Business Plan
What’s the
business?
Escos, an acronym for "every second counts", will specialize in designing, installing, inspecting, and maintaining fire protection systems such as fire alarms, fire sprinklers, fire extinguishers, and other fire suppression systems.
Escos Fire & Safety
will provide fire protection and safety services to businesses, organizations, individuals on landside facilities and marine vessels.
Most buildings and commercial vehicles require an annual inspection of their fire and life-safety equipment to be conducted by a certified company in order be compliant. Typically during these inspections there will be equipment due for routine servicing. For example, fire extinguishers must be pulled and serviced every 6 years. Extinguishers and other gaseous cylinders must be hydrostatic tested every 6-12 years.
As a full service company, we will supply hazard analysis, surveys, testing, inspections and certifications, as well as systems design, installation and maintenance. Our service offering will include servicing and certifying Self Contained Breathing Apparatus (SCBA), fixed & portable gas detection meters/systems, as well as full service IMO immersion suit testing, repair, and certification.
We will provide these services all while strategically moving towards an expansion into providing these services aboard marine vessels where profit margins become significantly higher and competition is minimal.
We have a team of certified professionals who are trained and experienced in fire safety and can provide customized solutions based on the specific needs of each client.
Smoke and Fire Detection Systems
Sprinkler Systems
Fire Hoses
Much More
Fire Suppression Systems
Fire Extinguishers
Self-Contained Breathing Apparatus
Kitchen Hood Systems
Breathing Air and Medical Oxygen Compressors
Portable Gas Meters
What’s special about this business?
Obtaining these services is required by law to pass regulatory approvals.
This brings guaranteed profits and growth regardless of economic conditions.
Escos Fire & Safety | Business Plan
Table of Contents
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The Founding Team
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Bobby Safikhani
Chief Executive Officer
Bobby has previously worked in the industry both as a technician and an operations manager. He developed the current certification documentation primarily used aboard marine vessels which is still in use.
Bobby Safikhani will serve as the Chief Executive Officer. His responsibilities will include overseeing the vision of the company, forming the corporation, raising the necessary funds, execution of the business plan, acquiring customers, customer relations and serving as a technician in the first phase.
Current Licenses Held: None. Will obtain Cal-State Type 1, 2 & 3 and other various licenses.
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Derek J. Chun
Chief Operations Officer
Derek is currently the Operations Manager for Global Fire & Safety and oversees $20M in annual revenue. Derek has over 10 years in the industry serving both landside facilities and marine vessels. Derek’s talent for operational management in the industry has positioned Global Fire to see a consistent annual growth of revenue of 10-12% for the last 9 years.
Derek will serve as the Chief Operations Officer. His responsibilities directing operations will include vendor relations, cost estimates, managing the outfitting of our shop and vehicles, working with the C.E.O in developing a price list of services and parts offered, acquiring new customers, customer relations, job scheduling and overseeing the technicians.
Current Licenses Held: Cal State Extinguisher Type 1
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Marcus Rasmusson
Chief Technical Officer
Marcus has 10 years industry experience and will allow use of his current State Fire Marshall license to be used for the company's application to obtain our own license which is required.
Marcus will provide the labor required to equip a facility and mobile shop. Marcus will be our primary technician and will initially be paid on a "per-job" basis until we have sufficient revenue for a full time technician. Marcus also brings with him a list of clients that will use our services.
Current Licenses Held: Cal State Extinguisher Type 1, 2 & 3, DOT Approval, UN ISO, Emergency Lighting, High Pressure Filling.
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Jorge Salcedo
Senior Technician
Jorge Salcedo brings over 25 years of experience. He is the current field supervisor at Global Fire & Safety and is capable of performing every function of the industry from inspection, maintenance and repair services to electrical engineering on detection systems.
Jorge will provide assistance with jobs as needed.
Current Licenses Held: Cal State Extinguisher Type 1, 2 & 3
We intend to incorporate Escos Fire & Safety as an S-Corporation and will be incorporated in California.
A Board of Advisors consisting of the principal officer's and investors will be established.
Legal Structure
Market Analysis
The Industry
Industry Overview
The local fire protection and life safety solutions industry is a broad and very profitable market. It provides a range of products and services to protect people and property from fires and other emergencies. This includes fire detection systems, fire suppression systems, fire sprinkler systems, and other related products and services.
The strict requirements on company licenses and required certifications makes it an industry very challenging to enter.
Market Size
The size of the local fire protection and life safety solutions industry can vary depending on the size of the local market, but it is typically a multi-million-dollar industry.
