Free Dry Cleaner Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a dry cleaner while showcasing the expected financials and operations over the next three years. The Dry Cleaner, Inc. (“the Company”) is a New York based corporation that will provide dry cleaning and tailoring of clothes to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary function of the dry cleaner is to provide dry cleaning clothing for garments that cannot be washed by traditional machines. The Company will operate a drop location where customers can place their clothes for dry cleaning. The business will partner with a third party company to actually provide the dry cleaning services. The business will also provide onsite tailoring, which will substantially contribute to the gross margins of the business. The third section of the business plan will further describe the services offered by the Dry Cleaner.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Dry Cleaner’s mission is to become the recognized leader in its targeted market by providing fast, affordable, and insured dry cleaning and tailoring services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the dry cleaning industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Dry Cleaner, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Dry Cleaner requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Dry Cleaner, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Dry Cleaner. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the products and services offered by the Dry Cleaner.
3.1 Dry Cleaner
As stated in the executive summary, the primary revenue stream for the business will come the direct dry cleaning of nice garments for men and women in the Company’s targeted market. The Company has already begun contracting a third party dry cleaning plant to process all orders for the business. Mr. Doe expects that this revenue center for the business will generate gross margins of 70%.
3.2 Tailoring Services
In addition to dry cleaning services, the business will also provide onsite tailoring services. This business segment will provide a high stream of gross margin income for the business, while ensuring that the business can always remain cash flow positive.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the dry cleaning industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, dry cleaners tend to operate with economic stability as white collar workers will continue to require that their garments be dry cleaned despite deleterious economic changes.
4.2 Industry Analysis
Within the United States, the dry cleaning industry generates more than $3.5 billion of revenue per year among 12,000 establishments. Each year, the industry employs more than 47,000 people while providing annual payrolls of $700 million dollars.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Dry Cleaner intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Dry Cleaner.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Establish relationships with dry cleaner plants within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Dry Cleaner to easily target white collar men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. In addition to the high visibility location, the Company will also use direct mail, flyers, and other forms of local advertisement to promote traffic to the Dry Cleaners. The business will also maintain an online marketing strategy which includes the development of a website while concurrently registering the Company’s location in online directories such as Google and Yahoo. As many people now use the internet to find local services, the business will thoroughly engage this strategy. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Dry Cleaner will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, white collar workers will continue to require dry cleaning services despite deleterious economic changes. As such, the business will be able to remain profitable and cash flow positive from the onset of operations.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis