Immaculate Cleaning ServicesTwenty River Rock PlaceNorth Little Rock, AR 72201Telephone: (555) 555-5555Facsimile: (555) 555-5555www.immaculatecleaningservices.xyzJohn Doe Smith2323 Maple DriveLittle Rock, AR 72212Cell: (501) py #1Disclaimer: This is a sample plan only. The numbers and information contained are fictitious and shouldnot be used as a resource.

Table of ContentsI.Cover PageII.Table of ContentsIII.Executive Summary1IV.Financing Proposal3Loan Amount RequiredTerms & UtilizationCollateralOwner’s Equity ContributionV.Company DescriptionCompany History & MissionOverview of Products & ServicesBusiness LocationLegal StructureVI.VII.Industry Analysis3333333344Industry DescriptionOccupational OutlookBarriers to EntrySWOT Analysis4455Products & Services5Primary ServicesDistribution ChannelsPricing Structure & StrategySources of Competitive Advantage5566VIII. Market ing StrategyCustomer DemandForecast for Demand6779101212

IX.Management & OrganizationManagement ResponsibilitiesAdvisory TeamEmployee Position DescriptionX.Operational PlanMethods of Service DeliveryCredit PoliciesPersonnelEquipment, Technology & InventoryLegalExit StrategyXI.Financial Plan & ProjectionsStart-up Expenses and CapitalProject Cost SummaryAssumptionsProfit and Loss ProjectionCash Flow ProjectionProjected Balance SheetXII.121213131313141416161717171919Supporting DocumentsReferences with CitationsManagement RésuméPersonal Financial StatementCopies of Lease and LicenseCopy of Insurance Quote2


III. Executive SummaryImmaculate Cleaning Services is a start-up janitorial services provider servicing theneeds of local churches throughout Central Arkansas. Immaculate CleaningServices will strive to provide clients with professional, first-class quality serviceand convenient scheduling.Services will include waste disposal, window cleaning, blind and upholsterycleaning, carpet and hard surface floor care, restroom sanitation and stocking,dusting, furniture upkeep, and occasional specialized interior cleaning services.John Smith, President, is the sole owner. With advice from his CPA and attorney,Mr. Smith chose to incorporate Immaculate Cleaning Services as an S-Corporation.He filed for Articles of Incorporation with the Arkansas Secretary of State’s OfficeJune 1.Potential target customers include places of worship for any religious denominationlocated within Pulaski, Faulkner, Saline, Garland, and Lonoke counties. Accordingto the Arkansas Business Directory, the two organizations with the largest growthtrend in Arkansas in recent years are churches and restaurants. In 2004, there wereover 400 churches operating in Little Rock alone. Additionally, approximately500 churches are located in the surrounding cities/counties of North Little Rock,Benton, Cabot, Conway, Jacksonville, Hot Springs, Saline County, FaulknerCounty, Garland County, Pulaski County, and Lonoke County.Mr. Smith will manage two full time employees throughout the year. He will hireadditional variable labor employees to assist during the probable busier months.Mr. Smith will interview, hire/fire employees, monitor performance, performpayroll duties, practice direct sales, bill clients, purchase equipment & supplies,observe daily financial information, maintain the website, and assist with cleaning.Employees are vital components of providing a professional, quality cleaningservice; therefore, Immaculate Cleaning Services will provide adequate pay,additional employee benefits, and extensive application processes to extract thehighest quality of customer service from all employees.Setting up a flexible time period for cleaning is crucial to both Immaculate CleaningServices and clients. Immaculate Cleaning will service each church once per weekat a time convenient for each client. Clients will have the option of additionalcleanings during especially busy religious time periods.1

Immaculate Cleaning Services estimates total project cost of 25,000. Mr. Smithneeds debt financing of 20,000. The loan proceeds will be utilized primarily inpurchasing cleaning equipment & supplies, lease payments, payroll, and additionalworking capital needs throughout the first year. Mr. John Smith will pledge homeequity of 18,000, as well as all new equipment purchased with loan proceeds ascollateral. Mr. Smith will contribute 20% of his own cash from savings into thebusiness; approximately 5,000.Immaculate Cleaning Services does not require an extensive amount of capital.Total start-up costs of cleaning equipment, cleaning supplies, office equipment &supplies equal, and deposits are 10,889. The remaining 14,111 of the totalproject cost will be used for working capital.Leased office space of 550 sq. feet will cost 13.00 per sq. foot annually arriving ata total yearly lease expense of 7150.Immaculate Cleaning Services projects annual revenues of 129,520 in Year 1 withoperating expenses of 81,115.2

IV. Financing ProposalLoan Amount Required: Immaculate Cleaning Services estimates total debtfinancing needs of 20,000. Traditional small business financing through a bank isideal.Terms & Utilization: Immaculate Cleaning Services will require a maximum loanterm of five years, given the relatively small amount borrowed. ImmaculateCleaning Services will be flexible with loan terms available.The loan proceeds will be utilized primarily in purchasing cleaning equipment &supplies, lease payment, payroll, and additional working capital needs throughoutthe first year.Collateral: Mr. John Smith will pledge all new equipment purchased with loanproceeds as collateral. Additionally, Mr. Smith will pledge the equity in his homeof 18,000 as collateral.Owner’s Equity Contribution: Mr. John Smith will contribute 20% of the totalproject cost into the business using cash from savings, approximately 5,000. Thetotal debt financing need of 20,000 added to the owner’s equity contributionequals a total start-up project cost of 25,000.V. Company DescriptionCompany History & Mission: Immaculate Cleaning Services is a start-upjanitorial services provider servicing the needs of local churches throughout CentralArkansas. Immaculate Cleaning Services will strive to provide clients withprofessional, first-class quality service and convenient scheduling.Products & Services Overview: Immaculate Cleaning Services plans to providequality cleaning services to the churches within Central Arkansas. Services willinclude waste disposal, window cleaning, blind and upholstery cleaning, carpet andhard surface floor care, restroom sanitation and stocking, dusting, furniture upkeep,and occasional specialized interior cleaning services.Business Location: Immaculate Cleaning Services has secured office space ofapproximately 550 sq. feet. The office will be located in the ABC Office Buildingat Twenty River Rock Place, North Little Rock, AR. C & K Commercial Realtywill lease the office space at a rate of 13.00 per sq. foot annually, arriving at a totalyearly lease expense of 7150. Although cleaning services do not requiretraditional office space, the purpose of obtaining an office front is to exude anenhanced professional appearance to current and potential clients. The space willaccommodate meetings with clients and employees as well as storage for equipmentand supplies. No leasehold improvements are required at this time.3

Legal Structure: John Smith, President, filed for Articles of Incorporation with theArkansas Secretary of State’s Office June 1. He is the sole owner. With advicefrom his CPA and attorney, Mr. Smith chose to incorporate Immaculate CleaningServices as an S-Corporation.Mr. Smith used the Arkansas Secretary of State’s webpage2 to perform an entityname search to ensure that his chosen business name is not currently being used inthe state of Arkansas. He incorporated the business; therefore, the business namewill be protected in the state of Arkansas.VI. Industry AnalysisThe Janitorial Industry (NAICS: 56172, SIC: 7349)3 has been a driving forcebehind the recent growth of the United States’ service sector. This industry is oneof a fragmented state, populated by thousands of small companies with nosubstantial share of the market. The janitorial sector also has few barriers to entrysince relatively small start-up costs and low levels of experience are required.These factors make the industry attractive but the competition fierce.According to the Bureau of Labor and Statistics website’s Occupational OutlookHandbook, the job outlook for janitorial workers is positive. “Overall employmentof building cleaning workers is expected to grow as fast as average for alloccupations through 2014, as more office complexes, apartment houses, schools,factories, hospitals, and other buildings requiring cleaning are built to accommodatea growing population and economy. As many firms reduce costs by contracting outthe cleaning and maintenance of buildings, businesses providing janitorial andcleaning services on a contract basis are expected to have the greatest number ofnew jobs in this field. Although there have been some improvements in productivityin the way buildings are cleaned and maintained—using teams of cleaners, forexample, and better cleaning supplies—cleaning still is very much a labor-intensivejob. Faster than average growth is expected among janitors and cleaners and amongcleaning supervisors, but as fast as average growth is projected for maids andhousekeeping cleaners. In addition to job openings arising due to growth, numerousopenings should result from the need to replace those who leave this very largeoccupation each year. Limited promotion potential, low pay, and the fact that manyjobs are part-time and temporary, induce many to leave the occupation, therebycontributing to the number of job openings and the need to replace these workers.” 4According to the U.S. Census Bureau, the janitorial industry saw the second highestincrease in the service sector from 2001 to 2002 with 20.4% growth. Competitionis intense, as in any contract-bidding situation, and this has affected profitability.Nevertheless, industry receipts have grown 6% to 11% annually since 1994 andjanitorial companies expect a median sales growth of 30% over the next three years.4

One of the largest problems and/or risks of the industry is, in fact, employeeturnover. Employees are vital components of providing a professional, qualitycleaning service; however, Immaculate Cleaning Services will provide adequatepay, additional employee benefits, and extensive application processes to extract thehighest quality of customer service from all employees.The barriers to entry in the cleaning industry are relatively low resulting in intensecompetition. Cleaning businesses are low capital businesses meaning little moneyis necessary. There are no formal educational or professional requirements. Evenexperience within the industry is not necessary.The strengths of Immaculate Cleaning Services include: Commitment to quality service Dedication to customer satisfaction Value seen in its employees Convenient service schedule Owner experience in the janitorial industryThe major weaknesses of the company include: New position in the market Shallow resource baseSignificant opportunities: New market with unlimited opportunities Market is showing consistent high growthImpending threats: Low barriers for entry of competitors Ease of finding substitutesVI. Products & ServicesPrimary Services: Services will include waste disposal, window cleaning, blindand upholstery cleaning, carpet and hard surface floor care, restroom sanitation andstocking, dusting, furniture upkeep, and occasional specialized interior cleaningservices. Immaculate Cleaning Services will focus on the interior space of religiousplaces of worship. For increased convenience to clients, these services will beavailable seven days a week and will be determined according to client needs.Distribution Channels: Immaculate Cleaning will provide services directly tochurches and other places of worship through multiple service contracts. Contractswill be formed on a six month basis initially, at the end of which, either party canwithdraw from renewing the contract.Pricing Structure & Strategy: Immaculate Cleaning Services deems it necessaryto charge rates to churches based on sq. footage rather than a flat fee due to their5

varying sizes. This will allow a cost structure affordable to all as well as anoperational system used to distinguish cleaning time needs and/or limits for eachchurch. The proposed pricing strategy is 0.08 per sq. foot per cleaning. Therefore,a church occupying 2500 sq. ft. will pay 0.08 x 2500 200 per week, 800 permonth during regular months. The client may opt for additional cleanings duringbusier months/holidays. The fee will remain 0.08 per sq. ft. per cleaning.Immaculate Cleaning Services strives to be competitive within the market, but willfocus on offering the highest quality service. During the developmental stage, JohnSmith will work alongside employees performing the services, thus providing laborcost savings. This strategy will succeed by keeping operating costs at a minimumand gaining repeat business through quality, contracted work.Sources of Competitive Advantage: Immaculate Cleaning Services will gaincompetitive advantage within the marketplace by differentiation. Professionalism,flexibility, high quality services, and a position at the front of the market are keyfactors that differentiate Immaculate Cleaning Services from the competition.Cleaning services that cater only to churches are relatively rare; therefore,Immaculate can focus on the segmented market for maximum market share.Immaculate Cleaning Services will also implement a 4-tier quality inspection planto ensure the highest quality work from all employees. Areas will be