Cleaning company business plan

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1. PROJECT SUMMARY

The purpose of the project is to organize an enterprise for the production of seals and stamps in the city of Stavropol. Despite the decline in business activity in the country associated with the economic crisis, the demand for the production of such products remains – both due to the renewal of failing seals and stamps, and due to the emergence of new business entities. The competitiveness of the project is based on the production (along with the classic ones) of ink-filled stamps, a new product for the market. A distinctive feature of this product is the absence of an ink pad in the seal, which allows you to get a seal and put an impression without thinking about filling it with ink. This facilitates and speeds up the process of signing papers.

Investment costs are aimed at the acquisition of fixed assets and the formation of a working capital fund, which covers the losses of the first periods of the project, until it reaches payback. The main performance indicators of the project are given in Table. one.

Table 1. Project performance indicators

Payback period (PP), months6
Discounted payback period (DPP), months6
Net present value (NPV), rub.2 441 102
Return on investment ratio (ARR), %17.45%
Internal rate of return (IRR), %18.09%
Yield Index (PI)1.06

2. COMPANY AND INDUSTRY DESCRIPTION

Since the main share in the structure of business in Russia is made up of small and medium-sized enterprises, they are considered as the main target audience of the project.

The Russian economy has been in a state of steady decline in all indicators since 2014, when sanctions were imposed by a number of Western countries. Despite the development of government programs to support small and medium-sized businesses, the situation continues to deteriorate steadily. Government support programs include:

  1. creation of a single institution for the development and support of small and medium-sized businesses
  2. introduction of a tax patent for individuals
  3. creation of a register for state support of business
  4. reduction of approvals for projects of the construction industry and an increase in tax incentives
  5. softening the criteria for initiating criminal cases on economic crimes
  6. simplification of office work and the introduction of mobile accounting, an increase in the maximum loan amount
  7. reduction in the number of payments for business
  8. increase in the number of people employed in the small business sector
  9. stop unreasonable business inspections
  10. admission of small and medium-sized businesses to public procurement
  11. curbing the growth of property tax, financing business development in the regions through the receipt of patent tax in the budgets, removing bureaucratic barriers in the regions

The state of small and medium-sized businesses in Russia can be judged by the indicators of the composite RSBI index (Opora index), which reflects the confidence of SME representatives. In the third quarter of 2016, the index showed growth for the third reporting period in a row, which is a very positive indicator. However, so far we are only talking about slowing down the decline in indicators, and not about their growth. The growth of the index was 0.8 points per quarter, the final value was 44.9 points. Achievement of 50.0 points means a stop in the decline in business activity and the beginning of its growth. The components responsible for sales and investments showed the greatest increase. That is, enterprises began to sell more and invest in business development. The increase in the readiness for investment component amounted to 2.5 points; 15% of surveyed enterprises declared their readiness to invest in development (against 11% in the previous period). The sales component rose by 1.5 points. The value of the component related to the availability of financing decreased (by 1.9 points), which is associated with the continued growth in the cost of credit funds. There is a trend towards the expansion of the staff, despite the fact that in the previous quarter the trend towards its reduction dominated.

In terms of industry segments, manufacturing is the leader, but the services sector demonstrates the best dynamics. In terms of business size, growth was shown by medium-sized businesses, while small businesses showed a decrease.

As for the economic indicators of the Stavropol Territory, according to the Ministry of Economic Development of the Region, during the year all the studied indicators increased (Fig. 1, 2, 3), which somewhat contradicts the data of the regional branch of Rosstat (Fig. 4).

According to the Federal State Statistics Service of the Stavropol Territory, the total balance of economic entities in January-October 2016 was positive and amounted to 45,338 million rubles, the number of profitable enterprises amounted to 77.5% of the total. In total, in the region today there are 57,321 legal entities and 87,582 business entities without forming a legal entity, of which directly in the city of Stavropol, respectively, 19,470 and 16,787 units.

Stavropol is the administrative center of the Stavropol Territory and the North Caucasian Federal District, a major industrial, economic and cultural center of the South of Russia. According to the results of the All-Russian competition for the title of “The most comfortable urban (rural) settlement in Russia”, he took first place in his category in 2013, 2015 and 2016. The population of the city is 430 thousand people.

All the above data testifies to the prospects of the project, within the framework of which a new enterprise for the production of seals and stamps is being created.

3. DESCRIPTION OF GOODS AND SERVICES

The company produces seals and stamps by order of clients – legal entities, individual entrepreneurs, as well as government organizations. Prices for the project’s products are at the level of the average market, the main emphasis in the competition is on the production of new ink-filled seals for the regional market. In addition, the company also manufactures high quality classic stamp products.

Ink-filled stamps do not have an ink pad, which facilitates the process of imprinting – you only need to remove the cover and stamp, without thinking about the fact that it must first be filled with ink. Such seals are made from microporous rubber on specialized equipment.

In addition, the project produces stamps with multiple levels of protection using a high-quality laser engraver. °C

Table 2. Project range

PRODUCT / SERVICECOSTS PER UNIT, rub.TRADING MARGIN, %UNIT COST, rub.
oneInk-filled RTV print270235%905
2Ink-filled RGM print730180%2044
3Rubber seal, standard equipment951000%1045
4Rubber seal, automatic tooling252800%2268
5Stamp, automatic tooling144220%461
6Printing in accordance with GOST R 51511-2001, stamp, standard equipment3201000%3 520

4. SALES AND MARKETING

The products are manufactured according to the customer’s order at the project’s production facilities. Implementation is carried out in the office premises of the project. Target audience – business entities (legal entities and individual entrepreneurs), as well as government agencies and institutions. The number of business entities in Stavropol, as well as the growth dynamics of their number, allows us to conclude that the market for stamp products in the city is not sufficiently saturated.

To date, there are about thirty enterprises producing stamp products in the city. All of them work in the same price range, the price spread is no more than 10%. The main instruments of competition are the quality of products and the speed of order fulfillment. Only eleven manufacturers can provide quality comparable to the project’s products. In terms of efficiency of work, the project is in the top ten.

The competitiveness of the project is based on the use of a new product – ink-filled seals, with which no one in the city currently works, as well as a good territorial location, in close proximity to the Federal Tax Service of the Oktyabrsky district. Thus, a constant high traffic of potential customers is ensured. In the premises of the Federal Tax Service, in agreement with the management of the department, an advertisement for the project with a description of the services and the address is placed.

Demand for project goods does not have seasonality. The planned sales volumes are supposed to be reached from the fifth month of the project implementation. Return on payback – from the second month.

Table 3. Planned sales volumes

PRODUCT / SERVICEAVERAGE PLANNED SALES VOLUME, units/monthPRICE PER UNIT, rub.REVENUE, rub.VARIABLE COSTS, rub.
oneInk-filled RTV print8090572 36021 600
2Ink-filled RGM print602044122 64043 800
3Rubber seal, standard equipment90104594 0508 550
4Rubber seal, automatic tooling1402268317 52035 280
5Stamp, automatic tooling11046150 68815 840
6Printing in accordance with GOST R 51511-2001, stamp, standard equipment203 52070 4006400
Total:727 658131 470

5. PRODUCTION PLAN

The enterprise is located in a rented premises with an area of ​​25 m 2 in the immediate vicinity of the branch of the Federal Tax Service of the Oktyabrsky district of Stavropol. The room has all communications, meets the requirements of the supervisory authorities of the Russian Federation.

The equipment is purchased from a wholesale supplier in Stavropol. The list of basic equipment and prices are given in Table. 4. 

No.Nameprice, rub.
oneexposure camera10 200
2Flash-system (for ink-filled stamps)80 000
3laser engraver25 536
4ultrasonic cleaner4600
Total:120 336

The equipment allows to provide high quality of production and efficiency of production. The necessary specialized software is also purchased.

