Houston TexasStrategic Business Plan

The Reclaimed Wood Shop

TABLE of CONTENT

EXECUTIVE SUMMARY

BUSINESS DESCRIPTION

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OPERATIONAL PLAN

MARKETING ANALYSIS

FINANCIAL STRUCTURE

EXECUTIVE SUMMARY

The Reclaimed Wood Shop in a self discovery process developed a business strategic plan focusing on the quality of our products and services in an e�ort to satisfy our client needs. The RWS is a eco friendly company that o�ers reclaimed wood; helping our environment and creating a unique style for our living spaces.

In this strategic business plan you will �nd our company road map for the future to come, discovering our opereational processes our marketing strategies and our �nancial vision to develop a national corporation able to expand its products and services in a short period of time, while demonstrating our commitment to our environment proving sustainable products that impact the future of our community. Our company delivers excellence, clients are our number one priority, they have the same pasion for our enviorment that make us wood lovers.

Within our business plan you will discover our production processes that prove that as a small business we need small upgrades that will not only genarete high pro�t margins, but improve our e�ciency that will increase our product turnover and deliver more diverse products to our clients with less time for production.

Our objective with this business plan is attract inves-tors and future partners to join our team an be part of the reclaimed movement. In this document you will �nd our strenghts our uniquness amoung a variaty of competitors. Also you will recognize the potential of our company that is generating interest

BUSINESS DESCRIPTION

OUR MISSION STATEMENT

The Reclaimed Wood Shop provides unique products that enhance your home and o�ce space environment.

We are an eco-friendly company that brings history to our products by recycling and restoring antique wood. Our excellent customer service is a result of integrating our clients into our processes, they are part of every project creating unique experiences.

COMPANY OVERVIEW

The Reclaimed Wood Shop is a Limited Liability Company founded in 2014 and oper-ating in the city Houston, Texas. We are located at 2102 West 34th St, Houston TX 77018 with an 600 square feet display room. The reclaimed wood shop is owned by Raul Juarez and PARTNER.

Our Team

Raul Juarez & F. Gomez (Owners)

Raul Juarez (General Manager)

Luis Cruces (Administrative Assistant)

Edson Rodriguez (Wood Specialist)

Edgar Martinez (Wood Specialist II)

Johnatan Manzanilla (Wood Specialist I)

OBJECTIVES

Company growth by providing highest quality products at a reasonable price to make them accessible to everyone across the nation.

Reduce cost of good sold by increasing volume of wood orders from suppliers.

Increase in-store sales over our current margin of 30% per year, improve our online sales to provide our customers a unique shopping experience

Become the leading company in the reclaimed wood, kiln dried lumber, timbers and custom millwork.

Expand our business by open-ing another location in the Houston area.

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OUR PRODUCTS

At The Reclaimed Wood Shop Houston we recycle and re-saw reclaimed beams, antique timber, reclaimed wood, wooden pallets and dead trees to transform them into custom beams, �replace mantels, reclaimed wood furniture, barn doors, kitchen island counter tops, shelves, stair treads, wooden corbels - brackets, rafter tails and more. In addition, if requested we can special order reclaimed custom hardwood �ooring, reclaimed oak stair treads, wormy chestnut �ooring, weathered gray hardwood paneling, hand hewn beams, barn wood, reclaimed white oak lumber, antique pine, rough cut and s4s red oak, ash, mahogany, poplar, maple, pecan and hickory boards, western red cedar post, aromatic cedar, Douglas �r and kiln dried pine lumber and timbers.

Reclaimed Beams

Barns, factories, oil �elds and old warehouses serve as one of the most common sources for our reclaimed beams.

Fireplace Mantels

Our reclaimed beams and �replace mantels are premium timbers that are hand-selected from carefully dismantled barns and factories across the United States. With original mortise and tenon holes, checking and patina, these timbers capture the history of our great country and will truly make an impressive statement in your house.

Custom Furniture

Barns, factories and old warehouses serve as one of the most common sources for reclaimed wood for our furni-ture. Those constructed up through the early part of the 19th century were typically built using whatever trees were growing on or near the property. They often contain a white oak, red oak, hemlock, cedar, chestnut, poplar, hickory and long leaf pine timber. Our handmade furniture is produced using high quality materials known for their tremendous strength and durability.

Barn Doors

Exclusive custom doors designed to enhance the style of your home. Our Wooden doors are custom made. We don’t keep doors in stock, we mainly custom design and make each and every door to order. We fabricate barn doors, custom rustic, hand-carved and contemporary doors.

