555 Toms Creek Church Road
Pilot Mountain, NC 27041
February 12, 2017
Allegacy Federal Credit Union
1975 S Hawthorne Rd
Winston Salem, NC 27023
To whom it may concern:
Hello my name is Seth Brim, part-owner of Fescue & Sons Yard Care, a business that provides
top quality residential and commercial yard care service. Fescue & Sons targets middle-class
homes in rural areas, where families find themselves lost in the time needed to place in their
lawns. Starting out just a few years ago, with very little equipment, and several customers has
allowed the company to grow. On behalf of Fescue and Sons Yard Care, I am requesting a 6 year
$95,000 loan to pay for newer equipment, along with looking to hire more employees. Over the
last three years, Fescue & Sons have grown in net income by $5,000 each year.
After the equipment is purchased, jobs will move faster, employees will feel confident using the
new equipment, and more time will be spent speaking with potential customers. These purchases
will give the company an improvement and advantage on the job compared to other businesses.
Homeowners will feel more confident, knowing their homes are being improved with the best
equipment around.
At Fescue & Sons, we realize the importance of quality for our customers. With several
competitive companies, it’s valuable to stay ahead and up to date with equipment and service.
Upgrading in equipment keeps us ahead and unthreatened from the competitors around us. Our
company, strives to be the best in the area while looking to find new customers each year. With
this loan, we will be able to attract more customers to our business. Attracting customers will
allows us to have more contracts, and improve our income yearly.
Our plan as a company, is to increase demand with the help of great employees and even better
equipment. With our success carrying with us in the future, we realize that such an investment
will take us further. Thank you for your time, and we hope that Allegacy Federal Credit Union
will see this opportunity as a building point for our company.
Sincerely,
Seth Brim
Executive Summary
Fescue & Sons Yard Care is a residential lawn care service targeting rural middle-class homes with large yards which the owners cannot care for well on their own. Over the
last three years, the prices for homes in the nearby urban area have skyrocketed. Many families in our targeted income bracket have chosen to buy larger parcels in the nearby
countryside, rather than spending huge amounts on small lots in the city. However, many of them are unprepared for the level of care such large lawns require, and end up with
small gardens near the house, and overgrown acreage further away.
Fescue & Sons Yard Care will start out as a partnership, owned jointly and equally by Red and Kikuyu Fescue. For the last five years, Red has worked as head landscaper at
ABC Landscaping. He now has the design and lawn-care expertise, as well as the management experience, to begin his own business. Kikuyu is a graphic designer and master
gardener. Her skills will be extremely useful in creating the look of our marketing materials, from brochures to business cards to newspaper ads. She will continue to work in her
current job while Red manages the day-to-day details of the company.
Over the first summer, Red will be the primary employee, with some part-time help from his son, Rye. Rye has worked with Red at ABC landscaping and will continue to help
out at Fescue & Sons in the summers.
In the coming spring, we will hire an additional landscaper for seasonal work, and may hire another if demand warrants. In mid-summer of Year 2 we will purchase additional
equipment, including a second trailer or used truck.
As a business with largely seasonal profits, we will use the high summer revenues to support the business through the winter’s leaner months. We will have a modest profit in
the first year, but expect profits over $8,000 in the second fiscal year and over $10,000 in the third year.
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1.1 Objectives
Our objectives for the first three years of operation are to:
• Create a service-based company whose primary goal is to exceed customers’ expectations.
• Obtain contracts for yard service in at least 30 different residential homes.
• Increase our number of clients served by 3% per year.
• Develop a sustainable home business, being maintained by its own cash flow.
1.2 Mission
The mission of Fescue & Sons Yard Care is to provide top-quality residential and commercial yard care service. We will strive to attract and maintain customers by providing
services in the most timely manner to provide 100% customer satisfaction. Our services will exceed the expectations of our customers.
