Fencing Company Business Plan

1. Industry Overview
Fencing companies are part of the fence construction industry and this industry
comprises of establishments that construct and install a wide range of fences,
including residential fences, security fences, niche fences amongst others.

In recent time, establishments in the industry have experienced a variation of

conditions as the Ethiopian economy has recovered from the recession and housing
values have begun to rebound. So also, with the recent resurgence of residential
construction markets, fencing companies are benefiting from new investments in
housing stock.

In the same way, non – residential construction returned to growth during the
stated period as increasing consumer spending revived corporate profit margins.

Going forward, players in the industry are forecast to experience more favourable
conditions. Robust residential growth during the period, especially in the next years,
will aid fencing contractors increase profitability and enlarge their revenue.

Over the five years to come, revenue for the industry is projected to rise at a more
remarkable amount of money. With an expanding housing market, there will be
greater demand for fences, especially from home builders and households in need
of renovation.

In the past years, the most percentage of total industry revenue was derived from
metal sheet fences. Metal sheet fences are generally the more economical type of
fencing available in the market today compared to build up wall fences. The non-
residential commercial buildings, building sites, manufacturing factories, and
residentials are important markets for metal sheet fences. Ornamental metal fences
and Wood fences are among those chosen by residential homes.

Ever ending growing of inflation and shortage of foreign currency makes it hard
fencing with metal products. Stability issues with the wooden fences makes it the
least alternative. Cost, aesthetic value, time of construction and safety matters
driven us to consider prefabricated concrete installation business plan.

Some of the factors that encourage entrepreneurs to start their own fencing
companies could be that the business is a highly profitable business, and it can be
started with minimal capital and manpower. The fence construction industry is lowly
regulated in Ethiopia but anyone who aspires to start a fencing company must apply
and obtain a license before they can legally operate in the industry.

2. Executive Summary
NAD Fence Construction Company is going to be a licensed fencing company. Our
head office will be located in Guraghe zone, wolkite town. But we will open our
branch offices in major cities in Ethiopia within our first five years of operation.

We will work hard to ensure we have active presence in the following locations;
Wolliso,Oromia Region, Butajira, Guraghe zone, Hossana, Hadiya Zone, Jimma
Oromia region.

NAD Fence Construction Company will engage in construction of a wide range of

fences, including residential fences, security fences and niche fences; we will make
use of a variety of materials like metal, wood, plastic and concrete for residential,
commercial, institutional and industrial building markets. We will work towards
becoming one of the largest fencing companies in Ethiopia with active presence in
major cities.

As part of our plans to make our customers our number one priority and to become
one of the leading fencing companies in Ethiopia, we have perfected plans to adopt
international best practices in the industry. NAD Fence Construction Company have
overtime perfected plans that will help us to become the go to fencing company in
the cities we operate in with a great vision to engage in green affordable modular
homes.

NAD Fence Construction Company will at all times demonstrate its commitment to
sustainability as a firm, by actively participating in our communities and integrating
sustainable business practices wherever possible. We will ensure that we hold
ourselves accountable to the highest standards by meeting our client’s needs
precisely and completely.

NAD Fence Construction Company is owned by Engr. Dessalegn Gamini and his
immediate family members. Engr. Dessalegn Gamini has a Degree in Civil
Engineering and had worked with top construction firms in Ethiopia including
Zebidar brewery, Wolkite university, SAMCON construction and others for many
years prior to starting his own business.

3. Our Products and Services

NAD Fence Construction Company is going to offer lots of services within the scope
of the fence construction industry in Ethiopia. Our intention of starting our fencing
company is to favourably provide our service to those who need it. Our business
offerings are thus;

 Producing precast concrete panels and posts.

 Installing residential fences
 Installing non-residential fences
 Installing agricultural fences
 Installing security fences
 Installing non – building fences
 Related consultancy and advisory services
4. Our Mission and Vision Statement

 Our vision is to become one of the top 5 fencing and modular home building
companies in Ethiopia within the first 10 years of starting NAD Fence
Construction Company.
 Our mission and values are to help people, farmers, businesses, home and
property owners in Ethiopia to handle all their fence and home construction
contracts.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the
industry, as a matter of priority, we have decided to create a structure that will allow
for easy growth for all our employees and also, we have created platforms that will
enable us attract some of the best hands in the industry.

