servpro business plan

SERVPRO BUSINESS PLAN PREPARED FOR WELLS FARGO BANK COMMERCIAL LENDING

VICTORIA SITTERLEY JESSA VILLASENOR

CHARISSA O’CONNOR

KASSANDRA KAY

UNIVERSITY OF ALASKA ANCHORAGE

In Fulfillment of English A212 Technical Writing Proposal Requirements

APRIL 9, 2015

Prayoga, Guh. (2015). Servpro logo. [Online image]. Retrieved on March 26, 2015 from

http://teguh.website/servpro/servpro-logo.html

Servpro Business Plan i

OWNERS

Servpro Industries, Inc. Corporate is owned by Ted and Doris Isaacson.

The new South Anchorage franchise will be owned and operated by Victoria Sitterley, Jessa Villasenor, Charissa O’Connor, and Kassandra Kay.

Servpro Industries, Inc.

801 Industrial Boulevard

Gallatin, TN 37006

(615) 451-0291

[email protected]

Servpro Business Plan ii

Contents

Executive Summary .........................................................................................................................v

General Company Description........................................................................................................ 1

Business Type ............................................................................................................................. 1

Mission Statement ....................................................................................................................... 1

Company Goals ........................................................................................................................... 1

Marketing .................................................................................................................................... 1

Industry........................................................................................................................................ 1

Company Strengths ..................................................................................................................... 2

Legal Form of Ownership ........................................................................................................... 2

Products and Services ..................................................................................................................... 2

Products or Services .................................................................................................................... 2

Marketing Plan ................................................................................................................................ 3

Economics ................................................................................................................................... 3

Market Size .............................................................................................................................. 3

Market Demand ....................................................................................................................... 4

Product ........................................................................................................................................ 6

Product Features ...................................................................................................................... 6

Product Benefits....................................................................................................................... 6

Customers .................................................................................................................................... 6

Targeted Customers ................................................................................................................. 6

Competition ................................................................................................................................. 6

Major Competitors ................................................................................................................... 6

Niche ........................................................................................................................................... 7

Strategy........................................................................................................................................ 7

Promotion through Advertising ............................................................................................... 7

Promotion through Other Methods .......................................................................................... 8

Promotion through Graphic image Support............................................................................. 8

Pricing ...................................................................................................................................... 8

Distribution Channels .............................................................................................................. 8

Sales Forecast .............................................................................................................................. 9

Operational Plan............................................................................................................................ 12

Servpro Business Plan iii

Production ................................................................................................................................. 12

Methods of Production .......................................................................................................... 12

Quality Control Measurements .............................................................................................. 12

Location..................................................................................................................................... 12

Proposed Location ................................................................................................................. 12

Legal Environment .................................................................................................................... 13

Personnel ................................................................................................................................... 13

Inventory ................................................................................................................................... 14

Suppliers .................................................................................................................................... 15

Startup Expenses ........................................................................................................................... 17

Capital Needed .............................................................................................................................. 17

Appendices.................................................................................................................................... 18

Appendix A: .............................................................................................................................. 18

Figure 1: Fire specific advertisement .................................................................................... 18

Figure 2: Water specific advertisement ................................................................................. 19

Appendix B: .............................................................................................................................. 20

Figure 1: Pre-Task Planning Worksheet 1 ............................................................................. 20

Figure 2: Pre-Task Planning Worksheet 2 ............................................................................. 21

Figure 3: Pre-Construction Checklist .................................................................................... 22

Appendix C: .............................................................................................................................. 23

Figure 1: Fall Protection Plan: Part 1 .................................................................................... 23



Appendix D: .............................................................................................................................. 26

Figure 1: Purchase Order Labor Tracking Form ................................................................... 26

Figure 2: Purchase Order Tracking Sheet.............................................................................. 27

Appendix E:............................................................................................................................... 28

Figure 1: Daily Labor Tracking Form ................................................................................... 28

Figure 2: Overview of equipment and products usage .......................................................... 29

Appendix F: ............................................................................................................................... 30

Figure 1: Sub-Contractor Tracking Sheet .............................................................................. 30

Figure 2: Budget Amendment Notification ........................................................................... 31

