Help with Business Plan (and advice)

Matt1

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Jul 26, 2018
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Matt Felts
Hi,
I'm looking for help and advice on putting a business plan together. I currently work for a large flooring store as a service manager. The idea to start a carpet cleaning division came to me a few months ago as I got a bill from a local carpet cleaner. My thoughts were is that we have a large database with over 10 years of customers that have purchased carpet from us, so why not offer carpet cleaning ourselves to the customer. As the service manager I've had to have quite a few conversations with customers about the necessity of having their carpets steam cleaned. Most manufacturers require that the customer have their carpets steam cleaned every year to 18 months. So with that being said I think we have a good chance of having a fairly successful carpet cleaning division.

I approached my boss a few weeks ago about this possibility and he was very interested. He asked me to put together a business proposal for him. We did not discuss margins or anything like that. He said he would approach it as a partnership, so he said that I would need to put some skin in the game and that to start up he would contribute equal money to what I put in. I have done a small amount of research on what it would take to get started so far. I've been in contact with a local distributor of cleaning machines. I want to start small so I've looked at the portable options. From what I can gather so far it looks like around $3500-5000 for portable unit, wand, etc. I would start with residential homes and offer hot water extraction at first. I've also called a couple of local carpet cleaning business to get pricing, with varying quotes. I used my house as an example which is about 1500 sq ft of carpet (main floor, basement, 2 bedrooms and LR up and down). Average is around $200 for just the traffic areas hot water extracted. One guy told me .35 square foot for all the carpet with all furniture out of the way. So any more suggestions on pricing would be helpful.

Starting this would be along with my current duties as service manager. I need to see if this is even feasible. Usually it's feast or famine in service. I need to be able to show that I can take on both. My goal would be a house a day to get stated. If it takes off obviously would need to revaluate both positions. My goal would be for this to take off and become the sole focus.

I've never put together a business plan before and from the examples that I've seen online most don't seem applicable to what I'm trying to put together. I assume I need to put this together as though I'm approaching a bank. Currently I have a company vehicle that I believe would work for transporting the machine. My fuel is also taken care of. If it were just the machine that I was purchasing the $5000 ($2500 my portion) wouldn't be that big of a deal. My boss was vary vague about what he expected in it. My thoughts are I should put together a plan as if I was starting it my self and would need to cover all start up expenses. My boss did say off the during our meeting that if I gave the store $30-40 per job he would be happy with that, because to him it was just found money. He is a great guy and really does care about people succeeding. Sorry for the lengthy post. Any help would be much appreciated
Thanks
 

ACP

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Apr 9, 2014
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Bjorn Marshall
The one thing to consider is if you are eventually doing it full time, your going to be splitting profits with your boss. That could get old real quick anywhere near 50%

franchise fees rape a lot of the national chain franchisees and thats only around 15%

other then that could be a great opportunity
 

Matt1

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Jul 26, 2018
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Matt Felts
I appreciate the advice. I realise that partnerships have a tendency to get rough. My thought are that the database with it's thousands of contacts is worth quite a bit itself. If I were to stay in my current role here and take on these extra jobs of cleaning floors. What is reasonable time frame to clean one house. And is my goal of one house a day feasible? Thanks for the advice on the used portables. Great idea. I'm in Canada-originally from Texas ironically. Guess I could check out if ship to Canada.
 

Ymetimme

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Apr 27, 2018
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Tim yeater
I appreciate the advice. I realise that partnerships have a tendency to get rough. My thought are that the database with it's thousands of contacts is worth quite a bit itself. If I were to stay in my current role here and take on these extra jobs of cleaning floors. What is reasonable time frame to clean one house. And is my goal of one house a day feasible? Thanks for the advice on the used portables. Great idea. I'm in Canada-originally from Texas ironically. Guess I could check out if ship to Canada.
Believe me Partnerships are total nightmare it took me 10 years to get out of mine don't dont do it!

Start your own business and make it mutually beneficial for both of you to hire your service
It's a simple as paying them percentage for all referred work.

Having a partnership is like falling down metal stairs but having someone else help out by pushing you and then your partner promptly runs down the stairs and kicks the crap out of you!
 

Anderson

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Aug 16, 2006
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I appreciate the advice. I realise that partnerships have a tendency to get rough. My thought are that the database with it's thousands of contacts is worth quite a bit itself. If I were to stay in my current role here and take on these extra jobs of cleaning floors. What is reasonable time frame to clean one house. And is my goal of one house a day feasible? Thanks for the advice on the used portables. Great idea. I'm in Canada-originally from Texas ironically. Guess I could check out if ship to Canada.
what about just giving your boss a percent for using his database.....
dont get $$$$ from your boss for equipment.....

then it wont be a partnership

should come up with the 1500$ weer talking about
1000$ portable
600$ small 175 buffer....lite weight
http://www.steam-brite.com/koblenz-inch-carpet-shampooer-power-scrub-floor-buffer-start-p-11642.html
 

Anderson

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Aug 16, 2006
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Belton Texas
I appreciate the advice. I realise that partnerships have a tendency to get rough. My thought are that the database with it's thousands of contacts is worth quite a bit itself. If I were to stay in my current role here and take on these extra jobs of cleaning floors. What is reasonable time frame to clean one house. And is my goal of one house a day feasible? Thanks for the advice on the used portables. Great idea. I'm in Canada-originally from Texas ironically. Guess I could check out if ship to Canada.
it will take 2-3 hours to do one house with the right training and chemicals.....
I use robs chems ....best and easiest to use......
 

Ymetimme

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Apr 27, 2018
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Tim yeater
what about just giving your boss a percent for using his database.....
dont get $$$$ from your boss for equipment.....

then it wont be a partnership

should come up with the 1500$ weer talking about
1000$ portable
600$ small 175 buffer....lite weight
http://www.steam-brite.com/koblenz-inch-carpet-shampooer-power-scrub-floor-buffer-start-p-11642.html
Okay that's great

Also feel free to I M me I would highly recommend getting a Jaguar cub and a used 175 if I were you I would call cross American corporation and talk to Ed he can email over one of the papers I wrote about starting a small business it's called (being hosed)
it talks about some of the complications when getting going and some of the gimmicks out there.I really do wish you the best it's a great business to get into.
 

Garold Dixon

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Oct 10, 2018
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I myself, in past, was not an expert in this area, but as it turned out I have abilities. A few years ago, I decided to try my hand at the business, but of course, I could not do it without help. Therefore, I can recommend you to you https://www.ogscapital.com Rarely meet such professors.
 

mrotto

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great idea, but did you ever think that it may not be the right "fit" for you? cause if you dont like what you do, it will show somewhere down the line.

What I would do is call that carpet cleaner up and ask to do a "ride along" to see what they do. Don't share what your really doing this for, just say that you want see their work on a job.
Its physical labor especially if you plan to use a portable.