According to a report by “Markets and Markets”, the global fire protection systems market was valued at $57.7B in 2020 and is projected to reach $93.5B by 2025, growing at a compound annual growth rate of 10.1%.
Using “Global Fire & Safety, Inc” in Oakland, California as a case study, they too have seen an average growth of revenue of 10% annually consistently over the last 10 years.
Competition
The local fire protection and life safety solutions industry is highly competitive when is comes to providing services on landside facilities, with numerous local and national players vying for business. While there is a healthy amount of competition when it comes to performing these services on the landside, it consists of mostly smaller scale companies operating on antiquated methods and outdated technology. It is an industry where winner can take all.
There is almost no competition when it comes to the marine industry with many barriers to entry such as technical expertise, regulatory requirements and a close-knit community of sea captains and port engineers. Global Fire & Safety, Inc. is the only main competitor when it comes to providing these services aboard marine vessels on the west coast. Key management and technicians from Global Fire & Safety, Inc. will be supporting our venture.
Regulatory Environment
The local fire protection and life safety solutions industry is heavily regulated, with numerous standards and guidelines set by government bodies and industry associations such as the National Fire Protection Association (NFPA), Department of Transportation, State Fire Marshal, American Bureau of Shipping (ABS) and the International Maritime Organization (IMO). Providers must be licensed and comply with these regulations to ensure that products and services meet the required safety standards.
Company Licensing Requirements
One of the barriers of entry to the fire protection & life safety industry is the strict regulatory requirements to obtain company licenses and vendor certificates. This barrier is significantly more challenging when entering the marine industry. Fortunately we meet the experience requirements and will have no difficulty in obtaining the necessary licenses and certificates to perform services. Our immediate goal will be to obtain the required company licenses to perform fire extinguisher services followed by vendor certifications in order to certify their equipment and also a C-16 contractor license which allows us to provide much more profitable services such as designing and servicing sprinkler systems. You can find information on both licenses and requirements below.
Please click the license type for more information.
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Requirements for a company license
The owner must have at least 24 months of experience with Type 1 & 2. Please provide written documentation of at least 24 months of experience in the servicing, maintenance, recharging, hydrostatic testing, and installation of portable fire extinguishers.
This shall be accomplished by having the fire extinguisher service employer submit letter(s) on their letterhead attesting to this experience. This correspondence shall indicate their length of employment, an estimate of the number and type of portable fire extinguishers that they have experience with and a statement that the individual has the necessary experience to obtain a license.
Additional documentation may include training certificates from the various portable fire extinguisher manufacturers and college classes related to Fire Science.
Additionally -
The company must have a certificate of liability insurance with a minimum of $1,000,000.00 in general liability coverage.
The company must have a Board of Equalization Resale License.
Other requirements
Type A, E
Copy of current D.O.T. Certification Letter along with D.O.T. Retester Identification Number (RIN)
Type A, F
Copy of the Certificate for the halogenated processor that bears the company name. (i.e., GETZ Certificate, etc.)
Type A,C,E
Describe method used to hydrostatic test low-pressure non-D.O.T. specification fire extinguisher cylinders.
Type B, C, D, E, F
Per section 595.5 (d) Every licensed concern that is not authorized to perform specific acts shall have on file with the Office of the State Fire Marshal reciprocal letters of agreement to perform those specific acts from licensed concerns who are authorized. All required reciprocal letters of agreement shall be submitted to the Office of the State Fire Marshal with each original, renewal, and status change application for license.
Any changes to reciprocal letters of agreement shall be reported to the Office of the State Fire Marshal within 15 days of the change. Please provide reciprocal agreements for the maintenance your company will not be licensed for. They must include:
Maintenance and recharging of water based fire extinguishers and external maintenance of carbon dioxide fire extinguishers.
Conduct hydrostatic tests of low-pressure fire extinguisher cylinders.
Maintenance and recharging of dry chemical, dry powder fire extinguishers.
Hydrostatic tests of high pressure fire extinguisher cylinders and perform internal maintenance and recharging of carbon dioxide fire extinguishers from fire extinguisher concern possessing this class of license shall be a D.O.T. approved cylinder requalification facility.
Internal-External maintenance recharge and recover halogenated agents from portable fire extinguishers. A fire extinguisher concern possessing this license shall have a listed Halatron closed recovery system.
Extinguisher licenses and classifications
Type A.
A class of license to service any or all types of fire extinguishers including (2), (3), (4), (5), and (6), below.Type B.
