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HomeMy WebLinkAboutBusiness Plan - Harkins DynamicBusiness Plan Harkins Dynamics- Snow Removal and Landscaping Company January 2025 COVER PAGE Business Name: Harkins Dynamics Owner: Jacob Harkins Contact Information: (406)577-4554 Location: Bozeman, MT EXECUTIVE SUMMARY Our snow removal and landscaping company has grown to around 60 current snow removal accounts. This year, our focus is on earning glowing reviews and letters of recommendation to secure contracts with HOA property management companies, hotels, and restaurants. We differentiate ourselves through immediate communication, reliability, and a strong customer service focus. Our growth strategy for summer services includes mailing 60,000 flyers across the region ( Manhattan, Churchill, Bozeman, Big Sky, Livingston, and Belgrade) with QR codes, service descriptions, and pricing at a quick glance. This campaign is projected to generate between 300 and 600 potential accounts, leading to monthly revenues of $16,000 per two-person crew. To support this growth, we are seeking a $100,000 loan to invest in equipment and additional vehicles. This strategic investment will allow us to scale operations quickly, establish a strong brand presence, and build on existing community connections to secure larger contracts. With a clear plan to reinvest profits into equipment, we aim to become one of the largest snow removal and landscaping companies in the area within five years. ORGANIZATION/OPERATION PLAN A. Mission Statement and Business Goals Mission: To provide reliable, efficient, and customer-focused snow removal and landscaping services that stand out for exceptional communication and attention to detail. Goals: a. Secure glowing reviews and letters of recommendation. b. Achieve $16,000+ monthly summer revenue per crew by May 2025. c. Expand to large contracts, including HOA property management and commercial accounts, within 2 years. B. Business Description Summary We provide snow removal and landscaping services with a focus on employee satisfaction, efficacy and comfortability, fast response times, and consistent communication. Our operations are tailored to meet residential and commercial needs in Bozeman, Belgrade, Manhattan, Big Sky, and Livingston. C. Date Founded and By Whom Founded in 2023, by Jacob Harkins, with a vision to offer the most efficient services in the valley. D. Experience I have been working in this industry for almost a decade under the table for other outfits throughout the valley. Most prominently for Elements design owned and operated by Jesse Danford. He did large HOA maintenance, and has the MSU snow removal contract which is where I spent most of my time learning the ends and out of the business. I also studied business and sociology at MSU, while playing lacrosse. I eventually became captain of the MSU lacrosse team and led my team to the national championship for the first time in the team's history. This taught me how to manage people, from kids my age to professors 3 times my age. I have been able to put these experiences in my daily life. I find myself being able to carry conversations with anybody about most topics. E. Passion What I love most about working in this industry and what drew me to it in the first place was simply the equipment. From a young age, my mother has stories of how she would put me on small carnival rides, where most children were just enjoying the ride. I was trying to get out of my seat trying to figure out how the ride worked, looking under the ride, watching the mechanics and hydraulics. I have always loved working with, and around large heavy equipment, and smaller equipment specifically designed for a task like mowers. I grew up thinking that I would never be the kind of guy who owned skid steers, tractors, or loaders of any kind. I always thought it was an unattainable goal. That was until I worked for people in their early to late 20s through high school and college that were pretty normal individuals, who owned quarter million dollar wheel loaders. Suddenly, my goal of owning equipment was not so far away, and was obtainable through a correctly built vehicle such as Harkins Dynamics. My goal is not income, or status, rather it is the idea and goal of owning equipment such as skid steers, wheel loaders, tractors, and large commercial mowers. The equipment is my passion. F. Why This, vs that a. The company's strategy is to maximize a single person's efficiency through the right equipment. This can be explained simply by going into depth about the company's strategy to minimize employee and insurance overhead, by increasing upfront cost of equipment to maximize comfort, and efficiency which I believe go hand in hand. The company's strategy is to stay as lean and efficient as possible. This section will have quite a few parts and will be fairly long, as this strategy will be how we grow to be far more profitable than our competitors. This will happen by focusing on employee efficiency and comfortability, rather than volume of business. If we focus on the volume of business, like some competitors have, we will have to buy smaller less expensive equipment that is significantly less efficient to place more employees in these pieces of equipment which will increase overhead in all aspects. i. Why are we looking at certain equipment? Efficiency. Let's look at two lawn mower manufacturers- Cub Cadet vs Ferris. Cub Cadet produces mid grade commercial and residential mowers at a slightly more affordable price compared to the Ferris commercial grade mowers. ii. Mower speed. A cub cadet tops out around 8 MPH max speed and has around 25 HP. This would result in lower overall cutting speed as the mower will not be able to mow at that given 8 MPH in most conditions. The Ferris has double the horsepower, and a top speed of 12 MPH. A 40% difference in cutting efficiency favoring the Ferris. The increase in horsepower means the Ferris will be able to mow at that given 12 MPH in almost any situation from wet early morning grass, to larger land clearing jobs where the lot has not been touched all season. iii. Deck cutting width is also a huge part of a mower's efficiency. Cub Cadet has mowers maxing out at 60 inches vs a Ferris which maxes out at 72 inches. This is an 18% more efficient cutting width favoring the Ferris. iv. Why Ferris over other high end commercial grade manufacturers? Ferris has a patented suspension system that will make cutting at 12 MPH more comfortable. This will allow an individual to consistently travel at this speed, with less breaks, and less body wear and tear. v. Comfortability is a huge part of this strategy. Let's take a direct comparison of a competitor's way of doing my HOA sidewalks vs the way I did the sidewalks when I worked for the company that had this contract. The competitor uses dedicated sidewalk snow machines called an SR MAG, a BOSS product. These machines have no cab or heating and no comfort options besides a cup holder which during a demo, my coffee spilled absolutely everywhere. When I did these sidewalks, we used a Bobcat L28 mini loader. They have a cab with heat and AC with a Bluetooth radio. I was able to put in long days even in the coldest days of winter while it was still snowing without needing any breaks besides a quick trip to the bathroom. I was comfortable, happy, and was significantly more enjoyable than if I used the SR MAG. I was happy to show up the next day after a large storm to do it all over again. The time for completion of the job is roughly the same between the two. The SR MAG can only be used during winter, whereas the L28 can be used all year around. The L28 is almost twice the cost of an SR MAG, but can be used twice as long throughout the year. This comparison is one of many not described in this plan. vi. How can we minimize employee overhead? With the right equipment. Take the same competitor's way of removing snow piles from my HOA compared to how we did it when I worked for the company that did it. The competitors' way of doing it was with a Skid steer attached with a bucket, a small dump trailer and a truck. I watched as it took a skid steer around 15 minutes to load this trailer, while another employee sat in the truck and waited and then drove it to a nearby site to unload. These piles probably took around 5 trailer loads. There are 8 piles in my HOA meaning it took a crew of 2, 10 hours to clear my HOA of piles. I know that they are getting paid around 30 dollars per hour, meaning it costs at least 600 dollars in payroll to finish my HOA. When we did this HOA, we used a single wheel loader attached with a bucket. It took that single loader operated by a single guy around 3 hours to do the same job. This individual was getting paid around 40 dollars per hour meaning it would cost at least 120 dollars to do the HOA. These figures do not include taxes or fuel. Let's take that same situation, but look at the individual equipment. The competitor used a mid sized skid steer, a small dump trailer and a ram 2500 single cab truck. The cost of this set up would cost around 120,000 dollars on the conservative side. The wheel loader we used was a John Deere 544p which costs around 250,000 dollars brand new off the lot. This is a 70% difference in price, but over 100% more efficient in time, and over 130% more efficient in labor time. The loader with the right snow removal setup would also be significantly more effective than a skid steer, while also being able to travel at a safe road speed between sites. Whereas the skid steer will need to be hauled around by a truck and trailer. There are endless scenarios not described in this plan. vii. Needing a truck to haul equipment? A truck, with the right set up can out perform a top performing skid steer in time, cost, and efficiency. With a skid steer set up for snow removal will require a truck and trailer to be hauled around. This would mean that the truck can not be used as a plow truck. I have done