Business Plan Competition December 6-7, Prison Entrepreneurship Program P.O. Box Houston, TX (832)

Transcription

1 Business Plan Competition December 6-7, 2018 Prison Entrepreneurship Program P.O. Box Houston, TX (832)

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3 Top-Notch Janitorial Service If in need of a perfect clean, contact Top-Notch to fulfill your needs! Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...3 CUSTOMERS...3 DIFFERENTIATORS...6 EXTRAS...7 MARKETING...7 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution Top-Notch janitorial services main purpose is to provide proper cleaning to our customer, tailored to their specific needs. We guarantee 100% customer satisfaction. Top-Notch cleaning recognizes the deficiency of proper cleaning methods in the market due to the lack of properly trained cleaning professionals. Top-Notch cleaning not only provides industry leading methods but provides the proper training and supervision for its employees and management. Customers Differentiators Extras We focus on providing the best results in customer service. Offices, office buildings, and warehouses are our primary targets. We will provide one free clean in a small office space as an example of our quality work.. I have 15 years experience in the cleaning industry. Deep cleaning every time Reliability Responsive Affordable Fast Customize procedures Specialized services Marketing Start-up Costs Financials & Extras We will advertise using our company website, Facebook, Craigslist, and Angie s List. Owner Inv. - (Cash) $ - Owner Investment (Equipment) $ - Vehicle/equipment Loan $ 20,000 Unsecured Debt/Loan $ 5,000 Equity Investment $ 12,000 Total start up costs: $ 37,000 Sales: $ 115, % COGS 50,800 44% Gross profit 64,600 56% Overhead 19,500 17% Pretax income 45,000 39% Tax expense 11,200 10% Owner withdrawals 18,000 16% Net income $ 15,700 14% Personal Fit Louis brings over 15 years of experience to this industry. He is also OSHA certified. Louis is very eager to prove his business in the market place and to be a successful entrepreneur.

6 PERSONAL FIT Louis is the founder and owner of Top-Notch. Louis will be responsible for ordering material, marketing as well as overseeing all company business. Louis brings more than 15 years experience to this industry. He also worked for Fuzzy Radiator and as a welding fabricator for another company. At Fuzzy, Louis was responsible for using the cutting torch and he very knowledgeable at this position. Louis has accomplished certificates in two vocational trades, Small Engine Repair and Bricklaying in the years of 2006 and In 2008, he achieved his General Equivalency Diploma while at the Robertson Unit. He received his certificate training as a janitor in 2016, and he was OSHA certified in OPPORTUNITY Explanation: According to Entrepreneur Magazines, customers have experienced poor-quality work, damage to property and even theft. At Top-Notch, we offer quality service, operate with integrity and charge reasonable prices. Can I solve the problem given my skills and personality? Yes, by offering quality service with integrity and with my prior experience. Is the customer looking for a more holistic solution than his or her immediate complaint? Yes, by not having their property damaged or stuff missing. Do I need to do all of the work myself or can I hire others to help me and still maintain quality? With culture development-implement trust to ensure quality work. Is there growth potential to expand my business, or is this a dying market? Cleaning services will forever be around, so yes, I believe I can. How soon can I get my business up and running? I will open in the summer of Is this something that will take a lot of cash to get started or is it more of a question of hustle? I believe the total start-up cost will be at about $30,000. Is this something I would be proud to share with my family and parole officer? Specifically my family. I want to prove to my family that I can be successful. This will please the parole officer as well. Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? Yes, because I will be done with parole by then. Would my business start as a part-time venture or need to be full time? I am aiming for full-time due to the experience I have in the janitorial industry. Top-Notch 2

