JANITORIAL SERVICE FEASIBILITY ANALYSIS

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Business Plan Instructions

Formatting

The business plan will be a PowerPoint presentation consisting of 6 to 10 slides covering the information in the instructions. Since this is a PowerPoint presentation, Times New Roman, black, 12 point font with one inch margins is not required. Make an attractive presentation that complements your business.

MY PART OF THE PAPER IS THE

Mission and Vision Statement ONE SLIDE EACH - (The mission statement tells why the organization exists. The vision statement tells where the organization is going over a given period of time and what the organization will look like when it gets there.)

PLEASE USE THE INFORMATION PROVIDED WITHIN THE

JANITORIAL SERVICE FEASIBILITY ANALYSIS BELOW

A minimum number of sources is not required. Cite and reference the sources used. Use the notes pages to expound on your slides. Slides should be concise and each slide should have notes. When writing your notes, think “talking points.” What might the people you are presenting to ask? What do you want them to know about your proposed business?

* Do not create a presentation with black font on a white background. This is too stark for a PowerPoint presentation.

* If you are going to do citations on the slide, keep them small so they don’t detract from the information. It is best to do the citations in the notes pages.

JANITORIAL SERVICE FEASIBILITY ANALYSIS

Proposed Business Description

Cleaning of a facility or home can be a full-time job. Liberty Janitorial Service is a new company that will provide high quality janitorial cleaning services to its clients. What makes our service particularly unique is that we use hypo-allergenic & non-toxic cleaners. We offer regular visits to proactively reduce allergens, bacteria, and stress. We are scheduled to begin operations in the summer of 2018. Liberty Janitorial Service will be a partnership that is family owned and operated by six members.

Our professional janitorial services include everything required to care for residential and commercial properties. All supplies and cleaners are supplied by us. Upon request, we will use the supplies of our client’s choice. We take pride in being flexible. We have cleaners available around the clock to adjust to the client’s needed times of service.

Typically, duties include daily services such as dusting and vacuuming as well as more advanced functions which include cleaning carpet, cleaning air ducts and washing windows. Liberty Janitorial Services provides a service that can be trusted, affordable and is an efficient way to keep your home and business clean. We recognize that each client’s budget is different. We design packages based on a client’s unique cleaning preferences, schedule and budget. No contracts and no hassle.

People will judge your residence or facility from the moment they step a foot through the front door. A clean home and facility conveys professionalism, care, comfort and attention to detail, which is exactly what Liberty Janitorial Service provides for its clients. We pledge to always offer a professional and courteous service and to never compromise the quality of cleaning offered. We take pride in the health and safety of homes and workplace, and to always respect the natural environment.

Industry & Market Feasibility Analysis

The cleaning industry has been perceived as the industries of people without financial muscles. However, this perception is changing because people are making good returns from the industry. Today, the number of Janitorial Services providing companies has increased significantly, but there are still many opportunities to be explored. This paper will examine the janitorial service industry’s performance, that will allow us to be better informed and make a decision if it is the best industry to invest in.

Sociocultural

People in the modern world have changed their ways of thinking and doing things. Needs have increased, and that has forced many to change the way they approach their day to day activities. Cleaning was a routine in many households just a few years ago; however, that has changed, and today, people opt to hire cleaners (Rhodes et al. 2016). In offices and institutions, many organizations have seen the need to hire outside cleaning professionals to save on the cost of cleaning. The old habits of hiring regular people and putting them on the permanent payroll have been replaced by the need to higher professionals on a contract basis. As a result, the industry is expanding. The need to bring in more cleaners is seeming to become more valuable.

Technological

The technology industry y is growing. This has given companies a chance to use technology to attract and serve as many customers as possible. The use of the social media platforms is rampant. Many new entries to the market have utilized the social media to market their services and charges. Organizations seeking cleaning services are also utilizing the social media platforms to identify their potential services providers. The introduction of machines which are more efficient has helped cleaners become more productive. It has also made work much easier. As a result, a group of cleansers can service a larger number of customers within a specified timeframe. These machines have also come to enhance efficiency and increase profits. A machine nowadays can work three times faster than person, saving much needed time.