Reclaimed Beams Hand Hewn Beams Bleached Oak Beams Heart Pine Beams Distress Cedar Beams

Hardwood Counter tops & Kitchen Islands

Hardwood counter tops add a distinctive design to your kitchen and Bar. Our unique processing seals the wood against air and moisture, to insure a waterproof surface with minimal maintenance.

Custom Millwork

An integral part of The RWS is the millwork shop which produces handcrafted wooden corbels, rafter tails, wooden brackets, window shutters, and architectural woodwork. This in-house resource, with over 15 years combined experience, provides the company with the unique ability to reproduce historic details that de�ne the seamless blend of old and new in both renovation work and additions to existing homes.

Furniture Restoration

We pride ourselves on ensuring the best quality restoration work possible on your family treasures. With that care in mind, we take pride in the end result of our work and we know you will too. We know how wood works and under-stand how to meticulously repair all of your unique furniture pieces. Our quali�ed craftsmen are ready to help you.

Reclaimed Wood Floors, Ceiling and Paneling Material Our antique wood �ooring is 100% reclaimed from old barns, buildings, and sustainable sources of reclaimed timber. Custom milled to your speci�c needs and design speci�cations, our reclaimed wood �ooring is hand crafted one plank at a time, every time. Species and grades listed represent reclaimed wood �ooring selec-tions available.

Specialty Services

S4S - Wood Surfacing, Wood Distressing, Custom Cutting, Radius Cuts, Cut to Length, Pro�le Sanding, Belt Sanding, Wire Brushing, Furniture Restoration Blue-prints take o� and more. We help you to design and visualize your project.

OPERATIONS PLAN

PROCESS FLOW DIAGRAM

Our production process consist of the following eight steps, if The RWS increase its inventory and upgrade current equipment, it will shift from a maximum hours of completion from our current timing of 250 hours to only 82 hours, increasing our e�ciency by almost 300%. The highlighted steps show areas for improvement.

DIAGRAM DESCRIPTION

The customer initial approach is given by a visit-call to our on site �agship store or a request via our online site.

The current inventory is a time driver for our process, having inventory in stock will help the RWS start production immediately.

The RWS needs to upgrade its current equipment in order to save hours, the wood preparation process consists in join the wood to get straight lines, surface wood, and cutting to line the wood. Upgrading this equipment will reduce hours of production to a 2-4 Hours range.

The assembling process consists in drilling the wood for connections and groove wood edges for joints.

We provide a customer texture and color sampling of the wood requested to make sure our product is in line with customers requirements.

During the painting and texturizing process we distress and sand the wood, then we paint and seal our products. Upgrading our tools will reduce our process time to 2-4 Hours range.

In our acclimatization process we expose our products to di�erent temperatures to prove wood resistance.

Finally we deliver the �nal product to our customers with no cost incurred or customers can pick their product in our location

Wood Preparation(4-8 Hours)

Customer Initial Approach

Product in Stock

Purchase Order to Suppliers

(5-7 Days)

50% of Project Estimate

Local•International Forest Lumber Products•Mason’s Mill and Lumber•Ritter Forest Products Lumber•Tex-Wood Hardwood Lumber•Circle Saw Tools•Imperial Tools •Northern Tools•Sherwin Williams

Regional•Lee Roy Jordan Lumber (Dallas, TX)

National•Salvageantique (Kentucky)•Dave Merritt Jr. (Pennsylvania)

Assembling(24-36 Hours)

Customer Texture and Color Sampling

Painting and Texturizing of

Product (6-8 Hours)

Product Ready for Pick Up or Delivery

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Acclimate (24-36 Hours)

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MARKETING ANALYSIS

MARKETING STRATEGY

The Reclaimed Wood Shop intends to expand its market segment by developing a new line of product for middle class customers willing to purchase reclaimed wood. The strategy is based on lowering our costs by increasing our raw materials inventory allowing the RWS to have in stock products that our customers can purchase while in our stores. Based on the information gather in our analysis the RWS have a need to open a new store in a location for our customers in the memorial city area.

The sections below discuss the analysis of customers (potential and current), context, competitors, collaborators and our company. Also we provide our analysis of the Reclaimed Wood Shop prices, placing, promotion, and products strategies.

