Raleigh –North Carolina.
 Our mission is to establish a world – class cement bricks manufacturing business
whose products will not only be retailed in the United States of America, but also
be exported to other countries of the world.

Our Business Structure

Four Squares® Cement Bricks, Inc. does not intend to start a cement bricks
manufacturing business like the usual cottage business; our intention of starting a
cement bricks manufacturing company is to build a standard business whose products
will be exported to other countries of the world.
We will ensure that we put the right structure in place that will support the kind of growth
that we have in mind while setting up the business. We will ensure that we hire people
that are qualified, honest, customer centric and are ready to work to help us build a
prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of ten years or
more. In view of that, we have decided to hire qualified and competent hands to occupy
the following positions;

 Chief Executive Officer (Owner)

 Factory Manager
 Human Resources and Admin Manager
 Sales and Marketing Manager
 Cement Bricks Machine Operator
 Accountants / Cashiers
 Customer Services Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

 Increases management’s effectiveness by recruiting, selecting, orienting,

training, coaching, counseling, and disciplining managers; communicating
values, strategies, and objectives; assigning accountabilities; planning,
monitoring, and appraising job results; developing incentives; developing a
climate for offering information and opinions.
 Creates, communicates, and implements the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
 Responsible for fixing prices and signing business deals
 In authority of providing direction for the business
 Responsible for signing checks and documents on behalf of the company
Admin and HR Manager

 Responsible for overseeing the smooth running of HR and administrative tasks

for the organization
 Maintains office supplies by checking stocks; placing and expediting orders;
evaluating new products.
 Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
 Defines job positions for recruitment and managing interviewing process
 Carries out induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversees the smooth running of the daily office activities.

Factory Manager:

 Responsible for overseeing the smooth running of the factory

 Part of the team that determines the quantity of cement bricks and other products
that are to be produced
 Maps out strategy that will lead to efficiency amongst workers in the factory
 Responsible for training, evaluation and assessment of factory workers
 Ensures that the steady flow of both raw materials to the factory and easy flow of
finished products to the market
 Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
 Ensures that the factory meets the expected safety and health standard at all
times.
 Interfaces with third – party suppliers (vendors) of raw materials
 Controls cement bricks distribution and supply inventory
 Supervises the workforce in the factory.

Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of information
to retain the organizations’ best customers and attract new ones
 Models demographic information and analyze the volumes of transactional data
generated by customer purchases
 Identifies, prioritizes, and reaches out to new partners, and business
opportunities et al
 Identifies development opportunities; follows up on development leads and
contacts; participates in the structuring and financing of projects; assures the
completion of development projects.
 Responsible for supervising implementation, advocate for the customer’s needs,
and communicate with clients
 Develops, executes and evaluates new plans for expanding sales
  Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Cement Bricks Machine Operators

 Responsible for operating machines used in the manufacturing concrete blocks,

concrete pipes and concrete bricks
 Assists in loading and unloading of concrete blocks, concrete pipes and concrete
bricks into trucks meant for delivery.

Accountant/Cashier:

 Responsible for preparing financial reports, budgets, and financial statements for
the organization
 Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex proposed
projects; conducts market research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Client Service Executive/Front Desk Officer

 Welcomes guests and clients by greeting them in person or on the telephone;

answering or directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone)
provides the client with a personalized customer service experience of the
highest level
 Through interaction with clients on the phone, uses every opportunity to build
client’s interest in the company’s products and services
 Manages administrative duties assigned by the manager in an effective and
timely manner
 Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc. to ensure accurate and helpful information is
supplied to clients
 Receives parcels/documents for the company
 Distribute mails in the organization
6. SWOT Analysis
Four Squares® Cement Bricks, Inc. is in business to become one of the leading cement
bricks manufacturing companies in the whole of Raleigh – South Carolina and we are
aware that it will take the right business concept, management and organizational
structure to achieve our goal.
We are quite aware that there are several cement bricks manufacturing companies all
over the United States of America and even in the same location where we intend
locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able
to position our business to maximize our strength, leverage on the opportunities that will
be available to us, mitigate our risks and be equipped to confront our threats.
Four Squares® Cement Bricks, Inc. employed the services of an expert HR and
Business Analyst with bias in manufacturing to help us conduct a thorough SWOT
analysis and to help us create a Business model that will help us achieve our business
goals and objectives.
This is the summary of the SWOT analysis that was conducted for Four Squares®
Cement Bricks, Inc.;

 Strength:

Our core strength lies in the high quality of our concrete bricks, pipes and blocks, the
power of our team and the state of the art cement bricks manufacturing factory that we
own. We have a team of highly trained and experienced staff members that can go all
the way to produce durable concrete bricks, pipes and blocks.
We are well positioned in the heart of Raleigh – South Carolina and we know we will
attract loads of clients from the first day we open our cement bricks manufacturing
company for business.

