Looking for a beautiful business opportunity?
making homes beautiful
If you have building industry experience this is the perfect opportunity to earn a substantial income building a business worth much more than the in-going costs. See more in the video directly below.
1. Proprietor earnings from $250,000 plus PA with own salary
2. Guaranteed minimum sales of $40,000 per month 1st year
3. Exclusive area with a fully BCA accredited product and system
4. Outlay $100,000 > $130,000 subject to stock and building lease
5. Machinery portion of above (circa $60K) could be leased
6. A fully proven manufacturing process and operation
7. Excellent cash flow with 50% deposits and balance on delivery
8. Great sales/profit growth opportunity for goodwill capital gains
We have also just secured rights to a stunning range of Porcelain for our Le'Ceramic range.
Check these beautiful finishes in the video below.
What exactly do we do?
Some might say we are just a 'cladding fabricator', when really we make homes beautiful, by producing stunning, affordable, lightweight (and insulated) wall claddings to individual project specifications. From plans into a finished home, or simply a transformation of an existing retrofit, there is a wonderful sense of satisfaction and pride when it is completed. More than someone just supplying a product, we have created it, fabricated it, and produced it.
A one stop shop with a range of finishes sure to satisfy the most fastidious of building consumers, with a range of prices to suit different pockets.
Stunning finishes ... something for everyone
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About us and, Why us?
Operating and trading as SmartStone Systems in China we developed our thin stone lamination production methods in conjunction with our lightweight insulated facade fixing system, obtaining full BCA accreditation in 2016.
Manufacturing out of Shanghai with our own production facility we have since established market credibility and brand recognition. Predominantly in Australia, but also America and South Korea, through organic internet leads.
The recent Global Covid-19 outbreak has made us rethink our production out of China, due to future uncertainties. And the fact that travel restrictions were likely for some time yet.
Prior to the Covid outbreak we had also conducted a number of consumer surveys, and concluded we could achieve many times our current sales with local presence and by producing from local manufacturing centres because...
1. Local showroom would increase sales conversions considerably. Through canvassing previous contacts we believe up to 3 times just from from current leads generated. Face to face sales with appropriate showroom sample boards is considerably more effective in conversion than sales via internet, email and mailing of small samples as we had currently operated.
2. The perceived client risk/fear factor of dealing with us as a China entity is taken out. We are a high ticket item purchase requiring meeting and delivering to deadline etc, so there was also some fear of risk when dealing with an overseas entity. Feedback in our survey suggests we had lost many thousands in sales over the last few years due to this fear/risk factor alone. They did however, love the product, and the solution if offered them.
3. Producing locally caters for the many small orders $3K to $8K we previously received, but was not generally viable from China due to high freight/clearance costs with these small orders if sent consolidated freight. They did however add up to a good sales amount had we been able to accept smaller sales.
4. Nothing is standard it seems, be it for a new build or a retrofit. There is always a need for a custom solution for something required. Extended window reveals, obtuse or acute angle corners and otherwise. Though we did that from our China factory local production is much better equipped to deal with these requests. Secondly if there is any misinterpretation leading to a mistake from our China factory the potential wait time for replacement is much longer than can be facilitated locally. Local production eliminates clients fear of the length of time in potential replacement of short orders, breakages or mistakes. Particularly if a build project has to be left by an installer to wait for 6 weeks for such replacement. If any such issues these are usually small amounts which can easily be accommodated quickly with local production.
5. Whilst not something openly discussed there was an underlying fear factor in dealing with a Chinese company, even though it was owned by us. And we understand that, given some peoples prior experience or tales from others in regard to quality, packaging or delivery. Regardless of country, for general confidence, most customers would prefer to deal with a local production op.
6. A local fabricator is also better equipped to offer an installation service, either with their own team or with an associated trained contractor. 85% of our end consumers require our products “on the wall”, thus are more confident and comforted with the materials being installed by referred trade professionals. That said we have sold to a number of DIY customers who had a good experience with the installation process.
7. Local production facilities could also offer fabricated material using local stone quarry stocks, local imported stone stock and/or local porcelain materials where specified. This considerably reduces wait times and inventory costs, and satisfy those clients looking to use and support local materials.
The reasons outlined above were compelling in favour of establishing local production. We have recently broadened our range options to include reconstituted stone and porcelain faced materials. Thus offering lower cost alternatives to our natural stone, with much bigger format sizes being available. Thus widening our market sales reach potential. Our brands are 'EcoSmart Stone', being natural stone facing, 'TechStone' being our reconstituted stone facing, and 'Le'Ceramic', being the porcelain facings. These cladding material offerings are now being offered under the re-branded name of 'SmartClad', to differentiate from our original 'SmartStone Systems' which potentially intimates stone only material offerings.
With 7 years manufacturing experience we can offer a wealth of guidance in both production and sales. With our own designed and engineered dedicated diamond cutting machinery you can be assured of producing quality materials. Our mitered corner fabrication method makes perfect custom 90 degree corners a breeze.
Through our website inquiries we have regular sales leads for referral, aside from generating local sales. This means from day one you will have immediate sales potential without suffering the usual slow start up acceleration and the associated slow cash flow attached. Based on our experience it is with this advantage, we can offer a guaranteed monthly sales revenue for startup.
There are no limits to wall facing choice with Le'Ceramic porcelain in stunning wooden, concrete and stone look options. Zero maintenance is required for the life of building, except cleaning.
Beautiful timber, without the rot.
What is involved in this business operation?
On receipt of a customer order, say x body stone, z corners and y window/door returns, using the supplied dedicated machinery one laminates the stone or porcelain to a specified high density fire resistant insulation board. If natural stone is used it is then sliced in half, and you then have a lightweight cladding. Essentially a two for one material product yield compared to traditional cladding. From there it is then face finished to requirements and then trimmed to size. Alignment fixing grooves are then machined around the edges and ready for sale. From that stock, corners and window reveals are fabricated as required for the project order. These are easily done using supplied template dies. Occasionally there may be specials which require fabricating to specific size. Order complete material is cleaned and packed for shipping to the customer.
Is it really as simple as that?
Fundamentally yes. All machinery used is purpose made for handling each of the material finishes used in our product offerings. Joiners and fixing jigs assist any unskilled workers in getting perfectly square corners and window returns.
Is it dirty work?
Customer sales is the nice clean part. But yes, the production can be a little dirty as one might expect when cutting stone and ceramics. It is all done with wet diamond saws so there is little dust involved, just wet hands in most cases.
Are there any special skills involved?
Not really once trained, but ideally the owner or production manager should have some good construction skills when it comes to fabrication fundamentals and machinery operation and setting up for other non skilled workers. A little like setting up for timber cutting and joinery, just that it is with diamond saws. Sales does require experienced personnel with good building and construction understanding, especially in reading and interpreting plans for estimates and quotations.
What are we looking for in a potential production licensee?
Ideally the right person to own and manage this operation is someone with some in depth building knowledge. Be able to understand, read and take off building plans. Good sales skills and ability to offer solutions to clients problems. A qualified building professional or trades person with good communication skills would be a good fit. With this could also be the ability to directly offer or refer installation people for servicing the purchasing client. Many builders along with domestic clients require that service offering in order to complete a sale. A practical and good understanding of general machinery would be very helpful.
What would be involved in a local production and sales facility?
To produce up to 600 sq metres (6,500 sq feet) single shift monthly, a production area of around 400 sq metres (4500 sq foot) would be required. Bigger is better but depends on local costs. Water management for wet saws needs to be considered in a potential factory space, though bigger machines have containment recycling abilities. A covered outside area is also suitable for cutting and production.
In general, one man can comfortably produce in excess of 200 sq metres of face cladding per month. Other fabricated works such as corners and returns are charged according at a higher rate than face cladding.
With a manufacturing operation in mind we supply the relevant dedicated processing/saw equipment and jigs for the above production quantities in our product offerings. The value of this machinery would be circa $60,000.