Figure 3: Certificate of Completion....................................................................................... 32

Servpro Business Plan iv

Figure 4: Punch List............................................................................................................... 33

Appendix G: .............................................................................................................................. 34

Figure 1: Costs to costumer ................................................................................................... 34

References ..................................................................................................................................... 35

Servpro Business Plan v

The next section was written by Victoria Sitterley (1)

Executive Summary

Servpro Industries, Inc. is dedicated to providing top of the line service in all forms of property

disaster restoration. Whether residential or commercial, Servpro will respond faster to any disaster. Servpro of South Anchorage will be owned by Victoria Sitterley, Kassandra Kay, Jessa Villasenor, and Charissa O’Connor. Victoria Sitterley will be acting as General Manager, Jessa

and Charissa as Project Managers, and Kassandra as Head Accountant. Our well-trained employees will ensure all work is performed above and beyond industry standards and always

within scope. Although Servpro of South Anchorage is starting small, once we establish ourselves as a formidable force in the Anchorage market we are assured to grow.

To accomplish our goals, we are asking for $398,100 which is effectively 75% of our total first year starting costs. This money will ensure we have the warehouse space, equipment, and

Servpro Business Plan vi

personnel required to compete in this industry and perform our jobs to high standard. The following table shows an approximation of how this loan money will be spent.

Where is Our Loan Going?

Hard costs Amount Percent of Loan

Equipment & Supplies $ 72,500 18.21%

Vehicles $ 45,000 11.30%

Rent (+500 est. damages) $ 90,500 22.73%

Initial Franchise Fee $ 44,000 11.05%

Legal + Insurance $ 6,300 1.58%

Water & Fire Techs $ 70,000 17.58%

Subtotal $ 328,300 82.47%

Soft Costs

Day Labor (est. safety net) $ 30,400 7.64%

Subcontractors (est. safety net) $ 30,400 7.64%

Software $ 9,000 2.26%

Total $ 398,100 100%

The subtotal for the hard costs represents definite fixed costs, essentially assured sunk costs, for the first year of operations. The line items for soft costs are estimates and subject to some

change. These totals do not account for some of the most flexible costs, which can be covered by our personal capital.

Servpro Business Plan 1

General Company Description

“Founded in 1967, the Servpro Industries, Inc. Franchise System is a national leader of fire, water, mold, and other specialty cleanup and restoration services” (Servpro Intellectual

Properties, Inc., 2015, Over 1,650 Franchises in the U.S. and Canada section, para 1).

“To develop a team of quality people who focus on excellent service, fairness and mutual

respect” (Servpro Intellectual Properties, Inc., 2015, Mission section, para 1).

“As a franchise, we have four long term goals. First, is to reach $5 Billion in gross franchise volume by 2020. Second is to attain 2000 franchises by 2016. Thirdly, to achieve a 15% annual

growth rate. Fourth is to reach a 20% pre-tax profit margin” (Servpro Intellectual Properties, Inc., 2015, Core values section, para 4).

Servpro’s professional services network of more than 1,650 Franchises has responded to property damage emergencies ranging from multi-million dollar disasters such as the 9/11

attacks on the Pentagon to those suffered by individual businesses and homes. Providing nationwide coverage, Servpro Franchise Professionals have established relationships with major insurance companies and commercial clients, as well as individual homeowners (Servpro

Intellectual Properties, Inc. (2015). Over 1,650 franchises in the U.S. and Canada section, para 1).

Distinct from the construction and renovation industries, disaster property restoration is a niche industry requiring a high level of expertise, energy, and efficiency. While the industry growth and demand often depend on very subjective factors, there are two major trends in this industry

that have taken a strong hold within the last few years. The first trend is an increase in the use of third parties to help mitigate the bidding, pricing, and working processes between insurance

companies and contractors. In terms of smaller losses, this trend manifests itself in the increased use of TPAs such as Contractor Connection, XactAnalysis, and AlacNet. For larger losses, insurance companies are hiring out aspects of claim management and consultation to multiple

third parties. This increases the demand on contractors and often results in smaller line items for profit (Ted Sitterley, April 1 2015, Personal communication). However, with the training

provided by Servpro corporate and the right personnel, our new Servpro branch can stay on top of the work load and continue to make guaranteed money. The second trend is an increased in metric definition. That is, an increase in technology has allowed for greater research and analysis

of disaster mitigation processes in terms of how much time and equipment it should take to perform certain tasks, and thus the expectations of contractor performance have become stricter

and more specifically defined (Ted Sitterley, April 1 2015, Personal communication). While


these metrics are often unrealistic, Servpro has the technology necessary in the form of DryBook and DryBook mobile to accurately regulate, validate, and document our drying process (NFMT,

2015, Proof section, para 1). If worst comes to it, Servpro has the track record and technology to challenge these metrics and win. For example, only do we have thousands of job files we could

pull from corporate for comparative analysis, but moisture meters and IR camera analysis can reveal real-time shortcomings in drytime metrics, leaving the burden of passing the job on the industrial hygienists. If the job doesn’t meet healthy standards, then we’re still making money by

spending time and resources on the job. If a different company is hired based on promises to meet the metric, we still have an opportunity for more work down the line when the lack of

proper drying causes mold to grow. Leaning on Servpro’s nationally recognized reputation, any type of situation can be turned into an opportunity for work.

Investing in a Servpro franchise means investing in an ever-expanding network. “The Servpro National Accounts department is working to enhance the relationships with many insurance and commercial clients on the national level, building Brand equity. AT the same time, Servpro’s

award-winning National Advertising Campaign is building awareness and preference in the public eye. This top-down/bottom-up approach makes Servpro a dominant force in our industry” (Servpro Industries, Inc., 2008, National advertising & marketing section, para 1 pg16).

Additionally, Servpro understands the importance of professionalism and cost effectiveness in the midst of disaster. Operating on the principle of “Restore whenever possible, replace only

when necessary”, Servpro ensures that their standards are high and their employees well trained. As a new franchise, we would be provided with IICRC Validation and training in Applied Microbial Remediation, Applied Structural Drying, Carpet Cleaning, Fire and Smoke

Restoration, and Odor Control (Servpro Intellectual Properties, Inc., 2015, Pretesting reduces claims expense section, para 1; IICRC certifications section, para 2-8). Additionally, Servpro

Corporate provides new Franchises with additional training and employee certifications to ensure top-notch response quality (Servpro Intellectual Properties, Inc., 2015, highly trained restoration specialists section, para 10-13). Between the four of us is a year’s experience in this industry,

both in the field and in the office that will keep us grounded and help us make tough decisions and make them right.

Servpro is a corporation. Our franchise will more than likely be filed as an LLC to avoid personal liability.

Products and Services

Servpro provides property restoration on any scale, 24 hours a day. Residential or commercial,

services include carpet and upholstery cleaning, air duct cleaning, odor removal, sewage and biohazard cleanup, water damage restoration, fire damage restoration, mold remediation, and storm and major event response (Servpro Intellectual Properties, Inc., 2015, Residential cleaning


services section, para 3-6; Commercial building restoration services, para 1). Each of these services is completely comprehensive, so clients can rest easy with one singular company

handling all their accounts from initial inspections and board-ups to final repairs and cleaning. Servpro’s high standards ensure immediate emergency response and extensive testing to ensure

the client knows everything is being done to understand and limit the damage (Servpro Intellectual Properties, Inc., 2015, Emergency Response to Claims section, para 1). Additionally, Servpro’s Claims Information Center works to provide accurate, up-to-date information available

in the form of complete, web-accessible electronic job files, informative reports (job cost data), and performance comparisons to the industry standards to ensure honesty, precision, and first-

rate decision making (Servpro Intellectual Properties Inc., 2015, Why Servpro? section, para 5-6).