 Weakness:

A major weakness that may count against us is the fact that we are a new cement
bricks manufacturing company and we don’t have the financial capacity to compete with
multi – million dollars’ cement bricks manufacturing companies in the United States. So
also, we may not have enough cash reserve to promote our cement bricks
manufacturing company the way we would want to do.

 Opportunities:

The fact that we are going to be operating our cement bricks manufacturing company in
one of Raleigh – South Carolina provides us with unlimited opportunities to sell our
products to a large number of clients. We have been able to conduct thorough feasibility
studies and market survey and we know what our potential clients will be looking for
when they visit our factory; we are well positioned to take on the opportunities that will
come our way.

 Threat:

One of the major threats that we are likely going to face is economic downturn. It is a
fact that economic downturn affects purchasing/spending power. Another threat that
may likely confront us is the arrival of a new cement bricks manufacturing company in
same location where ours is located. So also, unfavorable government policies may
also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

 Market Trends

If you are conversant with trends in the Concrete Pipe and Block Manufacturing
industry, you will agree that the industry has benefited from improved industrial
production and construction activity over the last half a decade. A close watch on
industry activities reveals that the concrete pipe and block manufacturing industry was
hit hard by the recent economic downturn and experienced a decline in revenue in
recent time.
The concrete pipe and block manufacturing landscape has seen tremendous changes
in the last 20 years; it has grown from the smaller enterprise to a more organized and
far reaching factory. This trend has benefited them in such a way that they can
comfortably sell their cement bricks, pipes and blocks nationally and also export them to
other countries of the world.
8. Our Target Market
Our target market is well defined and in view of that, we have positioned our cement
bricks manufacturing company to service construction companies all around Raleigh –
South Carolina and every other location where we intend distributing our products. We
have conducted our market research and feasibility studies and we have ideas of what
our target market would be expecting from us.
Our competitive advantage
A close study of the concrete pipe and block manufacturing industry reveals that the
market has become much more intensely competitive over the last decade. As a matter
of fact, you have to be highly creative, customer centric and proactive if you must
survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably
with other leading concrete pipe and block manufacturing companies in Raleigh –
South Carolina and throughout the United States and Canada. Four Squares® Cement
Bricks, Inc. is launching a standard cement bricks manufacturing company that will
indeed become the preferred choice of residents of Raleigh – South Carolina.
Having a good technical knowledge of the product, ability to control total supply on
market and upstream vertical integration (ownership links) are part of our competitive
advantage. Our cement bricks manufacturing company is located in an ideal property
highly suitable for the kind of manufacturing company that we want to run.
One thing is certain, we will ensure that we manufacture different sizes and shapes of
concrete bricks, pipes and blocks to meet international standards. One of our business
goals is to make Four Squares® Cement Bricks, Inc. a one stop cement bricks
manufacturing company for construction cum civil engineering companies.
Our excellent customer service culture, online store, various payment options and highly
secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category in the industry meaning that they will be more than
willing to build the business with us and help deliver our set goals and achieve all our
aims and objectives. We will also give good working conditions and commissions to
freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY

 Sources of Income

Four Squares® Cement Bricks, Inc. is in business to manufacture and retail different
sizes and shapes of cement bricks, pipes and blocks to clients in the United States of
America and other countries of the world. We are in the concrete pipe and block
manufacturing industry to maximize profits and we are going to go all the way out to
ensure that we achieve or business goals and objectives.
In essence, our source of income will be the manufacturing and retailing of different
sizes and shapes of cement bricks, concrete pipes and concrete blocks at affordable
prices.
10. Sales Forecast
One thing is certain when it comes to the cement bricks manufacturing business, if your
factory is well located and you have good business network, you will always attract
customers cum sales and that will sure translate to increase in revenue generation for
the business.
We are well positioned to take on the available market in Raleigh – South Carolina and
we are quite optimistic that we will meet our set target of generating enough profits from
our first six months of operation and grow the business and our clientele base beyond
Raleigh – South Carolina to other states in the United States of America and other
countries of the world.
We have been able to critically examine the concrete pipe and block manufacturing
industry, we have analyzed our chances in the industry and we have been able to come
up with the following sales forecast. The sales projections are based on information
gathered on the field and some assumptions that are peculiar to startups in the United
States of America.
Below are the sales projection for Four Squares® Cement Bricks, Inc., it is based on the
location of our business and other factors as it relates to cement bricks manufacturing
startups in the United States;

 First Fiscal Year: $250,000

 Second Fiscal Year: $550,000
 Third Fiscal Year: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown or any major competitor
manufacturing or retailing same products as we do within same location. Please note
that the above projection might be lower and at the same time it might be higher.