We are quite aware that the success of any business lies in the foundation on which
the business is built on, which is why we have decided to build our fencing company
on the right business foundation. We will ensure that we only hire people that are
qualified, honest, hardworking, customer centric and are ready to work to help us
build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our

senior management staff and it will be based on their performance for a period of
five years or more depending how fast we meet our target.

NAD Fence Construction Company is fully aware of the modes of operation in the
industry, hence adequate provision and competitive packages has been prepared
for independent sales agents. Our marketing department will be responsible for
managing this aspect of our business structure. Below is the business structure we
will build NAD Fence Construction Company on;

 Chief Executive Officer

 Project Manager
 Admin and HR Manager
 Precast elements production teems
 Fence Construction Engineers
 Business Developer/Sales and Marketing
 Accountant
 Customer Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

 Increases management’s effectiveness by recruiting, selecting, orienting,

training, coaching, counselling, and disciplining managers; communicating
 values, strategies, and objectives; assigning accountabilities; planning,
monitoring, appraising job results and developing incentives
 Produces, connects, and implements the organization’s vision, mission, and
overall direction – i.e., leading the development and implementation of the
overall organization’s strategy.
 Accountable for fixing prices and signing business deals
 Responsible for providing direction for the business
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Project Manager

 Responsible for the planning, management and coordinating all projects on

behalf of the company
 Oversees fencing projects
 Ensures compliance during project executions
 Provides advice on the management of projects
 Responsible for carrying out risk assessment
 Uses IT systems and software to keep track of people and progress of ongoing
projects
 Responsible for overseeing the accounting, costing and billing of every project
 Represents the organization’s interest at various stakeholders’ meetings
 Ensures that project desired result is achieved, the most efficient resources are
utilized and different interests involved are satisfied.

Admin and HR Manager

 Responsible for overseeing the smooth running of HR and administrative tasks

for the organization
 Maintains office supplies by checking stocks; placing and expediting orders;
evaluating new products.
 Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
 Outlines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Accountable for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversees the smooth running of the daily office activities.

Precast elements production teems

 Properly installs precast moulds

 Cleaning production areas
 Controlling raw material ratios
 Controlling quality of raw materials
  Accountable for quality of products
 Controls product casting period

Fence Construction Engineers

 In charge of handling construction of a wide range of fences, including

residential fences, security fences and niche fences by making use of a variety
of materials
 Establishes and enforces company’s engineering and construction standards
 Ensures that fence construction work / projects carried out by us meets or
exceeds standards within a designated geographic area.
 Offers overall direction on assigned fence construction projects; reviews and
makes recommendations on planning and design of projects; negotiates
contracts or participates in contract negotiations; monitors day‐to‐day progress
and activities on project construction sites.

Marketing and Sales Executive/Business Developer

 Identifies, prioritizes, and reaches out to new partners, and business

opportunities et al
 Identifies development opportunities; follows up on development leads and
contacts
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Accountant

 Responsible for preparing financial reports, budgets, and financial statements

for the organization
 Provides managers with financial analyses, development budgets, and
accounting reports; analyses financial feasibility for the most complex
proposed projects
 Responsible for financial forecasting and risks analysis.
 In charge of developing and managing financial systems and policies
 Accountable for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the company
 Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

 Receives Visitors/clients on behalf of the organization

 Receives parcels/documents for the company
 Handles enquiries via e-mail and phone calls for the organization
  Distributes mails in the organization
 Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone)
provides the client with a personalized customer service experience of the
highest level
 Through interaction with clients on the phone, uses every opportunity to build
client’s interest in the company’s products and services
 Manages administrative duties assigned by the line manager in an effective and
timely manner

6. SWOT Analysis
Starting a fence construction business in Ethiopia comes with its own fair share of
challenges, you would have to abide by the law and also compete with loads of
other entrepreneurs in the industry who also are interested in making a living and
building a business in Ethiopia.

