ADAMSON University

College of Engineering
Civil Engineering Department
CE 431- Elective 3: Entrepreneurship for Civil Engineers

Proposed Business Plan

KIPS
RENTAL

PRESENTED BY: SOBRECAREY, KYLE P.

Presented to:
Dr. Tomas U. Ganiron Jr.
Professor, Entrep. for C.E.
 TABLE OF CONTENTS
• EXECUTIVE SUMMARY
• COMPANY DESCRIPTION
• SERVICES
• MARKET ANALYSIS
• MARKETING STRATEGY AND IMPLEMENTATION
• ORGANIZATION AND MANAGEMENT
• FINANCIAL PLAN
 EXECUTIVE SUMMARY
• KIPS Construction Equipment Rental Company is the construction heavy
equipment rental business such as bulldozer, excavators, tower crane, dump
truck and wheel loader based in the Philippines. We offer flexible terms for
your equipment leasing needs. We have monthly, weekly, daily rates, even
hourly rates that are configurable to suit all your project requirements.
 OBJECTIVE
THE OBJECTIVE OF KIPS CONSTRUCTION EQUIPMENT RENTAL
• To meet the customer satisfaction by providing the highest quality of
services and products.
• To continously enhance our quality management system.
• To understand, anticipate and meet unique requirements of customers
 MISSION

Our mission as a rental company is to create a better service for

many people. Build the best service, cause no unnecessary harm, use
business to inspire and implement solutions to the construction
crisis. And to ensures that the on-going construction is making
progress with ease with this heavy-duty equipment.
 GUIDING PRINCIPLES
• OUR SERVICES
- To enlighten them with the knowledge on how to properly use this heavy-duty equipment
to avoid unnecessary accidents, and for the safety of others.
• GRATITUDE
- Let the feel your sincere gratitude, show them that this company is worth it, so that they
can feel the warm and friendly environment and are willing to return to the company.
• BEING MINDFUL
- Always place the priorities of the customers and the employees at the top of the list.
Because without them, there is no business.
 KEYS TO SUCCESS
• Excellent products and services that will build and maintain customer loyalty.
• A business location that will assure high company visibility and a high flow
of customers.
• Proven management ability to successfully run a similar business.
• Our commitment to continuous improvement and total quality services.
 COMPANY DESCRIPTION

The KIPS Construction equipment rental will be located in

Tanauan Batangas, wherein the clients can easily get their equipment
due to the wide land space. The company will be fully owned by
Sobrecarey, Kyle P.
The company will be open 6 days a week with hours as follows:
DAY TIME
MONDAY 8:00 AM – 5:00 PM
TUESDAY 8:00 AM – 5:00 PM
WEDNESDAY 8:00 AM – 5:00 PM
THURSDAY 8:00 AM – 5:00 PM
FRIDAY 8:00 AM – 5:00 PM
SATURDAY 8:00 AM – 4:00 PM
 OWNERSHIP
The company will be owned by Sobrecarey, Kyle.
Kyle is currently taking up Civil Engineering in
Adamson University, he hopes that in 2020 he would
be a degree holder. And establish his business in the
following years to come. Having a bit of knowledge in
construction, he plan on helping those company that
are lacking heavy-duty equipment and power.
 LEGAL FORM

KIPS Construction equipment rental will

be organized by a sole proprietorship,
wholly owned and operated by Sobrecarey,
Kyle. KIPS rental will be registered in
Batangas,
 START-UP SUMMARY

The estimated capital needed is Php 65 million.

The cost for the company itself, the employees,
the equipments, and as well as the lands and its
location. Bank loans will be needed for the
estimated capital. And for the remaining capital
will be funded by the owners own salary and
sponsors, for a long term plan.
 LOCATION AND FACILITIES

The company will be located in Batangas, where the lands are

very wide for the equipments to be placed, and the demand for
the equipments is very high, due to the on-going constructions,
not just in Batangas, but the cities and provinces surrounding it.
And the equipments needs to be stored in a large warehouse so
that it can be clean and ready to use.
 SERVICES

