Proposal

InfiniTea has been a company for four years now and as you know, we are ready to expand our shop by adding a second floor. Now that we have agreed that you will be the building contractor working for our company, let me explain why this addition is taking place. First I will give you a little background on our company and then I will explore some of the benefits and possible objections to this expansion.

Hannah Thompson, the other co-owner, and I pondered the option of originally building InfiniTea as a two story building. But we were unsure of how popular this company would be and whether we would ever need two floors, so we decided to build a single story shop, but construct it in a way that would easily allow for an upper floor to be later added. Now that our company has become established in Klamath Falls and is steadily and continually growing in business and customers, we decided that it is time to pursue the idea of expanding our shop. We have hired you to be our general contractor and help us execute this plan and achieve this goal.

Before I go into detail on the proposed plan, I am going to explain some of the potential drawbacks of this project and also some of the resulting benefits. The biggest objection is that InfiniTea is possibly just a fad in town and could potentially die out suddenly. This is a case dealt with by many popular companies; they could be extremely popular one year and then out of favor the next. We could spend all of this money, time, and effort into expanding the shop and then it might end up being all for nothing. If a new coffee shop comes in, many people might migrate there because it is something new. But, InfiniTea has been established for four years and is still popular with a great variety of people, so we feel that rather than going against us, this addition will help us gain an even better reputation. One of the reasons we are expanding is so that we are able to keep the company fresh and updated, that way our customers won’t ever feel bored or feel the need to move to a new environment. This is also one of the reasons that we offer so many various services. There will always be something different to offer, whether it’s a new music band or new artwork. Also, having more room in this shop will help lead to more popularity because it will be less crowded and more people can come; more room equals more customers. After thinking over the possibilities, it is clear that the numerous benefits vastly outweigh the minor objections to this project.

Now that you know why this change is taking place at InfiniTea, allow me to explain how it will come to pass. In this next section, I will give details on the proposed plan for the second story addition to InfiniTea. I will try to cover all details on the phases of the plan, the time it will take, and the end result of the project.

As I stated earlier, when we built the shop we constructed it in a way for the ceiling structure to already be a suitable foundation for an upper floor. This will cut back on time and work in the construction process.

Also, our restroom facilities are downstairs and are already adequate for our customers, so we will not have need for any sort of plumbing upstairs.

We will also be adding a wood deck outside. It will be located off of the upper floor with a stair case leading down to the bottom floor. We will set up chairs and tables on the deck and also beneath the deck on the lower level’s patio.

As contractor, I understand that you will be supplying all workers, equipment, and supplies for this project. In this section I will give a thorough description of the timeline and the structure of this undertaking.

I have calculated that this project will take roughly 3 weeks to be finished. Located in Figure 1 is a rough timetable that illustrates the allotted time for each segment of construction:

Construction	Date
Roof demolition crew	November 20, 2009
Framing of walls and deck	November 21-24
Installation of windows and doors	November 25
Roofing and siding	November 26-30
Rough electrical and HVAC	November 30
Insulation	December 1
Drywall and underlayment	December 2-4
Finish electrical and HVAC	December 5
Wood flooring	December 6-8
Finish deck	December 9-10

Figure 1: information from "Steps to Building a House." How House Construction Works.

During Construction, the managers, Hannah Thompson, and I will be working on figuring out the furnishings of the shop and will begin painting the inside of the shop on December 12. Either Hannah or I will be on site at all times in case there are any questions or any need for clarification on a segment of the project.

InfiniTea will be shut down November 19 through December 19. We plan on having our grand re-opening right before the start of the holidays. Klamath Falls is known for its sunny weather, so I am not too worried about weather disrupting the dates of construction.

The finished product of this remodel will tie in to the same environment that InfiniTea has already created, but will be a newer, refurbished version.

Here is a description of all of the materials we would like to purchase. This includes the floor, deck, windows, and the doors that are to be installed and also details on the siding, insulation, and paint for the shop.

We would like to purchase three 8'0" by 6'0" picture windows from Milguard’s Quiet Line series. These windows are meant to help soundproof and will be installed centrally on each wall, except for the back wall where there will be a WoodClad™ Fiberglass French Door also by Milguard.

