Business Plan: Construction and Engineering Services

ERUDITE CONSULTS
BUSINESS PLAN
Construction and Engineering Services
By Ikeh James
2020
WWW.ERUDITECONSULT.000WEBHOSTAPP.COM
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Eruditesconsults in this business plan is confidential;
therefore, reader agrees not to disclose it without the express written permission of vibrant erudite group members.
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature,
other than information which is in the public domain through other means and that any disclosure or use of same by reader,
may cause serious harm or damage to the company.
Upon request, this document is to be immediately returned to Eruditeconsults.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.

ERUDITE CONSULT-BUSINESS PLAN
1.0 Executive Summary ............................................................................................................................................................... 3

Chart: Highlights ................................................................................................................................................................ 3
1.1 Objectives ......................................................................................................................................................................... 3
1.2 Mission ............................................................................................................................................................................. 3
1.3 Keys to Success ................................................................................................................................................................ 4
2.0 Company Summary ............................................................................................................................................................... 4
2.1 Company Ownership ........................................................................................................................................................ 4
2.2 Start-up Summary ............................................................................................................................................................. 4
Table: Start-up Funding ..................................................................................................................................................... 4
Chart: Start-up .................................................................................................................................................................... 6
Table: Start-up.................................................................................................................................................................... 4
2.3 Company Locations and Facilities .................................................................................................................................... 6
3.0 Services.................................................................................................................................................................................. 6
3.1 Competitive Comparison .................................................................................................................................................. 6
3.2 Sales Literature ................................................................................................................................................................. 7
3.3 Service Description ........................................................................................................................................................... 7
3.4 Fulfillment ........................................................................................................................................................................ 8
3.5 Technology ....................................................................................................................................................................... 8
3.6 Future Services ................................................................................................................................................................. 8
4.0 Market Analysis Summary .................................................................................................................................................... 8
4.1 Market Segmentation ........................................................................................................................................................ 9
Chart: Market Analysis (Pie) ............................................................................................................................................. 9
Table: Market Analysis ...................................................................................................Error! Bookmark not defined.9
4.2 Service Business Analysis ................................................................................................................................................ 9
4.2.1 Business Participants ............................................................................................................................................... 10
4.2.2 Competition and Buying Patterns ........................................................................................................................... 11
4.2.3 Main Competitors.................................................................................................................................................... 11
5.0 Strategy and Implementation Summary............................................................................................................................... 11
5.1 Competitive Edge ........................................................................................................................................................... 11
5.2 Marketing Strategy ......................................................................................................................................................... 12
5.2.1 Promotion Strategy.................................................................................................................................................. 12
5.2.2 Positioning Statement .............................................................................................................................................. 13
5.2.3 Pricing Strategy ....................................................................................................................................................... 13
5.3 Sales Strategy .................................................................................................................................................................. 13
5.3.1 Sales Forecast .......................................................................................................................................................... 13
Table: Sales Forecast ................................................................................................................................................... 14
Chart: Sales by Year .....................................................................................................Error! Bookmark not defined.
Chart: Sales Monthly ................................................................................................................................................... 14
5.4 Milestones ........................................................................................................................Error! Bookmark not defined.
Table: Milestones ..............................................................................................................Error! Bookmark not defined.
Chart: Milestones ..............................................................................................................Error! Bookmark not defined.
6.0 Management Summary ........................................................................................................................................................ 14
6.1 Management Team ......................................................................................................................................................... 14
6.2 Management Team Gaps .................................................................................................Error! Bookmark not defined.
6.3 Personnel Plan................................................................................................................................................................. 15
Table: Personnel ................................................................................................................Error! Bookmark not defined.
7.0 Financial Plan ...................................................................................................................................................................... 15
7.1 Important Assumptions ................................................................................................................................................... 15
Table: General Assumptions ............................................................................................................................................ 15
7.2 Key Financial Indicators ................................................................................................................................................. 15
Chart: Benchmarks ........................................................................................................................................................... 16
7.3 Break-even Analysis ....................................................................................................................................................... 16
Table: Break-even Analysis ..............................................................................................Error! Bookmark not defined.
Chart: Break-even Analysis ..............................................................................................Error! Bookmark not defined.
7.4 Projected Profit and Loss ................................................................................................................................................ 17
Chart: Gross Margin Yearly ............................................................................................................................................. 17
Table: Profit and Loss ...................................................................................................................................................... 18
Page 1
Chart: Profit Monthly ........................................................................................................Error! Bookmark not defined.

Chart: Profit Yearly .......................................................................................................................................................... 19
Chart: Gross Margin Monthly ...........................................................................................Error! Bookmark not defined.
7.5 Projected Cash Flow ....................................................................................................................................................... 19
Chart: Cash....................................................................................................................................................................... 19
Table: Cash Flow ............................................................................................................................................................. 19
7.6 Projected Balance Sheet .................................................................................................................................................. 20
7.6 Projected Balance Sheet .................................................................................................................................................. 20
Table: Balance Sheet ........................................................................................................................................................ 20
7.7 Business Ratios ............................................................................................................................................................... 21
7.7 Business Ratios ............................................................................................................................................................... 21
Table: Ratios .................................................................................................................................................................... 21
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1.0 EXECUTIVE SUMMARY
Erudite consults is a consulting firm specializing in construction and engineering services, an e-commercial
website was developed in Lagos within the first month of operations to reduce startup cost. The founders of the
firm are professionals in construction and engineering, with years of progressive and responsible experience.
The founders provided an initial investment toward startup costs. Of this, more than half is required for startup
expenses while the balance is to be placed in the company accounts as working capital.
The firm specializes in providing various construction engineering services such as electrical, plumbing,
masonry, welding, carpentry, painting and stone work services to our clients. State of the art analysis and design
tools will be an integral part of the business plan. Implementation of a quality control and assurance program
will provide a focus for production
Chart: Highlights
Highlights
N180, 000
N160, 000
N140, 000
N120, 000
Sales
N100, 000
Gross Margin
N80, 000
Net Profit
N60, 000
N40, 000
N20, 000
N0
Year 1 Year 2 Year 3
1.1 OBJECTIVES
1. Modest revenues the first year, with slow but steady growth over the next two years.
2. Achieve break even at the end of the second year of operation
3. Increase gross margin significantly by the third year of operations
4. Gain 20% of market value by the second year of operations
1.2 MISSION
Our mission is to provide clients across Nigeria with construction and engineering services for all types of
buildings, from concept planning through to completion, with a highly skilled professional team working
together, using common sense and practical experience.
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1.3 KEYS TO SUCCESS
1. Provide professional quality services on time and on budget.

2. Develop a follow-up strategy to gauge performance with all clients.
3. Implement and maintain a quality control and assurance policy.
2.0 COMPANY SUMMARY
Erudite consult. is a new company which provides professional construction and engineering services for
clients which manage, maintain, and plan for residential, commercial, and industrial type buildings. Our
focus will be the public sector market in remote communities across Nigeria, in west-Africa.
2.1 COMPANY OWNERSHIP
Erudite consult. was created as an online E-commercial construction consulting, company. The company is
owned by a group of skilled construction workers known as the vibrant erudite.
2.2 START-UP SUMMARY
Our start-up expenses allow for initial legal expenses, licenses, permits, stationary, specialty software,
office equipment, and furniture. In addition to these start-up costs, an initial balance will be placed in the
company accounts. The software purchases include an allowance of N5,000 for AutoCADD® 2000,
N1,800 for National Master Specifications, and N800 for QuickBooks® (accounting package).
The vibrant erudite will contribute towards the overall start-up costs.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal N50,000
Stationery etc. N60,000
Professional Liability Insurance N25,200
Business Licenses N10,000
Permit Holder (NAPEGG) N15,000
Website Development N60,000
Office Furniture N65,000
Software Purchases N70,000
Computer/Office Equipment N50,000
Other N50,000
Total Start-up Expenses N455,000
Start-up Assets
Cash Required N355,000
Other Current Assets N0
Long-term Assets N0
Total Assets N355,000
Total Requirements N810,000
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Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund N455,000
Start-up Assets to Fund N355,000
Total Funding Required N810,000
Assets
Non-cash Assets from Start-up N0
Cash Requirements from Start-up N355,000
Additional Cash Raised N0
Cash Balance on Starting Date N355,000
Total Assets N355,000
Liabilities and Capital
Liabilities
Current Borrowing N0
Long-term Liabilities N0
Accounts Payable (Outstanding Bills) N0
Other Current Liabilities (interest-free) N0
Total Liabilities N0
Capital
Planned Investment
Owner N0
Investor N0
Additional Investment Requirement N810,000
Total Planned Investment N810,000
Loss at Start-up (Start-up Expenses) (N455,000)