7 SOLUTION Explanation: We strive to keep our customers happy and satisfied by providing a clean and safe environment and staying consistent with those core values. Is what I am offering filling the customer s real need? Everybody wants to live in a clean environment. I would hope with the proper cleaning we provide, our customers will be satisfied. What are the benefits (not features) that I am providing? A clean and safe environment. Why can I do this better than another business (competitor)? We operate with integrity and give quality cleaning while focusing on producing the best results in customer s service. How will I deliver this better idea to my customers? I will deliver this through word of mouth. I will offer my clients their first cleaning package half price to give them an idea on how good my service is. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? My cleaning service promises our customers an on time cleaning service that delivers on time results. Is my solution consistent with my passion for selling? We will provide quality cleaning with integrity by polishing the industry image with professionalism and perfection. Is the price of my solution equal to or less than the customer s pain? We offer free estimates as well as reasonable prices. Is the approximate cost of my solution lower than the price? Not at this point yet. Maybe a little lower if not equal. Do I need a fixed location (Storefront) or is this a mobile business? It will be a mobile business as of now. Do I offer a guaranty or return policy? We offer a guaranteed re-clean if your needs are not met the first time. CUSTOMERS Explanation: Our target customers are Houston area businesses seeking janitorial services. Demographics: Will my service have different appeal to men versus women? We will have the same appeal to both men and women. Everybody loves to walk in a clean environment. What is my ideal customer s age (children, young adult, middle aged, mature)? Due to it being offices and office buildings, I would have to say middle age. Top-Notch 3

8 Does my customer need to be married, single or does it matter? That is not important to my company, married or single can get the same quality clean. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? I am hoping to have people that speak other languages on my team just in case that does happen. What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? We are appealing to the holistic business owner who wishes to provide a clean environment for employees and customers. Income: Does my customer need a certain income (rich, middle class, poor)? In order to provide proper income you must at least be in the middleclass income range. Does my customer need to own specific assets (car, house, boat)? I target small to large businesses, expanding into customer specific needs. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? Through Facebook, websites, Craigslist, Nextdoor, and Angie s List. Do I go to my customer (home service) or does my customer come to me? I will always go to my customers. Whatever their needs are, I will be there. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? By me being a commercial service I would say where offices and buildings are located. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. This is something I am not familiar with because I have never been to Houston but I would want the customers I target to be at least 45 minutes to an hour apart from each other. How easily can I find this customer (one at a time or they will provide referrals)? I would want them to provide referrals. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I can do it both ways, in a group or individually. Once I sell to a customer, what is the likelihood that they will buy from me again? The likelihood is 100%. The reason why I say that, is my company operates with integrity and excellent quality work. We get the job done in a timely manner. Am I selling to a wholesaler, retailer or does it matter? Top-Notch 4

9 We focus our cleaning service on any commercial buildings. What industry is my customer in? As long as they have offices they are the customers I am looking for. What size customer do I want to serve (large/small, single/multiple locations)? We will have the ability to scale-up our business to suit our customers needs with the desire to acquire a contract for all a businesses locations. Will my customer require special insurance (construction bonding, liability insurance)? My company will have the insurance policy. Does my customer require 24/7 service? This is not going to be set up as a 24/7 emergency service. Do I have the capacity to meet the customer s demands? I will be able to meet my customers demands. Will the size of a customer allow me to develop other clients or will I be hostage to one company? I will be organized and able to handle all of the business that comes my way. Top-Notch 5

10 DIFFERENTIATORS My Direct or Their Promotion Price Their Advantages Competitors Indirect Disadvantages Janitorial Inc. Direct Newspaper ads High Experienced staff Poor quality and Yellow cleaning service Pages My Differentiators I will always offer quality cleaning and on time services Clean and Go Direct Newspaper ads and Yellow Pages High Locally owned business Poorly trained staff Affordability Amy s Cleaning Service Direct Newspaper ads, and Yellow Pages High Well-known local company Cost We will offer trained and qualified staff Pristine Cleaning indirect Yellow pages low Affordability Poor quality cleaning service Very experience 15 years of cleaning and offer not too low pricing Top-Notch 6

11 EXTRAS External Extras: Do you have a connection with a supplier in your industry? At this time no, but I will be working to develop a connection once I am up and running. Do you have access to a favorable location for your business? My location will be on the south side of Houston. Are you going to be the first company of your type in your chosen area operations? There are many janitorial services, but with what I offer I believe I will be the first. Internal Extras: Do you have a new or cutting edge concept? I have 15 years experience in the cleaning industry and take much pride in whatever I clean. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? Whatever their needs maybe I will offer my services to them that can meet their needs. I will be an after-hours service, but always on call throughout the day when inneed. Are you an especially charming or personable person? I have a smile that will light up a room and am very respectful to anybody I meet. I am very much a people person with integrity and self-discipline. MARKETING Message: What are three things your company name (with no other information provided) says about your company? We provide our customer with a quality service, skilled workers, and affordable rates. What is your tagline? If in need of a perfect clean, contact Top-Notch to fulfill your needs! How does your name and tagline make you different than your competitors? In order to have the name Top-Notch, you have to be at the top of your profession. Our company will be at the pinnacle when it comes to cleaning. Can your message be effectively conveyed through multiple types of media? Any type of media can be used to convey our company message. Is your message effective across different demographics? My goal is to keep the business within a small area which we think will make our message more effective. Is your pricing consistent with the market for similar offerings? Our rates will be competitive. Is your pricing consistent with the degree of personalization? Our rates with conform to the degree of service requested by the customer. Top-Notch 7

12 Media: What are three types of media you will use to reach your customers? By effective advertising through Facebook, websites, Craigslist, Nextdoor, and Angie s List. How many potential typical customers (not just total people) can you reach each month using the types listed above? We will market to 250 companies per month. Once you ve reached your typical customer, how many will actually buy from you? We hope to obtain 15 new customers per month. For each of the three, what do you think the estimated cost will be? We plan to spend $150 per month on advertising. For each cost estimate, is this a one-time expense up front or a recurring monthly charge? Our goal is to spend $150 per month advertising to potential new and existing customers. How will you collect customer reviews? We plan on conduct telephone surveys on a weekly basis. Top-Notch 8

13 START-UP COST Owner's name Company name Industry Top Notch Janitorial Service Janitorial Cleaning Service Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers 300 cell phone purchase 100 car/truck down payment, if leased permits supplies, office & misc. Cash needed for start-up expenses 400 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van 2,000 20,000 22,000 company trailer - computer, printer, fax - General cleaning supplies, equipment 3,050 3,050 Specialty cleaning equipment 10,000 10,000 - building/office deposit N/A N/A beginning cash balance N/A N/A Cash needed for start-up assets 15,050 20,000 35, assumed life (months) 584 monthly depreciation Total start up cost 35,450 Assumption 5 - Total Sources Cash owner will contribute to the company 0% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) 20,000 54% Unsecured debt, if applicable (for example Kiva loan) 5,000 14% Outside equity investment, if applicable 12,000 32% Total start up cost, total sources 37, %

14 dba Top Notch Janitorial Service EOU, Financing, and Payroll Assumptions Year 1 Assumption 6 - Revenue Model (Economics of One Unit) Product 1 Product 2 Product 3 Product name Product description 1 small office 1 medium office 1 large office Cleaning of one small commercial office building with 5 rooms. Cleaning of one small commercial office building with 10 rooms. Cleaning of one small commercial building with 15 rooms. Price per unit % % % Cost of one unit hours rate hours rate hours rate Non-owner payroll exp % % % Non-owner payroll tax 9.0% % % % cost 1 description materials % materials % materials % cost 2 description 0% 0% 0% cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs % % % Income statement gross profit per unit % % % hours rate hours rate hours rate Owner's labor charge - 0% - 0% - 0% Pro forma gross profit % % % Start-up Total Year 1 small office sold medium office sold large office sold total revenue $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 115,500 total cost of sales $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 4,625 $ 50,878 total income statement gross profit (excludes owner labor) $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 5,875 $ 64,622 Owner's labor hours (time spent directly related to sales) Assumption 7 - Financing Total Year Equipment financing, see Start-up Costs sheet amortization schedule Amount borrowed $ 20,000 principal, beginning 20,000 19,755 19,508 19,258 19,006 18,751 18,493 18,233 17,971 17,706 17,438 Interest rate 12.0% interest expense ,061 Loan term (months) 60 principal payment (245) (247) (250) (252) (255) (257) (260) (263) (265) (268) (271) (2,833) ly payment 445 principal, ending 19,755 19,508 19,258 19,006 18,751 18,493 18,233 17,971 17,706 17,438 17,167 Start-up financing, see Start-up Costs sheet Amount borrowed $ 5,000 principal, beginning 5,000 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 Interest rate 0.0% interest expense Payback period (months) 24 principal payment (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (2,292) Grace period (months) - principal, ending 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 2,708 ly payment $ 208 Assumption 8 - Payroll, nondirect Total Year # of employees avg hours each employee(s) worked per month, not in EOU above average per hour wage salary expense, exclduing payroll taxes Assumption 9 - Equipment Purchases, after start-up Description Total Year FINANCIALS

15 dba Top Notch Janitorial Service Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 1 small office 6-1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 19,800 17% 1 medium office 6-3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 39,600 34% 1 large office 6-5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 56,100 49% Total revenue - 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10, , % Cost of Goods Sold 2 1 small office ,480 7% 1 medium office 6-1,542 1,542 1,542 1,542 1,542 1,542 1,542 1,542 1,542 1,542 1,542 16,959 15% 1 large office 6-2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 25,439 22% Total COGS - 4,625 4,625 4,625 4,625 4,625 4,625 4,625 4,625 4,625 4,625 4,625 50,878 44% Gross profit - 5,875 5,875 5,875 5,875 5,875 5,875 5,875 5,875 5,875 5,875 5,875 64,622 56% Expenses 2 Auto or truck lease - - 0% Depreciation ,426 6% Gasoline & fuels ,400 4% Insurance - bonding ,420 2% Insurance - vehicle ,650 1% Interest - equip & start up ,061 2% Marketing ,400 1% Office - rent - - 0% Office - insurance - - 0% Office - telephone - - 0% Office - utilities - - 0% Payroll - not owner and not in % COGS Payroll taxes (9%) 6 & % Permits - - 0% Supplies - - 0% Tax service - - 0% Telephone - cellular ,200 1% Start-up expenses % - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 400 1,754 1,752 1,749 1,747 1,744 1,742 1,739 1,737 1,734 1,731 1,729 19,557 17% Taxable profit (loss) 1 (400) 4,121 4,123 4,125 4,128 4,130 4,133 4,136 4,138 4,141 4,143 4,146 45,065 39% Tax (expense) benefit 1 (1,961) (3,096) (3,102) (3,108) (11,266) -10% Owner's withdrawals 1 - (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (18,000) -16% Net profit (loss) (400) 4,121 2,162 2,125 2,128 (965) 2,133 2,136 (964) 2,141 2,143 (961) 15,799 14% Depreciation ,426 Equipment purchases 3 (35,050) (35,050) Principle, equipment loan 7 20,000 (245) (247) (250) (252) (255) (257) (260) (263) (265) (268) (271) 17,167 Repay debt financing 7 5,000 (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) 2,708 Owner contribution Equity investor 3 12, ,000 Net cash flow 1,550 4,251 2,291 2,251 2,251 (844) 2,251 2,251 (850) 2,251 2,251 (856) 19,050 Cash, period start - 1,550 5,801 8,092 10,344 12,595 11,751 14,002 16,254 15,403 17,655 19,906 - Cash, period end 1,550 5,801 8,092 10,344 12,595 11,751 14,002 16,254 15,403 17,655 19,906 19,050 19,050 The accompanying assumptions are an integral part of this financial statement.