The siding we chose for our original building is HardiPanel stucco fiber siding in the Evening Blue color. We would like to continue to use this product.

We would like to use the best insulation possible for the upper floor due to the fact that concerts will be played at InfiniTea each week. We want to sound proof the entire upstairs so that the customers on the lower level are left undisturbed.

We will be purchasing 1.5mm South Perry Pine resilient wood flooring from Lumber Liquidators to cover all 1500 sq feet of the upper floor and also the stair case.

The deck that we would like to build would be 500 sq. feet and would be attached to the back of the building. We will have french doors leading out from the upstairs and then on one side of the deck will have a staircase leading down to the first floor.

For the interior, we would like to use Sherwin-Williams Duration Home Interior Acrylic Latex paint in Plum Brown color.

In this section lies a rough estimate of how much we plan to spend on this project. I have included an approximation of construction costs as well as interior furnishing and materials. I have also included information on how we will pay for these expenditures.

The majority of the cost will go in to building the additional floor of InfiniTea. We have estimated that the cost for construction will be approximately $175,000.

We have allotted $25,000 for furnishings. This includes décor, tables and chairs, sofas, art lights, and a larger stage. We will save money by buying wholesale and decorating the shop ourselves rather than hiring a designer. We will install as much as we can ourselves and search diligently for high quality yet reasonable priced materials.

Through our popularity in Klamath Falls we have raised enough money to cover $125,000 of the expenses. But that leaves $75,000 that we need to take out in a loan. We feel confident that we can quickly pay off this loan once the shop has been re-opened.

This project is going to move very quickly, so it will take a lot of team effort from everyone. I feel confident in saying for myself and the entire staff of InfiniTea that we are very excited for you and your crew to come aboard with us in accomplishing this goal.

"Duration Home Interior Latex." Sherwin-Williams. Web. 11 Nov. 2009. <http://www.sherwin-williams.com/do_it_yourself/sherwin_williams_products/products/duration-home-interior/index.jsp>.

James Hardie: World Leader in Fiber Cement Siding and Backerboard. Web. 11 Nov. 2009. <http://www.jameshardie.com/index.html>.

"Lumber Liquidators: 1.5mm South Perry Pine Resilient." Lumber Liquidators: Hardwood Floors for Less! Web. 11 Nov. 2009. <http://www.lumberliquidators.com/catalog/product.jsp?productId=6964>.

"Picture Sound Control Window - Quiet Line" by Milgard Windows and Doors." Custom Windows, Window Manufacturer - Milgard Windows and Doors. Web. 11 Nov. 2009. <http://www.milgard.com/windows/sound-control-windows/picture-window.asp>.

"Steps to Building a House." How House Construction Works. Web. 11 Nov. 2009. <http://home.howstuffworks.com/home-improvement/repair/house2.htm>.

"Wood French Doors, Wood Doors - Woodclad " by Milgard Windows and Doors." Custom Windows, Window Manufacturer - Milgard Windows and Doors. Web. 11 Nov. 2009. <http://www.milgard.com/doors/fiberglass-patio-doors/woodclad/>.

This document is a proposal to add new product lines to Gary’s Lawn and Garden Shop. So far the business has been profitable and has worked out well for the owner. The growth of lawn and garden equipment sales has been very good and the store has been well received in the community. An opportunity has been identified in the business for additional sales of related equipment to supplement sales of lawn and garden equipment. In this proposal, I will put forth reasons for making this addition, the process for making this addition, the cost and time to complete the addition and my qualifications to achieve this addition.

The following descriptions outline the need and benefits of additional product lines for Gary’s Lawn and Garden Shop.

Gary’s Lawn and Garden Shop has reached a level of success to this point that has been exhilarating. The local area has responded well to the product lines offered to address the mowing, tilling, and landscaping needs of the customers in Damascus. The shop is doing great, but due to the cyclical, seasonal nature of lawn and garden sales, the shop has inconsistent repair shop utilization and the sales distribution is uneven through the year. This has led to difficulty in allocating advertising expenditures, predicting operating income and meeting critical expenses at certain times of the year. Further exacerbating the problem is the fact that in a poor weather year for lawn and garden products, there are no replacement products to boost sales to compensate for the lack of lawn and garden sales. The store has tried offering special promotions and sales discounts during the off season, and, with some success, this has worked to temporarily spike sales during those times, but not enough to offset the problem.

