drycleanervalet businessplan

8/8/2019 DryCleanerValet BusinessPlan

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Computers5 Winbooks @ $900 $3,6005 Desktop Systems $3,000Wireless Network Eqp. $100

Other Current Assets_______________ $5,000_____ Total Current Assets $5,000

Long-Term Assets____________________________

Total Assets_________________________________

Total Requirements

Funding ___________________________________

Investment __________________________________

Investor 1 $17,500

Investor 2 $17,500

Investor 3 $17,500

Investor 4 $17,500

Investor 5 $17,500

Investor 6 $17,500

Investor 7 $17,500

Investor 8 $17,500Investor 9 $17,500

Investor 10 $10,000

Investor 11 $5,000

Investor 12 $5,000

Other $0

Other $0_________

Total Investment $200,000Current Liabilities_____________________________ Accounts payable $0Current Borrowing $0Other Current Liabilities $0_________ Current Liabilities $0

Long-Term Liabilities $5,000_____


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Total Liabilities $5,000

Loss at Start-up $5,000_____ Total Capital_ $5,000_____ Total Capital and Liabilities

2.3 Company Locations and Facilities

FastNready headquarters are located at 120 N. Green within 3-7 miles of our target city neighborhoods in the downtown Chicago west loopindustrial complex.

3.0 ServicesBusiness ratios for FastNready indicate strong financial growth and animpressive chance for investment opportunities, making expansion and

further development both very possible and profitable.3.1 Service Description

Fast N Ready, Inc is unique do to fact that we are not attempting to rebuildthe dry cleaning industry, but to change the way that our customersperform those services. Our goal is to transform the traditional drycleaning experience into a automated 1 3 click order process that givesthe customer complete control over there dry cleaning experience atFastnReady.com.

The customer has the option to determine exactly what amount of starchmust be applied to clothing as well as if they would like there trousers witha crease or not. From there, the customer can pick between Morning (6am

10am), Mid-Day (11am-3pm), and Late Day (4pm-8pm) for Pickup andDelivery of dry cleaned items. The service is offered Monday throughSunday. Customers have the option to have their Pickup and Drop-Off atto separate locations. The only requirement that we have is that they staywithin our service areas between The Loop and Lake View areas. Allinformation relating to the customer is accessible through the sign-insection of the website.

There are many key advantages that Fast-N-Ready.com has over traditional dry cleaning competition. The most important advantage is theconvenience factor of placing the complete order over the Internet as wellas our customer service center. The complete order process can be finishwith in 1-3 clicks. This alone gives our service a key advantage over anycompetition as well as will help convert visitors into clients within seconds.On the main website page, you have the option to place your clothingitems into our shopping cart without being a register customer or presentcustomer sign-in section to access your personal account. If you are a first


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time client, it takes an additional 4-6 clicks to become a member of FastNReady.com community.

If you need any form of help while visiting our website to complete your dry cleaning order, a Fast-N-Ready / Live Person representative will be

able to assist you through the order process within 60 seconds of accessing a Live Person chat room or calling our office number beforeand after regular hours. For all questions that cannot be answered at theFastnReady Frequently Asked Question section of the FastnReady.com,we encourage our prospective customers as well as current clients to usethe FastnReady.com/ LivePerson chat features for assistance withservice.

3.2 Competitive Comparison

Corporate Fitness is not primarily a dry cleaning service, as are themajority of our competitors. This organization is in the business of Pick upand Delivery dry cleaning for residential and corporate executive clients.The majority function is to service residential and corporate executiveclients within our specific city areas (neighborhoods) to capture marketshare from traditional dry cleaning companies. Many clients will becomeclients due to convenience, high quality and price over our traditional drycompetition in our service areas.

3.3 Fulfillment

Our principle product is two fold. We are offering a traditional dry cleaningexperience to our customers in our service areas. The additional feature isthat our services are delivered directly to customers via pickup and drop-off without the customer having to come to business location.