Total Capital N355,000
Total Capital and Liabilities N355,000
Total Funding N810,000
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Chart: Start-up
START-UP
900,000
800,000
700,000
600,000
500,000
400,000 (000')NAIRA
300,000
200,000
100,000
0
expenses asset investment loan
2.3 Company Locations and Facilities
We establish a joint office in lagos, in order to reduce start-up costs. The office space is estimated to be 150
square feet. We installed a dedicated fax line as well as a high-speed Internet connection. An interactive
website was also developed which will serve as a marketing tool. The domain name of
"eruditeconsult.com" has already been reserved.
3.0 Services
Erudite consult. offers complete construction and engineering services. We will focus on buildings with the
following 'Use and Occupancies':
 Residential.
 Commercial.
 Industrial.
The company is 'project' oriented where each project involves:
 Renovations.
 Rehabilitation.
 Additions.
 New construction.
We offer innovative and economical construction services, maintaining state-of-the-art design technology.
We meet client needs on projects of all sizes and smaller, special design projects.
3.1 COMPETITIVE COMPARISON
Erudite consult. offers their clients superior service accompanied with state-of-the-art analysis and design
capabilities. We will offer three-dimensional visualization services to reduce the possibility of spatial
conflicts with architectural elements and other engineering disciplines. In comparison, our competitors rely
mostly on two-dimensional models.
We implement a quality assurance and control program for all projects undertaken. This document will
serve to focus on the standards which will be achieved and a means of measuring performance.
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A systematic manner of sorting and retrieving a library of structural elements and assemblies will be
implemented. Slide libraries will be available from a tool bar within AutoCADD for quick access. We will
adopt the layering standards of the American Institute of Architects (AIA). In comparison, our competitors
do not have an integrated database.
Erudite consult. adopts the filing systems developed by the AIA. All project information will be tracked
using an integrated database management system. All of our business tools will be year 2020 compliant.
3.2 SALES LITERATURE
A brochure system, which covers a broad spectrum of the target market segment will be developed during
the initial year of operations. This system will be modular in nature and include many 'boiler plate' sections
which may be edited to suit specific needs. Brochure inserts will be maintained as individual sheets to
facilitate their assembly in any custom situation.
Our website was developed the first month of operations and include a description of our services, the areas
which we plan to serve, contact information, a list of representative projects, and a brief biography of the
vibrant erudites. An Internet domain name has already been reserved for this purpose ...
http://www.eruditeconsult.000webhostapp.com
A series of templates was developed for project proposals. The format for all proposals include:
 Cover letter.
 Scope of services for each project.
 Fee (if requested).
 Firm's qualifications to provide services (overview).
 Project Team (describes each person's tasks and qualifications).
 Philosophy of construction approach.
 Relevant experience.
 Schedule to provide services.
3.3 SERVICE DESCRIPTION
Project Consulting: Proposed and billed on a per-project and per-milestone basis, project consulting offers
a client company a way to harness our specific qualities and use our expertise to develop and/or implement
plans, from conceptual planning to turnover. Proposal costs will be associated with each project.
Forensic Investigations: Proposed and billed on a per-project and per-milestone basis, our investigations
will serve the public and private sector markets. We will focus on troubleshooting buildings where damage
and or failure has occurred. Our reports will outline the description of the problem, the nature of the
mechanism which has caused damage or failure, and a list of options for remedial action including
estimated budget costs for implementation.
Project Management: Our project management services include defining client needs, preparing bid
documents, tendering, bid analysis, construction review, payment certification, contract administration, and
warranty inspections. Projects include new facilities, renovations, repairs, and remodeling.
Dispute Resolution: We draw upon our broad range of construction and contract administration experience
to provide dispute resolution services, including arbitration, mediation and expert reports for litigation. This
work is supported by forensic engineering services to identify the cause of failures.
Restoration Engineering: We provide condition survey, design, and construction review services for the
repair of building structures.
Home Inspections: We will provide prospective homeowners with an assessment of the various systems in
a residential home, including foundations, framing, building envelope and efficiency, mechanical systems,
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electrical systems, and general safety issues. We provide a photographic record along with a thorough
written report.
3.4 FULFILLMENT
We turn to qualified professionals to supplement computer aided design and drafting (CADD) services,
specialty connection designs, and analysis support services which are areas that we can afford to contract
out without risking the core values provided to the clients.
We have fostered several alliances with suppliers of structural elements, including glued laminated lumber,
pre-engineered dimension lumber trusses, engineered lumber, and steel to facilitate this strategy.
In the second year of operations, we intend to secure a storefront presence in ikeja lagos. At this stage, we
will seek qualified engineering students to provide them with work experience in a construction engineering
office environment.
3.5 TECHNOLOGY
Erudite consult. Maintains complete and comprehensive Windows® based analysis tools for construction
design. An integrated computer aided design and drafting tool permits several evaluations to be made on a
structure at minimal cost.
Erudite consult. Maintains an Internet website complete with file transfer protocol (ftp) capabilities.
3.6 SERVICES
Erudite consult. offers a comprehensive package of services designed to allow the client to work with one of our
managers and create a project the company can carry forward to completion. Some of the myriad services Fosse
offers are:
 Design work
 Remodeling and alterations
 Electrical wiring and installations
 Carpentry
 Cement foundations
 Painting
 Plumbing and utilities installation
 Exterior renovations
 Subcontractor assessment and evaluation.
Toll-Free Communications: We will provide our clients a toll-free number to access 24 hours a day in the
second year of operations.
4.0 MARKET ANALYSIS SUMMARY
Lagos states is currently experiencing a boom at this moment, overall business growth over the past seven years
has averaged approximately 20.5% and is expected to continue for at least the next four years. This constitutes
an attractive market for erudite consults.
We will be concentrating on the customers that will provide us with the greatest margin, in other words those
clients desiring office building construction. This is the fastest growing segment of all the commercial clients
requiring our services. The other categories we will serve include the restaurant and special facilities
segments, along with a segment we will call the general category, to serve all other potential commercial clients.
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4.1 MARKET SEGMENTATION
1. Small Business: At the moment our potential list of clients includes all the various businesses in ikeja
and Lagos island areas and its suburbs. According to the Lagos Small Business Association there are
1,512 firms of all types and sizes in the surrounding area. We will concentrate on the customers
that can provide us with the greatest margin, in other words those clients desiring office building
construction. This is the fastest growing segment of all the commercial clients requiring our services.
The other categories that we will serve include the restaurant segment, the special facilities segment,
such as gas stations, and theaters, and a category which we will call "general", encompassing all other
potential commercial clients.
2. Private Individuals: We will focus attention on homeowners in Yellowknife who are renovating or
contemplating an addition to their residence. We will also promote home inspections to those parties
contemplating the purchase of a home.
3. Realtors: In conjunction with home inspections, we will make all the Realtors aware of this service.
Table: Market Analysis
Market Analysis
2016 2017 2018 2019 2020
Potential Customers Growth CAGR
Office building 6% 2,517 2,668 2,828 2,998 3,178 6.00%
construction
Restaurant construction 3% 1,779 1,832 1,887 1,944 2,002 3.00%
Special facilities 3% 2,750 2,833 2,917 3,005 3,095 3.00%

construction
General construction 2% 3,264 3,329 3,396 3,464 3,533 2.00%
Total 3.45% 10,310 10,662 11,028 11,411 11,808 3.45%
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4.2 SERVICE BUSINESS ANALYSIS
Since office building construction has the highest average profit margin, we will focus most of our marketing
and servicing toward these customers. Usually these clients require the largest projects in scope, land use, and
cost. In addition, they tend to be the most sensitive to completion times. Therefore, we plan to accommodate
these clients through a well established and expeditious permitting program, strict cost accounting and supply
management, and intensive and comprehensive project management capitalizing on Fosse's experience in the
field.
The commercial construction industry is highly fragmented across the nation. More than 86% of all construction
companies in the Nigeria, consist of small "mom and pop" style companies employing less than ten individuals.
Contrasted to this are the large companies that engage in "heavy" construction such as roads, shopping malls,
etc. who often have a nationwide scope and employ several thousands of workers. This creates a highly
competitive market with low profit margins. Companies wanting to create a defensible position in this market
need some form of competitive edge, such as brand name, low cost advantages, or size
4.2.1 BUSINESS PARTICIPANTS
The majority of consulting services cater to the needs of the Territorial Governments. The Territorial
Governments operate on a budget of approximately N1,170 Billion per year, based on the 2018/2019 Main
Estimates. Of this total, approximately N1,028 billion is spent on Operating and Maintenance Expenditures
while N142 billion is allocated to Capital Expenditures.
Within the Capital Expenditures, Buildings and Works is a sub-category. This is the area of the annual
operating budget from which all building design consultants must draw upon. Our analysis of the
2018/2019 Main Estimates indicates a total expenditure of N59,339,000. A typical A/E contract derives fee
estimates from total budgets. For this analysis, we will apply 9% as a guideline for design fees. This yields
a figure of about N5,340,000 in design fees available for distribution to the consulting industry.
The major clients within the Territorial Governments include:
 Department of Education.
 Department of Transportation.
 Department of Municipal and Community Affairs.
Our competition matrix indicates a total of 102 persons within the construction field in the Territories. This
total has been subdivided into the types of positions these people hold. Based on reasonable estimates of
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salary expectations including 30% burdens for administration yields a value of about N7,800,000. This
figure represents an estimate of the revenues required to sustain engineering consultants in the Territories.
From this evaluation, the Territorial Governments account for close to 70% of design fees while other
participants in the building marketplace account for the balance. The Territorial Governments retain
consultants for the following types of buildings:
 Schools.
 Health Centres.
 Community Halls.
 Arenas.
 Warehouses.
 Firehalls.
These types of buildings are constructed on a rotating basis across several communities in the Nation. In
addition to new construction, rehabilitation, renovations, and additions are also in demand.
Typically, the Territorial Governments issue a proposal call to construction consultants to service these
needs. Eruditeconsults will position itself as a construction Sub-Consultant or resource to the Prime
Consultant.
Eruditeconsults. will also promote its services as construction specialists and project managers to the
Territorial Governments.
4.2.2 COMPETITION AND BUYING PATTERNS
Currently we have three major competitors within the lagos areas. These are honeytreat limited, lagos Specialty
Construction, and Polanski Construction. Each of these companies targets the same clients as Erudite consults,
and each has a fine reputation for customer satisfaction. However, the market in lagos is growing so fast that the
demand is currently greater than supply. This is an excellent opportunity to gain market share and a defensible
position in the industry.
One of the greatest limiting factors in this industry is its strong seasonality. During the raining months, contracts
and production drop off sharply, increasing the company's short-term risk of cash flow shortfall.
5.0 STRATEGY AND IMPLEMENTATION SUMMARY
The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its
services to residential and commercial builders. The market strategy is to capitalize on construction and
engineering services by securing city, county, and state and federal government contracts.
Erudite consults, will be committed to ensuring that the products used on its' customers job sites, everything
from access scaffolding to concrete shoring frames and forming equipment, is safe and OSHA approved.
Along with clients, the company believes in a health and safety initiative that is all pervasive, managing any
potential loss in the work environment.
Erudite consults, will develop sophisticated formwork solutions for some of the most complex construction
projects being done today. The company's standard form systems will be versatile and completely adaptable
to a variety of configurations such as Y-walls, shafts, and circular walls.
With that in mind, Erudite consults, will adopt a corporate strategy that is dedicated to improving the
performance of activities on the critical path of its customers' projects. The company will do this by
building on its core strengths: innovative equipment, design engineering expertise, and project and site
management, within an environment of safety excellence.
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At Erudite consults,, customer service is a pro-active partnership, a relationship that ensures a professional,
