Business Plan on ZEE Scaffolding Company - Essay Prowess

Business Plan on ZEE Scaffolding Company

Business Plan on ZEE Scaffolding Company


1.0  Executive summary


ZEE Scaffolding is to start-up business situated within London Borough of Brent. Zee Scaffolding will offer distinct services in hire and erection of scaffolds, temporary roofs, safety netting, edge protection and emergency scaffolding. Furthermore, ZEE Scaffolding will provide scaffolding services to both English and Urdu speaking resident, real estates, institutions and structural gallery segment.


ZEE Scaffolding will have a sole proprietorship ownership structure. Ali Khan will be in charge of running the entire operation and making all decisions on behalf of the business.  Mr. Ali Khan’s educational qualifications include 14 GCSE’S – A*-C holder and HND in building management and surveying. Additionally, he has five years’ experience dealing with scaffolding operations and is fluent in English and Urdu.


ZEE Scaffolding will focus on providing scaffolding services to residential, real estates and structural gallery segment. Additionally, ZEE Scaffolding will also provide scaffolding services to hotels, retail and institutional centers such as schools and hospitals. In its growth and expansion strategy, it will cater for commercial and industrial as the business expands in the coming few years.


Funding for ZEE Scaffolding will be provided by personal contributions of £28,000 from Mr.Ali Khan and a bank loan of £10,000. The capital contribution will cater for start-up expenses such as:

  • Vehicle purchase
  • Scaffolding and equipment.
  • Marketing costs.
  • Salaries and wages.
  • Rent
  • Day to day operational expenses.


Various promotion mixes identified in order to create brand awareness and market the services to different target markets. ZEE Scaffolding will count on the word-of-mouth, internet advertisement and leafleting. Additionally, the company will also use to its advantage the window space to market its services through use of window stickers. Car stickers are also used to advertise the services offered.

The above is a cross-sectional analysis of what the business plan entails. Although the aforementioned indicate the main aspects of the business plan, an in-depth analysis of every aspect is discussed.

2.0  Introduction

2.1  The Company

Zee Scaffolding is unique to Wembley, London. Zee scaffolding is a start-up business located at 10 Magnet Road East Lane Business Park. Zee Scaffolding will offer distinct services in hire and erection of scaffolds, temporary roofs, safety netting, edge protection and emergency scaffolding. Furthermore, ZEE Scaffolding will provide scaffolding services to real estates, commercial, residential and structural gallery segment. Although the scaffolding market in Wembley is not fully exploited, the area has many construction and renovation activities that would add value to ZEE scaffolding. Moreover, ZEE Scaffolding product differential will provide a competitive edge over its competitors.

3.0  Ownership structure

ZEE Scaffolding will have a sole proprietorship ownership structure. Ali Khan will be in charge of running the entire operation and making all decisions on behalf of the business.  As a sole proprietorship, Ali Khan will enjoy full control and decision- making authority in regard to ZEE scaffolding company policies, investments and business strategies. Prominently, taxation is on the basis of the marginal rate that is much cheaper when compared to corporate tax for partnerships or limited companies.

It is important to note that sole proprietorship ownership structure has disadvantages such as bankruptcy, illness or death of a sole proprietor that may affect business continuity. ZEE Scaffolding will address such issues through instituting effective management structures. David and Pollington (2006) state that such will enable the company operates smoothly and consistently continue to provide its customers with top-notch and amicable scaffolding services.  Although all the losses and debts will be upon Ali Khan to settle, the company’s financial projections are healthy. Also, the contingency plan will ensure the business can contain such risks.

4.0  Location and Premises

   The premise in which ZEE Scaffolding is to start-up and establishes their business is situated within London Borough of Brent. The location for ZEE Scaffolding was carefully chosen due to the fact market similarities of Wembley correspond to the target market for the aforementioned concept. ZEE Scaffolding will be located at 10 Magnet Road East Lane Business Park in Wembley. The area is strategic to the location of ZEE Scaffolding because it will enable the company realize its objectives on the unique selling point. Additionally, the area has over 15,000 Urdu residential speakers, and this will provide a strategic market to the growth of ZEE Scaffolding since no other scaffolding company has ventured into this market.

