one call does it all premierportapotties.com business plan

ONE CALL DOES IT ALL

premierportapotties.com

Business PlanBoyd County High School - Spencer, Nebraska

Nebraska Chapter - Chapter #17503

HEATHER ATKINSON - JOSEPH HIATT - LAURYN HOFFMAN

2019-20

Premier Porta-Potties premierportapotties.com


Table of Contents 1

1.0 Introduction 1.1 Executive Summary .......................................................................................................................... 2 2.0 Company Description 2.1 Legal Form of Business ..................................................................................................................... 2 2.2 Effective Date of Business ................................................................................................................ 2 2.3 Company Mission Statement ........................................................................................................... 2 2.4 Company Governance ...................................................................................................................... 3 2.5 Company Location ............................................................................................................................ 3 2.6 Immediate Development Goals ....................................................................................................... 3 2.7 Financial Status ................................................................................................................................. 3 3.0 Industry Analysis 3.1 Size and Growth Rate of Industry .................................................................................................... 4 3.2 Nature of Competition ..................................................................................................................... 4 3.3 History of Industry ............................................................................................................................ 4 3.4 Trends and Strategic Opportunities................................................................................................. 4 4.0 Target Market 4.1 Defined Target Market ..................................................................................................................... 4 4.2 Size and Growth Potential................................................................................................................ 4 4.3 Market Potential, Current Patterns, and Sensitivities .................................................................... 5 5.0 Competitive Analysis 5.1 Key Competitors ............................................................................................................................... 5 5.2 Future Competitors .......................................................................................................................... 5 5.3 Barriers for Future Entry .................................................................................................................. 6 6.0 Marketing Plan and Sales Strategy 6.1 Key Message ..................................................................................................................................... 6 6.2 Message Delivery.............................................................................................................................. 6 6.3 Sales Procedures and Methods ....................................................................................................... 7 7.0 Operations 7.1 Business Facilities ............................................................................................................................. 7 7.2 Production Plan ................................................................................................................................ 8 7.3 Workforce Plan ................................................................................................................................. 8 7.4 Impact of Technology ....................................................................................................................... 9 8.0 Management and Organization 8.1 Key Employees, Board of Directors, and Human Resources .......................................................... 9 8.2 Identifying, Recruiting, and Securing Key Participants ................................................................. 10 8.3 Compensation and Incentive Plans................................................................................................ 10 9.0 Long Term Development 9.1 Future Goals ................................................................................................................................... 10 9.2 Risks and Potential Adverse Results .............................................................................................. 11 9.3 Long Term Goal Strategy ................................................................................................................ 11 10.0 Financial Plan 10.1 Accounting System ....................................................................................................................... 11 10.2 Financial Projections .................................................................................................................... 11 10.3 Loan Amortization ........................................................................................................................ 11 10.4 Cash Flow Statement.................................................................................................................... 11 10.5 Monthly Income Statements ....................................................................................................... 13 10.6 Annual Income Statement ........................................................................................................... 13 11.0 Appendix 11.1 Works Cited .................................................................................................................................. 14

11.2 Supporting Documents ................................................................................................................ 15

Click the icon to watch the video for Premier Porta-Potties on the Boyd County Schools website.

https://www.boydcounty.org/vnews/display.v/SEC/Activities%7CFBLA



1.0 Introduction 2.0 Company Profile

2

1.1 Executive Summary After the historic flooding in March of 2019, when residents of Boyd County went months without running water, it became evident that a business offering quality portable toilets is essential. Many community members, businesses, and institutions needed access to portable toilets and could not acquire them. The Federal Trade Commission stated that portable toilets are only provided by a company every 7 out of 10 times when needed in urban areas. This statistic shrinks to 4 out of 10 times in rural areas. Unfortunately, this is the reality for Boyd County. In a close-knit community that hosts innumerable events that require portable toilets, it was obvious there was a desperate need for change.

Premier Porta-Potties is a business located in Spencer, Nebraska. Premier Porta-Potties aims to give customers a personalized and quality experience. The business plans to utilize modern equipment and prioritize customer service to create an experience that is convenient for customers and superior to any competitors. As the only portable toilet business in the local area, Premier Porta-Potties is committed to providing quality services to ensure that one call does it all. The owners will be focusing on a local, friendly atmosphere, with a close-knit staff that cares about their customers.

Premier Porta-Potties operates as a Limited Liability Corporation, allowing business owners protection for their personal assets. The owners of Premier Porta-Potties believe that hard work and dedication to the local community will allow for growth and success of the company. As the business gains more clients, it is expected that customers will pass on information about the excellent services that Premier Porta-Potties provides. Premier Porta-Potties has the potential to expand and provide services to areas beyond Boyd County. They hope to combine their innovative skills to provide a unique and superior experience.

The entire workforce of Premier Porta-Potties is dedicated to delivering quality service that ensures “one call does it all”. The owners believe that by keeping costs minimal, the business will be able to reach out to potential customers to establish their excellent services.

Within five years, Premier Porta-Potties hopes to purchase real estate and the building they are currently based in, rather than continue to rent the location. Long term, owning the land and building will prove to be beneficial to the financial state of the business. Once the building and land is paid for, only minimal upkeep costs will remain. In addition, the business will have acquired an increased value due to owning an office and real estate.

2.1 Legal Form of Business Premier Porta-Potties will be organized as a Limited Liability Company (LLC). An LLC shares the same advantages as a sole proprietorship and general partnership: no double taxation and management flexibility. An LLC will be taxed as a partnership; which means all profits and losses will be recorded under each co-owner’ tax return. An LLC will also have the benefit of limited liability, resulting in a 0% risk of the owners’ personal assets. With recent amendments to the U.S. Tax Code in Congress, subjects to Pass-Through Taxation will be able to deduct 23% of their taxable income.

2.2 Effective Date of Business Premier Porta-Potties will begin operations on September 7, 2020. Before opening day, Premier Porta-Potties will create and organize a working environment with customers and local businesses. The owners will be certain to monitor the current status of the COVID-19 pandemic and will follow all guidelines.

2.3 Mission Statement/Vision

LLC Benefits Management Flexibility: An LLC can opt to be managed by the members, which allows owners to share in the business’s decision-making.

Limited Protection from Liability: Owners will enjoy limited liability, which means they are personally protected from any liability of the LLC.

Pass-Through Taxation on Profits: An LLC is a pass-through entity, meaning the profits go to members without taxing on the company level.

“Premier Porta-Potties strives to be the premier service provider and continuously deliver superior service to our customers, retain high-quality employees, and increase stakeholder value. We plan to provide quality

services that are not currently available to patrons of the surrounding communities.”



2.0 Company Profile 3

2.4 Company Governance Premier Porta-Potties will be governed by Heather Atkinson and Joseph Hiatt under the guidelines of a Limited Liability Corporation. Partners will split revenue evenly and contribute equal investment to establish the business. Each owner holds a different leadership role within the company. The owners and staff at Premier Porta-Potties make decisions to keep the company up to date with changing protocol, new innovations, and regulation standards.

Each partner will adhere to the following guidelines for successfully running the company: Ensure customer satisfaction Create and maintain extraordinary customer relationships Provide customer support Maintain open communication between employees and managers Optimize workforce efficiency

Heather Atkinson will hold the position of Chief Operations Officer, as well as assume the duties of Chief Financial Officer, for Premier Porta-Potties. Ms. Atkinson received a Bachelor’s degree in Marketing & Management with an emphasis in Human Resources from the University of Nebraska-Lincoln, and a Master’s degree in Business Administration from the University of Nebraska-Omaha. She will serve as the main consultant, will handle day-to-day operations, budgeting, profits and losses, and coordinate human resources.

As the partner with experience in business operations, Joseph Hiatt will serve as the Chief Executive Officer of Premier Porta-Potties. With a Master’s Degree in Business Administration from Stanford University and a Doctoral Degree in Management, he will oversee all operations of Premier Porta-Potties and be primarily concerned with employee management and business affairs.

2.5 Company Location Premier Porta-Potties will be along Highway 12, just outside of the business district in Spencer, Nebraska. Spencer is a rural community with a population of 428 residents and is the central community of Boyd County, which has a population of 1,131. This section of Highway 12 is heavily traveled because it intersects with

Highway 281. Premier Porta-Potties will rent a vacant building and lot at 202 NE Hwy -12, that is owned by NorthView Family Farms and was previously utilized for offices and equipment storage.

2.6 Immediate Development Goals

For Premier Porta-Potties to experience success as soon as operations begin, it is critical that the owners initiate the development of assets directly upon the company’s initiation. Premier Porta-Potties must:

2.7 Overview of Company’s Financial Status Premier Porta-Potties will establish funds from the owners and a loan from the bank. For the company’s start-up, both of the individual owners will invest $50,000 into the business. A business loan of $191,000 will be taken from Butte State Bank to account for the cost of inventory, equipment, technology, and business expenses. The owners have also been advised to designate a significant amount to the company reserve in case of emergency or unexpected expenses. Between the loan from the bank and the $100,000 that the owners have invested, the business should have $65,000 in reserve dollars.

Start-Up Costs ($) Rent 1,495

Inventory & Equipment 195,000

Technology & Office Supplies 30,000

Reserve 65,000

TOTAL $291,495



3.0 Industry Analysis 4.0 Target Market

4

3.1 Size and Growth Rate of Industry In 2018, the United States porta-potty industry’s size was valued at $15.08 billion, according to United States Department of Labor. This industry has grown 4.6% on average over the past five years. With this recent growth, the total revenue has reached $2 billion and the number of businesses nationwide has reached 3,362.

3.2 Nature of Competition Powers Porta-Potties and Lon’s Jons are the largest competitors. The portable toilet industry is clearly important, and for the surrounding area, forming this business would satisfy many needs. There is a limited amount of competition and that competition cannot compete with the convenience and flexibility that Premier Porta-Potties would offer. A little competition for the business can be “healthy”. The competition has similar goals—they worked hard to get where they are and the Premier Porta-Potties owners will need to respect the competition. Keeping customers focused on services of Premier Porta-Potties will make a stronger impression than focusing on the negative points of competitors. It can be very easy to copy competition, but it is essential that Premier Porta-Potties develops unique ideas, personal touches, passion, and history.

3.3 History of Industry The porta-potty business can be traced back to World War II. Porta-potties were invented to serve ship crews. Around the 1970s, there were a series of portable restroom modernizations that greatly improved the cleanliness, transportation, and experience for consumers. The first of these inventions was the fiberglass portable restroom. This switched the restroom materials from wood and metal to the lighter fiberglass material. Shortly after the invention of the fiberglass restroom, the polyethylene portable restroom was first put on the market. Luxury restroom trailers have been popular since 1984. These portable restrooms have flushing toilets, running water sinks, and, sometimes, even heating and air conditioning.

The portable toilet industry in Boyd County is very simple. Spencer Sanitation opened in 1951, with most residents of Boyd County and parts of Holt County utilizing this service. In 1988, Spencer Sanitation closed and residents of Boyd County and Holt County had to explore other options to rent portable toilets.

3.4 Trends and Strategic Opportunities With the recent flood in the community, Premier Porta-Potties is presented with a responsibility of fulfilling a desparate need. Specifically in Boyd County, it will be easy to attract customers because of the recent need for porta-potties due to a shocking lack of running water. Outdoor events are becoming a more and more common trend and this growing trend provides Premier Porta-Potties with an opportunity to provide services. In addition, having a porta-potty business in Spencer will be very convenient for individuals who live closer to Spencer than to Pierce (Lon’s Jons) or Avon (Powers Porta-Potties). Premier Porta-Potties is going to use these trends and opportunities to attract new customers, with plans to keep current customers by providing excellent services, as well as building strong relationships with all customers.

4.1 Defined Target Market Premier Porta-Potties focuses on providing an accessible service to Boyd County patrons. With three major porta-potty companies within the target market radius, Premier Porta-Potties attracts customers outside of Boyd County, thus, the target market can be easily attracted. The target market is the population of people in and around Boyd County that require porta-potty renting services, including all demographics and both households and businesses. Premier Porta-Potties will strive to serve the entire target market radius, fulfilling all customers’ needs.

4.2 Target Market Size, Growth Potential, and Needs

Boyd County is in desperate need for Premier Porta-Potties due to the recent flooding and the need for portable restrooms to be available for all of Boyd County’s outdoor events. The target market radius extends beyond Boyd County, giving the business’ services a further reach. The entire target market has potential to retain the services of Premier Porta-Potties. From Service Sanitation, the portable toilet rental industry grew quickly due to high levels of road and bridge construction activity and demand from outdoor recreation sites, public and private events, and political gatherings. Within the next year, it is expected that there will be an 8.9% increase. This suggests that the demand within the target market radius will continue to grow.



4.0 Target Market 5.0 Competitive Analysis

5

4.3 Market Potential, Current Patterns, and Sensitivities Premier Porta-Potties plans to achieve a large market share, however, there are a number of sensitivities that need to be taken into account in order to ensure that the company continues to be successful. Boyd County is in desperate need for this business due to the recent flooding and need for portable restrooms to be used for all of Boyd County’s outdoor events. The current patterns of the market include regular community events and projects. However, despite the location far from any towns populating over 4,000, Premier Porta-Potties is willing to travel for customers. The business will not only serve the Boyd County region, but any who need the services. Premier Porta-Potties will strive to build a reputation in the community and surrounding areas.

5.1 Key Competitors Powers Porta-Potties Powers Porta-Potties is by far the largest competitor to Premier Porta-Potties. This company dominates a majority of the market share in rural northeast Nebraska and southeast South Dakota because of their transportation and distribution services. Powers Porta-Potties transports portable toilets to over 50 other communities outside of Avon, South Dakota. The weaknesses of Powers Porta-Potties is that their business has no social media presence, and has limited public relations. The weather also interferes with some delivery because they serve a radius of over 100 miles.

Lon’s Jons Located in the heart of Pierce, Nebraska, Lon’s Jons serves the majority of the city of Norfolk and the surrounding communities. Ordering is available online or by phone. Lon’s Jons is located close to the major events in Norfolk. Although Lon’s Jons serves so many people, they are understaffed and need a 2-4 week notice for rentals. They also do not transport over 60 miles from Pierce, limiting their distribution.

5.2 Potential Future Competitors Break Time Portables Break Time Portables is a flourishing portable toilet business located 60 miles away, in Platte, South Dakota. It is beginning transportation services to surrounding areas and into Nebraska. With Break Time Portables expanding transportation services, they may become a potential future competitor to Premier Porta-Potties. Break Time Portables is also experimenting with new portable toilet technology, as will Premier Porta-Potties. This business does have good rapport, but the delivery will be far from most of the target market of Premier Porta-Potties.

COMPETITIVE ANALYSIS

Pricing

Customer Service

Facilities

Public Relations

Special Services



5.0 Competitive Analysis 6.0 Marketing Strategy

6

ONE CALL

DOES IT ALL

5.3 Entry Barriers for Future Competitors Potential new competitors will face the following barriers: the market is absorbed, limited property available, and employee shortage. The target market will be fully absorbed by Premier Porta-Potties, as well as the other companies in the area. With the population of the county being only 1,131, there is only a need for one company. Location is an additional barrier because there is limited property available for purchase. With Premier Porta-Potties present in Spencer, it is the central location of the county. Finding employees will be difficult for future porta-potty companies because the majority of individuals with the proper qualifications in the area will be currently employed.

6.1 Key Message Premier Porta-Potties’ key message is “one call does it all”. A huge outdoor event could be coming up or a natural disaster could happen that calls for porta-potties. One call to Premier Porta-Potties and everything is handled at an affordable price. Premier Porta-Potties will provide services quickly and efficiently for customers.

6.2 Message Delivery

Internet Many businesses use the internet as a way to attract customers. Premier Porta-Potties’ website will be an avenue for curious customers to find out more information about the business and available services. Premier Porta-Potties will secure the web domain www.premierportapotties.com. The website will be utilized to keep viewers up to date with information, as well as provide information to potential customers. This individualized approach, the mission statement, and company history will be displayed on the website’s home screen. Services, staff, resources, and contact information will all be easily accessible. In addition, there will be options to place orders, pay bills, and view records.

Social Media In the upcoming age of technology, businesses can immensely benefit from taking advantage of social media as a way of connecting with potential customers. Premier Porta-Potties will be using a popular social media site to increase the customer base. The owners chose to use Facebook because it is very common and highly used by the target market. The Facebook Page, Premier Porta Potties - Spencer, NE, will allow the public to “like” the page to receive status updates. The great benefit of Facebook is that when a user “likes” the page, all of their Facebook friends will see this on their newsfeed, which will expand the advertising reach.

Mobile Application Premier Porta-Potties’ mobile application allows interested or current customers to view company information. Users may also have the option to receive notifications for bills, promotions, and informational updates. Customers will have the option to place orders on the application and also will be able to scan the QR Codes on advertisements. In addition, contact information and a list of employees will be included. Customers will also be able to create a personal profile on the mobile application that will safely manage their personal information and billing history.

Radio The business will utilize the local radio stations KBRX out of O’Neill, NE, KGRD out of Orchard, NE, and KBRB out of Ainsworth, NE to share daily advertisements, contact information, and the services offered. By advertising on the radio, Premier Porta-Potties will be able to reach residents of Boyd County, as well as individuals who live in surrounding counties, who may want to utilize these services.