In order to contend favourably in the fence construction industry as a fencing

company, we have been able to hire the services of tested and trusted business and
HR consultants to help us conduct critical a SWOT analysis. Here is a summary from
the result of the SWOT analysis that was conducted on behalf of NAD Fence
Construction Company;

 Strength:

Some of the strengths that we will be bringing to the table in the fence construction
industry is our robust relations with construction giants, home owners and property
investment moguls in Ethiopia. We have access to funding and also have a team of
experts who have cut their teeth in the fence construction industry.

 Weakness:

As a newbie in the fence construction line of business, we might have some

challenges to create awareness in the public for the newly emerging products and
services.

 Opportunities:

The opportunities in the industry especially as a fencing company is massive

considering the number of home owners who have the financial capacity to
renovate their homes and change their fences as at when due. Permanently
increasing cost of metal sheet fencing and foreign currency shortage will shift
attentions of fence and home builders to precast products. We are well –
positioned and ready to take advantage of any opportunity that comes our way.

 Threat:
Some of the threats that we are likely going to face as a fencing company
are unfavourable government policies, and global economic downturn; global
economic downturn usually affects spending power and the real estate industry is
known to encounter decline in sales during this period. There is hardly anything we
could do as regards these threats other than to be optimistic that things will
continue to work for our good.

7. MARKET ANALYSIS

 Market Trends

The market trends in the industry are that there are no fixed profit projections when
engaging in a fence construction deals. The profit you stand to gain depends on
loads of factors amongst which are your attention to details, ability to source for
affordable and quality fencing materials. If you are able to get all the above stated
factors, your gains will always be far more than your loss.

Another obvious trend that is common with fence construction companies is that
most of them are improvising on more means of making money, and as a matter of
fact, they are also involved in some form of building renovation works.

Interestingly, growth has been underpinned by low interest rates and sustained
demand for new single-family homes. Industry operators have benefited from the
recent rebound in home prices and revenue is expected to grow due to rising
demand from homeowners and developers.

Lastly, external factors such as housing and value of private non-residential

construction will impact performance in the Fence Construction industry. One thing
is certain for fencing company; if they are hardworking, creative and proactive, they
will always generate enough income to meet all their overhead and operational
cost, keep their business going without struggle and make reasonable profits from
the business.

8. Our Target Market

As a fencing company, our target market cuts across people (home and facility
owners) of different class. We are coming into the industry with a business concept
that will enable us work with highly – placed people in the country as well as lowly
placed people who are only interested in fencing their homes at an affordable price.

As a matter of fact, our target market is the whole of Ethiopia and we have put plans
in place to recruit freelance agents to represent our business interest wherever they
are located in Ethiopia. Below is a list of the people and organizations that we have
specifically designed our products and services for;

 Families who are interested in constructing fences for their home

  Corporate organizations that are interested in installing security fences in their
properties
 Farmers who are interested in installing agricultural fences in their farms
 Security companies
 The government of Ethiopia (Government contracts)
 Managers of public facilities who would want to engage fence construction
companies to help them construct fence for their facility.

Our competitive advantage

The fence construction industry is indeed a very prolific and highly competitive
industry. Clients will only hire your services if they know that you can help them
construct fences that will help them secure their homes.

NAD Fence Construction Company might be a new fencing company, but we can
boast of having links with suppliers, ability to expand and curtail operations rapidly
in line with market demand and access to niche markets. Plus, our management
team are gurus in the industry, who have what it takes to grow a business from
scratch to become a top brand within the shortest time possible.

Aside from the robust experience and expertise of our experts, we have a very
strong online presence that will enable us attract clients from all across Ethiopia.

Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category in the industry. It will enable them to be more
than willing to build the business with us and help deliver our set goals and
objectives. We will also engage freelance marketing agents on a commission level to
help us market our services.

