Janitorial Services Business Plan Example

Janitorial Services Business Plan:

Clean Office Pros is a new cleaning service specializing in office cleaning in Kansas City, Missouri. The business will sell office cleaning and related services to businesses of any size. Clean Office Pros seeks funding for equipment and initial operations.

The Company

Established in 2009, the business offers office cleaning, floor treatment, carpet cleaning, and window cleaning for businesses in the Kansas City area. Founded by Paul Vinci and Reid Werbitt, cleaning industry professionals with decades of experience, the business will operate from a central office and storage facility using trained cleaning crews.

Services

Services will include basic office cleaning scheduled monthly, with extreme care for client privacy, security, and assets. Additional services will deepen the relationship with Clean Office Pros. Organizational services will be introduced after three years. All services will be environmentally friendly.

The Market

The market consists of 40,000 small, medium, and large office businesses. Growth is expected, especially for small offices which will be the initial target market. Focusing on small offices will establish the company’s reputation and streamline operations.

Financial Results

The business expects to reach $1 million in annual sales in its second year and begin paying dividends to partners. Net profit of $70,000 will be achieved in the first year, doubling in the second year. Break even will be achieved quickly due to experienced management and payment based on hours worked by cleaning crews.

Clean Office Pros aims to establish itself as a leading office cleaning company in Kansas City, MO. Our objectives over the next two years are as follows:

– Build a regular client base of 100 clients on monthly cleaning plans, covering over 800,000 square feet of office cleaning each month.

– Establish operations infrastructure, including a central headquarters, 5 delivery vans, professional management, and documented processes for operations and cleaning practices.

– Increase gross margins by reducing vendor pricing on cleaning supplies and training low-cost labor to improve productivity.

– Cultivate a culture of productivity and resourcefulness by encouraging innovative ideas and rewarding cleaning crew members for their contributions.

Clean Office Pros is dedicated to providing spotless office environments for businesses, alleviating their concerns about office cleaning. We prioritize employee expertise and attentively address client needs. Additionally, we emphasize eco-friendly cleaning practices and aim to meet or exceed client expectations.

To succeed in the office cleaning business, Clean Office Pros must:

– Empower employees to clean thoroughly and efficiently from day one.

– Effectively communicate client needs to cleaning crews.

– Stay informed about environmentally-friendly cleaning practices and products.

– Ensure that the cleaning meets or surpasses client expectations.

As an office cleaning business based in Kansas City, MO, Clean Office Pros has been providing services such as office cleaning, floor treatment, carpet cleaning, and window cleaning since 2009. Co-founded by industry professionals Paul Vinci and Reid Werbitt, the company is committed to reaching and serving business clients through a strategic approach.

Clean Office Pros is currently an S Corporation, with ownership divided between Paul Vinci (51%) and Reid Werbitt (49%). Additional angel investors will contribute to the business’s ownership structure, with the investors owning 49%, Paul Vinci owning 26%, and Reid Werbitt owning 25%.

The start-up expenses for Clean Office Pros include legal permitting, agreements with investors and banks, two months’ security deposit, and one month’s rent for office and storage facility improvements. These improvements consist of lighting fixtures, storage cabinets, sinks, as well as office and computer supplies for three workstations. Assets to be purchased include office furniture, computers, cleaning equipment, and a delivery van. Seller-financing may be utilized for larger equipment purchases such as the delivery van and buffing machines.

Overall, Clean Office Pros is dedicated to delivering exceptional office cleaning services in Kansas City, MO.

Start-up Expenses:

– Legal: $2,000

– Stationery: $2,000

– Insurance: $3,000

– Rent: $7,500

– Computer Systems: $5,000

– Office Supplies: $2,000

– Facility Leasehold Improvements: $10,000

– Other: $2,000

– Total Start-up Expenses: $33,500

Start-up Assets:

– Cash Required: $60,000

– Other Current Assets: $5,000

– Long-term Assets: $40,000

– Total Assets: $105,000

Total Requirements: $138,500

Services:

Clean Office Pros will offer services focused on office spaces, including:

– Office cleaning (garbage removal, dusting, cleaning surfaces, sweeping and mopping floors, cleaning doors and walls as needed)

– Furniture cleaning

– Floor waxing

– Floor stripping and sealing

– Carpet cleaning

– Window cleaning

– Bathroom and kitchen area cleaning

In the future, Clean Office Pros will also provide office organization and decluttering services as an upsell to the foundation of services.