 Furthermore, Wembley has shopping malls such as Westfield shopping Centre that houses several businesses where majority of residents’ shop. It will be able to attract the majority of customers through advertising their products. Besides, ZEE Scaffolding will work closely with Ash field Estates, Ark Construction Company and Builders Golden Trail Company to attract more business. According to Dave and Michael (2010), they are reputable companies and would add value to ZEE scaffolding hence creating core competencies. As well, the area has Scaffolding suppliers such as SA Scaffolding.

Property Address: 10 Magnet Road, East Lane Business Park HA9 7NA

Deposit: Security deposit £1084

Rent (Rate including rates): £13,000 per year/£1084 per month

5.0  Staffing

     Mr.Ali Khan and the other staff members will work for six days from 6 am to 8 pm. Mr. Ali Khan’s educational qualifications include 14 GCSE’S – A*-C holder and HND in building management and surveying. Additionally, he has five years’ experience dealing with scaffolding operations and is fluent in English and Urdu.  As part of short term goals, ZEE Scaffolding will employ one receptionist and two other scaffolding erectors. As the business is projected to grow over the next two months, ZEE Scaffolding will employ two more staff.  The extra staff hired will work in the following capacities;

  • One scaffold operative on a full-time basis.
  • One truck driver on a part-time basis. The truck driver should also have skills as scaffold operative.

   The truck driver offered three months probations, and his contracts may be improved to full-time basis depending on his overall performance. Alternatively, if the scaffold operative rejects the full-time contract, ZEE Scaffolding will look forward to employ him on a part-time basis. Moreover, the scaffold operative will work on fixed weekly shifts and is expected to accomplish his work hours in case of missed working time. Consequently, at the end of three years in operation, ZEE Scaffolding is expected to have eight staff.

PositionContract TypeMonthly Salary
1 ReceptionistFull Time£1,400
2 Scaffolding operativeFull Time£1,301.31

The total monthly salary after operating for three months: £4,002.62

6.0  Operations

          ZEE scaffolding will offer unique, quality and differentiated services over its competitors. Notably, ZEE Scaffolding will offer competitive pricing for its resourceful and reliable services. Moreover, the services and products provided are handled by experienced, qualified, dedicated and CITB certified personnel. Some of the services provided include supply, erect and dismantle scaffolds, provide scaffold designs and alarms as well as make temporary roof structures (Stewart, 2014). One of its unique services includes emergency scaffolding that will provide help in emergency circumstances. Such services include; emergency roof repair, repair of damaged residential or commercial buildings due to weather as well as obtain damaged scaffolds. ZEE Scaffolding will also cater for projects of any magnitude for new buildings and renovations. Moreover, ZEE Scaffolding provides safety netting and edge protection

7.0  Company strategy

    As a start-up business looking for opportunities to increase its sales and become successful, ZEE Scaffolding will implement various strategies to win over the markets. To begin with, ZEE Scaffolding will conduct market segmentation differential to ensure that the target market get maximum benefit of the services offered. Customer needs and emerging trends continue to impact the construction industry, and this will help ZEE Scaffolding gain competitive advantage. Additionally, the flexible nature of its pricing strategy enables ZEE Scaffolding offer competitive prices for its scaffolding services. Also, ZEE Scaffolding recognizes the overall importance of safety and health measures to the overall success of the business. Strategic leadership through training and development will ensure both reactive and pro-active monitoring.

8.0  Industry legal requirements

    ZEE Scaffolding will be registered a sole proprietorship venture operated by Ali Khan. ZEE Scaffolding registered at London borough of Barnet with scaffolding and hoarding permit. Furthermore, ZEE Scaffolding registers to CITB/CISRS and CSCS health and safety standards to conform to all standards and regulations (Carol and Albert, 2008).

9.0  Competition

        The proposed location for ZEE Scaffolding has both new and old scaffolding companies. In the proximity, M W Scaffolding UK Ltd and Links Scaffolding are considered as direct competitors. As much as we are competing with our rivals for the customer base, ZEE Scaffolding business concept has unique points of difference. The ability of ZEE Scaffolding to cater for two distinct market niches namely, structural gallery and Urdu speaking residents is a source of core competence. From the market research carried out, no other business has realized the potential of this market.

Name of BusinessLocationBusiness TypeDistance
Links ScaffoldingGreenford, UB6 8BGCommercial, residential and institutions1.8 miles
M W Scaffolding UK LtdLondon, NW10Commercial and industrial2.6 miles
Goodfellas Scaffolding LtdEdgware Rd, LondonCommercial, residential and institutions3.7 miles
Middlesex ScaffoldingRuislip, HA4Institutions and residential4.1 miles
Chiswick ScaffoldingBrentford, TW8 0JAResidential4.2 miles

Table 1: ZEE Scaffolding direct competitors.

10.0          Marketing Methods

10.1          Target market

    According to Judith (2006) target market, is a market segment identified by an organization dynamically and distinctively approached with precise marketing strategies and activities. In order to identify its target market, ZEE Scaffolding had to conduct target market differentiation and research.  Alex (2005) states that companies must differentiate between present, traditionally served and new target market segments, differentiate its products to meet present market needs and expectations. ZEE Scaffolding brands portray a unique characteristic for the intended segments.

    ZEE Scaffolding aims to satisfy the following markets to ensure it remains the best choice over its competitors. Their main target markets are residents of London Borough of Brent. It aims to offer scaffolding services to both English speaking and Urdu speaking residents in London. For example, the Urdu-speaking market is not well attended to by competitor scaffolding companies and thus it provides a strategic advantage to ZEE Scaffolding. Additionally, the area has approximately over 30,000 residents with Urdu speaking residents accounting for over 3,000. Moreover, ZEE Scaffolding also caters for commercial and industrial markets.

     Accordingly, it also targets educational and healthcare institutions as well as retails, hotels and structural gallery. It is important to note that, structural gallery one of the innovative segments ZEE Scaffolding aims to satisfy. Ryan (2009) considers it as a profitable segment, and many scaffold contractors are yet to venture into this market. London and entire United Kingdom has plenty of events, visual merchandising regions and advertisements such as billboards erection (Dave and Michael, 2010).  Therefore, ZEE Scaffolding will benefit significantly from this segment.

      Some of the bidding contracts that will commence next year include; renovation of Holiday Inn London, Conisborough College and Barking Abbey School. Additionally, Euro Hotel is planning to increase accommodation capacity for its guests as well as renovate other rooms to stay competitive in the market. Such provides ZEE Scaffolding with a viable market to provide its amicable, quality and outstanding services.    

10.2          Marketing methods

     According to the target market identified, ZEE Scaffolding employs promotion mix with different marketing elements that assist a company attains its goals. Furthermore, it influences the positioning of the selected product to a target market and aim to drive sales and enhance the image of their products. Some of the marketing methods used include:

10.2.1    Word-of-mouth

      Word-of-mouth marketing is the valuable techniques that can help ZEE Scaffolding acquire loyal clients. Additionally, word-of-mouth was chosen because positive customer reviews will automatically steer more customers to the business. As a start-up business, recommendations from friends, co-workers, or neighbors are a strategic means to lure and win the hearts of new customers.  According to Dennis et al. (2002), for word-of mouth marketing to succeed ZEE Scaffolding should offer quality and differentiated services and products to its customers. As part of strengthening word-of-mouth, loyalty programs implemented to ensure we get many clients as possible. The loyalty program will entail giving a bonus of £20 to customers’ who refer our service to any other customer. Also, all new customers will get a 10% discount off on the services the request.

     Additionally, in an attempt to lock-in customers, for clients who use our services up to the10TH time get one free scaffold service. Word-of –mouth is considered effective since referrals are made to the rightful target market. Word-of –mouth marketing is relatively cheap, and costs incurred in getting more customers are insignificant. Dennis et al. (2002) suggest that it fails to steer customer drive to our business, the customers may refer the business to other potential customers who may become long-term clients.

10.2.2    Internet advertising

     ZEE Scaffolding will also use internet advertising to market its services offered. Consequently, it will have a website that maximizes on the business exposure. Websites are important for start-up business since they are low-cost advertisement means, increase business visibility and services sold at any time.

10.2.3    Leafleting 

     ZEE Scaffolding recognizes the importance of leafleting. Predominantly, Garry& Michele (2009) alludes to the fact that the use of leaflets is one of the most effective techniques to communicate with potential and existing customers. For leaflets to communicate the message effectively, it should carry precise information to target market. ZEE Scaffolding leaflets will use captive messages to attract the attention of customers by communicating its far reaching benefits (Alex, 2005). It will outsource the services of Genie Graphic Design for design and branding of leaflets.

               Leaflet distribution will be in three-fold using strategic points of sale. In the first instance, distribution will be door-to-door in the residential areas and to construction contractors. Additionally, leaflets will be distributed by inserting them in construction magazines such as Design and Build UK and Building and Design and Construction Ltd. magazines. Lastly, another leaflet distribution point will be at Westfield shopping Centre and Wembley mall targeting both residential and commercial customers.

10.2.4    Car stickers

           Stickers with ZEE Scaffolding services and products will be available on the truck that transports the scaffolding. As the truck traverses different neighborhoods’ and areas, so it does expose our business to different target markets. Consequently, if the truck stuck in the traffic jam, many potential customers may have a look at our products that may later need our services. The stickers will have visible logos; services offered and contacts to reach our business. For a start, ZEE Scaffolding has one scaffolding truck whereby the stickers will significantly expose ZEE Scaffolding to a large market as the vehicles move around. Judith (2006) noted that stickers are profitable promotional tools attract potential customers since the truck acts as a moving billboard. As the business grows, ZEE Scaffolding will acquire an additional van with the same stickers that have our distinct products and service as well outstanding logo to differentiate from competitors.

10.2.5    Window Stickers

     Window stickers are chosen for the advertisement of ZEE Scaffolding services because it reminds customers about services offered. Consequently, ZEE Scaffolding window space will be used effectively to create more brand awareness. The location of the business is in a busy area that flocks many people. Dennis et al. (2002) state that window stickers create the difference between moving customers and those customers who may walk in seeking our services. Therefore, window stickers will significantly expose ZEE Scaffolding and attract more customers.

10.3          Marketing cost

Marketing StrategyBudget allocation  
Word-of-mouth£20 for any referOngoingThe amount may change depending on the number of referrals
Leafleting£130One-off costOutsource the services of Genie Graphic Design.
Car Stickers£100One-off costStickers will be placed strategically at the rear end, driver and passenger side to expose the business fully.
Window stickers£100One-off cost 
WebsiteThe website designed at £540 and monthly payment of £10 for hosting beginning February £660 to be paid for the whole year.

11.0          Contingencies

              To leverage their risks, ZEE Scaffolding aims to adopt a winning risk management system. Such strategies support their business in becoming resilient, trustful and successful (Garry& Michele, 2009). Importantly, much emphasize lies on risk management and internal controls in leveraging obstacles and risks. Course of action adopted by ZEE Scaffolding intends to shield them from potential problems that prowl at any moment. As an alternative course of action, ZEE Scaffolding aims to protect their business reputations, brand, business strategies and mostly importantly its customers.

Customer dissatisfaction is another eminent risk that may affect the company in terms of quality or unit price. In the event such trends are noticed; ZEE Scaffolding will upgrade its scaffolds as well as offer professional support.  Safety and quality scaffolds inspected on a weekly basis. Additionally, in order to cut down on costs and increase the bottom line, different cost control strategies will be employed. For instance, seeking alternative scaffold suppliers with better prices and synchronizing transport logistics. Also, effective work schedules and planning to save on labor costs. In order to enhance safe working conditions and use of scaffolds, staff trained on health and safety handling of scaffolds.

12.0          SWOT Analysis

12.1          Strengths

                ZEE Scaffolding will have a competitive edge over its rivals for two main reasons. Firstly, it has a large and differentiated market for its services, and it also offers state-of –art scaffoldings to their customers. Its main idea is to cater for structural gallery market, and Urdu speaking residents that remain the untapped market. Also, its strength lies in the ability to sell its service online using their highly visible website and limited competition in the area. As well, limited start-up risks and high gross margins and Ali Khan’s experience creates high entrance barriers.

12.2          Weakness

            Limited start-up capital affects the operation of the business in terms of marketing, conducting market research and improving on the technological capabilities. ZEE Scaffolding faces weaknesses such as price flexibility and competitors offering similar services. In regard to price flexibility issues, ZEE Scaffolding will seek alternative scaffold suppliers and implement cost control strategies in order to adjust their prices accordingly. Moreover, marketing strategies used will enable the company differentiate its services from competitors?   

12.3          Opportunities

                Various opportunities exist in regard scaffolding services and products. An opportunity exists in risk assessment and consultation services. Moreover, organic and green supplies will attract customers who are health conscious. Another significant opportunity that exists is venturing into untapped markets that are less costly but of high quality such as event staging. The markets can be beyond geographical borders of London.

12.4          Threats

             ZEE Scaffolding experiences various threats such as; online retailing from different convenience scaffold contractors. Notably, price wars affect ZEE Scaffolding to large extend leading to price reductions that affect profitability. As well, competition from Links Scaffolding and M W Scaffolding UK Ltd and other scaffold contractors pose a significant threat since they offer similar services.

13.0          Finance

13.1          Startup capital

Funding for ZEE Scaffolding will be provided by personal contributions of £28,000 from Mr.Ali Khan and a bank loan of £10,000. The proposed start-up capital is as follows:

Sources of FundsInvestment TypeAmount
Personal SavingsCapital Contribution£28,000
Bank LoanLoan Contribution£10,000

13.2          Start-up finance

    From the expenses worksheet, ZEE Scaffolding requires £18,832.07 for start-up operating expenses and a cash flow of £28,000. The break-down analysis indicated in the cash flow analysis.

14.0          Bibliography

Alex, C. (2005). Brand Protection: Understanding and Managing Threats to Your Brand London:

Ash gate Publishing Company

Carol, T.H. and Albert D., 2008. UK construction market survey, Q1 2013. Structural Survey,

Vol. 26(4).

Dave C.A., and Michael J. S., 2010. Excellent contractor performance in the UK construction

industry. Engineering, Construction and Architectural Management, Vol. 17 (1), pp.35 – 45.

David, M. and Pollington, H., 2006. Change in the Construction Industry: An Account of the UK

Construction Industry. London:  Routledge.

Dennis, N. B., Kenneth, C. S., & Drue K. S. (2002). The brand dependence scale: measuring

consumers’ use of brand name to differentiate among product alternatives. Journal of Product & Brand Management, 11 (6), pp.343 – 356.

Garry, T., & Michele, F. (2009). Brand Storming: Managing Brands in the Era of Complexity

(2ND Ed). New York: Palgrave Macmillan

Judith, E., 2006. Leadership Scaffolding. Amsterdam, Netherlands: Elsevier Publishers.

Ryan, G., 2009. Schedule for Sale: Workforce Planning for Construction Projects. Bloomington,

Indiana: Author House publishers.

Stewart, C., 2014. Access Scaffolding. London: Routledge Publishers.