 Marketing Strategy and Sales Strategy

Before choosing a location for Four Squares® Cement Bricks, Inc., we conducted a
thorough market survey and feasibility studies in order for us to penetrate the available
market in and around Raleigh – South Carolina. We have detailed information and data
that we were able to utilize to structure our business to attract the number of customers
we want to attract per time.
We hired experts who have good understanding of the concrete pipe and block
manufacturing industry to help us develop marketing strategies that will help us achieve
our business goal of winning a larger percentage of the available market in Raleigh –
South Carolina and throughout the United States of America.
In summary, Four Squares® Cement Bricks, Inc. will adopt the following sales and
marketing approach to win customers over;

 Introduce our cement bricks manufacturing company by sending introductory

letters alongside our brochure to construction companies, and key stake holders
in and around Raleigh – South Carolina
 Ensure that we manufacture different sizes of cement bricks, pipes and blocks
 Make use of attractive hand bills to create awareness and also to give direction
to our factory
 Position our signage / flexi banners in strategic places around Raleigh – South
Carolina
 Create a loyalty plan that will enable us reward our regular customers
 List our business and products on yellow pages’ ads (local directories)
 Leverage on the internet to promote our business
 Engage in direct marketing and sales
 Encourage the use of Word of mouth marketing (referrals)
 Join local chambers of commerce and industries with the aim of networking and
marketing our products.
11. Publicity and Advertising Strategy
Despite the fact that our cement bricks manufacturing company is well located, we will
still go ahead to intensify publicity for the business. We are going to explore all available
means to promote our cement bricks manufacturing company.
Four Squares® Cement Bricks, Inc. has a long – term plan of opening our distribution
channel in various locations all around key cities in the United States which is why we
will deliberately build our brand to be well accepted in Raleigh – South Carolina before
venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning
customers over but to effectively communicate our brand. Here are the platforms we
intend leveraging on to promote and advertise Four Squares® Cement Bricks, Inc.;

 Place adverts on community based newspapers, radio and TV stations

 Encourage the use of word of mouth publicity from our loyal customers
 Leverage on the internet and social media platforms like YouTube, Instagram,
Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our
business.
 Ensure that our we position our banners and billboards in strategic positions all
around Raleigh – South Carolina
 Distribute our fliers and handbills in target areas in and around our neighborhood
 Advertise our cement bricks manufacturing company in our official website and
employ strategies that will help us pull traffic to the site
 Brand all our official cars and trucks and ensure that all our staff members and
management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to a cement
bricks manufacturing company, it is normal for clients to go to places where they can
get cement bricks, pipes and blocks at cheaper prices which is why big players in the
industry will always attract loads of clients.
We know we don’t have the capacity to compete with leading cement bricks
manufacturing companies in the United States, but we will ensure that the prices and
quality of all the products that we manufacture are competitive with what is obtainable
amongst cement bricks manufacturing companies within our level.
We are aware that there are one – off cement bricks, pipes and blocks supply contracts
from government works department and construction giants. We will ensure that we
abide by the bidding price template for such contract.

 Payment Options

The payment policy adopted by Four Squares® Cement Bricks, Inc. is all inclusive
because we are quite aware that different customers prefer different payment options as
it suits them but at the same time, we will ensure that we abide by the financial rules
and regulation of the United States of America.
Here are the payment options that Four Squares® Cement Bricks, Inc. will make
available to her clients;

 Payment via bank transfer

 Payment with cash
 Payment via credit cards / Point of Sale Machines (POS Machines)
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer
 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make
payment for the purchase of our cement bricks, pipes and blocks without any stress on
their part. Our bank account numbers will be made available on our website and
promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale
you want to undertake. If you intend to go big by renting / leasing a big facility, then you
would need a good amount of capital as you would need to ensure that your employees
are well taken care of, and that your facility is conducive enough for workers to be
creative and productive.
This means that the start-up can either be low or high depending on your goals, vision
and aspirations for your business. The tools and equipment that will be used are nearly
the same cost everywhere, and any difference in prices would be minimal and can be
overlooked.
These are the key areas where we will spend our startup capital on;

 The Total Fee for Registering the Business in the United States of America
– $750.
 Legal expenses for obtaining licenses and permits as well as the accounting
services (software, P.O.S machines and other software) – $3,300.
 Marketing promotion expenses for the grand opening of Four Squares® Cement
Bricks, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at
$0.04 per copy) for the total amount of $3,580.
 The total cost for hiring Business Consultant – $2,500.
 The total cost for payment of insurance policy covers (general liability, workers’
compensation and property casualty) coverage at a total premium – $9,400.
 The total cost for long – term leasing of a standard warehouse and showroom
– $250,000
 The total cost for remodeling the warehouse – $20,000.
  Other start-up expenses including stationery ($500) and phone and utility
deposits – ($2,500).
 Operational cost for the first 3 months (salaries of employees, payments of bills
et al) – $60,000
 The total cost for cement bricks, concrete pipes and concrete block making
machines and start-up inventory – $250,000
 The total cost for counter area equipment – $9,500
 The total cost for store equipment (cash register, security, ventilation, signage)
– $13,750
 The total cost for the purchase and installation of CCTVs: $10,000
 The cost for the purchase of office furniture and gadgets (Computers, Printers,
Telephone, TVs, Sound System, tables and chairs et al): $4,000.
 The total cost of launching a website: $600
 The total cost for our opening party: $7,000
 Miscellaneous: $10,000

We would need an estimate of five hundred and fifty thousand dollars ($550,000) to
successfully set up our cement bricks manufacturing company in Raleigh – South
Carolina.
Generating Startup Capital for Four Squares® Cement Bricks, Inc.
Four Squares® Cement Bricks, Inc. is a family business that is owned and financed by
Mr. Fritz Humphrey and his immediate family members. They do not intend to welcome
any external business partner which is why he has decided to restrict the sourcing of the
startup capital to 3 major sources.
These are the areas we intend generating our startup capital;

 Generate part of the startup capital from personal savings and sell of stocks
 Source for soft loans from family members and friends
 Apply for loan from the bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and

soft loan from family members $50,000) and we are at the final stages of obtaining a
loan facility of $350,000 from our bank. All the papers and documents have been signed
and submitted, the loan has been approved and any moment from now our account will
be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the
capacity and competence of the employees, their investment strategy and the business
structure. If all of these factors are missing from a business, then it won’t be too long
before the business close shop.
One of our major goals of Four Squares® Cement Bricks, Inc. is to build a business that
will survive off its own cash flow without the need for injecting finance from external
sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to
manufacture and retail durable cement bricks, pipes and blocks a little bit cheaper than
what is obtainable in the market and we are well prepared to survive on lower profit
margin for a while.
Four Squares® Cement Bricks, Inc. will make sure that the right foundation, structures
and processes are put in place to ensure that our staff welfare are well taken of. Our
company’s corporate culture is designed to drive our business to greater heights and
training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the
best hands we can get in the industry; they will be more committed to help us build the
business of our dreams.
Check List/Milestone

 Business Name Availability Check: Completed

 Business Registration: Completed
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: Completed
 Opening Mobile Money Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: Completed
 Purchase of Insurance for the Business: Completed
 Leasing of facility and remodeling the facility (warehouse and factory): In
Progress
 Conducting Feasibility Studies: Completed
 Generating capital from family members: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In
Progress
 Design of The Company’s Logo: Completed
 Printing of Promotional Materials: In Progress
 Recruitment of employees: In Progress
 Purchase of the needed cement bricks, concrete pipes and concrete blocks
making machines, furniture, racks, shelves, computers, electronic appliances,
office appliances and CCTV: In progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business both online and around the community: In
Progress
  Health and Safety and Fire Safety Arrangement (License): Secured
 Compilation of our list of products that will be available in our
warehouse: Completed
 Establishing business relationship with vendors – suppliers and wholesale
distributors of cement bricks, concrete pipes and concrete blocks: In Progress

Titus Mold Manufacturing, Inc. designs prototypes and molds, which are used by
production manufacturers to fabricate consumer products. We are a start-up
company that developed and patented revolutionary design software called
Virtual Design Center. Our initial plan is to create a precision manufacturing
facility to produce prototypes and molds for clients. Our goal is to provide our
customers with fast turnaround, exceptional quality, unparalleled customer
service, and competitive pricing.

1.2 PRODUCTS & SERVICES

We design and manufacture prototypes and molds. By utilizing Virtual Design
Center, we will work in real-time with our customers to meet their design needs,
which will reduce errors and detect design flaws early in the process. In turn, this
will save the customer time and money. We plan to position ourselves as a
forward-thinking company that continually invests in new ideas and technologies
– unlike our competitors, which are similar mold manufacturing facilities. Because
of our unique software, sophisticated technology and efficient processes, we will
be in a position to potentially compete on price and quality. As this manufacturing
business plan will outline, our unique Virtual Design Center gives us a definitive
advantage.

1.3 MARKET ANALYSIS

The U.S. manufacturing industry makes up a substantial portion of the GDP, and
the mold-manufacturing sector generates sales of more than $5 billion.
Manufacturing drives the U.S. economy more than any other industry. Within that
enormous industry, we have identified two strong markets with very high growth
potential – automotive parts and medical devices manufacturing. As new car
companies respond to shifting consumer demands for more fuel-efficient cars,
and as the medical community develops new technologies, the need for new
parts, designs and molds grows.
1.4 STRATEGY & IMPLEMENTATION
To achieve our business goals, we will create a high-tech, precision
manufacturing facility and will implement highly efficient operations processes.
We plan to promote Titus Mold Manufacturing and our proprietary Virtual Design
Software with an aggressive, targeted marketing campaign. This will include a
media campaign, print and online advertising and a targeted direct-mail
campaign. In addition, we will focus heavily on establishing our presence within
the industry at relevant trade shows.

1.5 MANAGEMENT
Our leadership team currently consists of Chief Executive Officer John Baker,
President Michael Smith, and Vice President Susan Jones. Additional key
leaders will include directors of finance, marketing and sales, human resources,
information technology and operations. While these positions remain unfilled at
this time, we do have several extremely qualified candidates interested in joining
with us in this new venture.

1.6 FINANCIAL PLAN

Our Company will earn revenue from the sale of design services and
manufactured molds. The attached Income Statement demonstrates that our
gross profit margin will exceed 72%, and we will achieve break-even with sales of
$XXX,XXX. We expect to reach profitability by the middle of Year 2.

1.7 SOURCES & USE OF FUNDS

Titus Mold Manufacturing, Inc. requires $4,450,000 to launch. At present, we
have raised $150,000 in venture capital funds. In addition, co-owners John
Baker, Michael Smith and Susan Jones have each invested $100,000 into the
company. We are currently seeking funds from outside investors and business
loans.

The start-up funds will be used to cover the facility, build-out costs, equipment,
software and initial operating costs including payroll, taxes, and utilities.
2.0 COMPANY
2.1 COMPANY & INDUSTRY
Titus Mold Manufacturing, Inc. is located in Molder, Missouri. Our company
designs and manufactures prototypes and molds for use in casting metals or
forming other materials, such as plastics, glass or rubber. Our business operates
within the manufacturing industry and is classified under NAICS code 333511 –
industrial mold manufacturing.

2.2 LEGAL ENTITY & OWNERSHIP

Titus Mold Manufacturing is an S-Corporation that was formally organized in
Missouri. The company’s principal owners are John Baker, Michael Smith and
Susan Jones, who hold equal shares of ownership in the company.

2.3 COMPANY HISTORY TO DATE

Our company is a new business that will create prototypes and quality molds,
utilizing the latest design software, e-commerce technology, high tech machinery
and innovative operations processes. As the company’s founders and owners,
we have a combined 40 years of experience in software development and the
manufacturing industry. Our experience includes product research and
development, engineering and production management. After recognizing the
need for and value of creating a more efficient customer experience to secure
and retain business, we decided to create Titus Mold Manufacturing, Inc.

2.4 FACILITIES
Our company is preparing to lease a manufacturing facility in Molder, Missouri.
We are presently operating out of temporary administrative offices at the Barton
Business Incubation Center.

We are working with a local realtor and BBIC to identify potential industrial space
available for lease. We require a 10-12,000 sq. ft. facility to accommodate
product development and engineering, a mold shop, a tool shop, quality
assurance area, inventory storage and administrative offices. As the business
grows, we intend to add injection-molding capabilities.
2.5 KEY ASSETS
Titus Mold Manufacturing holds a patent for its revolutionary Virtual Design
Center (VDC). The VDC combines the best of virtual and in-person presentations
and meetings, allowing customers to work in real-time with our design engineers.
This allows us to serve clients nationwide.

3.0 PRODUCTS/SERVICES
3.1 DESCRIPTION
Titus Mold Manufacturing, Inc. will make prototypes and molds for the
manufacturing of consumer products. A mold, which is usually made from
aluminum or steel, is a hollow form that gives a particular shape to a product
while it is in a liquid state. The molds are used for products made from plastic,
glass, metal or other raw materials.

There are three main phases to manufacturing a prototype or mold. First,

engineers and product developers create a design. Titus Mold Manufacturing is
able to complete a design from start to finish for a customer. If need be, Titus will
work with the customer through the design process via our one of a kind Virtual
Design Center. Secondly, we make test molds. We then inspect and test the
molds for quality assurance. Finally, we manufacture prototypes and molds
based on specific design specifications, using precision machinery to form the
desired prototype or mold.

3.2 FEATURES & BENEFITS

Virtual Design Center will be the key to distinguishing and drawing attention to
our company. Once we have a particular industry or customer’s attention, we will
sell them on our fast turnaround, exceptional quality, unparalleled customer
service and competitive pricing.

Obviously, speed, quality, service and price are qualities most of our competitors
will list in their mission statement. However, Titus Mold Manufacturing will – from
the beginning – invest in top quality, highly sophisticated machinery as well as
implement innovative operations policies. These steps will ensure our ability to
deliver beyond normal industry standard and surpass our customers’
expectations saving them time and money.
3.3 COMPETITION
Our competitors are companies that provide similar types of design and mold-
making services. There are far too many competitors to list specifically in this
manufacturing business plan. To their advantage, they have an established
customer base. Further, many mold-making companies also have injection-
molding machinery, which enables them to manufacture actual products.

However, the vast majority of our competitors are not taking full advantage of
current technology, nor are they implementing modern operational systems.
Their waste is ultimately passed along to the customer via longer turnaround
times and higher overhead costs.

3.4 COMPETITIVE ADVANTAGE/BARRIERS

TO ENTRY
By relying on our technology and an activity-based costing system, rather than a
time-based system, we will be able to maintain competitive prices and sustain
high profitability. Our technology and systematic efficiencies will allow us to have
advantages in cost, speed and design capability. Ultimately, these advantages
will quickly come to define Titus Mold Manufacturing as an industry leader.

Our Virtual Design Center technology gives us a significant advantage over our
competitors, and our patent prevents others from being able to replicate the
services we offer.

3.5 DEVELOPMENT
As our company grows, we plan to expand our facility and create an injection-
mold manufacturing plant. At that point, we will be able to control all operations
in-house from initial design to mold creation and even mass production of the
finished products. In addition, we will stay atop technology trends and upgrade
equipment and processes as needed and can be afforded. We will also continue
to research and pursue shares of existing markets such as packing, defense,
electronics and telecommunications and update portions of this manufacturing
business plan accordingly.
4.0 MARKET ANALYSIS
4.1 MARKET SIZE
The US manufacturing sector includes more than 300,000 companies with
combined annual sales of about $4 trillion. Furthermore there are approximately
2,500 mold manufacturers with combined annual sales of more than $5 billion.
To capture a portion of those sales, Titus Mold Manufacturing will utilize a
targeted industry approach to pursue specific, definable, market segments.

4.2 TARGET CUSTOMER

After extensive research, we decided to initially pursue market segments in the
automotive and medical devices industries. These are two very distinct markets
with very different needs. While the automotive industry’s purchasing decisions
are driven primarily by price, the medical device industry focuses on a fast
turnaround time and quality to make purchasing decisions.

4.3 TRENDS
The U.S. automobile manufacturing industry includes about 160 companies with
combined annual revenue of about $250 billion. While the majority of those sales
are swallowed up by a handful of major car manufacturers, there are thousands
upon thousands of parts needing to be manufactured for each vehicle. By
specializing in manufacturing molds for certain parts, we will establish our niche
in the market. Our research indicates this is a perfect time to assimilate into this
industry as carmakers make dramatic shifts in design and efficiency to address
rising fuel costs.

The medical devices industry is by far one of the most forward-thinking, always-
evolving industries. Researchers and product developers are continually striving
to improve products and procedures. With this constant change and product
evolution comes the constant need for new product molds. Couple the advances
in medical technology with an increasingly aging population, and it’s clear the
healthcare industry as a whole is a solid market and mold manufacturers will
reap the benefits.
4.4 SWOT ANALYSIS
The SWOT analysis for this manufacturing business plan is as follows:

Strengths
 Propriety software (Virtual Design Center)
 Potential for global customer base
 Manufacturing & production expertise
 Software development expertise
 Understanding of emerging technologies
 Understanding of target markets
 Competitive product pricing
 Exceptional quality and customer service
 Implementation of cost saving processes
Weaknesses
 No company history
 Small initial customer base
 New staff
 Lack of leverage with new relationships
Opportunities
 New products & processes
 Bringing new technology into the industry
 Developing a new reputation
 Hiring new talent
 New innovations and applications of our technology
Threats
 Impact of new legislation
 Technologies developed by competitors
 Challenges in building a talented staff
 Retaining key staff members
 Market demand fluctuations
5.0 STRATEGY & IMPLEMENTATION
5.1 PHILOSOPHY
Titus Mold Manufacturing’s business philosophy is to make the needs of our
customers our main priority. It is our mission to provide our customers with fast
turnaround, exceptional quality, unparalleled customer satisfaction and
competitive pricing. With the introduction of our patented Virtual Design Center
program and the unveiling of our modern design and manufacturing facility, we
will position Titus Mold Manufacturing as a superbly innovative company and a
future industry leader.

To achieve this position, we will implement our company’s plan to create a state-
of-the-art mold-manufacturing facility and invest in the most accurate precision
machinery available. We will implement the most comprehensive design software
and set the highest standards of operational systems and quality control.

5.2 INTERNET STRATEGY

Our plan is to position Titus Mold Manufacturing as a technology-driven
innovative company within the mold-manufacturing sector of the manufacturing
industry. To do this, we are putting forth a great amount of time and resources
into developing a premiere Web site. We are working with a design firm and have
secured a domain name – TitusMolds.com. We have already initiated the
process of integrating our Virtual Design Center into the site.

In addition to describing our manufacturing processes and design capabilities, we

will feature numerous success stories and images of prototypes and molds we
have produced. Our site will also include a simple online form to complete for
custom quotes as well as a generic form to submit questions and comments.

Our vision is to create a Web site that will become an integral part of our
marketing, sales and daily operations. We will use Wix to set up our site. This
tool has all of the features we need, including the ability to create and edit the
site very quickly. It also has ecommerce and other capabilities. Using Wix will
also enable us to save money since we can create the site ourselves and will not
have to hire a web designer.
5.3 MARKETING STRATEGY
Titus Mold Manufacturing recognizes the critical importance of marketing. We will
require a properly designed and executed marketing plan to ensure market
penetration and business success. Until we hire an in-house sales and marketing
team, we will work with a marketing and public relations firm. Once a sales and
marketing staff is in place, we will reassess the need for an outside firm.