3.4 Market Analysis Summary

Our principle market consist of 9 neighborhoods (Greater MichiganAvenue, Streeterville, River North, Old Town, Lincoln Park, Lake View,East Lake view, West Loop, and West Town)/5 regions (Near North Side,Lincoln park, lake View, West Town, and Near West Side) within themetropolitan Chicago area. The total population of the target areas is411,853 individuals.

The dry cleaning and Laundry industry is one of the most rapidly growingindustries in the United States. With the ever-increasing number of DRYCLEANING ONLY garments labels and strong demand for one-stopneighborhood dry cleaners.FastnReady.com has the ability to become the


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principle location for more than 60-85% of our target population to performtheir dry cleaning errands.

Americans spend over $10 billion annually on laundry and dry cleaningservices in the United States. By expanding into other service areas that

meet our demographic requirements give us the ability to control as muchas 15-45 % of the total market. According to recent U.S. Census Data,that number is growing rapidly. Positive indictors for the industry includethe American populations general growth. The U.S. Census states thatover 19,000,000 new households will be created within the next ten years.This industry offers a bright and promising future.

4.1 Market SegmentationThe market for FastNready is not particularly segmented, as potentialcustomers include all downtown as well as residential and corporateexecutive clients in surrounding downtown communities.

Demographics

GeographicSegmentation

Region Near North Side (Region 1)-G.M. Ave, Streeterville, Old Town,River NorthLincoln Park (Region 2)-Lincoln Park Lake View (Region 3)-Lake View, East lake View West Town (Region 4)-West TownNear West Side (Region 5)-West Loop

Neighborhoods Greater Michigan AveStreetervilleRiver NorthOld TownLincoln ParkLake ViewEast Lake ViewWest LoopWest Town

Zip 60607 -West Loop-Region 560610 -RiverNorth-Region 1

-Old Town-Region 1


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60611-G.M.Ave- Region 1-Streeterville Region1

60613-E. LakeviewRegion360614-Lincoln ParkRegion260622- West Town Region5

60657 - Lake ViewRegion3

City - Chicago

County - Cook

Density - Urban

PsychographicSegmentation

Lifestyle 1 st Upscale2nd Moderate

Note:The target demographic is urban middle to high-income level individuals that have a limited amount of time to completesimple task time consuming task like dry cleaning. Suchindividuals our high profile professionals that wok everyday for there lifestyle and statue in there communities. Target customers are always looking for a way to limit errands and gain more time for themselves and there family.

Market Analysis (Pie)

Market Analysis

Area/Neighborhood Zip Population WardsLincoln Park 60614 64,320 & up 42Lakeview 60613 & 60614 94,320 & up 44Old Town 60610 & 60611 75,000 & up 27/43

Streeterville 60611 27,000 & up 42River North 60610 52,000 & up 42Grtr Michigan Ave 60611 11,000 & up 42West Loop 60607 13,745 & upWest Town 60622 74,468 & up

Total Areas Total Zips Total Pop. Wards8 6 411,853 4 (?)


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4.2 Service Business AnalysisThe dry cleaning industry in Chicago is completely run using the traditionaldry cleaning business model, none of which cater to the pickup and drop

off mass market by utilizing the internet as the means to service orders for dry cleaning. These organizations are primarily servicing immediateservice areas. FastNReady, however, segments its clients byneighborhoods, zip codes, and regions.

4.2.1 Business ParticipantsParticipants in the fitness industry include national competition (Exactbusiness model), regional ( Similar business model), and local competition(traditional dry cleaning firms). On the national level, companies such asZoots offer our exact business model, but do not offer the incentives suchas 24 hour turn around, online customer service, and low prices. At the

regional level, firms such as Drivecleaning.com.Door-2-Door.com, andDrycleaningValet.com offer comparable services, while locally, privately-owned business provide the service of traditional dry cleaning, but lessextensive services to dry cleaning customers that are looking for analternative service to customer service, quality, convenience, and price of the neighborhood dry cleaning firm.