Print Premier Porta-Potties will place an advertisement in the local newspapers, The Spencer Advocate, The Butte Gazette, and The Holt County Independent each week that provides company information and resources to readers. Nearly 1,000 residents of Boyd County and 4,500 residents of surrounding areas receive the local newspapers each week. Using print advertisements is a great way to make the local public aware of the new business.

http://www.281familypharmacy.com



6.0 Marketing Strategy 7.0 Operations

7

Restroom

Break / Meeting Room

CEO Office

COO / CFO Office

Maintenance

Restroom

Retail Waiting Area

Technician

work area /

storage Technician

Office

Server /

Storage Room

Work Space

6.3 Sales Procedures and Methods The sales procedure will involve different systematic steps to transition the customer from awareness of the business to actually making a transaction. There are numerous ways a potential customer could find interest in Premier Porta-Potties, including social media, website, mobile application, and promotions listed prior. Once a customer is aware of and interested in the services that Premier Porta-Potties offers, an account will be created for them in the company portal by the office manager or the technology specialist. First time customers will submit personal and billing information.

Premier Porta-Potties will rely on referrals from local governments, businesses, and community members. The owners, Heather Atkinson and Joseph Hiatt, intend to visit local officials and businesses to meet with office managers and executives to discuss services and products offered by Premier Porta-Potties. Sit down meetings will occur in order to establish an understanding of the services Premier Porta-Potties offers and how “one call does it all”. Communication between local contacts will continue into the future to maintain business relationships. As the business grows, these connections will continue to expand. To appeal to the local population, it will be important for Premier Porta-Potties to develop a strong relationship with local organizations in the community. Traveling to surrounding centers of interest will give the owners advantages over the competition.

7.1 Business Facilities To give an environment of community, Premier Porta-Potties will strive to greet customers with energy and to connect with them at a personal level. The staff will work to create a positive atmosphere. Upon entering Premier Porta-Potties, customers will be met by the office manager at the service counter. In the waiting area, comfortable seating is provided and various retail products are available for purchase. Off of the waiting area is a public restroom. The hallway leads to the staff break room and offices for the owners. Connected to the building is the technician work area where portable toilets, tools, and vehicles are stored. The registered address will be 202 NE Hwy-12, Spencer, NE 68777.



7.0 Operations 8

7.2 Production Plan Premier Porta-Potties will be open 9:00 am to 5:00 pm Monday through Thursday and 9:00 am to 2:00 pm on Friday. The owners, Heather Atkinson and Joseph Hiatt, will arrive at 8:00 am to prepare for the day, handle any orders, and return any missed calls. The service technicians will work from 9:00 am to 5:00 pm Monday through Friday and varying times throughout the weekend. The office manager will work 8:30 am to 5:30 pm Monday through Thursday and 8:30 am to 2:30 pm on Friday. The marketing and technology specialist will be scheduled to work Monday through Thursday from 8:00 am to 1:00 pm. The business' retail sales and offices will be open during all hours of operation. Employees may work outside of operation hours as needed. Orders can be received through the company website and the mobile application outside of operation hours.

7.3 Workforce Plan

Employees will be hired by the owners after being evaluated. Evaluation will be based on the applicant’s expertise, shared belief in the company vision, and dedication to the success of the company. Prior to hiring, all potential employees must fill out and submit Premier Porta-Potties’ job application form that can be viewed in section 11.2 of this business plan. All hired applicants will be subject to bi-monthly employee evaluations to ensure the company runs efficiently. Prior to the company’s initiation, Premier Porta-Potties plans to hire five employees in order to support the company efficiently in the opening years. However, as Premier Porta-Potties expands, the company will hire more employees to accommodate the growing business needs.

In addition, to gain employee loyalty, all employees’ base wages and salaries will increase by 3% each year after an annual review by the owners and the company advisory committee. In addition to the owners, to maintain steady operations throughout the day, one maintenance technician, two service technicians, one office manager, one marketing and technology specialist will be hired. As vital employees, the staff will determine the long-term success of the company; the employees must possess a strong passion for their work and support the company’s goals.



7.0 Operations 8.0 Management and Organization

9

7.4 Impact of Technology By implementing innovative technology into the business, the employees will be able to create an efficient work environment. The owners, office manager, and marketing and technology specialist will each have a 2018 iMacPro 27-inch Retina 5K 5120-by-2880 P3 Display desktop computer equipped with software for the company. These high quality computers enable the staff to complete tasks quickly and efficiently. The business will also install ADT security cameras. The technology the business will own will allow employees to implement the following:

Accounting The operations manager of Premier Porta-Potties will use QuickBooks Desktop Premier 2019 to properly organize the company’s financial information. This computer program allows flexibility and helps the business save valuable time and money. More details regarding the accounting system can be found in section 10.1 of this business plan.