In addition to conveying to our potential customers the fast turnaround,

exceptional quality, unparalleled customer service and competitive pricing offered
by Titus Mold Manufacturing, we will also position our company as future-minded
and a leader in the integration of innovative technology into the mold
manufacturing process.

Our marketing plan will include an initial publicity campaign that introduces our
company and patented Virtual Design Center. Further, we will launch a
comprehensive advertising campaign in automotive manufacturing and medical
devise trade publications and related Web sites. The publicity campaign will be
closely followed by a direct-mail campaign to targeted customers.

The other main component of our marketing plan will be to attend trade shows
which will require booth construction and maintenance, marketing materials such
as brochures, and promotional items such as pens with our logo.

To increase local awareness of our company and to foster a positive public

perception, we will participate in and sponsor local charity events such as Walk
for the Cure and March of Dimes and youth sports teams. We will also reach out
to local high schools and colleges to offer internships and promote careers in
manufacturing.

5.4 SALES STRATEGY

Titus Mold Manufacturing will build a sales team focused on securing new
business in the short and long term. The sales team will be motivated by
commissions and performance-based bonuses.

Under the direction of executive management, we will employ an outside sales

staff as well as an inside sales staff, which will be cross-trained to handle general
customer service calls. The outside sales staff will focus primarily on trade show
attendance, comprehensive follow up, relationship building, closing deals, and
securing referrals.

5.5 STRATEGIC ALLIANCES

We plan to develop strategic alliances with local and regional injection-molding
manufacturing facilities that do not have mold-making capabilities within their
facilities. One such alliance has been developed with Hilden Manufacturing
Company located within our region. More are developing.

5.6 OPERATIONS
Our facility’s space will be divided in proportion to our needs and will include
product development and engineering labs, mold shop, tool shop, quality control
and testing area, inventory storage and administrative offices. Each area will be
staffed with trained employees and wherever possible factory-floor technicians
will be cross-trained. Our administrative offices will include space for executive,
marketing and sales, accounting, information technology, security, maintenance,
and human resource departments. To become a fully operational mold-
manufacturing facility, we will require the following machinery and software.

Machines

 Viper, SLA 7000 & SLA 5000

 Eden260, Eden333 & Eden500V
 Vantage, Titan & Maxum
 RTV Tooling
Software

 SolidWorks
 Surfcam
 AutoCAD
By utilizing the latest precision machinery and software and superior operational
and quality control processes such as LEAN Manufacturing, Rapid Prototyping
and Manufacturing, and Six Sigma, Titus Mold Manufacturing will control costs
while ensuring quality. Additionally, once we are operational, our company will
become ISO 9001-2000 certified. Titus will also follow FDA requirements and
comply with Medical Directive standards to further ensure quality control.
Operationally, our strengths lie in our knowledge and expertise within the
manufacturing industry. We know what fixed assets we require and what
regulations we must adhere to. However, while we cannot know for certain the
quality of our managerial team at this point, we expect to hire and implement a
top notch team. As previously mentioned, we have several promising prospects
and will, of course, strive to recruit top talent.

5.7 GOALS
The following is a list of business goals and milestones we wish to accomplish
within the next three years.

 Secure necessary funds.

 Locate and lease suitable manufacturing facility.
 Purchase machinery, equipment and supplies.
 Hire skilled employees to complete our team.
 Set up shop and open for business.
 Successfully penetrate targeted markets.
 Secure contracts to achieve projected sales goals.
 Become a profitable company.
 Establish a solid reputation as an industry leader.
Our first major milestones will be securing funds and setting up our business.
This is our primary focus right now. In three years, we hope to have established
our company in the community and within our industry.

5.8 EXIT STRATEGY

Should management or our investors seek a business exit, there are several
options we would be willing to pursue. Our company could most likely be sold to
a manufacturing company that does not already have mold manufacturing
capabilities. A management buyout could also be pursued once our business
credit is firmly established.
6.0 MANAGEMENT
ORGANIZATIONAL STRUCTURE
6.1 ORGANIZATIONAL STRUCTURE
Titus Mold Manufacturing understands the importance of a loyal and enthusiastic
team to reduce turnover and increase productivity. Our company’s management
philosophy will encourage responsibility and mutual respect. While we will
present a strong decisive management team, we will also foster an atmosphere
of genuine employee appreciation and open communication.

6.2 LEADERSHIP
Our company will be managed and run by our executive staff including Chief
Executive Officer John Baker, President Michael Smith, and Vice President
Susan Jones, as well as our Board of Directors. Our management staff of
directors and supervisors will oversee daily operations. However, as a small
manufacturing facility starting out, the CEO, President and VP will be responsible
for the majority of purchasing, hiring, training, quality control, and additional day-
to-day duties.

Additional key leaders will include directors of finance, marketing and sales,
human resources, information technology and operations. While these positions
remain unfilled at this time, we do have several extremely qualified candidates
interested in joining with us in this new venture.

As we start our mold manufacturing business, we will implement a plan to hire

management and production staff first and fill in with mid-level management and
administrative staff as our budget and needs change.