9. SALES AND MARKETING STRATEGY

 Sources of Income

NAD Fence Construction Company is established with the aim of maximizing profits
in the industry. We have successfully built a vibrant real estate network that covers
the whole of Ethiopia so as to help us build a profitable business. Below are the
sources we intend exploring to generate income for NAD Fence Construction
Company;

 Producing fence panels and posts

 Installing residential fences
 Installing non-residential fences
 Installing agricultural fences
 Installing security fences
 Installing non – building fences
 Related consultancy and advisory services
10. Sales Forecast
It is a known fact that as long as there are home owners in Ethiopia, there will
always be need to for them to construct or re-construct from time to time to
conform with the trends in the neighbourhood or city.

We are well positioned to take on the challenges that are synonymous to fence
construction businesses in Ethiopia, and we are quite optimistic that we will meet
out set target of generating enough income from our first month of operation and
grow the business beyond Wolkite to other towns in Ethiopia within record time.

We have been able to examine the real estate market cum fence construction
business, we have analysed our chances in the industry and we have been able to
come up with the following sales forecast. Below are the sales projections for NAD
Fence Construction Company. It is based on the location of our business and the
fence construction and related services that we will be offering;

 First Fiscal Year: ETB 4,000,000

 Second Fiscal Year: ETB 6,500,000
 Third Fiscal Year: ETB 12 million

N.B: This projection was done based on what is obtainable in the industry and with
the assumption that there won’t be any major economic meltdown and any major
competitor offering same services as we do within the locations where we have a
strong business presence. Please note that the above projection might be lower and
at the same time it might be higher since some factors are beyond our control.

 Marketing Strategy and Sales Strategy

We are quite mindful of the fact that there are stiff competitions in the industry,
hence we have been able to hire some of the best business developers to handle
our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in
the construction industry and they will be trained to meet their targets and the
overall goal of the organization. The training is not restricted to only our full – time
employees but also includes our freelance brokers that are scattered all over the
country. NAD Fence Construction Company is set to make use of the following
marketing and sales strategies;

 Introduce our business by sending introductory letters alongside our brochure

to stake holders in the construction cum real estate industry, farmers and also
property owners throughout Ethiopia
 Promptness in bidding for fence construction contracts
 Advertise our business in real estate magazines and websites
 List our business on yellow pages (local directories)
 Attend real estate related expos, seminars, and business fairs et al
  Create different packages for different categories of clients in order to
successfully install any type of fencing in their homes/properties
 Leverage on the internet (social media platforms) and our official website to
promote our business
 Encourage word of mouth marketing especially when we have a home for sale.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to map out publicity and
advertising strategies that will help us walk our way into the hearts of our target
market. We are set to take the fence construction industry by storm which is why we
have made provisions for the effective publicity and advertisement of our company.
Below are the platforms we intend to leverage on to promote our fence
construction business;

 Place adverts on both print and electronic media platforms

 Place our flexi banners with our company’s logo and contacts in every property
we handle
 Sponsor relevant TV shows so as to communicate our brand and what we do
 Maximize our company’s website to promote our business
 Leverage on the internet and social media platforms like; Instagram, Facebook,
Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to
promote our business.
 Install our billboards in strategic locations all around Wolkite
 Distribute our fliers and handbills in targeted areas from time to time
 Attend landlord and resident association meetings with the aim of networking
and introducing our business.
 Ensure that all our workers wear our branded shirts and all our vehicles and
trucks are branded with our company’s logo in the future.

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our
potential clients to help them construct fences to meet their expectations.

Since we are not directly in control of the pricing system in the real estate industry
(building materials et al) we can only abide by what is obtainable when it comes to
fixing a price for a fence construction contract. But one thing is certain, we will
ensure that we deliver excellent jobs when have we are contracted to do so.

Lastly, we will ensure that we keep our fees below the average market rate by
keeping our overhead low and by collecting payment in advance. We will also offer
special discounted rates to our clients from time to time especially when they
recommend clients to us.

 Payment Options
At NAD Fence Construction Company our payment policy is all inclusive because we
are quite aware that different people prefer different payment options as it suits
them but at the same time, we will not accept payment by cash because of the
volume of cash that will be involved in most of our transactions. Here are the
payment options that NAD Fence Construction Company will make available to its
clients;

 Payment by via bank transfer

 Payment via online bank transfer
 Payment via check
 Payment via bank draft
 Payment via tele birr

In view of the above, we have chosen banking platforms that will help us achieve
our plans without any hitches and we will also pay our freelance sales agents with
same platforms. Our bank account numbers will be made available on our website
and promotional materials.