efficiently run, safe workplace. The company's customer service philosophy starts at the top, is ingrained
into the fabric of the company, and is closely aligned to Erudite consults, goal of contributing to its'
customers critical success factors.
Customer service can be divided into two interrelated areas: equipment and people. On the job site, with the
help of a newly integrated technology system and a well-trained staff, Erudite consults, will be able to
maintain excellent control over such key areas as inventory, shipments/deliveries, damage loss, and
invoicing. Troubleshooting, which customer service representatives often do right on the job site, will be
handled quickly and efficiently. On the people side, Erudite consults will provide a highly qualified and
well-prepared labor force, ensuring that schedules and deadlines are met and worker safety remains a top
consideration.
5.1 COMPETITIVE EDGE
Eruditeconsults competitive edge is outstanding customer service. This begins with the initial interaction
when providing the customer with an estimate. The next chance to shine is the time when the company is
on-site laying down the sealcoat. Upon finishing the job an employee will briefly speak (or leave written
documentation if the customer is not home) with the customer detailing what was just done to their
driveway, what needs to be done in regards to curing, what are some reasonable expectations in regards to
the service and what to do if they have any problems or questions.
The employees will be specifically trained on how to interact with the customer so Eruditeconsults will feel
comfortable in letting the employees who are laying down the sealcoating be Eruditeconsults
representative with the customer.
Eruditeconsults. Also Offers their clients superior service accompanied with state-of-the-art analysis and
design capabilities. We will offer three-dimensional visualization services to reduce the possibility of
spatial conflicts with architectural elements and other engineering disciplines. In comparison, our
competitors rely mostly on two-dimensional models.
We implement a quality assurance and control program for all projects undertaken. This document will
serve to focus on the standards which will be achieved and a means of measuring performance.
5.2 MARKETING STRATEGY
Eruditeconsults. plans to market itself through a variety of methods. First, the company will use a referral
system with local businesses. We will also air radio spots and publish ads in a variety of commercial
construction trade magazines. In addition we will leverage our pre-existing contacts with the local real estate
companies. Finally, as a member of the local construction association, we will be updated on new projects let
out for bid.
5.2.1 PROMOTION STRATEGY
We will be using the Internet extensively in our sales promotion. Together with a well targeted direct mail
and e-mail campaign, we will make all the major players in the marketplace aware of our presence.
We will focus our limited advertising budgets to promote community sponsored events. We will also offer
technical services at discount rates to non-profit organizations.
When travelling to remote communities, we will contact the local principals in elementary and high schools
offering them a speaker on construction engineering as a career choice.
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5.2.2 POSITIONING STATEMENT
For established engineering and architectural firms in lagos who require construction and engineering sub-
consultant services, Eruditeconsults. offers a competitive and economical option. Projects may be delegated
to Eruditeconsults. directly or arrangements can be made to supplement and assist their own in-house staff.
5.2.3 PRICING STRATEGY
Most construction work is billed on an hourly basis to pre-determined levels dictated by project schedule
milestones. We have assigned a rate of N600/hour for basic consulting services and N300/hour for drafting
services. These are conservative values for the construction market. We have used conservative unit rates
to remain more competitive.
5.3 SALES STRATEGY
The most critical part of sales is not the marketing, but the bidding process, in which companies offer their
designs, services, material quality, project timeline estimates, and costs. The company that offers the best
combination of these variables is the most likely to get the contract. Therefore very detailed project planning,
including supply agreements, labor needs, subcontractors, presentation, and other factors, is crucial for
Eruditeconsults in winning contracts. We will be designing a standardized method for doing this with all our
contracts, with an emphasis on quality, timeliness, and low cost to outbid our competitors.
5.3.1 SALES FORECAST
The following table and chart summarizes forecasted sales. We expect sales to remain at a constant level
after three months of operation. We predict the first two months of operations will be slow. Revenues will
be limited while a generic quality management plan is formulated and basic office administration tasks are
completed.
Direct unit costs for the first year have been set at less than one-third of unit revenues, which yields a high
gross margin. In the third year of operations, we plan to increase gross margin as a result of providing a
more efficient service to our clients.
Our unit rate for basic consulting services has been set at $80/hour. This is a conservative assumption based
on published salary guideline levels for engineering professionals. Our unit rate for CADD services is
N600/hr.
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Table: Sales Forecast
Sales forecasts are based on conservative estimates. We expect sales in 2020 to be lower than previously
planned as we adjust to a new client base. After that, we expect sales growth to be much higher as we gain
market share.
Table: Sales Forecast

