Business Plan

Financial Business Plan


Below is an estimate of the business overhead or ” Break Even” point for a 3 person operation.
Actual costs may vary depending upon the location of your in-plant Oriental rug cleaning business.

 

Serial#

Monthly Bills

Based Upon

Amount

1

Building Rent

3000 sf @ $6.00 per sf

$  1,500.00

2

Telephone, Fax, etc.

2 phone lines

$     200.00

3

Electricity

Building Utilities

$     200.00

4

Natural Gas

Building Utilities

$     100.00

5

Water

Building Utilities

$     125.00

6

Insurance Policies

Building, 1 vehicle, Liabilities

$     420.00

7

Vehicle

Physical maintenance or a Lease

$     300.00

8

Vehicle

Fuel

$     300.00

9

Cleaning Services

Chemicals, Supplies & Materials

$     200.00

10

Office Services

Office Supplies & Materials

$     200.00

11

Building Services

Physical maintenance & Protection

$     200.00

12

Wages – Office person/webmaster

$12.00 per hour @ 40 hours per week

$  2,080.00

13

Wages – Shop person

$12.00 per hour @ 40 hours per week

$  2,080.00

14

Marketing

Yellow Pages, Advertising, Postage

$     800.00

15

Owner Draw

$500.00 per week

$  2,000.00

Monthly Break Even

$ 10,705.00

Annual Cost for Cleaning

$128,460.00

COST VS GAINS/LOSSES

Office Shop Personnel Labor Related Cost Washes per Week Square Feet per Cleaning Based on $5.00 per Sq. Ft. GrossYearlyRevenue Increase Overhead Percentage Base Yearly Cost for Cleaning Net Income Profit % Profit Margin
3 $ 73,920.00 1 500 sf x $5.00 $130,000.00 0% $128,460.00 $  1,540.00  1.18%
3 $ 73,920.00 1 1000 sf x $5.00 $260,000.00 10% above
500 sf
$141,306.00 $118,694.00 45.60%
4 $ 98,880.00 2 1500 sf x $5.00 $390,000.00 10% above 1000 sf $180,396.60 $209,603.40 53.70%
4 $ 98,880.00 3 2000 sf x $5.00 $520,000.00 10% above 1500 sf $198,436.26 $321,563.74 61.40%
4 $ 98,880.00 3 2500 sf x $5.00 $650,000.00 10% above 2000 sf $218,279.89 $431.720.11 66.40%
5 $123,840.00 4 3000 sf x $5.00 $780,000.00 10% above 2500 sf $265,067.87 $514,932.13 66.00%
6 $148,800.00 5 3500 sf x $5.00 $910,000.00 10% above 3000 sf $316,534.66 $593,465.34 65.20%

Oriental Rug Cleaning