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4.2.2 Ordering and Distribution of Service

Internet Orders

Internet of

Customer

Internet

Customer

FastnReady.com

Order is

Successfulat website

Order Form

At Website Data sent

to database.

Fast N ReadyEmployee accesseswebsite for nextdays orders and

other admin duties.

Company Administr ator from

Fast N Readyaccessescompanywebsitetoretrievedaily

Administrator makeshard copies of all

customer and orderrelated material.

Administrator/Employee - customerand order related material is printed

twice and scanned once for cd backup

for company related records.

FilinCabin

Backup onComputer

and CD

Order separatedinto Pickup andDrop off directionsfor driver.

DirectionsDrop Off orders

DirectionsPick Up orders

SentBy

Email

Start Shift Check off order with any

comments as you finishRoute for shift

Start Shift Check off order with any

comments as you finishRoute for shift


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2. Levering expanding customer base3. Cross selling.4. Target residential families and Professional Youngers as

well as established professionals with direct salesmen andmaterial to convert into paying customers.

5.1 Marketing StrategyFastNReady will begin by targeting middle to upper income individualsand families and/or students as well as corporate executives in theimmediate and surrounding downtown areas within 10 miles of FastNReady headquarters.

The first task is to convince our target demographic that our service isbetter than there local dry cleaner as well as adds benefits and satisfiesthe needs of the consumer. Individuals and families and/or students aswell as corporate executives that use the service because of the

accessibility, price, and quality of the experience will automaticallybecome customers for life as long as they are satisfied with the overallservices.

This will be accomplished by aggressively pursing interaction and buildingbrand awareness with our niche demographic that would experience 1less errand from using this service as the means to complete thereeveryday dry cleaning needs.

Once a strong image has been established, FastNReady will

5.1.1 Pricing StrategyPrices for using FastNReady dry cleaning services are comparable tothose of higher-end fitness centers. An customer choosing to utilizeFastNReady services will pay just below premium prices with the ability toorder there dry cleaning online as well as have pickup and drop fromanywhere in our services areas.

5.1.2 Promotion StrategyFollowing initial promotional activity through advertisements innewspapers, magazines, and television and radio, FastNready willsignificantly reduce it promotional efforts in the hope that word-of-mouthwill attract potential clients. Promotional activity will still be utilized throughmedia outlets, but only minimally. Direct print sales material will continuepenetrate the market.

5.2 Marketing Objectives1. Maintain our marketing budget at 2.5-5% of total revenue each

month.


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FastNready.com will also become popular through benefit and strategicalliances with schools and executive organization that have our targetdemographic as there club members. These presentations will allowFastNReady.com prospective and current clients to voice concerns or pains that they already experience with there current dry cleaners and

indicate how FastnReady.com can help service their needs. Throughpresentations our salesmans job is to prove to customers thatFastNReady.com prospective clients to personally control every aspect of there dry cleaning experience.

5.6 Marketing MixIn brief, our marketing mix is comprised of these approaches to pricing,distribution, advertising and promotion, and customer service.

Pricing--A keystone pricing formula is that our average garment price is $4.80 .

This insures competitive pricing and strong margins.Item Our PriceBlazer $6.75Blouse $3.95Dress $8.18Pullover $3.75Shirt $2.95Shorts $3.95Skirt $4.25Slacks $5.652 piece suit $8.48Sweater $4.85Necktie $3.73

Note: Shirts are not included in the average garment price for dry cleaningpieces. DistributionAll garments are Picked up and delivered as well as cleanedthrough our dry cleaning plant facility. The store does receive phoneorders from prospective and current customers, but our goal is to have85% of our orders through our interactive e-commerce website. Theremaining though telephone, fax and email orders.

Advertising and PromotionThe most successful advertising we believewill be from television ads, newspaper ads, newsletter/postcard, printedpromotional materials, web marketing/support, public relations,promotional Events, and other direct sales methods. As the customer database increases, we will place huge effort to retain current customersby constantly offering promotions and discounts to our current clients.