You would need to secure suitable commercial/industrial premises for the operation with assistance from us if required. 3 phase power would be required along with 15amp single phase power. With the samples produced during the training period a showroom area would be fitted out for your prospective customers. This is important as customers and architects like to see and feel. As a high ticket item, with an average sale of $20K plus, thus customers need to be satisfied as to quality and delivery expectations. Likewise, for clients to take home, smaller samples would be produced. It is likely that factory renovation works allowance required would be circa $10,000 assuming works done by yourself.
Initial raw product materials for training and sample stock would be circa $10,000 allowing for a number of stone facing options/offerings.
We supply full machine setup assistance, hands on training and showroom sample setup for a period up to 4 weeks. This is part of the license fee, exclusive of any travel, accommodation and sustenance if required.
Initial basic stock and peripherals would be required so expect an outlay of circa $20,000. Future and ongoing stock would be procured around customer orders, supported by advance deposits paid.
An initial license fee of $30,000 is payable for a 10 year renewable and transferable license contract. Thus the overall the expected capital outlay would be around $100K > $120,000. Ideally additional reserve provisions of circa $20,000 would be prudent for unforeseen setup item requirements and working capital. Unless you would be supplying credit terms to customers, the business should be cash flow sustainable through order deposits and completion payments.
Drive a business you can grow exponentially, and enjoy the capital gains with the goodwill reward from your efforts when you sell.
Typically a businesses goodwill is valued at circa 2 times earnings after the proprietors salary, plus stock, machinery and fittings. With a projected profit after salary of say circa $100,000 per year would value a business after 2 years at circa $200,000 plus equipment, based on only 300 sq metres production per month.
Taking the business to 500 sq metres per month (approximately 3 full houses average) has the potential to increase the goodwill value to well above that.
Traditionally, as a trades person working on contract rates one gets paid for what they do only. Unless the income source is based around a guaranteed clientele there is no real sale-able goodwill value attached.
With an exclusive production license the opportunity to capitalize on your work efforts are fully rewarded when a sale or retirement comes around.
Cladding and insulating container homes
Pillars Fencing
Thin stone tiles
How secure is the future in this industry?
Realistically few businesses are 100% secure, however wall cladding seldom becomes obsolete, with every home requiring some form of covering. We are fortunate we have a system that can be simply adapted to suit different facing finishes, now and in the future. Also the ability to offer various options suiting all market price brackets. We do have product exclusively in the building industry with a good value proposition. That is not to say there may not be some future opposition, but quality production, delivery and branding should keep us to the fore.
The retrofit market is always ongoing, particularly with older un-insulated homes being a benefactor of a system like SmartClad.
Our thin stone cutting ability also allows us to compete very well in the traditional stone cladding supply market too. This then includes internal feature material potential not currently catered for. Most other cladding stone is 20mm plus thickness with split stone being up to 50mm plus, which is way too heavy for cladding to fibre cement substrates. This potential has not been factored into our current P&L forecasts. Like wise our 'FirePlus' materials which will be suitable for multi-story buildings where there are now stringent fire regulations. This is envisaged to go through the appropriate building code accreditation tests in early 2021
Other market areas providing extra market sales security are pre-made pillars, and fencing. The cladding and insulation of container homes which is now popular. And retaining walls as a prefinished water proof permanent formwork, which can simply be core filled with concrete.
Retrofit over un-insulated old fibro home After transformation
exciting times ahead
If you feel you have the abilities to drive this business to success, get in touch today.
A typical manufacturing day producing one of our products, split bolstered sandstone. There are 4 machine saws operating in the background. The noise of industry, so if one does not like this sound of productivity maybe it is not the business for you.
Please, this is a genuine business opportunity for serious interested parties looking to build and grow something exponentially. No tyre kickers or time wasters thank you.
DISCLAIMER : All the information here is accurate at the time of publishing. Some is a general representation of the industry which can vary by segments. Likewise figures stated can vary dependent on market and location. Prospective interested parties should undertake due diligence themselves to satisfy the validity of any information contained herein.