Sales Forecast
2021 2022 2023
Sales
New Construction N247,562 N293,478 N332,165
Repair work N250,414 N293,478 N332,165
Alteration work N245,760 N293,478 N332,165
Total Sales N743,736 N880,434 N996,495
Direct Cost of Sales 2021 2022 2023

New Construction N176,797 N214,239 N242,480
Repair work N181,004 N214,239 N242,480
Alteration work N177,723 N220,109 N249,124
Subtotal Direct Cost of Sales N535,525 N648,586 N734,085
6.0 MANAGEMENT SUMMARY
The company's management philosophy will be based on responsibility and mutual respect. Eruditeconsults
will maintain an environment and structure that will encourage productivity and respect for customers and
fellow employees.
Eruditeconsults will be responsible to its employees, the men and women who work with the company
throughout the state. At Eruditeconsults, everyone will be considered as an individual and the company will
respect their dignity and recognize their merit. Employees will be encouraged to have a sense of security
and pride in their jobs. Additionally, employees will be free to make suggestions and complaints. The
company will afford equal opportunity for employment, development, and advancement for those qualified.
Eruditeconsults employees will be committed to:
 Providing a safe work environment to protect employees, the employees of customers and
subcontractors, and the public.
 Supplying safe products for customers.
 Continuously improving the company's safety program to reduce the risk of accidents and occupational
illness in a changing work environment.
 Encouraging employees to participate in accident prevention programs and take personal responsibility
for their own and their co-workers' health and safety.
 Regulatory compliance and contribution to high safety standards for our industry.
 Monitoring workplaces, enforcing safe work practices, and communicating the company's safety
performance to employees and other stakeholders.
 Making safety a value-added service that the company provides to its customers.
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6.1 PERSONNEL PLAN
Erudite consult. Management is highly experienced and qualified. Mr. demehin babajide leads the
management team. Besides, other labor costs include a part-time accountant. The table below outlines
Eruditeconsults personnel plan for FY2021-2023.
Table: Personnel
Personnel Plan
Administration N143,478 N143,478 N152,174
Other N0 N0 N0
Total People 15 15 15
Total Payroll N143,478 N143,478 N152,174
7.0 FINANCIAL PLAN
The financial plan which follows summarizes information regarding the following items:
 Important Assumptions.
 Key Financial Indicators.
 Break-Even Analysis.
 Projected Profit and Loss.
 Projected Cash Flow.
 Projected Balance Sheet.
 Business Ratios.
7.1 IMPORTANT ASSUMPTIONS
The financial plan depends on important assumptions, most of which are shown in the following table as
annual assumptions. The monthly assumptions are included in the appendix.
Some of the more important underlying assumptions are:
 We assume a strong economy, without major recession.

 Interest rates, tax rates, and personnel burdens are based on conservative assumptions.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
7.2 KEY FINANCIAL INDICATORS
The following benchmark chart indicates our key financial indicators for the first three years. We foresee
modest growth in sales and a marginal reduction in operating expenses for the years presented.
Page 15
Chart: Benchmarks
7.3 BREAK-EVEN ANALYSIS
The following table and chart summarize our break-even analysis. With our estimated monthly fixed costs,
the table and chart below show the number of billing targets per month we will need to cover our costs. We
don't really expect to reach break-even until a few months into the business operation.
During the second year of operations, the break-even sales volume is estimated as shown below.
Chart: Break-even Analysis
Break-even Analysis
N60, 000
N40, 000
N20, 000
N0
(N20, 000)
(N40, 000)
(N60, 000)
(N80, 000)
N0 N80, 000 N160, 000 N240, 000 N320, 000 N400, 000
N40, 000 N120, 000 N200, 000 N280, 000 N360, 000 N440, 000
Page 16
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even N240,706
Assumptions:
Average Percent Variable Cost 64%
Estimated Monthly Fixed Cost N80,894
7.4 PROJECTED PROFIT AND LOSS
The gross margin for a service-based business is a reflection of the efficiency at which those services are
offered. In the initial year of operations, we have targeted a high gross margin. This is not an unreasonable
figure for a consulting business. For the second and third year of operations, we have targeted slightly
increased gross margins to indicate overall improved efficiency at service delivery. Net Profit/Sales is
determined to be modest the first year, again increasing slightly in the second year and the third year.
Chart: Gross Margin