A long term solution to the unbalanced sales distribution dilemma has been sought out. Discussions with store management and regional competitors has rendered a solution that I am putting forth in this document that will, in my opinion, turn this situation around to the point that the sales and profit picture of Gary’s Lawn and Garden Shop will even out and indeed improve substantially (Stark Street Lawn and Garden). The only issue left on the table is how and when to proceed with the new product lines added to our sales mix. I will address these issues as well in this document.

The identified reasons delineated below will describe the benefits of adding new product lines to Gary’s Lawn and Garden Shop. Specifically, the addition will be All Terrain Vehicle (ATV) and small off-road truck sales. Table 1 shows the growth rate of sales of ATV equipment for the last several years, up through 2002 (see Appendix A).

The customers Gary’s Lawn and Garden Shop currently cater to are primarily of the outdoor variety who enjoy being in a natural environment. They would appreciate utilizing a very similar product to the ones they already use. Many lawn care and garden type folks also have land that they need access to year round. They can use their small mowers and tractors to reach the land but an ATV would make it easier to go there. They are likely to already own an ATV that they purchased from another dealer, and we need to corral that business. Also needed by land owners is a small off road truck that they can use to haul supplies around to their orchard and forest lands in the winter season.

By offering these expanded product lines, Gary’s Lawn and Garden Shop can attract a separate class of buyers from the straight mowing, trimming, cutting, and tilling tool customers we currently draw. These customers will expand our customer base and give us more leverage in the “word of mouth” advertising market for outdoor equipment. By increasing our customer base, we can cover a greater demographic profile of the community as well, since younger age groups tend to enjoy the use of ATV type vehicles, while an older age group tends to prefer the small off road trucks that alleviate the need for them to walk and pack hand held equipment to the far reaches of their properties.

By offering the ATV and small off road trucks, we can expand our sales in the lawn and garden equipment off season (fall and winter). These times of the year, very few gardeners and mowers are out using equipment and purchasing new equipment. Hunters and wood cutters who use ATVs and small off road trucks, however, are still using these vehicles and are purchasing them for the season. This will increase our sales volume and keep our sales staff at full utilization during this time. Not only will that mean keeping a full sales staff year round, but the morale of the staff will stay high as well.

The synergistic effect of offering different but related product lines can translate into a total sales volume that is greater than the sum of its parts. There will be an effect of increasing sales of lawn and garden equipment from customers who are buying ATV and small off road truck type vehicles. Although there is considerable overlap in customers, there will be first time customers in the shop for ATVs who would never have shopped there if we only offered lawn and garden equipment. Likewise there will be shoppers who never would buy ATVs that now, having seen the benefits of them up close, will consider giving them a try. The overall effect will be greater sales than either general product type would generate alone.

Today our repair shop is busy during the spring and summer seasons, when most customers are using (and breaking) their equipment. A few planners will take advantage of the slow season and schedule their shop work to be done in the off season but most customers will wait until the crisis occurs and expect immediate service during the busy season. This uneven shop activity requires that we add repair technicians during the busy season and delete them during the slow season. This makes it very difficult to maintain a fully trained and able staff, even when the busy times come. By dividing our product lines into year round applications, we can employ a dedicated repair staff all year and keep them trained with full skill sets. It will be easier for us to send technicians to special schools for enhanced skills related to all product lines, since we know we can keep them employed full time at our business.

Citing the increases in product sales and repair shop work from the new product lines offered, we can increase the number of employees on staff and lower some of our fixed costs in the business. For example, our health insurance rates may drop with a larger pool of employees to service. Also, certain retirement plans may be more feasible for the business with greater numbers of employees.

The combined product lines will allow Gary’s Lawn and Garden Shop to advertise in more markets than it currently does, giving us greater overall exposure in the out door product market place. The diverse product lines we offer will require advertising in different media types. For example we would likely now advertise in ATV sport type publications, as well as our traditional lawn and garden venues.

