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
franchisesales@servpronet.com

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%
SoftCosts
Day Labor (est.safetynet) $ 30,400 7.64%
Subcontractors(est.safetynet) $ 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 AR KET SIZE
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 AR KET DEMAND
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 nextsection was written by Jessa Villasenor (2)

P R O DUCT FEATURES
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 ENEF ITS
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 AR GETED CUS TOMERS
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 AJOR COMPETITOR 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 MOTION THROUGH ADVERTISING
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.

P R O MOTION THROUGH OTHER METHODS
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 MOTION THROUGH GR APHIC IMAGE SUPPOR 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 IC ING
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 IS TRIB UTION CHANNELS
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).

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 nextsection was written by Charissa O’Connor (3)

Operational Plan
M ETHODS OF PRODUCTION
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 UALITY CONTROL MEAS UREMENTS
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 OPOSED LOCATION
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.

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)

The nextsection was written by Kassandra Kay (4)

Startup Expenses
Expenses Start up only Monthly Yearly
Equipment X 64,000
Supplies 8,500
Vehicles 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 GUR E 1: FIRE SPECIFIC A DVER TISEMENT

F I GUR E 2: WATER S PECIFIC AD VERTISEMENT

F I GUR E 1: PRE-TASK PLANNING WORKSHEET 1

F I GUR E 2: PRE-TASK PLANNING WORKSHEET 2

F I GUR E 3: PRE-CONSTR UCTION CHECKLIST

F I GUR E 1: FALL PROTECTION PLAN: PART 1

F I GUR E 1: PURCHASE ORDER LABOR TR ACKING FORM

F I GUR E 2: PURCHASE ORDER TRACKING SHEET

F I GUR E 1: DAILY LABOR TRACKING FORM

F I GUR E 2: OVER VIEW OF EQUIPMENT AND P ROD UCTS USAGE

F I GUR E 1: SUB-CONTRACTOR TR ACKING SHEET

F I GUR E 2: BUDGET AMENDMENT NOTIFICATION

F I GUR E 3: CERTIFICATE OF COMPLETION

F I GUR E 4: PUNCH LIST

F I GUR E 1: COSTS TO COS TUMER

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