Marketing Plan

M A R KET S I ZE

Market size can be estimated by analyzing Anchorage census data and the annual fire in Alaska

reports from the Department of Public Safety. While the latter does not help us estimate loss volume for claims related to water, mold, storm, or other property damage, fire-related losses account for 77% of all property damage losses in the state of Alaska in 2012, 69% of which were

residential (DPS, 2013, Property damage section, para 1), and thus provides a solid basis for understanding a majority of the market size. The US Census Bureau determined there were

113,746 housing units in Anchorage in 2013, and in 2012 a count of 8,557 private nonfarm establishments and 19,347 non-employer establishments (Business quickfacts section, para 1). While not comprehensive of all damageable property, this gives us a baseline of at least 141,650

individual potential clients. Data collected from the Municipality of Anchorage fire departments reveals that this client base experienced 856 total fires in 2013, at an estimated total cost of

$17,393,451 (DPS, 2013, 2013 experience by fire department section, table 1; 2009-2013 per capita statistics section, table 1). While this estimate is rather healthy for fire-related losses, it is important to note also that fire department loss data is often low because it is a time of loss

estimate, or initial permit value assessment. Actual cost of a loss is usually higher (Ted Sitterley, April 1 2015, personal communication). Additionally, 2013 fire department data reveals that

there were 546 total calls related to hazardous conditions, which may relate to some of the other types of mitigation Servpro could respond to (DPS, 2013, 2013 experience by fire department section, table 1). Assuming Servpro’s net worth is around 980M and the industry’s is around 8-

10B nationally (Ted Sitterley, April 1 2015, Personal communication), Servpro’s national market share can be estimated to be between 9.8% - 12.25%. Considering the fire loss value of

$17,393,451 and an actual total loss value range up to 200M, best case scenario market share in dollars could range from $1,704,558 (9.8% of the fire losses) to 245M (12.25% of 200M). Some of the most significant structural damage in Anchorage for 2013 occurred in Multi-Family

Residential Dwellings, 1&2 Family Homes, and Restaurants with a total estimated cost of 7.275M in damages (DPS, 2013, Statewide fire dollar loss section, para 3). Where these are the


only losses we could respond to in Anchorage, normal-to-worst scenario market share in dollars could range from $712,950 at 9.8% to $891,187 at 12.25%.

M A R KET DE MA ND

The demand for the property restoration industry in Anchorage is dependent upon disaster, and

thus relies on the weather as much as anything (Doug Lipinski, April 1 2015, Personal communication). While no specific disaster is ever assured, the second law of thermodynamics

ensures that there will always be work to be done. There is always demand in this market, but to what degree and what disaster is often sporadic. One estimate ball-parks the loss volume for typical covered losses between Eagle River and Girdwood to run between $100 and $200 million

annually (Doug Lipinski, April 1 2015, Personal communication). One trend affecting the relationship of money to this constant demand is an increase in low severity. As people are

paying out less on each loss, profits are lower than they have been in the last 10 years or so. However, as long as we meet the standards for Program losses, we are basically always assured work and profit (Doug Lipinski, April 1 2015, Personal communication; Ted Sitterley, April 1

2015, Personal communication). A few other barriers to entering this market include the need for specialty training, equipment, storage, and estimating platforms. There is a fairly steep learning

curve to understanding restoration, managing equipment and storage, and learning and operating the programs necessary to perform effectively as a company (Ted Sitterley, April 1 2015, Personal communication). However, with the proper training provided by corporate, six-to-nine

months’ worth of initial capital, and well-structured, transparent accounting processes, we will be more than prepared to overcome this curve. These preparations will also help us counter

another barriers: average collection time on a job. This can run between 90-120 days, so ensuring we are properly capitalized is key. Additionally, there is a barrier to recognition in this market wherein it takes an average of about a year for a person coming into this industry to develop the

contacts they need to get opportunities to work (Ted Sitterley, April 1 2015, Personal communication). Utilizing Servpro’s branding, providing excellent service, and ensuring we have the proper capital to get us through year one will give us a huge leg up on our competition

as we continue to grow.


The next section was written by Jessa Villasenor (2)


P R O DUCT F E A TU RE S

Our service does not offer any sort of products, instead we offer numerous cleaning and

restoration services. We feature several cleaning services, such as: commercial Restoration, water restoration, fire restoration, mold remediation, storm and major events with a disaster

recovery team, and commercial cleaning (Servpro Intellectual Properties, Inc., 2015, Residential Restoration section, para. 1).