Yearly
Gross Margin Yearly
N160, 000
N140, 000
N120, 000
N100, 000
N80, 000
N60, 000
N40, 000
N20, 000
N0
Page 17
Table: Profit and Loss
Pro Forma Profit and Loss

Sales N117,680 N129,600 N180,000
Direct Cost of Sales N35,304 N32,400 N27,600
Other Costs of Sales N0 N0 N0
Total Cost of Sales N35,304 N32,400 $27,600
Gross Margin N82,376 N97,200 N152,400

Gross Margin % 70.00% 75.00% 84.67%
Expenses
Payroll N50,000 N60,000 N70,000
Marketing/Promotion N0 N0 N0
Depreciation N0 N0 N0
Website Hosting Fees N0 N0 N0
Engineering Assoc Annual Fees N0 N0 N0
Continuing Education N0 N0 N0
Yellow Pages/White Pages N0 N0 N0
Telephone/Fax N0 N0 N0
Software Purchases (Staad-Pro Core) N0 N0 N0
Utilities N0 N0 N0
Errors and Omissions Insurance N0 N0 N0
Rent N0 N0 N0
Payroll Taxes N7,500 N9,000 N10,500
Contract/Consultants N0 N0 N0
Other N0 N0 N0
Total Operating Expenses N57,500 N69,000 N80,500
Profit Before Interest and Taxes N24,876 N28,200 N71,900

EBITDA N24,876 N28,200 N71,900
Interest Expense N0 N0 N0
Taxes Incurred N7,463 N8,460 N21,570
Net Profit N17,413 N19,740 N50,330

Net Profit/Sales 14.80% 15.23% 27.96%
Page 18
Chart: Profit Yearly
Profit Yearly
N50, 000
N40, 000
N30, 000
N20, 000
N10, 000
N0
7.5 PROJECTED CASH FLOW
Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with
one bar representing the cash flow per month, and the other the monthly balance. The first few months are
critical. It may be necessary to inject additional capital in this time-frame if the need arises. The annual cash
flow figures are included here and the more important detailed monthly numbers are included in the
appendix.
Chart: Cash
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales N0 N0 N0
Cash from Receivables N 97,541 N127,560 N171,375
Subtotal Cash from Operations N97,541 N127,560 N171,375
Additional Cash Received

Sales Tax, VAT, HST/GST Received N0 N0 N0
New Current Borrowing N0 N0 N0
New Other Liabilities (interest-free) N0 N0 N0
New Long-term Liabilities N0 N0 N0
Sales of Other Current Assets N0 N0 N0
Sales of Long-term Assets N0 N0 N0
New Investment Received N0 N0 N0
Subtotal Cash Received N97,541 N127,560 N171,375
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending N50,000 N60,000 N70,000
Page 19
Bill Payments N46,161 N49,868 N58,864

Subtotal Spent on Operations N96,161 N109,868 N128,864
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out N0 N0 N0
Principal Repayment of Current Borrowing N0 N0 N0
Other Liabilities Principal Repayment N0 N0 N0
Long-term Liabilities Principal Repayment N0 N0 N0
Purchase Other Current Assets N0 N0 N0
Purchase Long-term Assets N0 N0 N0
Dividends N0 N0 N0
Subtotal Cash Spent N96,161 N109,868 N128,864
Net Cash Flow N1,380 N17,692 N42,511

Cash Balance N13,380 N31,073 N73,584
7.6 PROJECTED BALANCE SHEET
The balance sheet in the following table shows managed but sufficient growth of net worth and a
sufficiently healthy financial position. The monthly estimates are included in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash N13,380 N31,073 N73,584
Accounts Receivable N20,139 N22,179 N30,804
Other Current Assets N0 N0 N0
Total Current Assets N33,519 N53,251 N 104,388
Long-term Assets
Long-term Assets N0 N0 N0
Accumulated Depreciation N0 N0 N0
Total Long-term Assets N0 N0 N0
Total Assets N33,519 N53,251 N104,388
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable N4,106 N4,098 N4,904
Current Borrowing N0 N0 N0
Other Current Liabilities N0 N0 N0
Subtotal Current Liabilities N4,106 N4,098 N4,904
Long-term Liabilities N0 N0 N0
Total Liabilities N4,106 N4,098 N4,904
Paid-in Capital N25,000 N25,000 N25,000

Retained Earnings (N13,000) N4,413 N24,153
Earnings N17,413 N19,740 N50,330
Total Capital N29,413 N49,153 N99,483
Total Liabilities and Capital N33,519 N53,251 N104,388
Net Worth N29,413 N49,153 N99,483
Page 20
7.7 BUSINESS RATIOS
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard
Industrial Classification (SIC) code 8711, Engineering Services, are shown for comparison.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry
Profile
Sales Growth n.a. 10.13% 38.89% 8.20%
Percent of Total Assets