6.3 BOARD MEMBERS & ADVISORS

Our Board of Directors is not yet fully formed. CEO John Baker will serve as
Chairman. The board will consist of company owners (shareholders), officers and
directors.

Duties of the Board of Directors may include:

  Establishing broad company policies and objectives.
 Selecting, appointing, and reviewing the performance of executive staff.
 Insuring the availability of adequate financial resources and approving
annual budgets.
 Accounting to the stakeholders for the organization’s performance
We will actively seek individuals to sit on our Board of Directors who will have the
ability to add to and advise our organization such as lawyers, accountants, and
professionals in the automotive or medical fields.

7.0 FINANCIAL PLAN

7.1 REQUIREMENTS
Titus Mold Manufacturing, Inc. requires $4,450,000 to launch and operate. We
are currently seeking funding from outside investors and business loans. We are
also looking into additional options including supplier financing, deferred rent,
subleasing space, partnerships, vending and client advance payment.

At this time, we have raised $450,000 in working capital and are seeking the
additional funds to start our business. We have raised $150,000 in venture
capital funds. In addition, co-owners John Baker, Michael Smith and Susan
Jones have each invested $100,000 into the company.

7.2 USE OF FUNDS

The start-up funds will be used to cover operating costs including payroll, taxes,
and utilities. Start-up funds will also be used to purchase capital expenditures
such as leasehold improvements, software and machinery, which will produce
future benefits for the company. Approximately forty percent will be spent on
assets, while the other sixty percent will be spent on operations until we realize
profitability.

7.3 INCOME STATEMENT PROJECTIONS

The accompanying income statement demonstrates our company’s profitability.
Our income shows a gross profit margin of seventy-two percent. Our monthly
operating expenses average $116,325. Projected net income will average
$54,075 per month in our third year.
 After completing a comprehensive break-even analysis, we will achieve our
break-even point by the middle of year two.

7.4 CASH FLOW PROJECTIONS

The nature of our business requires that our company collect payment after the
product is complete. So we have included the accompanying cash flow
statement, which projects our monthly flow of cash. While we expect to reach
break-even by our eighteenth month, it will take nearly two years to become cash
flow positive.

7.5 BALANCE SHEET

Our balance sheet will depend greatly on our sources of capital. We expect to
raise approximately $1.5 million through loans and $2.95 million through equity
capital.

Our assets will be comprised of cash, leasehold improvements, equipment,

software and other tangible assets.

7.6 ASSUMPTIONS
Our projections are based on the assumption that the manufacturing industry,
particularly the medical and automotive industries, will continue to follow present
trends. Industry regulation and government legislation is always poised to
interfere with business projections, but there are no indications at this time to
expect any negative influence to our projections. Additionally, we are not relying
on new regulations or the passage of new legislation to enable our company to
reach our projected numbers.

Table of Contents
 Manufacturing Business Plan
o 1.0 EXECUTIVE SUMMARY
 1.1 COMPANY
 1.2 PRODUCTS & SERVICES
 1.3 MARKET ANALYSIS
 1.4 STRATEGY & IMPLEMENTATION
  1.5 MANAGEMENT
 1.6 FINANCIAL PLAN
 1.7 SOURCES & USE OF FUNDS
o 2.0 COMPANY
 2.1 COMPANY & INDUSTRY
 2.2 LEGAL ENTITY & OWNERSHIP
 2.3 COMPANY HISTORY TO DATE
 2.4 FACILITIES
 2.5 KEY ASSETS
o 3.0 PRODUCTS/SERVICES
 3.1 DESCRIPTION
 3.2 FEATURES & BENEFITS
 3.3 COMPETITION
 3.4 COMPETITIVE ADVANTAGE/BARRIERS TO
ENTRY
 3.5 DEVELOPMENT
o 4.0 MARKET ANALYSIS
 4.1 MARKET SIZE
 4.2 TARGET CUSTOMER
 4.3 TRENDS
 4.4 SWOT ANALYSIS
o 5.0 STRATEGY & IMPLEMENTATION
 5.1 PHILOSOPHY
 5.2 INTERNET STRATEGY
 5.3 MARKETING STRATEGY
 5.4 SALES STRATEGY
 5.5 STRATEGIC ALLIANCES
 5.6 OPERATIONS
 5.7 GOALS
 5.8 EXIT STRATEGY
o 6.0 MANAGEMENT ORGANIZATIONAL STRUCTURE
 6.1 ORGANIZATIONAL STRUCTURE
 6.2 LEADERSHIP
 6.3 BOARD MEMBERS & ADVISORS
o 7.0 FINANCIAL PLAN
 7.1 REQUIREMENTS
 7.2 USE OF FUNDS
 7.3 INCOME STATEMENT PROJECTIONS
 7.4 CASH FLOW PROJECTIONS
 7.5 BALANCE SHEET
 7.6 ASSUMPTIONS