P R O DUCT B EN EF IT S

Our service features several cleaning services, which are also benefited with a water and fire restoration 24-Hour Emergency Service – including all holidays. Our specialists will respond

immediately, day and/or night. SERVPRO is strategically trained to be faster to any size emergency – immediate responses help to minimize the damage and the cleaning restoration costs (Servpro Intellectual Properties, Inc., 2015, About Servpro of North Anchorage section,

para. 3).

T A R GE T ED CUS TO ME RS

Age All

Gender Male and Female

Location Accessible

Income Level All

Social Class and

Occupation

All

Education All

Source: (Based on the location of our advertisements, Servpro’s targeted customers are directed towards everyone in the community. Servpro’s advertisements are done through commercials,

billboards, pamphlets – basically anywhere anyone can see.)

M A J O R CO MPE TI TO R S

FACTOR Our Business

Servpro

Competitor A

Taylored Restoration

Competitor B

Paul Davis Restoration

Products N/A N/A N/A

Price 1 1 3

Quality 1 1 3


FACTOR Our Business

Servpro

Competitor A

Taylored Restoration

Competitor B

Paul Davis Restoration

Selection 1 1 3

Service 1 2 3

Company

Reputation 1 2 3

Location 2 1 2

Appearance 1 1 3

Image 1 3

Source: Derived from BBB; Guild Quality, Yelp (2012, 2013, 2014). Retrieved from http://www.bbb.org/alaskaoregonwesternwashington/business-reviews/fire-and-water-damage-

restoration/taylored-restoration- in-anchorage-ak-10361/complaints; http://www.guildquality.com/tayloredrestoration; http://paul-davis-

restoration.pissedconsumer.com/; http://www.servpro-reviews.measuredup.com/3546; http://www.yelp.com/biz/paul-davis-restoration-and-remodeling-san-jose; http://www.yelp.com/biz/taylored-restoration-services-anchorage-2

The ratings shown on the table above are not official ratings, but are based on the customer

reviews from the sources listed above

Not only do we leave your house clean, “Like it never even happened,” but also we have served thousands of insurance policy holders and clients, which earned our business the trust of the

multiple insurance companies. The more we renovate, the less that needs to be substituted. That way, we help customers save a lot of money (Servpro Intellectual Properties, Inc., 2015,

Insurance Services section, para. 1).

P R O MOT IO N T HRO U GH A DV E RTI SI NG

As a business, we will promote our business through multiple forms of advertising. We can sponsor our company name through different events, billboards, pamphlets, bus stop benches,

and other ways (Servpro Intellectual Properties Inc., 2015, Advertising and Sponsorships section, para. 1).

See Appendix A for examples of pamphlet cover pages.

http://www.bbb.org/alaskaoregonwesternwashington/business-reviews/fire-and-water-damage-restoration/taylored-restoration-in-anchorage-ak-10361/complaints

http://www.bbb.org/alaskaoregonwesternwashington/business-reviews/fire-and-water-damage-restoration/taylored-restoration-in-anchorage-ak-10361/complaints

http://www.guildquality.com/tayloredrestoration

http://paul-davis-restoration.pissedconsumer.com/

http://paul-davis-restoration.pissedconsumer.com/

http://www.servpro-reviews.measuredup.com/3546

http://www.yelp.com/biz/paul-davis-restoration-and-remodeling-san-jose

http://www.yelp.com/biz/taylored-restoration-services-anchorage-2


P R O MOT IO N T HRO U GH OT H ER MET HO DS

Other ways our business can be recognized is through social media. Servpro has a new TV

advertising campaign that promotes our strength as a leader in the commercial and residential restoration industry. Our TV advertising includes key messages like:

Faster to Any Size Disaster,

Here to Help,

“Like it never even happened” (Servpro Intellectual Properties, Inc., 2015, National Television Advertising section, para. 1).

P R O MOT IO N T HRO U GH G R APHI C I MA GE S U PPOR T

The logo’s design entails our purpose of damage restoration in bright green and orange

color.