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Customer ServiceExcellent, personalized, fun, one-of-a-kind customer service is essential. This is perhaps the only attribute that cannot beduplicated by any competitor.

5.7 Marketing ResearchTwo types of market research were used when FastnReady.com wascollecting market research. The first type of research was focus groups.The focus groups were collections of seven to nine people who wereasked a series of predetermined questions with the responses recordedand discussed at a later date to gain knowledge of the targetdemographics. In addition to the pre-established questions, there was afree-flow discussion format toward the end of the focus group thatprovided flexibility in allowing the participants to share information andinsight with FastnReady executives. Also, questionnaires were used tocollect market information from perspective customers.

5.8 Sales Strategy

5.8.1 Sales Forecast

Anticipated sales are shown in the accompanying table and chart.

Sales Monthly

6.0 Management SummaryFastNReady is current a small organization head by 1 individual. TheCEO/Director of sales and marketing oversees all activities of other divisions and directors.

6.1 Organizational StructureThere are currently 4 divisions of FastNReady.com: Accounting, Customer Service, Drivers, Marketing and Production. With the growth of thecompany, additional division will have to added or the consolidation of newdivisions into existing divisions.

6.2 Management TeamOur team has the following members to achieve our plan. [x] Men andwomen who have a combined [x] years of experience; [y] years inmarketing, [y] years in accounting, [y] years in finance, [x] years in sales.

Officers and Key Employees

Elbert Clayton, President/CEO


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[b], Vice President/Director of Marketing

[c], Vice President/Director of Sales

[d], Vice President/Director of Finance[e], Vice President/Director of Floor Production

Muamer, Vice President/Director of Driver Operations

[g], Controllers[ ],[ ],

[H], Corporate AttorneyLaw Firm - Childress Duffy Goldblatt LTD

Associate Anne M. WolniakowskiParalegal/Assistant Zachary Hotle

Professional Support

We have strung together a team of professionals, including:

Joe Franklin Vice president of AMA Unversal/PuredryKwan Chung Found/CEO of Grace Engineering

Dry cleaning and equipment distributor/maintenance expert.Angel COO of Stan King Principle of Sales at Forenta USA.

6.3 Management Team GapsThe gaps of FastNReady management team include:

- Lack of complete experience in the dry cleaning productionindustry but can be replaced with consultants and trainingfrom experienced industry veterans.

6.4 Personnel Plan

FastNReady personnel staff requirements are shown in the table below.

Personnel Titles and Job Descriptions

Customer Service DivisionCustomer Service Team leader


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Meet and/or exceed the companys standards for sales, service and thesupervision of all associates ensuring compliance to policy andprocedures and to service the cleaning needs of our customers. Flexibleschedule including weekends.

Customer Service Online PersonnelPart-time. Assist online prospective and current clients by providing andexceeding company standards for sales, service, knowledge, andconverting prospective clients into paying customers.

Sales RepresentativeWe are currently seeking aggressive individuals for full time outside salespositions for home/business delivery services for the city of Chicago.Flexible hours but must have Morning/mid day and weekend availability.No formal experience is necessary. We offer our associates aprofessional, supportive environment in which to develop their talentsand grow with the company. Base Salary plus commission andcomprehensive benefits package.

Production Plant DivisionDry Cleaning Station

Entry Inspector/Machine Operator Garment inspector/detailers needed to work at our new facility.

Opportunities for 1 st and 2 nd shit. No experience necessary.

Entry Spotter/Machine Operator Entry Inspector/Machine Operator Garment inspector/detailers needed towork at our new facility. Opportunities for 1 st and 2 nd shit. No experience

necessary.Pants Station

Join our team at our state-of-the-art cleaning plant in Chicago, will train.Coats/Dress Station

Join our team at our state-of-the-art cleaning plant in Chicago, will train.Cabinet Shirt Unit

Join our team at our state-of-the-art cleaning plant in Chicago, will train.Conveyor

Exit Quality Inspector Terrific Opportunity for self-motivated, detail-oriented associate withgreat communication skills and data entry experience. Primary

responsibilities include accurately and efficientlyevaluating garment and packaging quality against establishedcriteria, and meeting sampling quantity goals. Responsible for producing qualityreports and charts on a daily and weekly basis. Responsible for communicating quality issues to plant manager, supervisors, leaders,and facilitating communication of quality garments.

