Certificate III in Carpentry: Miles Carpentry Business Plan Analysis

This project presents a comprehensive business plan for Miles Carpentry, a new venture in the carpentry sector of Western Australia. The plan encompasses an introduction outlining the company's background, vision, and the entrepreneur's motivations for starting the business, driven by prior experience and market opportunities. The discussion section delves into market analysis, highlighting the competitive landscape, including key players like Timbecon and Procare Carpentry, and the growing demand for carpentry services. It also covers the company's strategic approach, including service offerings (from window boxes to complete decking), pricing strategies, and competitive advantages such as customization options. The financial aspects are discussed, including startup costs, projected revenue, and the entrepreneur's financial arrangements, including loans and personal investment. Ethical considerations, such as customer service and waste management, are also included. The plan analyzes the business's viability and longevity, considering factors like market trends, potential risks (political and economic instability), and the need for change management within the evolving carpentry industry. The conclusion summarizes the key findings, emphasizing the potential for success in the Western Australian market. The business plan includes references to academic sources and relevant industry reports.

Running head: CERTIFICATE III IN CARPENTRY
Certificate III in Carpentry
Name of the Student:
Student ID:
Author Note:

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Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Discussion............................................................................................................................2
3.0 Conclusion............................................................................................................................9
4.0 References..........................................................................................................................10
5.0 Appendix............................................................................................................................12

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1.0 Introduction
Over the past bygone years Australia has been developing as a whole. With a growth of the
nation, its business industry has also seen the brighter side. According to Jarron (2014, p. 16)
investors and entrepreneurs have seek to set up new initiatives as well. Among the many
kinds of business in the country, carpentry is recognized not only as the peoples need, but
also as one of the growing sectors. Further, being an integral part of the construction segment
which earns annual revenue of $12 billion along with a growth of 0.4%, carpentry services is
a highly competitive and booming commerce (Selvanathan et al., 2014, pp. 239-243).
This particular project is based on a new firm called Miles Carpentry. In addition to
potentiality of the company, a check on its viability and longevity in the nation has been
included. I started the business as I felt the business of carpentry is highly competitive and
booming commerce in the competitive industry. I felt that the business of carpentry is doing
well in the competitive market and in this field I can earn huge profit as well. I had previous
experience in this sector as I had worked in previous places as carpenter and gained some
ideas as well. The entire project helps in understanding my intentions in starting the carpentry
business and the different ways through I received financing from different institutions as
well.
2.0 Discussion
As opined by Staines and Staines (2014, p. 56), success of a company largely depends on the
mission and vision of its owners. It is noted that analyzing potentiality of the business helps
to locate and fill preliminary pitfalls. It is with the help of a bank loan and savings that I will
be able to bring forward an amount of $110, 000 for the business. Personally, I wanted to
start the business myself, but due to weak financial condition, I had to take loan from bank as
well as other financial institutions and my friends helped me as well. On the other hand, I was
also pressured by his bank loan which needs to be repaid or will lead to lose of my father`s

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mortgaged house. Concerning, geographical location of the company, I feel Western
Australia (WA) to be the most favourable option. The management of my company helps in
recognizing 2.6 million people in the part to be the source of $400 million sales in the
upcoming years as well. I have to understand the geographic location wherein my business
will gain success and this will help me in expanding my business in different parts of the
world as well.
Moreover, with a motive to provide a modernized service to the people and thereby fulfil
their requirements, I target to expand business into NSW and Queensland in the coming
future. However, my carpentry named Miles carpentry will be confronted with a high degree
of competition from various established firms. I feel that these are the two areas wherein my
business can perform better and gain huge amount of profit as well and this will help me in
gaining competitive advantage as well. As per Buchanan et al. (2016, pp. 561-578)
companies like Timbecon, Procare Carpentry, Home Carpentry, Beyond Tools, and
Distinction Joinery have been opposing new market entrants from the last five years.
Additionally, Wilson (2015, pp. 32-34) stated that demands have grown by 52% from 2015-
2017. Also, an average income of $200,000 across the state has supported growth of sector. It
is noted that there lies a large potentiality in Miles Carpentry for growth.
According to Mears (2015, p. 91), in addition to fulfilling customer expectations and
commitments, the financial condition and demand growths decides viability of a newly set up
organization. In order to ensure popularity in Western Australia and also develop a
competitive advantage over rival firms, the management team of my Carpentry focuses on
providing a variety of goods and services to its consumers. Ranging from singular window
boxes and series of Versailles styled containers to complete wooden decking and exterior
projects, the company focuses on providing high quality cheap rated products. Additionally,