Servpro Logo [Online Image]. (2014). Retrieved April 5, 2015 from

http://businessclarksville.com/business/servpro

P R I C IN G

Our business does not have a set price for any of our services. It depends on the customer’s claim

with their insurance company, the size and type of damage, how long the repair will take, what types of equipment we’ll use, etc… (Sarah, P.E., personal communication, April 7, 2015, North

Anchorage Servpro). As Servpro Franchise Professionals, we are qualified to keep the claim costs down while still providing the best possible services for our customers (Servpro, 2015, Claims Information at Your Fingertips section, para. 3). It is important to note, however, that we

will have set rates for our equipment on a daily basis, for our consumables on a quantity basis, and for our labor on an hourly basis. These numbers will constitute the bulk of our billings,

wherein the totals are dependent on the scope of the project. See Appendix G for an example of what these individual charges might look like as applied to labor.

D I S T RIB UT IO N CH AN NE L S

Our business may use other channels of distribution, for example the Internet, retail, catalog sales, telemarketing, or other direct marketing sales, to make sales within our franchise’s

territory (Franchise Direct, 2015, Territory section, para. 5).

http://businessclarksville.com/business/servpro


Monthly Sales Projections

Month Sales in Dollars

(Best Guess)

Sales in Dollars

(Worst Case Scenario)

January $ 59,412 - $ 142,046 $ 55,556

February $ 59,412 - $ 142,046 $ 55,556

March $ 59,412 - $ 142,046 $ 55,556

April $ 59,412 - $ 142,046 $ 55,556

May $ 59,412 - $ 142,046 $ 55,556

June $ 59,412 - $ 142,046 $ 55,556

July $ 59,412 - $ 142,046 $ 55,556

August $ 59,412 - $ 142,046 $ 55,556

September $ 59,412 - $ 142,046 $ 55,556

October $ 59,412 - $ 142,046 $ 55,556

November $ 59,412 - $ 142,046 $ 55,556

December $ 59,412 - $ 142,046 $ 55,556

Total $ 712,950 - $ 1,704,558 $ 666,667

Source(s):

Best Guess: Based on estimated total fire damage of 2013, with an estimated total $17,393,451 in total property damages and $7,275,000 in damages to specific types of

guaranteed-insured structures. Multiplied by Servpro’s low-end estimated national market share percentage of 9.8% gives the resulting range. Market estimates of total

damages for Anchorage ranges 100M-200M annually.

Worst Case Scenario: (1, 000, 000, 000/1500 = 2009 system sales/number of franchises

in 2009; Estimated monthly sales projections: 666,666/12 = single franchise estimated annual revenue/12 months)

This is table is based on the market size that was estimated by analyzing the Anchorage censes data and the annual Alaska reports from the Department of Public Safety. Though we cannot

make firm estimates of the loss volumes related to water, mold, storm, or other types of damages, fire-related losses account for 77% of all property damage losses in Alaska, 69% were residential (DPS, 2013, Property Damage section, para. 1). There were 113, 746 housing units in Anchorage

in 2013, and in 2012, there were 30,000 establishments (Business quickfacts section, para. 1). This provides us a rough estimate of at least 141,650 clients according to the US Census Bureau.

There were about 856 total fires in 2013 at an estimated cost of $17, 393, 451 (DPS, 2013, 2013 experience by fire department section, table 1; 2009-2012 per capita statistics section, table 1). 546 calls were related to damage property conditions, which may have related to Servpro (DPS,


2013, 201 experience by fire department section, table 1). Servpro’s net worth is about 980M and the industry’s 8-10B nationally (Ted Sitterley, P.E., personal communication, April 1, 2015),

their national market share in dollars could range from $1,704,558 (9.8% of the fire losses) to 245M (12.25% OF 200M). These losses our business can respond to for certain and are

guaranteed insured in Anchorage could range from $712,950 to $891,187 at 12.25%. The “Worst Case Scenario” information was based off of Servpro’s 2009 year-end system-wide revenue hitting the $1 billion mark for the first time in history, and dividing it among the 1,500 franchises

Servpro had in 2009 (Servpro, 2010, Servpro Press Release section, para. 1). Source: (Victoria Sitterley’s calculations based on research leads)


The next section was written by Charissa O’Connor (3)


Operational Plan

M E T HO DS O F P RO DU CT IO N

The type of production we will be using is Job Production. This means that a business produces

their products or services, which are customized according to their client’s needs, one at a time by its experts (Business Dictionary, 2015, Job Production section). Our cleaning and restoration

services require a variety of highly skilled professionals, who will provide certain services to meet our client’s needs. If our client needs professional services, for their home or business, such as fire damage, water damage, hazardous waste spills, or damage from a disaster we will have a

variety of experts who will provide these services to restore, repair, and clean up any of these damages or spills (Servpro, 2015, Servpro of north anchorage).