The KIPS Construction equipment rentals will provide a high quality of

reliable and construction well maintained heavy equipment for construction.
Including cranes, excavator, bulldozer, wheel loader and trailer truck. Our
services include training and product demonstrations, as well as informetion on
the latest market trends in the construction industry.
 PRODUCT
• The KIPS Construction equipment rentals will carry a variety of quality
products what will enable us to provide full service delivery to companies.
Our underlying philosophy in selecting products is to choose lines that will
bring consistent quality, competitive prices, and product satisfaction t our
clients or customers. We have personally researched and examined each of
the following products that we offer to ensure the quality we guarantee.
 PRODUCT
Our products includes:
• BULLDOZER
 PRODUCT
• EXCAVATOR
 PRODUCT
• TOWER CRANE
 PRODUCT
• WHEEL LOADER
 PRODUCT
• TRAILER TRUCK
 PRODUCT
• DUMP TRUCK
 PRODUCT
At this time, the majority of these products or equipment are available in
Caterpillar stores and also in some of other second hand sellers of equipments.
The KIPS Construction equipment rentals will make these products or
equipments available through our high quality, full service delivery, bringing
them to your construction sites.
 COMPETITIVE COMPARISON
• Guzent Inc. - Construction Equipment Sales & Rentals
- Guzent Inc. offers sales and rental of construction equipment in the Philippines. Based in
1237 EDSA, Balintawak, Quezon City, Metro Manila, Philippines, Guzent Inc., offers cranes, boom
trucks, power 
• JMC KONSTRUKT, INC.
- JMC KONSTRUKT is known as a multi-faceted excavation contractor and one of the
heavy/base landscaper in Cebu, Philippines. With its Office located in Metro Mandaue, Cebu City,
offers a full range of services including: excavation, site development, demolition, rental equipment
provider for heavy excavation and dumps, underground utilities work, grading and erosion control,
delivery & disposal of fill material. With its maintenance shop located in Liloan, Cebu traditionally
performs work in the Visayan Region, primarily the Province of Cebu, Bohol and Negros.
 COMPETITIVE COMPARISON
• Northway Automotive & Machinery Recon Center
- Construction Equipment and heavy equipment: mixers, compactors, vibrators,
cutters, breakers.
• Golden Dragon Corporation
- One of the leading construction firm in providing general construction,
foundation works, ports and harbor and horizontal construction. The company has
earned trust and satisfaction from local and international clients.
They have 12 types of machines and 10 kinds of equipment per type of machines
 SUPPLIERS
The KIPS Construction Equipment Rentals will purchase equipments directly
from manufacturers. Because this will cut off the broker or middle man fees,
this allows us to reduce some expenses, while providing our customers with
competitive prices.
 MANAGEMENT CONTROLS
• The management ensures the safety of the clients and workers safety.
• Will have a training seminars for the equipments, to ensure the workers can
operate the equipment properly
• Will conduct a toolbox meeting twice a week
 FUTURE SERVICES
• The KIPS Construction equipment rentals intend to expand its doors to
become a nationwide company and after maybe 10 years it will become a
known provider for the whole Asia. We will also offer a showroom that will
feature equipment, supplies and information on marketing services with
examples of marketing and promotional material available to customers.
• With the addition of the product showroom, The KIPS Construction
equipment rentals will offer customers training demonstrations what will be
presented by trained equipment experts fron the industry.
 MARKET ANALYSIS
• The company expects to participate in a variety of different industries,
including commercial and residential construction and farm machinery. The
following sections will describe the industries in which KIPS Equipment
Rental Company hopes to compete.
• The boom in the area is primarily in response to new business and
employment opportunities in the area. Similar rental service businesses that
traditionally do well with this population have proved the potential for KIPS
Equipment Rental Company.
 INDUSTRY ANALYSIS
• The equipment rental business is one of the business that is always on
demand and that is because most of construction business does not have the
need to buy or the means to have such equipment, they just rely to
companies like ours.
• Also, some of the heavy equipment are used few times by the last users and
there is no need to waste money on buying equipment to use only once or
twice that’s why business rental companies are known in this kind of
situations. In this line of business entrepreneurs must have the ability or
innovative ideas to stay on top of the line.
 MARKET SEGMENTATION
Next illustration shows the market segmentation, gives the total potential
number of businesses that could rent our equipment in the local area. Most of
our equipment that could rent is the construction industry about 64 percent
while in mining industry about 25 percent and in agricultural industry about 11
percent.
 Market Analysis

Agricultural Industry
11%

Construction Industry
Mining Industry
Agricultural Industry
Mining Industry
25%
Construction Industry
64%
 TARGET MARKET SEGMENT
STRATEGY
There are all sorts of people who make rent equipment for several purposes;
this means that we cannot restrict our customers to a certain group as we have
a huge target market to cater here in the Philippines. Asides from having a large
number of potential customers, we are also strategically located here in
Batangas, and have also chosen several other strategic locations in which to
create awareness about heavy equipment rental.
 COMPETITIVE EDGE
• Purchase additional equipment.
• Increase Advertising.
• Obtain financing.
• Hire more employee
 SALES STRATEGY
• KIPS Equipment Rental Company is a new entity, we recognize that we will
need to prove our company’s worth to our customers and Investors, in order
to earn respect and business.
• Consistent, customer centric service is the absolute requirement in the
hospitality industry, and so it is for all our employees.
 ORGANIZATION
SOBRECAREY, KYLE P.
PRESIDENT

• ACCOUNTANT
MANAGER OF • PURCHASING MANAGER
FINANCE • MARKETING EXECUTIVES

• RENTAL AND LEASING MANAGER

MANAGER OF • TRUCK DRIVERS
SERVICE AND • HR AND ADMIN MANAGER
LABOR • MAINTENANCE MANAGER
 MANAGEMENT TEAM

KIPS started since the owner was concerned

about establishing a business. After long planning
KIPS decided to consult those who is successful
in this business industry
 MANAGEMENT TEAM GAPS

We depend on our professionals for some key management tips.

We don’t have a strong background in preventive maintenance for
our equipments. As we grow, we need to develop more
manufacturing techniques and more mass production.
•Import Assumption

FINANCIAL PLAN
IMPORTANT ASSUMPTIONS
 

Year 1 Year 2 Year 3

P l a n
Month 1 2 3
Current 10.
Interest 00% 10.00% 10.00%
Rate
Long –
T e r m 10.00% 10.00% 10.00%
Interest
Rate
T a x
Rate 12.00% 12.00% 12.00%
BREAK-EVEN ANALYSIS
THE END