Market Analysis Summary:

The market for office cleaning in the Kansas City area includes small offices (1-5 employees), medium offices (6-20 employees), and large offices (21 employees and up). In this area, the number of businesses with offices is growing due to the increasing service sector. In 2008, there were 3,000 new businesses established, and this growth is expected to continue over the next two years.

Clean Office Pros targets both small and large offices. Although margins may be lower for small offices due to increased sales and travel expenses, Clean Office Pros aims to establish a foothold in this market before competitors are willing to sell.

Market Segmentation:

The market for Clean Office Pros consists of small offices, medium offices, and large offices in the Kansas City area.

– Small Offices: These are either newly established ventures or small businesses designed to remain small. Many cleaning businesses do not serve this market due to the associated costs. Business owners often have employees do their own cleaning to save money. Clean Office Pros must demonstrate that having professional cleaners maintain their offices will not only save them money but also increase morale, productivity, and the appearance of their office spaces to customers.

– Medium Offices: This group recognizes the need for professional cleaning services, with price being a primary concern.

– Large Offices: This group understands the importance of outsourcing office cleaning to professionals. They seek vendors who can handle specific requests and prioritize the protection of their office spaces’ information, security, and equipment.

Clean Office Pros will establish its expertise by starting with small-office clients, then moving on to medium and large offices. Working with smaller clients first allows the business to establish a foothold and avoid direct competition with established cleaning companies. By leveraging economies of scale and efficient operations, profitability can be increased. Clean Office Pros will focus solely on commercial office cleaning and will not provide janitorial services for landlords. The office cleaning industry is highly stable, recession-resistant, and projected to grow rapidly. In terms of competition, the market is fragmented, with local companies accounting for 90% of the market and franchises representing 10%. Clients choose cleaning services based on reputation, price, and the range of services offered. Clean Office Pros will prioritize targeting small offices to gain a foothold in the market and will gradually expand to medium and large offices in the third year. The company will develop a competitive edge by utilizing the skills and ideas of its employees, fostering morale and increasing customer satisfaction. Initial training will be provided to cleaning crew heads, who will then train new members of their crews. Good business strategies will be developed through a SWOT analysis. The marketing strategy for Clean Office Pros will initially target small offices and include various promotional activities such as trade show booths, blogging, prospecting calls, business networking, and coupons. Ongoing promotional activities will include search engine marketing, search engine optimization, yellow page listings, and local TV commercials. Sales will be managed by co-founder Reid Werbitt, who already has a client base from his previous work. Sales will involve initial phone conversations, in-person meetings, and proposals. Werbitt will prospect for sales through networking, cold calls, and warm calls. The company projects that 5% of cold calls, 20% of warm calls, and 30% of networking leads will convert into regular customers. Growth is expected to start rapidly and then slow down as operations expand. Direct costs will include labor, cleaning supplies, and transit costs. To ensure profitability, Werbitt will be compensated based on profits, with a reasonable base salary.

Sales Forecast

Office Cleaning (1000 Square Feet): Year 1 – 5,014, Year 2 – 8,000, Year 3 – 12,000

Window Cleaning (10 Windows): Year 1 – 807, Year 2 – 1,000, Year 3 – 1,250

Floor Treatments (100 Square Feet): Year 1 – 991, Year 2 – 1,500, Year 3 – 2,000

Carpet Cleaning (100 Square Feet): Year 1 – 1,304, Year 2 – 1,000, Year 3 – 1,250

Bathroom and Kitchen Cleaning (By Room): Year 1 – 528, Year 2 – 500, Year 3 – 600

Total Unit Sales: Year 1 – 8,643, Year 2 – 12,000, Year 3 – 17,100

Unit Prices

Office Cleaning (1000 Square Feet): Year 1 – $100.00, Year 2 – $100.00, Year 3 – $100.00

Window Cleaning (10 Windows): Year 1 – $90.00, Year 2 – $90.00, Year 3 – $90.00

Floor Treatments (100 Square Feet): Year 1 – $11.00, Year 2 – $11.00, Year 3 – $11.00

Carpet Cleaning (100 Square Feet): Year 1 – $80.00, Year 2 – $80.00, Year 3 – $80.00

Bathroom and Kitchen Cleaning (By Room): Year 1 – $30.00, Year 2 – $30.00, Year 3 – $30.00

Sales

Office Cleaning (1000 Square Feet): Year 1 – $501,396, Year 2 – $800,000, Year 3 – $1,200,000

Window Cleaning (10 Windows): Year 1 – $72,595, Year 2 – $90,000, Year 3 – $112,500

Floor Treatments (100 Square Feet): Year 1 – $10,899, Year 2 – $16,500, Year 3 – $22,000

Carpet Cleaning (100 Square Feet): Year 1 – $104,325, Year 2 – $80,000, Year 3 – $100,000

Bathroom and Kitchen Cleaning (By Room): Year 1 – $15,839, Year 2 – $15,000, Year 3 – $18,000

Total Sales: Year 1 – $705,053, Year 2 – $1,001,500, Year 3 – $1,452,500

Direct Unit Costs

Office Cleaning (1000 Square Feet): Year 1 – $35.00, Year 2 – $35.00, Year 3 – $35.00

Window Cleaning (10 Windows): Year 1 – $36.00, Year 2 – $36.00, Year 3 – $36.00

Floor Treatments (100 Square Feet): Year 1 – $4.40, Year 2 – $4.40, Year 3 – $4.40

Carpet Cleaning (100 Square Feet): Year 1 – $32.00, Year 2 – $32.00, Year 3 – $32.00

Bathroom and Kitchen Cleaning (By Room): Year 1 – $12.00, Year 2 – $12.00, Year 3 – $12.00

Direct Cost of Sales

Office Cleaning (1000 Square Feet): Year 1 – $175,488, Year 2 – $280,000, Year 3 – $420,000

Window Cleaning (10 Windows): Year 1 – $29,038, Year 2 – $36,000, Year 3 – $45,000

Floor Treatments (100 Square Feet): Year 1 – $4,360, Year 2 – $6,600, Year 3 – $8,800

Carpet Cleaning (100 Square Feet): Year 1 – $41,730, Year 2 – $32,000, Year 3 – $40,000

Bathroom and Kitchen Cleaning (By Room): Year 1 – $6,335, Year 2 – $6,000, Year 3 – $7,200

Subtotal Direct Cost of Sales: Year 1 – $256,951, Year 2 – $360,600, Year 3 – $521,000

Milestones

Reid Werbitt will head sales activities, including prospecting and networking to generate leads. Paul Vinci will manage marketing and promotional activities, including two trade shows, TV ad production, initial search engine optimization, and the coupon campaign, which will cover three months of basic office cleaning for small-office clients.

Milestones:

Management Summary

Paul Vinci and Reid Werbitt will be the company’s initial managers. Vinci has ten years of experience as a store manager, where he supervised a staff of ten and handled marketing, operations, and human resources. At Clean Office Pros, he will continue managing those departments as the CEO.

Werbitt will be responsible for sales as well as being the lead salesperson. With ten years of experience as an account executive for JAN-PRO, a commercial cleaning business, he will serve as the Chief of Sales.

The company will have a part-time accountant for financial management during its early stages.

Personnel Plan

The business will start with minimal salaried staff since most of the work will be performed by the founders. They will receive reasonable base salaries and additional compensation through dividends and business growth.

In the first year, an accountant will serve as the Chief Financial Officer (CFO). This position will become part-time in the second year and transition to full-time in the third year.

The operations assistant will be an administrative assistant focusing on cleaning services, scheduling, quality assurance procedures, and human resources.

The total staff on this chart includes hourly cleaning crew members, whose payroll is assigned as costs of sales. Initially, one cleaning crew head will be hired. In the second year, an additional crew head will be hired, and in the third year, a third crew head will be added. Each crew head will oversee one to four members and may also assist other supervisors. The number of cleaning crew members will increase from five initially to an average of 11 in the second year and 16 in the third year. All hourly staff will be hired when at least 20 hours of work per week is available, with overtime limited. The company will choose to hire additional employees rather than rely heavily on overtime.

Cleaning crew members will have base salaries and receive quarterly bonuses based on performance ratings from their supervising crew head and clients. Crew heads will be rated by company managers and clients to determine their quarterly bonuses.

Once the company achieves sustainable profitability, the owners plan to offer a health benefits plan for employees. However, this is not included in the current plan’s estimated expenses.

Andrew Brooks

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