Consumables are purchased from the equipment supplier. In the course of a preliminary market analysis and comparison of samples of finished products from various consumables, the most optimal consumables were selected. The production cycle takes an average of 10 to 20 minutes. Given the flow of orders, the finished product is handed over to the client the next day after placing the order. In case of high urgency, the product can be manufactured on the same day the order is placed, however, in this case, the premium for urgency is 20% of the order value.

6. ORGANIZATIONAL PLAN

IP was chosen as the organizational and legal form. The form of taxation is the simplified tax system, the object of taxation is “income”, the rate is 6%. The organizational structure of the enterprise is simple, self-employment of the project initiator is assumed. The staff members of the project are the administrator, who receives and issues orders, and the equipment operator. Accounting and office cleaning are outsourced (Table 5).

Table 5. Staffing and payroll

PositionSalary, rub.Quantity, pers.FOT, rub.
Administrative
oneAccountant3000one3000
2Administrator20 000one20 000
Industrial
3Specialist / equipment operator27 000one27 000
Auxiliary
4Cleaning woman8000one8000
Total:RUB 58,000.00
Social Security contributions:RUB 17,400.00
Total with deductions:RUB 75,400.00

All administrative functions are performed by the project initiator. To do this, he has all the necessary knowledge in the field of entrepreneurship, tax legislation, civil and administrative law. Also, the initiator of the project has many years of entrepreneurial experience.

 7. FINANCIAL PLAN

The financial plan is drawn up for a five-year period and takes into account all the income and expenses of the project. Income is understood as proceeds from operating activities, income from investment activities or from the sale of assets is not provided for by the project. Annual revenue after the project reaches the planned sales volumes is 8.7 million rubles, net profit after taxes is 4.7 million rubles.

Investment costs for the project – 2,305,336 rubles. Of these, the initiator’s own funds – 1.7 million rubles. The lack of funds is planned to be covered by attracting a bank loan for a period of 36 months at a rate of 18% per annum.

Table 6. Investment costs

 NAMEAMOUNT, rub.
Equipment
oneEquipment set120 336
2Office equipment65 000
Intangible assets
3Software purchase70 000
working capital
4working capital1,050,000
5Purchase of raw materials1,000,000
Total:2 305 336 ₽
Own funds:RUB 1,700,000.00
Required borrowings:605 336 ₽
Bid:18.00%
Term, months:36

Variable costs include tooling and consumables (Table 2). Fixed costs, among other expenses, include depreciation. The amount of depreciation is calculated using the straight-line method based on the useful life of fixed assets of five years.

Table 7. Fixed costs

NAMEAMOUNT IN MONTH, rub .
oneRent25 000
2Advertising15,000
3Communal payments3 500
4Telephony and Internet1500
5Depreciation4 255
6Selling expenses5000
7Management expenses3000
Total:57 255 ₽

A detailed financial plan is given in App. one.

8. PERFORMANCE EVALUATION

Evaluation of the effectiveness of the project is carried out on the basis of the analysis of the financial plan, cash flow, as well as simple and integral performance indicators (Table 1). The discounted cash flow method is used to account for the time value of money. The discount rate is 8%.

Simple (PP) and discounted (DPP) payback period of investments is 6 months. Net present value (NPV) – 2,441,102 rubles. Internal rate of return (IRR) – 18%. Profitability index (PI) – 1.06. All these indicators testify to the effectiveness of the project and correspond to its format.

9. WARRANTIES AND RISKS

To assess all possible risks associated with the implementation of the project, an assessment of all external and internal factors of influence is carried out. Internal factors include low product quality, which will lead to failure to fulfill sales plans. Such a scenario seems unlikely, since high-quality equipment and consumables are used, the technology is practically independent of the human factor.

External factors, first of all, include the activities of competitors who can bring a similar product to the market and place an office close to the project office. This scenario seems highly probable. In this case, it is necessary to provide for an increase in the advertising budget, as well as the creation of administrative levers in the form of facilitating customer traffic on the part of employees of the Federal Tax Service.

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