COMPANY SWAT ANALYSIS

COLLABORATORS

Local• International Forest Lumber Products

• Mason’s Mill and Lumber

• Ritter Forest Products Lumber

• Tex-Wood Hardwood Lumber

Circle Saw Tools

• Imperial Tools

• Northern Tools

• Sherwin Williams

Regional• Lee Roy Jordan Lumber (Dallas, TX)

National• Salvageantique (Kentucky)

• Dave Merritt Jr. (Pennsylvania)

Strengths Weaknesses

Opportunities Threats

In less than one year of operations the Reclaimed Wood Shop has devel-oped strong partnerships with di�er-ent local, regional, and national suppliers creating trust among their business to business operations and providing constant communication in an e�ort to serve our clients.

• Customer Service Oriented Company• Wood Detailing Specialists • Product Quality, unique texturizing• What we promise, we deliver

• Long production time• High prices due to low volume orders• Not enough inventory in stock

• Become a one stop shop where we can design, produce and install products• Increase our number products• Open a new location• Grow our online store

• Competitors trying to imitate our products with low quality and low prices• Wood price volatility

OUR CUSTOMERS

Customers are the number one priority at the Reclaimed Wood Shop, we had created a client �rst policy unique in our industry. Customers opinion is all that matters at the RWS, that’s why we include them on our processes. We include customers in on our design process by connecting them with our reclaimed wood experts that create their own customized products. At the RWS, customers are part of the production process, where they can oversee their project. Customers at the RWS see, smell, and love reclaimed wood as we do.

The RWS current customers are Houston residents within a population age ranging from 40-54 years old. Our customers have an average income(77024, 77005, 77401, 77450, 77079) of $115,600 a year that is twice as the average household income within Harris County.

The Woodshop of Texas, o�ers reclaimed wood �ooring and wood beams, they are located in Texas City at the south east Hous-ton metropolitan area.

M&M Lumber, located at the south west Houston area they o�er reclaimed �oors, timbers, beams and mantels. Reclaimed wood is M&M lumber intent to penetrate a di�erent market due to his primary roll as lumber company.

Historic Houston, a company that specializes in reclaimed wood from historical houses from deconstructions. They o�er reclaimed wood and restored antique furniture to their clients.

Waynes Barn Wood, o�ers antique beams, �oors , doors, and �replaces. Most of Waynes products are reconstructed pieces from historical buildings.

Nadeau Furniture with a Soul, located in Katy, TX, they o�er reclaimed furniture (table and chairs) and �oors.

High Fashion Home, o�ers antique appliances and reclaimed wood such as chairs, tables, and bookshelves . Their main products as mentioned previously are vintage appliances.

COMPETITORS

FINANCIAL STRUCTURE

SALES FORECAST

We project our forecast based on our current sales, as described on our projections we determine that if the Reclaimed Wood Shop lower his cost by increasing its inven-tory our materials will decrease by 15% increasing our pro�t margin by almost 5%.

FINANCIAL MILESTONES

Increase inventory by 40% to be able to lower costs and have in stock �nished goods for our customers.

Upgrade our current equip-ment (woodplanner, table saw, jointer and sanding equip-ment) to be more e�cient to provide a faster service to our customers.

Optimize our online presence that give us the capability of sell online with a friendly user interface for our customers.

Bring more sales representa-tives on board to increase our sales.

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FUTURE CASH FLOWS

As performed in our annual sales forecast we analyzed our future cash �ows with two possible scenarios. The �rst scenario is with the increase of inventory that will lower our variable costs increasing our pro�t margin. The second scenario is based on the assumption that we will contin-ue with not enough inventory to satisfy our customers demands.

As showed in both scenarios our pro�t margin will decrease among the course of this projec-tion, but our volume in sales and cash will increase.

This projections provide inves-tors with a clear exempli�cation of how the reclaimed wood industry delivers high margins of pro�t with low variable and �xed costs.

Variable CostsRaw Materials UnitsRaw Materials Cost

FumigationPaints

Fixed Costs Rent

LaborTotal COGS

Sales/RevenuePro�t

Pro�t Margin

Variable CostsRaw Materials UnitsRaw Materials Cost

FumigationPaints

Fixed Costs Rent

LaborTotal COGS

Sales/RevenuePro�t

Pro�t Margin

FY 2015-2016 Future Cash Flows with inventory increase, Cetis Paribus

FY 2015-2016 Future Cash Flows with Current Scenario, Cetis Paribus

OUR REVIEWS

Thank You,-.The RWS

2015