a direct comparison of an apartment complex snow removal of the parking lot with my truck set up, vs a skid steer set up. The time started when we left the shop, and stopped when we got back to the shop after the lot was completed. It took me around 45 minutes to complete this route. It took the skid steer an hour and 15 minutes to complete the same route. The truck is 50% more efficient while also being almost 45% more cost effective. The skid steer set up with truck cost is around 160,000 dollars on the conservative side, whereas my truck cost with the plows is just under 100,000 dollars. viii. Insurance cost is based on payroll. With this strategy, I will be able to do more with less meaning, that not only will payroll be less, as will the cost of insurance. b. Overall, my plan is to focus on employee efficiency and comfortability. I will do this by spending more on upfront costs. A comfortable employee will show up more often, on time, with a good attitude which will show in his work, and client face to face communication. Turn over rate will be the lowest in the valley. Client satisfaction will be near 100%. Equipment downtime will be less than 5% as we will buy new, and have a tedious preventative maintenance schedule. c. I have seen my competitors grow very quickly over the last couple of years. With their growth, they have increased their overhead astronomically. I believe that I could do the same volume of business with a fraction of the employees and equipment. G. Location and Facility Headquartered in Bozeman, MT, our operations are based from a centralized location to allow efficient servicing of surrounding towns. H. Legal Structure / Form and Ownership The company operates as an LLC owned by Jacob Harkins. I. Key Officers and Management Team Owner and Manager: Jacob Harkins Operations Support: Eddy Harkins starting April 2025 J. Personnel a. Current employees: Jacob Harkins, Eddy Harkins, Sam Comini . b. Future employees: High school students attending MSU in summer 2025 ( Talus Arrigo, Aiden Kenison, Trygve Braun, Randy Harkins). c. The jobs i. Manual Labor will be the bulk of what these young men will do, including me for the foreseeable future. Riding or pushing mowers, trimming sidewalks, hedges, and edges. They will also facilitate face to face interactions with clients, neighbors, and bystanders to maintain a strong community relationship. ii. Social Media manager- This job will be for Randy, who will edit, and post videos, pictures, and updates on the company social media pages and websites to maintain a strong and consistent presence online. K. Production/Services Methods a. Snow removal: Parking lots, sidewalks, and driveways for residential and commercial clients. b. Landscaping: Weekly maintenance, including mowing, trimming, and debris removal. c. Equipment: Modernized fleet of trucks, trailers, mowers, and hand tools. L. Accounting and Recordkeeping Utilizing QuickBooks for seamless invoicing, expense tracking, and financial reporting. M. Billing and Collection Process Clients are billed monthly, with options for electronic payments through the company QuickBooks or by check. Timely follow-ups ensure consistent cash flow. N. Insurance Comprehensive liability and workers compensation insurance to protect employees, clients, and equipment. MARKETING PLAN A. Industry Trends Snow removal and landscaping services are in high demand due to Montana’s harsh winters and growing population. Clients seek reliability, professionalism, and ease of communication. B. Target Market Description Primary clients include: a. HOA property management companies b. Hotels and restaurants c. Residential homeowners in Bozeman and surrounding areas C. Competitive Analysis Competitors lack consistent communication and a clear brand presence. Our competitive edge lies in: a. Immediate responses to calls and texts. b. A distinct company brand (red trucks and equipment). c. Professional, client-focused employees who speak and care as if they were the owner. D. Distribution Channels Marketing via mailed flyers, a user-friendly website, and word-of-mouth referrals. The QR codes on flyers direct potential clients to our services and pricing. E. Pricing Strategy Snow Removal: Competitive pricing based on square footage and service needs. Landscaping: $100 average per weekly service per property, with a minimum of $70 with scalable pricing for commercial contracts. F. Promotional Plan a. flyers: 60,000 mailed flyers with QR codes and pricing. b. Referrals: Leverage existing high-profile clients for recommendations. c. Branding: Distinctive red trucks and trailers for easy recognition. d. Website: Easy-to-navigate platform showcasing services, pricing, and client testimonials at a glance. ● Business Objectives ○ Expand Client Base: Increase the number of accounts by 100% within the next 12 months through targeted marketing and leveraging community connections. ○ Secure Large Contracts: Obtain at least three contracts with HOAs, property management