By adding the ATV and small off road truck product lines to our sales bottom line, we can achieve a steady income year round and reduce the spike and trough nature of cash flow we currently endure. By experiencing the up and down income situation, we effectively must float the business in the off season by carrying enough cash in very safe, low-paying savings type accounts to pay fixed costs when current income is not able to sustain operations. By adding product lines as suggested here, we can free up some of that cash to invest in higher paying longer term instruments or, better yet, invest in the business itself. Also Business Control System software can be used to increase revenue year round as well (Dealer BMS Builds Year Round Sales).

Our display areas are currently large enough to hold most of the lawn and garden equipment we sell during the busy season. Additional product lines would allow us to add on the product display areas, however, and better show all the products we offer for each season. Increased revenue from the additional sales will help expand the display area we have. It will also allow us the flexibility to expand each type of product mix in tandem with the current season. For example in the spring we can emphasize the mower and tiller lines while in the fall we can show the wood cutting tools and ATV lines offered.

With the product lines we currently offer, there is an underlying risk that is hard to admit but very real. Since our products are used for cutting vegetation, there are years that have very low precipitation and years with very high precipitation. Either of these conditions could reduce the sales on products and make for a tough year in the business. This is currently happening in other parts of the country. By offering diverse product lines, we can minimize that risk and keep ourselves in better financial shape even when Mother Nature works against us.

By adding the ATV and small off road truck product lines to our sales mix, we will need to add sales and repair staff, thus increasing our employee payroll costs and requiring greater human resources in the business. This will burden the accounting department and management of the business by needing to oversee more employees and deal with the additional employee turnover that might occur.

While it is true that the additional employees will add requirements to management, those additional employees will also generate enough revenue to overcome the additional costs incurred. The added business will allow Gary’s Lawn and Garden Shop to potentially add a human resources person to help manage those issues brought on by the additional staff.

The following discussion will define the steps required to bring additional product lines into the business of Gary’s Lawn and Garden Shop.

Several steps will be needed to complete the analysis phase of adding new product lines to the business.

Several steps will be needed to introduce the new product line to Gary’s Lawn and Garden Shop.

The time and cost requirements of adding new product lines are delineated below.

The general time line for full implementation will be one year from the beginning of action once this proposal is accepted. That will give enough time to find the appropriate manufacturers, hire sales and repair staff and account for these changes in company payroll and accounting systems.

The cost of these implementations will be at least $100,000 for the physical space requirements and another $50,000 for adding staff as needed until revenue can cover employment costs of the additional staff.

As owner of Gary’s Lawn and Garden Shop, I feel I have the unique authority and responsibility for the overall management and growth of the business.

With the history I have in small business development, I feel my experience and knowledge of business development and growth makes me the best choice in the business to carry through this project.

Since I have the finances and overall income from the business in my name, I feel I am the logical choice to conduct this undertaking of growth in a new product line.

Your consideration of the proposal I have made here is greatly appreciated. Thank you for reading and evaluating the arguments I have made to expand the product line for Gary’s Lawn and Garden Shop. I am confident that if you approve my proposal, the business and its stakeholders will prosper in the coming years.

Stark Street Lawn and Garden. “Over 40 Years of Power Equipment Sales and Service.” 17 Oct. 2007. <http://www.starkstreet.com/>.

“Dealer BMS Builds Year-Round Sales.” Power Equipment Trade. 56.4 (May 2007). 7 Nov. 2007. <www.poweret.com>.

Sales Statistics for the First Half of 2002.” PA Atving.com. 13 November 2007.

The following is a proposal to develop a Corporate Standards Manual for Reyes Corporation. After reviewing the literature and the outdated standards manual that you gave me at our meeting on December 7, 1998, I developed this proposal to describe to you the process involved in creating your new standards manual. This proposal contains information on the need for a standards manual, the process of developing the standards manual, the contents of the standards manual, the schedule to complete this project, costs to complete this project, and my qualifications to produce a high-quality finished manual. Because I am a former full-time employee of Reyes and have now been working for Reyes on a contract basis for over a year, I am confident that I can create a standards manual that will accurately reflect the new Reyes image and will be a valuable resource for Reyes employees.