Economic

Establishing a Janitorial service business does not require a lot of money. It is one of the businesses where one only needs materials to perform the first task. The rest of the tasks will help in raising the capital and growing the business. Economic threats are not likely to have a major effect on the business. Whether the business is doing good or bad, companies and institutions must be cleaned. Therefore, the business is not likely to be affected by the economy. The industry is still young, and therefore, only a few companies are in the market, and that makes it easier for them to survive during hard economic times.

Political and legal

Political tensions might affect the business. When there are no offices to clean or when the movements are limited due to political tensions, the business is affected because it depends on the offices (Johnson, 2016). The industry is currently not faced with legal issues. All that is needed is to apply for the license to operate. Since the industry is still young, there are not that many requirements to be met like other businesses.

Service Feasibility Analysis

Service

The goal is to open a family owned and operated Janitorial Service to provide superior cleaning services to local businesses and families within the area. The cleaning supplies used will be environmentally friendly to include Hypo-Allergenic & Non-Toxic Cleaners.

Target Market

Within the three years of operation, we plan to open another location near up and coming commercial areas. The target market is both corporations large and small and residents within the surrounding areas.

Why Liberty Janitorial Service?

Commercial real estate occupancy and income growth drive demand for cleaning services. Janitorial services average annual revenue per employee is approximately $35,000. Janitorial Services account for about 90 percent of industry revenue. Janitorial work includes general services, such as cleaning, trash pickup, floor polishing, and the specialty services of cleaning carpet, ducts and washing windows (sbdc). Due to the projected upswing in the economic cycle, the education, health and medical industries will outsource many cleaning needs, providing sustained growth for the industry (Donovan, 2015)

Why should a commercial organization or an individual family utilize our janitorial service? If you are a family with a busy schedule, you may not have time to thoroughly clean your home the way you may want to. If you are a business, hiring internal employees to clean will not only cost the company to pay them, but these individuals will also need to be supervised and this comes with an even bigger expense. By utilizing Liberty Janitorial Services, you can cut out the extra expenses and only pay for the service being provided. Liberty Janitorial Service will provide you with up-front cost breakdowns for services. There will be no hidden fees.

Special Feature

Liberty Janitorial Services’ new and existing customers can stay connected by utilizing the companies Facebook, Twitter and Instagram sites. Customers can click on the link to schedule services, rate their experience and signup for the company’s monthly newsletter. The sites will also list any special discounts that are being offered for customer. For example, if you are a first-time customer, you can receive a discount on your first cleaning. The Janitorial Service also provides deep floor and window cleaning services. Liberty Janitorial Services will also utilize platforms like YouTube and LinkedIn to market the business and services, provide helpful tips and how-to videos. The Business will also use local yellow books and word of mouth advertising.

The Janitorial Services will also partner with local churches and local vendors that sell cleaning products. By doing this, it will broaden the customer base for both the Janitorial Service and the company providing the supplies.

Management Team

Our human resources will be between two -seven individuals depending upon the job. All cleaning supplies will be provided unless client request to use specific cleaning supplies which would be furnished by them.

I do believe that customers will be willing to purchase our Janitorial Services. We will perform a survey to ask customers some questions in order to gauge if we will obtain their business.

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Financial Feasibility Analysis

Forecast Analysis - Income Statement

2019

2020

2021

2022

2023

2024

2025

Totals

Sales

Sales

3,000,000

4,500,000

5,500,000

7,900,000

9,200,000

11,000,000

15,000,000

56,100,000

Other

0

0

0

0

0

0

0

0

Total Sales

3,000,000

4,500,000

5,500,000

7,900,000

9,200,000

11,000,000

15,000,000

56,100,000

Less Cost of Goods Sold

Labor

700,000

875,000

1,225,000

1,750,000

2,100,000

2,800,000

3,150,000

12,600,000

Overhead

13,200

13,200

13,200

13,200

13,200

13,200

13,200

105,600

Other

0

0

0

0

0

0

0

0

Total Cost of Goods Sold

713,200

888,200

1,238,200

1,763,200

2,113,200

2,813,200

3,163,200

12,705,600

Gross Profit

1,886,800

3,611,800

4,261,800

6,136,800

7,086,800

8,186,800

11,836,800

43,394,400

Operating Expenses

Salaries and Wages

1050000

1050000

1050000

1050000

1050000

1050000

1050000

7350000

Employee benefits

76,000

77,800

78,500

79,780

80,400

81,972

82,309

556,761

Payroll Taxes

21,000

20,592

19,230

18,000

17,395

16,294

15,596

128,107

Rent

3000

3200

3350

3451

3569

3682

3,706

8,034,868

Utilities

6000

6200

6340

6490

6562

6692

6,752

45036

Repairs and Maintenance

2000

2066

2184

2239

2361

2495

2,562

15907

Insurance

1000

1022

1056

1071

1089

1100

1,300

7,638

Travel

3024

3062

3079

3085

3098

3106

3,115

21,569

Telephone

12,000

12,790

12, 880

12998

13040

13120

13,244

77,192

Postage

2246

2361

2469

2510

2691

2738

2,842

17,857

Office supplies

4000

4180

4260

4359

4481

4528

4,691

30,499

Advertising

1200

1260

1320

1369

1398

1404

1,427

9,378

Marketing / promotion

1500

1580

1630

1680

1720

1780

1820

1860

Professional Fees

900

948

962

978

984

993

1,010

6,775

Training and development

840

857

867

875

889

896

909

6,133

Bank changes

900

1023

1034

1048

1053

1066

1079

7203

Depreciation

900

1023

1023

1040

1063

1073

1085

7207

Interest Expense

4000

4000

4000

4000

4000

4000

4000

28,000

Other

0

0

0

0

0

0

0

0

Total Operating Expenses

1190510

1193964

1181304

1194973

1195793

1196939

1,197,447

8350930

Operating Income

Interest income (expense)

11,000

13,590

13,900

14,492

15,238

15,608

15,945

99,773

Other income (expense)

0

0

0

0

0

0

0

0

Total Non-operating Income (Expense)

11,000

13,590

13,900

14,492

15,238

15,608

15,945

99,773

Income (Loss) Before Taxes

1,179,510

1,180,374

1,167,404

1,180,481

1,180,555

1,181,331

1,181,502

8,251,157

Income Taxes

117,951

118,037

116,740

118,048

118,056

118,133

118,150

825,116

Net Income (Loss)

1,061,559

1,062,337

1,050,664

1,062,433

1,062,500

1,063,198

1,063,352

7,426,041

Cumulative Net Income (Loss)

1,061,559

2,123,896

3,174,559

4,236,992

5,299,492

6,362,690

7,426,041

29,685,228

Forecast Analysis - Balance Sheet

Opening

Year 1

Year 2

Year 3

Opening

Year 1

Year 2

Year 3

Year 4

Assets

Current Assets

Cash

820,591

800,039

810,385

818,385

805,183

802,591

804,610

803,691

819,395

Notes Receivable

2800

1500

1800

1650

2295

2051

1985

2194

2749

Accounts receivable, net

543,891

510,985

538,730

540,618

517,392

505,284

501,983

500,831

541,910

Inventory

0

0

0

0

0

0

0

0

32,791

Other

10,783

9095

10395

11,000

10296

9581

8093

9201

10,598

Total Current Assets

1,378,065

1,321,619

1,361,310

1,371,653

1,335,166

1,319,507

1,316,671

1,315,917

1,407,443

Long-Term Assets

Property, plant, and equipment

438,809

438,809

438,809

438,809

438,809

438,809

438,809

438,809

438,809

Less accumulated depreciation

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

Net property, plant, and equipment

404,952

404,952

404,952

404,952

404,952

404,952

404,952

404,952

404,952

Other long-term assets

65,036

64,319

66,490

65,980

63,280

63,482

62,871

62,821

64,980

Total Long-Term Assets

920,797

920,080

922,251

921,741

919,041

919,243

918,632

918,582

920,741

Total Assets

2298862

2,241,699

2,283,561

2,293,394

2,254,207

2,238,750

2,235,303

2,234,499

2,328,184

Liabilities

Current Liabilities

Short-term debt

200,704

198,720

192,701

193,614

185,201

178,014

169,495

164,192

156,272

Current Maturities of long-term debt

85201

82,741

81,976

84381

82,453

88,084

86,942

81,542

83,742

Accounts payable

85201

82741

81,976

84381

82,453

88,084

86,942

81,542

83,742

Income Taxes payable

20,761

18,975

19,173

19,879

18,641

17,042

16,045

15,029

17,642

Accrued liabilities

90,820

85210

86,480

87,504

83,052

85,018

76,424

78,042

89,652

Other

12,682

12,951

11,349

11,194

11,749

10,593

11,482

12,692

10,382

Total Current Liabilities

495,369

481,338

473,655

480,953

463,549

466,835

447,330

433,039

441,432

Long-Term Liabilities

Long-Term debt less current maturities

220,721

204,854

215,953

218,542

208,757

199,711

196,832

186,863

212,763

Deffered income taxes

80,842

76,041

78,042

79,053

75,928

76,883

78,784

79,444

80,952

Other long-term liabilities

75,949

73,284

74,943

73,033

72,841

71,742

69,627

68,072

78,552

Total Long-Term Liabilities

377,512

354,179

368,938

370,628

357,526

348,336

345,243

334,379

372,267

Total Liabilities

872,881

835,517

842,593

851,581

821,075

815,171

792,573

767,418

813,699

Final Analysis

Regarding all of the information that has been gathered, it is safe to say that the concept of Liberty Janitorial Service is one that will succeed in terms of efficiency, sustainability, customer satisfaction, and profit. Specifically, Liberty will provide efficiency by using the best cleaning solutions that are powerful enough to kill most household bacteria. In addition, Liberty will utilize top-of-the-line cleaning equipment that will leave rooms looking brand-new. Moreover, Liberty will keep sustainability in mind by using equipment and cleaning solutions that are environmentally safe. When providing customer service, Liberty will go all out by hiring the best people that will provide honesty and courtesy to our customers.

When analyzing the profits, one can find that Liberty is poised to be a major success. According to the forecast analysis, Liberty will bring in massive profits for the next several years. The careful spending on such necessities as repairs and marketing is what will contribute to Liberty’s profit margins year in and out. All in all, Liberty Janitorial Service’s business philosophy is structured around the idea that the customer’s well-being and concerns, are of the upmost importance. As Sam Walton once said, “The goal as a company is to have customer service that is not just the best but legendary” (Walter, 2014, p.1). Liberty will live up to this idea, as it will provide affordable quality service that will appeal to all the wants and needs of its target markets. But aside from this, we at Liberty Janitorial Service feel motivated by the Word of God to do our very best. As Colossians 3:23 says, “Whatever you do, work heartily, as for the Lord and not for men” (The King James Study Bible). While our adherence to this work ethic might seem as if we are putting customer satisfaction aside in order to fulfill a need for spiritual fulfillment, that is far from the truth. For we believe that working to glorify God motivates us to do our best in creating a sustainable company that will serve to make the customers happy for years to come.

References

Donovan, R.S (n.d). Janitorial Services Business 2012. Retrieved from http://www.sbdcnet.org/small-business-research-reports/janitorial-services-2012

Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.

Price, Kristen Three best ways to grow market shares. Retrieved 08Feb18

https://yourbusiness.azcentral.com/three-ways-grow-market-share-16523.html

Rhodes, E., Garrison, R., Morse, D., Getchis, T., & Macfarlane, S. (2016). Shellfish aquaculture feasibility study. Expanding shellfish culture in the NRAC region Constraints to existing industry expansion and an analysis of the economic feasibility of new, small-scale oyster culture businesses. Part II: The feasibility of new, small scale oyster culture businesses. Northeastern Regional Aquaculture Center. North Dartmouth, MA, USA.

Walter, E. (2015, September 20). 40 Eye-Opening Customer Service Quotes. Retrieved February 05, 2018, from https://www.forbes.com/sites/ekaterinawalter/2014/03/04/40-eye-opening-customer-service-quotes/#6a80bb0c6b7b