companies, and commercial establishments within the next year. (Peak properties, alpine property management, legacy properties, etc.) ○ Enhance Brand Recognition: Establish a strong brand presence in the region, making our company synonymous with quality snow removal and property maintenance services. ● Services Offered Snow Removal: Residential and commercial snow plowing, shoveling, and de-icing services. We provide reliable and efficient snow removal services for both commercial and residential properties to ensure safety and accessibility during the winter months. Our scope of services includes: ● Driveway and Parking Lot Clearing: ○ Removal of snow from driveways, parking lots, and other paved surfaces. ● Sidewalk and Walkway Clearing: ○ Safe and thorough removal of snow to prevent slips and falls. ● Ice Management: ○ Application of de-icing agents such as sand to minimize icy conditions. ● Snow Hauling: ○ Relocation or removal of excess snow from your property. ● Customized Triggers: ○ Tailored service based on snow depth thresholds (e.g., 1-inch, 2-inch, or 3-inch triggers). ● Emergency Snow Removal: ○ Quick response for unexpected snowstorms or urgent needs. Land Maintenance: Lawn mowing, trimming, landscaping, and seasonal clean-ups during the summer months. Our professional lawn maintenance services are designed to keep your property looking its best year-round. Our Scope of services includes: ● Mowing and Edging: ○ Regular trimming and edging to maintain a clean and polished appearance. ● Weed Control: ○ Targeted treatments to reduce unwanted weeds and promote healthy turf growth. ● Fertilization: ○ Custom fertilization plans to provide essential nutrients for your lawn. ● Seasonal Cleanup: ○ Removal of leaves, branches, and debris to maintain a neat appearance. ● Aeration and Overseeding: ○ Enhancing lawn health and appearance by improving soil conditions and thickening grass. ● Custom Schedules: ○ Flexible maintenance plans tailored to your property’s unique needs. Commercial and residential Tree Care: Healthy, well-maintained trees can enhance the beauty and value of your property. Our tree care services include: ● Tree Pruning and Trimming: ○ Professional trimming to promote healthy growth, improve aesthetics, and ensure safety. ● Tree Removal: ○ Safe removal of dead, diseased, or hazardous trees. ● Stump Grinding: ○ Complete removal of unsightly stumps to restore your landscape. ● Tree Health Assessments: ○ Diagnosis and treatment of tree diseases and pests. ● Emergency Tree Services: ○ Rapid response for storm-damaged or dangerous trees. ● Planting and Transplanting: ○ Selection and installation of trees that complement your property Sprinkler and irrigation installation and repair: Our sprinkler and irrigation services ensure your landscape remains healthy and vibrant while conserving water. Our offerings include: ● System Design and Installation: ○ Custom sprinkler and irrigation systems tailored to your property’s layout and needs. ● Seasonal Maintenance: ○ Spring activation and winterization to prepare your system for seasonal changes. ● Repairs and Upgrades: ○ Troubleshooting, repairing leaks, and upgrading systems for optimal performance. ● Smart Irrigation Solutions: ○ Installation of smart controllers and sensors for water-efficient irrigation. ● Backflow Testing and Prevention: ○ Ensuring compliance with local regulations and preventing contamination. ● Zone Adjustments: ○ Fine-tuning zones to provide consistent water coverage across your landscape. ● Market Analysis ○ The Bozeman, Belgrade, Manhattan, Big Sky, and Livingston areas experience significant snowfall, creating a consistent demand for snow removal services. Additionally, the growing population and expanding residential developments present opportunities for land maintenance services. The competitive landscape includes several established providers; however, gaps exist in customer service quality and responsiveness, areas where we excel. There are a large number of small companies within the valley who are doing what Harkins Dynamics do. There are only a handful who are doing what Harkins Dynamics will be doing in 2 years, and only a couple who will be doing what Harkins Dynamics will be doing in 5 years. In five years, the biggest companies with the biggest contracts, and most businesses are those that have a huge presence on social media (Facebook, X, TikTok, Instagram, Nextdoor) as well as an easy to use, non-cluttered website. The biggest of these companies will have the nicest matching equipment from color, to the size and location of wrapped logos. Not one of any of the current power houses in the valley do each one of these the way we will. What sets us apart is that we get the little aspects of business. We do the little things right. ● Marketing Strategy ○ Direct Mail Campaign: Distribute 60,000 flyers across targeted regions at an estimated cost of $15,000. Each flier will feature a QR code linking to our website, and @’s referring