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the workforce of my company also puts in great efforts to help the people install their self
designed plans. On the other hand, cabinet fittings, chisels, carving tools, clocks, weather
instruments, drilling machines, extraction devices, finishing and joinery instruments will be
sold by the business. It is with the variety of services that the enterprise objects to establish
dominance over the market in the next 5 years. Further, the main purpose of my business is to
become the primary resource for carpentry in Western Australia.
Concerning demand of the business, population of the area has been growing at an annual
rate of 11% for the bygone 10 years (Bell et al., 2013, p. 341). Moreover, the future of
Australia holds a better and wider infrastructural development, thereby leading to a need for
the construction industry as a whole. As per Powell (2016, pp. 100-119), the stretched supply
over surplus demand in WA has enabled existing firms to charge a higher rate. A surge
towards building up homes in 2017 and in the coming future holds a sustainable future for
Miles Carpentry. In addition to a 7.0% rise in home and office building, market researchers
expect a 5.0% increase in demands for remodelling projects. (Refer to Appendix 1)
In terms of market competition, the new business will be confronted with a high power of
rivalry from well established firms. Being a highly profitable sector, companies will actively
compete with each other in WA to top the list of dominance (Fulford and Standing, 2014, pp.
315-326). Among the various firms in the state, Timbecon, Procare Carpentry and Distinction
Joinery act as the major competitors of my carpentry company. I along with my
apprenticeship completed her B.A. degree and I even hold an experience of 2 years working
in a construction organization. Being the owner of the firm, his fees shall increase with a rise
of profit levels. It is to be noted that first year charges will amount to $30,000, while the
second and third year will remunerate a salary of $34,000 and $42,000 respectively. On the

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other hand, business start up costs and ongoing costs are two topics that are greatly focused
on my managers. (Refer to Appendix 2 and 3)
As stated by Evans (2017, p. 22), the carpentry sector will undergo a change of trend in the
upcoming two to three years. It is noted that the people demand for modern technology
during designing and installation procedures. Further, with a growth for customized services
there will be a downfall of ready to fit projects as well. There will be a rise of overall demand
for the construction industry from 2017-2025 (Karamujic, 2015, p. 221). However, the
carpentry company of mine will be faced with political and economic instability of Australia.
Additionally, the growing competition and rise of bargaining power among stakeholders will
act as a risk to the enterprise. However, as compared to any other business opportunity, I
settled on the idea of setting up the carpentry shop due to my knowledge and expertise in the
field. Although I first wanted to build up a construction company, the high investment
requirement forced him to disregard the option.
According to Belcher (2015, pp. 189-200) every business is faced with a variety of hurdles
which it needs to overcome in order to continue operations. I feel a proper change
management is required in the business of carpentry as this is the most popular business in
the society and this will provide huge opportunities to succeed in the business as well. A
change among the people of Western Australia, their disposable income or any other
demographic will directly affect the newly set up carpentry firm. A growing population and
their financial status will help towards growth of the initiative, while a fall would indicate
loss of sales figures. Employment on the other hand is another crucial aspect for my
respective company. It is only with appropriate employment of staff members that my firm
will be able to continue operating smoothly and gain competitive advantage as well in the
entire competitive market. As per Jarron (2014, p. 16) development of Australia has provided

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business organizations with a vast variety of social and digital media. The proper utilisation
of digital technologies like mobile applications, virtual design showing walls, interactive
fitting spaces, POS systems, digital sales tools and in-store kiosks will help to build up a
strengthened infrastructure for developing sales. Additionally, social media websites will help
towards marketing the goods and services as well. Concerning historical movements of
carpentry firms, it is noticed that there existed a higher price for every product. As compared
to earlier situations, there has been a 20% fall of costs all over the industry (Selvanathan et
al., 2014, pp. 239-243). The downfall of prices throughout the sector has made Miles
Carpentry perfectly competitive in nature. Further, my company’s bottom line has also
hampered due to this as well. The incurring of $174,684 as expenses in the first year has
resulted in a net profit of $31,400.
Despite of many hurdles, market trends in the industry will work in favour of the new
business initiative that has been undertaken by me as this will help in providing proper
opportunities to the employees who are working in my company and prove better than the
competitors in the market as well. In contrast to competing firms, my organization is capable
of providing its customers with the option of customization. Moreover, the existence of
modern products and high adaptability to change will support the company to earn $311,000
in sales. Like every other enterprise, my carpentry company will also need a solid ethical
code of conduct that fulfils moral norms of the industry. In addition to focusing developing
an increased amount of revenue, the management of my company will concentrate on social
welfare as well. Steps like safe disposal of wastes, cleaning of homes after installation of a
project, and respecting the people’s cultural diversity will be taken into consideration as this
will help me and my company to be a great competition in front of others in the competitive
industry. Furthermore, providing high quality tested goods to customers will top the ethical

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priority list of the business in the competitive industry. On the other hand, my carpentry
company will also need to meet tax regulations, safety measures and gain a licence before
commencing business in WA (Evans, 2017, p. 22). Lastly, capital and human resources will
be needed to set up the firm. It is to be noted that my company lacks enough workforce and
tools that will be needed to carry out business operations. In such a case, I along with tree
other managers will tend to employ a task force of 100 employees and buy the necessary
materials.
3.0 Conclusion
Based on the above project I can conclude that setting up my carpentry in Western Australia
will require a lot of hard work. It is me who not only will be the primary source of funding,
but also will act as the owner of the company. With a motive to provide customers with a
variety of goods and services, the main aim of my firm purposes to be the primary choice for
carpentry across the nation. Further, it is noted that there exist certain factors which support
entrance of the organization into the industry, while other elements like competition oppose
it. However, being a high revenue earning sector, I tend to check potentiality, viability and
longevity of the business.

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4.0 References
Belcher, L. (2015). How to Start a Carpentry (not Structural) Business (Beginners Guide).
London: SamEnrico, pp. 189-200.
Bell, R., Hart, B., Martin, J., Mitchell, P., Rodoreda, J., Tierney, P., Young, R. (2013). Basic
building and construction skills: Carpentry and other general construction trades. Frenchs
Forest, NSW : Pearson Australia, p. 341.
Buchanan, J., Raffaele, C., Glozier, N., Kanagaratnam, A., Australia. Department of
Education and Training (DET), and National Centre for Vocational Education Research
(Australia). (2016). Beyond mentoring: Social support structures for young Australian
carpentry apprentices. Adelaide: NCVER, pp. 561-578.
Evans, P., (2017). The building and construction industry code of conduct (WA). Brief, 44(6),
p. 22.
Fulford, R. and Standing, C., (2014). Construction industry productivity and the potential for
collaborative practice. International Journal of Project Management, 32(2), pp. 315-326.
Jarron, S. (2014). Don't waste your business: Concepts for business success in Australia.
Alexandra Hills, Qld: Steve Jarron, p. 16.
Karamujic, M. H. (2015). Housing affordability and housing investment opportunity in
Australia. Houndmills, Basingstoke Hampshire ; New York, NY : Palgrave Macmillan, p.
221.
Mears, N. (2015). How to Start a Carpentry (structural) Business (Beginners Guide).
London: SamEnrico, p. 91.
Powell, W. K. (2016). Carpentry. Boston : Pearson, pp. 100-119.
Selvanathan, E. A., Selvanathan, S., and Keller, G. (2014). Business statistics: Australia /
New Zealand. Melbourne, Victoria : Cengage Learning Australia, pp. 239-243.

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Staines, A., and Staines, A. (2014). The Australian house building manual. Caloundra:
Pinedale Press, p. 56.
Wilson, D. (2015). Carpentry as a community. Building Connection, pp. 32-34.

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5.0 Appendix
1.0 Market Growth of Miles Carpentry:
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Market
Growth
CAGR
New Home Construction 7% 2,000 2,140 2,290 2,450 2,622 7.00%
Remodeling Projects 5% 3,000 3,150 3,308 3,473 3,647 5.00%
Total 5.82% 5,000 5,290 5,598 5,923 6,269 5.82%
Table: Market Growth of Miles Carpentry (5 years)
(Source: As created by author)

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2.0 Start-up Costs of Miles Carpentry:
Start-up Amount ($)
Start-up Expenses
Legal $2,000
Stationery etc. $300
Brochures $3,000
Construction Material $20,000
Insurance $1,000
Rent $1,000
Instruments and Tools $5,000
Vans (2) $30,000
Total Expenses $62,300
Start-up Assets
Cash Required $12,700
Other Assets (Current) $0
Long-term Assets $35,000
Total Assets $47,700
Total Requirements $110,000
Table: Set-up Expenses
(Source: As created by author)