Communications Through the company website and email server, employees can email one another, host meetings, and email customers. This allows employees to keep clients informed and communicate even when not in the office. The mobile application has an employee portal that will allow employees to view information from mobile devices. The Panasonic telephone system allows the office manager to transfer calls to specific employees and each employee will have their own voicemail account.

Digital Advertising Premier Porta-Potties’ website, mobile application, and social media account will provide the public with important information about the business and the services provided. The desktop computers will provide the marketing specialist with the opportunity to create intriguing and attractive advertisements.

Repairs and Servicing In order to make repairs to the portables, adequately maintain them, and service them as needed, Premier Porta-Potties will rely on a number of technologies. Tools requiring technology will be necessary to perform repairs including welders, gauges, air compressors, and power tools. Online manuals will also be used to diagnose specific issues. The internet will be utilized for instructions on how to perform repairs that the technicians are unfamiliar with. This will save money by not having to hire an additional repairman to come to the site. For proper servicing and sanitation, the business will need electric waste hoses, washing tanks, and cleaning machines.

Software The software that Premier Porta-Potties will use is ServiceCore. This software also serves as a point-of-sale system that integrates a wide array of services. With dozens of interfaces and integrations, this software will easily be incorporated into the workflow. Using this central management software with an easy-to-use interface will allow the business to have an efficient workflow setup, customizable reporting, customer management, scheduling and route optimization, claim reconciliations, an employee portal, and time clock availabilities.

8.1 Key Employees, Advisory Committee, and Human Resources Premier Porta-Potties will structure business operations by the business hierarchy which can be viewed in section 7.3 of this business plan. The owners will oversee the performances of other employees. Each employee will sign a contract agreement with their duties and responsibilities, as well as their payroll and benefits information. As Chief Executive Officer of Premier Porta-Potties, Joseph Hiatt will supervise the management structure of the company and work closely with the Chief Operations Officer. As Chief Operations Officer, Heather Atkinson will ensure that appropriate candidates are selected for the various other positions and coordinate all company human resources. Heather will also assume the duties of Chief Financial Officer and will make financial decisions. Heather will produce quarterly reports on the financial stability of the business. The marketing and technology specialist, Lauryn Hoffman, will ensure that all software is properly working, including the website, mobile application, and internet servers. Premier Porta-Potties, as an LLC, will acquire an advisory committee. The advisory committee will consist of the business owners, a bank representative, an attorney, a city council member, and an economic developer.

Joseph Hiatt

CEO

Jon Hanzlik Bank Rep

Matthew Koch City Chairman

Sherry Ruda BCED Director

Heather Atkinson

COO, CFO

James Buckley Local Attorney



8.0 Management and Organization 9.0 Long Term Development

10

8.2 Identifying, Recruiting, and Securing Key Participants The chief operations manager will target the known individuals living in the area with proper education and qualifications. The owners will advertise for employees through social media and local newspapers. Owners will also seek employees through Indeed and Zip Recruiter. These websites are employment-related search engines for job listings. Premier Porta-Potties can view applicant cover letters and work experience résumés on these platforms.

There will be a three-step hiring process for new employees at Premier Porta-Potties. First, applications will be reviewed and the most qualified of the applicants will be offered an interview at Premier Porta-Potties. Second, references will be contacted and background checks will be completed. The owners will then select the applicant that is the most qualified for the position and would be the best fit for Premier Porta-Potties. Once these employees are secured at Premier Porta-Potties, the next goal is to retain these employees. To retain these employees, the business will provide the employees with competitive pay. Finally, the owners desire to recognize employees for their extensive efforts by providing them with rewards and incentive plans.

8.3 Compensation and Incentive Plans To secure valuable employees, Premier Porta-Potties will offer competitive compensation plans and incentives. Premier Porta-Potties strives to keep employees happy and engaged in their work. Premier Porta-Potties will offer a benefits package for all employees. The package will include 80 hours of sick pay, 80 hours of vacation pay, 10 hours of paid bereavement, and health insurance plans. To incentivize employees to work at Premier Porta-Potties on a long-term basis, employees will be rewarded with bonuses and gradual salary increases the longer they have been working for the business. Any employee who is injured while working will receive worker’s compensation. These benefits will enable employees to have income while recovering, should there be a work-related injury.

