Business Proposal: Cross Fencing

1369 Words3 Pages

I will provide a fencing service for the local farmers and ranchers in the Dewey and Ziebach county area, my business is called Cross Fencing. We live in an agricultural community and our weather can be unpredictable. Our weather can be unpredictable, we can have anything from horrible snow storms to terrible thunderstorms to over 100 degree weather, which can damage fence. Most people do not have time to work in weather like this, but I will be available after these weather occurrence happen to fix your fence. I am young, hardworking, and have time to fix your fence! Product and Service: I will be providing a fencing service in Dewey and Ziebach counties. I will start out being the main worker; as my business increases, I plan to hire 1-3 …show more content…

I plan on hiring someone part time for the months March through September, at $12.50 an hour. I will have a wide variety of services I can perform, with a wide range of prices to suit the needs of my customers. I will charge $1.30 per foot to put in a 3 barbed-wire, all steel posts fence, $1.40 per foot to put in a 3 barbed-wire all wooden post fence, for a 3 barbed-wire fence wooden or steel it will be an extra charge of $0.5 per foot. I will also repair old fence $0.70 per foot. I will also be charging $1 a mile for the delivery of the supplies to the job sight. I plan on fixing 8 miles of fence each month, except for the months of December through February. The benefits to my customers are that they can leave their fencing needs to me, and do more important things with their time. Business may slow down when the calf and crop markets decrease, but some people will always be profitable enough to use my service. I will be the soul provider for this service in these two counties. I will provide my service locally and I will …show more content…

My estimated gross sales will total $380,160.I may need to hire somebody part time, for around $12.50 an hour, which costs $1800 per month and is 5.7% of my gross sales. Since they are part time, I will be paying them more money so they can insure themselves. I will only have to pay for the insurance of my business, which will be around $265 per month. My biggest capital expense will be buying a pickup, trailer, skid steer, and Ranger UTV, which will be $54,500. I will take a loan out from the bank, on which I will have to pay interest. I will pay $909 per month in principle payment plus interest of $273 per month, which should take me 5 years to pay off, it totals 2.9% of my gross sales. My biggest operating expense will be buying my raw materials which will be $24,520 per month, which totals 58% of my gross sales. My diesel expense will be $500 per month, it totals 1.6% of my gross sales. I will also have to pay insurance on my equipment which is $265 per month, and totals 0.9% of my gross sales. For repairs and maintenance it will cost $50 per month for an oil change or to buy parts for a certain machine. I will charge $1.30 per foot to put up a steel post fence, my expense will be $0.70 per foot, plus if I hire somebody part time. I will charge $1.40 per foot to put up a wooden fence, my expense will be $0.85 per foot, plus if I hire somebody. To repair old fence I will charge $0.70 per foot, my expenses will depend on how

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