Slide Presentation

BUSINESS PLAN PROJECT 27

Pam Leight

Lester Gaither

Ryan Nelson

BUS – 485

Instructor Bennett

February 18, 2016

Executive Summary

Simple Clean is a company that will meet the niche that organizations have been yearning for. How many times have you had dry cleaning or wished that the cleaning company could come to you and do everything that needs to be done? Instead of organizations having to create multiple contracts to take care of its needs; Simple Clean takes care of it all at your location, residential or commercial. Simple clean will meet your needs at a schedule of your choosing and with the cleaning supplies of your choosing if you so desire. Simple Cleans’ operations will mitigate the environmental concerns and training requirements of its customers to ensure the customers are not worried with the requirements. The marketing of Simple clean is straight forward as the company will move into an arena where numerous companies meet the multiple needs of our potential customers. Simple Clean organization will be able to address many of the concerns of its customers such as purchasing cleaning supplies, training employees in compliance with Government regulations, maintaining facilities, and/or finding multiple vendors to meet their needs. The Simple Clean organization will have managers that oversee specific sections of the operations. The end result will be to create highly trained employees that are empowered through servant leadership to ensure the success of the organization by managing their own time and relaying pertinent data to management. The suppliers for Simple Clean are all global organizations that can provide our assets anywhere in the world in a timely manner ensuring we meet our customers’ needs on time. Simple Clean will be able to meet the financial requirements be providing the needs to our customers saving them funds in the long run and eliminating the need for multiple contracts, and the need to have the customer go to the supplier. This saves them manpower, time, and eliminate training for their employees which helps them focus on the tasks they were originally hired for. Simple forecasts a continual rise in the net income helping to ensure that not only will debts be met, and expenditures be paid for, but the company will build not only the market base but the funds to facilitate and expansion of operations in the foreseeable future. Additionally, the company has a break-even point of .00617 showing the company will make its money back on debts rather quickly. Simple Clean will have a fully operational business in less than 2 months allowing new customers to transition to Simple Clean with relatively minor issues. Simple Clean will create a sphere of influences to mitigate leadership bias and listen to its employment team to ensure that any hurdles will be alleviated quickly to influence company success. Utilizations of the Servant leadership style will ensure that company listens to is employees to keep the company in the forefront of success and aiding in its national, and global expansion plans.

Vision Statement

Simple Clean will make cleaning services simple for customer’s one call does it all.

Mission Statement

Simple Clean will keep is simple for customers, as they do, we will be known across the industry as customer will be happy. All employees will be back ground checked, earn good wages, display great work ethics, and customers will be notified of the employees coming in their homes.

Environmental Analysis and Industry Analysis

Five Forces of Competition

Simple Clean must have the ability to offer cleaning products at a cheaper cost, provide product quality that is superior the other organization quality, and deliver performance of which is superior to that of other organizations to keep a lower risk threat of substitution for services and products. Maintaining an adequate number of employees for completion of larger businesses or homes within a timely manner will prevent the threat of service substitution. “As the number of commercial buildings and residential homes increase, the demand for cleaning services is likely to enhance along with it”(Cleaning Service Business Plan – SWOT Analysis Sample, 2015-2017). Several factors for combating competition would require the use of brand name or well-known products provided with the services. The availability of capital investments upon starting the business would lower the threat of new entrants. Due to the nature of the business, the location of the business would pose a high threat of entry for competitors because the business provides mobile services which goes to the customer. Consumers have the ability to negotiate a price, request particular services, and request products to fit their environment or allergy demands. Simple Clean has the right to negotiate prices, agreements, and possible contracts with all or some consumers, especially those that do not represent a larger portion of the supplier’s sales. Simple Clean can make recommendations on products utilized for cleaning to a consumer. Competitors start seeking out other business’s customers to offer more competitive rates, better products, or service add-ons. Simple Clean has a variety of competitive factors such as the products, hours of business, services provided, and the distance of travel to complete jobs. Simple Clean would need to keep their prices at a lower cost but still pull a profit, offer a variety of business hours to accommodate the needs of the customer, and throw in complimentary cleanings for a variety of reasons. Simple Clean competitive advantages are their packages, mobile services, mobile app, cleaning chemicals, and ability to service any customer. Customer Packages allow the customer to build a package they need with the price they can afford that other companies will not be able to meet due to Simple Clean being able to match cost with 100% customer satisfaction. Mobile Services can and will accommodate customers at their location which other companies are unable to do so. Mobile App is an advantage for Simple Clean “More and more small and midsize businesses are following the mobile trend, understanding that an effective mobile strategy involves more than a friendly website” (Haselmayr 2014-2017). Simple Clean app is one that customer can make changes to, choose cleaning products, check the status of, and pay for their service.

External Environmental Analysis

The external environmental analysis for Simple Clean has found the outlook of such a business to be very promising and successful. The use of scanning and monitoring will allow the business to see environmental changes such as homeowners or business owners switching flooring, countertops, or other surfaces. According to Steve Knisley, Wholesale Carpets, “And so what I like to say in most carpets really do last you say 5 to 7 years is an average for when people do replacement” (Knisley, 2016). The changing in styles or modernization for all will require annual education and training for all employees.

Marketing Plan

Target Market and Size

Simple Cleans’ target market is made up of end-users that will use the products and services provided by our company (MaRS Discoery District, 2009). The industrial/company clientele encompass companies like hotels, restaurants, stores, medical facilities, and other similar organizations. The domestic branch of the organization provides services to homes such as large homes and assisted care services. The services provided by Simple Clean provides companies with qualified personnel, specialized equipment, ensures compliance with Occupational Safety and Health Administration requirements (OSHA), and Environmental Protection Agency (EPA) requirements. Simple Clean has a very large market who could be their potential target market, the reason for this is due to that we are a mobile cleaning company to come to its customers no matter where the location is, or what time it might be during that day. Knowing how big the market size is Simple Clean will look at their target market to maintain focus on growing and keeping customers happy. “The goal of this is to identify and prioritize the customers that will accelerate your commercialization efforts” (Bagley, 2013-2017). Also knowing that if Simple Clean can make one CEO or Manger happy in the business of hotels, stores, and medical facilities that it will be a foot in the door to the market as they will talk among themselves.

SWOT Analysis

This is the Strengths Weaknesses Opportunities and Threats assessment for Simple Clean Llc (Concept Draw, 2017).

4P’s and 4I’s of Marketing

Simple Clean services can include but are not limited to laundering, cleaning floors (sweeping, mopping, waxing, vacuuming, shampooing, etc.), dishes, scrubbing (toilets, showers, tubs, walls, base boards, etc.), cleaning out refrigerators/freezers, etc. All services can be purchased individually for a set price or as a package/bundle set for a discounted price. Larger business or clients and repeated clients have the option of signing a contract with negotiable pricing for service and the option of products. Simple Clean is a unique business in which the services provided will be brought to the clients. The mobile business will conduct all services at the location of the client’s discretion. Simple Clean will set a radius for the area of clients to service and advertise via internet, local television, newspaper, postal mail, and word of mouth. The business will benefit from advertising by setting up instrumental booths at fairs, conventions, or other public entities with a high traffic volume. Due to the nature of the Simple Clean business, providing a cleaning service is intangible but the benefit of the service can be proven with the use of before and after models or a complimentary cleaning of a small area. Inconsistency is expected because as humans have good and bad days. Simple Clean enforce policies and procedures for all employees to be trained as well as a secondary inspector at the completion of the job. Inseparability is merely impossible for businesses of which provide a service. “service companies have to uphold their business model "service" and if the service isn't good then the company's name isn't good”(Rivers, 2010). Providing excellent service and correcting bad service with the clients is the best means for Simple Clean to ensure the name and the company keep a reputable reputation. Simple Clean, as a service provider will have limited inventory of supplies whereas the main inventory will be focused on the service provided and how well trained each employee is. All employees will have annual training and be required to attend seminars/webinars to enhance their skills and abilities.

Organizational Plan

Management Comprise

The management team of Simple Clean, compiled of a variety of well talented and skilled individuals from countless levels of knowledge and disciplines. This team includes marketing, accounting, creativity and human resources all of which are held to a high level of responsibility and duties. The accounts personnel will hold responsibilities to include handling payments, schedules, setting up new accounts, etc. to ensure all clients information and payments are posted correctly and in a timely manner. The marketing team which holds the duties of partnerships, sponsorships, contracts, etc. for all equipment and cleaning supplies (Kleinbaum & Stuart, 2014). The creative team of Simple Clean will be held responsible for the development and innovation of new cleaning products and cleaning packages to offer clients. Human Resources holds the responsibility for the recruiting, hiring, termination, payroll, sick time, etc. for all employees of the business. The strong and profound comprised structure of the management team will ensure the most effective services provided to all clients.

Fig. 1.

A simple Businessal chart of Simple Clean

McKinsey 7-S Model

The strategic plan involves conducting frequent open house seminars and complimentary services for potential clients. It has also partnered with various name brand (Clorox, Gain, Tide, Swiffer, Dawn, etc.) to improve the level of cleaning quality and disinfection services for all clients. The structured setting of the business is that which the employees are expected to manage their time per job appropriately. The managers are expected to monitor employee’s performance and time length per job at which then will report findings to the president of the business. Simple Clean will have daily routine duties that will require all employees to structure their daily duties based upon the schedule of jobs which will also include stocking of supplies, stocking of mobile units, and following up with clients after job completion. The simplicity of the core values for the business focus on promoting integrity and ethics in the revolution and continual improvement of the employees, services, and products provided by Simple Clean. Simple Clean highly favors the leadership interaction in which every employee, including managers, provide input in business’s decision making process. Business decisions will be made after bringing all employees opinions and suggestions to the table for discussion. All employees will be hired according to their skill set and experience but will also receive proper training handling of all cleaning supplies, cleaning equipment, and cleaning processes. Employees will be required to possess, practice, and display a variety of customer service skills to include communication, problem-solving, critical thinking, and interpersonal skills.

Business-Level Strategy V. Corporate-Level Strategy

Being a mobile service the business-level strategy can be defined as differentiated. The business’s main priority is providing a service one step above other business’s in the competitive market. The differentiation approach places a major focus on ensuring the services provided allow the client to choose the use of their own private equipment or the high tech equipment of Simple Clean. (Jones & Hill, 2012). The corporate-level strategy for Simple Clean is a value neutral strategy. Due to the nature of the business, the value-neutral strategy does not place much concern with constant competition battles with competitors. Simple Clean will experience regulatory lapse developed through creating connections between the various departments, reduction of risks and ensuring the steady supply of cash in the business (Sabherwal, Hirschheim & Goles, 2013).

Operational Plan

Supply Chain

Simple Clean is a mid-way facilitating company. Our customers are our end users of the products and services we provide. Simple Clean provides two assets for our customers these are qualified personnel that can candle specialized equipment, and ensure compliance with Occupational Safety and Health Administration regulations. It is this training and beyond compliance that helps the company surpass its bottom line preventing potential hazards and employee injuries (Occupational Safety and Health Administration, n.d.). It is this aspect that Simple Clean possesses that helps to cut overhead for the end use customer by eliminating their need to maintain all of the compliance equipment, facilities, and training.

Partners and Suppliers

Simple clean is a unique company in that it provides a service to other companies saving them manpower, storage areas, equipment, and needed compliance training. Simple Clean does have numerous suppliers to meet the needs of the janitorial services and the dry cleaning services offered. There are two companies that are reputable and strong that will be used to provide the janitorial supplies they are Global industrial and Grainger. The benefit of these companies being global in nature will aid Simple Clean in the Transition to other global markets. The dry cleaning portion of the company be supplied by Garland Supply Company and Fabric Clean Supply. These two companies can be utilized on line via on line and in the states.

Optimize Operational Effectiveness

Simple Clean will focus on route optimization, quality, forecasting, and customer service. Route optimization will help Simple Clean daily and monthly stops effective for the company and customer. Simple Clean staff will look which clients are close in distance, and ways for the employees that are in services the clients to get there in a timely matter to save on gas, transportation wearing down, being on time to job site and possible overtime for the employees. “The idea is to reduce waste, and rework, saving money in the process, and to improve results, making the company more effective.” (Sherman, 2014-2017) Quality work will reduce rework and save money on overhead. Forecasting is what will help Simple Clean grow as our mangers and partners work together with the employees to grow and help take advantages over the rivals in the market. Simple Clean will work with it stakeholders and investors to make sure they know that their ideas are important and their support will help Simple Clean grow. Simple Clean will look at data and results to see how they can grow and improve what they need to do better. Customer Service is very important for Simple Clean as we are able to please the customers we will be able to build good relationships, and be able to grow as a company. Simple Clean will make sure that customer are happy as will make sure that their complaints are heard and handled.

Value Chain Perspective

Is that important in all areas for Simple Clean we will look at how we can buy cleaning supplies, company cars or truck, employees’ salaries, marketing, and other investments. Simple Clean will look at the overhead cost compared to what they make each month and year this will be good for us to see where cost needs to be cut and where it needs to applied. It will also be important for Simple Clean to see if it is better to buy bulk and how much money will need to need to put into company trucks, cars, equipment, and supplies. Simple Clean human resources department will be very active in the company and each employee will know who they are and that at any time they can come to them about any matter. “The tasks they accomplish are generally highly visible to your employees because they are focused on the daily work issues attributed to the ongoing needs of your team.” (Reynolds) The human resources department will have control of all hiring, and employee needs. They will work with mangers about matters that might come up. The technology will be the key for Simple Clean mobile app as there will be new updates that will come out to make the app better and more customer friendly. The information systems management is very important as it will keep simple clean up to date with the new technology.

Financial Plan

Pro Forma Income Statement

This analysis is the indicator to the business and the banks of the abilities to pay back any/all debt accrued within the business. “The cash flow analysis shows how much cash is needed, when it is needed, and where it comes from” (Brinckerhoff, P., 1994). Such a plan is a substantial factor in defining if the business plan will be financial sound and successful.

Pro Forma Income Statement for Simple Clean for the years 2017, 2018 and 2019

Break Even Point

Total Variable Costs for Simple Clean = 327,300 + 359,405 + 381,400 = 1,068,105

Total Sales for Simple Clean = 6,853,000

Contribution Margin = 6,853,000 – 1,068,105 = 5,784,895

Fixed Costs for Simple Clean = 8,209 + 6,850 + 2,015 + 18,600 = 35,674

BEP for Simple Clean is = 35,674 / 5,784,895 = 0.00617

Possible Sources for Investments Capital

Simple Clean will look for Investors, banks loans, and government grants. Bank loans will be available, but Simple Clean will look at the interest rate and only apply for the amount that is needed to get the company started. Simple Clean will complete applications for grants from the Small Business Innovation Research Program which will allow Simple Clean to start the business.

Use of Financial Information to Craft Business Strategy

The importance of the financial information for Simple Clean will allow management to obtain the gross profit margin, return on investment, debt ratio, liquidly, profitability, operating performances, monthly and yearly financial statements. All of that data will be utilized to know we are setting and looking at Simple Clean Business Strategy. Financial questions needs to be asked to put together the business strategy such as “Before you seek financing, ask yourself if your business is ready to take on new debt. Do you know exactly what you will use the money for? What would be the consequences if you default?” (Frontinelle 2015-2017) Knowing the debt ratio it would tell Simple Clean if it would be a good idea or not to spend more money on getting newer equipment, which could be part of their business plan to get new equipment in so many years.

Preferred Timing and Milestone Schedule

The preferred timing is like the goals and objectives of the company business plan in order to stand up the company in a timely manner and achieve operations in minimal time (Ernst and Young LLP, 1997).  Once these accounts are set up the company can use the funds in these accounts to set up the rest of the infrastructure of the organization. The setting up of these accounts should take less than a week baring any problems. The second stage actions include setting up a P.O. Box, licensing through city and state government agencies, paying rent for a facility to operate from, purchase vehicles to facilitate operations, and computers and software for the management of the organization which should take an estimated time line of one week or less to complete. The third stage of company development can start which includes phone lines to operate the business from, purchase and delivery of specialty cleaning equipment and supplies to facilitate training of employees and operations of Simple Clean and should take a week or less to complete. As soon as Simple Clean has everything in place for the company, management can complete training to become the initial core training team for all future employees which should take two weeks or less.  Advertising, hiring of employees, training of employees, and expansion of the company’s customer base. The Gantt Chart provides a visual picture of how the project should progress and in the order of process. 

(mindtools essential skills for an excellent career.,n.d.).

(Westland, 2013).

Contingency Plan for Major Problems or Setbacks

“A contingency is an unexpected event or situation that affects the financial health, professional image, or market share of a company.” (Duff, N.D.). Simple Clean could face several major problems or setbacks all of which have the potential of causing a negative impact on the business such as not having a very good strategy for target markets, low funding, too much overhead, and manufacturer backorders with cleaning supplies. “Your target market isn’t clearly defined so we try to sell everyone.” (Chowning 2015-2017). Simple Clean does not look at areas of interest and who they are going to target for their potential clients there could be a major setback. Simple Clean faces low funding and if unable to get those grants, we would have to look at how much we will be able to get from donations from people we know, and be very smart if we get a loan from the bank to get started. An additional problem or setback that Simple Clean could face is too much overhead. Simple Clean will need to have staff members and employees when they get started. Hiring too many people to quickly and not making enough income in return would not allow Simple Clean to grow as they would be paying all of their staff members and not making any money in return. A major problem or setback on the basis of the cleaning provided would be the unavailability of the product. Manufacturer backorders occur from time to time and it is unfortunate for the consumers.

Strategic Leadership and Entrepreneurship

Leader’s Sphere of Influence and Bias

The job of the leader is to address the external environment, ensures the team has everything they need to do the job at hand, and sets the standard for all to follow (Reynolds, 2017). If the Leader falters in any way of providing the proper work environment, motivation for success, and mitigating the external environment the organization is doomed to fail. If the leadership team provides this positive and supportive work environment for its employees, they will have a vested interest in Simple Cleans success because they will feel as if they are a vital part of the Simple clean team. The largest potential bias that could face Simple Clean is that aspects of the leaders thinking that their way is the only way of accomplishing the cleaning task, and that their employees cannot provide any incite to a better way.

Hurdles

The mobile cleaning may be a good idea of a business, although it may be met with challenges (Folbre, N. (1986). Due to advances in technology, Simple Clean has to go online to reach out to most customers. The government is also a source of anticipated hurdle in mobile cleaning services by making changes concerning and affecting the effectiveness of the business. Competition is threat when the competitor offers better cleaning services than offered by Simple Clean.

Leadership Styles

In the case of the anticipated business, the leader will have to demonstrate team leadership following the number of people that he will be working with (Obschonka 185). The leader will be better placed to distribute the respective interested parties in different locations with each team being with a leader that will be guiding them on a daily basis hence simplifying the work of the final leader at the end of the day as they will need to report to him at the end of the day to record their daily findings. Servant leadership, on the other hand, is more of creating an environment or rather an atmosphere where the less privileged are provided given an opportunity to do something that they can always count on at the end of the day and get a living out of it at the end of the day (Heinonen 660).

Potential Strengths and Weaknesses

The potential strengths to Simple Clean are mobility, technology, and well trained staff members. A strength for Simple Clean is that we are mobile company we come to the customer with our equipment to ensure their needs are taking care of without regards to time of day. Simple Clean technology is the mobile app that the market has not seen before. Simple Clean will have well trained staff with the ability to grow and represent the company in a positive matter. The potential weaknesses of Simple Clean are lack of funding, target market, and marketing. “A business owner is intimately aware of how much money is needed to keep the day to day operations running.” (Horton 2015-2017) Simple Clean will make a budget of needs to also include a safety net for emergency funds. The target market could be a weakness for Simple Clean due to the size of the cleaning market, the number of cleaning companies and number of people with a demand for cleaning.

Impact, Influence, and Delivery of Results

Simple Clean will have good leaders, proper training, and hold our employees accountable. That will help gain respect and respect comes results. “Putting together strong teams that work well is another trait of good leaders. The opposite is also true, if a team is weak it is generally a failure in leadership.” (Brisk 2017) Simple Clean leadership can influence their employees to be better and in return the company would be better as we would have better results and happier employees.

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