An additional benefit for the employees of Premier Porta-Potties is that employees will receive eight hours of pay on the following holidays: New Year’s Day, Independence Day, Thanksgiving Day, and Christmas Day. Employees may be asked to work on these holidays if necessary, and will be paid 150% of their salary on those specific holidays. Before the winter holidays, Premier Porta-Potties gives an annual bonus of $150. The business also holds a holiday celebration for employees and their families in December. All expenses for this celebration are paid by the owners.

9.1 Future Goals 3 Year Goals The first three years of business development are when the company is most vulnerable. To achieve a customer base that will last well into the long term:

It is extremely important for the owners to preserve the beautiful environment. Without proper waste management, contamination of soil, water, and our atmosphere would be inevitable. Using our portable toilet services is a great way to play your part by choosing an eco-friendly waste management company. All the chemicals used will be environmentally friendly. Employees will be sure to implement proper waste disposal throughout the first three years of operation and beyond.

Premier Porta-Potties should look to break even by the second year of operation, as outlined in the financial analysis in section 10.2 of this business plan.

The company should continually provide excellent customer service to all customers. Premier Porta-Potties should establish relationships with local businesses and officials. The owners should seek to make all payments due on the initial loan for $191,000.

5+ Year Goals Once Premier Porta-Potties is established in its first five years, the focus of the company is not only to remain a business that provides portable toilet services, but also to expand and become a leader in the communities outside of Boyd County. Thus, Premier Porta-Potties plans to do the following after five years of operation:

Premier Porta-Potties will work to increase the initial customer base of 80 customers to 250 customers. With the increase from the initial customer base of 80 to 250 customers, Premier Porta-Potties will seek to hire

an additional service technician to meet demands. The company will strive to become a leader in the semi-local portable toilet industry by reassessing the target

market analysis and identifying potential expansion locations. Staff will ensure that the current customer base is maintained, as the initial Boyd County area comes first and

foremost in the priorities of the business. After repaying the initial loan from Butte State Bank after ten years of operation, Premier Porta-Potties hopes

to purchase the building that the business is renting.



9.0 Long Term Development 10.0 Financial Plan

11

Loan Summary Loan Amount $191,000.00

Monthly Payment $2,144.55

Interest Rate 6.25%

Term 120 months

Total Payments $257,345.97

Total Interest Paid $66,345.97

9.2 Risks and Potential Adverse Results Business Risks Understanding the risks present in the business industry is essential for Premier Porta-Potties to overcome any obstacles and change the company’s reputational, financial, and marketing success. Premier Porta-Potties must ensure that they stay up-to-date with technology. Remaining modernized while also remaining simple and accessible is a balance Premier Porta-Potties will have to find and maintain. Additionally, the risk of employee misconduct is present. The business will face the risk of employees stealing equipment, supplies, and other items. Employees could make errors, such as delivery to the incorrect location or misconstruing instructions on orders.

As a business, there are numerous hidden risks that are taken. Currently, the COVID-19 pandemic has surfaced, which serves as a prime example of an underlying risk. The COVID-19 outbreak and similar events can create a large decrease in demand, changing production plans, workforce plans, and operations. While many of these risks are unpredictable, Premier Porta-Potties can prepare in some capacities. The owners will develop alternative plans for employees to transition to remote work, implement sanitation procedures, and prepare an emergency protocol. Product Risks Another risk associated with operating a portable toilet business is the risk of products becoming damaged or weathered. In addition, because Premier Porta-Potties will purchase equipment from third-party manufacturers and suppliers, processes and maintenance will not be monitored directly by the owners. Therefore, there must be a strong channel of trust between Premier Porta-Potties and all suppliers. Financial Risks Maintaining customers and revenue is essential to avoid all financial risk. Premier Porta-Potties must also continue to make payments on the business loan before purchasing the building. The plan for purchasing the building and eventually expanding relies on the ability to pay off the business loan quickly. If it takes longer than expected, the profit margin will not increase until later in the company’s life cycle.

9.3 Long Term Goal Strategy Through the company’s development and excellent customer service, the business will achieve a customer base lasting well into the long term. To continue becoming a leader in the communities outside Boyd County, Premier Porta-Potties will increase customer base and seek additional employment. The target market will be reassessed in order to become a leader in the semi-local portable toilet industry. With Boyd County being a top priority in business, the current customer base will be maintained. After the loan is paid off by the tenth year, the purchase of the currently rented building will increase expansion beyond the target market radius.

