Sheet Metal Fabrication Service Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Sheet Metal Fabrication Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Sheet Metal Fabrication Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Sheet metal fabrication services are always in demand given that many of the products that they produce are used for construction as well as for specialized product fabrication. As such, these businesses are able to generate substantial gross margins from the production of custom parts as well as roofing from sheet metal components. Typically, the gross margin generated from each sale usually produce margins of 50% to 75% depending on the type of product being manufactured at the facilities. The barriers to entry for a new sheet metal fabrication service are considered to be moderately low. Typically, these businesses have a startup cost of $150,000 to $500,000 depending on the type of equipment that will be purchased in conjunction with providing sheet metal fabrication. The additional underlying costs for these businesses can be somewhat significant given that they require a number of employees and they have high energy usage. However, the gross margin generated from sales almost always able to cover all operating expenses plus any underlying debt service that is associated with the business. In lieu of directly purchasing much of the equipment that is used for sheet metal fabrication – some entrepreneurs will choose to be specific equipment in order to keep their capital expenditure or cost down.
Given the high gross margins, strong economic stability, and significant assets – almost all financial institutions are willing to provide a significant amount of capital support for a sheet metal fabrication business. Of course, a sheet metal fabrication service business plan is going to be required. This document should have a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Within the business plan, a substantial amount of information regarding the targeted demographics should be included as well. This includes discussing the types of businesses will be targeted, their annual revenues, their annual expenditure with the sheet metal fabrication service, number of employees, and their target market radius.
Usually, the sheet metal fabrication service has a target market radius of 100 miles. However, these businesses can readily expand by offering their services on an ongoing basis. This allows some sheet-metal fabrication companies to operate in a nationwide capacity. Usually, the most common types of companies that you sheet-metal fabrication services or construction businesses, real estate developers, roofing contractors, painting contractors, and related businesses where sheet-metal is frequently used as part of their overall contracting or manufacturing processes.
A sheet metal fabrication service marketing plan should be developed as well. This marketing plan should feature a number of different components. First, an online component should be developed that showcases the proprietary website that will be developed by the sheet metal fabrication service in order to have people find the business quickly over the Internet. As many small businesses and large businesses alike now use the Internet to source service providers.
The company’s proprietary website should feature information regarding services rendered, time for two delivery, hours of operation, preliminary pricing information, as well as relevant contact information. This website may also feature e-commerce functionality where individuals and businesses can upload CAD produced files so that the company can produce sheet-metal components to exact specifications of customers. This functionality is now becoming more commonplace among many businesses and as such the sheet metal fabrication company can have a significant competitive advantage by end to grading these types of functions into its website.
Presence on social media is not necessary for you sheet-metal fabrication service but it can help boost visibility among individual hobbyists as well as smaller contractors. There are a number of communities on major social networking platforms such as FaceBook, Twitter, Instagram, and Google+ where people that have shared interest regarding hobbies or their careers as contractors can discuss relevant topics. As such, a presence on social media can help boost visibility in the business if the owner operator decides to become part of these online communities.
Once the online component has been developed it is time to produce the marketing aspects for traditional marketing operations. This includes sending flyers and brochures specific to the demographics that were discussed above. Again, an average target market radius for a new sheet metal fabrication services usually around 100 miles. As such, lists can be purchased so that these companies can be effectively targeted. There are a number of online companies where the directories of specialized businesses can be acquired for a relatively low fee.
A sheet metal fabrication service SWOT analysis should be produced as well. As it relates the strengths, these businesses are relatively immune from negative changes in the economy as manufacturers and contractors are going to continue to need sheet-metal components as part of their overall operations. The gross margin generated from sales and services usually allow these businesses to remain profitable and cash flow positive at all times. For weaknesses, there are a number of local, regional, and national level competitors that the business is going to need to deal with on an ongoing basis. Again, there are number of ways at the sheet metal fabrication service can effectively differentiate its operations from those of competitors. It is imperative that the operator be able to provide just-in-time delivery and affordable pricing as it relates to all fabrication services rendered. For opportunities, one of the quickest ways that these businesses are able to expand is through online sales platforms. Additionally, a sheet metal fabrication service can develop additional locations so that there target market radius is expanded greatly. There are no known sense at this time that would impact the way that these companies conduct their operations.
A sheet metal fabrication service company can be a very lucrative small business investment given the high gross margins generated from specialty services. A significant portion of the capital that is usually used to develop these businesses consist primarily of tangible equipment. As such, the business does not go as planned then a significant portion of the investment can be recouped when the tangible equipment is sold to a third party. These businesses are less subject to automation and other industries within the construction, contracting, and manufacturing markets given the unique nature of the products that they produce. As such, an owner operator of a successful sheet-metal fabrication company can expect a very strong return on investment as it relates to their equity.