Q U A L I TY CO NT RO L ME AS URE ME NT S

Our services will provide quality assurance by having fully trained, and where required by law, technicians/licensed professionals over seeing all work. Employee candidates will be required to

have certain skills and experience, excellent customer service, and a criminal background check. After being hired they will be trained and certified at the Institute of Inspection for Cleaning and

Restoration. The employees will be certified in carpet cleaning, fire and water damage and restoration, lead based paint activities, and safety (Servpro, 2015, Apply online section).

We will provide quick service, by first surveying and pretesting the damaged areas and write a detailed scope and inventory estimate. Our clients will sign a form authorizing us to do the

restoration process. For our clients’ payment options they will be responsible for payment with or without insurance. We will have top of the line equipment and products to provide quality services (Servpro, 2015, Servpro of north anchorage). See the Appendices for examples.

P R O PO SE D L O CAT IO N

We will operate our business in a vacant building which we are going to be leasing. The address

is 1920 W. Dimond Blvd., Anchorage, AK 99515 (Loopnet, 2015, Industrial for Lease, Anchorage, AK section). It is on the south side of Anchorage. We chose this location because

there is a current Servpro Franchisee business, which is located to the North of Anchorage (Servpro, 2015, Servpro of north anchorage). This way we will be able to provide services to the remaining Anchorage area and avoid competing business with them. The type of building is a

warehouse with a size of 6,500 square feet, and on a 425,038 square feet lot. The lot has enough space to park our vehicles. The warehouse has enough space for our equipment and supplies, and

enough temporary storage for client’s items. We estimated this will be enough space, because we compared it to a 10,000 square feet Servpro building located in New York City (Greater Syracuse, 2013, GSBDC finances new Servpro facility section, para. 1). Our property is located

in a level B-3 General Business District zone meaning the area is used for general business


purposes (MOA, 2015, Zoning District section). Below is a map showing a part of Anchorage where our building will be located.

Source from [Untitled illustration of a map]. Retrieved April 7, 2015 from https://www.google.com/maps/

We will need to obtain an Alaska Business License and subcontract to various other related businesses (State of Alaska Department of Commerce, Community, and Economic

Development, 2015, Divisions of Corporations, Business, and Professional Licensing section).

The organizational chart that follows identifies the personnel needed.

https://www.google.com/maps/


As indicated in the chart we will have 6 full-time employees to begin with (GM, PM and Accountant positions to be filled by we four) and an undetermined amount of on call laborers. The chart shows the upper management on top (B. Wondzell, personal communication, April 8,

2015).

The type of inventory we will keep are: cleaning tools, construction tools, trash bags, paper

towels, various surface cleaners, disinfection products, deodorizers, special solutions, sealants, spackle and personal protective equipment (Suttle, R., 2015, What is needed to start a cleaning

business section, para. 3), (Diy network, 2014, How to repair a water-damaged wall section, para. 1-10), (The Family Handyman Magazine, 2015, How to remove mold section, para. 8), (How To Clean Stuff, 2015, How to clean smoke damage section, para. 3), (Guillot, C., 2011,

Sewage cleanup, Start cleanup immediately section, para. 1), (West Bend, n.d., Proper blood cleanup, Blood borne pathogen cleanup supplies checklist section, para. 1), (Ehow, 2015, How to

remove spray paint from walls section, para. 4). Additionally, types of equipment we carry include Carpet shampooers, vacuums, wet/dry vacuums, submersible gas water pumps, fans,


industrial grade dehumidifiers, air movers, ozone generators and neutralizers, air scrubbers, moisture detectors, hydrometers, truck mounted and portable extraction units.