1.3 Keys to Success
1. Experienced landscaper with excellent customer-service skills
2. Commitment to high quality and professionalism in every task and encounter
3. Small size, allowing direct management oversight of every project and employee
Company Summary
Fescue & Sons Yard Care will offer residential and commercial lawn care service, including lawn cutting, trimming, edging, and removal of the clippings. Most of our customers
will use our services once every week or every two weeks, depending on the amount of rain we get. In this area, lawn care needs vary greatly depending on the weather, and
while this year is likely to be dry, future years will probably see a return to normal rain levels, meaning faster-growing grass and weeds and more frequent lawn care.
2.1 Company Ownership
Fescue & Sons Yard Care will start out as a partnership, owned jointly and equally by Red and Kikuyu Fescue. As the business grows, the owners will consider re-registering as a
limited liability company or as a corporation, whichever will better suit the future business needs.
2.2 Start-up Summary
Fescue & Sons Yard Care’s start-up costs include:
• Home office equipment: file cabinet, computer system (including printer, scanner, and fax software)
Long-term assets:
• Vehicle: The owners are contributing a 1998 Toyota pickup to the business
Short-term assets
• Two commercial mowers
• Trimmer: used to reach grass around trees and other hard to reach areas
• Edger: cuts grass that grows over the border of the lawn and driveway
• Blowers: blasts stray clippings that litter the sidewalk and driveway
• Hedge trimming equipment
• Two rakes
• Two shovels
• Two pruners
• Two loppers
• Safety equipment, including steel toed shoes, goggles, gloves
• Standard tool box with tools for simple repairs
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START-UP REQUIREMENTS
Start-up Expenses
Legal/LLC
$500
Ad
$50
Brochures/Business Cards
$150
Home Office
$3,000
Accounting Software
$100
Other
$0
TOTAL START-UP EXPENSES
$3,800
Start-up Assets
Cash Required
$6,200
Other Current Assets
$2,500
Long-term Assets
$3,500
TOTAL ASSETS
$12,200
Total Requirements
$16,000
Services
Fescue & Sons Yard Care will provide residential lawn care service which includes lawn cutting, edging and trimming. Optional services will be available upon customers’
requests. The service is typically offered once a week in season, but we can create a custom schedule for clients if they have beginning of the season projects, or if the weather
changes their lawn care needs.
Market Analysis Summary
Fescue & Sons Yard Care will target rural middle-class families with larger lawns or parcels of property. This population is the most likely to use a lawn care service such as ours,
since they often have more acreage than they can easily care for.
Red will be canvassing neighborhoods and posting flyers to develop a clientele. We will also place advertisements in the local rural newspaper to develop visibility for Fescue
& Sons Yard Care.
In the second year, Red will expand service beyond the small rural town to the urban area located 15 miles east.
4.1 Market Segmentation
Fescue & Sons Yard Care will be targeting families with annual income over $50,000. The median income of $50,000 and above is targeted because they tend to have more
disposable income for the care of their lawn, whereas lower income families will tend to provide their own lawn care.
Over the last three years, the prices for homes in the nearby urban place advertisements have skyrocketed. Many families in our targeted income bracket have chosen to buy
larger parcels in the nearby countryside, rather than spending huge amounts on small lots in the city. However, many of them are unprepared for the level of care such large
lawns require, and end up with small gardens near the house, and overgrown acreage further away.
By targeting customers with large lawns and parcels of property, we will fill the niche created by urban flight, as well as keep our margins higher than we could with small
lawns. Transportation time and costs for all the equipment make it more profitable to do a few large lawns than many smaller ones.
By doing a superb job on these rural lawns in the first year, we hope to build a positive reputation which will carry over with recommendations to co-workers and friends in our
customers’ former urban neighborhoods. Since we want to maximize lawn size cared for in both settings, our eventual outreach to urban dwellings will focus on high-end houses
and lawns on large, often older, lots.
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MARKET ANALYSIS
YEAR 2
YEAR 5