Introduction
Compton Geotechnical Associates Inc., (CGA), will provide innovative solutions to geological engineering service throughout Maine.
CGA will enter into this limited geographical area where it can leverage its staffs’ existing collective reputation into long-term contracts centered on excellent service and cost effectiveness. We believe that we can service this limited market better than larger firms and we have better service packages at a more reasonable cost than existing competitors of equal size.
The Company
CGA is a Delaware limited liability partnership that will be registered for tax purposes. Its founder is Mr. Martin Compton, an ex-head of Wilson and Brown, Inc.’s engineering geology department. He has assembled a respected group of engineers, geologists, and graphic artists who have combined 35 years of industry experience.
The company currently has only a small number of private investors. They do not intend to become public. The company’s main office is located in Augusta, Maine. The facility includes a soil/rock/water test lab, conference room and office spaces. The company plans to start offering its services in January 1, 2001.
The main clients of the company will be large construction companies, local, state, and municipal governments, as well as utility and water companies. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other geo-engineering firms.
The Services
CGA provides comprehensive geoengineering solutions to diverse clients. Our services fall into two main categories of geotechnical engineering services and construction monitoring/laboratory testing.
These services include slope stability analysis, surface and groundwater evaluations, bluff analyses, laboratory analysis for soils, rocks, and groundwater as well as load testing and settlement analysis. Every project is unique and tailored to the client.
The Market
This market is full of potential, especially because many potential customers are required to perform geotechnical surveys and monitoring prior to construction.
Since the 1990s, the geoengineering sector has grown at an extremely rapid pace. According to Journal of Hydrology & Geoengineering over the past five-years, the industry averaged around 22% annually. Geotechnical consulting businesses are made up of thousands of smaller organizations and individuals who work for a few well-known companies. These companies include large international names-brand corporations and tens to thousands of individuals.
Financial Considerations
You will need to start-up assets [see the Start-up Table]. This includes expenses (see Start-up Table) and cash to support operations until revenues are acceptable. While most of the company’s obligations will come from outside investors and management investments, we have secured [see Startup Funding table] in current borrowings from Bank of America Commercial Investments. This principal will be paid off in two year. Charter Bank of Augusta will repay a long-term loan of [see Start up Funding Table] within ten years.
The company anticipates reaching profitability in the first year and doesn’t anticipate any cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be about $8,000. We expect to see a break-even point with three projects each month.
1.1 Objectives
Compton Geotechnical Associates (CGA), has the following three year goals:
- By year two, break-even is achieved.
- Establish long-term deals with at most four clients
- To build long-term relationships and word-of mouth marketing, we must achieve a minimum 95% customer satisfaction rate.
1.2 Mission
CGA is committed to providing innovative services in geological engineering. It also strives to establish lasting relationships with its clients through long-term, effective service delivery.
1.3 Keys to Success
CGA’#8217’s key to profitability and long-term survival are: