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PAGE 1 Company Proprietary and Confidential Re-Pro Cleaners
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PAGE 1
Company Proprietary and Confidential
Re-ProCleaners
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Company Proprietary and Confidential
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Company Proprietary and Confidential
Business Description
• Partnership: DJ O’Brien, Caleb Taylor, Isaiah Rustad & Kristen Reuter
• A cleaning company for businesses or banks that repossess foreclosed homes
• Hired by bank institutions of the Chicago, IL area
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Company Proprietary and Confidential
DJ O’Brien Kristen Reuter
Isaiah Rustad Caleb Taylor
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Company Proprietary and Confidential
First Year Expenses$98,306.89
• Anticipating expenses to rise as we plan on growing within the next year
• Direct relationship between operating cost and the business’s revenue– More Homes = More $$$
– More Homes = More Supplies
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Company Proprietary and Confidential
Start-Up CostPayroll: $66,000
Cleaning Supplies: $15,000
Subcontracting: $12,921
Advertising: $2,460
Office Space Rent: $2,196
Liability Insurance: $575.16
Website Creation: $295
Small Business License: $250
QuickBooks: $132
$98,306.89
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Company Proprietary and Confidential
Cost of Service• Start with one house a week• Supplies: Average of $151/job• Payroll = $1,320/job
– DJ & Caleb (Laborers) - $12/hour @ 40 hours/week– Isaiah & Kristen (Office Job) - $9/hr @ 20 hours/week
• $1,471/job• Subcontractor: possible $646.08/job
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Company Proprietary and Confidential
Prices
• Average Chicago home – 2,598 square/ft– Charge $2/sq.ft.
– Costs us $0.57/sq.ft.
– $5,196 average price
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Company Proprietary and Confidential
First Year ProfitsTotal Revenue $259,800Cost of Goods Sold ($15,000)Gross Profit $244,800Operating Expenses Salaries $66,000 Bank Loan $60,000Loan Interest: 4.5% $1,472.52 Rent $2,196Equipment Depreciation $174.50 Total Operating Expenses ($129,843.02)Taxes ($25,980)Net Profit $88,976.98
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Company Proprietary and Confidential
Gross Profit MarginProfit Margin = (Sales
- COGS) ÷ Sales
Profit Margin = ($259,800 - $15,000)
÷ $259,800 x 100
Gross Profit Margin = 94.2% efficient
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Company Proprietary and Confidential
Market SizeHouses
• 1.12 million foreclosed in the US
• About 5.5 million homes have been foreclosed since 2008
• In 2013 the revenue of cleaning services in the US reached $50.68 billion
Banks
• 5381 financial institutions in the US
• 94,725 branches off the institutions
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Company Proprietary and Confidential
Target Market
• Chicago, Illinois and the surrounding areas
• 13,880 foreclosed homes in the Chicago area in 2014
• Focusing on small banks
• Not interested in big banks, not interested in us
– Couldn’t handle work load
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Company Proprietary and Confidential
Market Segmentation
Foreclosed Houses in Chicago
Remaining Market - 99.63%Our Market - .37%
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Company Proprietary and Confidential
Marketing Mix
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Company Proprietary and Confidential
Competitors
Northern Illinois Estate Cleanouts
Strengths• Same day junk removal• Prices vary by the truckload, not the
house• Tends to work with owners of the
foreclosed home, not the bank owners
Weaknesses• Junk removal only. No maintenance or
repairs
All Precision Maintenance
Strengths • Exhaustive list of jobs they can do other
than with foreclosed homes• In Chicago as well as other surrounding
states• No hidden fees. Small business feel.
Weaknesses• Website is not extensive and is hard to
find online
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Company Proprietary and Confidential
Other CompetitorsA Clean Slate Cleaning ServiceStrengths• Environmentally friendly cleaning service• Detailed cleaning for many businesses and people
Weaknesses• only focus on a small portion of foreclosed houses• Don’t do junk removal
Arbek Maintenance Group Strengths• Cleaning service with a wide variety of clients• Works to meet the evolving needs of clients
Weaknesses• Poorly laid out website• No specific specialty for clients. No strong suit
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Company Proprietary and Confidential
BusinessShort Term Goals: (1 year)• Increase revenue by at least
15%• Increase jobs by adding 10
to 12 positions• Purchase a company van to
haul and store cleaning supplies and equipment.
Long Term Goals: (5-15 years)• Become first choice for a
major bank in Chicago• Expand to new territories• Become a nationally
recognized company• Offer different range of
services
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Company Proprietary and Confidential
Operational Issues
• Unexpected issues while cleaning– Run into problems we can’t fix
• Location – Hard to get to/far away
• Facility issues – Small office space to start
• Rapid growth Actual Photoof
Caleb Taylor
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Company Proprietary and Confidential
Marketing Strategy
• Isaiah and Kristen will meet with bank managers to sell our service to them
• Folder with company information, business card
• Word of mouth and professional face to face meetings
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Company Proprietary and Confidential
Cost of Advertising
• $937.13/year– Color Printer - $229.99– 100 Advertising Portfolios - $221.24– 500 Pamphlets - $182.40– 500 Business Cards - $8.50– Website - $295
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Company Proprietary and Confidential
Why Re-Pro Cleaners?
• No competitors that do exactly what we do• We strive for fantastic customer relations• Not only is this business recession proof, it is a
recession built industry
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Company Proprietary and Confidential
Thank You!