Assembler Associates need for our state-of-the-art cleaning plant to assemble dry

cleaning orders as they come in. Must be detail oriented and beable to read English.

Route DivisionDriver Team Leader

This individual is responsible for supporting all delivery operations andensuring that the on-time Pick and Delivery of dry cleaning to our customers meets company standards. Responsibilities include

and ensuring that all routes operate efficiently and the manifests arecorrect and accurate. The team leader will serve as a back-up driver asneeded and you must have a clean driving record and the ability


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to work independently and in the Chicago Metro and downtownarea as required.

Driver AssociateReliable individuals with strong customer service skills are needed to

pick up and deliver dry cleaning orders for our home/businessdelivery service. Applicants should possess a valid IL driverslicense, safe driving record and the ability to work independently. Previous

delivery/sales/customer service experiencepreferred.

Machine and Boiler Room MaintenanceMaintenance Supervisor (1-2)

This position will be responsible for the maintenance and operationalreadiness of a 12+ sq.ft. Plant including preventative maintenance andfacility cleaning as well as all admin. , purchasing functions. Exp. Withpressure steam, boiler maintenance and operation, and executingpreventative maintenance systems a must. Previous supervisory andTech/Fireman Class III license a plus.

Driver DivisionDrivers/Customer Service Rep (2 Employees per Vehicle)

Reliable individuals with strong customer service skills are needed topick up and deliver dry cleaning orders for our home/business

delivery service. Applicants should possess a valid IL driverslicense, safe driving record and the ability to work independently. Previous

delivery/sales/customer service experiencepreferred.

7.0 Financial Plan

- All revenue will come from the service of dry cleaning until our wash andfold laundry service is available.- Management Salaries and Production Labor are the two major expenses, while depreciation is another significant cost that will increaseas the company develops. Although the purchasing of productionequipment, office equipment, vehicles and maintain is expensive, constantmaintain will be needed to maximize production flow/rates and to maintaincompetitive edge.- In order to maintain steady gross margin, salaries and advertisingexpenses are not likely to increase within the first two years of operation,unless cash flow significant increase.

7.1 Important Assumptions

Three assumptions for FastnReady.com:

1. A constantly growing economy in the metro Chicago region.2. No unpredictable charges in dry cleaning licenses, insurance fees,

and personnel turnover rate.3. No major national or global events that threaten the stability of our

economy in the city and surrounding Chicago regions thataffect the citizens of the area.


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7.2 Key Financial indicators

The most important financial indicators are net increase in cash andnet income as well as paying clients. Net increase from cash will

exemplify the relationship between net income and net cash from

operating activities. The greater the increase is, Fastnready.com hasthat level of financial strength at that point in time. The greater number of clients each month will increase overall numbers except interest

rates on short and long term assets as well as add to our bottom line.

Important benchmarks monthlySales IncreaseGarment collection IncreaseOperating expenses DecreaseGross margin @ or Increase

7.3 Projected Financial ForecastSales Forcast7.4 Linking Expenses to strategy and tactics

Our marketing expenses are allocated based on this prioritized approach:

1. Invest in our current customer base 30%2. Invest in prospective customers that match our known profile 60%3. Invest in creating greater awareness in the community 10 %

Sales vs. Expenses monthly graph

7.5 Break-even Analysis

7.6 Contribution MarginsA key component of our marketing plan is to keep gross margins at or above 45%.

Contribution monthly

Table: Contribution Margin

Contribution Margin

7.7 Business Ratios

7.8 Controls & Implementation


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drycleanervalet businessplan

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