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1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the development of a portable toilet rental business while showcasing the expected financials and operations over the next three years. Portable Toilet Rental, Inc. (“the Company”) is a New York based corporation that will provide the rental of portable toilets to customers in its targeted market. The business will work with construction firms, contractors, and event management companies as it primary customer base. The Company was founded by John Doe.
1.1 The Services
The Portable Toilet Rental Service is primarily in the business of renting portable toilets in conjunction with construction sites, outdoor venue sites, and party sites. The business will have a wide range of inventories from smaller-scale toilets to full scale elevated decks that have multiple facilities. The latter type is very popular among events, festivals, and large-scale gatherings.
Currently, Mr. Doe is sourcing a number of vendors from which the business can acquire large inventories of portable toilets. The business will use multiple forms of advertising in order to create an immensely recognized brand name for the business over the next three years.
The third section of the business plan will further describe the services offered by Portable Toilet Rental, Inc.
1.2 Financing
Mr. Doe is seeking to raise $125,000 via a loan. This business plan assumes that the business will receive a 10-year loan with a 9% fixed interest rate. The financing will be used for the following:
• Acquisition of a Company vehicle for delivery of inventory
• Financing for the first six months of operation
• Capital to purchase a company vehicle
• Portable toilet inventories
Mr. Doe will contribute $25,000 to the venture. Moving forward, the Company could easily acquire additional rounds of capital as needed to finance inventories and operational assets. This document assumes that the growth of the business will be conducted with retained earnings.
1.3 Mission Statement
Portable Toilet Rental, Inc.’s mission is to become the recognized local leader in its targeted market for rental of portable toilets and related equipment.
1.4 Management Team
John Doe is the Founder of Portable Toilet Rental Service, Inc. Given his experience and expertise in the field of sanitation and construction management, he will be able to quickly bring the operations of this business to profitability.
1.5 Sales Forecasts
1.6 Expansion Plan
Over the next three years, the Company will maintain ongoing relationships with construction companies, event management firms, and contractors throughout the target market. The business, after the third year of operation, may acquire existing businesses that operate in a similar capacity. These entities could be seamlessly integrated into the business’ ecosystem.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Portable Toilet Rental, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Portable Toilet Rental, Inc. requires $110,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
An investor is not sought at this time.
2.4 Management Equity
John Doe owns 100% of Portable Toilet Rental, 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. In this event, a business broker would be hired to manage the sale to a third party. The Company, based on its size, could receive a price to earnings multiple of up to three times the previous year’s earnings. The sale of the business is not expected to occur within the first three years.
3.0 Operations
Below is a description of the rental services offered by the Company.
3.1 Rental of Portable Toilets
The primary revenue center for the business will be the rental portable toilets and related equipment for construction sites, large scale events, and parties. The Company will typically charge $10 per day per portable toilet that is onsite. These fees will be specific for the Company’s construction and contracting clients. Event fees will be higher given the shorter amount of time that these facilities are needed. The fees will range from $80 to $150 per day depending on the types of portable toilets and quantity needed at each event.
3.2 Ancillary Services
The Company will generate secondary streams of revenues from other services related to renting equipment such as delivery of items, setup, onsite management and cleanup/pickup of equipment. Management expects 20% of the Company’s aggregate revenues will come from these services. These fees will be significantly higher for events and festivals given the heavier usage of the portable toilets. In order to be transparent with pricing, the Company will offer flat-fee packages. This will assist with ensuring that the Company becomes the vendor of choice for onsite sanitation needs.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the toilet equipment rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate in the United States is strong. Although interest rates have remained high, unemployment has remained near historical lows. It should be noted that any issues with the economy will not impact the Company’s ability to generate revenue. Construction and contracting services are always in need among people having home repairs completed (or repairs to commercial buildings). Additionally, the business’ event based operations will ensure that the business further maintains economic viability at all times.
4.2 Industry Analysis
There are 3,500 companies throughout the United States that provide portable toilet rentals to the general public. Each year, these businesses generate in excess of $3 billion of revenue. There have been significant advances in the industry especially as it relates to integrating IoT (internet-of-things) technology. These sensors allow portable toilet rental operators with immediate notifications when issues arise.
The ongoing growth of this industry will continue to be similar to that of the US economy as a whole.
4.3 Customer Profile
Management has developed two categories of customer: construction companies and event planners. Among construction company users, Management has outlined the following demographics:
• Is willing to spend up to $200 to $1,500 for rental of portable toilets.
• Generates in excess of $1,000,000 per year in revenues.
The second demographic targeted by the Company are corporate event planners and independent event planning businesses. These companies will directly contract with the Company to provide portable toilets and related equipment for large scale events. Among these businesses, Management has outlined the following demographics:
• Event has a budget of at least $7,500.
• Event will have an attendance of at least 50 people.
• Event is to be held outdoors.
4.4 Competition
As it relates to competition, the Company will face small to large scale competitors that provide similar services to the general public. The Portable Toilet Rental business will maintain a pricing advantage given that the business will maintain low operating and overhead costs. Additionally, the business will seamlessly manage all aspects of the drop off, maintenance, and pick up of portable toilets as standard within its packages.
5.0 Marketing Plan
Portable Toilet Rental, Inc. will use a number of marketing strategies that will ensure that the business is one of the preeminent rental companies in the market.
5.1 Marketing Objectives
• Establish relationships with construction companies and event planners within the targeted market.
• Use search engine optimization for the companies website.
• Develop numerous referral relationships with entities that are engagement with construction, contracting, and event management.
5.2 Marketing Strategies
Management intends on using a wide range of marketing and advertising strategies that will ensure substantial visibility for the Company from the start of operations. Foremost, the Company intends to partner with real estate developers, contractors, and construction firms. As portable toilets are needed at these sites at all times – the Company will principally focus on fostering these relationships so that the business generates highly predictable streams of revenue.
As it relates to event management firms, the Company will work with festival companies, musical event firms, and event planners. Given the higher per diem fees charged for these events, Management sees a substantial opportunity to partner with these firms through the life of the business.
The Company’s website will feature content-rich information regarding the scope of portable toilets that can be acquired through the business. Within two months of launching operations, the Company will hire a SEO firm in order to ensure substantial organic traffic to the website. Management will frequently upload new images and content in order to keep the platform’s standing among all major search engines.
In addition to the Company’s website, the business will maintain a presence among social media pages. The primary focus will be on LinkedIn. On this platform, the business will showcase the Company’s services to individuals that list their profession as a coordinator for contracting sites, events, or festivals.
In time, Management will have a number of professionally created videos that showcase the wide inventory of portable toilets offered. These videos will also showcase the fact that the business handles all aspect of portable toilet drop off, maintenance, pick up, and clean up. This content will be uploaded to YouTube (and other video platforms) and shown on the Company’s website and social media accounts.
The Company will also develop ongoing relationships with roll off container services. These entities often engage in real estate construction/contracting projects that take a significant amount of time. As such, portable toilet rentals go hand in hand with these types of operation. Management may also develop programs that will allow roll off container services to outsource the business so that they can make these types of rentals a new revenue center for their respective businesses.
5.3 Pricing
Here, you can indicate the daily charges that will be charged to clients for their portable toilet rental needs.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• Portable Toilet Rental, Inc. will have an annual revenue growth rate of 10% per year (CAGR).
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10-year term with a 9% interest rate.
• Management will contribute $25,000 towards the venture,.
7.2 Sensitivity Analysis
In the event of an economic recession, the Company may have issues with top line income as businesses scale down constructions and hosted events. However, despite decreases in revenues, Portable Toilet Rental, Inc. will be able to remain profitable due to the very high gross margins generated by the business.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