10.1 Accounting System Premier Porta-Potties will use the QuickBooks Desktop Premier 2019 computer application to keep accurate records of the business’s transactions. This software is popular with both small businesses and large companies. The software is very versatile and will allow Premier Porta-Potties to track inventory and profitability, prioritize orders, manage inventory, keep track of the balance, customize billing rates, compute profit and loss reports, establish sales results, and organize inventory costs.

10.2 Financial Projections The financial projections to follow are based on the current inventory costs and revenue projections. It also assumes that taxes, insurance, and the loan rates will remain consistent. If any changes are made, the financial projections will be changed accordingly and the company’s financial standings will be re-evaluated.

10.3 Loan Amortization The loan summary includes the loan amount, the monthly payment, the interest rate, the term of payments, as well as the total payments and total interest paid. The total loan amount is $191,000. The monthly payments will be $2,144.55, which must be payed for 120 months. The interest rate on the loan from Butte State Bank is 6.25%. The total payment will be $257,345.97. The interest total will be $66,345.97.

10.4 Cash Flow Statement

The purpose of the cash flow statement, or statement of cash flows, is to identify the cash flows occurring during the same period of time as the company's income statement and between the related balance sheets. The major cash flows are presented in the classifications of operating activities, financing activities, and investing activities.



10.0 Financial Plan 12



10.0 Financial Plan 13

10.5 Monthly Income Statements

Premier Porta-Potties uses monthly income statements as a description of the entity’s profitability over a month. The monthly income statement is one of the core financial statements that shows the profits and losses over a period of time. The profits or losses are determined by taking all revenues and subtracting all expenses from both operating and non-operating activities. The income statement is one of three statements used in Premier Porta-Potties financial modeling and accounting.

10.6 Annual Income Statement

Premier Porta-Potties uses an annual income statement as a description of the entity’s profitability over a one year period of time. The annual income statement is another core financial statement that shows the profits and losses over a one year period of time, just as the monthly income statement. The profits or losses are determined by taking all revenues and subtracting all expenses from both operating and non-operating activities. The annual income statement is the third statement used in Premier Porta-Potties financial modeling and accounting.



10.0 Financial Plan 11.0 Appendix

14

11.1 Works Cited

“FTC Approves Updates to Energy Labeling Rule.” Federal Trade Commission, 8 Feb. 2018, www.ftc.gov/news-

events/press-releases/2018/02/ftc-approves-updates-energy-labeling-rule.

“Industry Market Research, Reports, and Statistics.” IBIS World, www.ibisworld.com/united-states/market-

research-reports/portable-toilet-rental-septic-tank-cleaning-industry/.

“Is Boyd County the Best Nebraska County for Your Business?” Nebraska Outline,

www.nebraska-demographics.com/boyd-county-demographics.

“Limited Liability Company (LLC).” Internal Revenue Service, www.irs.gov/businesses/small-businesses-self-

employed/limited-liability-company-llc.

“Porta Potty Rental - Cost, Complete Guide, Prices.” Portapotty, www.portapotty.net/rental/.

“The History and Innovations in the Porta Potty Industry: On Site Co.” On Site, 17 Apr. 2019, onsiteco.com/the

-history-and-future-of-porta-potties/.

“Warranties, Compliances; MSD’s.” Warranties, Compliances; MSDS | Satellite Industries,

www.satelliteindustries.com/resources/certificates-compliance-msds.php.

“What Is QuickBooks?” Quickbooks, quickbooks.intuit.com/how-it-works/.

York, Erica. “What Is a Pass-Through Business &; How Is It Taxed?” Tax Foundation, 7 May 2020,

taxfoundation.org/pass-through-businesses/.



11.0 Appendix 15

11.2 Supporting Documentation

Below is the completed LLC Agreement. Below is a blank job application. Below is the Employee Handbook.

Below is a print advertisement.

Below is the portable toilet quantity chart.

Employee Extension No.

FRONT DESK Ext. 1

Hiatt, Joseph Ext. 2

Atkinson, Heather Ext. 3

Maguire, Elise Ext. 4

Hoffman, Lauryn Ext. 5

SHOP MAIN Ext. 6

SHOP OFFICE Ext. 7

BREAK ROOM Ext. 10

Below is a table listing phone extension numbers.

Below are the business cards for the Premier Porta-Potties owners.

Below is the Spencer Chamber of Commerce certificate.

Below is a sample gift certificate.

Certifies that

Premier Porta-Potties

Was honored with a membership on

January 20, 2021

Premier Porta-Potties Quantity Calculator