13. Start-up Expenditure (Budget)

Having done our due diligence, this is what it would cost us to set up NAD Fence
Construction Company in Ethiopia;

 The total fee for incorporating the business in Ethiopia – ETB 750.
 The budget for permits and license – ETB 2,000
 The cost for hiring Consultant – ETB 2,500.
 The cost for computer software apps (Accounting Software, Payroll Software,
CRM Software, Microsoft Office, and QuickBooks Pro) – ETB 7,000
 The budget for insurance (general liability, workers’ compensation and property
casualty) coverage at a total premium – ETB 5,400.
 The cost for payment of rent for a suitable Office facility with enough space in
Wolkite for 12 months at ETB 1.76 per square feet in the total amount of
– ETB105,600.
 The cost for office remodelling (construction of racks and shelves) – ETB 20,000.
 The cost for equipping the office (computers, printers, fax machines, furniture,
telephones, filing cabins, safety gadgets and electronics et al) – ETB15,000
 Other start-up expenses including stationery (ETB500) and phone and utility
deposits (ETB2,500)
 Purchase of working tools and equipment – ETB60,000
 Operational cost for the first 3 months (salaries of employees, payments of bills
et al) – ETB100,000
 The cost of launching our official website – ETB 600
 Additional Expenditure (Business cards, Signage, Adverts and Promotions et al)
– ETB 5,000
Going by the report from the market research and feasibility studies conducted, we
will need over two hundred and fifty thousand (250,000) ETB to successfully set up a
small scale but standard fencing company in Ethiopia.

Generating Start-up Capital for NAD Fence Construction Company

NAD Fence Construction Company is a business that will be owned and managed by
Dessalegn Gamini and his immediate family members. They decided to restrict the
sourcing of the start-up capital for the business to just three major sources.

 Generate part of the start-up capital from personal savings

 Generate part of the start-up capital from friends and other extended family
members
 Generate a larger chunk of the start-up capital from the financial institutions.

N.B: We have been able to generate about ETB 100,000 (Personal savings ETB 80,000
and soft loan from family members ETB 20,000) and we are at the final stages of
obtaining a loan facility of ETB 150,000 from Liyu Bidirna kuteba. All the papers and
documents have been duly signed and submitted, the loan has been approved and
any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the
volume and competence of their employees, their investment strategy and the
business structure. If all of these factors are missing from a business, then it won’t
be too long before the business closes shop.

One of our major goals of starting NAD Fence Construction Company is to build a
business that will survive off its own cash flow without the need for injecting finance
from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to
offer our fence construction services a little bit cheaper than what is obtainable in
the market and we are prepared to survive on lower profit margin for a while.

NAD Fence Construction Company will make sure that the right foundation,
structures and processes are put in place to ensure that our staff welfare are well
taken of. Our company’s corporate culture is designed to drive our business to
greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain
the best hands we can get in the industry; they will be more committed to help us
build the business of our dreams.

Check List/Milestone

 Business Name Availability Check: Completed

 Business Incorporation: Completed
 Opening of Corporate Bank Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: Completed
 Purchase of Insurance for the Business: Completed
 Renting of Office Facility and remodelling the facility in Wolkite: Completed
 Conducting Feasibility Studies: Completed
 Generating capital from the CEO / President and Business Partners: Completed
 Applications for Loan from our financial institutions: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In
Progress
 Design of The Company’s Logo: Completed
 Printing of Promotional Materials: Completed
 Recruitment of employees: In Progress
 Purchase of the needed working tools and equipment, furniture, office
equipment, electronic appliances and facility facelift: In progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business (Business PR): In Progress
 Health and Safety and Fire Safety Arrangement: In Progress
 Establishing business relationship with key players in the industry (real estate
bodies, construction giants and building materials dealers): In Progress

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