A class of license to perform maintenance and recharging of water based fire extinguishers, and external maintenance of carbon dioxide fire extinguishers.Type C.
A class of license to conduct hydrostatic tests of low pressure fire extinguisher cylinders and the fire extinguisher concern shall posses the test equipment as specified in section 594.3(a) for non-D.O.T. specification cylinders. A fire extinguisher concern possessing this class of license shall be a D.O.T. approved cylinder requalification facility if D.O.T. specification cylinders are tested and the fire extinguisher concern shall posses the test equipment as specified in section 594.2.Type D.
A class of license to perform maintenance and recharging of dry chemical, dry powder and external maintenance of halogenated agent fire extinguishers.Type E.
A class of license to conduct hydrostatic tests of high pressure fire extinguisher cylinders, and perform internal maintenance and recharging of carbon dioxide fire extinguishers. A fire extinguisher concern possessing this class of license shall be a DOT approved cylinder requalification facility.Type F.
A class of license to perform internal maintenance, recharge and recover halogenated agents from portable fire extinguishers. A fire extinguisher concern possessing this license shall have a listed Halon 1211 closed recovery system. -
C-16 - Fire Protection Contractor
A Fire protection contractor lays out, fabricates and installs all types of fire protection systems; including all the equipment associated with these systems, excluding electrical alarm systems.
Requirements
To get a C-16 license in California, you must prove a minimum of 4 years of journeyman level experience and pass a two-part state exam with the Contractor State License Board.
To get an exam date you must meet the following requirements:
Be at least 18 years of age
Have a valid Driver's License or USA Issued Identification
Have a Social Security or ITIN #
You must also have:
4 Years Journey Level Experience
A Qualifying Individual to sign off on your experience
A way to prove your experience if the state asks for documentation
The Industry
Overall, the local fire protection and life safety solutions industry is an essential industry that plays a critical role in protecting people and property from fires and other emergencies.
It is a heavily regulated industry that comes with guaranteed growth regardless of economic conditions and has many opportunities for technological advancements as the industry is currently mostly non-digital.
Customers
Commercial Buildings
Businesses, retail stores, and other commercial establishments that require fire protection and life safety solutions to ensure the safety of their employees, customers, and property.
Government Entities
Federal, state, and local government agencies, as well as public institutions such as schools, hospitals, and museums, that require fire protection and life safety solutions to ensure the safety of the public and their property.
Hospitality Industry
Hotels, resorts, and other hospitality establishments that require fire protection and life safety solutions to ensure the safety of their guests and property.
Industrial Facilities
Manufacturing plants, warehouses, and other industrial facilities that deal with hazardous materials and processes that require specialized fire protection and life safety solutions.
Marine Vessels
Ships, offshore platforms, and other maritime facilities that require specialized fire protection and life safety solutions to ensure the safety of their crew and equipment.
Oil & Gas Facilities
Oil refineries, petrochemical plants, and other facilities that deal with flammable materials and require specialized fire protection and life safety solutions to prevent accidents and minimize damage in the event of a fire.
Residential Properties
Homes, apartments, and other residential properties that require fire protection and life safety solutions to ensure the safety of their occupants and property.
Waste Management Vehicles
Waste management and other heavy-duty vehicles carry a risk of fire starting due to electrical faults or other reasons and because of this they are equipped with a fire extinguisher and built-in suppression system that must be serviced annually.
Customers
Overall, the customers for local fire protection and life safety solutions providers are diverse and include a wide range of industries and applications.
They all share a common need for effective and reliable fire protection and life safety solutions and are required by law to obtain annual inspection and other maintenance services.
Strategic Timeline For Implementation
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Phase I
Obtaining Cal-State fire extinguisher licenses and C-16 contractor license.
Establishing a shop in the San Francisco Bay Area and a service presence in Los Angeles. -
Phase II
Expanding original facility to provide additional services in-house and establishing a physical facility in Los Angeles.
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Phase III
Obtaining Coast Guard & ABS certifications and entering the marine industry.
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Phase IV
Digitizing the industry by developing and implementing our own cloud-based software.
Phase I
Obtaining State Fire Marshal licenses and establishing presence in the San Francisco Bay Area and Los Angeles regions.
In order to provide services, company licenses must be obtained through the state fire marshal license. There are several requirements for obtaining these licenses, including the establishment of a physical location that is equipped with the necessary tools and equipment, as well as a mobile service vehicle that is equipped to service fire extinguishers to obtain the basic license.
