Supply of tars and bitumen
Road construction and maintenance are components in the construction industry; the construction industry is about constructing buildings, bridges, etc. The primary raw materials used in constructing roads are tars and bitumen; hence there is a large market for tars and bitumen.
Road construction and maintenance are the construction activities that allow to the entrepreneurs to make money if they have different contracts to realize. The roads construction and maintenance need tars and bitumen materials to be completely finalized. The business of supplying these materials is great for entrepreneur who have sufficient capital to do it.
Executive Summary:
The following business plan outlines a supply chain for tars and bitumen, which will be sourced from domestic and international suppliers and sold to various industries and consumers. Our company will operate as a B2B and B2C supplier, with a focus on offering high-quality products at competitive prices. The business will be registered as a limited liability company, and we plan to operate primarily in the United States, with the potential for expansion into international markets.
Market Analysis:
Tars and bitumen are essential materials used in various industries, including construction, infrastructure, roofing, and manufacturing. The market for these products is vast and diverse, with demand coming from a wide range of customers, including contractors, roofing companies, manufacturers, and asphalt plants. The US market alone is estimated to be worth over $9 billion, and it is expected to continue growing due to the increasing demand for infrastructure and construction projects.
Target Market:
Our company will focus on supplying tars and bitumen to both B2B and B2C customers. Our target customers will include construction companies, roofing companies, asphalt plants, and manufacturers that use tars and bitumen as raw materials. Additionally, we will also serve individual consumers who need tars and bitumen for DIY projects, such as driveway repair and roof sealing
.
Products and Services:
We will offer a variety of tars and bitumen products, including oxidized bitumen, cutback bitumen, emulsified bitumen, and polymer-modified bitumen. We will source our products from domestic and international suppliers, ensuring high-quality and competitive prices. Our services will include fast and reliable delivery, technical support, and advice on product selection and application.
Marketing and Sales:
We will use various marketing channels to reach our target customers, including digital marketing, industry conferences, and trade shows. We will also establish relationships with key industry players, such as contractors and roofing companies, to generate word-of-mouth referrals. Our sales team will focus on building long-term relationships with customers by offering high-quality products, competitive pricing, and exceptional customer service.
Operations and Management:
Our operations will be centered on the procurement, storage, and distribution of tars and bitumen. We will establish relationships with domestic and international suppliers, ensuring a consistent and reliable supply of products. We will also invest in a state-of-the-art storage facility, which will ensure the quality of our products and allow for efficient order fulfillment. The management team will consist of experienced industry professionals, who will oversee operations, sales, marketing, and finance.
Financials:
The startup costs for the business will include the acquisition of inventory, establishment of storage and distribution facilities, and marketing expenses. We estimate the startup costs to be approximately $1 million. We project our monthly revenue to be $500,000, with a profit margin of 10-15%. We plan to reinvest profits into the business to fuel growth and expansion.
Conclusion:
The supply of tars and bitumen presents a lucrative opportunity for a new business, with a large and diverse market, high demand, and opportunities for growth. By focusing on quality products, exceptional customer service, and competitive pricing, we believe that we can establish a successful and profitable business. We are confident that our experience, industry knowledge, and business plan will lead to success in the market.
Here is a projected income statement for the above business plan:
| Year 1 | Year 2 | Year 3 | |
| Revenue | $6M | $8M | $10M |
| Cost of Goods Sold | $5.1M | $6.8M | $8.5M |
| Gross Profit | $0.9M | $1.2M | $1.5M |
| Operating Expenses | |||
| Salaries and Wages | $300,000 | $350,000 | $400,000 |
| Rent and Utilities | $75,000 | $85,000 | $100,000 |
| Marketing Expenses | $50,000 | $60,000 | $70,000 |
| Insurance | $20,000 | $25,000 | $30,000 |
| Other Operating Expenses | $100,000 | $125,000 | $150,000 |
| Total Operating Expenses | $545,000 | $645,000 | $750,000 |
| Net Income Before Taxes | $355,000 | $555,000 | $750,000 |
| Taxes | $106,500 | $166,500 | $225,000 |
| Net Income After Taxes | $248,500 | $388,500 | $525,000 |
Note: The income statement is projected based on estimated revenue and expenses. Actual results may vary.