Accounts Receivable 60.08% 41.65% 29.51% 37.24%
Other Current Assets 0.00% 0.00% 0.00% 41.14%
Total Current Assets 100.00% 100.00% 100.00% 82.48%
Long-term Assets 0.00% 0.00% 0.00% 17.52%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.25% 7.70% 4.70% 35.91%

Long-term Liabilities 0.00% 0.00% 0.00% 11.35%
Total Liabilities 12.25% 7.70% 4.70% 47.26%
Net Worth 87.75% 92.30% 95.30% 52.74%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 70.00% 75.00% 84.67% 100.00%
Selling, General & Administrative 55.20% 59.77% 56.71% 73.63%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.42%
Profit Before Interest and Taxes 21.14% 21.76% 39.94% 2.67%
Main Ratios
Current 8.16 12.99 21.28 1.76
Quick 8.16 12.99 21.28 1.40
Total Debt to Total Assets 12.25% 7.70% 4.70% 51.71%
Pre-tax Return on Net Worth 84.57% 57.37% 72.27% 11.13%
Pre-tax Return on Assets 74.21% 52.96% 68.88% 23.06%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 14.80% 15.23% 27.96% n.a
Return on Equity 59.20% 40.16% 50.59% n.a
Activity Ratios
Accounts Receivable Turnover 5.84 5.84 5.84 n.a
Collection Days 57 60 54 n.a
Accounts Payable Turnover 12.24 12.17 12.17 n.a
Payment Days 27 30 28 n.a
Total Asset Turnover 3.51 2.43 1.72 n.a
Debt Ratios
Debt to Net Worth 0.14 0.08 0.05 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $29,413 $49,153 $99,483 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Page 21
Additional Ratios
Assets to Sales 0.28 0.41 0.58 n.a
Current Debt/Total Assets 12% 8% 5% n.a
Acid Test 3.26 7.58 15.00 n.a
Sales/Net Worth 4.00 2.64 1.81 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 22

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ERUDITE CONSULTS

Upon request, this document is to be immediately returned to Eruditeconsults.

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary ............................................................................................................................................................... 3

Chart: Profit Monthly ........................................................................................................Error! Bookmark not defined.

1.0 EXECUTIVE SUMMARY

1.3 KEYS TO SUCCESS

1. Provide professional quality services on time and on budget.

2.0 COMPANY SUMMARY

2.1 COMPANY OWNERSHIP

2.2 START-UP SUMMARY

Total Requirements N810,000

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) (N455,000)

Total Capital and Liabilities N355,000

Total Funding N810,000

2.3 Company Locations and Facilities

The company is 'project' oriented where each project involves:

3.1 COMPETITIVE COMPARISON

3.2 SALES LITERATURE

3.3 SERVICE DESCRIPTION

4.0 MARKET ANALYSIS SUMMARY

4.1 MARKET SEGMENTATION

Table: Market Analysis

Special facilities 3% 2,750 2,833 2,917 3,005 3,095 3.00%

4.2 SERVICE BUSINESS ANALYSIS

4.2.1 BUSINESS PARTICIPANTS

The major clients within the Territorial Governments include:

4.2.2 COMPETITION AND BUYING PATTERNS

5.0 STRATEGY AND IMPLEMENTATION SUMMARY

5.1 COMPETITIVE EDGE

5.2 MARKETING STRATEGY

5.2.1 PROMOTION STRATEGY

5.2.2 POSITIONING STATEMENT

5.2.3 PRICING STRATEGY

5.3 SALES STRATEGY

5.3.1 SALES FORECAST

Table: Sales Forecast

Table: Sales Forecast

Direct Cost of Sales 2021 2022 2023

Subtotal Direct Cost of Sales N535,525 N648,586 N734,085

6.0 MANAGEMENT SUMMARY

Eruditeconsults employees will be committed to:

6.1 PERSONNEL PLAN

Total Payroll N143,478 N143,478 N152,174

7.0 FINANCIAL PLAN

7.1 IMPORTANT ASSUMPTIONS

Some of the more important underlying assumptions are:

 We assume a strong economy, without major recession.

Table: General Assumptions

7.2 KEY FINANCIAL INDICATORS

7.3 BREAK-EVEN ANALYSIS

Chart: Break-even Analysis

Table: Break-even Analysis

Monthly Revenue Break-even N240,706

7.4 PROJECTED PROFIT AND LOSS

Chart: Gross Margin

Table: Profit and Loss

Pro Forma Profit and Loss

Gross Margin N82,376 N97,200 N152,400

Total Operating Expenses N57,500 N69,000 N80,500

Profit Before Interest and Taxes N24,876 N28,200 N71,900