We are committed to fulfilling all of these requirements in the most cost-effective manner possible. To this end, we plan to establish a bare-bones, yet fully functional facility in the Bay Area, and to lease and equip two mobile service vehicles, with one vehicle stationed in each region.
During this phase, there will be some services that we will sub-contract out such as the Hydrostatic testing of certain cylinders. Initially, dedicated technicians will be paid on a “per job” basis.
Timeline: We will be fully licensed to perform services 2 months after funding received.
Phase II
Expanding original facility and establishing a physical facility in Los Angeles.
Once our company is fully operational, we will seek to expand our services and grow our facilities to accommodate additional equipment to perform services that we'll originally have to sub-contract out in phase 1. As part of our growth strategy, we will obtain a C16 contractor license in this phase, which will allow us to offer sprinkler systems and other related services.
Timeline: There should be sufficient revenue for expansion 16 months after establishment.
Phase III
Obtaining Coast Guard & ABS certifications and entering the marine industry.
As we continue to expand our operations in both regions, we will begin the process of obtaining regulatory certifications that will enable us to offer our services aboard marine vessels, ranging from small boats to large cargo ships. The profit margins conducting services on marine vessels are significantly higher with minimal competition.
Entering the marine industry would bring in an additional $10-18M in revenue within 3 years of obtaining the required certifications.
Timeline: Expansion into the marine Industry will take place in 4-5 years.
Phase IV
Digitizing the industry by developing and implementing our own cloud-based software.
Our expansion into the marine industry will coincide with the development of our own cloud-based certification and project management software. This innovative software will fill a crucial need in the industry, as no comparable software currently exists, and the marine industry is largely non-digital.
Timeline: We have already developed the initial blueprint/map. Development will take place 4 - 5 years after establishment or possibly sooner.
Service Call / Travel Fee
$49.00
Fire Extinguisher Inspection (Annual)
$16.00
Semi Portable Wheeled Inspection (Annual)
$50.00
Emergency Exit Lighting Inspection
$15.00
Hood System Inspection
$
Clean Agent Fixed System Inspection
$
Sprinkler System Inspection
$
Service Prices
Inspection Services
Maintenance Services
6 Year Maintenance - Dry Chemical Extinguisher
$20.00
6 Year Maintenance - Semi Portable Extinguisher
$60.00
Hydrostatic Test - Semi Portable Extinguisher
$275.00
Hydrostatic Test - High Pressure Co2 Extinguisher
$25.00
Hydrostatic Test - SCBA Cylinder
$25.00
Hydorstatic Test - Cascade Cylinder
$45.00
High Pressure Co2 Refill
$15.00
Startup Capital
As we can see from the following list, the company will have to sustain a total startup cost equal to $350,000.
Money has been allocated to pay technicians for their labor on a per-job basis initially in order to keep our overhead minimal. Additional funds have been allocated to cover wages for one year once it is appropriate to hire technician on a full time-basis. There will be sufficient revenue to pay the wage before the funded year expires.
Money has also been allocated to cover the physical location’s rent and vehicle payment for two years.
We want to require $350,000 as initial capital to cover the entirety of startup expenses.
Item
Cost
LICENSES
State fire license for business
C-16
NFPA
D.O.T Certification
$625
$4,000
$300
$250
INSURANCE
Workmans Comp as required
$3,000
$125 per month for two years.
SHOP SPACE
Shop/Office Rent/Utilities
Hopper
Liquid Level
Spare cylinders for gasses
Misc Labor assistance for set-up
Misc parts and inventory
$120,000
$600
$2,300
$5,000
$5,500
$20,000
Shop calculated at $5,000 per month for two years.
OFFICE SUPPLIES
(2) Computers and Monitors
(2) Laptops
Quickbooks
Router
(2) External hard drives
Phones for office
Printer, portable printer, copy/scan
Misc supplies
Communications
$2,500
$2,500
$800
$150
$400
$600
$1,200
$1,500
$1,500
VEHICLES
Mobile service vehicles
Logo stickers for vehicles (required)
Labor and parts to equip vehicles
$120,000
$1,000
$10,000
Two vehicles. One in LA and one in Bay Area
SALARIES AND SERVICES
Contracted Services line item is to pay technicians on a per-job basis initially
Technician line item is to cover costs for a full time technician once it is feasible to do so.
Contracted Services
Technician
Professional Services
$20,000
$40,000
$20,000
MISC
Gas (Transport to jobs)
Marketing material and uniforms
Reserves
$5,000
$3,000
$20,000