Business models are not a new thing. They have been around for as long as businesses have decided to look at future profit and value. Although we are a small business it is still necessary to model how we want to achieve value and profit through the life of the business.
The business model can be altered, added to or completely rewritten in the future but for the life of the business, its core values must not be dropped.
Model outline
Gross profit formulae will be calculated as Gross Profit Margin = Net Income - materials, labour / Net Income.
We will not add the Directors or office staff costs.
This is then the Gross Profit Margin shown as a percentage.
Introduction
DGK Construction Ltd plans to become a leading provider of renovation, carpentry and residential construction services in the London and Home Counties area. This means always having the best and most efficient facilities, processes, and people. To achieve this, DGK Construction Ltd is investing in many ways that will pay off in competitive advantages for its customers.
The company’s overall strategy will be based on a continuing improvement process of setting objectives, testing ourselves, measuring results, and providing feedback to facilitate further growth and progress. In the very near future we will be looking to gain an online presence for marketing.
It is important that DGK Ltd keep listening to the industry and are prepared for the changes that will come when the UK Government start theit global warming management programs. ie the cutting down of gas area heating in 2025 to be replaced by renewable energy devices.
DGK Construction Ltd is a Bedfordshire limited liability company, with principal offices located in Shefford, Beds, UK. DGK Ltd's management is highly experienced and qualified. Mr Daniel Gruncell and Mr Raymond Dearden are the joint Managing Directors who are very experienced in carpentry and brickwork. Mr Daniel Bridge, who has several years of experience with major construction companies of the UK is employed as an Operations Manager.
Products/Services
DGK Construction Ltd has the experience to get involved with some of the most complex construction projects being done today. This will allow the company to position itself to a wider customer base.
DGK Ltd will be offering many of the usual services to the construction industry which will include carpentry, residential extensions, new build and renovations as well as offering to partner on Management Contracts.
The Market
London and the Home Counties have many severely aged residential properties that require either remodelling or demolition. Successive governments have tried to help the building industry and the new Help to Buy scheme has seen a significant rise in house building. This makes for an excellent opportunity for DGK Construction Ltd to gain a significant market share in its primary target market segment.
The company plans to rapidly develop marketing alliances with friendly partners and pursue new sales of its services to Local Authorities. The market strategy is to capitalize on DGK Ltd's alliances by pursuing these partners for summary introductions.
DGK Construction Ltd plans to use their quality of product, relationship selling, online marketing and subcontractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.
Financial Considerations
We expect to be profitable during the first year of operations. Despite initial large outlays in cash to promote sales, the company’s cash account is expected to remain healthy. The company expects to earn approximately -----------------------.
The mission of DGK Construction Ltd is to provide quality service at competitive pricing.
DGK Construction Ltd is a Bedfordshire based carpentry and construction company with offices at Shefford, Beds, UK.
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DGK Construction Ltd will be committed to conducting business in a manner that protects the health and safety of all employees, customers, and persons living in the community where it operates. To accomplish this, DGK Construction Ltd will ensure that it complies with current Health and Safety Administration and Occupational Health and Safety laws and will maintain its operations, procedures, technologies, and policies accordingly. Each employee will have the responsibility to fully comply with established safety rules and to perform work in such a manner to prevent injuries to themselves and others. DGK Construction Ltd is very concerned about job-site safety and plans to set up a comprehensive safety program.
DGK Construction Ltd can adapt to almost any construction requirement that calls for expertise in carpentry, joinery and residential construction, be it renovation or extending existing dwellings. The company’s expert staff has the capability to design and manufacture any custom component or accessory item that may be required to complete the carpentry and/or joinery package or designing accessories to assist in their construction process.
The required joinery drawings that DGK Ltd will furnish to the client/customer eliminate all guesswork. The company will specify the order of assembly and erection.
Accident prevention is the cornerstone of DGK Construction Ltd's safety commitment. The company will strive to eliminate foreseeable hazards which could result in personal injury or illness; at DGK Ltd, health and safety will not be compromised.
The following applications are uses for but not limited to DGK Construction Ltd’s services.
Industry Statistics
Special trade contractors primarily engaged in residential housing work.
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4.1 Market Segmentation
Wates Construction managing director Paul Chandler said: “The chancellor highlighted the importance of the construction industry in his announcement and specifically the house-building sector, which is directly responsible for more than a quarter of a million jobs and the stamp duty cut will undoubtedly provide much-needed confidence in the housing market.
“However, more people buying and selling houses does not necessarily translate into more houses being built and so other issues such as planning reform must also be tackled simultaneously if we are going to deliver the homes – and the associated jobs – that this country desperately needs.
“At the heart of the government’s announcement today was sustainability and a recognition of the huge opportunity for growth in the ‘green’ sector but the big challenge for the government in this area is one of ambition.
“The numbers announced today are not insignificant but while the intent is unquestionably sound, the quantum impact may not be as transformational as the government may hope.
“Today’s announcements are an important first step in kick-starting the UK economy but what we need next is a long term strategy that recognises and then tackles the major challenges facing the UK in the years ahead such as the levelling up of the regions, population growth and the climate emergency, not to mention the impact of Brexit."