to our abundance of social media pages. company information, and a list of services with transparent pricing. Anticipating a response rate between 0.5% and 1%, we expect to acquire 300 to 600 potential accounts, and around 2% of those flyers will give us a call. With one crew of two people, we can service between 40-50 accounts per week during the summer, or around 50 accounts per snowfall during the winter. ○ Online Presence: Enhance our website for user-friendliness and search engine optimization (SEO) to attract organic traffic. Implement social media marketing to engage with the community and showcase our work. Google, Facebook, TikTok, Instagram, Nextdoor, etc. ○ Referral Program: Encourage satisfied clients to refer new customers by offering incentives such as discounts on future services. ● Operational Plan ○ Summer Operations (April - October): ○ Crew Structure: ■ First Crew: Two members including myself unpaid, servicing between 8-10 houses per day or 160- 200 houses a month at an average of $100 per house, generating approximately $16,000-20,000 in monthly revenue. Payroll expenses are estimated at $4,000 per month for one person working 8 hours a day at 20 dollars per hour. (Does not account for payroll taxes or workers comp) ■ Second Crew: An additional two members, including planned hires, expected to generate similar revenue with payroll expenses around $8,000 per month. ■ Each year, the projected monthly revenue is increased by the ability of an extra crew of two people. Reflects payroll of 8000 for both without including taxes and other expenses. (one extra trailer, truck, mower, trimmers, blowers, 2 crew, etc.) ● Equipment Requirements: ○ Two landscaping trailers: $9,590 (x2 Diamond C PSA utility trailer- $4,795) ○ Two commercial-grade mowers: $40,728 (SRS™ Z3X Soft Ride Stand-On Mower- $16,829)(ISX™ 3300 Zero Turn Mower- $20,899)(x2 Toro 30" TurfMaster HDX- 1500 x 2 = 3,000) ○ Additional truck (financed): $5,000 down payment, $1,000 monthly installments (Chevy 3500 Duramax- $62,000) ○ Marketing campaign: $16,619.39- USPS direct mail 60,000 flyers(13,503.53) Printer (Brother DCP-L5510DN- 389.99) (Brother Ultra High Yield Toner Cartridge $208.99 X10 = $2,089.90)( Multi Use printer paper- $52,99 x 12= $635.88) ($3,115 in total) ○ Trimmers/blowers $1,707 (Stihl FS131 R- $529.99 x 2 = $1,058) (Stihl BR 800 X Magnum $649) ● Financial Plan ○ Loan Amount Requested: $100,000 ○ Allocation of Funds: ■ Equipment purchases: $57,025 ■ Marketing campaign: $16,619.39 ■ Working capital and contingency: $26,355.61 ○ Revenue Projections: ■ Summer Season: ● One crew: $16,000 monthly revenue, $4,000 payroll ● Two crews: $32,000 monthly revenue, $8,000 payroll ○ Winter Season: ■ Existing 50 accounts for around 12,000-13,000 monthly revenue with plans to expand through new larger contracts or adding another 50 residential contracts per year/ per crew through the flyers. ○ On the cash flow ■ Each April, and September there are large expenses. These expenses consist of buying, or financing equipment (down payments) during these months in preparation for the coming season. (winter/Summer) ○ Expenses ■ September 2025- Plows for the second truck bought with the loan. (Boss DXT 9,2 and BOSS Drag Pro 180Z- $30,000)(down payment on a Bobcat Toolcat with Muskox Blower- $10,000) ■ April 2026- A third truck financed with a $10,000 down payment. A third mower, $20,000, bought with cash. A third trailer $10,000 bought with cash. ■ Each consecutive Month will be very similar. Equipment purchased will always be financed at 3 years for 0% interest. Trucks Purchased will be at 5 years and anywhere between 2-5 percent interest. These months also carry between 10-15 thousand dollars in advertising for more marketing campaigns. ■ I have a discount code for any Chevy vehicle. I get these vehicles at cost. ● Growth Strategy ○ Leverage Community Connections: Utilize relationships with influential community members to gain insights and introductions for potential contracts. For instance, a connection with the hospital’s Chief Nursing Officer could lead to bidding on a substantial snow removal contract. ○ Brand Differentiation: Establish a distinctive brand identity through consistent use of company colors on trucks, trailers, and equipment, making our presence easily recognizable. ○ Employee Training: Implement comprehensive training programs focusing on service quality and customer interaction to ensure all team members uphold the company’s standards and effectively address client concerns. ● Conclusion ○ With a strong foundation built on employee satisfaction, efficiency, and comfortability, Harkins Dynamics is poised for significant growth in the snow removal and land maintenance industry. The requested $100,000 loan will facilitate the necessary expansion of our operations, enabling us to secure larger contracts and increase market share. Our commitment to reinvesting profits into the business underscores our dedication to long-term success and profitability.