A full list of the inventory we keep is gone over in detail in Figure 2 of Appendix E.

The table that follows identifies who will be our suppliers.

Table of Suppliers and addresses

WAXIE Sanitary Supply 4005 Spenard Road, Anchorage, AK 99517

Home Depot 1715 Abbott Road, Anchorage, AK 99507

Spenard Builders Supply 4412 Lois Drive, Anchorage, AK 99517

Alaska Industrial Hardware, Inc. 2192 Viking Drive, Anchorage, AK 99501

Source from http://store.aihalaska.com/, http://www.sbsalaska.com/, http://m.homedepot.com/, http://info.waxie.com/

As indicated in the table we will have 6 suppliers from which we will purchase our cleaning and construction supplies from. Included in the table are their addresses (Alaska Industrial Hardware,

2015), (Spenard Builders Supply, 2015), (Home Depot, 2015), (WAXIE Sanitary Supply, 2015)

http://m.homedepot.com/


The next section was written by Kassandra Kay (4)


Startup Expenses

Expenses Start up only Monthly Yearly

Equipment X 64,000

Supplies 8,500Vehicles X 45,000

Rent (Including Utilites) 7,500 90,000

Insurance 3,750

Advertising $250 3,000

Licences and permits X 2,550

General manager's Salary 7,333 88,000

Project Manager's salary 5,667 68,000

Fire Technician (Leaders) 6,933 35,000

Water Technician (Leaders) X 6933 35,000

Accounting Manager 3,667 44,000

Intial Franchise Fee 44,000

Total 530,800

Total Minus GM/PM Salaries 330,800

Total Minus All Salaries 260,800

The type of equipment needed in our start-up costs is listed in Appendix E: Figure 2. Estimates for equipment costs, supplies, vehicles, insurance, advertising, and licenses and permits are found from Franchise Direct (2013-2015). Servpro Franchise Costs and Fees.

Salary estimates come from Career Bliss (2015). Servpro Employee Salaries. We calculated a total also without the four owners salaries, the Loan would be going towards

everything else first and those salaries could be put on hold if need be because they are not as important.

Capital Needed

Loan Amount Repayment Terms (number of years to repay)Interest Rate Personal Capital Needed

$398,100 10 years 5.00% $132,700 We calculated about 75 percent of our overall total start-up expenses to be the loan amount we

are asking for. We are asking for 398,100 dollars in a loan over the course of the next 10 years at a 5% interest rate. The remaining 25% of our total start-up expenses will be money from the four

owners personally. We are asking for a loan amount of $398,100 by June 5, 2015 for a start-up date of August 1, 2015.


Appendices

F I G UR E 1 : F I RE SPE CI FI C A DV ER TI SE ME NT


F I G UR E 2 : W AT E R S PECI FI C A D VE RT ISE ME NT


F I G UR E 1 : P RE -T ASK P L A NN IN G W O RKSHE E T 1


F I G UR E 2 : P RE -T ASK P L A NN IN G W O RKSHE E T 2


F I G UR E 3 : P RE -CO N STR UCT IO N CH ECKL I ST


F I G UR E 1 : F A L L P RO T E CT IO N P LA N: P A RT 1


F I G UR E 1 : P U RCHA SE ORDE R L A BO R TR ACKI N G F O RM


F I G UR E 2 : P U RCHA SE ORDE R T RA CKI NG S HE ET


F I G UR E 1 : D AI L Y L ABO R T RA CKI NG F O RM


F I G UR E 2 : OV ER VI EW O F E QUI PMEN T A N D P ROD UCT S U SA GE


F I G UR E 1 : S U B-CO N TRA CT O R TR ACKI N G S HE E T


F I G UR E 2 : BU DGE T A MEN DME NT N O TI FI CA T IO N


F I G UR E 3 : CE RT I FI CAT E O F CO MPL E TI O N


F I G UR E 4 : P U NCH L I ST


F I G UR E 1 : CO ST S T O CO S TU ME R


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servpro business plan

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servpro of south anchorage

victoria sitterley

protection plan

jessa villasenor

charissa oconnor

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anchorage market

loan money