Since Reyes has used a standards manual before, I know that you understand the importance of having a corporate identity that establishes a consistent impression across all media. Because Reyes has undergone so many changes in the last few years, it is more important then ever to present a consistent image to the media. There has been a large turnover in personnel since emerging from Chapter 11 bankruptcy in 1996 and the merger with Access Beyond in 1997. Over the past two years, I have seen numerous examples of inconsistent use of Reyes identity standards. Some of the incorrect usage is due to the lack of training provided to new employees, and some of it is because so many things have changed yet no new standards have been set. I recently saw a copy of a letter sent from a Reyes employee to a customer in which Reyes is referred to three times in three different ways: first as Reyes Microcomputer, then as Reyes Corporation and then the third time as Reyes Microcomputer Products, Inc. Not only can inconsistency confuse the customer; it can also leave an impression that Reyes doesn't quite have its act together.

Almost everything except the Reyes logo has changed. It is time to re-establish the Reyes look with new standard formats for logo usage, internal and external correspondence, business cards, forms, signage, press releases, and all media formats. There are new product lines, icons associated with those product lines, and Reyes trademarks that need to be used consistently and accurately. Some of the retail cartons, technical manuals, and product literature that I have seen recently do not refer to either the new or the old products consistently. Product names are sometimes written in all caps, sometimes in upper and lower case, and often they are separated from other elements that make up the entire brand name. I have seen usage of the Reyes name with an apostrophe, which has always been unacceptable in any situation. As you can see, it is more important than ever that Reyes presents a positive and organized impression, especially after its recent well-known financial and organizational problems.

How you visually communicate your company to the world, the market, and your clients is an important part of your success. Consistent usage of style and and identity gives the world an impression that can be remembered. Once an impression is made to a potential customer through various media materials such as marketing collateral, signage, or the World Wide Web, it should be easily recognized a second time. If the identity elements are not used consistently, the impression may be lost. By creating and using identity standards, we can make Reyes more easily recognizable and memorable.

The standards manual that I am proposing to develop will include all identity system elements. I would like to meet with key Reyes personnel to establish clear communication objectives. I will then organize and format the manual and design the cover. No new graphics will need to be created, since all the necessary graphics already exist and are archived in the Creative Services Department. New designs will be developed, however, for stationery, presentations, forms and business cards using the current logo with the new Reyes name. I propose to also manage the production and distribution of the standards manual and to prepare a presentation for training employees. A permanent Reyes employee or myself may be considered to conduct the training session.

I identified three phases in the process of developing the manual: (1) analysis, (2) design, and (3) production. Below are the steps that will be taken in each phase to ensure accuracy and efficiency:

This standards manual is for all Reyes employees and Reyes contractors to use. I propose to use three-ring binders with printed covers and printed tab inserts to separate sections. This will be very useful later when only particular pages or sections need to be updated; rather then reprinting an entire book, only the pages that are changed will need to be reprinted and replaced in the binder. I have estimated that the book will contain between 60 - 75 pages. Most of the pages will be black and white text, except for those containing graphics such as logos or icons, examples of presentation layouts, or any other standard design element that includes color.

Following is an outline of the sections I plan to include in the standards manual. Some of this may change or sections may be added once I have met with Reyes personnel to determine the content.

PROJECT SCHEDULE

MY QUALIFICATIONS

COSTS

I have estimated that it will take approximately 250 hours to complete this project, starting from the day I begin work until I receive the final print copies of the manual. As with the last contract I completed for Reyes, my hourly rate is $35 per hour, making the total cost for my services $8,750.

The cost of materials to produce the finished standards manuals can vary considerably depending on the vendor we choose and the quality of materials. I have a number of suggestions and price quotes for the production of the manual which we can discuss and decide upon during the initial stages of development.

CLOSING

Thank you for considering me for this project. I hope that you will approve my proposal and consider beginning this project as soon as possible. I am excited about creating this standards manual and, as always, I enjoy working with Reyes.

Proposal to Develop a Corporate Standards Manual for Reyes Corporation

PROJECT SCHEDULE

MY QUALIFICATIONS

COSTS

CLOSING