Cleaning Products Business Plan

The marketplace for janitorial products and services is changing, both in nature and scope. The consumer is becoming more conscious of the environmental impact of cleaners as the market expands.

ChemSafe offers a innovative line of biodegradable, environmentally safe, citrus cleaners to janitorial services, retail outlets and consumers.

The product line includes:

• Automotive cleaners;
• Industrial cleaners;
• Degreasers;
• Hand cleaners;
• Odor control;
• Tar remover;
• Concrete cleaners;
• Vehicle wash and wax products.

ChemSafe products will be used by car washes, churches, food service outlets, hospitals, manufacturing companies, and schools. A number of ChemSafe products will be available from retail outlets and any product can be purchased from the company’s secure website.

The safety of cleaning products are of more concern today than ever before. Consumers want to know if the product they are using damages the environment. ChemSafe is committed to providing safe products that protect the environment.

1.1 Objectives

• Establish ChemSafe products as the regional leader in selling biodegradable, environmentally safe, cleaners.
• Increase the number of retail outlets carrying ChemSafe products by 20% over the next two years.
• Build a solid working relationship with all the region’s janitorial companies.

1.2 Mission

ChemSafe’s mission is to introduce innovative cleanser products to its target customer base.  Charles Marshall, owner of ChemSafe, will utilize his janitorial background, his experience in the cleanser products industry, and his contacts with the region’s wholesale distributors and janitorial companies to create products that target consumers want.

1.3 Keys to Success

The keys to success in ChemSafe’s business are:

1. Offering innovative janitorial products. This is essential for maintaining the niche market sectors mentioned in the mission statement.
2. Reliable and timely deliveries. ChemSafe must make good on its delivery promises.
3. A reliable administration that is ready to serve customers, prepare accurate billing, follow-up on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable.

ChemSafe makes an innovative line of biodegradable, environmentally safe, citrus cleaners.

2.1 Company Ownership

ChemSafe is owned by Charles Marshall.  Charles has ten years of janitorial experience and seven years of experience in manufacturing cleaners.

2.2 Start-up Summary

The start-up cost of ChemSafe will consist primarily of equipment and inventory. Charles Marshall will invest $81,500. A silent partner will also invest $81,500. Charles will also secure a $100,000 loan.

The ChemSafe product line includes:

• Automotive cleaners;
• Industrial cleaners;
• Degreasers;
• Hand cleaners;
• Odor control;
• Tar remover;
• Concrete cleaners;
• Vehicle wash and wax products.

ChemSafe products will be used by car washes, churches, food service outlets, hospitals, manufacturing companies, and schools.  A number of ChemSafe products will be available from retail outlets and any product can be purchased from the company’s secure website.

Consumers are demanding environmental safe cleaners in public spaces. Additionally, janitorial firms are finding that biodegradable, environmentally safe are cleaners are a strong selling point when competing for contracts.

Last year, 1.5 billion dollars was spent on commercial cleaners. Of those sales, biodegradable, environmentally safe cleaners represented 15% of total sales. This is a 20% increase over sales the previous year.

4.1 Market Segmentation

ChemSafe will focus on three customer groups:

• Wholesale Distributors: This group is the critical supplier to retail outlets and pivotal to the success of ChemSafe cleanser products.

• Janitorial Professionals: An important key to the janitorial market is the ability to add value to cleaners through innovative products or techniques.  We believe that ChemSafe products are an invaluable tool to janitorial professionals.

• Consumers: Concern for the environment has created a group of consumers who will only use biodegradable, environmentally safe cleaners in their homes.

ChemSafe products will focus on becoming the leading provider of biodegradable, environmentally safe, citrus cleaners.

5.1 Competitive Edge

Charles Marshall is the competitive edge of ChemSafe. Charles has worked for both Acme Janitorial Products and Wilson Cleaning Services over the past fourteen years.  In his last position with Acme Janitorial Products, Charles sold cleaning products to numerous markets on the West Coast. He generated sales in excess of $4 million annually. His strength is his customer relation skills and he has been successful in expanding the range of products purchased by wholesale distributors in his sales region.

Before joining Acme Janitorial Products, Charles was a supervisor for Wilson Cleaning Services for six years.  Wilson Cleaning Services is the largest janitorial firm in the greater Lane County area with sales in excess of $4 million dollars annually.

During his years with both Acme Janitorial Products and Wilson Cleaning Services, Charles has made invaluable contacts with wholesale distributors, janitorial professionals, and commercial retail outlets. This gives ChemSafe products the competitive edge in introducing its new products to its target customers.

5.2 Sales Strategy

ChemSafe products are safe but strong cleaning products. Our target customers know that consumers want to use products that do not damage the environment. More importantly, there are no health risk in using ChemSafe products.  

ChemSafe products will have three distinct sales approaches:

• For Wholesale Distributors: We will offer the distributors a 20% discount on wholesale purchases for the first three months of operation. Charles Marshall  will market ChemSafe products to the distributors. Charles believes that distributors will see the advantage of ChemSafe products for institutions like schools and hospitals.

• For Janitorial Professionals: We will offer janitorial professionals the wholesale price for ChemSafe products for the first six months of operation. Charles Marshall will market ChemSafe products to the janitorial firms. Charles believes that these firms will see the advantage of ChemSafe products as a cheaper and safer alternative to their current cleaning materials.

• For Consumers: We will offer the consumers prices that are only 5% over wholesale for ChemSafe products.   ChemSafe will be marketed to consumers through ads in natural living magazines, like Natural Life magazine and Conscious Living magazine.

5.2.1 Sales Forecast

For the first month there will be no sales, as the company will be establishing its operations.  We anticipate that sales will grow quickly during the second and third month of operation.

The following is the sales forecast for three years.

Sales Forecast
	Year 1	Year 2	Year 3
Sales
Wholesale Distributors	$188,500	$210,000	$234,000
Consumers	$25,000	$32,000	$40,000
Janitorial Professionals	$149,000	$180,000	$230,000
Total Sales	$362,500	$422,000	$504,000
Direct Cost of Sales	Year 1	Year 2	Year 3
Wholesale Distributors	$46,800	$55,000	$60,000
Consumers	$5,000	$6,000	$7,000
Janitorial Professionals	$32,800	$43,000	$52,000
Subtotal Direct Cost of Sales	$84,600	$104,000	$119,000

Charles Marshall will be responsible for sales and marketing. ChemSafe will have a Production Manager who will be responsible for the daily manufacturing operation.

6.1 Personnel Plan

The personnel of ChemSafe are as follows:

• Owner/sales and marketing manager;
• Production manager;
• Production staff (4);
• Office manager/Web administrator;

The following is the financial plan for ChemSafe.

7.1 Break-even Analysis

The monthly break-even point is approximately $26,200.

7.2 Projected Profit and Loss

The following table and charts will highlight projected profit and loss for the next three years.

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 2842, Polishes and Sanitation Goods, are shown for comparison.